How do the main functional areas of a business interact and contribute to its effective management?

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'How do the main functional areas of a business interact and contribute to its effective management?'

The main functional areas of a business are marketing, human resource, finance, information systems and production. All these interact with each other in different ways but all contribute to effective management. Management would not be completely effective if one of the above areas are missing. They are all needed in different ways to make sure that the business reaches objectives, achieves effectiveness and efficiency and while doing this trying to get a balance in which they can satisfy different stakeholders.

One of the most important functional areas of a business is marketing. Marketing provides the organization with information,
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Marketing can also encourage more motivation from employees because they can be prepared for any changes and will be confident to deal with these changes.

HRP gives other functional areas information and allows the business to plan for the future by looking at the businesses objectives and making sure that the business can adapt to changes when they happen i.e. employing new staff and making sure that training is provided. This can help them to avoid things like to little or to many staff and develop new training programmes if employees seem lacking in the skills needed for the job. HRP allows the business to take more time when making decisions, which means that any actions that they take will be better planned and thought through.

To make sure that human resources are interacting and contributing to effective management a number of things can be looked at. If productivity rates this have risen then it could be due to better workforce that have been selected correctly. If there is not a lot of waste then this could be because workers are trained to work with care with out a lot of mistakes being made. High labour turnover could show that maybe they aren't picking the right people for the jobs.

HRP can contribute a lot to effective management however there can be a few problems when this isn't always the case. One problem is that those plans don't always last that long due to the

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