Functional Areas and Employee Skills: IOM Electronics LTD Report

This report provides an overview of functional areas within business organizations, focusing on their roles and importance. It identifies key departments like marketing, sales, HR, finance, operations, and research & development, and explains their contributions to business growth. The report also details the essential skills required for employees in each functional area, such as communication, analytical, and project management skills. It emphasizes how these skills impact the performance and success of a business, using IOM Electronics LTD as a case study. The report concludes by highlighting the significance of skilled employees and proper resource management in achieving business goals and maintaining a competitive advantage in the market.

Functional
Areas
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Describe the various functional areas in business organisations................................................3
Describe the types of skills needed by employees to be able to work effectively in these
functional areas...........................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................3
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INTRODUCTION
Functional areas are basically the teams of the skilled employees in the organisation there
are different types of functional areas in the organisation like sales department, finance
department, HR department etc. these department helps in the growth of the organisation by
maintaining management in the organisation different departments have various responsibility
which they have to fulfil so that revenue of the business can be increased. It also helps executing
the development in the organisation so that productivity of the business can be increased which
will helps in increasing the market share of the business (Tseane-Gumbi, 2018). Different
functional areas have skilled employees which help in the increasing the performance of the
business by developing proper working environment which will in the proper utilisation of
resources. In this report it will be observed that how different functional areas helps in the
growth of the business.
MAIN BODY
Describe the various functional areas in business organisations.
Functional areas in the organisation helps in increasing the profit of the business in the
market there are various functional area in the organisation.
 Marketing and Sales department: In helps in increasing the sales of the business by
influencing the customers by the benefits of the products which the organisation is
providing. It also helps in promoting the products and services of the business which
helps in increasing the market share of the company. This department helps the in
generating the leads for the organisation which helps in increasing the profit the business
in the business f customers will get influenced by the services of the business then it will
the business to increase its revenue in the market. It also helps in increasing the customer
loyalty towards the business by building the healthy relationship with the customers.
Marketing plays an important role in the business it helps promoting the across the
regions which helps in increasing the demand of the product in the market (Aggarwal,
2019).
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 Human resource department: It helps in recruiting the best employees for the
organisation so that goals effectively in the market. It helps in developing the workforce
of the organisation. This department is responsible for recruiting the employees, hiring
the employees, providing training for the employees, firing the employees. If well skilled
employees are not hired in the organisation then it can affect the performance and
management of the organisation due to which company can place loss.
 Finance department: It helps in managing the cash flow of the organisation by preparing
the balance sheet, cash-flow reports, financial statements, maintaining the accounts
payable and receivable it helps in maintaining the financial stability of the business so
that business cannot face any loss in the future. For running the business smoothly in the
market funds are very important this department helps in providing the funds to the
organisation so that performance of the business can be improved (Shams, 2018).
 Operations department: It helps in the production of goods and services from start to the
end these department help in the manufacturing of goods by design, controlling, planning
so that proper outcome can take place in the organisation. The managers of the operation
department is responsible for the production process because if the product is not as per
the expectation of the customers it can affect the growth of the business in the market.
Operation managers has to analyse the needs and requirement of the business so that
demand of the business can be increased in the market.
 Research and development: It helps in providing new ideas and information so that
organisation can improve its services in the market. It helps in making the strategies in
the business. Organisation are investing more in the technologies so that better services
can be provided to the customers which will help in the growth of the business in the
market. This department helps in fulfilling the demand of the economy by analysing the
needs and requirement of the customer accordingly business performs its function which
helps in increasing the profit of the business (Aggabao and Alyammahi, 2017).
These are some of the functional areas which helps IOM electronics LTD in the development of
the business so that its profit can be increased.
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Describe the types of skills needed by employees to be able to work effectively in these
functional areas.
To work in the various functional areas of the business skills and knowledge is very
important it helps in increasing the profit of the business if the employees of the IOM
electronics LTD does not have the proper knowledge about the functional then it can affect the
demand of the business in the market.
