THE DIFFERENT FUNCTIONAL AREAS OF

MANAGEMENT
CAMPAIGN MODE
Topic Discussion

Subtopic 1: Human Resources Management

Human resources, also known human capital, drive the performance of organizations along with
other resources; hence, understanding the HRM functions of management is very important. These
include:

Conducting job analysis. Job analysis is the process of obtaining information about jobs needed to
achieve the organization’s goal/objectives by determining the duties, tasks, or activities involved in
jobs. Job analysis data maybe gathered through interviews, questionnaires, observation, and
diaries. They may also be collected through position analysis, and competency-based analysis.
Decision-making regarding job-related problems is done objectively by analyzing the requirements
of each job.

Planning labor need and recruiting. It is important to determine the number and kind of people that
may be attracted for employment. External recruitment enables the organization to fill job openings
with special qualifications and to employ persons with new knowledge, skills, values, ideas, and
perspectives. Internal recruitment may also be done if management finds it more advantageous to
promote or transfer present employees to fill the available job openings. Recruitment from within
company is said to be less expensive as existing employees no longer need extensive orientation
programs.

Selecting candidates for the job. This involves the matching of people and jobs. Job specifications
help identify the person-job fit and identify their competencies, their knowledge, skills, abilities, and
other factors that may lead to excellent performance. Managers may use different selection
methods such as interviews, psychological tests, and calling references, among others. Orienting
and training new employees. This is done in organizations so that they could contribute to the
achievement of their organizational goals/objectives. The phases involved in this function are:

• conducting needs assessment of the organization, of the person, and of the task/work;
• designing the training program by considering the institutional objectives, the trainees’
readiness and motivation, and the principles of learning;
• implementation of the training program for non-managerial employees using on-the-job
training, apprenticeship training, cooperative training, internship, government training,
classroom instruction, and e-learning; and
• evaluating the training program in order to determine effectiveness, considering reactions,
learning, behavior of the trainees, return on investment (ROI) or results, and benchmarking.

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Managing compensation pay. Compensation or pay represents a reward received by employees
in exchange for their contributions to the achievement of organizational goals. In doing so, pay
equity must be considered. It must be fair and just, acceptable to all concerned parties, and
commensurate to the value of the work performed. It is important as it determines job performance
motivation of workers.
Providing incentives and benefits. Incentives are generally based upon a pay-for-performance
philosophy which means that a performance “threshold” or baseline performance level must be
reached by an employee or group of employees in order to qualify for incentive payments.
Examples of individual incentives are bonuses, merit pay, and sales incentives. Group incentives
include team compensation, Scanlon plan, and improshare. Enterprise incentives are profit sharing,
stock options, and employee stock ownership plans. Benefits, on the other hand, include social
security, workers’ compensation, health care and medical educational assistance, vacation leave,
sick leave, life insurance, retirement benefits, and travel benefits. It is important that incentives and
benefits programs be based on specific objectives compatible with the organizational philosophy
and policies and the organization’s financial standing.

Evaluating employees’ performance. Appraisal of employees is done on a regular basis to find out
who are doing their jobs well and who are not. The purpose of such evaluation is administrative and
developmental. Administrative purposes include: to aid in decision-making regarding employee’s
pay and promotions, transfers or layoffs, which are based on them achievements and performance.
The developmental purpose of appraisal is the use of results for discussing employees’ strengths
and weaknesses and for listing down performance improvement needs.

Communicating. To be effective, managers must have good communication skills, both oral and
written and information technology proficiently. This is necessary to receive and disseminate
pertinent information needed by all organization members in carrying out activities that will lead to
the achievement of company goals/objectives. Besides carrying out internal communication,
managers must also have good communication with customers, suppliers and other stakeholders
in the external environment. Communication may be hindered by barriers and breakdowns in the
communication process. Identifying these barriers and learning how to listen well will facilitate both
understanding and managing process.

Developing employees. Programs should be designed to meet the special needs of employees
which will prepare them for future jobs or roles that they maybe be assigned to do. These may
include: graduate studies, cross training, which refers to the process of developing employees to
do multiple jobs within an organization; or ethics training, the process of developing employees’
moral judgments that will help them determine right and wrong behavior which they could use in
jobs that require more decision-making functions.

