Functional Areas of Business Organizations

This report discusses the concept of functional areas and their significance in business organizations. It explains the major functional areas of a business, including marketing, human resource management, customer service, finance, research and development, and sales. The report also describes the skills required by employees to work effectively in these areas.

BSc (Hons) Business Management with
Foundation
BMP3004
World of Work
Functional Areas
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Contents
1Introduction 4
2Defining the concept of business 4-5
3 The meaning of Business's functional areas 5
4 Major functional areas of a business 5-6
5.0 Describe about different functional areas within the
business organizations
p-p
5.1 Marketing p
5.2 Management of human resource p
5.3 Services of customers p
5.4 Finance p
5.5 Research & Development p
5.6 Sales p
6.0 Describe about kinds of skills which are required by
employees to be able to work into effective manner in the
functional areas
p-p
6.1 Skills required by employees of marketing p
6.2 Skills required by Management of human resource employees
p
6.3 Skills required by Service of customers employees
p
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6.4 Skills required by Finance employees p
6.5 Skills required by Research & Development employees
p
6.6 Skills required by Sales employees p
7.0 Conclusion p
References p
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1.0 Introduction
Work environment is associated with corporations and business entities which
promotes value addition to a commodity and fulfill the requirements of consumers. In
a business corporation, the identification of functional areas and their implementation
divides the work performances and helps in ensuring optimum utilization of
resources. Each functional area deals with different functions and wholly contribute
in the completion of a precise activity of an enterprise. Efforts made by different
functional areas are combined together in order to bring maximum efficiency in the
working of an organization. In this report, the concept of functional areas and their
significance is broadly discussed. This report also includes the explanation of various
areas and their activities which helps in management of operations of an
organization.
Defining the concept of business
The concept of business is termed as a corporation or an enterprise which deals
with execution of economic transactions on a regular basis. An enterprise or
organization which is engaged in business activities performs industrial, commercial
or professional functions regularly. It refers to the production and exchange of goods
and services in monetary terms. The main motive of a commercial business is to
make profits by earning margins on the sale of every product (Pettinger, 2020). An
enterprise is regularly engaged in the production of goods and services by adding
value or utility to a commodity which is desired by the people. A business aims to
fulfill the wants and requirements of individuals by providing them means to satisfy
their desires in exchange for monetary value. A corporation could also be
established as a not-for-profit organization which is formed with the objective of
promoting social welfare. The business organizations could follow different structures
and are commonly of three types namely sole proprietorship, partnerships and
companies, which are as follows:.
 Sole proprietorship: This type of business is fully owned or managed by an
individual and the profit earned is wholly related to the sole trader. The
renowned company like Amazon initially started its business with the structure
of sole proprietorship.
 Partnerships: This type of business corporation is a contract among various
individuals who agrees upon division of profits equally or in the ratio of
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capitals invested by them. Spotify and Uber is a common example of
partnership business agreement.
 Companies: This type of business structure is defined by the complexity of
functions and carries operations on a large scale. Companies are formulated
with the completion of various legal formalities and follows a long procedure in
its formation. Companies are characterized by the amount of individual
employed in the process of day to day operations. Entities like tesco and
Morrisons are great example of large scale companies.
The meaning of Business's functional areas
The functional areas of business are referred to the classifications of various
elements and aspects of a business entity. This division of areas promotes
delegation and helps in maximizing efficiency within a company. These areas are the
bifurcations of processes or individuals due to similarity in their skills and nature of
the activities performed by them (Acosta, Crespo and Agudo, 2018). Companies
operating on a large scale divides the scope and areas of working according to the
nature of activities. The functional areas of business is determined and classified by
identifying the course of activities and type of expertise among individuals. With
proper classification and identification of functional areas, an organization aims to
achieve efficiency and effectiveness in its day to day functioning.
Major functional areas of a business
A business organization is required to create functional areas in order to ease
the operating processes in an effective manner. It is crucial to classify the areas of
work according to their similarities due to complexity of operations which is running
with the involvement of massive number of employees. The key functional area of a
business could be classified as marketing department, human resource
management, customer service, research and development, financial and sales
department (Knein and et.al., 2020). The key functional areas are interdependent
and interrelated with each other for the effective performance of a company. These
functional areas works individually within their departments to collectively achieve
the targets and objectives of an organization. The working and productivity of an
individual functional area is associated with the outcomes and performance of
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another functional area. For instance, if the marketing department will not perform
their function properly, it will likely to affect the functioning of sales department
(Cousins, 2018). Likewise, the ineffective decision making conducted by finance
department could impact upon the working of all other functional areas.
5.0 Describe about different functional areas within the
business organizations
There are various functional areas of business organisation which basically includes
marketing, human resource management, customer service, finance, research and
development and sales as well.
5.1 Marketing:
It is basically about meeting and identifying the customer needs. There are many
businesses who consider it important that they are said to be marketing- led(Bustreo
and et.al., 2015). Marketing also plays a very important role in terms of building the
strong image into appropriate manner. It is also the parameter which allows an
individual to share its products and services with the audience into strategic manner.
