Management has a very broad reach. The management function differs depending on how it is used. Every organization has a unique functional area of management that is necessary for activity plananing, resource organization, the construction of a communication system, people leadership and motivation, and operational control in order to achieve its goals or objectives.
Functional areas of management refer to the sum total of all activities conducted in an organization to meet the organization’s objectives. Personnel, finance, marketing, and human resources are among the most important of these services.
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1. Personnel ManagementÂ
All means of production (people, materials, machinery, money, etc.) can be classified as active or passive. Men are active means of production, whereas machinery, materials, money, and so on are passive means of production. An enterprise may have a significant number of passive means of production, such as machinery, materials, and money, but they are useless if they are not used efficiently. These can only be used effectively with the assistance of active methods, i.e., humans.
What is required is that human resources be made available in the most effective manner possible. Personnel management is responsible for making effective human resources accessible. In large organizations, a personnel department is developed to carry out this function. The personnel manager oversees the operations of this department.
2. Financial Management
The primary goal of every business is to generate a profit for its owners by selling goods or services. Finance is necessary to achieve this aim. In this perspective, it is possible to say that money is the heart of any firm. Keeping this in mind, efficient financial management is vitally important.
In any firm, three major financial questions arise: How much financing would be required for various business activities? (ii) How much of it will come from various sources? and (iii) How will profits from various company activities be distributed? All of these issues have an intrinsic answer in financial management.
In other words, under financial management, the demand for financing is first calculated, then possible sources of getting finance and their quantum are defined, and lastly, plans for profit distribution are formed.
To summarize, under financial management, a business’s financial demands are handled in such a way that its goals may be readily attained. In fact, basic financial education is a must for everyone to manage their expenses better.
3. Marketing Management
Marketing management encompasses all managerial marketing tasks. Marketing encompasses all operations ranging from identifying customer demands to ensuring their pleasure. Management, on the other hand, includes planning, organizing, staffing, directing, and controlling. Marketing management refers to the performance of all managerial functions in the context of marketing.
Thus, the following are the primary activities of marketing management:
- Marketing activity planning
- Marketing activity planning
- Staffing to carry out marketing efforts
- Marketing activity direction
- Marketing activity management
4. Human Resource Management
This entails planning, coordinating, and supervising the acquisition, development, remuneration, and retention of people resources in a business.
It is divided into the following sections:
- Human resource planning
- Recruiting and hiring
- Job evaluation
- Manpower training and development
- Performance evaluation
- Remuneration and advancement
- Employee satisfaction
- Maintaining employee records
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