Management & Business Functions

Business

entities involved in transforming resources to products or

services, offering it to customers, in order to address their

needs, profitably

• Financial Management

• Production Management

• Marketing Management

• Personnel Management

Functional Areas of Business

Financial Management

• Acquisition, management & financing resources

• Primarily concerned with investment and financing decisions

Capital budgeting process

• Example of investment decision-making process

• Important financial policy area of concern of businesses

• A top-level concern because it involves allocation of funds

• Involves the

identification and prioritization of various capital

expenditure proposals given specific acceptance criteria.

Critical Steps in Capital budgeting process

Production Management

• Covers production planning, production process, and quality control

• Ex: Production quantity, layout, processes, transportation, queuing

Routing

determines the operations to be performed and their

sequence (Production planning and control)

Loading

function of assigning work to a machine or department (Production planning and control)

Scheduling

determines the time at which each operation is to take

place (Production planning and control)

Dispatching

authorizes the actual start of operations (Production planning and control)

Expediting

monitors the execution of plans (Production planning and control)

Quality control

process of ensuring that products meet quality

specifications

Wage incentive systems

involve the determination of bonuses for meeting or exceeding production targets, the basis for payment of compensation and the penalties for poor performance, e.g. defective or rejected outputs.

Analyzing marketing opportunities

deals with components of different marketing system e.g. competitors,

suppliers and buyers

Planning marketing programs

an operating plan that focuses on the product mix, prices, promotions and channels of distribution with a timetable for each activity

Formulating product strategies

product development, product phase-out, product planned obsolescence

Administration of marketing program

evaluation of product performance, performance of marketing sales and personnel, determination of bonuses if targets are met or exceeded

Personnel Management

• Attracting, developing, maintaining human resource

• Administration of employee benefits

• Recruitment process

• Performance evaluation of employees

• Orientation of new employees on company policies, personnel

policies, company history

• Maintenance of personnel records

Other business management functions

• Purchasing

• Public relations - Financial, consumer, crisis, industry, government

• Research and development

Public relations

Financial, consumer, crisis, industry, government