Functional Areas of Business Organisation and Skills Required by Employees

This report discusses the functional areas of a business organisation and the skills required by employees to work effectively in these areas.

World of Work

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Description related to functional areas of business organisation.......................................3
2. Describe the types of skills that are required by employees to be able to work effectively in
these functional areas.............................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals.................................................................................................................7

INTRODUCTION
In today’s time business plays a vital role. Each and every nation of the world wants to have
good business organisation. It is important to note that there are various types of business firms
that operate. The success of a nation depends on the businesses working. As the business aims to
earn more and more profit and that profit contributes to the nation (Chernenko, 2020). So the
working of business organisation is effective as well as necessary for the world. This report is
based on making John aware about the basic management that is important for businesses. There
is discussion related to various function of management. Along with that employees play a vital
role in success of an organisation so the skills that are required by the employees to work and
carry on the operation is also mentioned in the report.
MAIN BODY
1. Description related to functional areas of business organisation.
Every business aims to enhance the profitability and serving the needs and wants of
customers. There are various categories of business. All the business manages their operations in
different ways but the functional areas are normally common. As all of the business firms have
to function in a way that helps to work effectively. The various functions that the business
organisations use are mentioned below:
Production Function
It is one the basic function of management. Every organisation works to produce goods and
services and provide them to customers to satisfy their needs and wants. Production can be
defined as converting the raw material into finished goods (Grechaninov, 2018). It is seen that
business should provide quality products and services to the customers so that they are loyal
towards the company. There are various standards that are fulfilled and followed by company
while producing the goods.
Finance and accounting Function
It is a known fact that finance is most required function of management. It is important
for a company to manage its finances to become successful. The finance department is
responsible to take effective decision related to finance (Heikkilä, Kaipia and Ojala, 2018). As
business needs money to carry on all the operations and it is the finance and accounting
department that analyses the sources of finance and to decide the best source of finance. Along

with that one of the important works is to take care of the budgetary requirement. All the
forecasting related to money is also done by the finance department.
Human Resource Department Function
The human resource department basically works to manage the humans that are working in
the organisation. They are the one who selects the employees that are right for the job and do all
the work related to the organisation (Ching Jr and Patimo, 2021). They must ensure that the
employees they employ have the skills, experience, and qualifications required to fulfil the
company's needs. In addition to hiring and selecting, HR is in charge of major areas such as
wages and salaries, training, employee relations, and organisational growth. Another important
work that is done by HR department is to understand the employees and motivates them towards
work.
If an employee faces challenges or conflicts while working human resource manages
solves them out and provide a good solution to the employees. The HR of the company makes
efforts to retain the employees towards the organisation. All the work from entry to working to
exit of the employee is in the hands of the HR department.
Marketing Function
The role of marketing department in an organisation is to persuade the customers and attract
them to buy the goods and services of the company. It is seen that the marketing is one of the
prominent functions of management. It is an activity of business to promote its product by
formulating strong marketing strategy for the company (Panigrahi and Jena, 2020). It is analysed
that nowadays the businesses are switching towards online modes to promote the goods and
services. It is important to note that the marketing function facilitates sales of the organisation.
The businesses spend a lot on the marketing as it helps to enhance and boost up the sales of the
organisation. There are various that are used by companies to market the products of the
company. It is important that the company establishes positive and strong image so as to serve
more and more customers and gain advantage over the competitors.
Sales Function
It is the activity of business that focuses on selling the goods and services of the
company. Every company focuses on enhancing the sales. The sales of an organisation are based
on the effectiveness of all the other functions of management. Basically, the marketing and sales
department work together and coordination among them is vital for success of the organisation.

