Functional Areas in Business Organizations - Desklib

This article discusses the definition of functional areas in business organizations, the key functional areas, and their descriptions. It also covers the skills required by employees to work effectively in these areas. The article is based on a case study of IOM Electronics Ltd. and is relevant to the subject of World of Work (BMP3004).

BMP3004
World of Work
Functional Areas
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Table of Contents
1.0 Introduction..........................................................................................................................4
2.0 What is a business?..............................................................................................................4
3.0 What is Functional areas of business - Definition................................................................4
4.0 What are the key functional areas of a business?...............................................................4
5.0 Description of the various functional areas in business organizations ...............................5
5.1 Marketing: ......................................................................................................................5
5.2 Human Resource Management: .....................................................................................5
5.3 Customer Service: ...........................................................................................................5
5.4 Finance: ...........................................................................................................................5
5.5 Research and Development: ..........................................................................................6
5.6 Sales: ...............................................................................................................................6
6.0 Description of the types of skills needed by employees to be able to work effectively in
these functional areas ...............................................................................................................6
6.1 Skills needed by Marketing employees...........................................................................6
6.2 Skills needed by Human Resource Management employee...........................................7
6.3 Skills needed by Customer Service employees:..............................................................7
6.4 Skills needed by Finance employees: .............................................................................7
6.5 Skills needed by Research and Development employees:..............................................8
6.6 Skills needed by Sales employees: ..................................................................................8
Conclusion..................................................................................................................................8
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.0 Introduction
Functional areas is a department which is specialized in some specific activity. It
include people who are engaged in business functions which are related to customer service,
sales , HR, finance, research and development etc .In the project John won £10 million on
lottery and he decided to acquire IOM Electronics Ltd. It is reputed organization having
around two hundred workforce. In Liverpool and Manchester it has their locations. In the
project discussion are made regarding the topic such as explanation of functional areas in
context to business organization, skills that must present in individual in the available
functional areas are also discuss under the assignment.
2.0 What is a business?
Business is an organization that include group of individuals who are tends to be engaged in
performing operational function so that they can easily achieve the targets by using various
resources that are available such as like machinery, raw material, equipment etc.
(Amankwah-Amoah, 2020). For every business entity it is necessary to have appropriate
vision so that we know in advance that which goals are leads to achieve in near future.
3.0 What is Functional areas of business - Definition
Functional areas are workforce team that tends to posses similar type of expertise and
skills. Different functions are perform with in a business by various specialized unit in the
business. Functional areas are differ as per the size and nature of organization and also
depending on the type of work which tends to be carried out (Gilal and et. al., 2019)
4.0 What are the key functional areas of a business?
Each area in the organization are expertise in operations of business. Marketing,operations,
finance, accounting, management are some of the functional areas that are exist in the
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business. Company tends to be organize functional areas for smooth functioning of the
business (Huang, 2019)
5.0 Description of the various functional areas in business organizations
5.1 Marketing:
It is known as promotional tool, that is used to create brand awareness regarding
services or products as it helps to capture large market area by attracting huge customers
(Armstrong and Taylor, 2020). Marketing include various activities such as researching,
selling, promoting etc. It helps to analyses `companies commercial management for the
purpose to retain their end users through satisfying their needs. IOM Electronics work
effectively in such areas for promoting their products.
5.2 Human Resource Management:
It is the way to hire candidate, providing training to them, framing policies for them,
compensating respective peoples as well as developing various strategies with the objective
to retain the people for long term. In this various administrative works are also carried out.
HRM also dealing with different laws which affecting employment. Working
protection are also an important activity that covered in HRM. IOM Electronics adopt their
HR function for smooth running of company.
5.3 Customer Service:
it is the unit who are responsible to make interaction with their clients. It involves
various activities such as addressing complains of clients, timely give revert to queries,
perform processing of orders. Representatives of such department are consider as first line of
contact with audience. The major objective of such department of IOM ELECTRONICS is to
maintain healthy customer relationship with their clients by taking follows ups from them and
try to resolve their issues as soon as possible with out wasting the time of customers
(Hanlon, 2018).
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5.4 Finance:
It tends to be consider as lifeblood for any organization. As this department are tends
to be specialized in accounting, preparing financial statements, executives working under this
department are also an in charge of payrolls, deducing TDS. Finance team of any business
tends to prepare budget, do forecasting and tends to be perform important decision making.
