Functional Areas and Skills in Business Organization

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Various functional areas..............................................................................................................3
Types of skills required...............................................................................................................5
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
In an organization there are various functional areas such as, HR, finance, marketing and
advertising, sales, production, information technology, purchasing. All these play important role
in the success of company (Stewart and Brown, 2019). In the present report various functional
areas in business organization and types of skills that is required by employees to be able to work
effectively in these functional areas.
MAIN BODY
Various functional areas
In an organization there are many functional areas that play various roles for the smooth
running of business and helps in managing all the activities of the organization. As in the given
case John want to buy a local company i.e., IOM Electronics Ltd but he is not having proper
knowledge about practical requirements and responsibilities involved in running a business. The
various functional areas are:
Human resource : In every organization human resource department plays a crucial role
as it helps in recruiting and selecting right people at the right place. HR manager is responsible
for assigning roles and responsibilities to employees, deciding their payroll, provide training and
development programs to employees so that they can improve their performance and give their
best in achieving organizational goals. HR manager also measures performance of workers by
comparing their actual work done with standards that were set (Delery and Roumpi, 2017).
Rewards are given to the employees who perform well and punishment is given to workers who
did not perform well and training is given to them so that they can improve their performance
and contribute in accomplishing targets of the organization. This is one of the important
department which helps company in managing all the work and also try to solve the problems of
employees.
Accounting and finance : Another functional area that is necessary for every business,
without that department business cannot work is finance and accounting area. As John is having
£10 million and he want to buy local company. So, he has to manage all the areas and day to day
activities of the company. As in everyday life money is required for buying raw material or any
expense in daily working. This department is one of the crucial area as finance is needed by all
the other department. This area maintains all the information related to finance like, how much
revenue is generated this year, expenses for the year, and make strategies for the next year. No