The
modern business is subject to fast changes. It is increasing in size, number
and form with the passage of time. The main functions performed by a modern
business, in brief, are as under.
#1) PRODUCTION FUNCTION:
The
main function of a business is to produce goods and services that satisfy human
wants and sell them at profit to the consumers. The process of raising crops,
removing materials from mines, forests, manufacturing raw material into semi
finished or finished goods to satisfy the requirements of consumers etc, fall
under production. In the present age of mass production and specialization, only
that business will survive which makes the best use of resources (in puts) produces quality goods and sells
them at competitive prices in the market.
#2) FINANCIAL FUNCTION:
Another
important function of a business is to secure finance to operate it. A
continuous supply of funds in required running the business. Basically, there
are two sources of raising funds 1.Owner’s capital 2.Borrowed funds. A business
can carry on its operations with its own resources or can avail of both the
sources for meeting its working and fixed capital requirements. Nowadays most
of the big business is carried on by joint stock companies and they raise their
capital mostly through the issue of shares.
#3) MANAGEMENT FUNCTION:
In
modern business of today, human resources management is considered very
essential. Management is the process of getting things done through others. Management
is principally the task of planning, coordinating, motivating and controlling
the efforts of others towards a specific objective.
#4) INNOVATION FUNCTIONS:
In
the modern days of competition, innovation is the life blood of business. The
innovation function is based on two elements 1.individuals should be encouraged
to create new idea and 2.communicate freely and criticize products and goods.
An organization needs new ideas to keep it healthy, stable and dynamic.
#5) ORGANIZATIONAL FUNCTION:
A
modern business should have a sound organizational structure. Sound
organizational help, in the elimination to duplicate activities of the
business, efficient use of specialized talent, economic use of equipment's,
economic in transportation and distribution, encourages product growth and
profit of the dynamic.
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#6) CONTROLLING FUNCTION:
The
purpose of controlling function is to examine the past and present activities
of business. If the manager finds, that the performance in his area of control
is falling from a standard, he takes quick action to correct it.
#7) MOTIVATING FUNCTION:
In
order to improve the overall performance in a business, it is essential that
the efficiency of the employees should be increased. Motivation is an important
factor which encourages employees to give their best performance and help in
reaching the business goals.
#8) RISK TAKING FUNCTIONS:
Every
business faces risks and uncertainties. Risk is caused by some unfavorable and
undesirable events. Some risks are such that they can be reduced but cannot all
be avoided. However, some risks can be shared with other through insurance. A
business manager, therefore, must determine the risks a business faces. He
should then find out the ways to guard against them.
#9) MARKETING FUNCTIONS:
Marketing
is a very important business function of 20th century. Marketing is
the performance of business activities that direct the flow of goods and
services from producers to consumers. Marketing functions include buying and
selling of goods, transportation and storage, risk taking, research, product
designing etc.
#10) SOCIAL RESPONSIBILITY FUNCTION:
In
the late 1980’s it was discovered that the nations are running out of clean air
and water in urban areas due to industrial expansion. It is now increasingly realized
that the business should share the social costs of pollution. The business
should play an active role in reducing ills of the society.
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