Any business consists of a number of functional areas. The functional areas are the specialized departments within a business. These departments carry out specific functions that assists the business overall. Businesses are classified as small or large. In the case of small businesses, the functional areas are not definite because the owner usually produces and markets his own products, does his own accounting and personnel work. Large businesses need more specialized departments. Most large businesses have four functional areas: Production, Finance, Marketing, Personnel, and Research and Development [3].
As we defined the functional areas, let’s take a brief look at each one and what type of management it has:
1. Production. Production is defined as the manufacture or assembly of the final product [4]. The production manager is the one who is in charged about making decisions to make sure that the final product follows the company’s policy regarding quality, quantity, time lines, and the assembly or manufacturing processes. He coordinates the work culture and plans and controls the processes of production. He also has to make sure that the quality of the final product complies with the company’s standards.
2. Finance. It’s the department where all the financial activities are processed. Sales, income, expanses,
References: 1. Role Profiles of Managers in Deferent Functional Areas. Paolillo, Joseph. University of Mississippi. March 1987; ProQuest Central. (Pg 109) 2. MANAGEMENT (11th edn.) by Stephen P Robbins & Mary Coulter. (Pg9). 3. Functional Areas of a Business. Raymond’s CXC Blog. November 19, 2009 at 2:28 am (P.O.B Lessons). 4. BTEC First Business - 2nd edition by Carysforth, et al. (2006)