My dear students, personally, I would like to welcome you all to the

world of Organization and Management.

Management encompasses several activities, functions, and tasks in
an organization. In particular, the functions of management are applied in
several specialized functional areas of the organization.
The application of management functions in specialized areas
requires managers to have specialized skills apart from the expertise in the
main management functions of planning organizing, staffing, leading, and
controlling. This implies that any skilled member of an organization is
capable of becoming a manager as he or she can use her specialized skill,
coupled with knowledge of management skills, to lead his or her
department. On the other hand, managers are also required to be familiar
with certain aspects of specialized areas with the organization to better
understand it and effectively apply management skills to these areas. The
manager, therefore. must have an awareness of his or her skills, motives,
and values better understand how to apply them in effective management.

Now my dear students fasten your seatbelts to travel and to find a

useful decision to venture into the world of business and management in
the future. Let us now begin to explore in this chapter because at the end
of this unit you are expected to be able to apply the management theories
and principles in solving cases, hence, duties and responsibilities of the
students in performing their roles as the heart of management. Just relax
and read this lesson with LOVE and interest. If you meet some difficulties
do not hesitate to ask your teacher to unlock your difficulties.
This will be the last chapter in your module. Read, read and Enjoy !

explain the nature and role of the following functional areas of

management:
a. Human resource management,
b. Marketing management,
c. Operations management,
d. Financial management,
e. Materials and procurement management,
f. Office management, and
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 g. Information and communication technology management;

For better understanding, some terms were defined for you.

Sealed bid- a type of bid where suppliers put their bids in sealed
envelopes that are only opened during the review. The bids are
evaluated to determine the capacity of the suppliers to fulfill the terms
and conditions set by the company, and the contract is usually
awarded to the bidder with the lowest price.

Let us measure your knowledge if it is still fresh…. So let us try this test if
how good you are.

Directions: CIRCLE the letter of the correct answer.

1. He /She keeps track of employee records, skills,
performance and training, and is utilızed in compensation
analysis, training and development, and hula resource planning.
a. Sales information system c. Human Resource system
b. Finance and Accounting information system d. one of the above
2. Define and classify job positions and ensure access to information on each
job and position in the organization.
a. Job Analyst c. Training specialists,
b. Recruitment managers d. HR managers
3. Is tasked with managing the overall marketing operations of the
organization.
a. The marketing director c. Account executives
b. Marketing managers d. None of the above
4. Is defined as the art and science of managing money.
a. Finance c. Finance manager
b. Treasurer d. Chief Financial officer
5. __________________ Monitor and establish control mechanism on the flow
of cash receipts and disbursement.
a. Cash managers c. Finance managers
b. Credit managers d. All of the above

Congratulation JOB well done my dear manager

FUNCTIONAL AREAS OF MANAGEMENT IN THE ORGANIZATION

There are several functional areas of management: human resource,
marketing operations, and production, finance, materials and procurement,
office management, and formation and communications technology. These
are the significant areas that contribute to the operation of the organization.
Manager therefore, focus their efforts in ensuring that these areas function

