This module will explain the different functional areas of management and their importance in business. I hope it will help you

1. DIFFERENT
FUNCTIONAL
AREAS OF
MANAGEMENT

2. OBJECTIVES:
K: Discuss the nature of the different functional areas
of management;
S: Differentiate the role in the firm of the different
functional areas of management;
A: Appreciate the importance of the different functional
areas of management in the firm.

3. A.HUMAN RESOURCES MANAGEMENT
Human resources, also known human
capital, drive the performance of
organizations along with other resources;
hence, understanding the HRM functions of
management is very important. These
include:

4. • Conducting job analysis.
• Planning labor need and recruiting.
• Selecting candidates for the job.
• Orienting and training new employees.
• Managing compensation pay.
• Providing incentives and benefits
• Evaluating employees’ performance.
• Communication
• Developing employees.
• Building employee commitment
• Providing good working conditions.
• Handling grievances and industrial relations.

5. IMPORTANCE OF HUMAN RESOURCES
MANAGEMENT
Human resource management deals with the
management of people – the most important
business resource.

6. B. MARKETING MANAGEMENT
As marketing expert Philip Kotler puts it, marketing
management “is essentially demand management.” This is
because it involves “influencing the level, timing and
composition of demand” so that an organization may reach its
goals.

7. The marketing management functions of management include
the following:
Analyzing, planning, implementing, and controlling of
goods, services, and ideas to create exchanges that satisfy
customer needs and company goals.
Management of marketing resources. Marketing
resources include salespeople, advertising, and
marketing research.
• Management of salespeople
• Management of advertising
• Management of marketing research.

8. IMPORTANCE OF MARKETING
MANAGEMENT
Marketing management is important
because it is the key to organizational
attainment, customer satisfaction, and
profit gain.

9. C.OPERATIONS MANAGEMENT
Business managers today focus on productivity,
technology use, quality of goods and services,
customer satisfaction, and speed.

10. a. Overseeing the transformation process that
change resources into finished goods and services.
b. Improve of productivity and competitive
advantage.
Process value analysis- all elements of a process and
their workflows are analyzed to be able to know their
contributions to key performance results.
Reengineering –discards work steps that are not needed,

11. c. Managing the sequence of activities and information
along the whole course of the value chain.
IMPORTANCE OF OPERATIONS
MANAGEMENT
Through the study of the essentials of operations management,
businesses of different types and sizes may increase their chances
for survival and success in today’s business environment which is
characterized as highly competitive and fast-paced in producing
quality products and services.

12. D. FINANCIAL MANAGEMENT
Gaining profit is the main goal of businesses.
• Taking charge of the company’s financial policies and strategies,
investments, capital structures, and divided policies.
• Investment policy
• Capital structure policy
• Dividend policy
• Financial management and control.
• Financial planning.

13. Financial forecasting involves:
1. Cash budgeting – a forecast of cash needs and sources
2. Profit planning – a forecast of revenues and expenditures
3. Balance sheet forecasting – considers future assets,
liabilities, and the organizations net worth position
Financial analysis involves:
1. Capital budgeting techniques – involves the assessment of
long-term investment
2. Operating leverage analysis – critically examines cost-volume
profit relationship
3. Financial leverage analysis – studies the effect of debt on
income to the organization’s common stockholders.

14. IMPORTANCE OF FINANCIAL MANAGEMENT
Financial management facilitates the choice
investments, financial policies, and operating
mechanism of the organization in order to effectively
achieve its goals and objectives.
• Break-even chart
• Financial statements
• Financial ratios

15. E. MATERIAL AND PROCUREMENT
MANAGEMENT
Materials management is defined as “the function
responsible for the coordination of planning, sourcing,
purchasing, moving, storing and controlling materials
in an optimum manner so as to provide a pre-decided
service to the customer at a minimum cost”.

17. IMPORTANCE OF MATERIAL
MANAGEMENT
1. The material cost content of total cost is kept at a reasonable level. Scientific
purchasing helps in acquiring materials at reasonable prices. Proper storing of
materials also helps in reducing wastages. These factors help in controlling cost
content of products.
2. The cost of indirect materials is kept under check. Sometimes cost of indirect
materials also increases total cost of production because there is no proper control
over such materials.
3. The equipment is properly utilized because there are no break downs due to late
supply of materials.
4. The loss of direct labor is avoided.
5. The wastages of materials at the stage of storage as well as their movement is kept
under control.
6. The supply of materials is prompt and late delivery instances are only few.
7. The investments on materials are kept under control as under and over stocking is
avoided.
8. Congestion in the stores and at different stages of manufacturing is avoided.

18. PROCUREMENT MANAGEMENT
Procurement management is the strategic
approach to managing and optimizing
organizational spend.
IMPORTANCE OF PROCUREMENT IN A
BUSINESS
Procurement is important in business because it
directly impacts a company’s profit.

19. F. OFFICE MANAGEMENT
Office management refers to the process of
planning, organizing, guiding, communicating,
directing, coordinating, and controlling the
activities of a group of people who are working to
achieve business objectives efficiently and
economically.

20. ELEMENTS OF OFFICE
MANAGEMENT
Elements of office management are termed as
pillars of a building.
1.Personnel
2.Means
3.Environment
4.Purpose

21. IMPORTANCE OF OFFICE
MANAGEMENT
• Achievement of goals
• Increases office efficiency
• Smooth flow of work
• Public relations
• Minimization of cost
• Managing change
• New challenges

22. G. INFORMATION AND COMMUNICATION
TECHNOLOGY MANAGEMENT (ICTM)
Management in the 21st century is driven by
information and communication, and digital
network.
Developing the organization’s hardware, software, and other
computing and communicating technology.
Developing the organization’s management information
system (MIS) tailored to the needs of the firm’s unit.
Encouraging e-commerce through Internet use.