It is about different functional areas of management

1. The Different Functional Areas
of Management
MODULE 6

2. OBJECTIVES
1. Explain the nature and role in the firm of the following functional
areas of management: (ABM_AOM11-IIi-39)
a. Human Resource Management;
b. Marketing Management;
c. Operations Management;
d. Financial Management;
e. Material and Procurement Management;
f. Office Management; and
g. Information & Communication Technology Management

3. JumbledWords-Inyouranswersheet,rearrangethefollowingjumbledletterstoformanew
word. 5minutestoanswer.
 1. G N T I E K A R M
 2. N A M U H E R O S R U E C
 3. S N O T I R A E P O
 4. L A I C N A N F I N
 5. S L A I R E M A T
 6. C H S A G N R U P I
 7. E C I O F F
 8. R O F M A N O I F T N
 9. M U M O C N I N O I T A
 10. T N E M E G A N M A

4. DIFINITIONOFTERMS
Human Resource Management – the process of
attracting, training, developing, and maintaining an
excellent work force.
Job- a specific piece of work done for certain fee.
Job Analysis – the process of obtaining information
about jobs needed to achieve the organization’s
goals/objectives

5. LESSON1-TheSpecializedFunctionalAreasofManagement
The Management expertise in the general
functions of management such as; planning,
organizing, staffing, leading and controlling is a
great factor to determine success of the business.
Aside from this, the Management should also be
skillful in the specialized functions of management.
These areas includes: human resource
management, marketing management, Operations
management, financial management, material and
procurement management, office management, and
information & communication technology
management.

6. LESSON1–TheSpecializedFunctionalAreasofManagement
Specialized skills in the above-mentioned areas are
crucial to ensure success and development in both small
and big businesses. The higher the skills of the
Management in the general and specialized areas, the
better chance for the business to thrive and ensure
success. Many SME’s young entreprenuers and
students alike aspire to be like the already established
business tycoons of the country in the likes of Henry Sy.
John Gokongwei, and Jaime Zobel de Ayala. Let us
study and define each functional areas and discover
why they are important in the organization’s success.

7. CareerAnchors
Edgar Henry Schein a former professor at the MIT
Sloan School of Management developed the idea of a
career Anchor. A career anchor is one's self-concept
and consists of one's perceptions of one's talents and
abilities, one's basic values, and one's perceptions of
motives and needs as they pertain to career
(https://en.wikipedia.org/wiki/Edgar_Schein)
His original research in the mid -1970s yielded five
possible career anchor composition as follows:

8. 1. Autonomy or independence - People chose to be independent and work their way to
success. They set their own rules and work according to it at their own pace and
totally independent. These are the people who tends to be consultants or
independent businesspersons. They have a hard time following rules like wearing
company uniform and company policies.
2. 2. Security and Stability These are the people who love secure jobs and success.
Good salaries and benefits like housing and clothing allowances, insurance and
bonuses. No matter how skillfull they are they prioritize job offers that could secure
their contineous financial needs and a brighter future for them and their loved
ones.
3. 3. Technical-functional competence These highly skill full individuals love to be
challenged and they want to get the higher position within the field of their
expertise. They may reject Managerial positions because they always want to
practice their expertise in their respective fields like Engineering, Accounting,
Quality control and statistics.

9. 4. General managerial competence These people wants to lead and make
decisions. They only feel satisfied when they are promoted to general
manager positions. They always exercise their problemsolving skills and
want other people feel their influence in everything they say and do. They
considered themselves successful when they see that the business
organization they lead is also successful.
5. Entrepreneurial creativity These people feel satisfaction when they
create new innovative business or products. Starting up something new
creatively is most important to them. They considered money as secondary
as compared to the reward they get in starting up something new in the
business world.
Additional studies made in the 1980s identified three additional career
anchors composition:

10. 6. Service or dedication to a cause These people put their attention in serving
other people. They love to do things for other people benefits. They adhere and
completely believe what the scriptures has said about service. People in this
professions are Preachers or Pastors, Social workers, Doctors, Lawyers, nurses
and teachers. They may not be necessarily religious but they believe in uplifting
other people lives is more important than their self improvement.
7. Pure challenge, and People who delight in challenges. They are competitive.
They are happy and satisfied when they beat their toughest opponent in tough
situations. For them any job that is challenging is acceptable.
8. Life style. People who value work and family at the same time. They Prefer
flexible work shifts that would fit their daily time table. Personal and family life is
as important as their career and they want to be successful in both of them :