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efficiently and effectively by implementing the various management functions
in their respective tasks and projects.
HUMAN RESOURCE MANAGEMENT
Human resource management (HRM) includes
tasks and activities performed by HR managers,
specialists, and operating managers. These operating
managers include supervisors, managers,
department heads, directors, and vice presidents.
The effective management of human resources has a
significant impact on operations and production. If
human resources are not managed properly, they
can adversely affect the utilization of material resources such as money, raw
materials, and equipment resulting in a decline in organizational
effectiveness.
There are several types of HR specialist who perform specific HR functions.
HR managers outline the different positions from top
management up to the people in the lowest level of
the organization. HR managers recruit, conduct
interviews, and manage benefits based on company
policies. Managers Oversee human resource
management and see to it that employee potentials
and abilities are utilized to the fullest and that their
work satisfaction remains high.
Recruitment managers are specialists responsible for the screening, hiring,
and placemat of candidates in suitable positions in the organization. They
continuously search for qualified applicants to fill vacant positions by
employing various means to find and acquire people who can be an asset to
the organization. Applicants are screened through interviews, specialized
tests, and background checks to ensure that candidates are suitable for the
job and for the organization as a whole. Job analysts define and classify job
positions and ensure access to information on each job and position in the
organization. Compensation and benefits managers develop salary
structures, analyze prevailing salary rates in the market and classify benefits
based on job positions, levels, and length of service. They see to that salaries
are given fairly and on time.
Training and development managers enhance and improve the skills of the
employees through the implementation of appropriate training programs.
These programs not only on the skills related to job performance, but also
help employees in their total grown a person. Training specialists,
meanwhile, develop modules, prepare lessons, invite speakers and conduct
training needs analysis in order to create appropriate training programs for
employees. They also assist employees in coping with technological changes
by designing programs that will orient them regarding the latest technologies
and develop their skills in using them.
Finally, employee relations managers take charge of formulating policies,
creating employee handbooks and manuals, coordinating with labor groups,
managing employee complaints and concerns, and dealing with employee
violations. They also handle dispute and conflict settlements among
employees. Specialists use their knowledge of labor laws and wage and salary
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data in dealing with employee concerns as well as in negotiating with labor
groups.
MARKETING MANAGEMENT
Marketing management involves overseeing the
development of new products, advertisements,
promotions, and sales. In small companies, the
owners do the actual marketing activities such as
selling, advertising, and promotions. Large
companies, on the other hand, have their own
marketing and sales department that oversees the
marketing activities of the organization. This
department is composed of employees who are
assigned various tasks.
The marketing director is tasked with managing the overall marketing
operations of the organization. Extensive knowledge in advertising, finance,
and planning are crucial in this position. The marketing director must
effectively manage both the budgeting and the creative process. Apart from
having a marketing director, some companies also appoint a vice president for
marketing management.
Marketing managers are tasked with developing
strategies for the brand by analyzing the demand for
the product or service. They monitor the activities
and strategies of competitors and formulate
strategies to maintain awareness of and demand for
the brand. They also identify potential markets,
distributors, and competitors. Marketing managers
also deal with customers.
distributors, and government agencies in the course of their work. Marketing
managers are also called product managers or brand managers.
Public relations managers, meanwhile, take charge of promoting the
company or organization to the public and enhancing its corporate image.
They are in charge of publicity and ensure that the company maintains its
reputable image in the market and its edge among competitors.
Account executives manage client accounts of departments and prepare
commercials and advertisements for them. They coordinate with advertising
managers who supervise all creative works including conceptualizing and
creating storyboards and contacting media or promotion agencies for the
distribution of the material. The creative director ensures that the
advertisements specified by the clients are produced and delivered promptly.
The media director, meanwhile, selects the appropriate medium for the
advertisement.
Another important aspect of marketing is promotion. This ensures that the
information or message reaches the appropriate clientele and awareness is
raised regarding the product or service being marketed. Promotion
managers supervise all promotional activities of the firm. These activities
encompass all activities for dealers, distributors, and consumers. Promotion
Specialists assist in the preparation of promotional materials such as
coupons, flyers, pamphlets, brochures, gifts, and discount cards. They also

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provide support in the preparation of contest mechanics and events such as
trade shows to promote the product or service.
Personnel that take charge of sales include sales managers who take charge
of selling the product or service by establishing sales objectives and
encouraging sales personnel to attain or even exceed their sales targets. The
sales representatives do the actual selling and ensure that the products
reach consumers. They are also in charge of identifying and monitoring
customer preferences and needs.
OPERATIONS MANAGEMENT
Operations management focuses on designing and
controlling production and business operations
related to production. It involves management of
facilities, processes, distribution, and resource
planning. The operations department is staffed by
personnel who are tasked with the smooth flow of
production and related activities.

Production managers deal with the resource and service

requirements of manufacturing or production. Their
managerial tasks vary trom one organization to another
since production tasks branch out into several operations
like production scheduling, procurement, maintenance,
and equipment and facilities repair. The most crucial task
of production managers is to ensure a smooth flow of
activities through production scheduling. The production
manager has to make sure that the plant meets the
production quota, considering financial and time
constraints. Production techniques are employed based on
the requirements set by top management.
Production supervisors, on the other hand, are assigned to specific parts of
the assembly line or production area. They oversee production operators
who do the actual production work. Production supervisors regularly report
to the production managers.
FINANCIAL MANAGEMENT
Finance is considered the "lifeblood of
business” since all organizations need financing meet
their sales requirements and sustain operations.
Finance is defined as the art and science of
managing money. It can also be defined as the
effective acquisition and manage of the assets of an
organization.
All firms have a finance manager that supervises all finance operation.
Finance managers raise funds, invest in assets, and manage them effectively
in an economically unstable environment. They allocate resources efficiently
to ensure that these contribute to the grow of the organization.
The head of the finance department in large companies is called the chief
financial officer (CFO). The CFO reports directly to the president or chief
executive officer (CEO). The finance department is composed of finance
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personnel that include the treasurer and controller. The treasurer is mostly
involved in major areas of financial management such as investment,
financing, and asset management. Treasurers are responsible for overseeing
budget requirements and assessing investment opportunities and risks. The
controller is tasked with preparing financial reports such as income
statements, balance sheets, and cash flows. These reports help in assessing
the financial position of the organization. Controllers also supervise the
accounting, audit, and budget departments
Finance managers direct the activities of the finance department and are
responsible for making major financial decisions for the company. They
formulate comprehensive strategies and outline corresponding plans for the
other personnel in the department. Finance managers make important
decisions in the following areas:
1. Investment Decision-This is the most important
financial decision because managers have to determine
how much of the total assets should be held or utilized by
the firm and how these will be used by the company. For
example, a finance manager has to decide regarding two
options that will increase the company's production. The
company can acquire a piece of land where a new plant
facility can be built or it can invest in new technology or
equipment to improve operations in existing facilities.
Managers must weigh the pros and cons or each financial
option by analyzing financial data and considering
economic factors in the business environment.
2. Financing decision - Finance managers have to decide what type of
financing should be availed of by the company. The company can use its
existing assets, borrow, or sell shares of stock. When the company decides to
avail of loans to finance its operations finance managers determine the
amount or the loan, set its interest rate, and define the terms of payment.
3. Asset management decision - After acquiring assets and deciding on
appropriate financing options, the company must effectively manage the
resulting financing. Managers take charge of managing the funds acquired
from investments and loan and ensure that these contribute to meeting the
objectives of the organization and result in profits for the company.
Finance managers are also classified into various specialized positions with
specific tasks. Credit managers develop credit policies and monitor collection
of accounts. Cash managers monitor and establish control mechanisms on
the flow of cash receipts and disbursements. They also develop strategies as
to where to invest surplus cash. Finance managers are employed by banks,
credit companies and other financial institutions to supervise lending,
mortgages, investment, and other financial activities.
MATERIALS AND PROCUREMENT MANAGEMENT
Procurement is the act of purchasing or acquiring
goods and services for company use. Companies
usually have a separate department for procurement,
which is called the purchasing department. This
department is charged with the acquisition of

