FUNCTIONAL AREAS OF MANAGEMENT

Nastiya Mukherjee

Production Function

The production function plans, organizes, directs and controls the necessary activities to provide products and services, creating outputs which have added value over the value of inputs.

Activity Example Obtain inputs to the production 'system', such as plant facilities, materials and labour. Inputs: timber, screws, nails, adhesives, varnish, stain, templates, cutting tools, carpenters

Production Function Contnd

Adding of value The activities below occupy most of the production manager's attention. Scheduling jobs on machines Assigning labour to jobs Controlling the quality of production and/or service delivery Improving methods of work Managing materials and equipment, to avoid waste Operations: sawing, sanding, assembly, finishing Create outputs, ie finished products and services Outputs: tables, chairs, cabinets, and so on

Relationships with other functions

Product design is coordinated with R&D. Production should advise R&D as to the consequences of particular designs for the manufacturing process. Job design will involve consultation with human resources specialists. The quantities needed to be produced will be notified by the sales department. The human resources department will be involved in managing the work force. The finance department might indicate the resources available for new equipment

Finance Function

Raising money, ensuring it is available for those who need it Recording and controlling what happens to money, eg payroll and credit control. Providing information to managers to help them make decisions Reporting to stakeholders such as shareholders and tax authorities.

Human Resource Function

Staffing Wages, salary and welfare administration Industrial Relation Performance Appraisal Training & Development Safety

Administrative Function

Security Function, Canteen Function, housekeeping, gardening, building maintenance. Filing Information Incoming Mail & Dispatch

Marketing Function

Marketing is 'the management process which identifies, anticipates and satisfies customer needs profitably'. (Chartered Institute of Marketing) Marketing activities in organizations can be grouped broadly into four roles. (a) Sales support: the emphasis in this role is essentially reactive: marketing supports the direct sales force. It may include activities such as telesales or telemarketing, responding to inquiries, customer database management, organizing exhibitions or other sales promotions, and administering agents. These activities usually come under a sales and marketing director or manager.

Marketing Function
(b) Marketing communications: the emphasis in this role is more proactive: marketing promotes the organization and its product or service at a tactical level. It typically includes activities such as providing brochures and catalogues to support the sales force. (c) Operational marketing: the emphasis in this role is for marketing to support the organization with a co-ordinate range of marketing activities including marketing research; brand management; product development and management; corporate and marketing communications; and customer relationship management. Given this breadth of activities, planning is also a function usually performed in this role but at an operational or functional level.

Marketing Function
(d) Strategic marketing: the emphasis in this role is for marketing to contribute to the creation of competitive strategy. As such, it is practiced in customer-focused and larger organizations. In a large or diversified organization, it may also be responsible for the coordination of marketing departments or activities in separate business units.

Question?

'An accounts department is not making goods and selling them and so does not need the marketing. concept.' Is this a fair comment?

Answer:
No. (a) The accounts department supplies information to various other parts of the organization. Providing information is its service, and the other parts of the organization are, effectively, its customers. (b) An accounts department deals with customers all the time, especially credit customers: after all it sends out the bills and collects the money. As its activities are directly involved with customers, it must take the marketing philosophy on board, too.