The Responsibilities of

Functional Area Managers

The Responsibilities of Functional Area Managers

Version 04-18-2008
When we look at an organization chart, we cannot help but notice the CEO at the top of the
diagram. Most people instinctively understand that this is the person responsible for the entire
organization and that it must be a difficult and demanding position. Less is understood about
the positions that hold the responsibility for the functional areas. When we look at a company
like the one in our cases study, Zilack Corporation, we see many different areas of
responsibility represented by Production and Operations, Accounting and Finance, Human
Resources, Sales and Marketing and Information Technology. Each of these groups has
specific roles and responsibilities that support each other and ultimately determine if the
company goals are achieved. Here is a closer look at each of those functional areas.
The CEO of Zilack Corporation, James Zilack Jr., has established a company goal of doubling
sales in one year. For the company to meet that goal each functional area will have to
consider many different issues. For example, sales and marketing will need to find new
customer and markets for Zilack production. An international sales force may need to be
developed and additional sales people hired. Advertising and promotions will need to be
created to drive consumer demand. What kind of resources will be required, what will the
message be and who will the target customer be?
Production and operations will need to double annual production. If the company is now using
one production line, a second line will be needed. All of the equipment will need to be
purchased. Employees will have to be hired and trained to operate the new line. The
additional production will have to moved, warehoused and distributed. How will doubling the
volume impact the distribution function? Will a new global sales and marketing strategy
require the development of an expertise in international shipping?
Accounting and finance will have to prepare for a large volume of new customers. If the
company sells on credit, each new prospective customer will have to be evaluated before
opening a new account. Additional purchases will significantly increase accounts payable,
new vendors may have to be added and vendor accounts opened. More receivable and
payable clerks may need to be hired to handle the increased volume.
Information Technology Systems will face dramatically increased needs. Computing capacity
will have to be added to support not only the new employees but the enhance requirements of
accounting, purchasing production scheduling and sales and marketing. More technology and
increased security will have to be addressed.
Finally, there is Human Resources. All of the new employees will have to be recruited, hired
and trained. While existing employees will have to be retained. Hiring the right people and
placing them in the right positions will require human resources specialists trained to interview
candidates. Benefit specialists will be required to manage the increased demand. HR
generalists will be needed to develop and monitor the training and satisfaction of the new
employees.
Each functional manager has a specific role to play and responsibilities to perform. No one
functional area can succeed without cooperation and communication with the others. For the
company to succeed, the entire organization must be focused on the same objective. In the
case of Zilack, that means doubling sales.

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 The Responsibilities of
Functional Area Managers

More Information
• eBooks from Capella’s Library in the eBrary database
• Forbes online has charts of major companies

An Example Organization Chart is shown on the next page.

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 The Responsibilities of
Functional Area Managers

Zilack Corporation
Organizational Structure
Zilack Corporation is a medium-sized manufacturing
company with 250 employees. It directly markets one
product: the Zilack coffee cup with a patented ball bearing

Organizational Organizational Chart

Hierarchy

CEO
Executive

Functional Management
Operations Finance HR Marketing IT Systems

Department Managers
Department Department Department Department Departme
Manager Manager Manager Manager nt

Supervisors
Supervisor(s) Supervisor(s Supervisor(s Supervisor(s)
) )

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Operational
Employees HR Employees Employees
Production
Generalists
employees