SHS

GRADE
11
ORGANIZATION AND
MANAGEMENT
QUARTER 2 – MODULE 15
Nature and Role in the firm of the
different functional areas of
management

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Objectives:
At the end of this module, you are expected to:
1. Explain the nature and role in the firm of the following
functional areas of management:
a. Human Resource Management
b. Marketing Management
c. Operations Management
d. Financial Management
e. Material and Procurement Management
f. Office Management

Lesson Proper
As an ABM student you need to know the value of becoming a
manager. For you to do it, you should identify the different functional areas
of management at the same time its relationship to the major functions of
management, so that you can have a full knowledge and understanding
about this module.
Functional Area of Management
Nature in the Firm
Human Resource Management • Describes the process of
recruitment and selection of
employees in the organization.
• The company mission and
vision as well as the objectives
are discussed on the
orientation and training of
employees in this area of
management.
Marketing Management • It is the process whereby the
supply of goods and services
are monitored to meet the
demand of customers to satisfy
human need and wants.
• The primary focus of this area
is the 4P’s of marketing mix
namely; Product, Price,
Promotion, and Place.
Operations Management • This shows the flow of the
manufacturing process of the
products and goods that the
firm need to sell in the market
to be globally competitive

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Financial Management
Material and Procurement
Management
Office Management
Information Communication and
Technology Management
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• An innovation of products to
be sold is their operational
strategy in this area.
• This area focuses on the sales,
revenues and expenses of the
firm whether it is gaining profit
or have financial losses.
• Here financial statement needs
to be reported yearly among
the different areas of
management in order to
determine the position of the
company in terms of growth,
stability and decline.
• This is the proper distribution
of materials and supplies in
the right time and places to
prevent delay transactions.
• This area of management
stress out the process of
purchasing raw materials and
supplies from the supplier to
monitor the stocks delivered
from the company warehouse.
• It displays the overall work
force of the employees in the
company primarily the
transactions of the business
from the five functions of
management such as
planning, organizing, leading,
staffing and controlling to
achieve the company
objectives.
• This is a two way process in
management that involves the
receiver and the sender.
• Since it is rampant nowadays
that people are engage to the
internet by means of buying
goods, they act as the sender
and the one who receives
orders act as the receiver.
• This area is also responsible
on the internet access of the
firms for business productivity.
Role in the firm
Human Resource Management responsibility is to manage its people to
become skilled and competent workers. Training and development of
employees is one of the major programs of every company. It is the duty of
the HRM to have effective end efficient workers which is very important in
running a business firm. However, this area is also in charge on evaluating
the job performance of each employee in the company for them to identify
those employees who are qualified to receive an increase in salary, rewards,
incentives and benefits.
Marketing Management primary concern is the production and marketing
aspects of the company to target customer satisfaction. Its basic role is to
promote the products and services of the firm in an affordable price. In this
area, managers usually examine the business location of the firm because
the place of the business plays a major role in the marketing mix. Marketing
managers choose the best place for their target markets which is the
customers and it is consider as one of their marketing strategies.
Operation Management is responsible for manufacturing goods and
services in the company, this area of management must engage to the other
area in order for the company to adopt different operational strategies.
Financial Management duty is to focus on the overall financial activities of
the firm from sales, revenues, expenses, income down to profit or losses of
the business to detect its stability.
Material and Procurement Management is in charge on buying raw
materials at its lowest cost to control the company budget.
Office Management is liable on the overall workforce of the firm, its office
activities and the task assigned to the employees to achieve the
organizational objectives.
Information Communication and Technology Management role in the
firm is to track any information of the firm’s business data to maintain its
profitability among its competitors.

Activity 1.1
Identify the following statement intelligently and concisely based on your
understanding about the new concept that you read on the module. Write
on the space provided after the sentence
1. Its primary concern is the production and marketing aspects of the
company to target customer satisfaction. ______________
2. This are focuses on the sales revenues of the firm whether it is
gaining profit or have financial losses. _______________
3. This is in charge on buying ra materials at its lowest cost to control

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 the company budget. ___________________
4. The role in the firm is to track any information of the firm’s business
data to maintain its profitability among its competitors.
5. This shows the flow of the manufacturing process of the products and
goods that the firm needs to sell in the market to be globally
competitive. ______________________

Activity 1.2
Imagine that you are a marketing manager in the firm which is focus on its
internal factors. List at least five strengths and weaknesses relating to
business operations of the organization in the Marketing Management area.
Write your answers on the given table.
STRENGTHS WEAKNESSES
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.

REFERENCES
https://www.slideshare.net/christinejoyubacpilapil/chapter-8-introduction-to-
the-different-functional-areas-of-management

https://www.teachertoolkit.com, 2020

Checked by:

Robert Francisco Virginia Gulinao Roldan Liwanag Antonio Basco

Principal Principal Principal Principal
JPI Sta. Maria JPI Muzon JPI Plaridel JPI San Jose

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KEY ANSWER

ACTIVITY 1.1
1. Marketing Management
2. Financial Management
3. Material Management
4. ICTM
5. Operational Management

Activity 1.2
Answer may vary