Lim Sei Kee @ cK
In 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
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.
Functional Management
Production
Marketing
Personnel
Management Management Management
 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.
 “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.

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.

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:
Development of a product
Finding out what sort of customers might want to buy the
product.
What packaging should be used
What price should be charged
Where the product should be sold
As well as advertising and promotion
1.
2.
3.
4.
5.
6.
Marketing is the management process
which identifies customer wants, anticipates
their future wants and then goes about
satisfying them profitably.
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.
2.
3.
4.
5.
To increase sales revenue and profitability
To increase or maintain market share
To maintain or improve the image of
products or a business
To target a new market or market segment
To develop new products or improve existing
products
 Definition:
 Personnel
Management is the process of
attracting, developing and maintaining a highquality 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 longterm success.
1.
A)
B)
C)
D)
Attracting a quality workforce:
Human Resource/Manpower planning
Employee recruitment
Employee selection
Wages and Salaries
2. Developing a quality workforce:
A) Employee Training and development
B) Industrial Health and Safety
C) Industrial Relations
Workforce
Planning
Employee
Recruitment
Employee
Selection
Wages and
Salaries
Employee training and development
Industrial wealth and safety
Industrial Relations
 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)