Functional Areas of Business Essay

Good management and leadership are essential for organizations to operate and additionally for the businesses to prosper. When businesses are well administered, they can function successfully and they can function effectively. Managers have exceptionally effective and strong plans, mangers have systematized structures, organizations, and they also assess effects. When businesses are appropriately directed, they acclimate to modifications in the situation and cultivate cultures that encourage obligation and improvement. Mutually good management and good leadership are essential to maintain organizational performance.

There are 3 core functional areas in every organisation. These core functional areas are marketing, production and finance or accounting. Although these functional area play their roles specifically, all the areas do actually relate together and have a specific goal. Each of these functional areas have to play their own part well only the organisation goal can be achieved.

One way to establish the difference between management and leadership is the fact that leadership is simply one of the many things that a manager should have. In fact, this should be one of the priorities of a manager. But aside from this, a manager also needs to be highly knowledgeable in administrative tasks, because this also comprises a huge part of their job. Specifically, a manager has four major functions to do: Planning, organizing, leading, and controlling. All these functions have been proven to be essential in any kind of management process, and serve as the main foundation of all organizations (Bateman & Snell, 2009).

Managers perform many functions and play many roles. They are responsible for handling many situations and these situations are usually different from one another.

“The accounting system generates the information that satisfies two reporting needs that coexist within an organization: financial accounting and managerial accounting” (Schneider, 2012, ch 1.1, para 1). Managerial accounting is the process of preparing reports and accounts required by management to make business decisions for daily, weekly, monthly, and yearly projects. Financial accounting is the branch of accounting that organizes accounting information for presentation to interested parties outside of the organization. Financial accountants produce annual reports for external

 Managerial accounting is defined as the activities carried out in a firm to provide its managers and other employees with financial and related information to help them make strategic, organizational, and operational decisions.

Leadership and management are needed to convert challenges into opportunities. A manager can be seen as a ‘person who has the responsibility, control and influence over a person or group of people and their activities’. Leader = ‘being a person’s reason for doing something’

Financial management is important to the organization because it provides pertinent finance and accounting information to help managers accomplish the purpose of the organization. Financial accounting provides accounting information to external users. On the other hand, managerial accounting is more for managers (internal users) to use for things like planning, budgeting, etc. The definition of finance has changed over the years, but it’s used to ultimately evaluate previous decisions and make assessments for future decisions of the organization.

Leadership and management are similar; however, have different definitions. Some leaders have an innate ability to learn whereas others may have to learn how to lead. A manager may not be an effective leader. A leader must possess certain characteristics to be effective. Communication, fairness, and leadership knowledge are the top three characteristics of an effective leader.

Finance, understanding how it affects the smallest business to the largest organization, is the origin to financial success in businesses. According to Gitman (2006), finance is the art and science of managing money. Virtually every individual business and large organization, Be the organization for profit or non-profit, depends on the rates at which these entities earn, or raise money, and the rate at which they spend or invest these earned monies. Understanding these financial processes will enable the financial manager, or even the non-financial managers to more effectively interact with financial personnel, processes, and procedures.

The world of business has undergone radical and dramatic changes in the last decade changes that present extraordinary challenges for the contemporary manager. A manager is an organizational member who is responsible for planning, organizing, leading, and controlling the activities of the organization so that the goals can be achieved. According to a widely referenced study by Henry Mintzberg, managers serve three primary roles: interpersonal, informational, and decision-making. Management is process of administrating and coordinating resources effectively and efficiently in an effort to achieve the goals of the organization.

Leadership is just one of the many assets a successful manager must possess. Care must be taken in distinguishing between the two concepts. The main aim of a manager is to maximize the output of the organization through administrative implementation.

Do all managers have leadership skills? The majority of managers possesses management skills but lacks the leadership skills that are needed to be an accomplished person in charge. A manager is someone with a title, who has subordinates that are paid to obey and complete assignments. A leader is someone who people choose to follow. Leaders are not always managers. Any person

3. Managerial Accounting deals with procuring of data for the organisation's management i.e. to serve the internal users with necessary accounting information to carry out the management tasks of planning, organising, actualising and controlling. " Management Accounting is the presentation of accounting Information in such a way as to assist management in creation of policy and in the day to day operations of an undertaking". 4. Financial Management deals with the process adopted by an organisation for taking financial decisions through analysing and interpretation of financial data for meeting the organisations objectives.

Presently many of us have learned that managers are primarily administrators who have learned to write business plans, utilize their resources and keep track of progress. We must learn that we are not limited by job title, and that means we can utilize our management skills in any position that we are in. We must also know that we can use our leadership skills in the same situations. On the other hand we have also learned that leaders are people who have an impact on those that surround them. The main difference that separates these two roles is that management is a function that must be utilized in any type of business, and leadership is the relationship that the leader has with his followers, which in turn can motivate and energize the organization.