Building employee commitment. This is another important function of HR practitioner which will
bind them to engage in activities that will ensure the achievement of organizational goal/objectives.
This must be followed by employee accountability or accepting responsibility for one’s actions.

Providing good working conditions. This includes giving a clear statement of the company’s
mission, vision, goals, and objectives; offering a good compensation and benefits package;

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 preparing a well-ventilated, well-lit, and pollution free work area for employees; and practicing
ethical management styles.
Handling grievances and industrial relations. When differences arise between labor unions and
management, these are usually settled through the grievance procedure, wherein the feelings,
needs, and desires of both parties are aired. Managers must try to master the art of handling
grievances and industrial relations to bring peace in their organization. Again, it must be
emphasized that satisfied workers are more motivated workers, which in turn, makes them more
effective and efficient in performing their assigned tasks; thus, they hasten the attainment of their
company’s set goals/objectives.

Importance Of Human Resources Management

Human resource management deals with the management of people– the most important
business resource. Money, materials, and information resources are not capable of moving the
business activities without the aid of the primary performance drivers, human resources.
Therefore, mastering the activities involved in human resource management (recruitment,
selection, placement, training, and development) is a must since all other management activities
(planning, organizing, staffing, leading, and controlling) could be done easily if organization
managers practice proper human resource management.

Figure 1. Activities involved in human resource management

Subtopic 2: Marketing Management

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 As marketing expert Philip Kotler puts it, marketing management “is essentially demand
management.” This is because it involves “influencing the level, timing and composition of demand”
so that an organization may reach its goals.

The marketing management functions of management include the following:

Analyzing, planning, implementing, and controlling of goods, services, and ideas to create
exchanges that satisfy customer needs and company goals. Analyses of demand management
starts with the gathering of data through marketing research. Activities under marketing planning
include decision-making on target markets, market positioning, product development, pricing,
distribution channels, physical distribution, communication, and promotion. The implementation of
the marketing plan is formally carried out by sales managers, salespeople, advertising and
promotion managers, and customer service managers.

Controlling refers to monitoring of the marketing plan’s progress. Goals and budgets are set for
each month or quarter. A review of the results follows in order to identify business that are not
attaining their goals. Managers of unsuccessful businesses must explain what the problem is and
propose contingency plans that the management has to take in response to such negative
developments.

Management of marketing resources. Marketing resources include salespeople, advertising, and

marketing research.
a. Management of salespeople involves inculcating the establishment of satisfying
long-term relations with customers, suppliers, and distributors in order to help their
long-term preference and business. Good marketers and able to maintain win-win
relationships by seeing to it that they always deliver high quality, good service, and
fair and reasonable prices to the key parties that they deal with over a long period
of time.

Figure 2. The marketing mix is an important consideration in marketing management.

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 b. Management of advertising. Although used less frequently than sales call in business markets,
it is still important in marketing. In can perform different functions such as: build awareness; build
comprehension of the good features of the product or service; remind prospective customers
about the product; provide the company’s contact information to customers; and lead to customers
to get in touch with sales representatives.
c. Management of marketing research. This involves identifying the seven characteristics of good
marketing research:

1. the principles of the scientific method are used;

2. research creativity is practiced by using innovative ways to solve marketing problems;
3. multiple methods of research are used in order to adapt the method of the problem;

4. interdependence of models and data which recognize that data are interpreted from underlying
models;

5. value and cost of information is concerned with estimating the value of the information against
the cost which helps the marketing research department determine which projects to prioritize;
6. healthy skepticism enables researches to show a healthy questioning of the hurried assumptions
made by the managers about how a market works; and

7. ethical marketing research which is concerned with research that benefits both the sponsoring
company and the consumers; self-serving results may mislead consumers to buy the company’s
product which, in reality, is not good or effective.

