DIP – 9. THE FUNCTIONAL

MANAGEMENTLim Sei Kee @ cK

FUNCTIONAL MANAGEMENT: AN INTRODUCTIONIn an organization there are many tasks every business needs to do if it is going to succeed.

Each of these tasks is described as being in function of a business and hence known as functional management.

Larger businesses might have a number of businesses within the whole company. This would be coordinated by a Head Office, where all the major decisions are made.

Other ways of organizing the business could be more appropriate for different types of businesses:

Product – the functions are organized around the product

Geographical – a hierarchy might be split according to different places that the product is sold into

Market – the organization is based on market segments

A well-established business will divide its activities into several business functions.  These traditionally include areas such as:

Finance & administration Marketing & sales Production & operations Human resource management

THE MAIN DEPARTMENTS IN A BUSINESS MIGHT BE: Accounts Provides a detailed record of the money coming in

and going out of the business and prepares accounts as a basis for financial decisions

Human Resources or Personnel Deals with all the recruitment, training, health and

safety and pay negotiations with unions/workers

Production Makes sure that the production plans are met on

time and products of the right quality are produced

Purchasing Buys all the raw materials and goods

required for production

Sales and marketing Sales function deals with all aspects of

selling to customers; the marketing function carries out marketing research, organizes advertising and product promotion

Whilst each of these functional areas requires specialist expertise, their activities are not carried out in isolation from the rest of the business. It is important to consider the ways in which the functional activities are connected to each other.

However, it is common for each functional area to be set its own objectives, which should be consistent with the higher-level corporate objectives.

TYPES OF FUNCTIONAL MANAGEMENT:

Functional Management

Production Management

Marketing Management

Personnel Management

PRODUCTION MANAGEMENT:INTRODUCTION

Define Production: “Production is a process by which goods

or services are created”.

Production involves the step by step conversion of one form of material into another through chemical or mechanical process with a view to enhance the utility of the product or services.

DEFINE PRODUCTION MANAGEMENT:

“Production management deals with the decision making related to production process of the resulting goods and service which is produced according to specifications in the amounts and the schedule demanded and at minimum cost” – Elwood Butta.

VARIOUS SUB-AREAS OF THE PRODUCTION DEPARTMENT:-

Plant layout and location- This area deals with designing of plant layout, decide about the plant location for various products and providing various plant utilities.

Production planning- managers have to plan about various production policies and production methods.

Material management- This area deals with purchase, storage, issue and control of the material required for production department.

Research and development- This area deals with research and developmental activities of manufacturing department. Refinement in existing product line or develop a new product are the major activities.

Quality control: This department works for production of quality product by doing various tests which ensure the customer satisfaction.

MARKETING MANAGEMENT:

MARKETING MANAGEMENT

Introduction:

Marketing is not just advertising, promotion, and selling. Marketing actually covers many more activities that are carried out by the business.

It includes the following:1. Development of a product2. Finding out what sort of customers might want to buy the

product.3. What packaging should be used4. What price should be charged5. Where the product should be sold6. As well as advertising and promotion

MEANING OF MARKETING

Marketing is the management process which identifies customer wants, anticipates their future wants and then goes about satisfying them profitably.

OBJECTIVES OF MARKETING

The Marketing department should enable the business to meet one or more of the following objectives, i.e., what the business is trying to achieve:

1. To increase sales revenue and profitability

2. To increase or maintain market share3. To maintain or improve the image of

products or a business4. To target a new market or market

segment5. To develop new products or improve

existing products

PERSONNEL MANAGEMENT

Definition: Personnel Management is the process of

attracting, developing and maintaining a high-quality workforce.

If an organization can’t do this right and doesn’t have the right people available to do the required work, it has very little chance of long-term success.

THE FOLLOWING ARE THE 3 MAJOR RESPONSIBILITIES OF PERSONNEL/HUMAN RESOURCE MANAGEMENT AND ARE DESCRIBED AS FOLLOWS:

1. Attracting a quality workforce:A) Human Resource/Manpower planningB) Employee recruitmentC) Employee selectionD) Wages and Salaries

2. Developing a quality workforce:E) Employee Training and developmentF) Industrial Health and SafetyG) Industrial Relations

ATTRACTING A QUALITY WORKFORCE

Workforce Planning

Employee Recruitment

Employee Selection

Wages and Salaries

DEVELOPING A QUALITY WORKFORCE

Employee training and development

Industrial wealth and safety

Industrial Relations

PRESENTATION ON 31ST JAN 2013 Form a group: MIN 1, MAX 3 students. Choose between one of the functional

departments and make a research about it. Tell your audience:- Who lead the department?- What are the responsibilities?- What are the objectives?- Why is it important?

- Submit a copy of your presentation latest on 7th February 2013 (softcopy & hardcopy)