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 materials and resources for the different departments in the
organization.
An important role of procurement management is to determine the sources of
materials and identify and implement processes that will enable the company
to acquire these resources. It is the responsibility of the purchasing managers
and buyers or purchasing officers to find the best goods, raw materials, and
services at the lowest possible cost. Purchasing managers or procurement
managers supervise the procurement process of the company. They evaluate
and approve requests for acquisition and ensure that materials purchased are
of good quality and purchased at competitive prices. Buyers or purchasing
officers, meanwhile, acquire specific products and services required by the
company. They write requests for bids, proposal and quotes, and evaluate
information regarding procurement. Purchasing officers should be familiar
with the items to be purchased since they communicate and negotiate with
suppliers. Those who are in charge of procurement in government offices
should ensure that proper procedures are observed in awarding contracts,
supplies, and projects for public use or consumption. A wholesale buyer is a
type of buyer who purchases merchandise for resale to retailers and others
firms like supermarkets and convenience store. A Wholesale buyer is a type
of buyer who purchases merchandises for resale to retailers and other firms
like supermarkets and convenience stores.
Most organizations implement competitive bidding
only opened during in the procurement of materials
and services. This is the actual review. The process
where prospective suppliers submit their bids which
bids are evaluated too indicate their willingness to
provide products and services to the company at
certain prices.

OFFICE MANAGEMENT
Office management involves the proper
handling and maintenance of the clerical aspects of
all the functional departments of the organization, as
well as the facilitation of proper communication,
coordination, and storage of data. Many companies
have a separate department for office management
which is called the administrative department. It
employs a pool of secretaries, office managers, and
executive assistants who serve in the different
departments. The department also takes charge of
facility management and supervises the custodial and maintenance personnel
such as receptionists, janitors, and security personnel. Office management
also involves payroll, records, telecommunications, and parking management.
INFORMATION AND COMMUNICATIONS TECHNOLOGY MANAGEMENT
` Information technology refers to the application of
computer and telecommunication technology to store,
manage, and transmit data in businesses and other
organization. Implementation of technology in information
management requires the creation of information systems
to handle data specific to certain organizations.
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Information systems are organized systems or network that collect, store,
and disseminate information required to support key organizational
functions.
Business organizations also employ a variety of information systems in the
conduct of their operations, each handling a specific set of information
related to specific functional areas.
1. Sales and marketing information system is engaged in sales forecasting,
pricing analysis, and order processing. The system is also involved in
planning for facilities, location, machine control, and production.
2. Finance and accounting information system monitors the company's
assets an fund flows, and is indispensable in budgeting, accounts receivable,
and financial planning
3. Human resource system keeps track of employee records, skills,
performance and training, and is utilızed in compensation analysis, training
and development, and hula resource planning.
Information system management take charge of establishing an
information system, managing its components and programs, and rendering
technical support to the various departments in the organization. Their tasks
include software and hardware management, networking, and internet
maintenance.
One kind of information system software implemented in business
organizations is enterprise system which integrates the key business
processes of an organization into central repository.

