Exotech | In an organization or company, management is an important part that cannot be ignored. You could say, management is the heart of a company. Because its function is so important, management needs to be divided into several parts or areas of management.
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This section is known as the management sector and is tasked with organizing elements so that the company can run well. Each area is equally important and has different functions from each other. In the business world itself, there are at least 5 known fields of management.
1. Production Management
Production management is one of the management fields in a company or organization. The main function is to manage several factors, namely resources, capital and skills to add value to goods and services.
Some activities in the field of production management are:
- Planning the production system includes the allocation of human resources, materials, machines, methods and models that may be needed to produce goods and services in the next period.
- Controlling the production system includes designing and determining SOPs (Standard Operating Procedures) so that every process that is passed complies with applicable regulations for quality assurance.
- Supervise production, including controlling and establishing communication with each element so that the production system runs smoothly and according to plan.
The role of production management is quite important considering that this field is responsible for the quality of the goods or services produced. The existence of this field is mandatory for every company so that the main goal is achieved, namely making profits and increasing sales figures.
2. Marketing Management
As the name suggests, this field of management is related to the promotion and distribution of goods or services in a company. In practice, marketing management is tasked with increasing company profits through sales, bringing in new customers and expanding the target market.
Like production management, the marketing management function is quite important. The activities in this field include:
- Market research and surveys: In practice, those in the field of marketing management will conduct research to identify consumer dynamics so that companies can produce goods or services that suit customer needs.
- Marketing planning: Marketing planning activities include determining targets and market segments, deciding what methods will be used, and preparing marketing tools as needed.
- Marketing analysis: This activity is carried out to find out market opportunities and what obstacles will be experienced when the production results are released. From the activities carried out during marketing analysis, production management will get an idea of how to create product innovations that will be able to compete and overcome all existing obstacles.
- Product promotion and sales: This last activity is the core of the existence of marketing management. The main goal is to increase product awareness and introduce consumers to the advantages of the goods or services sold by the company.
Looking at its functions and activities, it is not surprising that marketing management is always in contact with parties outside the company to collaborate. The parties involved usually operate in the print, electronic or digital media sectors.
3. Personnel Management
The main activity of personnel management is allocating, training and developing human resources (HR) based on the needs of each section in a company. Its function is, of course, to increase employee productivity and performance.
In contrast to other areas of management, personnel is always associated with HRD (Human Resources Development). So, is personnel management the same as HRD?
Even though the management element that is managed is the same, namely HR, in reality these two things have different scopes of work. HRD tends to focus on HR and all their needs. Meanwhile, personnel deals with all administrative issues that support HRD functions.
4. Financial Management
In a company, the main objective of financial management is to regulate the balance of incoming and outgoing funds. These efforts are made so that the company value can increase and experience profits. The main elements of this field are funds and sources of funds.
In practice, financial management activities include:
- Use of funds, namely investment activities in various assets
- Obtaining funds, namely the activity of obtaining sources of funds from both internal and external sources of the company
- Management of funds in the form of assets must be managed as efficiently as possible
Meanwhile, the functions of financial management are:
- Financial planner in a company
- Party who budgets finances
- Financial manager
- As a searcher for new sources of funds or utilizing existing sources of funds for company operational activities
- Financial storage
- Financial controller
- As financial examiner (entitled to conduct audits)
- Party who reports the company's financial condition to accounting management as evaluation material
5. Accounting Management
The last area of management is accounting. This management is closely related to financial management. If management and circulation are part of financial management activities, then recording and analysis are the main targets of accounting management.
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The function of accounting management is to ensure that every incoming and outgoing fund is always recorded and in accordance with the budget. This is why those who work in the field of management accounting must be involved in collecting data routinely over several periods.
The recording method used is systematic enough to ensure that the reports produced are valid. In the field, financial management activities in a company include:
- Collection of information and data over a daily, weekly or monthly period.
- Systematic data recording and storage is easy and safe. The information in it can usually only be accessed by a number of people with a certain level of position in a company.
- Grouping data neatly based on certain categories depending on company needs. For example, based on character, class, account, and so on.
- Preparing periodic reports to determine the company's financial condition. Report results usually show whether a company is experiencing progress or setbacks.
- Interpretation of data and comparing it with financial conditions in previous periods or with other companies. As a follow-up, improvements will be made in areas that are considered to be factors in declining financial conditions.
Conclusion
Each area of management has a function that cannot be denied. Its existence is always needed as part of the success or failure of company management. This is why management science does not seem sufficient if it is presented in theoretical form alone. Applying management directly in a company can be a source of useful knowledge, especially for those of you who really want to enter the managerial field.