Functional Areas of Business

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Category: Business and Industry

Date Submitted: 12/17/2013 01:22 PM

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For a business to evolve and respond to rapid change, businesses are organized in different sectors of expertise; functional areas of business. The functional areas of business are organized by various functional areas and assigns responsibilities according to the department’s functions in response to becoming a global village and the fundamental shifts in the today’s economy. With each functional area of business, the role of a manager within that function varies. This paper analyzes the role of a manager within Human Resource Management as a functional area seen in a business environment.

According to Cascio (2005), in the 1990s Human Resources (HR) was not seen as an added value to the organization’s strategy. Today, HR is more visible in the organization’s long-term profitability and growth strategy. The chain of relationships that links to long-term profitability starts with HR’s effective management practices. Cascio analyzes that effective management practices drives employee and customer satisfaction which leads to profits and growth (2005). For this reason, it is imperative that HR maximize on skill set such as communications, problem solving, and critical thinking in order to respond employee expectations.

Depending on the size of the organization, the role of a manager in Human Resources varies. In smaller organizations, the roles and responsibilities may tend to overlap while in larger organizations the roles are more functional and defined. However, in all organizations, the role constantly changes to fit the changing needs of the organizations. For example, in the past the main functions of HR managers focused on administration as it pertains to employees and their benefits. While today, HR managers are developing system and process that addresses the strategic needs of the business as it relates to recruitment, employee retention, and all other aspects of managing talent (Cascio. 2005). Although the HR manager’s role is parallel to some...