HIGHLIGHTS
 Human resource (HR) management is a major functional area
that primarily deals with the staffing function of management. The
department in charge of this function is tasked with the recruitment of
potential asset employees for the company.
HR managers also see to it that employees utilize their fullest potential
and abilities and ensure the work satisfaction of the workforce.
 Marketing management involves the task of overseeing the development
of new products, advertisement, promotions, and sales. Business
organizations establish marketing and sales departments to handle
activities for the organization. Marketing managers plan strategies to
market products and services, identify the means to implement
advertising and the effective channels to engage the market. and.
determines courses of action in maintaining the company's market
share and sales.
 Operations management is primarily involved in manufacturing or
production.
 Financial Management has the task of acquiring funds and effectively
utilizing them for the operation of the company.
 Material and Procurement management handles the purchase or
acquisition of goods and services for company use.
 Office Management involves handling and maintaining the clerical
aspects of all functional area of the organizations.

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  Information and Communication Technology ensure the optimum
performance of the information system used in the organization.

Management functions are applied in several functional areas of the

business organization. Apart from exercising the major functions of
planning, organizing, staffing, leading, and controlling, managers are
also expected to be familiar with specialized areas of their organization as
they will be managing specific tasks and operations to ensure the
success and profitability of the organization.

Directions: Underline the correct answer.

1. He/ She recruit, conduct interviews, and manage benefits based on
company policies.
a. HR manager c. Human Resource Management
b. Recruitment Managers d. All of the above
2. He/ She are responsible for screening, hiring, and placement of
candidate in suitable positions in the organizations.
a. Marketing management c. Human Resource Management
b. Recruitment managers d .All of the above
3. He/she are in charge of publicity and ensure that the company maintains
its reputable image in the market and its edge among competitors.
a. Public Relation Managers c. Marketing managers
b. Marketing director d. Accounts executive
4. Is defined as the art and science of managing money.
a. Finance c. Finance manager
b. Treasurer d. Chief Financial officer
5. He/ She are tasked with preparing financial reports such as income
statements, balance sheets, and cash flows.
a. Finance c. Finance manager
b. Treasurer d. none of the above
6. It refers to the application of computer and telecommunication technology
to store, manage, and transmit data in businesses and other
organizations.
a. Information System c. Information Technology
b. Information Communication d. Information system managers
7. He /She keeps track of employee records, skills, performance and
training, and is utilızed in compensation analysis, training and
development, and hula resource planning.
c. Sales information system c. Human Resource system
d. Finance and Accounting information system d. one of the above
8. It involves payroll, records, telecommunications, and parking
management.
a. Office Management c. Human Resource system
b. Information Technology d. none of the above
9. Is the act of purchasing or acquiring goods and services for company use?
a. Purchasing department c. Purchasing managers
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 b. Procurement d. Procurement Manager
10. __________________ Monitor and establish control mechanism on the
flow of cash receipts and disbursement.
a. Cash managers c. Finance managers
b. Credit managers d. All of the above

Choose one of the functional areas of management, then after choosing, draw
it in a cardboard or in Styrofoam then cut to make it a real human individual.
Make sure that the human can stand alone.
NOTE: 2 RULERS OR 24 INCHES IN HEIGHT

CRITERIA PERCENTAGE
APPROPRIATENESS OF THE THEME 50%

UNIQUENESS 50%
 CREATIVITY
 STRUCTURE
TOTAL 100%

Directions: Write T if the statement is true, and if it is false, changed

the underlined word to make the statement true. Write your answer
in the blank before each number. 2 points each number
1. Office management involves the proper handling and maintenance of
the clerical aspects of all the functional departments of the
organization, as well as the facilitation of proper communication,
coordination, and storage of data.
2. Finance and accounting information system is engaged in sales
forecasting, pricing analysis, and order processing.
3. Training specialists enhance and improve the skills of the employees
through the implementation of appropriate training programs.
4. Recruitment managers are specialists responsible for the screening,
hiring, and placemat of candidates in suitable positions in the
organization
5. Compensation and benefits managers define and classify job positions
and ensure access to information on each job and position in the
organization.

1. Review the topics discussed in this chapter “Functional Areas of

Management”

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 Dr. Cynthia A. Zarate, Organization and Management, C & E
Publishing Inc. 2016

Job well done! You accomplished the module chapter 11.

uture You are really good and amazing for better outcome. Hoping that this
textbook will help you to find useful should you decide to venture into the
world of business and management in the future.

Your SUCCESS is your EFFORT; likewise your EFFORT is your

SUCCESS.

Congratulations Grade 11 for the job well done. Never stop DOING
THINGS THAT IS BEST FOR YOU BECAUSE I KNOW AT THE END OF THE
YOU WILL BE BENEFITED WITH YOUR OWN EFFORT. NEVER GIVE
BECAUSE TIME WELLCOME YOU WILL BE HARVESTING THE REAL
TREASURE OR WEALTH WHICH IS THE WORD VICTORY!!!!!!

THANK YOU VERY MUCH AND GOD BLESSES US ALL…..

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