Information and Technology Function
As all the world is turning digital it gives rise to IT department in an organisation. There is
regular update in the technology and the businesses are using updated software (Santos, Terra
and Chaer, 2021). So as to manage all the work and the problems that are faced by the employees
related to technology are sorted by IT department. It is important to note that this department is
required by all the organisations nowadays. As there role is enhancing and using it effectively
will lead to success of an organisation.
This is discussion related to all the departments that function in an organisation. It is
important to note all these are basic functions that are used by the business to operate effectively.
It also varies from business to business. All the business firms should be aware and clear about
the role of each department. There should be proper coordination among all of them so the work
is accomplished on time. The discussion related to these functions will help John to work
effectively.
2. Describe the types of skills that are required by employees to be able to work effectively in
these functional areas.
The employees are the one that work for the organisation and help to achieve the goals and
objectives on time. It is seen that the work of an organisation is in the hands of employees. There
is requirement of various skills that help the employees to work effectively and help the
company to function properly. The skills are discussed underneath:
Communication Skills
There is need of good and effective communication skills so as to work in an
organisation. It is seen that the employees of marketing department needs effective
communication skills to attract and persuade the customers (Kumar and Barla, 2021). The
Human Resource department employees also need good communication skills to understand the
employees and build good relations with them.
Decision Making Skills
As employees are the one that are working for the company. They have to take various
decisions as the part of their work. The employees of an organisation should have ability to
analyse the situation and take effective decisions. That will help in success of the organisation.
Leadership Skills

Each and every business needs leaders who can combine personal and organisational goals.
It is an ability that employees of businesses must use in order to achieve success and growth.
Leaders will communicate their message to ensure that everyone does their best in the workplace
with the help of leadership skills. They also provide motivation to the employees and al; the
individuals that are part of the organisation and make them achieve the goal of the company.
Interpersonal skills
It is important for organisations to work on their workforce in order to improve leadership
abilities in their organisational functions. Employees must engage in events in order to establish
relationships with other individuals of the organisation as well as external parties such as
customers. Customers are the most important people with whom workers must communicate. In
order to understand customers and provide them quality goods and services. Customers may be
satisfied and a company's goals can be met by analysing and considering their requirement.
Conflict Solving Skills
It is seen that challenges are normal and part of the life of an employee. Employees must
solve the issues in a variety of cases that cause complications or problems in the organisation.
Employees face difficulties in dealing with situations that are complex. It is vital to solve these
problems and find solution (Martin, 2019). This skill is required to solve day to issues that come
in path of employees. Small and big businesses are in need of problem-solving skills. Employees
can solve problems by themselves using problem-solving skills, even though they lack
experience.
These are the skills that are required by the employees to work effectively and
accomplish the desires of the organisation. These skills can be development by providing
training and development to the employees.
CONCLUSION
It can be analysed that success of business depends on effectiveness of all the functions. In
the report all the main functions of the business are discussed. Along with that it is vital to note
that the employees work to perform all the functions. There is description related to the skills
that help the employees to perform these functions effectively.

REFERENCES
Books and Journals
Below, R. A. L., management functions and responsibilities.
Chernenko, A., 2020. HUMAN RESOURCES AND FUNCTIONS OF THE MANAGEMENT
OF THE EDUCATIONAL ORGANIZATION. Economics, Finance and Management
Review, (3), pp.114-121.
Ching Jr, J. P. and Patimo, D. M., 2021. Effectiveness of the MIS Units in SUCs Samar-Leyte
Islands through Management Functions: Administrators and MIS Personnel
Perspective. Asian Journal of Research in Computer Science, pp.13-21.
Grechaninov, V., 2018. THE EXPEDIENCY OF IMPROVEMENT OF ARMED FORCES
MANAGEMENT BY AUTOMATIZATION OF THEIR BASE FUNCTIONS. Science
& Military Journal, 13(1), pp.31-37.
Heikkilä, J., Kaipia, R. and Ojala, M., 2018. Purchasing category management: providing
integration between purchasing and other business functions. International Journal of
Procurement Management, 11(5), pp.533-550.
Kumar, M. K. and Barla, A.P., 2021. Role and Functions of Integrated Material Management in
Public Sector Undertakings. The Management Accountant Journal, 56(2), pp.94-97.
Martin, A., 2019. Conflict management in information fusion with belief functions.
In Information quality in information fusion and decision making (pp. 79-97). Springer,
Cham.
Panigrahi, R. R. and Jena, D., 2020. Inventory control for materials management functions—A
conceptual study. In New Paradigm in Decision Science and Management (pp. 187-
193). Springer, Singapore.
Santos, F. M., Terra, G., Piotto, D. and Chaer, G. M., 2021. Recovering ecosystem functions
through the management of regenerating community in agroforestry and plantations
with Khaya spp. in the Atlantic Forest, Brazil. Forest Ecology and Management, 482,
p.118854.