Managers are made from within the company or recruited from outside to serve the organization. A manager must have skills of knowledge of the functional area he is handling, administrative skills, and must have the ability to get the work done.
Functional managers are managers who have the responsibility for a specific, specialized area, called a functional area. Their job is to organize and supervise the individuals and tasks in their specialized area. These functional areas include: marketing, finance, production and man power management (Human Resource Management). Managers are allocated functions and head the areas based on the skills they possess.
The term marketing means working with the markets to actualize potential exchanges for the purposes of satisfying human needs and wants. It is a social and managerial process by which individuals and groups obtain what they need and want by creating, offering and exchanging products of value with others. A marketing manager should ideally involve himself in the process of planning, pricing, promoting and distributing goods, services and ideas to satisfy customers and organizational objectives. Marketing work in the customer market is formally carried out by sales mangers, advertising and promotion managers, marketing researchers, customers and service managers and brand (product) managers. A marketing manager must be capable enough to take initiative of launching the organization’s products as per the need.
All organizations can be viewed as production systems. A productive system is the means by which resource inputs can be transformed as outputs (in the form of products and services). Products are tangible and can be carried around, whereas services are intangible and perishable and are consumed in the process of their production. Since this function produces the goods and services, it typically involves the greatest portion of the company’s employees and is responsible for a large portion of the firm’s assets. Customer service, product or service delivery and quality issue are all production activities. In this function the production manager can also look into the possibilities of energy savings and in concert with maintenance ensure preventive maintenance and continuous production without any break down.
This function deals with the procurement and allocation of funds, investment decisions, financing decisions and dividend decisions. Finance managers determine the best financing mix, that is, the selection of optimum proportion of equity and debt capital for the firm. They also make decisions on how to invest these funds and generate surpluses. Another important decision is the formulation of dividend policy to determine the amount of surplus or profit to be retained by the firm and the amounts to be distributed. The function of finance also covers the various accounting methods and systems such as financial accounting, cost accounting, budgetary control, and standard costing. The finance manager can make out accounting statements simple to read and understand.
Human Resource Management:
Manpower or human Resources involves both employers and employees. Manpower management refers to direction and control of people in the employment situation. Overall, the activities in manpower management include organization for personnel administration, recruitment, selection and placement, performance appraisal, training and development, wage and salary administration, employee benefits, health and safety, working hours and working conditions and labor management relations. Training and Recruitment also forms part of the functional area of this manager.
General Managers are managers who have responsibility for a whole organization or a substantial sub-unit that includes most of the common specialized areas. In other words, a general manager presides over a number of functional areas. A small company will usually have only one general manager, who is the head of the entire organization. A large company may have several general managers, each of whom usually presides over a major division. Sometimes plant managers with major responsibilities and who have some accounting, human resource and other staff members reporting to them are also called general managers.
Project managers are managers who have responsibility for coordinating efforts involving individuals in several different organizational units, all working on a particular project. Because the individuals report not only to the managers in their specific work units but also to their project manager, these managers usually must have extremely strong interpersonal skills to keep things smooth. Project managers are frequently used in high technology firms to coordinate projects. They are also used in consumer oriented companies for activities like launching new products.