Areas of management

An organizational structure can also be divided more or less horizontally into areas of management. The most common areas are finance, operations, marketing, human resources, and admin­istration. Depending on its purpose and mission, an organization may include other areas as well — research and development, for example, or risk management.

A financial manager is primarily responsible for the organiza­tion’s financial resources. Accounting and investment are special­ized areas within financial 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.

An operations manager creates and manages the systems that convert resources into goods, services and a variety of non-business activities. A good per­centage of today’s company presidents was produced by financial and operations management.

A marketing manager 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.

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

An administrative manager (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 treating patients, finance, marketing, or human resources management but instead coordinates the activities of specialized managers in all these areas (3300).