Functional Management

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NAME: AKINFENWA ALI OLADIMEJI

MAT. NO.: COT/1377/2015

DEPARTMENT: MARINE ENGINEERING

COURSE CODE: GSE311


Abstract
This is a feasibility study on the Roles of functional
management based on research work. It is focused on answering
the question on whether the functional management in
entrepreneurship is feasible or not. As per research work,
concerning this feasibility studies, there is no iota of doubt that
the role of functional management in entrepreneur is feasible.
This was arrived at through various research works on journals
etc. and consultations based on the subject.
Introduction
According to Robbins and Coulter study (2012), the
management concept can be defined as an individual who is
involved in the coordination and supervision of all work
activities of their employees to make sure that the assigned
activities were completed in an efficiently and effectively
manner. This efficient and effective aspect of the managerial
process requires that managers are doing the right thing within a
rightful nature (Robbins and Coulter, 2012).
However, the managerial part of the management process is
addressing Henry Mintzberg’s theory, which explains what
managers do at work through specific actions or behavioral
norms in order to manage their resources. In order to have a
better understanding the role of manager within an
organizational structure; then one should focus on the two
management types, such as a functional manager and project
managers. These management types are probably capable of
performing all facets of the managerial functions of planning,
organizing, leading and controlling in any organization (Robbins
and Coulter, 2012).
Functional management is the most common type of
organizational management. The organization is grouped by
areas of specialty within different functional areas (e.g.,
finance, marketing, and engineering). Some refer to a
functional area as a "silo". Besides the heads of a firm's product
and/or geographic units the company's top management team
typically consists of several functional heads such as the chief
financial officer, the chief operating officer, and the chief
strategy officer.[1] Communication generally occurs within a
single department. If information or project work is needed
from another department, a request is transmitted up to the
department head, who communicates the request to the other
department head. Otherwise, communication stays within the
department. Team members complete project work in addition
to normal department work.

The main advantage of this type of organization is that each


employee has only one manager, thus simplifying the chain of
command.

Role of a Functional Management


To know what the roles of a functional management are, the
functional manager needs to be identified.
Who is a Functional Manager:
A functional manager manages and owns the resources in a
specific department, such as IT, engineering, public relations, or
marketing, and generally directs the technical work of individuals
from that functional area who are working on the project. The
degree to which a functional manager is involved in the project
depends on the form of organizational structure.
In a matrix organization, the functional manager shares
responsibility for directing the work of individuals with the
project manager. In a projected organization, the project manager
does all of the directing. In functional organization, the functional
manager does all of the directing. It is the responsibility of the
project manager to avoid any conflicts with the functional
manager and coordinate the respective needs regarding the use of
resources to complete the project work.
The activities of a functional manager may include:
 Assign specific individuals to the team, and negotiate with
the project manager regarding resources
 Participate in the initial planning until work packages or
activities are assigned
 Provide subject matter expertise
 Approve the final schedule during schedule development
 Approve the final project management plan during project
management plan development
 Recommend changes to the project, including corrective
actions
 Manage activities within their functional areas
 Assist with problems related to team member performance
 Improve staff utilization
Besides the heads of a firm’s product and/or geographic units,
the company’s top management team typically consists of
several functional heads (such as the chief financial officer, the
chief operating officer, and the chief strategy officer). A
functional manager is a person who has management authority
over an organizational unit—such as a department—within a
business, company, or other organization. Functional managers
have ongoing responsibilities and are not usually directly
affiliated with project teams, other than ensuring that goals
and objectives are aligned with the organizations overall
strategy and vision.

Some of the major functional areas of management are as


follows:
It is also called operational management or functional areas of
management. As being management, a social and universal
process, its area is very wider. Inter disciplinary approach of
management widens the functional areas
There are five main functional areas of management viz., human
resource, production office, finance and marketing; which have
been discussed below.
Nowadays, some new and emerging dimensions are also
considered areas of management as: time management,
environment management, transport management, international
management, and forex management.
In time management, the emphasis is given on achieving the
target in minimum time. By the nature, only one thing time is
allotted equally to every creature as 24 hours in a day. But the
person, who knows the art of time management, ranks first.
Japanese time management is regarded best in the world.
In environment management, the efforts are made to check the
different types of industrial pollution viz., air, water and noise. It
is the responsibility of general manager to plan for congenial
ecology to plant, animal and human being. Transport
management is the specialized branch for arranging efficient and
cheaper transport facility.
In the age of multinational corporations (MNCs), the primary
concern of international management is with the management of
people, material and money of the international environment.
It is the extension of simple management process itself, but
across national frontiers. A manager while dealing with different
nations must take into account the legal, political, social,
economic and technical aspects in the global perspective. Forex
(foreign exchange) management is the application of
management principles for earning more and more foreign
money.
1. Human resource management:

