Functional Areas in Business: Skills and Organisational Impact

This report provides an overview of the functional areas within a business organization, including management, operations, marketing, accounting, and finance. It highlights the roles and responsibilities of each area in achieving organizational goals. The report also examines the types of skills required by employees to work effectively in these functional areas, such as communication, organization, strategic thinking, problem-solving, commercial awareness, and mentoring. It concludes that functional areas are crucial for business success and that employees with the right skills are essential for achieving organizational objectives. Desklib provides access to similar solved assignments and study tools for students.

Functional Areas

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
1.Explain about different functional areas in organisation of business ..........................................4
2.Explain about the type of skills required by employees to work into effective manner in these
functional areas. .............................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Functional areas refers to the teams of employees who have similar expertise and skills.
The core motive of functional area is that to ensure about all necessary activities related to
business that needs to be carried out into efficient manner. Within an organisation, a company's
sales department is a usual functional area. Under this department, staff members has main focus
towards selling the products of company(Auzias and et.al., 2016).here are five key functional
areas of a business which includes management, operations, marketing, accounting and finance.
These functional areas act as important parameter in terms of achieving overall objectives of an
organisation. Functional areas are important to achieve objectives and aims of a business. The
present report covers discussion about different areas of function in organisation of business. In
addition to this, the report covers analysis about different kinds of skills which are required by to
work efficiently in these functional areas.
MAIN BODY
1.Explain about different functional areas in organisation of business
Business organisation is an entity which is formed for the purpose of carrying on
commercial enterprise. Business enterprise takes one of the three forms which includes
individual proprietorship, limited liability companies and partnership. Within business
organisation, functional areas plays a very important role and support in terms of achieving
overall objectives of an organisation (Diano and et.al., 2016). T There are five key functional
areas of a business which includes Management, Operations, Marketing, Accounting and
Finance.
 Management: Under management system, the main role of manager is that to supervise
other people's performance. There are some major management activities which is
explained into the following categories
Planning: Under this head, for purpose of execution of goals into appropriate manner, managers
plan in such a way that short term strategies and long term goals can be achieved into positive
manner.
Organizing: For organising the operations of a business into efficient manner then managers are
responsible for executing it. By organising factor of business, resources can be utilised into
efficient manner.

Controlling: There are mostly managers who spend most of their time in terms of controlling the
activities within a business to ensure about this parameter that it should be on track in terms of
achieving goals of an organisation. When people does not follow the procedure properly then
managers are the first one who take corrective actions for it.
Leading: Manager serve as leader in terms of practical as well as symbolic terms. The manager
lead the work teams or groups through a new process or development of a new product.
 Operations: It act as the core of a business where goods and services have been pump
out in such a manner where quantity and quality meet out the requirements of customers.
For carrying out the day to day operations, operation manager is mainly responsible for it.
It majorly encompassed from raw materials order to organizing workers in terms of
producing tangible goods.
 Marketing: It majorly consists of all those activities where company identifies customers
needs and requirements in terms of designing products and services. Marketing is also
related with promotion of goods and services and determining how the goods and
services will be delivered(Domingo and et.al, 2015). Marketing function also includes
developing pricing strategy for capturing market share for remaining competitive into the
market.
 Accounting: Accountants are the person who provide information to the managers in
terms of making decisions about the allocation of company resources. This area is
majorly responsible for representing the financial transactions of a business into external
and internal parties, owners and investors. Financial statements are prepared with support
of accountants to help the entities on both inside and outside of the organisation.
Managerial accountants are those person who provide information related to costs,
budgets, asst allocation and performance appraisal for internal use by management for
purpose of decision-making.
 Finance: Finance function is also somewhere related to accounting and this function
involves planning, obtaining and managing company's funds(Miwa and et.al., 2016).
Finance manager always plan for short and long-term financial capital needs. They also
analyse about impact that borrowing will have on the financial well-being of the business.

