Financial Issues, Marketing Function and Human Resources in Management - Essay Example

Identify the main issues in the Management of the Financial, Human Resources and Marketing Functions that a Manager must apply when planning for development. A few important issues that a Manager should consider before planning for developments are Financial Issues, Marketing Function and Human Resources. These issues are very much important, whether one is starting a new Business or expanding a good running business; these issues are very much important and, therefore, they should be studied deeply for future plans as all the future plans depends mainly on these issues. As we all know studying these important issues is a job of a Manager, who is responsible for either profiting a firm or running the firm in loss, for both the reasons a manager is mostly held responsible. The functions of manager are, more or less, the same irrespective of the nature (whether manufacturing, commercial, or service providing organization) and size of the organization. Though there is no consensus on the list of the functions of manager, the content of the management functions have remained the same. The functions of manager are: 1. Planning: This refers to deciding now what is to be done in the future. It bridges the gap between the present and future. 2. Organaising: Organising refers to the process of grouping the related activities and assigning them to a manager with authority to supervise it, organizing is an essential function that makes the plans operational by identifying and classifying necessary activities. 3. Staffing: As certain how many positions are there in the organization and at what level. Once this information is available, the next task is to collect details such as what type of candidates is required for each position, and accordingly, fill up these positions with the right people. Staffing is a process which includes recruitment, selection, training, placement, appraisal, promotion, and career planning. 4. Directing: After filling the positions in the organization with the right kind of people, the next task is to guide and enable them to achieve the common goals. It Includes; (a). Leading: It is a decisive function of the management in which the workers employees are led and directed so that the objectives of the organization will be successfully achieved. (b). Motivating: It is one of the most important processes which are stimulating the employees to perform more effectively using their abilities and full potential. (c). Communicating: It is a process of creating, transmitting, and interpreting messages, ideas, facts, options and feelings. (d). Coordinating: It is a process of measuring the current performance of the employee and assess whether the given objectives are achieved or not. Now we shall discuss about the issues in the management which a manager should consider and study deeply when planning development, we will begin with the financial issue which should be considered first as no firm can run nicely without enough finance. Financial management is a service activity which is associated with providing quantitative information, of financial nature and that this may be needed for making economic decision regarding the choice among alternative course of actions. Financial management is that specialized function of a general management which is related to the procurement of financial and its effective Utilization for the achievement of the goal of the organization. In the past few years financial management has undergone significant changes as regards its scope and coverage. As such the role of finance manager has also undergone fundamental changes over the years. Profit maximization is not considered as basic idea for making investment and financing decision. The financial management of a firm has to make three important decisions. (1) Investment decision i.e., where the invest funds and in what amount. (2) Financing decisions i.e., where to raise the funds from and in what amount. (3) Divided decision i.e., how much to pay as dividend and how much to return. In order to make these decisions rationally, the management must have a clear understanding of the objectives which are sought to be achieved. The goal of financial management is to maximize the value of the firm. Proper finance is the intact key to the success of any business enterprise. Usually financial management performs the functions of 1. Finance for business promotion (which is one of our issue), 2. Finance management for optimum use of firm, 3. Use of co-operation in business activities, 4. Useful in decision making, 5. Determinant of business success, 6. Measurement of performance, 7. Basis of planning, coordination and control, and 8. Use to share-holders and investors. The business cannot run efficiently or be promoted if it does not adequate finance to meet its requirements. The financial requirements of business can be classified into two categories. (i) Short-term financial requirements, and (ii) Long-term financial requirements. Short term funds are required for meeting working capital needs. They are usually required for a period up to one year. They are raised from sources which can provide funds only for a short period quickly and at reasonable cost. The long-term funds are required to a great extent for meeting the fixed capital requirements of the business. They are required for a period exceeding one year. They are some times classified as (i) intermediate or Medium-term funds and (ii) long-term funds. The former category includes funds required for a period between 1 and 5 years, while the later category includes funds required for a period exceeding 5 years. Some other important issues which should be considered when planning for development are using of Accounting Standards i.e. applying higher level of accounting theories and principles for calculation of accounts, one should use theories and principles recommended IASB & FASB for better