2. The Functional Areas of
Organizational Management
The Human Resource
Management
01
Marketing Management
02
Operational Management
03
Financial Management
04
Information
Communication
Technology Management
05
3. In a large organization, it is usually easier
to identify separate functional areas
because people work together in
departments. Each department carries out
the tasks that relate to its particular area.
The main purpose of functional areas is to
ensure that all important business activities
are carried out efficiently.
Functional Areas
O f M a n a g e m e n t
6. The Human Resource
Management
The human resources of an organization are its
employees. Wise organizations look after their staff
on the basis that if they are well trained and
committed to the aims, the organization is more
likely to be successful.
HR aims to ensure that the organization retains good,
experienced people. Analyzing staff-turnover figures
will show the rate at which people leave the
organization. If these are high, it is important to
identify and remedy any problem areas.
7.
8.
9. 1
2
3
The role of HRM practices is to manage the people
within a workplace to achieve the organization's mission
and reinforce the culture.
HR managers can monitor the state of the job
market to help the organization stay competitive.
Human resource management acts as a consultant to sort
out conflicts within the organization immediately and
conduct other organizational activities smoothly.
Importance of
Human Resource
Management
11. HR Management Functions
2019
2018
2017
2016
■Advertising job vacancies
■Notifying staff of promotion opportunities
■Receiving and recording all job applications, arranging interviews and notifying
candidates of the result
■Sending a contract of employment and other essential information to new staff
■Arranging staff training and encouraging continuous professional development
■Checking health and safety and keeping accident records
■Recording sick leave and reasons for absence
■Carrying out company welfare policies, e.g. long-service awards and company loans
■Advising managers on the legal rights and responsibilities of the company and its
employees
■Keeping records of grievances and disciplinary actions and their outcome
■Monitoring the terms and conditions of employment, including wage rates
■Liaising with staff associations or trade unions which represent the workforce
14. The Marketing
Management
Marketing is all about identifying and meeting
customer needs. Many businesses consider
this so important that they are said to be
marketing- led
Marketing was famously described as ‘looking
at the business through the customer’s eyes
In this case, everyone in the organization is
trained to put the customer first – from the
production worker, who has to produce high
quality goods, to the accounts clerk, who must
respond to a customer enquiry promptly and
accurately.
17. 1
2
3
It helps to maintain the reputation of the
organization.
It helps to boost the economy of the company.
The marketing management helps to promote new
ideas which are depending upon the benefits and offers
for the public to be grabbed quickly.
Importance of
Marketing
Management
18. Marketing Management Functions
2019
2018
2017
2016
■ Carrying out market research to obtain feedback on potential and
existing products and/or services
■ Analyzing market research responses and advising senior managers of
the results and implications
■ Promoting products and services through a variety of advertising and
promotional methods, e.g. press, TV, online, direct mail, sponsorship
and trade shows or exhibitions
■ Obtaining and updating a profile of existing customers to target
advertising and promotions appropriately
■ Producing and distributing publicity materials, such as catalogues or
brochures
■ Designing, updating and promoting the company website
19. Find out what promotional activities are undertaken
by your school/college or your workplace if you are
a working student. Explain how your organization
manages to promote their services, products or
programs to the general public.
20.
21. The Operations
Management
Operations management is the management
of processes that transform inputs into goods
and services that add value for the clients
and/or customer.
It is concerned with the design, management,
and improvement of the systems that create
the organization’s goods or services.
It involves the responsibility of ensuring that
organization operations are efficient in terms of
using as few resources as needed and
effective in meeting clients requirements.
22. 1
2
3
Helps in achievement of objectives: Operations
management has an effective role in the achievement
of pre-determined objectives of an organization.
Improves Employee productivity: Operation management
improves the productivity of employees. It checks and measures
the performance of all people working in the organization.
Optimum utilization of resources: Operation management focuses on
optimum utilization of all resources of the organization. It frames proper
strategies and accordingly continues all operations of the organization.
Importance of
Operations
Management
24. Operations Management
Strategies
Today’s operations managers are deeply involved in strategy, along with
their daily production role. Here are several key strategy and tactics points
Data is often siloed, which makes it difficult to compare.
But newer systems and setups are making this easier and
helping analysts and managers examine data in new,
helpful ways.
Data Challenges:
Analytics are essential for strong planning, adjustments, and
decision making. Two common types are efficiency metrics and
effectiveness metrics. (What are the primary concerns within the
community?)
Use of Data:
Researching on current social situations, forecasting
probable issues, and developing a sound process can
derive at lasting solutions.
