Functional Areas of Business Essay

1117 Words Sep 22nd, 2013 5 Pages
Analyzing the functional areas of Management
Adrean D.Thomas
MGT/521
September 3, 2013
Dr. Machen

Analyzing the functional areas of Management
In all types of businesses (big or small), managers play a key role in the efficiency, profitability, and functionality of how the business meets its goals and successes. The purpose of managers are to oversee and coordinate the work of others. As managers, it is important that ensure that the business’ greatest resource, which are its employees, are used effectively.
There are several functional areas within business that managers play a role in one way or another. These functional areas are business law, human resource management, leadership, accounting, finance, economics, research
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Managers who are good leaders can to use their leadership skills to handle and resolve conflict that may arise, and solicit cooperation through organizational change. Management and leadership are skills that go hand in hand. As a manager, one must organize the work of personnel not just to maximize efficiency, but lead them by nurturing skills to develop talent and inspire results (Murray, 2009).
Accounting is a critical function in management. Whether a for profit business or nonprofit business, both need and use money to survive and succeed. It is important that managers understand the fiscal competencies within their area of responsibility to be good stewards of the funds or profits they are accountable for. There are two components to accounting financial and managerial. Managers in financial accounting create financial documents, such as balance sheets and income statements through the tracking of expenses and profits within a business. Managers in managerial accounting use these statements created by financial managers to in their decision-making processes to make efficient use of funds and control costs.
Finance is a function of business that concentrates on the fiscal properties of a business, such as revenue, loans, grants, and subsidies. Like accounting, finance is critical to any business if it wants to succeed in a competitive business word. Managers must be able to identify how and when