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Analyze, plan, and implement marketing programs that aim to b ring about an expected level and
mix of business deals with target markets. It is important that analysis and planning precede the
implementation of the marketing program, in order to ensure that its aim will be achieved. Strategic
planning for individual business entails defining the business mission, analyzing the business’
external and internal strengths and weaknesses, and formulating goals and strategies. In doing so,
the implementation of the marketing program will go smoothly and the chances that it will achieve
its aim of bringing an expected level and mix of business deal with target markets will be increased.

Stimulate demands for the products of the company. This is achieved by influencing the level,
timing, and composition of demand, bearing in the mind the attainment of the company’s
objectives.
Make crucial decisions that will ensure the company’s competitiveness. These are decisions
regarding target markets, development of products, distribution of goods, market positioning, and
setting the right prices for their products.
Make sure that marketing techniques employed are efficient, effective, and socially responsible or
ethical. Marketing managers and their team members must balance their own best interests (big
sales commissions, recognition, or promotion) with the best interests of their company, consumers,
and society.

Importance Of Marketing Management

Marketing management is important because it is the key to organizational attainment, customer
satisfaction, and profit gain. With major marketing management processes – planning, execution,
pricing, and promotion and distribution of goods, services and ideas to create exchanges with
target groups – satisfying customers and achieving organizational goals will not be possible.

Subtopic 3: Operations Management

Business managers today focus on productivity, technology use, quality of goods and
services, customer satisfaction, and speed. They are conscious that they need to innovate on their
processes and activities in order to succeed in a highly competitive globalized market. Because of
these needs, the operations management functions of management must include the following:

a. Overseeing the transformation process that change resources into finished goods and
services. In order to do this, managers must address resource acquisition inventories, facilities,
workflows, technologies and quality. In doing so, productivity and competitive advantage will be

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 ensured as they accomplish the multiple processes that transform the various resources – in the
form of people, material, equipment, and capital – into quality finished products and services.
b. Improve of productivity and competitive advantage. Productivity measures the efficiency by
which inputs are turned into outputs. The basic equation for productivity is:

productivity = output / input

Competitive advantage is the competency of an organization to outperform a competitor or

competitors. To ensure productivity, work processes must be subjected to complete analysis and
redesigned, if necessary, through process engineering. Other ways to ensure productivity are
process value analysis and reengineering. In process value analysis, all elements of a process and
their workflows are analyzed to be able to know their contributions to key performance results.
Reengineering discards work steps that are not needed, combines other work steps, uses
technological know-how to reduce costs, and ensures efficiency and effectiveness. Competitive
advantage follows when organizations improve their productivity.

Figure 3. The-Plan-Do-Check-Act cycle is one of the methods that may help

managers improve business processes and production.

c. Managing the sequence of activities and information along the whole course of the value
chain. Proper management of these activities and information results in the creation of finished
products and services that have value to customers. Elements in an organization’s value chain
include inflow of resources and materials, organizing or resources and materials, creating goods or
services, distributing finished products or services, and serving of target customers.

IMPORTANCE OF OPERATIONS MANAGEMENT

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Through the study of the essentials of operations management, businesses of different types and
sizes may increase their chances for survival and success in today’s business environment which is
characterized as highly competitive and fast-paced in producing quality products and services.

Subtopic 4: Financial Management

Gaining profit is the main goal of businesses. To attain this goal, managers must practice
good financial management and this, of course, starts with understanding the financial
management functions of management. These functions include:

Taking charge of the company’s financial policies and strategies, investments, capital
structures, and divided policies. Financial managers of organizations must formulate sound
financial standing plans that will communicate broad guidelines for their financial decisions and
strategies. These plans include typical financial policies that address the organization’s
investments, capital structures and dividend policies. Investment policy covers choice of product
lines and capital projects. Capital structure policy covers a working capital policy (for the balancing
assets and liabilities) and leverage policy (for balancing long-term financing). Dividend policy
considers the use of either a systematic pattern of earnings retention or dividend distribution.
Financial management and control. The management and custody of the organization’s funds also
include control which gives an assurance that funds are properly utilized in order to provide for all
the organization’s needs. Examples of financial standard management and control practices by
organizations are the following:

➢ project management, which makes sure that long-term projects are implemented
according to previously planned budgets and checks if these have yielded forecasted cash
returns
➢ working capital management, which includes cash, accounts receivable, and inventory
management
➢ cash management, which gives an assurance that there is enough cash balance that maybe
used for daily operating needs, that idle cash in invested through marketable securities, and
that proper cash control are instituted
➢ accounts receivable management, which ensures the optimization of accounts receivable
investments and the formulation of sound credit evaluation and collection procedures
➢ inventory management, determines inventory levels by making maximum use of trade-off
between inventory carrying cost, ordering cost, and lost sales opportunities; it also
institutes good stable inventory control procedures
➢ fund sources management identifies short-and long-term funds that may be available and
transacts and keeps watch of credit facilities with banks and other financial institutions.
➢ dividend policy implementation determines the form and amounts of dividends and
schedules their payment

Financial planning. Financial planning is the process of setting financial objectives and determining
what should be done to accomplish them. This includes financial forecasting, financial analysis, and
financial performance evaluation.

Financial forecasting involves:

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 1. Cash budgeting – a forecast of cash needs and sources

2. Profit planning – a forecast of revenues and expenditures

3. Balance sheet forecasting – considers future assets, liabilities, and the organizations net worth
position

Financial analysis involves:

1. Capital budgeting techniques – involves the assessment of long-term investment

2. Operating leverage analysis – critically examines cost-volume profit relationship

3. Financial leverage analysis – studies the effect of debt on income to the organization’s common
stockholders.
Analysis of pricing and cost of products, materials, supplies, and production/manufacturing also fall
under financial analysis.

Financial performance evaluation refers to the assessment of financial ratios to indicate to the
overall performance of the organization, as well as the assessment of market-wide financial
indicators.

Importance Of Financial Management

Financial management facilitates the choice investments, financial policies, and operating
mechanism of the organization in order to effectively achieve its goals and objectives. It includes
maximizing its profits as well as those of its shareholders and stockholders. In doing so, financial
managers are able to maximize the wealth of the organization and its shareholders/stockholders
and satisfy other goals like providing good customer service, minimizing bankruptcy risks, and
actively participating in present societal concerns.

To accomplish the abovementioned functions that give importance to financial management in

organizations, control techniques, that measure the company’s financial soundness, management
effectiveness, production and service efficiency, and human resource attitudes and morale must
also be considered. These include the following:

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Break-even chart – is used by the
organization’s financial management
planners and accountants to identify how
the various sales levels affect the income
and profits of the firm. The break-even
point is the level of operations which shows
equal income and expenses incurred by the
company.

Figure 4. Break-even chart

Financial statements – include income statement, balance sheets, and cash flow statements which
are carefully analyzed.

Financial ratios – make use of the above-mentioned financial statements to determine the
formulation of a series of ratios that will, in turn, determine of the company is stable or unstable.
Strong or weak and on the road to bankruptcy; examples of such ratios are rate of return on capital
invested, rate on return of assets, and rate of return on sales, among others.

Another functional statement used in financial management that also emphasizes its importance
is the organization’s budget. This states the amount of money that the company will spend and
receive during a future period of time. At the end of the period of operations, actual expenses and
budgeted amounts are compared to see whether that the company has operated under or over
budget. Difference allow management to examine specific expenditures and the reasons behind
such. Managers and department heads will then be forced to quantify their sales objectives and
other company targets because these must be expressed in pesos and not in general statements
or hopeful or optimistic expressions. Budget preparation in financial management, therefore, is
important in management decision-making, and this must be prepared well on a regular basis by all
organizations.

Subtopic 5: Material and Procurement Management

Material Management

Materials management is a function, which aims for integrated approach towards the management
of materials in an industrial undertaking. Its main objective is cost reduction and efficient handling
of materials at all stages and in all sections of the undertaking. Its functions include several
important aspects connected with material, such as purchasing, storage, inventory control,
material handling, standardization, etc.

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Scope Or Functions of Materials Management

Materials management is defined as “the function responsible for the coordination of planning,
sourcing, purchasing, moving, storing and controlling materials in an optimum manner so as to
provide a pre-decided service to the customer at a minimum cost”.

