Understanding Functional Management Areas
Businesses are comprised of a variety of different tasks which, when coordinated properly, create value through producing products and/or services. Each of these different tasks, or functions, require management and alignment. One approach to management is assigning leadership roles with authority and accountability over these different tasks, or management areas.
This view creates management positions with authority over a given functional department. These management areas can span a wide variety of skills and functions, but the most recognizable and common include marketing, finance, human resources, operations, software development, and IT.
This functional view emphasizes managers who are specialists in their fields who are also capable of leading teams, balancing budgets, and thinking tactically (and sometimes strategically, at the upper levels).
The Role of a Functional Management
Functional management is focused on the execution of a specific organizational task within functional areas, through organizing and leading an organization's talent in a given field. Functional managers have a high level of technical knowledge and skills relative to the area they manage and focus their efforts on achieving best practices.
Let's quickly explore an example of a functional manager to clarify the role and responsibilities. A human resources manager in an organization would be expected to oversee all operations within the scope of human resources. At a medium or larger sized organization, this could include managing specialists in payroll, recruitment, talent development, legal, and a variety of other specializations within the scope of a human resources team.
The manager shouldn't execute each specific task, but instead understand what is required to complete these tasks. The manager must have the broad technical knowledge required to ensure each individual within that functional team has the skills, resources, and alignment necessary to effectively carry out these functions.
Illustrating Functional Management
A simple way to understand how this all plays out in an organization is a simple organizational chart (org chart, as they are commonly referred to). By taking a look at how the departments are divided, it becomes fairly easy to assume what types of management areas exist from a functional view. As a result, it's fairly common to receive an org chart when you start a job (particularly at larger companies), to understand who reports to whom, and regarding what tasks.
Organizational Chart
This is a simple example of an organizational chart, in this case at an advertising agency. By looking at each functional area, and considering how it relates to broader functional areas, it becomes clear how management areas are divided from a functional perspective.