Crucial Functions in a Business - Term Paper Example

? Crucial Functions in a Business Crucial Functions in a Business Administration and finance functions play a crucial role in ensuring the success of a business organization. Administration Function The administration function is a crucial support function necessary for the success of any business (Bosilj-Vuks?ic?, Indihar and Kovac?ic?, 2008). Administrators are involved in a wide range of activities related to budgeting and monitoring to recruitment of the new staff. Some of the routine administrative tasks involve opening mails, sending emails ands faxes as well as filing. In addition to the routine activities, other obligations require application of expertise and creativity such as staff meetings, arranging travel and important assignments, researching information and arranging crucial events such as sale conferences or interviews. The administration function is also involved in purchasing new hardware for the business and handling external customers who rate the business on the manner in which their inquiries are handled. Inefficient administration function is disastrous to the reputation as well as the company’s image. Issues such as lost orders, miscommunication of the messages, wrongly typed letters and wrong scheduling of meetings or interview may lead to loss of customers. Effective administration enables the management to concentrate on other roles necessary for business growth. Finance Function According to Finch (2010), the finance function is the most crucial segment of a business enterprise. This is because all departments in a business enterprise require financial resources for them to thrive. The staffs serving under the function records the financial inflow and outflow to enable the business managers identify the amount of profit that each department is making and be updated on the amount of money currently at the disposal of the business. This enhances accuracy in financial decisions as the information that is used is accurate and credible. Some of the roles of the finance department include production of invoices, confirming the receipt of payments, following up on overdue payments, financial recording, paying for the received orders, production of the annual statutory requirements, and preparation of payrolls as well as payment of salaries. The finance function is also involved in roles requiring expertise and skills such as monitoring of the departmental budgets in ensuring that the departmental heads are not mismanaging funds, regular issuance of departmental budgets, and production of regular financial reports for the managers as well as playing an advisory role to the senior managers on financial issues. Role of the Manager in Administrative and Financial Functions of a Business Role of Managers in the Administrative Function The administrative manager has a responsibility of overseeing the overall work performance of a business organization. The administrative duties of a manager include communicating the wishes of superior workers to the employees to ensure that the business plans function according to the plan. Hron (2001) asserts that the manager is obligated to make decisions through analysis of various situations and deciding on the most appropriate course of action. The manager will also be bound towards instilling discipline and coaching employees to improve their competency, improve their performance and eliminate those that do not contribute in helping the organization achieve its goals. The manager should also understand the selection and recruitment procedures required for choosing the most appropriate candidates for different roles within the organization. The manager colludes with the administrators in delegation of accounting, payroll and paperwork. Other essential administrative roles of a manager include application of the information systems in enhancing output and ensuring that the office environment is suitable for performance as well as provision of adequate support to other managers and departments. Role of Managers in the Finance Function Financial strategies are the foundation for a successful firm. The people obligated to manage the financial activities of a firm should be highly qualified because any incompetency may lead to business failure. The financial manager has the responsibility of conducting all the financial obligations of a company. The person in charge of finance function should be strategic to ensure proper utilization of the funds. According to Griggs (2003), the financial managers oversee the preparation of the financial reports, implementation of the cash management strategies and participation in the direct investment opportunities. The performance of the finance function is enhanced by the application of information and computer technology. The various duties of the managers in financial management are determined by their specific titles. Such titles include controllers, cash manager, risk and insurance manager, treasurer officer and credit manager (Griggs, 2003). The controllers guide the preparation of the financial reports such as balance sheets, income statements and other special reports for regulatory authorities. Controllers are also involved in overseeing accounting, auditing and budgeting departments. The cash managers are involved in directing the organizational goals, executing the capital raising strategies for the expansion of business enterprises, supervision of the change management strategies and presiding over mergers and acquisition (Finch, 2010). The credit managers presides over the credit activities of the firm through the establishment of the credit rating methodology, determination of the credit ceilings and monitoring the recollection of the past-due activities. The managers involved in management of the international finance preside over the financial transactions involved in international dealings. The flow of the cash receipts and financial disbursements in meeting the financial needs of the company are handled by the cash managers. The risk managers have the responsibility of implementing programs and strategies meant to minimize the losses and risks emanating from financial activities. In the financial institutions, the managers are obligated to perform the tasks peculiar to their organizations. For instance, the health care managers handle issues related to the financial problems affecting the delivery of health care services. The managers are obligated to be aware of the tax laws and regulations affecting the financial industry. Conclusion The most crucial segments of a business enterprise are the administration and financial functions. The current roles of the managers are currently changing with the changes in the changes in the technological dispensation which has eased most of their roles. For example, the time required for the production of financial reports has significantly reduced. All the organizational managers work as a team in provision of crucial information to the senior managers for advancing the firm’s operations. References Bosilj-Vuks?ic?, V., Indihar, S. M., & Kovac?ic?, A. (2008). Business process management and business intelligence as performance measurement drivers. The Business Review, Cambridge, 10(1), 338-343. Finch, B. (2010). Effective financial management. London: Kogan Page. Griggs, H., (2003). Management development does pay off in non-profit organisations, but they don't see financial management as a priority. Surfing the waves: management challenges, management solutions: proceedings of the 17th ANZAM Conference / editor: Alan Brown, 1-10. Hron, J. (2001). Roles of managers in businesses. Mer, 3, 98-101. Read More