From the definition it is clear that the scope of materials management is vast. The functions of
materials management can be categorized in the following ways:

1. Material Planning and Control

Material planning is a scientific technique of determining in advance the requirements of raw

materials, ancillary parts and components, spares etc. as directed by the production program. It is
a subsystem in the overall planning activity.

2. Purchasing

Purchasing is an important function of materials management. In any industry purchase means

buying of equipment, materials, tools, parts etc. required for industry. The importance of the
purchase function varies with nature and size of industry.

3. Store Management
Stores play a vital role in the operations of company. It is in direct touch with the user departments
in its day-to-day activities. The most important purpose served by the stores is to provide
uninterrupted service to the manufacturing divisions. Further, stores are often equated directly
with money, as money is locked up in the stores.

4. Inventory Control or Management

Inventory control is a planned approach of determining what to order, when to order and how much
to order and how much to stock so that costs associated with buying and storing are optimal
without interrupting production and sales. Inventory control basically, deals with two problems: (i)
When should an order be placed? (Order level) and (ii) How much should be ordered? (Order
quantity).
5. Standardization
Standardization means producing maximum variety of products from a minimum variety of
materials, parts, tools, and processes. It is the process of establishing standards or units of measure
by which extent, quality, quantity, value, performance etc., may be compared and measured.

6. Simplification

The concept of simplification is closely related to standardization. Simplification is the process of

reducing the variety of products manufactured. Simplification is concerned with the reduction of
product range, assemblies, parts, materials and design.

7. Value Analysis
Value engineering or value analysis had its birth during the World War II Lawrence D. Miles was
responsible for developing the technique and naming it. Value analysis is defined as “an organized
creative approach which has its objective, the efficient identification of unnecessary cost – cost
which provides neither quality nor use nor life nor appearance nor customer features.”

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Value Analysis focuses engineering, manufacturing and purchasing attention to one objective-
equivalent performance at lower cost. Value analysis is concerned with the cost added due to
inefficient or unnecessary specifications and features. It makes its contribution in the last stage of
product cycle, namely, the maturity stage. At this stage, research and development no longer make
positive contributions in terms of improving the efficiency of the functions of the product or adding
new function to it.

8. Ergonomics (Human Engineering)

The word ‘Ergonomics” has its origin in two Greek words Ergon meaning laws. So, it is the study of
the man in relation to his work. In the USA and other countries, it is called by the name ‘human
engineering or human factors engineering.’ ILO defines human engineering as, “The application of
human biological sciences along with engineering sciences to achieve optimum mutual adjustment
of men and his work, the benefits being measured in terms of human efficiency and well-being.”
The human factors or human engineering is concerned with man-machine system. Thus, another
definition which highlights the man-machine system is: “The design of human tasks, man-machine
system, and effective accomplishment of the job, including displays for presenting information to
human sensors, controls for human operations and complex man-machine systems.” Human
engineering focuses on human beings and their interaction with products, equipment facilities and
environments used in the work. Human engineering seeks to change the things people use and the
environment in which they use the things to match in a better way the capabilities, limitations and
needs of people.

9. Just-in-Time (JIT)
Just-in-Time (JIT) Manufacturing is a philosophy rather than a technique. By eliminating all waste
and seeking continuous improvement, it aims at creating manufacturing systems that is response
to the market needs. The phase just in time is used because this system operates with low WIP
(Work-In-Process) inventory and often with a very low finished goods inventory. Products are
assembled just before they are sold, subassemblies are made just before they are assembled, and
components are made and fabricated just before subassemblies are made. This leads to lower WIP
and reduced lead times. To achieve this organizations, have to be excellent in other areas e.g.,
quality.
According to Voss, JIT is viewed as a “Production methodology which aims to improve overall
productivity through elimination of waste, and which leads to improve quality”. JIT provides an
efficient production in an organization and delivery of only the necessary parts in the right quantity,
at the right time and place while using the minimum facilities”.

Figure 5. Scope of Materials Management

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Importance Of Material Management

The importance of material management:

1. The material cost content of total cost is kept at a reasonable level. Scientific purchasing helps in
acquiring materials at reasonable prices help in controlling cost content of products.

2. The cost of indirect materials is kept under check. Sometimes cost of indirect materials also
increase total cost of production because there is no proper control over such materials.

