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Functional Areas of a Business Essay


Managers play a significant role towards supporting the performance of their organizations. They make businesses successful through continued management and allocation of organizational resources. They undertake every managerial practice in their organizations to achieve the targeted objectives.

According to Robbins and Coulter (2012, p. 64), “managers oversee and coordinate the activities of their employees in order to accomplish the targeted organizational goals”.

Managers should always be ready to address the challenges and problems affecting their companies. Managers have many duties and roles depending on the nature and goals of their organizations. This paper analyzes the roles of a manager within every functional area of an organization.

The Role of a Manager within the Functional Areas of a Business

Managers have a role to play in every functional area of their respective businesses. Such roles are critical towards realizing every business goal. One of these functional areas is the Human Resource (HR). The HR department “handles different activities such as hiring employees, firing workers, and ensuring every person follows the company’s policies” (Feldman & Khademian, 2007, p. 308).

Managers should provide the best leadership and administrative concepts to their HR departments. They should also support and mentor every HR manager. Managers also use this functional area to “take the best disciplinary measures and offer compensations for different activities” (Kraut, Pedigo, McKenna, and Dunnette, 2005, p. 124).

Business managers present the best leadership practices in their organizations. Leadership is a critical aspect because it makes every employee successful. Managers use “various theoretical concepts to deal with the conflicts and challenges encountered by their employees” (Kraut et al., 2005, p. 125).

Managers should also be ready to train and mentor their employees. Some “managers will hire, train, and support new employees in order to remain productive” (Robbins & Coulter, 2012, p. 64). Such roles are critical towards the performance of every HR department.

Accounting is another relevant functional area in an organization. This “functional area deals with the auditing, monitoring, and maintenance of every financial aspect of an organization” (Robbins & Coulter, 2012, p. 83). Some companies formulate new accounting units in order to achieve their goals. Such units “include managerial and financial accounting departments” (Feldman & Khademian, 2007, p. 312).

Financial accounting “focuses on the examination and creation of financial documents such balance sheets and income statements” (Kraut et al., 2005, p. 125). Managers should always examine income statement and balance sheet before making the best business decisions. Managers also monitor the roles and goals of every accountant. Managers use the best leadership practices in order to empower their employees.

Managers should also make appropriate budgetary allocations for future expenditures and projects. Such roles will be critical towards improving the level of business performance. Managers should also use the best strategies to finance the functions of their organizations.

Another “important functional area in many businesses is economics” (Feldman & Khademian, 2007, p. 319). This functional area supports the best activities in order to support the organization’s performance. Some of the activities include “distribution, production, consumption, and marketing of services and products” (Feldman & Khademian, 2007, p. 319).

This functional area is relevant because it transforms raw materials into marketable products. This department also studies the distribution of services and products within different firms. Managers have a huge role to play in this functional area. Managers should analyze the changing market trends in order to maximize products.

Economics is also an important functional area because it helps managers identify new markets and partnerships (Kraut et al., 2005). Managers should also merge different functional areas in order to make the best business decisions.

The approach will make their businesses profitable. Managers should mentor every employee within this functional area. The practice will be necessary towards improving the level of business performance and profitability.

Research and Statistics (R&S) is another important functional area in many firms. This department collects and interprets in order to make the best investment decisions. Managers “should use these data to make appropriate marketing, production, and promotional decisions” (Feldman & Khademian, 2007, p. 319).

Managers should liaise with individuals in the department to understand the current and future business expectations.

Business leaders and managers use such information to support the best organizational practices. Managers should “identify the practices that can support or modify in their businesses’ future practices” (Feldman & Khademian, 2007, p. 319). Such managerial practices will play a critical role towards the performance of the targeted firm.

Operations Management (OM) is a necessary function in every successful organization. This department uses statistical tools to interpret every organizational data. Managers should use such interpretations to examine the performance of their firms.

Such practices will guide these managers throughout their decision-making processes. This functional area determines the performance of every department in an organization. Managers should encourage every employee in this department.

Business organizations cannot achieve their profits without managing their marketing units in a proper manner. These functional areas focus on the needs and expectations of every targeted customer. This department uses the best marketing and promotional strategies to attract more consumers. The main goal of this department is “to ensure every consumer is happy” (Robbins & Coulter, 2012, p. 74). The functional area should always work hard to address the needs of its consumers.

Managers “should empower their marketing managers and coordinators to embrace the best business practices” (Kraut et al., 2005, p. 128). Managers can obtain useful data from this department in order to make the best marketing decisions.

Managers have a duty to mentor, train, and support their marketers. Such practices will ensure every organization addresses the changing expectations its consumers. Managers can use the collected information to create strong brands.

Strategic planning determines the success of a business firm. This functional area deals with the plans and activities that support the goals of an organization. Managers should “use their implementation and strategic planning departments to initiate new organizational policies” (Kraut et al., 2005, p. 124). Managers should also use their skills to bring different departments together.

This practice will increase the level of participation and interaction. The approach plays a major towards making every firm successful. Managers have always used strategic planning and operations management (OM) to support the functions of their respective firms.


The above discussion explains how every manager plays a critical role towards the success of his or her organization. Managers should motivate their employees in every functional area. This discussion also explains why “companies should establish different functional areas depending on their size, goals, and available resources” (Robbins & Coulter, 2012, p. 103).

The success of many every firm depends on the commitment and performance of its manager. Organizations require a dedicated manager in order to support the activities of every functional area.

Reference List

Feldman, M., & Khademian, A. (2007). The Role of the Public Manager in Inclusion: Creating Communities of Participation. Governance: An International Journal of Policy, Administration, and Institutions, 20(2), 305-324.

Kraut, A., Pedigo, P., McKenna, D., & Dunnette, M. (2005). The role of the manager: What’s really important in different management jobs. Academy of Management Executive, 19(4), 122-129.

Robbins, S., & Coulter, M. (2012). Management. Upper Saddle River, NJ: Pearson Education Inc.

This Essay on Functional Areas of a Business was written and submitted by user Georgia Schultz to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.

Georgia Schultz studied at Colorado State University, USA, with average GPA 3.29 out of 4.0.

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Schultz, Georgia. "Functional Areas of a Business." IvyPanda, 27 Jan. 2020,

1. Georgia Schultz. "Functional Areas of a Business." IvyPanda (blog), January 27, 2020.


Schultz, Georgia. "Functional Areas of a Business." IvyPanda (blog), January 27, 2020.


Schultz, Georgia. 2020. "Functional Areas of a Business." IvyPanda (blog), January 27, 2020.


Schultz, G. (2020) 'Functional Areas of a Business'. IvyPanda, 27 January.

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