Functional Areas of Business
The role of a manager is today’s modern business environment is becoming increasingly more complicated. Not only does a manager have to worry about directing the day-to-day responsibilities of his or her employees, but he or she also has to be concerned with all the different functional areas of the business. These functional areas include:
* Human Resources Management
* Research & Statistics
* Operations Management
* Strategic Planning
Each functional area of a business is typically established as its own ...view middle of the document...
Law deals with all the legal aspect of a business, ensuring a company complies with all local, state, and federal regulations. A manager that specializes in this functional area will typically be the leader of the company's legal department. They are often relied upon for legal advice with respect to policy changes and human resource issues, and represent the company and its interests during legal disputes.
Human Resources Management
Human Resource Management (HRM) involves the all aspects of personnel development. This includes recruiting, compensation, labor policy, as well as handling all disciplinary actions that may be requires. HRM and law are very interrelated because personnel issues can be extremely sensitive in nature and legal advice is often sought before final decisions are made. Managers who specialize in HRM are typically the manager of the human resources department. They champion decision regarding employee compensation, internal policies for employee performance and are relied upon as subject matter experts with respect to labor law.
Accounting and finance are also very closely related. Accounting deals with the financial aspect of the business (income statements and balance sheets), whereas finance is more of the operation budget that managers use internally to fund projects, new business ventures, etc. Mangers must navigate accounting and finance vey delicately as these are all crucial aspects of a business and fiscal responsibility and profit margins are critical success factors for shareholders.
Economics in business is the evaluation of production, distribution and consumption of goods or services by a company’s consumer base. A manager must be familiar with economics factors to understand supply and demand as well as outside factors (economics factors) in the market that could impact the business.
Research & Statistics
Research & statistics is the process used to collect and interpret a data about a business. It's important for a manager to use research and statistics to understand what consumer are purchasing, to help a manager decide what products or...