Functional areas of business.

Prepared by Eqbal Habibi2nd sem (BBM)

Business management is a complex subject. Many problematic matters have to be encountered in the process of business management. Many functional areas have to be successfully managed before the aim of the business is completed. In other words, business cannot be successfully carried on only with the management of a single subject or working in a single area.

Introduction

Grouping of individuals on the basis of the function each performs in the organization, such as accounting, marketing, manufacturing.

or Grouping of activities or processes on the basis of their need in accomplishing one or more tasks.

Definition

Functional area of business refers to the academic discipline of accounting, finance, marketing, personnel study or human resource management and production.

These disciplines study the business environment in which the firm operates. So, they provide the background for managerial decision making.

Relationship of functional areas of business with managerial Economic.

Finance Human Resource Administration Production/ service Marketing Sale Customer Service Research and Development

The main functional areas of a business organization are discussed below.

1.Finance:Finance means having to do with money: the finance

department deals with the organization’s spending and receipts.

For example, obtaining financial information from different departments.

It is a department that deals with employees. For example, taking on a new employees, training employees, keeping record of old and present employees etc.

2.Human resources

It means general tasks involved in running an office. The main role of administration department is to provide centralised office services for all the other departments in the business. For example, collecting and distributing mail or with responding enquiries.

3.Administration

In business which create products, the main function is known as the production function. Business that provide service are known as the service function. For example in a shoe factory, production will involve turning leather (raw material) into shoes(finished products). For a bank, the main function will be providing banking services.

4.Production/service

The marketing department deals with publicity and finding out about customer's needs. They also promote products, for example: sending out questionnaires to customers.

5.Marketing

The sales department deals with selling of products or services. Sale includes direct interaction with customer service.

6.sales

The customer service deals with customer’s information, service and advice. It also deals with queries, complaints, providing after-sale services in the form of technical help or organization replacement of items. Large businesses may have a customer helpline or/ and a website.

7.Customer service

In today’s competitive world it is very essential to be ahead of competitors. Business organizations strive to introduce new products, new concepts and innovations. Research and development department works to this goal.

8.Research and development

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