Identify the critical business functions and how they interact in order to position the organization to be effective in the current business environment
The management of the company performs a number of functions that ultimately lead to the success of the business. These functions are discussed as follows:
- Management: managers perform a myriad of functions that are tailored towards the attainment of organizational goals, objectives and target. These goals, objectives and targets ultimately determine the level and extent of organizational performance. The functions of managers comprise of planning, staffing, organizing, controlling and directing (Robbins & Coulter, 2005). By planning, managers set up goals and come up with strategies to accomplish them. Staffing involves ensuring that the organization has the required work force to implement the strategies adopted by the management team. Organizing is a function that entails the allocation of resources to the various activities that lead to company success. Managers establish controls to evaluate the extent to which the adopted strategies are impacting on the success of the company. Finally, managers through motivation and instructions direct the employees towards the achievement of organizational goals.
- Operations: all companies must offer a product to their customers in order to attract sales and thus make profit. A company can offer goods, services or a combination of both products to its customers (Vallabhaneni, 2008). The operations manager ensures that the company is able to offer a product to the market by facilitating the process of transforming inputs into outputs.
- Marketing: this can be described as the process of creating sales out of the finished products. Marketing managers ensure that the company is able to sell its output to their customers at the highest possible profit. They are also expected to expand the market for the company’s products by wooing potential customers. They also obtain customer feedback and inform the company about ways of better satisfying customer needs.
- Accounting: this is the process of recording, safeguarding, maintaining and dissemination of documents pertaining to transactions conducted by or on behalf of the company by its managers (Jones & George, 2011). Accounting managers ensure that financial reporting is done to determine the financial strength of the company.
- Finance: this function involves sourcing for the company’s funds. Finance managers plan where the company will raise its funds from and also manage such funds. They work with other functional managers to ensure that their budget estimates fall within the range of available funds.
Importance of the integration of individuals and systems to organizational effectiveness
The success of an organization depends on the how employees understand what is expected of them. The organizational system determines how various activities of the business are supposed to be conducted. Managers have to ensure that employees understand how the system works in order to carry out their tasks properly. Organizational success is therefore pegged on the ability of managers to merge the requirements of the system and the capabilities of the employees (Robbins & Coulter, 2005). Employees that meet the expectations of the system drive the organization to heights of goal realization.
Ethical and social concern issues for business
Ethics can be defined as the acceptable code of conduct in the society (Vallabhaneni, 2008). In business, ethics can be described as the act of conducting the activities of a business in a manner that satisfies the customers, employees and investors. The ethical issues that may confront a business include abiding by the rules and regulations that guide the business, competing fairly against the rivals of the business, being honest, and putting the interest of customers, employees and investors above personal interest.
Corporate social responsibility
It is important for companies to be socially responsible. Corporate social responsibility refers to the approach that is taken by an organization in managing its responsibilities toward different stakeholders concerning legal, socio-ethical, and economic matters. Socially responsible companies acknowledge that their actions have an impact on stakeholders. Managers are socially responsible to the following parties:
- Owners: they make investment and expect return on their money. Managers are expected to increase in shareholder’s wealth by ensuring profitability of the company. Managers have a responsibility to protect the assets and funds of the company against fraud and pilferage. This is because assets and funds add to the net worth of the company.
- Employees: managers have to ensure that the employees of the business work in a safe and healthy environment. Employees should also be remunerated properly for their services, treated equally and in a dignified manner (Jones & George, 2011). Compensation should be made for work-related injuries.
- Customers: the principal aim of the company should be the satisfaction of customer needs. This can be achieved by ensuring the safety of products, offering a variety of products and providing adequate information about the product.
- Communities: companies create job opportunities for the local residents. They should participate in locally initiated community programs on health, education among other social amenities. They should also pay taxes that are utilized to develop local facilities.
- Government: companies have social responsibility to abide by the laws set by the relevant authorities on behalf of government. They are also obliged to pay tax expenses due to the government.
Jones, G. R., & George, J. M. (2011). Essentials of contemporary management. Boston: McGraw-Hill/Irwin.
Robbins, S. P., & Coulter, M. K. (2005). Management. Upper Saddle River, NJ: Pearson Prentice Hall.
Vallabhaneni, S. R. (2008). Corporate Management. Hoboken, NJ: Wiley.