Functional Areas of Business Free Essays

Functional Areas of Business: Operations and Project Management Gregory J. Deschapell MGT521/Management February 12, 2013 Dr. Rosamaria Murillo Functional Areas of Business: Operations and Project Management There are several functional areas that compose a business. We will write a custom essay sample on Functional Areas of Business or any similar topic only for you Order Now These areas frequently, if not constantly, interact with one another to ensure that the organization succeeds. This paper will summarize two of these functional areas: Operations and Project Management. We will also review the roles of managers who oversee these areas. The original concept of operations management dates back to the 1930s when businesses focused on economic efficiency in manufacturing. Soon after, psychologist and sociologists began to observe and evaluate human behavior in the workplace. In addition, economists, mathematicians, and computer socialists contributed newer, more sophisticated analytical approaches (Kumar Suresh, 2009). The term †operations† was adopted as the service sector of the economy became more prominent. A more modern definition would state that operations is the functional area of a business that oversees, designs, controls the process of production, and redesigns business operations in the production of goods and services. It ensures that business operations are efficient, using as few resources as possible, and effective in terms of meeting customer requirements and satisfaction. Simply put, it manages the processes that convert inputs into outputs. Effective operations management balances out quality, customer demand, employee development, profit, and environmental considerations. Most organizations concern themselves with improving the efficiency and effectiveness of processes. Therefore, operations management includes substantial system of checks, balances, and evaluation that examines, analyzes, and measures these internal systems. Ultimately, the nature of how operations management functions in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, and wholesale. Operations managers have two types of responsibilities: direct and indirect. Direct responsibilities that directly relate to producing and delivering products and services include managing, planning, controlling, developing methods for improving processes, and creating operational strategies that can keep the organization competitive in times of rapidly changing economic conditions and technological advances. Indirect responsibilities include interacting with other functional areas within the organization whose roles have an impact on operations. These areas may include marketing, finance, accounting, and human resources. Operations managers face several challenges in today’s world. For example, they are increasingly encouraged to do more with less. This translates into developing methods to maximize existing resources. They must be knowledgeable on emerging technology that will increase productivity in an efficient manner. They must be able to motivate and derive maximum performance from those that they lead. Finally, operations managers must be able to have an evolving understanding of globalization and environmental changes. In today’s economy, it is common knowledge that businesses can no longer operate on just one principle, e. g. , cost, quality, or delivery, they must develop a strategy that supports multiple competitive objectives. This differs from a traditional approach that matches organizations capabilities to a particular market segment. Operations managers have to be more innovative as well as inspire creativity to anticipate ever-changing future requirements and customer demands (Brown, Blackmon, Cousins, Maylor, 2001). The next functional area that we will examine is project management. Project management is a branch of management that uses management tools to fulfill a defined goal for a shorter period. These tools may include budget analysis, allocation, and optimization. The term â€Å"project management† can take on different meanings. How organizations interpret and apply the position may differ. To gain a better understanding of the definition of project management, it is important have an understanding of what a â€Å"project† is. Specifically, a project is,â€Å"A temporary endeavor undertaken to create a unique product, service, or result† (Cooke Tate, 2011, pg. 39). The word â€Å"temporary† assumes that most projects have a starting and ending period and the word â€Å"unique† alludes to the fact that most projects normally fall outside the routine definition of an organization’s traditional practices or sevices. In this functional area, teams are assembled to accomplish a specified objective. The role of a project manager is to plan and execute a project successfully. To accomplish this, a project manager must be in possesion of several skill sets. In addition to basic management skills, a project manager must be able to communicate with other members of the project team effectively and coordinate with other functional areas within the organization to request resources necessary to accomplish the task. A project manager must be have an ability to ask meaningful questions, identify assumptions, and resolve conflict that may arise. They must also understand the impact of risk on the success of the project an alleviate any uncertainy that may create a risk. They must also be able to organize. Prioritizing tasks and employing team members in accordance with their capabilities and areas of expertise is essential to successful project management. In addition to leadership, the role of project manager also encompasses activities such as planning, resourcing, scheduling, time management, and budgeting. In closing, it is important to provide some degree of measure to determine the efficiency of these two functional areas. Obvious indicators would be increases in the quality of product or services that an organization provides customer and employee satisfaction, the emergence of more efficient business processes, and the increased mitigation of risk. The role of managers plays an instrumental role in the immediate or eventual outcomes. In the words of Stephen R. Covey, a noted American educator, author, businessman, and keynote