In this era of cut-throat competition, demands of various interest groups are rising day by day, and to satisfy them is the utmost priority of the organisation for its survival and growth. So, every organisation needs effective and specialised managers to perform their functions. So, this is known as Functional Areas of Management.

It is divided into three categories : 

1. Functional areas of business management 

2. Functional areas of non-business management 

3. Emerging functional areas of management. 

1. Functional Areas of Business Management :

• Production Management: This is concerned with planning, organising, directing and controlling the activities related to production function in an organisation, with a view to produce goods or services efficiently and effectively.
• Financial Management : “Finance” is the blood for any organisation, it is the most important thing to manage the finance/capital of the organisation, and this is known as Financial Management. It includes capital management, issuing and raising of funds, making investments that can give a longer term profit, etc.
• Personal/Human Resource Management : Among the three resources of an organisation needed (land, labour, capital), human resources is the only active resource that manages the non-active land, capital in an effective and efficient manner. This is known as H.R. Management. It includes hiring of the right person at the right place, selection, training, development, performance appraisal, etc.
• Marketing Management : It includes the sale of finished goods, performing the market research analysis of market demand, customer satisfaction, selection of distribution channel and managing the 4 Ps of markets i.e. product, price, place, promotion. This is known as Marketing Analysis.

2. Non-business Management Functional Areas:

• General/Public Utilities Management : It includes services like water, power, gas, transport, communication, medical services etc. in its scope.
• Environment Management : It deals with the environment or protection of the environment. Checking and preventing pollution, maintaining ecological balance, pollution control and environment protection is the major responsibility of the government, society and industries.
• Education Management : It deals with development of teaching-training facilities, its expansion and related activities.
• Security Management : This area of management involves activities like formation of military organisations, their operations and control, so that our national security remains intact.

3. Emerging Functional Areas:

• Management of public enterprises
• Maintenance management 
• Investment and portfolio management 
• Entrepreneurship management 
• Small business management
• Farm management 
• Wholesale and retail management
• Safety and risk management.