Analysis of Functional Areas in Business and Required Workforce Skills

This report provides an in-depth analysis of the functional areas within a business organization, with a specific focus on IOM Electronics. It begins by outlining the importance of distinct functional areas, such as finance, HR, and marketing, for efficient business operations and expansion. The report then delves into the roles and responsibilities within each area, highlighting the significance of finance in managing monetary transactions, HR in staffing and employee management, and marketing in creating brand awareness and driving sales. Furthermore, it explores the interconnectedness of these functional areas, emphasizing the importance of communication and collaboration between departments like sales, marketing, HR, and finance. The second part of the report focuses on the skills required by the workforce to effectively contribute to these functional areas. It discusses both soft skills, such as communication and leadership, and hard skills, such as problem-solving and adaptability, concluding that a combination of these skills is crucial for organizational success.

Functional areas

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
1. Discuss different functional areas that are most common in business organisation?.............3
2. Explain different type of skills needed by workforce so that they become capable to work
effectively in the respect functional areas? ................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
To run the business smoothly it is important for every entity to develop separate
department for different functional areas. The main reason behind separation is that it permits
each person to operate within their area of expertise that helps to develop effectiveness s well as
efficiency across business as whole (Monden, 2019).The organisation which is chosen in this
project is IOM electronics. In deals in electronic items. It has serve the product to the audience
of London. It has many stores in different locations in this serve globally. They use both online
and offline mode to operate business. The topics on which focus is done are various functional
areas that are exist in every type of business organisation. The topic related to different type of
skills that possess by every employees for effective results are also discuss in detail under the
assignment.
TASK
1. Discuss different functional areas that are most common in business organisation?
For any business these functional areas play important role because in this allocation is
done on the basis of speciality. With the help of these functions it become possible for
organisation to run their business smoothly in effective manner which leads to increase the
chances of business expansion and growth. Functional areas of business management are related
to strategy, finance, legal, technology, operations, human resource , marketing, etc. In big
organisation it become simple to identify separate functional areas. The reason behind is that
here human s work together in units. Every department perform the activity which are connected
to it and in which they are specialized. The main reason behind functional areas is that it gives
surety that all activities which is important to business are perform efficiently. In the below
mentioned paragraphs various functional areas that exist in business are explain in detail as these
are as follows-
Finance function:It plays very significant role in business because every type of
business need regular flow of income so that they are capable to make payment of bills. Staff
members of finance team make record of all monetary transactions which help managers to know
profit or loss in terms to value. As well as on the basis of these important financial information
budgets are prepare. Also all the critical information which reflect actual financial position of
business are also given by finance department. Preparation of financial statements are done by

their team members for reflecting true and fair position of company. Finance executives must
focus on figure and facts as it must be accurate because all the investment decisions are taken by
top management on the basis of these reports. Shareholders , underwriters, merchant bankers,
financial institutions also analyse the report and on the basis of these financial data they take
decisions to whether to invest fund in that project or not, is to act as guarantor or not, whether to
take responsibility of underwriting or not. Etc.
HR function:HR is the person who are responsible to appoint new staff and also ensuring
that the most suitable candidate are selected to fill the vacant job position. Hiring wrong
individual can create problem and also become costly for both employer and employee. As
induction programme are arranged for new employees by HR. On the basis of performance
appraisal increment in terms to salary , wages, incentives, commission of workforce are done.
HR also motivate their staff time to time as a result employees are keen to work hard. HR also do
recording of sick leaves and making records of document that are related to it ( Nawaz, 2019).
Marketing function: As it is important for every organisation because success or survival
of any business is depends on it. As executives of marketing department by using suitable
promotional tool create awareness among audience regarding the product. Effective marketing
can only convert promotion to sales. Market analysis can be done by marketers by making focus
on marketing mix. Marketers promote their services or products through using various modes of
advertising such as Television, radio, magazines, newspaper, on social media like Instagram,
twitter, Facebook, etc. exhibitions, trade shows, through promotional events, sponsorship are
also new concept to create awareness (Azad, 2020).
Relationship between various functional areas
It is not possible in any organisation for functional areas to work in isolation. In small
company , interaction between person who perform functions are informal due to this query of
clients can be solved quickly through asking question from anyone who present in the corporate.
On the other hand in big organisation separate department are present and staff of one unit meet
or come in contact to other to take information which is necessary to complete the task. Constant
communication between all the departments as well as their corporation towards each other
supports to achieve objectives.

