In this article, I will provide you an overview of the functional areas of management.

The structure of an organization is built on the basis of its management. Here, the functions of management are divided into separate groups, which is called as functional areas of management. So, the major areas are structured in a separate series such as:-

1. Production Management
2. Financial Management
3. Personnel/Human Resource Management
4. Marketing Management

1.Production Management-

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This is the first functional areas of management and it means that,

Production is a word which is related to the manufacturing of goods and production management is also known as manufacturing management. In today’s world, goods are not only physical goods but also services. The product is the combination of inputs and outputs by which the company produces the goods and services.

Therefore, production management is also known as operational management.

Production is a combination of two words:-

(i) Inputs– It includes various materials and types of equipment for transforming the raw materials into several outputs.

(ii) Outputs– Outputs includes goods and services which are produced through the conversion process (i.e., through inputs).

The production of the goods and services are affected by various factors such as government rules and regulations, competitors, international trade facilities, and so on.

Scope of Production / Operations Management-

Production management includes various points such as:-

(i) It helps to design the production policies like product design, process layout, and process design.

(ii) It helps to maintain the inventory planning.

(iii) Material handling.

(iv) It helps to formulate the capacity planning.

(v) It helps to prepare the layout structure.

2. Financial Management-

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This is the second functional areas of management and it means that,

Financial management is a process by which the company can arrange the financial policies and decisions of an organization.

All production, marketing, or personnel activities required a proper flow of funds. In this, the management establishes the separate department of finance so that they take care of the financial requirements of the enterprise. It helps to arrange and utilizes funds in a proper and systematic manner.

When the size of the business increases, then, in the same way, it is necessary to have finance in a similar way and as well as build relationships such as the relation with the internal and external environment, government rules & regulations, technological advancement, and so on.

In today’s world, financial management is focused on two aspects:-

• Profit Maximization
• Wealth Maximization

Scope of Financial Management-

It includes two types of approaches:-

(i) Traditional Approach-

This approach has going on for many years. It focused permanently on the acquisition of funds, through long term sources or links like financial institutions and capital markets. It includes various points such as:-

• It helps to procure your funds.
• It manages the long term sources and ignores the short term financial requirements.

(ii) Modern Approach-

In the modern approach, the main motive of an organization is to an arrangement of funds from various sources and also utilize in a proper manner. This approach includes various questions such as-

• How many sources of finance?
• How profits will be distributed?
• What size and volume of a firm should be?

3. Personnel / Human Resource Management-

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This is the third functional areas of management and it means that,

Human resource management is a process of management by which the company helps to provide the facilities to the employees, employers, individuals, and executives.

Human resource management is also called personnel management. Therefore, in small or medium organizations all the functions of planning, organizing, staffing, directing, controlling, and coordinating were perform by the manager or personnel but if the size of the organization is large, then a manager would have trouble handling all the functional areas.

Objectives of Human Resource Management-

Human resource management includes various points such as:-

(i) To utilize human resources,

(ii) To motivate employees and individuals,

(iii) To frame plans, policies, and procedures,

(iv) To achieve organizational objectives,

(v) To coordinate the individuals,

(vi) To provide training.

4. Marketing Management-

This is the third functional areas of management and it means that,

Marketing management is an important functional area of organizational management responsible for the flow of goods and services from the manufacturer to the consumers. It is answerable for planning, organizing, directing, controlling, and coordinating the marketing activities.

Traditionally, the market is a place where the buyers and the sellers are meet together and exchange their goods and services. Today, marketing is a procedure by which the sellers and the buyers exchange their values.

It is focused on the aggregation of managerial functions of planning, coordination, and control in relation to the functions of marketing research, product planning, promotion, pricing, selling, and distribution with a view to satisfying the needs and wants of the consumers and society.

Functions of Marketing Management-

It includes various points such as:-

(i) Capture the marketing opportunities,

(ii) Planning marketing opportunities,

(iii) Providing better marketing organization,

(iv) Provide motivation,

(v) Evaluating marketing efforts.

So, these are functional areas of management in an organization.

Related Articles:

1. Principles of Management by Henri Fayol

2. Management – Concepts, Features, Characteristics, Levels, and Objectives

3. Importance of Management in Modern Business or an Organization

4. Nature of Management Notes