Functional Areas of Business: Key Departments and Skills

World Of Work
(Functional Areas)
Table of Contents

INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
What is business ?.......................................................................................................................3
What is functional areas of business? ........................................................................................3
What is key functional areas of a business ?...............................................................................4
Description of the various functional areas in business organisation.........................................4
Description of the type of skills needed by employees to be able to work effectively in these
functional areas...........................................................................................................................5
REFERENCES................................................................................................................................8

INTRODUCTION
Functional areas of a business can be defined as the integrated parts of a business firm
which help in carrying out the operational activities. Like a human body have a different organs
to perform a different functions of body, in a similar way there are different organs which
execute the activities of a business firm (Büdenbender and Aalbers, 2019). These functional
areas depends on the size and scope of company along with the nature and area in which it
operates. IOM electronic is a well recognised regional level company with a total number of
workforce of 200, operating majorly in two areas Liverpool and Manchester. Below mentioned
report covers various functional areas of IOM electronics along with the identification of skills
and expertise required by employees to work in each department efficiently.
Main Body
What is business ?
A business can be any profession, trade, occupation or an commercial activity which is
conducted with the objective of earning one's living or manufacturing or selling a goods of
services in exchange of money with the objective of making profit. The business can be also be
for a non-profit making which is regarded as for a social work or for charity (Chong and et. al.,
2019). Business can take a tangible form by creating a legal entity for carrying out a business
activity which can be formed through various means such as sole-proprietorship, partnership,
corporation, non-governmental entities etc.
What is functional areas of business?
According to the viewpoint of Sevilla, (2015), Business entities separates the work into
distinct parts as the per the nature, size, skills, expertise and experience of an employees required
to perform work in each distinct parts. These parts are regarded as the functional department
where employees are clubbed together with the common skills and knowledge required by each
functional departments to work effectively and efficiently. Generally business segregates its
work into four major areas which are marketing, operations, human resource and finance.
However there are other areas too such research and development, sales, manufacturing,
information technology, purchasing, customer service, depending on the nature and size of a
business.