Process Design:
25. Operations Management
Strategies
Today’s operations managers are deeply involved in strategy, along with
their daily production role. Here are several key strategy and tactics points
The best forecasting often combines a look at historical
data with analysis of changing conditions.
Forecast and Goal Setting
With good communication and collaboration, operations
management can work effectively with finance, marketing,
human resources, and other departments.
Collaboration Among Departments:
Ecological soundness has become a strategic and legal
necessity at organizations nowadays, especially in
manufacturing.
Being Green:
With all the advancements in machinery and technology,
people remain critical to the equation, though often in
different types of jobs.
Managing People:
26.
27. Operations Management Functions
2019
2018
2017
2016
■Planning and implementing manufacturing plants
■Managing projects
■Planning information systems
■Helping to design and develop products and services
■Managing inventory through the supply chain
■Managing delivery to customers in a timely manner
■Optimizing quality control
■Conducting procurement/purchasing
■Managing logistics
■Managing transportation and distribution
■Managing and maintaining facilities
28.
29. The Financial
Management
ALL organizations need a regular income
stream to pay the bills and other operational
expenses
Financial management pertains to the strategic
planning, directing, organizing and controlling of
financial undertakings in an organization. It
encompasses the application of management
principles to the financial assets of an
organization, while also playing an important part
in fiscal management.
31. In the public sector, there is what we call Public
Financial Management (PFM) which refers to the set of
laws, rules, systems and processes used by national
and sub-national governments, to mobilize revenue,
allocate public funds, undertake public spending,
account for funds and audit results.
Public Financial
Management (PFM)
It encompasses a broader set of
functions than financial management
and is commonly conceived as a
cycle of six phases, beginning with
policy design and ending with
external audit and evaluation (PFM
Cycle).
32. 1
2
3
It helps organizations in financial planning and
acquisition of funds and it aids organizations to
effectively utilize and allocate the funds received or
acquired
Supports organizations in making critical financial decisions
It helps in improving the profitability of organizations, Increases
their overall value and provides economic stability.
Importance of
Financial
Management
33. Financial Management
01 02 03
SCOPE OF
The financial manager
projects how much
money the organization
will need in order to
maintain positive cash
flow, allocate funds to
grow or add new
products or services and
cope with unexpected
events, and shares that
information with
business colleagues.
Planning.
Organizations generally
have a master budget
and may have separate
sub documents covering,
for example, cash flow
and operations; budgets
may be static or flexible.
Budgeting.
The financial manager
sets procedures
regarding how the
finance team will
process and distribute
financial data, like
invoices, payments and
reports, with security
and accuracy.
Procedures.
34. Operations Management Functions
2019
2018
2017
2016
■Checking payments are received and chasing up overdue payments
■Recording money received
■Ensuring that funds are well-allocated for the operational expenses of the
organization
■Preparing the payroll and paying staff salaries
■Monitoring departmental budgets to check that no department is
overspending
■Issuing regular budget reports to all departmental managers
■Producing cash flow forecasts and regular financial reports for senior
managers
■Advising senior managers on sources of finance for capital expenditure.
■Producing the statutory accounts each year
35.
36. Information &
Communication Technology
(ICT) Management
Today, even the smallest organizations need
someone who understands ICT. This is vital,
because the number of crucial administrative
tasks are now carried out on computer and
the importance of the data stored in the
system mean that any system failure can be
catastrophic.
This functional area in management includes
a deep analysis of the impact of the
information and communication technologies
on different aspects of development and
growth.
38. Components of ICT
The term information and
Communication Technology
(ICT) is generally accepted to
mean all technologies that is
combined, allow people and
organizations to interact in the
digital world.
39. 1
2
3
Data Management Systems. Today, most organizations
store digital versions of documents on servers and
storage devices. These documents become instantly
available to every member, regardless of their
geographical location.
Communication Between Employees, Suppliers and
Clients/Customers. Email was one of the early drivers of the
Internet, providing a simple and inexpensive means to communicate.
Management Information Systems. Storing data is only a benefit if that data
can be used effectively. Progressive organizations use that data as part of their
strategic planning process as well as the tactical execution of that strategy.
Importance of
ICT Management
40. ICT Management Functions
2019
2018
2017
2016
■Recommending new/updated systems and software to keep abreast of
technological developments and the needs of the organization
■Buying and installing new hardware and software and providing information or
training as appropriate
■Assisting users who have computer problems
■Repairing the computer system when required
■Connecting new or additional equipment to the system
■Installing a security system which limits access to authorized users and protects
against hackers and viruses
■Technically maintaining the company website
■Monitoring staff computer use for compliance with the company IT policy
■Operating a back-up system for critical data so this can be recovered quickly in an
emergency
