Manager Role: Duties and Qualifications, Essential Competencies
Functional managers are the backbone of every organization, managing crucial departments like operations, finance, marketing, human resources, IT, and logistics. They report to executive managers for their specific functions and play a pivotal role in meeting the strategic goals set by top brass.
The Crucial Role of Functional Managers
Functional managers aren't responsible for an organization's overall performance. However, they carry a strategic importance. They work towards the strategic objectives set by top managers, ensuring smooth operations in their respective areas.
For instance, financial managers oversee the company's financial health, handling cash inflow and outflow, making financial forecasts, budgeting, risk management, and investment direction. Mistakes in budgeting can lead to cost overruns, adversely impacting the company's bottom line.
Functional managers also supply vital information to top-level managers for well-informed decision-making. Besides, being closer to day-to-day operations and customer relationships, they generate essential ideas that become key strategies for the firm. Therefore, top-level managers should listen attentively to their insights.
Functional Managers vs General Managers
Functional managers occupy intermediate positions, connecting top-level managers with lower-level supervisors and foremen. In contrast, general managers are higher up the ladder, overseeing several departments like operations and marketing. They manage multiple functional managers, and their focus extends to the organization's overall performance.
Functional managers specialize in particular business functions like finance and operations. The responsibilities of a functional manager are generally confined to one organizational activity. Meanwhile, the general manager oversees the entire organization or division. Functional managers develop functional strategies to meet the strategic objectives set by general managers.
The Daily Grind for Functional Managers
The roles and responsibilities of functional managers vary depending on their work area. For example, a finance manager might prepare financial reports, create budgets, direct investment activities, and plan for the long-term financial goals. In contrast, an HR manager focuses on recruitment, selection, training, development, motivation, industrial relations, and personnel matters.
What Makes a Great Functional Manager?
While some companies require a bachelor's degree, others ask for more. Professional certifications like CPA for finance or HRCI and SHRM certifications for HR become highly relevant in their line of work. Essential skills for functional managers include:
- Communication and Interpersonal Skills: They should interact effectively with colleagues, team members, and top-level managers.
- Leadership Skills: Good leaders unite and motivate their team towards common goals.
- Conflict Resolution: Navigating through internal conflicts helps ensure a harmonious work environment.
- Effective Decision Making: Being able to make well-informed decisions independently is crucial.
- Critical Thinking: This skill aids in making sound decisions and judgments.
- Financial Management: This is a must for finance managers, but other managers need it too while creating project budgets.
Explore More
- The Importance of Middle-Level Managers
- Lower-Level Management: Roles and Skills
- General Manager: An Overview
- In the business world, a functional manager specializing in finance plays a significant role by overseeing the company's financial health, making key financial decisions, and providing essential information for strategic decision-making.
- Effective leadership and communication skills are crucial for functional managers, as they must work towards the strategic objectives set by top-level managers while managing their respective business functions like finance, HR, marketing, and operations, thereby contributing to the overall success of the organization.