Sales and Marketing- Marketing executives of marketing department with the help of
advertisement and promotion create brand awareness which indirectly make impact on sales by
attracting customers. As the process starts with marking and ends to sales. If marketing & sales
both are aligned than company retain large number of customers that leads to increase sales rate.
Human resource and finance- HR department are responsible to do all administrative
work as well as to decide and calculate salary after considering basic pay and all allowances.
And after preparing salary the information, data are sent to finance department here executives of
finance department make calculation and adjustment of TDS ( Tax deduction at source). Also
smart accountants for finance unit are hire by HR department after consulting with finance
manager regarding number of candidates require in their team. In this way work are interlinked
to each other (Lee, 2019).
Production and sales- Production department must inform to sales unit regarding issues
that are connected to manufacturing which will make impact on sales and as well as on
customers. Whereas it is the responsibility of sales executives to know production schedule and
also must be updated regarding delivery date of orders through doing communication with
production department so dates are not promised to clients which is difficult to met (Helms,
2021)
2. Explain different type of skills needed by workforce so that they become capable to work
effectively in the respect functional areas?
Skills that must require in workforce
Soft skills: It is important feature that must be present in person as due to their soft way
of communication it attract opposite party. It is mainly important for leadership task because if
leaders communicate with their team members or juniors politely it tends to improve satisfaction
because members think that their leader give respect to their juniors and also give them
importance (Pedersen, 2018).
must have good convincing power: Person must have good power of convenience
because than only they can agree opposite party. For sales executives it is most important as with
good argument only they can attract customers on their product and value.

Confident: He/ she must have great confidence level because than only they are capable
to risk and achieve high goals. As it tends to improve personality of person also. With attractive
personality individual can easily attract large number of people which leads to increase sales.
loyal towards employer and organisation : This feature must possess in employees as
honesty and loyalty develop faith of employer towards them. They should not share critical
information with outsiders or to their competitors as it leads to maintain healthy relation
between workforce and owner.
must have problem solving skills: Human resource must have talent of finding solution
to the issues so that more time are not consume. If organisation has smart employees who can
easily tackle the problem than they can easily accept challenges.
team work: As it essential for success . Working well with managers, clients and other
people can help to complete the task effectively as well as efficiently. Also it supports to create
healthy and enjoyable environment in the work place. It tends to develop good relation among
group which make positive impact on business by avoiding conflicts and improving the
coordination and tendency of cooperation.
Leadership skills: Leader must have effective leadership style to command their team
towards the goal. As people like to work under the guidance of good commander.
Power of adaptability: workforce must have skills of adaptability because than only that
can set in any type of situation. Due to the nature of adaptability they can gain competitive
advantage (Laurent, 2019).
CONCLUSION
After deep analysis it is observe that to run the business it is necessary to have sufficient
human resources. Because with out human assets it is not possible for any organisation whether
it is big, small, medium sized to perform activity. Only it is not important to have workforce but
having skilled and experience human resources is necessary. In organisation managers are
appointed so that proper guidance are given to subordinate and it become possible only if top
management or seniors have skills of leadership, problem solving skills. With their effective
communication skills, they can easily convey message to other party which tends to avoid
chances of confusion and conflicts.

REFERENCES
Books and Journals
Azad, T.D. and Duffau, H., 2020. Limitations of functional neuroimaging for patient selection
and surgical planning in glioma surgery. Neurosurgical focus, 48(2), p.E12.
Helms, M.M., 2021. Encyclopedia of management. Thomson.
Laurent, J. and Leicht, R.M., 2019. Practices for designing cross-functional teams for integrated
project delivery. Journal of Construction Engineering and Management, 145(3),
p.05019001.
Lee, S.H., Jin, S.H. and An, J., 2019. The difference in cortical activation pattern for complex
motor skills: A functional near-infrared spectroscopy study. Scientific reports, 9(1),
pp.1-9.
Monden, Y., 2019. Toyota management system: Linking the seven key functional areas.
Routledge.
Nawaz, W. and Koç, M., 2019. Exploring organizational sustainability: Themes, functional
areas, and best practices. Sustainability, 11(16), p.4307.
Pedersen, P.M. and Thibault, L., 2018. Contemporary sport management. Human Kinetics.