Areas of management Flashcards
Operations
The business function responsible for managing the process of creating goods and services that is transforming inputs into outputs
• Operations as an area of management contributes to business objectives by producing the goods and services necessary to generate revenue which can contribute to business objectives such as to make a profit.
• Goods and services that are of a high quality can increase customer satisfaction, which can contribute to business objectives such as increasing market share.
Operations involve:
• planning, organising, coordinating and controlling all the resources needed to produce the goods or services provided by a business
• Without effective operations management, there may be wasted resources or poor quality products
• This area of management responsibility is core to the business as it’s outputs provide its revenue which is closely aligned
Finance
Finance as an area of management handles the monetary requirements of a business. All businesses require money to start, function and grow.
• Involves the management of the monitory aspects of the business. It can include the production of budgets, the creation of purchase orders and paying suppliers, financial record keeping, banking and payroll.
• This area of responsibility can help a business achieve all their objectives by ensuring the business has money available to do all the necessary things
Human resources
Human resources as an area of management establishes and manages their relationship the business has with its employees, including their hiring, training and termination
• It manages the relationship between the employer and employees. It often is said that employees are the most important resource of any organisation
• The strategies used by the human resources area focus on improving the motivation of employees and meeting their expectations. If their management is conducted poorly, then the business may find that its staff absenteeism and staff turnover rates are high.
• If employees are treated well they may feel more motivated in their role and perform better, contributing to business objectives such as making a profit
Sales and marketing
Sales and marketing as an area of management promote and sells the businesses goods or services to customers. It involves creating awareness of the businesses products that result in increased purchases by customers
• Responsible for developing strategies, such as market research, advertising and branding, to create an ongoing relationship between the business and its customers. This functional area generates customer demand and is then responsible for promoting the product or service to the target customers.
• Attracting customers and increasing sales contributes to the business objective meeting shareholder expectations.
Technology support
Technology support as an area of management installs automated equipment, machinery and devices within the business and provide assistance to employees on the use of these technologies
• May include mobile phones, computer networks, software products or other electronics
• This area of management responsibility is very important, as many businesses today have computerised part or all of their operations. For many businesses therefore, the achievement of business objectives relies heavily on the successful integration.
• In a manufacturing business, technology is used when ordering the stock and inventory control. As well as supplying the goods produced to fulfil an order made by a customer
