Management Areas

An organizational structure can also be divided more or less horizontally into areas of management described below. Depending on its purpose and mission, an organization may include other areas as well – research and development, for example, or risk management.

1. ____________ is primarily responsible for the organiza­tion's financial resources. Accounting and investment are special­ized areas within this management. Because financing af­fects the operation of the entire firm, many of the presidents of the largest companies are people who got their "basic training" as fi­nancial managers.

2. _____________ creates and manages the systems that convert resources into goods and services. Traditionally, it is equated with the production of goods. However, in recent years many of the techniques and procedures of operations management have been applied to the production of services and to a variety of nonbusiness activities. Like financial management, operations management has produced a good per­centage of today's company presidents.

3. _____________ is responsible for the exchange of products between the organization and its customers or clients. Specific areas within marketing are marketing research, advertis­ing, promotion, sales, and distribution.

4. _____________ is in charge of the organiza­tion's human resources programs. He or she engages in human resources planning, design systems for hiring, training, and ap­praising the performance of employees, and ensures that the or­ganization follows government regulations concerning employ­ment practices.

5. _____________ (also called a general manag­er ) is not associated with any specific functional area but provides overall administrative leadership. A hospital administrator is a good example of an administrative manager. He or she does not specialize in operations, finance, marketing, or human resources management but instead coordinates the activities of specialized managers in all these areas.