Report on Functional Areas and Skills Needed in Business Organisations

This report provides an overview of the functional areas within business organizations, focusing on IOM Electronics as a case study. It highlights key areas such as management, production, marketing, research and development, finance, and human resources, explaining their roles and importance in achieving organizational goals. The report also details essential skills employees need to work effectively in these functional areas, including communication, professional, interpersonal, organizational, and decision-making skills. It emphasizes the need for coordination and skilled employees to ensure the efficiency and effectiveness of business operations. The document is available on Desklib, a platform offering a wide range of study resources for students.

Functional areas

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK-1 ...........................................................................................................................................3
Various functional areas in business organisations....................................................................3
TASK-2............................................................................................................................................6
Describe the types of skills needed by employees to be able to work effectively in these
functional areas...........................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Functional areas of business refers to those functions which is conducted by businessman
to operate their business. There are many functional areas of business such as management,
production, marketing, human resource, operations and research & development. These
functional areas needs highest focus of businessman because the success and failure of business
is depend upon the effectiveness of these functional areas(Borucińska-Bieńkowska, 2019). This
report provides systematic knowledge of various functional areas of management and also
includes various skills needed by employees of the organisation to performs these functions
effectively. IOM electronics is a company which is chosen here to describe above aspects and
this company is purchase by Mr John having 200 employees and operates in two parts such as
Manchester and Liverpool.
TASK-1
Various functional areas in business organisations.
There are many functional areas of business which are responsible for the operations and
these functional areas is very important because it helps the company to complete task and
projects. Brief discussion related to these functional areas are given below.
Management
Management is related to planning, organising, staffing, controlling and leading the
activities of business to achieve the goals and objectives of the organisation effectively and
efficiently. It is regarded as the most important functional area of business because of its need in
each and every function of business. There are many theories and models of management which
is developed by various management experts to manage the activities of business for the
achievement of goals and objective. Various aspects of management area as follows.
 Planning :- It is related to those activity done by managers under which all the strategies
related to business of IOM electronics are planned. Under this function managers makes
planning related to performance of task.
 Organising :- under this function managers of organisation performs a function of
organising the resources for the business operations and also ensures the proper
utilisation of these resources. The managers of IOM electronics organises various

resources such as machinery and new technologies for the operation of their electronics
business.
 Controlling :- It is regarded as the most important function of manager, under this
function it ensures that all the function are performed efficiently and periodically evaluate
all the functions. The management of IOM electronics develop a separate committee to
check the quality of production at every stage.
 Staffing :- This function of management is related to the recruitment of workforce in
organisation. Activities related to the interview are taken place in this function of
management. The need of work force in business of IOM electronics is fulfil by their
human resource management.
 leading :- It is related to the qualities of managers to influence the behaviour of
employees towards the achievement of organisational goals and objectives. The managers
of IOM electronics perform several activities to motivate their employees towards work.
Production
The process of converting input into output is called production. It is one of the important
functional area of business because all the products and services are developed in this
department. This department needs focus of management to perform all activities effectively.
IOM is a electronic company and develops products such as television, LED, regenerator and air
conditioner. These product need Modern technology and machinery to be created. The
management of IOM electronics provides raw material and other essentials to develop the
product efficiently. Managers of company evaluated the process of production at their different
stages.
Marketing
It is regarded as the most important function of modern business. Under this function
business organisation perform various marketing techniques to aware the customers about the
new and innovated product and services of business. It helps the business to take competitive
advantage from the market. Marketing involves many techniques such as sales promotion,
personal selling, direct marketing, and television marketing. All these methods are well used and
proved to be applied. IOM electronics deals in a electronics product which requires high level of
advertising to increase their sale. There are many method which IOM electronics can be used to
increase their sale such as sales promotion, exhibitions and television marketing.

