Key Functions Of Business Operations

Key Functions of Business Operations

Almost every firm, government agency, and other type of organization employ one or more financial managers. Historically, businesses have been founded by inventors, salespeople, and technically-oriented individuals who have superior skills in their field, but little expertise in financial management. Though these businesses may be successful, owners often lack answers to several important questions: Is the profit I get from my business as good as that which I could derive from investing in other things? Am I being compensated for the risk of being in business, and for the time and skills I am applying? Financial managers oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. Managers also develop strategies and implement the long-term goals of their organization. All managers must understand the theory and principles of financial management because this knowledge will make them even more effective at their own specialized work. The two primary responsibilities of the financial manager are the treasurer and controller. The business's chief financial manager (treasurer) is responsible for the business's financial activities such as financial planning and fund raising, making capital expenditure decisions, managing cash, credit, the pension fund, and foreign exchange. The business's chief accountant (controller), is responsible for the firm's accounting activities such as corporate accounting, tax management, financial accounting, and cost accounting. The specific goals of financial management depend on the nature of the business because larger organizations have financial management or accounting with separate functions. There are internal as well as external pressures involving the roles and changes of the financial manager like too much detail or more demanding shareholders. Part of the reason for these pressures is the link between performance management and management behavior. Whenever management processes are designed to control performance through a plethora of targets, budgets, incentives, and measures, uninspired leaders or frustrated managers are not trusted to make financial decisions. Therefor it is left in the hands of the financial manager.

What is Operations Management? Operations management production of goods and services has been in existence since the evolution of civilized society, but here we limit our discussion to developments that led to the widespread production of consumer goods. Customers are the most obvious people who will be affected by any business. What the chapter goes on to call the five operations performance objectives apply primarily to this group of people. Prior to the development of markets for massive amounts of consumer goods, most production took place in the home or in small communities of artisans and craftsmen. Products were often handcrafted, unique, and made entirely by one person. Some people trace the development of the first factories to the textile industry in England. In preindustrial societies, people often prepared only enough goods for their families, along with a small excess to obtain items unavailable within the family (cottage industries). As land became scarce and people moved off farms and into cities, mercantilism and trade developed. This created a market for massive amounts of goods, like textiles, which previously had been produced from wool and linen available on the farm. They therefore centralized production by building factories this allowed for a much greater control over workers and production, a development that was soon to be lamented by those who saw the development of mass production factories as essentially exploitive of the poorest laborers. Employees will be generally better off if the company is prosperous; if only because they are more likely to be employed in the future. However operations responsibilities to employees go far beyond this. It includes the general working conditions which are determined by the way the operation has been designed.

Advertising/Marketing is the promotion of a business's products and services carried out primarily to drive up sales of the products and services. It is also done to build a brand identity and communicate changes in old products or introduce new product/services to the customers.