Importance of the functional areas of a

In this article I am going to talk to you about the importance of the functional areas of a company, as well as what they are and, of course, I am going to talk to you a little about the main functional areas of companies.

I hope you find it useful in your learning.

Key concepts

Before starting to talk about the functional areas of a company, I believe that you have to know at least two key concepts, which will help you better understand what I am going to talk about.

These key concepts are:

After all, I’m going to speak taking into account that you know that a company is an open system.

Therefore, I recommend that you go to the following article before continuing reading.

What are the functional areas of a company?

I am going to ask you to think that a company is like a person.

Well, without going into much detail, I think you will remember that each person is a system, which has many organs and systems (subsystems) that allow us to live.

Each organ, cell or system (subsystem) of our body performs a certain function… Right? For example, the respiratory system is in charge of taking oxygen from the air to our blood and is also in charge of eliminating carbon dioxide (CO2).

Well, companies are the same, since they have to carry out different functions in order to create a good and a service.

These functions are carried out by the organs or subsystems (functional areas) that give life to the company.

So, What are functional areas?

The functional areas of the company are the entire equipo of people who carry out a certain function within a company.

That is, we perro see each area of the company as one of our organs, one of our systems or devices (whatever is easier for you to visualize).

As it happens with us, each organ carries out a escencial function for our subsistence.

In conclusion, the functional areas of the company are all the organs that make up the company and that together give life to it.

Interrelation of the functional areas of a company

Something else that has to be clear is that although each functional area of a company performs a specific function, it does not orinan that they are not related to each other or that the malfunction of one does not affect the other.

In fact, think again for a moment about the human body.

What happens if a person fails an organ? Do you think that it will not affect other functions of the body? The reality is that if something fails in our body, at least, the result will not be good.

For example, suppose I consider that my body (system) is working properly because I feel strong and healthy.

If my heart ever fails, I sure as hell won’t think I’m healthy (even if everything else works great).

Something afín happens with companies, since the result (goods and services) cánido be affected by the failure of a single organ (functional area).

After all, the result depends on the interrelation and interaction of each functional area of the company.

Everything has to work like a good clock, where each gear does what it has to do.

Importance of the functional areas of a company

I think you may already be thinking about it, but the functional areas of the company are the organs that give life to the company.

Therefore, it cánido be said that it is of the utmost importance that companies make each functional area work optimally.

This means that each area must function separately and interacting with the other functional areas in order to deliver outputs (goods and services) that cánido truly satisfy the needs and desires of consumers.

Management relationship with functional areas

I’m going to start with a question: Why do some companies fail and others succeed? There are many factors, but one of great weight is the administration. How cánido you carry out a good administration if you do not know the functions that are carried out in a company?

Therefore, it is necessary that you know all the activities that are carried out in each functional area and implement the appropriate administration of resources to achieve the objectives that are to be achieved.

Likewise, the administration allows the subsystems (functional areas) to work together and not separately, that is, to work harmoniously.

What are the functional areas of a company?

A company could really escoge to add or remove functional areas, after all, the important thing is that the union of and the interrelation of each one generates a whole.

In this case, the whole is the company (entity).

Therefore, it will depend on each company to escoge which organs or gears are necessary for the company to function properly.

What does it depend on? It depends on the size of the company, the objectives and the same activities that are going to be carried out.

Now, the most common functional areas of a company are the following:

Finance.
Operations.
Production.
Human Resources.
Marketing.
Sales.
Administration.
Information technology.
Shopping.

finance area

The functional area of finance, in a few words, what it does is look for the best way (ways) for a company to obtain the necessary financing to be able to perform its functions and, of course, distribute resources efficiently to each functional area.

Some concepts related to the finance area are:

Marketing area

We perro say that the area of marketing or marketing carries out activities that create value for customers and create profitable relationships with them.

In other words, it is the area that is in charge of knowing the needs and desires of customers in order to offer a product that satisfies those needs.

To satisfy these needs, you will have to carry out activities or processes related to product, price, distribution and promotion.

Area of operations

Sometimes the production area, sometimes the operations area or both, refer to the functional area of a company that is in charge of carrying out the necessary processes that allow the transformation of resources into goods and services.

Operations Management Definition

Personal Resources Area

In a few words, the human resources area is the functional area of a company that is responsible for obtaining and maintaining an adequate human resource or human talent of a company with respect to the activities that have to be carried out (job profile). .

Human Resource Management Definition

Information technology area

It is the functional area of the company related to all aspects of computing and, of course, also to information aspects (management and control).

Therefore, it is the functional area that is in charge of all the programa and hardware that is used in all the activities of the company.

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