Human resource development or personnel management or


manpower management is concerned with obtaining and
maintaining of a satisfactory and satisfied work force i.e.,
employees. It is a specialized branch of management concerned
with ‘man management’.
The recruitment, placement, induction, orientation, training,
promotion, motivation, performance appraisal, wage and salary,
retirement, transfer, merit-rating, industrial relations, working
conditions, trade unions, safety and welfare schemes of
employees are included in personnel management. The object of
personnel management is to create and promote team spirit
among workers and managers.
2. Production management:

Production management refers to planning, organization,


direction, coordination and control of the production function in
such a way that desired goods and services could be produced at
the right time, in right quantity, and at the right cost. Some
authors treat material, purchase and inventory management as
part of production management. Production management
involves the following functions:
(a) Product planning and development,
(b) Plant location, layout and maintenance,
(c) Production systems and machines,
(d) Management of purchase and storage of materials,
(e) Ensuring effective production control.
3. Office management:

Office management can be defined as, “the organization of an


office in order to achieve a specified purpose and to make the
best use of the personnel by using the most appropriate
machines and equipment, the best possible methods of work and
by providing the most suitable environment.”
The main topics of office management are: office
accommodation, layout and environment, communication,
handling correspondence and mail, typing and duplicating,
record management and filing, indexing, forms and stationary,
machines and equipment, O & M, office reporting, work
measurement and office supervision.
4. Financial management:

Financial management can be looked upon as the study of


relationship between the raising of funds and the deployment of
funds. The subject matter of financial management is: capital
budgeting cost of capital, portfolio management, dividend
policy, short and long term sources of finance. Financial
management involves mainly three decisions pertaining to:
1. Investment policies:

It dictates the process associated with capital budgeting and


expenditures. All proposals to spend money are ranked and
investment decisions are taken whether to sanction money for
these proposed ventures or not.
2. Methods of financing:

A proper mix of short and long term financing is ensured in


order to provide necessary funds for proposed ventures at a
minimum risk to the enterprise.
3. Dividend decisions:

This decision affects the amount paid to shareholders and


distribution of additional shares of stock.
5. Marketing management:

Philip Kotler views marketing as a social and managerial


process by which individuals and group obtain what they need
and want through creating and exchanging products and values
with others. American Marketing Association defines marketing
management as the “process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods
and services to create exchange that satisfy individual and
organizational objectives.”
The course content of marketing management generally
includes: marketing concept, consumer behaviour, marketing
mix, market segmentation, product and price decisions,
promotion and physical distribution, marketing research and
information, international marketing etc.
Modern marketing management is bridging the gap of demand
and supply through de-marketing, remarketing, over-marketing
and meta- marketing. Modern marketing, from societal point of
view, is the force that harnesses a nation’s industrial capacity to
meet the society needs and wants.
The main function of modern management is to organize human
and physical resources and direct them toward efficient
performance and higher productivity at the minimum costs. The
same line of thinking can be applied in various functional areas
viz., personnel, production, office finance and marketing.
Modern managers are the harbinger of cooperation, fellow
feeling, mutual understanding and growth.
METHODOLOGY: Online materials, textbooks and journals
DATA ANALYSIS
There have been zero criticism over the feasibility of functional
management role in entrepreneurship. No online information or
textbook has contradicted its feasibility but rather emphasizes on
its importance in an organization.
Conclusion
This study has examined the role of managers in a functional
area through the eyes of a functional and project manager. The
paper was able to address how each management type is capable
of handling the responsibilities when managing in an operational
business. This was done by comparing each manager roles in the
conceptual perspective, such as the interpersonal, informational
and decisional roles. The paper findings have provided the
necessary information on which management style is best suited
to accomplish functional roles, which consist of planning,
organizing, leading and controlling a large number of resources
in the operations management industry.

References
Dunn, S. C. (2001, June). Motivation by project and functional managers in matrix organizations.
Engineering Management Journal, 13(2), 3-9.
Pitagorsky, G. (1998). The project manager/functional manager partnership. Project
Management Journal, 29(4), 7-16.
Seet, Daniel. "Power: The Functional Manager’s Meat and Project Manager’s Poison?", PM Hut,
February 6, 2009. Retrieved on March 2, 2010.

"What are duties of functional manager". Ask.com. Retrieved 22 October 2014.

"The role of functional managers in Agile". AGILE MANAGEMENT BLOG. Retrieved 22


October 2014.

"Functional managers" (PDF). Fars.org. Retrieved 22 October 2014

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