Respective unit handles all the monetary as well as non monetary transactions and also
responsible to keeping the records as well as maintained important financial data. Employees
are engaged in finance department have good command on accounting, tax. These people
have good command over facts and figures. Finance manager also support to meet out the
long or short term working capital requirements for smooth functioning so that to avoid
business interruption (Denizci Guillet, Kozak and Kucukusta, 2019).
5.5 Research and Development:
It is that type of functional area that covers about innovation, structure and designing
of product with services of an organization. With regards to innovation process R & D plays
the role of catalyst. This department concentrate on various factors such as automation,
creating their latest unique designs. The main objective of such IOM Electronics specific unit
is that to make some up gradation in goods and services in context to the economic &
technological trends.
5.6 Sales:
It is called as transaction in which seller transfer the ownership of product in
exchange of money. It also refers an contract in which both the involving parties agree on
specific price through their mutual understanding. For businesses it is consider as most
significant function . Separate department are fixed to serve the purpose of sales effectively.
As per industry , role of sales executive depends. The main moto of sales man Of IOM
electronics is to sell their product at maximum price so that they can earn high revenues. To
convert their audience into customers, executive of sales department use some smart tactics
(Rambocas and Pacheco, 2018).
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6.0 Description of the types of skills needed by employees to be
able to work effectively in these functional areas
6.1 Skills needed by Marketing employees
In the organization marketers plays an important role as the whole business success
depends to them. Therefore they must posses the skills of good communication so that they
can easily convey their message or words and also the opposite party can understand. Must
have excellent command over digital tools and they become capable to use different channels.
Team members of marketing department are tends to take entry in different market locations
as every place have different culture, weather, climate so these people must have power of
adaptability. Through improving their interpersonal skills they can easily make interaction
with different types of people. It tends to develop strong relationship with others.
6.2 Skills needed by Human Resource Management employee
For effective functioning employees of HR team must have following skills such as -
 must have talent of decision making: employees perform various organization
functions and at every of point they need to take decision. HRM
 skills of on boarding: As in the market there is existence of tough competition among
companies so this feature is important it helps to retain their employees for long term
and reduce workforce turnover.
 Patience skills: As employees and manager of HR department are handling various
activities and keep in contact to so many peoples so at the time of doing conversation
with them they must communicate politely and try to understand the issues of
employees and put their efforts to sought out the matter as soon as possible. Their job
role are very hectic so members of this department must have some patience as it
helps to create good environment in the workplace.
6.3 Skills needed by Customer Service employees:
 Negotiation skills: These skills makes consumer provide better information regarding
issue in relation to problem possessed by them.
 Understanding capability: In this customer service individual should have good
capacity over understanding about problem that has been raised by customers.
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 Good patience level: Executives must maintain the skills because on regular basis
they have to take follows up to deal with the people having different behavior.
6.4 Skills needed by Finance employees:
 Deep accounting knowledge and skills : This skills going to help in making proper
accounts which makes financial analysis possible in more effective manner .
 Skills of record keeping: this helps in arranging all kinds of books of accounts,
vouchers, statements in effective way.
 having calculative skills: This makes company develop better financial practices
which makes profit and loss ratio analyzed as per market condition (Yadav and
Rahman, 2018).
6.5 Skills needed by Research and Development employees:
 Statistical data analysis skills: In this skills data related overall growth of an
organization is being understood by the company which makes innovation possible in
more effective manner.
 Compilation of data skills: These skills help in creating proper database that makes
organization develop innovation over a product which is not performing as the mark.
 Technical as well skills of researching: This skills helps in improving delivery and
manufacturing product while bring innovation with in technology (Pandya, 2019)
6.6 Skills needed by Sales employees:
 Promotion skills – these skills makes product to e promoted in the competitive market
which tends to be increases its sales.
 marketing skill: Any new product along with existing product makes its expansion
possible to increasing its sales as well increasing large customer base.
Conclusion
After deep study and analysis it tends to be conclude that business is the process
which deals with production and manufacturing capacity of an organization with its sales. As
per the size and nature of business functional areas are set. For effective results employees
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must have various necessary skills or characteristics so that these people become capable to
achieve the targets.
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References
Books and Journal
Amankwah-Amoah, J., 2020. Stepping up and stepping out of COVID-19: New challenges
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Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
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Denizci Guillet, B., Kozak, M. and Kucukusta, D., 2019. It’s in the air: Aroma marketing and
affective response in the hotel world. International Journal of Hospitality &
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Gilal, F.G., and et. al., 2019. Promoting environmental performance through green human
resource management practices in higher education institutions: A moderated
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Hanlon, A., 2018. Digital marketing: Strategic planning & integration. Sage.
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