Business functions
Most businesses have four main functional departments. These will be staffed by people
with specific qualifications and experience in the work of the functional areas.
Human resource management
Human resource (HR) management identifies the workforce needs of the business,
recruits, selects and trains appropriate employees and provides motivational systems to
help retain workers and encourage them to work productively. It also draws up contracts
of employment and covers the redundancy or redeployment of employees if these
become necessary. The aim of this business function is to manage human resources to
help the business achieve its overall objectives.
Finance and accounts
This function has responsibility for monitoring the flow of finance into and out of the
business, keeping and analysing accounts and providing financial information to both
senior management and other departments. Without adequate finance, no effective
decisions can be made within the other functional areas, so finance is a key division of
any business.
Marketing
This department is responsible for market research and for analysing the results of such
research so that consumer wants can be correctly identified. This information will then
be discussed with other departments of the business so that the right product decisions are made.Once a product is available for sale, the marketing function will have to make
important decisions concerning its pricing, how and where to promote it and how to
sell it and distribute it for sale.
Operations management
Once known simply as the ‘production function’, operations management has
responsibility for ensuring adequate resources are available for production, maintaining
production and quality levels and achieving high levels of productive efficiency. This
function is important in service industries as well as traditional manufacturing. In service
industries, operations management will have the objective of ensuring that the processes
for the delivery of the service are well tested, consistent and understood by all employees.
Interrelationship of functions
It should not be assumed that all business decisions taken within these departments are
separate and unconnected to the other parts of the business. Nothing could be further
from reality! Effective strategic decision-making develops from the functions working
closely together. Good communication, cooperation and close interrelationships between
functions are essential before major decisions are taken. 

Through the exploration of four interdisciplinary concepts: creativity, change, ethics and
sustainability, this course empowers students to explore these concepts from a business perspective.
Business management focuses on business functions, management processes and decision-making in
contemporary contexts of strategic uncertainty.

Business Management for the IB Diploma