3. The equipment is properly utilized because there are no break downs due to late supply of
materials.

4. The loss of direct labor is avoided.

5. The wastages of materials at the stage of storage as well as their movement is kept under
control.

6. The supply of materials is prompt and late delivery instances are only few.
7. The investments on materials are kept under control as under and over stocking is avoided.
8. Congestion in the stores and at different stages of manufacturing is avoided.

Subtopic 6: Procurement Management

Procurement management is the strategic approach to managing and optimizing

organizational spend. It involves acquiring quality good and service from preferred vendors within
stipulated budget on or before deadline. The procurement management process includes sourcing,
requisitioning, ordering, expediting, inspection, and reconciliation.

Steps In the Procurement Process

Procurement involves much more than just handing over the company credit card and paying for a
purchase. And effective procurement strategy includes everything from identifying which goods
and services a company needs right through to maintaining the right documentation and records.

Overview of the procurement process:

1. Identify which goods and services the company needs
2. Submit a purchase request

3. Assess and select vendors

4. Negotiate price and terms

5. Create a purchase order

6. Receive and inspect the delivered goods

7. Conduct three-way matching

8. Approve the invoice and arrange payment

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 9. Recordkeeping

Keep in mind, how a company shapes its internal procurement process will be influenced by factors
like the company’s size, industry, available human resources, and organizational structure.

Importance Of Procurement in A Business

Procurement is important in business because it directly impacts a company’s profit. For an
organization to be profitable, the cost of procuring goods need to be less than the amount it sells
those goods for, minus whatever costs are selling them. In addition, procurement is linked to
several core business functions within an organization. So, it should always be considered critical
part of nay organization’s corporate strategy. To understand this, consider how procurement can
influence the four pillars of corporate strategy.

• Corporate Identity
o What does our company do and stand for?

o What beliefs inform our business model?

• Market Placement
o Who are our customers?

o What do they want?

o What do they believe?

• Company Capabilities

o What are our strengths and weaknesses?

o Does our strength support our long-term goals?

o How do we want to grow?

• Management Issues
o Do we need to hire/develop talent to lead us to our goals?
o Does the company have the resources needed to achieve our goal?

Procurement touches on each of these components. For instance, procurement and corporate
identity intertwined. If your business is building (or has built) its identity around an environmentally
conscious ethic, then your procurement strategy should reflect that decision. Policies should be in
place to ensure you are sourcing from companies with similar ethics, or that your sourcing materials
that are not environmentally hazardous.
A company’s procurement strategy should also be shaped with its market placement, company
capabilities, and management issues in mind. The company needs the right people in place to put
into action the beliefs/philosophies you want your business to be governed by. Dealings with
vendor should reflect company philosophy.

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Subtopic 7: Office Management

Office management refers to the process of planning, organizing, guiding, communicating,

directing, coordinating, and controlling the activities of a group of people who are working to
achieve business objectives efficiently and economically.

Office management is not only necessary to business organization but also essential to non-
business organization. In modern internet society also, there is a need of direction to the individual
effort towards common purpose or objective. The direction is given from a place i.e., office.

The process can be treated as office management. A business is carried on by businessman with
the help of group of persons. This group of persons has different interest, talent, and motto. So, it
is the function of office management to organize, guide and control the activities of such group or
persons to achieve business objectives.

Elements Of Office Management

Elements of office management are termed as pillars of a building. If pillar is strong, certainly, the
building is also strong. Hence, efficient functioning of office management is based on the elements
of office management.
1. Personnel

Office personnel are performing the office work. Generally, the selection and placement of office
personnel is carried on by the office manager in small organization. In large organization, staffing is
carried on by the human resource management department. In both the case, the office work is to
be performed by allocating the work to each individual according to their efficiency, guide the
personnel to do the work with the help of means available in an office within a specified time and
control the activities of office personnel. The office manager has to do all these activities.

2. Means
Means refers to tools used to perform the office work. Means include pen, pencil, eraser, paper, ink,
office forms, typewriter, computer, printer, calculator, and the like. Adequate tools have been
supplied in an office and put them to the most efficient and economical objectives.