11. FunctionalAreasofManagementintheOrganization
 1. Human Resource Management –
 hire skilled employees needed in the different departments of
the organization.
 jobs include training of personnel in order to acquire necessary
skills needed to qualify and perform efficiently in the
organization.
 Conducting job analysis
 Planning labor need and recruiting

12. MarketingManagement
 Marketing Management- the process of managerial planning and
carrying out of the conception, pricing, promotion, and distribution of
ideas, goods and services I order to bring about exchanges o satisfy
individual and organizational goals.
 Marketing department is in charge of the sales, advertisements, and
promotions of new products being developed by the company. Aside
from this, production is also one of the concern of marketing people,
since the bulk of sales that the company make will primarily depend
on the output of production department. Their primary duty is to find
buyers/customers that will patronize the company products. They see
to it that existing customers are being taken care of. It means, any
complain the customers may have will immediately address and be
given immediate solution.

13. MarketingManagement
 Advertising is an effective tool to attract buyers and or
customers. Advertisements nowadays becomes easy because of
social media. Almost all people in the world have access in social
media especially here in the Philippines. The interaction
between the buyer and seller becomes fast. This way any
complain that the customer has can be address immediately.
Online selling is also one of the blessings of modern technology.
Individuals and business increased their customers due to the
development of online selling. Big companies have their own
marketing and sales department to take good care the job of
finding buyers and selling their products. They oversee the
various activities of the Marketing department.

14. MarketingManagement
 Marketing Managers on the other hand are responsible with
developing of ways to improve the brand by evaluating the
demand for the product or service. They keep an eye with the
behavior of their competitors and find various ways to maintain
the demand for the brand.
 The different ideas and strategies applied in marketing includes
advertisements, commercials, and campaigns. Different
executives collaborate to come up with the best way to promote
the product the best way possible. Sales managers set objectives
to achieve when it comes to sales. The sales representative does
the actual selling of the products.

15. OperationsManagement
 Operation Management- the study of how goods and services
are produced in organizations.
 Value Chain – the actual sequence of activities that results in
the production of goods and services that have value for
customers.
 Is responsible on crafting a blueprint and regulating production
output. This department has workers that collaborate to each
other in order to carry out the task they are assigned to do. The
Production Manager is responsible with the materials and
services needed in the production process.

16. OperationsManagement
 Production scheduling is very important task of the Production
Manager to make sure that production deadline can be met. He
works hand in hand with the purchasing department to ensure
that production materials and accessories are bought and
available for production.
 Lead times should be followed strictly to give enough time for
the supplier to deliver the goods needed in the production. This
way, both purchasing and the production department will have
enough time to perform their task and expect good results.

17. OperationsManagement
 Maintenance and repair of equipment is also an important task
that the Production in charge is responsible to do. Production
inventory is closely monitored and updated from time to time.
The production system is strictly followed in order to achieve
effective and profitable operations.

18. FinancialManagement
 The finance department is responsible in managing the money
matters of the company. This is very important to ensure the
smooth flow of operation.
 The Finance manager is responsible to raise fund and use it in
an efficient way for the business operation. He is also tasked to
do life long and important investment activities of the resources
of the company and allocate the same in achieving the
company’s goal the best way possible.

19. FinancialManagement
 In large companies the head of the Finance department is the
Chief Financial Officer (CFO). The CFO is responsible to report
directly to the Chief Executive Officer (CEO) or the President of
the company.
 The Finance department personnel includes a Treasurer who is
in charge in the main financial areas of Investment
(particularly short-lived investments and checking it every day)
Financing and Asset Management. He is also responsible to
watch over budget preparation and evaluate the investment
chances and the different hazard associated with it.

20. FinancialManagement
 The Finance Manager handles the different tasks of the finance
department and one of this task is the following scope of
responsibility:
 1. Investment decision
How much of the company resources should put in safekeeping
and how much should be used to improve productivity.
A careful study is required to determine whether purchasing a
new lot for expansion is better than employing a new technology
to improve production.
What the company needs among these two should be given the
highest priority of investment.

21. FinancialManagement
 . 2. Financing decision -A firm decision should be made by the
Finance manager what type of Financing Should the company
take to finance its operations. Should the Finance manager
opted to ask for a loan, he or she should decide how much is the
amount and the interest rate should be determined. The terms
of payment should also be established.
 3. Asset Management decision - After bringing in Assets and
finally Opted a financing loan suited for the company’s needs,
the Finance manager takes the responsibility in managing the
funds obtained from investments and loans and see to it that it
would help achieve the company’s goals and will bring profit
with the organization.

