Functional Areas of Business: Manager’s Role

Functional Areas of Business: Manager’s Role

Cynthia Fields

MGT/521

3/28/15

Donna Perkett

Functional Areas of Business: A Manager’s Role

In today’s world, there are many different functional areas of business. Some of the functional areas of business are: law, human resource management, leadership, accounting, finance, economics, and operations management (MBA Overview Module, n.d.).  

Functional Areas of Business

Management

Management can be defined as involving the overseeing employees and coordinating work activities, making sure tasks are completed efficiently and effectively. Robbins and Coulter (2012) states, “an efficient manager gets the most output with the least amount of input and an effective manager ensures work activities are completed to reach organizational goals” (Robbins & Coulter, 2012,).

Business Law

Business law can be defined as the study of legal aspects regarding operating a business. This functional area includes all laws that dictate how to form and operate a business and covers all state and federal laws, as well as regulations.  According to the American Business Law Journal, “  Business law teaches the legal tools that every businessman, particularly business managers, must know in order to conduct business safely, soundly, and within the rule of law that binds anyone conducting business” ( 1977).  A sensible comprehension of law and ethics is a crucial factor in decision-making and strategy.

Human Resource Management

          Human resource management (HRM) involves various activities.  Human resource manager’s key responsibility is managing human resources. Some of these activities are: determining the staffing needs, deciding to hire or fire employees, recruiting and training employees, resolving performance issues, and making sure the organizational practices follow the rules and regulations learned about in business law ("Free Management Library", n.d). Effective management of human resources allows employees to contribute to the direction of the company overall as well as reaching organizational goals.

Leadership

Leadership is the various ways managers inspire and motivate employees. Good leaders are great listeners and have strong communication skills. A most important role of leaders is to lead employees to uncover their full potential. They are open to and support new ideas, processes, and devices. Effective leaders are the enabling force that assists people and organizations to perform and develop to the best of their ability. Leadership skills are important for managers to master in order to become successful.