The document discusses the key functional areas of management: financial management, marketing management, human resource management, and production and operational management. It provides brief definitions and overviews of the objectives and functions within each area. For example, it states that financial management involves procurement and utilization of funds for business purposes, and includes investment, working capital, financing, and dividend decisions. Similarly, it outlines the core activities and goals of the other functional areas.

1. Functional Areas of management
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2. Introduction
•In order to achieve its objectives, a business unit
performs several activities which may be grouped
under important functional departments such as
production, finance, marketing, human resources,
operational management.
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3. Functional Areas
Financial Management
Marketing Management
Human Resource Management
Production & Operational Management
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4. Financial Management
What is Financial Management ?
 Financial management involves managerial activities
concerned with procurement and utilisation of funds for
business purpose.
Definition of financial management
According to Solomon “financial management is
concerned with the efficient use of an important economic
resource namely, capital funds”.
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5. Types of decision
Financial management involves 4 type of decisions
1.Investment decision
The investment decisions comprise capital budgeting and
current assets decisions.
2.Working capital decision
There are two concepts of working capital, namely,
gross working capital
net working capital
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6.  Gross working capital refers to the firm’s investment in current
assets such as cash, debts, inventory, short-term securities, etc.
 Net working capital refers to the difference between current assets
and current liabilities.
3.Financing Decisions
These relate to raising of funds. The finance manager must decide
when, where and how to acquire funds to meet the investment needs of
the company.
4.Dividend decisions
Such decisions are related to dividend policy of the company. The
finance manager has to decide whether the company should distribute
all profits or retain them, distribute a portion and retain in the balance.
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7. Objectives of financial management
Ensuring regular & sufficient supply of capital to the
business.
Ensuring a fair rate of return to the suppliers of
capital.
Ensuring better utilisation of capital by following the
principles of liquidity, profitability and safety.
Co-ordinating the activities of the finance department
with those of the other departments of the enterprise.
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8. Marketing management
• What is marketing management ?
Marketing management is an important operative function of
management. It performs all managerial function in the field of marketing.
• Definition of marketing management
According to Philip Kotler “Marketing management is the analysis, planning
implementation and control of programmes designed to create, build,
maintain mutually beneficial exchanges and relationships with target
markets for the purpose of achieving organisational objectives”
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9. Functions of marketing
Functions of research
and development
Functions of exchange
Functions of
physical treatment
Miscellaneous functions
1. Marketing Research
2. Product Planning &
Development
1. Buying & Assembling
2. Selling
1. Standardisation,
grading & branding
2. Packaging
3. Storage
4. Transportation
1. Promotion
2. Pricing
3. Financing
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10. Human Resource Management
• What is HR management ?
Human resources of an organisation consist of all employees,
regardless od their role, who are engaged in any of the organisation’s
activities.
• Definition of HRM
According to Edwin B.flippo “The planning, organising, directing and
controlling of the procurement, development, compensation,
integration and maintenance of people for the purpose of
contributing to organisational, individual and social gaols”.
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11. Functions (or) Responsibilities of HRM
Employer-
Employee
Relations
7
Personnel
Records
6
Working
Condition
5
motivation
4
Compensation
3
Training and
Development
2
Employment
1
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12. Production and Operational Management
• What is production ?
Production means the conversion of raw materials into finished products
with the help of certain processes.
• Definition of product management
According to Elwood S.buffa, “Production operation management deals
with decision making related to production processes so that the resulting
goods or service is produced according to the specifications in the amounts
and by the schedule demanded and at minimum cost. In accomplishing
these objectives, production management is associated with two broad
areas of activities : the design and control of production system”
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13. Functions and Scope of Production Management
Design of
product
Design of
production
system
Production
planning &
control
Selection of
location
Layout of
plant
Selection of
plant &
equipment
Research &
development
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