Organization and Management

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11-ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 8– Org Man Subject Teacher: Kenny Jones A. Amlos

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11-ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 8– Org Man Subject Teacher: Kenny Jones A. Amlos

Introduction to the Different Functional Areas of Management

Learning Objectives:
At the end of the lesson, the student should be able to:
a. document the different functional areas of management;
b. be guided on how a business will be shaped and managed;
c. understand all aspects of organizing and running a business; and
d. realize its importance as a tool in management and for future career path.

CONTENTS
1. Different Functional Areas of Management
a. Human Resource Management
b. Marketing Management
c. Operations Management
d. Financial Management
e. Information and Communication Technology Management
2. Functional Areas of Management: It’s Importance as a Management Tool
3. Functional Areas of Management: It’s Importance for Future Career Path

Functional Areas of Management

Functional areas of management mean the sum total of all those activities which are
performed in an organization to achieve the objectives of the organization. These functions can be
of different types and have a special importance.

A. Human Resource Management

It is a branch of management which is concerned with the recruitment, selection, development
and the optimum use of the employees. In other words, human resource management is concerned
with the employees engaged at all levels of an organization.

Objectives of Human Resource Management

✓ To Provide able Employees

Able employees alone can contribute to the achievement of the objectives of the
organization.

✓ To Increase Employees’ Efficiency

Proper selection of the employees is not sufficient for the success of the organization.
Rather it is necessary to add to their efficiency continuously. Human Resource manager
performs this function by arranging training for the employees.
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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11-ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 8– Org Man Subject Teacher: Kenny Jones A. Amlos

✓ To Develop Team-Spirit

The aim of the human resource management is to develop a spirit of goodwill,

confidence and mutual respect between the employees and the employers. Such a
spirit makes industrial relations cordial.

✓ To Develop Congenial Work Environment

The environment of work in which the employees have to work has great effect on their
efficiency. Clean and healthy environment increase their efficiency. It is, therefore, the
function of human resource management to provide good work environment.

B. Marketing Management

It includes all those activities ranging from knowing the needs of the customers to their
satisfaction.

Objectives of Marketing Management

✓ To Ensure Consumer Satisfaction

To achieve this objective, marketing manager makes an intensive study of the needs
of the consumers. Production and distribution of goods are in tune with their needs.

✓ To Serve the Society

Marketing manager plays an important role in discharging the social obligation of
the business. To this end, his constant endeavor is to produce good quality products,
to supply goods and services at reasonable prices, to avoid false promises through
publicity media, and to ensure good behavior to the customers.

✓ To Increase the Market Share

Increase in market share means increase in sales. Aim of a marketing manager is to
bring under his possession a large part of the market.

✓ To Perform the Marketing Function Efficiently

Marketing functions include – marketing research, product planning, purchase, sale,
branding, packing, pricing, and advertising. Marketing manager is responsible for
performing all these functions efficiently.

C. Operations Management
It is aimed at ensuring maximum efficiency within a business, which in turn helps to improve
profitability.

It involves resources from staff, materials, equipment, and technology, converting these inputs
into efficient and effective outputs on both day-to-day and strategic levels within an
organization.

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11-ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 8– Org Man Subject Teacher: Kenny Jones A. Amlos

Objectives of Operations Management

✓ Customer Service
To utilize the resources of the organization, to create such products or services that
satisfy the needs of the consumers, by providing “right thing at the right price, place
and time”.

✓ Resource Utilization

In operations management, the formation of goods or services encompasses

conversion of inputs into outputs, wherein different inputs such as capital, labor,
material, machinery and information are combined and used to create output, by
using the conversion process. For this purpose, the organization measures different
points in the process and then compares the same with the set standards, to ascertain
whether corrective action is required or not.

D. Financial Management
The major objective of any business concern is to make profit for its owners by selling goods or
services. To reach this goal finance is required. In this context it can be said that finance is the soul of
any business concern. Keeping this in view, the proper management of finance is absolutely
necessary.

Objectives of Financial Management

✓ To ensure regular and adequate supply of funds to the concern.
✓ To ensure adequate returns to the shareholders which will depend upon the
earning capacity, market price of the share, expectations of the shareholders.
✓ To ensure optimum funds utilization. Once the funds are procured, they should
be utilized in maximum possible way at least cost.
✓ To ensure safety on investment, i.e, funds should be invested in safe ventures so
that adequate rate of return can be achieved.
✓ To plan a sound capital structure - there should be sound and fair composition of
capital so that a balance is maintained between debt and equity capital.
E. Information and Communication Technology Management
It makes a business more efficient, effective and promptly respond to customers’ needs. ICT
can assist business activities including design, manufacturing, R&D, distribution and sales and
feedback.

Objectives of Information and Communication Technology Management

✓ In Product Development
Information technology can speed up the time it takes new products to reach the
market. Companies can write product requirement documents by gathering market
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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11-ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 8– Org Man Subject Teacher: Kenny Jones A. Amlos

intelligence from proprietary databases, customers and sales representatives.

Computer assisted design and manufacturing software speed up decision making.

✓ In Stakeholder Integration
Using global 24/7 interconnectivity could look up the relevant information on servers
based companies. Many companies use their investor relations websites to
communicate with shareholders, research analysts and other market participants.

✓ In Process Improvement
Enterprise resource planning (ERP) systems allow managers to review sales, costs and
other operating metrics on one integrated software platform, usually in real time. An
ERP system may replace dozens of legacy systems for finance, human resources and
other functional areas, thus making internal processes more efficient and cost-effective.

✓ Cost Savings and Competitive Advantage

Cost savings, rapid product development and process improvements help companies
gain and maintain a competitive advantage in the marketplace.

✓ In Globalization
Companies that survive in a competitive environment usually have the operational and
financial flexibility to grow locally and then internationally. IT is at the core of operating
models essential for globalization, such as telecommuting and outsourcing.

Functional Areas of Management: It’s Importance as a Management Tool

1. In order to achieve company objectives, a business unit performs several activities which may be
grouped under important functional department.
2. The various functional departments of business are inter-dependent and interrelated.
3. There must be proper integration of various functional areas of business to achieve its objectives.

The Positives of a Career in Management

There are most definitely great reasons to pursue a career in management. The ability to
impact your firm in a larger way is one great driver to be in a corporate world. Others include:

1. You have the ability to amplify your own ideas on strategy, direction and problem solving
through others.
2. You gain the reward that comes from developing great professionals over time.
3. You develop your own skills for leading and coaching.
4. You are immersed in working with other people of all levels, backgrounds and experience sets.

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11-ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 8– Org Man Subject Teacher: Kenny Jones A. Amlos

REFERENCES

Cabrera, H.M.F. (2015). Organization and Management. Quezon City: Vibal Group, Inc.
De Guzman, R.S. (2018). Introduction to Management. Baguio: University of the Philippines
Stevenson, W.J. (2010). Operations Management. Singapore: McGraw-Hill Companies, Inc.
Kinicki, A. & Wliliams, B.(2009). Management. New York: McGraw-Hill/Irwin.
Schermerhorn, J. (2010). Introduction to Management
Payos, et al( 2016). Organization and Management. Rexetore.
Stevenson, W.J. (2010). Operations Management. Singapore: McGraw-Hill Companies, Inc.

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