Functional Areas of Business
Regardless of the different strategies and missions companies may have, all types of organization share a common denominator. This common denominator is the functional areas of business that companies have no matter what types of industry they are in. The functional areas of business may vary from company and industry but its core elements exist in any operating entity. Some of the common functional areas of business are marketing, finance, and accounting. Although a company’s success greatly depends on the collaboration of different areas of expertise, strategic planning and human resources management are two important functional areas an organization must have to compete and survive in today’s dynamic economy.
Strategic planning is the functional area of business that focuses on creating plans to make sure the organization’s goals are accomplished. Managers use strategic planning to bring ...view middle of the document...
Peter Robinson, chief executive of Team Management Services (TMS) emphasizes “the essence of strategic planning is for successful organizations to ensure that they are internally aligned with key stakeholder groups in the pursuit of clear goals and values”.
The uncertainty of the current economy has made strategic planning more vital than ever and executive leaderships need to monitor the environment closely to identify new opportunities. Furthermore, leaders today need to be adaptable to change to be effective. The more leadership styles a leader has, the more effective he or she is at adapting to change.
Human Resources Management
Human resources management is the area of business that addresses personnel concepts, such as hiring, compensating, and taking proper action when needed (University of Phoenix, n.d.). With the increasing demands of the global workforce, business leaders are focusing more on the importance of human resources management.
The most important asset in an organization is its human capital. The employees ranging from those who focus on managing day-to-day activities, to the salesperson who creates the first initial contact with a customer, and to the upper management, such as the CEO or CFO are important resources within company. Acquiring and retaining top industry talents is an important objective that every organization should pursue. However, many companies face challenging human resources issues in a new arena because of globalization. Not only they have to compete with competitors in the same geographic area, but they also have to compete with those in foreign countries. With such competition, human resources managers are require to connect with one another across the globe and take one step ahead in shifting local and global demands.
Globalization has brought new factors in game plan for expansion and new market opportunities. In addition, companies must enter into new markets to compete and survive. As a result, operating in a foreign country requires the management of a new group of employees. Emerging markets impose global, economic, and cultural changes that require human resources management team to analyze and study the values of its new workforce.