22. ClassificationofFinanceManager
 1. Credit Managers- responsible in the preparation of loan
guidelines and tracking payments of accounts.
 2. Cash Managers – Track and create control scheme on the
incoming and outgoing of cash.
 3. Finance Managers – are workers of banks, credit companies
and other financial institutions to monitor lending, pledges,
investment and other undertakings related to financial.

23. FinancialManagement
 5. Materials and Procurement Management Every company has their
own procurement department in charge in purchasing materials and
other supplies needed in the production and other department of the
organization
 6. Office Management “Office management, as a function, is that
branch of the art and science of management which is concerned with
efficient performance of office work whenever and wherever that work
is to be done.” — William If. Leffingwell and Edwin M. Rot
 Office management plays an important role in achieving the
organization’s goal of success. Its main purpose is to handle the
clerical part of the different functional departments of the business
organization.

24. ImportanceofOfficeManagement
 1. Helps in achievement of targets Management help people
achieve their goals by leading and guiding them into the things
that are helpful like reporting to work on time and other
quantifiable outputs
 2. Optimum use of Resource Maximizing profits is one of the
most important goals an organization can have and they can
only do this if they do things consistently even in the frugal way
of using their resources like raw materials, production and
office supplies. A monitoring log book could be used to monitor
the issuance of office supplies. This is apart from the stock cards
maintain for each office and production accounts. Stock cards
are records of inventories that includes the incoming and
outgoing of raw materials, office supplies and other stuff.

25. ImportanceofOfficeManagement
 3. Minimization of Cost The cost in running the office should be
low enough without sacrificing the quality of work of the staff.
This can be achieve by way of preparing ahead of time reporting
to work on timely manner and the way they used the machines,
electricity and office supplies. Air-conditioned and electric fans
should be turned off when not in use and same is true with
other machines like photocopier, computers including lightings
within the office.
 4. Smooth flow of work When a system is placed in the office
you can assure that there is continuous flow of work. This is
very helpful and beneficial to all the organization because no
interruptions mean the system is working well for everybody

26. ImportanceofOfficeManagement
 5. Provides leadership Office managers set good example by
showing subordinates which way they should go. They lead
their followers in the path of success and accomplishments.
 6. Managing Change As what they say, the only constant thing
in this world is change. People in the office may resist change.
But management will explain and show the reason for the
change. This is to hasten work and to keep up with the fast
changing world. The management becomes the implementer of
change.

27. ImportanceofOfficeManagement
 7. Social benefits The organization is not the only one who is
being blessed but also the different sectors of the community. It
furnishes the network of the various suppliers and financial
institutions like banks and the different government division by
providing assistance to the people in various little ways.
 The triumph of every organization depends on the competence
of its office. Paper works may come in bulk because of the
various requirements needed but coming up with ways in
handling the work will ensure success of the business.

28. ImportanceofOfficeManagement
 7. Information and Technology Management Pertains to the
administration of information using computer and modern
technology to expedite the flow of communication inside and
outside the organization. This requires a system to be
established. In this way, the management can easily access
customer’s record and update information such as payment and
purchases. There are different information system in a business
organization. Please refer to the following:
 1. Sales and Marketing information system Involve in studying
prices of the product, Sales Projections, and handling of orders

29. ImportanceofOfficeManagement
 2. Finance and accounting information system Check the
company’s properties (assets) cash flows, Essential in
budgeting, accounts receivable, and Financial planning
 3. Human resource system Monitors the records of the
employees, performance, skills and training and it is being used
in analyzing of remuneration (salaries), cultivation and
advancement.al

30. Activity:BelowisthelistofthedifferentjobopportunitiesforABMandcomputercourses.AsanABMstudent,selectallthejobsyouareinterestedinandrankthemaccordingtoyourpriority.
Employment opportunities RANKS
1. CERTIFIEAD PUBLIC ACCOUNTANT
2. BOOKKEEPER
3. SLAWS MANAGERS
4. PERSONNEL MANAGER
5. PURCHASING MANAGERS
6. ACCOUNT EXECUTIVE
7. PUBLIC TEACHER
8. DATA ENCODER
9. TECHNICIAN
10.PERSONNEL CLERKS