Given the complex nature of the modern business organization, the internal elements of that organization are as important as the product or service that the business provides to the customer. Internal management functions guide the future of the organization and ensure that the daily business operations flow smoothly. With this in mind, this paper will explore the roles that three important management functions- Finance, Human Resources and Information Technology-play in the success, or failure, of all businesses.
Financial Management’s Role in Business In its most basic form, the purpose of any business is to take a given set of resources, foremost among them money, and put the resources to their best use to generate a return on investment (Miner, 2002). With this simple view of business as a starting point, the role that Financial Management plays in business is clearly seen. Taking this role to a higher level, interesting findings emerge.
A successful Financial Management entity in any business will not only generate the return on investment that was mentioned earlier, but will also make it possible for the business to realize financial gains to the point where the business can not only sustain itself in its present state of affairs, but also be able to grow in size and market share, thereby providing added benefits to the ownership of the business, the shareholders in the case of publicly owned companies, and stakeholders in the case of every company (Binder, 2003).
Without incentives for employees to put forth an exemplary effort in service of the company, and financial incentives are ideal for everyone, a company will usually suffer if not fail completely. In this sense, Financial Management dovetails nicely with the role of Human Resources Management in the organization. The Role of Human Resources Management If effective financial policies motivate the members of business organizations to rise to the challenge, than it can fairly be said that Human Resources Management must be effective to attract, retain and assist those organizational members in the first place.
Basically stated, Human Resources Management in its best practice is the process of recruiting, hiring, retaining and serving the needs of employees (Ramlall, 2003). Human Resources Management in modern business is vitally important from a variety of viewpoints. Competitively, businesses find themselves needing the most qualified employees they can find to perform job tasks at any skill level.
Therefore, the Human Resource Manager’s ability to identify the best qualified employees seeking a position within the organization is a massively important first step in the proper HR system. After these potential candidates are deemed to be qualified, at least upon first inspection, the HR Manager must then verify skill sets and experience. When the qualifications of workers are verified and they become contributors to the organization, the task of making sure that these workers remain at top productivity, and stay in the organization over the long term is crucial.
Meanwhile, employee benefits, incentives, motivation and much more also needs to stay in play to drive effective Human Resource Management (Megginson, 1972). Overall, Human Resource Management is the machine that drives the human element of the organization, which is of course the heart and soul of the business itself. All of this human interaction likewise thrives on communication and the effective use of information, bringing into focus the role of Information Technology Management.
Information Technology Management in Today’s Businesses Because of the literal boom in technology over the past several decades, the ability to gather, store and manipulate data has evolved beyond the imagination of even the most creative science fiction writer of the early 20th century. Transforming that data- piles upon virtual piles of statistics, facts and figures- into useful business information is the essence of Information Technology Management (Best, 2001).
Part science, part art, and total skill, IT Management allows businesses to change with the times and make the most of every opportunity. The management of IT, as was previously stated, is needed in order to create the databases that are used in all areas of business operation-from manufacturing and engineering, to human resources, to marketing and beyond. However, in light of the challenging political and economic climate of the 21st century, the role of IT Management in the security of company databases has taken center stage.
Protecting proprietary information from prying eyes and outright sabotage by the ever present “computer hacker” makes an effective IT Manager worth their weight in gold. One breach of IT security could be fatal for some of the more competitive businesses in existence today (Campbell, 2004). Conclusion This paper has shown the individual and collaborative value of several key management functions. Beyond these findings, in closing, let it be said that without the smooth interaction of the management units of any business, disaster in one form or another will surely follow.