 Human resource department: For this department communication is very important
employee should have both written and verbal communication skills so that they can
interact properly while recruiting the staff because lack of communication can develop
misunderstanding between the recruiter and the individual. Employees in the organisation
should have organising skills so that employees cannot face any issue in the organisation,
patients in the employees helps in reducing the chances of conflicts in the organisation
which will helps in providing proper working environment to the employees (Burlacu,
2020).
 Marketing and sales: for this department employee should have the influencing skills so
that they can influence the customer by providing the benefits of the products to the
customer for influencing the customers communication is also very important strong
communication skills helps in attracting the attention of the customers. Employees should
also have product knowledge so that they can resolve the queries of the customers easily.
Analysing the needs and requirement of the customers is also very important for the
employees in the marketing and sales department. Employees should also have active
listening skills so that better information can be provided to the customers.
 Finance department: In the finance department proper mathematical expertise is very
important so that calculation can be done effectively any wrong update in the calculation
can affect the financial stability of the business (Kaczmarek and Kociuba, 2017).
Employees should also have analytical skills so that proper record of data and be
maintain with proper cash flow statement so that business can analyse it performance and
provide improvement wherever required. Employees should also have basic knowledge
about the accounting principles they should also have the knowledge of Microsoft excel
so that data can be maintained easily.
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 Operations department: employees in the operations department should have the skills to
analyse the external and internal customer needs so that production can take place
accordingly. Good motivational skills in the employees helps in increasing the production
of the business. Budget management skills in the employees is very important in
operations department because it helps maintaining the financial value of the business. If
proper management of funds will not be there in the organisation then it can affect the
growth of the business in the market. Employees of the this department should focus on
the quality of the products by the analysing the requirement of the customers so that best
services can be provided to them (Borucińska-Bieńkowska, 2020).
 Research and development: employees in research and development department should
have project management skills so that assigned project can be completed effectively.
Employee should know how to handle the budget so that proper development can take
place without any loss. IT skills in the employees is also very important because for the
maintenance of data various programmes can be used for which proper system
knowledge is very important. These skills can helps in presenting the work in the more
innovative manner. Team managing skills also helps in providing better outcome to the
organisation in the research and development programs support of the team is very
helpful in effective decision making. It also helps in providing innovation to the business.
Various skills in the different department helps the IOM electronics LTD to increase its
performance so that better services can be provided to the customers well skilled employees
helps the business in achieve its goals in the short period of time. If John will hire well skilled
employees in the organisation it will helps him to increase its demand and revenue in the market
also it will helps in providing competitive advantage to the company.
CONCLUSION
In this report it has been observed that functional areas helps the business to achieve its
growth in the market by providing proper management of resources which helps in increasing the
goodwill of the business in the market. Different functional areas in the organisation helps in
improving the services of the business by maintaining the proper of data and information so that
performance of the business can be enhanced proper management is very important in the
organisation to increase its productivity in the market.
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REFERENCES
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Aggarwal, R. and Wu, Y., 2019. Functional Areas in Improving Depth of IB Teaching.
Shams, S.R and et. al., 2018. An integrated cross-functional model of strategic innovation
management in business: The implications of ten cross-functional business areas.
In Business Models for Strategic Innovation: Cross-Functional Perspectives (pp. 176-
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Aggabao, B.A. and Alyammahi, H.S., 2017. Functional areas and organizational performance of
adco. European journal of economics and management sciences, (4).
Burlacu, S and et. al., 2020. Theories and Models of Functional Zoning in Urban Space. Revista
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Kaczmarek, T. and Kociuba, D., 2017. Models of governance in the urban functional areas:
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Poland. Quaestiones Geographicae, 36(4), pp.47-64.
Burton, A.A. and Hassan, S.A., 2017. FUNCTIONAL AREAS AND ORGANIZATIONAL
PERFORMANCE OF ADCO. European Journal of Economics and Management
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Borucińska-Bieńkowska, H., 2020. The Influence of Cultural-Historical Determinants on
Functional-Spatial Development of Rural Areas. Civil and Environmental Engineering
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Knippschild, R. and Schmotz, A., 2018. Border regions as disturbed functional areas: analyses
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