Tony D. Roberson
Dr. John Grabarczyk
May 26, 2015
Functional Area of Business
There are dynamics and individuals that hold certain positions and power of authority to ensure that the organization meet strategic and operational goals. The business functional areas are broken down by department, divisions, or teams where each department or division performs specific tasks and activities within a specific skill set or subject expertise. For example: operations management, law, economics, finance, and marketing are departments within an organization that focus solely on a specific area to meet company goals and criterion. In most organizations these functional areas are headed by a manager that is in charge of carrying out the company’s mission. The functional manager’s responsibility is to plan, organize, direct, control, and organize department/division or teams to achieve departmental objectives.
Role of a Manager There is management within each department, team or division within an organization whose responsibility is to coach, teach, and ensure that employees are upholding company policy, goals, and mission. Each functional area has at least one manager if not multiple depending on the size of the department the manager is assigned. Not only is a manager responsible for the effectiveness of his or her employees, but is also responsible for decision making and determining the needs of the organization and time management on all projects and assignments. Whether it be finance, marketing and research, or human resources; the success of the department is contingent upon the success of its managers. Since managers are required to have valuable work experience and knowledge of the organization it has been recent that there is an influx of responsibility evolving managers (ASHRAE Journal, 54(1), 8).
Finance is one of the most important functional areas of business. Financial management is essential to the growth and development of an organization’s staff and equipment that are required to complete the task that are required to make a business profitable. Organizations without proper financial care suffer the probability of higher turnover ratio and a decrease in financial gain. According to Hildreth, W. B., Yeager, S. J., Miller, G. J., & Rabin, J. (2012) “Deference derives from their traditional function as budget conserver (Wildavsky, 1986) as well as the jobs of financial strategist, chief accountant, internal auditor, and financial record keeper, which give them expertise that other decision makers find indispensable” (Introduction). A financial manager must possess all traits to effectively manage and carryout the company’s mission in regard to finances. The financial department’s primary responsibility is to save money and find the company ways to cut cost and still maintain proficiency without a drop in production.
Management and leadership are similar in context due to the nature of what management means and what leadership is. “Management in businesses and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively” (Merriam-Webster, 2015). Leadership is the ability to or has power over a group of people (Merriam-Webster, 2015). Another important asset to an effective manager is quality assurance in the financial side of a business. The manager must ensure the highest level of quality assurance from the entry level employee