results. These are some of the Financial Issues which should be given consideration when planning for development. Among all the factors of management, it is the human factor that is very Dynamic, and this is to be care fully identified, developed, nurtured and honed to achieve organizational goals. Particularly during the 1990's, the economic changes compelled the industries to get more competitive and the industries realized that focusing on the human resource factor is a better strategy to gain clear edge over others, more so in times of survival and expansion. Human Resource Management is the process of managing the human resources of an organization in tune with the top management. HRM is strategically driven process. HRM functions in the most of the Multinationals medium scale and small scale industries include the following: 1. Empowering employees and institutionalizing employee involvement 2. Focusing on productivity and team building. 3. Developing flatter organizational structures. 4. Developing a more people-sensitive management style and organizational culture. 5. Developing human resource information systems. 6. Strengthening of organisational communications. 7. Evaluating self-appraisals and providing feedback. Managing human resource is one of the key functions of business organization. In the recent years human resources managements has become a pervasive and influential approach to the management of employees in market-oriented economies. Human resources management encompasses several concepts and functions of management with respect to human resources both at micro and macro levels in an organization. The related concepts of personnel management, industrial relations, and most widely referred functions of human resources development. Without HRM, the organization is like a blind person. In other words, the HRM function sets the direction for the Organization to perform better. Its contribution can be observed form the following list which is only inclusive, but not exhaustive, of benefits. (a) It ensures that the right person is selected for the right job. (b) It develops the human resources through continuous training and development. (c) It increases employees' productivity. (d) It enhances the employee commitment to the organization. (e) It ensures the right kind of work culture in organization. This is first step to ensure discipline in the organization. As we have discussed earlier among all the factors it is the human factor which should be given a little more consideration and if an organization is growing or expanding it is logical that it requires more skilled people for work and it is the responsibility of the higher level management to see that write person is their for the right job and whether for large firm or middle firm or small firm HRM is very much important and the above factors should be considered and applied whether a firm going to develop or not. If the HRM is done nicely then a firm goes on top because every thing depends on the people working in the organization and they should be given all the legal resources they require which will be helpful to the organization in one or the other way. Now we move on to our last but also very important function which is Marketing Function. Marketing can be defined as the management process that identifies, anticipates and satisfies customer requirement profitably, it can also be defined as the human activity directed at satisfying human needs and wants through an exchange process. The concept of marketing is choosing and targeting appropriate customer, interacting with those customer, positing our offering, controlling the marketing effort and continuity of performance. Marketing planning is necessary because of systematic futuristic thinking by management, better coordination of company effort, development of better performance standards for control, sharpening of objectives and policies and important of all better be prepare for sudden new developments, in all the above factors managers should have a good sense of participation. Some important points a manager should keep in mind before planning are; should not blindly rely on statistical and mathematical calculation, we should use our judgment too; past trends can never be exploited into the future forever. Another important issues a manager should keep in mind is Marketing Environment and Competitor Analysis, this can be done by 3 methods SWOT Analysis, PEST Analysis and 5 forces Analysis. We shall discuss these 3 in short; SWOT analysis can be defined as internal and external analysis Strength (internal), Weakness (internal), Opportunities (external) and Threats (External), by the names itself we can tell about this analysis. Second is PEST analysis; Political factor, Economic factor, Socio-culture factor and Technological factor. Above all these factors some other important factors which a manager should always keep in mind are; Buyer behavior, development of new Technologies and distribution of their product in market. These factors should be given consideration when one is planning for development or starting a new business. Conclusion: The conclusion for this assignment can be very simple. In this assignment we have studied the issues in the management of Financial, Human Resources and marketing function that a manager should consider and must apply when planning for development. These issues are not very much familiar with the issues considered when planning for starting a new business. The main point here is whether starting a new business or developing an old one all the necessary and important issues should be deeply studied and verified. Reference: Aryasri, Dr.A.R. 2004. Management Science. New Delhi: Tata McGill publication. Aryasri, Dr.A.R. 2003. Managerial Economics and Financial Accounting. New Delhi: Tata McGill publication. Ishaq, M. 2004. Financial Management. Hyderabad: Sure Publication. Ishaq, M. 2004. Marketing Functions. Hyderabad: Sure Publication. Read More