3. Environment

The nature of business determines the environment of an office. The various office works have to
be carried on under a particular condition or environment. A working environment is created and
maintained for the smooth performance of office work. It is the duty and responsibility of an office
manager to bring suitable environment by adopting various procedures and practice.
4. Purpose

The office personnel must be aware of the purpose for which a particular work is carried on and the
impact of such work on others’ performance. The office manager teaches the purpose office
personnel. If not so, the performance of office work does not bring the most efficient and
economical use of office resources and achieve the objectives.

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Importance Of Office Management

The following points highlight the importance of office management:

1. Achievement of goals

Office management helps in increases office efficiency, smooth flow of work, maintaining public
relations, minimization of cost, managing change and accepting the new challenges which help in
achievement of goals of the organization.

2. Increases office efficiency

Office management focuses on office activities and helps office in economical way.

3. Smooth flow of work

Office management helps in performing efficient and effective office work. It helps in proper
planning and effective control office.

4.Public relations
There must be a good public relation of the organization. The main purpose of public relation is to
make the organization look trustworthy to all people who deal with it in all its action. It helps in
increasing the goodwill of the organization.
5. Minimization of cost

Office management guides the use of capital, natural, financial, human and other resources
effectively without leakage and wastage which helps in minimization of cost.
6. Managing change

Office management helps in implementation of plans in right time and right way. But there may be
change in resources, need, technology, preferences and so on which make it necessary to bring
about the change in plans. Office management makes the office flexible which helps to manage the
change.

7. New challenges
In an office, to achieve goals, many challenges should be faced. It helps in improving the research
and information system. It helps in managing all the rigid matters.

Subtopic 8: Information and Communication Technology Management (ICTM)

Management in the 21st century is driven by information and communication, and digital
network. Computers quickly provide more information to a greater number of people, groups, and
organizations than ever before. Hence, the study of the information and communication
technology management (ICTM) functions of management is relevant. The ICTM functions of
management include the following:

Developing the organization’s hardware, software, and other computing and communicating
technology. Information Technology (IT) encompasses different kind of technology, such as
different types of hardware (e.g., computers and printers), software (e.g., operating systems), and
computing and communication technology (e.g., telecommunications and management of

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 databases). The fast and ever-changing nature of ICT requires managers to become flexible and
open to change.
Developing the organization’s management information system (MIS) tailored to the needs of
the firm’s unit. IT has developed management information systems which gather, process,
disseminate internal and external information to the company on a timely basis order to support
managers in their tasks. Electronic equipment makes fast and reasonably priced processing of
voluminous amounts of data possible. The computer can process data and provide logical
conclusions and classify and prepare them for use in decision-making.

Encouraging e-commerce through Internet use. Through e-business strategies, the company
gains competitive advantage over competitors. Common e-business strategies involve business to
business (B2B) and business to customer (B2C) transactions. B2B transactions use IT and web
portals to link companies with members of their supply chains and those dealing with their resource
supplies. B2C transactions also use IT and web portals, but in this case, the link created is one
between the company and its customers. A common example is e-tailing or the sale of goods
directly to customers via the Internet. Other web-based business models are brokerage, which
brings buyers and sellers together; advertising, which provides information while generating
revenue from advertisements; merchant model, or selling products through the web; subscription
model, the selling of access to a website; infomediary model, the collecting of information on users
and selling it to other businesses; and the community model which supports websites by asking for
donations from users.

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS
 Importance Of Information Technology and Communication Technology Management

Figure 7. E-commerce transaction

The widespread use of ICT has brought about the emergence of a “knowledge-based society” due
to easy access to information at low costs through the Internet. Management may use it for its
different managerial functions. It may be used for scenario planning or identifying future scenarios
in the business environment, which may need careful planning; decision-making through the use of
information generated by IT; aiding team work; facilitating productivity measurement; easy, low-
cost communication; worldwide selling through the Internet; and many others. It may be said,
therefore, that ICT has revolutionized the business world.

Mhykaela Bautista | LAGUNA STATE POLYTECHNIC UNIVERSITY- SAN PABLO CITY CAMPUS