Finance department is majorly responsible for answering about the question that how the
funds have been managed.
These are the various functional areas within a business organisation and it becomes the base for
achieving organisational goals and objectives at large scale.
2.Explain about the type of skills required by employees to work into effective manner in these
functional areas.
There are certain types of skills which are required by employees to work into effective
and efficient manner in the functional areas. It has been explained into the following manner:
 Communication skills: This skill plays a very important role in terms of every function
of a business organisation(Morris., 2015). For planning and organising function effective
communication is required so that objectives of an organisation can be achieved within a
set period of time.
 Organising and delegation: As an employee within an organisation it is required that an
individual is able to handle various responsibilities so that multiple tasks can be achieved
within a particular period of time. An individual should have the ability top handle their
work load, oversee the work of other employees as well. In addition to this, an individual
should effectively attend meetings and training sessions and review company policies
into positive manner.
 Forward planning and strategic thinking: For working within functional areas of
business it is required that an employee can think about the bigger picture as well apart
from daily tasks and responsibilities. An employee should be ready for their future plan
as well so that they can achieve bigger goals within a time frame(Sorrentino and et.al.,
2018). For achieving bigger goals it is necessary that an employee should have strategic
thinking so that he or she can analyse about loop holes of the bigger targets. This can
only be achieved through having an idea about future plans in the deeper form.
 Problem solving and decision making: For working in a functional area like finance,
marketing and management it is compulsory that an employee should have problem
solving and decision making skills. To achieve the daily tasks into effective manner, it is
necessary that an employee can solve problems on immediate basis and can make quick
decisions on it.

Under this head, an individual should remain calm under pressure conditions so that team can
remain productive in their working hours. Creative thinking also help in terms of solving
problems on immediate basis(Stam and et.al., 2016).Positive approach is required in terms of
solving the problems and for making decision into effective manner. This skill plays an
important role in terms of working in the functional areas.
 Commercial awareness: This kind of awareness is required at organisational level
because this can help the management to work into progressive manner. It is required that
an individual have knowledge about market place where business operates into positive
manner. For having this kind of awareness an individual should be aware about
organisational aims and mission. An employee should have deep understanding about the
sector and also need to be aware about political and economic issues affecting the
business. An employee also should have awareness about company's competitors. In this
way, commercial awareness can be created for properly working into the functional areas.
 Mentoring: For working into effective manner in the functional areas it is required that
they have mentoring ability. This ability is helpful in terms of training and advising the
staff members (Youssefi and et.al., 2017). By having this skill, an employee can become
supportive for an organisation and other staff members as well. Mentoring is the skill
which can be developed through experience and confidence level. It is required that a
mentor should be calm while handing lots of employees at organisational level.
These are the skills which are required by employees to work into effective manner in the
functional areas within an organisation. These are the skills which act as base for an organisation
employees to work into effective and result-oriented manner.
CONCLUSION
The above stated report concludes that functional areas are very important for any
business organisation. Functional areas are those areas where an organisation work under
different departments. Functional areas can be marketing, finance, management and operations.
Every functional area has different way of working and different approach towards achieving the
departmental goals. For working into effective manner there are certain skills which are required
at organisational level.

These skills include decision making, problem-solving, communication skills, mentoring,
commercial awareness and many more. These skills act as base for employees to achieve their
individual targets within a set period of time. Different skills have their different roles in
different areas and every skill has their own importance. On the basis of these skills an individual
or employee can work into effective manner at the organisational level. So these skills act as key
role in terms of working into result-oriented manner at organisational level.

REFERENCES
Books and Journals
Auzias and et.al., 2016. MarsAtlas: A cortical parcellation atlas for functional mapping. Human
brain mapping, 37(4), pp.1573-1592.
Diano and et.al., 2016. Cerebellar clustering and functional connectivity during pain
processing. The Cerebellum, 15(3), pp.343-356.
Domingo and et.al, 2015. Cognitive performance associated to functional outcomes in stable
outpatients with schizophrenia. Schizophrenia Research: Cognition, 2(3), pp.146-158.
Miwa and et.al., 2016. Relationship between functional and structural changes in diabetic
vessels in optical coherence tomography angiography. Scientific reports, 6(1), pp.1-12.
Morris, J. S., 2015. Functional regression. Annual Review of Statistics and Its Application, 2,
pp.321-359.
Sorrentino and et.al., 2018. Brain functional networks become more connected as amyotrophic
lateral sclerosis progresses: a source level magnetoencephalographic
study. NeuroImage: Clinical, 20, pp.564-571.
Stam and et.al., 2016. The relation between structural and functional connectivity patterns in
complex brain networks. International Journal of Psychophysiology, 103, pp.149-160.
Youssefi and et.al., 2017. Functional assessment of thoracic aortic aneurysms–the future of risk
prediction?. British medical bulletin, 121(1), pp.61-71.