speaker, â€Å"Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall. (Covey, 2004, pg. 101). References Brown, S. , Blackmon, K. , Cousins, P. , Maylor, H. (2001). Operations Management—Policy, Practice and Performance Improvement. In S. Brown, K. Blackmon, P. Cousins, H. Maylor, Operations Management—Policy, Practice and Performance Improvement. Woburn, MA: Butterworth-Heinemann . Cooke, H. S. , Tate, K. (2011). The McGraw-Hill 36-Hour Course—Project Management, Second Edi tion. In H. S. Cooke, K. Tate, The McGraw-Hill 36-Hour Course—Project Management, Second Edition (p. 1). New York, Chicago, San Francisco, Lisbon, London, Madrid, Mexico City, Milan, New Delhi, San Juan, Seoul, Singapore, Sydney, Toronto: McGraw-Hill, Inc. Covey, S. R. (2004). The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change . In S. R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change (p. 101). New York: Free Press. Kumar, S. A. , Suresh, N. (2009). Operations Management. In S. A. Kumar, N. Suresh, Operations Management (p. 2). New Age International Ltd. How to cite Functional Areas of Business, Essay examples Functional Areas of Business Free Essays Depending on the size of organization, functional areas may be directed by specific departments with upper management, mid-level and front line managers. In comparison, a small business is often managed by one leader only, who’s responsibilities overlap. Management The management role includes more than simply being in charge of employees. We will write a custom essay sample on Functional Areas of Business or any similar topic only for you Order Now Instead, this position coordinates and oversees the work of others, ensures organization goals are accomplished, and ensures the business success. Furthermore, managers monitor the efficiency and effective use of employees because workers are the most important resource f an organization (Stephen Robbins, 2010). Managers also oversee and control functions that are not obvious, but play a crucial role in the company’s success. Law is the legal aspect of business that effect business and small firms. Managers use business law to ensure operations are legally sound, noncompliance with all state, federal and international requirements, and regulations to help solve problems. Human resources or short HER address concepts of personal development throughout employee’s lifestyle. During the hiring and training process human resources have a high importance. For proper compensation and if disciplinary actions are taken (Stephen Robbins, 2010). A large role for managers plays the aspect of leadership which covers different ways to influence employees to achieve organization goal, inspire and motivate, handle conflicts, as well as power struggle and organizational change. Accounting maintains and audits financial aspects of a business that is separated into financial and managerial accounting. Financial accounting studies the creation of financial statement, for example, income statements and balance sheets. Managerial accounting looks at statements and helps make decisions, including budgeting for upcoming projects and control cost within the firm (Stephen Robbins, 2010). Finance addresses the process of setting up and maintaining the fiscal success of the firm including revenue. Finance is useful for managers in many ways, especially when needing fund for new business venture. The study of production, distribution and consumption of goods and services within countries and individual firms are a part of economics. It is used to maximize profits and to Andre market conditions, for example, recessions (Stephen Robbins, 2010). Leaders collect data and use methods as well as static to interpret them to find out important information about their business as part of research and statistics. This fiction will help make decisions on what business practices to continue to use and which ones to modify in the future. Operations management is devoted to increasing the value of the firms supply chain. This function is used to ensure that the process f getting goods and service is smooth and error free (Stephen Robbins, 2010). Marketing interests the end consumer in a product or service and to keep this client happy. Such technique is used to determine which product or service to offer, the type of advertising and creation of a good image of their brand. Strategic planning is applied to ensure origination’s goals are met. Marketing helps bring all aspects of the firm together and ensures the company’s success (Stephen Robbins, 2010). The Journal of Enterprising Communities: People and Places in the Global Economy addresses why small business, with between five to went employees, Often fail to grow. Most times, the difficulty directly relates to the little or no knowledge of growth requirement and organizations barriers. A SOOT analysis, which included strength, weaknesses, opportunities, and threats, allows leaders to develop a company goal as well as an action plan on how to reach it. According to Perks, â€Å"Small businesses that grow during their flirts four years of establishment more than double their chance of survival (Perks, p. 21, 2010). Omnipotent view of management states that managers are directly responsible for the organization’s success as well as failure. Actions and decisions of leaders are directly related to an organization’s success. Well performing leaders adjust and maximize chances, improve bad performances, as well as manage the company. Therefore, managers are compensated for the business’ success with stock options, incentives, ores. On the other side, upper management is believed to be responsible when profits are down and then fired or replaced by new managers (Stephen Robbins, 2010). Symbolic view of management describes the failure and success of companies impacted by external influences that are outside of leader’s ability to control. This view is arguing that managers have little control over external factors for example customers, economy, competitors, decisions of previous leaders and others. Managers have only symbolized influence and control by creating action plans, and limited influence of failure and success according to this view. Conclusion Whether in a small or large company, managers oversee a wide range of functions to ensure the success and high performance of all areas. 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