Research and development
This department of business organisation are responsible for the development of new
product and services as well as the innovation ion new product. The marketing team of business
organisation gathered the information related to needs and preference of consumer from the
market by a way of market research and then deliver it to Research and development department.
This department properly analyse the received data and develops the product according to the
needs of customer and also makes innovation in their existing product. IOM electronics operates
in electronic industry where the needs of customer are very dynamic and demands new and
innovated products regularly. IOM electronics need to make considerable investment in their
research and development department so that new technologies can be developed fast.
Finance
It is related to those department which are responsible for organising and management of
funds for the activities of business. It is very important aspect because all the activities of
organisation needs funds to be performed. There are many methods which company uses to
acquire funds such as long term and short term loans, shares and debentures and investors. Bank
loans is the most common used method to use by companies to acquire the funds for business
activities. IOM electronics acquires the needs of funds from their investors and perform various
functions of management.
Human resource
It is an important functional area of business, all the activities related to workforce of
organisation are done under this department. The main duty of this department is to recruit
talented employees in organisation. Talented employees can be attracted by effective salary
structure and working environment (Kirschner, 2019). There are also some task which human
resource department performs such as salary and management of employees. IOM electronics
deals in a electronic appliances and required large number of employees having technical
speciality, so the human resource department of IOM electronics conducts many interviews and
recruit talented candidates on work.

TASK-2
Describe the types of skills needed by employees to be able to work effectively in these
functional areas
There are many skills which employees required to perform their business operations
effectively such as communication skills, professional skills, interpersonal skills, organisational
skills, decision making skills and commercial awareness. The brief discussion related to these
skills are given below.
 Communication skills :- It refers to those skills of person which is used by them to
communicate with other persons. This skills is very important for employees because it
enables them to develops healthy relations with other employees as well as customers of
the organisation. Communication skills can be developed by proper training of language
and specific subjects. Communication skills helps the employees to attracts their
customers (Foltête and Vuidel, 2017). It is very important for the employees of IOM
electronics because electronic business includes direct interaction of employees and
customers. Communication skills helps salesman to describe the merits of Electrical
appliances in front of customers.
 Professional skills :- It refers to those skills and abilities of candidates which helps them
to succeed in job. It is very important for employees of the organisation to have roper
knowledge of business and market. This knowledge develops skills in employees to
perform their activities effectively. One of the basic need of IOM electronic business is
professionalism in their employees which increases the efficiency and effectiveness of
business because it reduces the chances of mistakes in work.
 Interpersonal skills :- It is related to the personal traits and qualities of person. It
includes way of talking, dressing style and behaviour of employees towards work. These
skills are very important for employees because it helps to attract employer as well as
customers towards organisation.
 Organisational skills :- It refers to organise and mange the different operations of
business. This skill helps the employees to develops coordination between different
department of organisation and achieve goals of organisation effectively and efficiently.
There are many departments in IOM electronics such as production marketing and many

more which requires proper coordination. This coordination id provided by the managers
of company.
 Decision making skills :- It is one of the most important skill which should be present in
employees. This skills is used in almost every activity of organisation and also in
personal life of employees. This skill enables the employees to take quick decision in any
circumstance which increases the efficiency of business.
CONCLUSION
It is concluded from this report that there are some functional areas of business which
requires more focus of management to achieve the goals of organisation effectively and
efficiently (Cropley and Cropley, 2017). It is required to have proper evaluation of performance
of these department. There are many skills which should be present in employees of organisation
because it helps to develop healthy relations to them.

REFERENCES
Books and Journals
Borucińska-Bieńkowska, H., 2019, July. Synergistic Processes in Functional-Spatial
Development of Communes in a Metropolitan Area. In International Conference on
Applied Human Factors and Ergonomics (pp. 427-435). Springer, Cham.
Cropley, D. and Cropley, A., 2017. Innovation capacity, organisational culture and
gender. European Journal of Innovation Management.
Foltête, J.C. and Vuidel, G., 2017. Using landscape graphs to delineate ecologically functional
areas. Landscape Ecology, 32(2), pp.249-263.
Kirschner, F., 2019. Automotive IT: a new model for cross-functional collaboration in the
German automotive industry (Doctoral dissertation, University of Gloucestershire).
Kudratova, A.I., 2021. METHODOLOGICAL FUNDAMENTALS OF FUNCTIONAL
LITERACY FORMATION.
Ransbotham, S. and Kiron, D., 2017. Analytics as a source of business innovation. MIT Sloan
Management Review, 58(3).
Sangeetha, P. and Kumaran, S., 2018. Impact of shared leadership on cross functional team
effectiveness and performance with respect to manufacturing companies. Journal of
Management research, 18(1), pp.44-55.
TIAN, X.J. and FU, J.H., 2018. Study on Economic Development Performance Evaluation of
Ecological Functional Area: Based on Heilongjiang Province. In Statistics &
Information Forum (p. 03).