5.2 Management of human resource:
As a functional area of business, human resource management is very important
because without having this support it is difficult to hire, recruit and retain employees
into effective manner. Without support of human resource management it is difficult
to maintain a healthy and accepting work place culture and environment as well.
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5.3 Services of customers:
Within a business, customer service is important as functional area because it
generates more marketing and sales opportunities for the business. With appropriate
customer service there are chances that revenue can be generated on large
scale(Cumings and Deyo., 2018).When customer services have been received into
appropriate manner then the happy customers will help in building a better
reputation.
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5.4 Finance:
As a functional area of business, finance is important to run an organisation into
smoother manner as it helps the organisation for determining what to spend, where
to spend and when to spend. Finance also contribute in terms of successful
operations of the business and allows for generating profits into appropriate manner.
5.5 Research & Development:
It is important for business because it provides powerful knowledge and insights
which leads towards improvement in the existing processes where efficiency can
also be increased and costs can also be reduced.
5.6 Sales:
As a functional area of business, sales is very important in terms of building loyalty
and trust between customers and business. Without sales it is difficult for an
organisation to stand strongly into the market. When an organisation can do sales for
its business then it is difficult to generate revenue into positive spectrum.
These are functional area of business which act as important role in terms of
building the business into appropriate manner.
6.0 Describe about kinds of skills which are required by
employees to be able to work into effective manner in the
functional areas
There are certain skills which are required by employees in order to work into
effective manner in these functional areas and it is defined into the following manner:
6.1 Skills required by employees of marketing:
A marketing employee should have good communication skill and should have
strong convincing power so that they can generate customers on larger scale
(Manz., 2016).A marketing employee also should have creativity in terms of their
nature and have the quality of problem-solving.
6.2 Skills required by Management of human resource employees:
A human resource management employee should have strong communication skills
so that they can handle large number of employees of an organisation (Osburg and
Lohrmann, ., 2017). The individual personality should have organised nature and
also should be flexible in their nature of working.
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6.3 Skills required by Service of customers employees:
A customer service employee should have persuasive speaking skills and also
should have adaptable nature so that they can resolve problems on immediate basis.
6.4 Skills required by Finance employees:
A finance employee should have strong analytical power and problem solving nature
so that they can find out the solutions into result-oriented manner.
6.5 Skills required by Research & Development employees:
A research and development employee should have strong thinking and reasoning
skills so that they can give results into appropriate manner. The individual personality
should be thorough towards their work and also should pay attention to detail so that
they can do research into deeper manner.
6.6 Skills required by Sales employees:
A sales employee should have strong communication skills and active listening skills
as well so that they can convince customers into easier manner(World Health
Organization, 2017). The individual should have problem solving skills as well so that
they can solve any kind of problem of their customers into positive manner.
Conclusion
The above stated report concludes that it is important for an individual to work into
appropriate manner in this professional world. It has been concluded that there are
various functions of a business and they also very important in terms of achieving
goals and objectives into appropriate manner. It has been determined that there are
certain key functional areas of business which act as an important role in executing
the daily tasks into consistent manner. Every department of an organization requires
certain skills by employees so that they can execute the results into appropriate
manner. That's why in this professional world of work it is necessary that an
individual should have certain skills so that they can stand differently into this
competitive world.
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References
Acosta, A.S., Crespo, Á.H. and Agudo, J.C., 2018. Effect of market orientation,
network capability and entrepreneurial orientation on international performance of
small and medium enterprises (SMEs). International Business Review, 27(6),
pp.1128-1140.
Bustreo and et.al., 2015. World Health Organization perspectives on the contribution
of the Global Alliance for Vaccines and Immunization on reducing child
mortality. Archives of disease in childhood, 100(Suppl 1), pp.S34-S37.
Cousins, B., 2018. Design thinking: Organizational learning in VUCA
environments. Academy of Strategic Management Journal, 17(2), pp.1-18.
Cumings, B. and Deyo, F. C., 2018. 2. The Origins and Development of the
Northeast Asian Political Economy: Industrial Sectors, Product Cycles, and
Political Consequences. In The political economy of the new Asian
industrialism (pp. 44-83). Cornell University Press.
Knein, E. and et.al., 2020. Culture and cross-functional coopetition: The interplay of
organizational and national culture. Journal of International Management, 26(2),
p.100731.
Manz, E., 2016. Examining evidence construction as the transformation of the
material world into community knowledge. Journal of Research in Science
Teaching, 53(7), pp.1113-1140.
Osburg, T. and Lohrmann, C., 2017. Sustainability in a digital world. Springer
International.
Pettinger, R., 2020. Introduction to management. Bloomsbury Publishing.
World Health Organization, 2017. Framing the health workforce agenda for the
Sustainable Development Goals: biennium report 2016–2017: WHO health
workforce (No. WHO/HIS/HWF/biennium report/2017.1). World Health
Organization.
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