Question

1.what are the four functional areas of business management?

Explain how businesses are affected by those decisions.

Please explain cognitive and affective conflicts, and how are those affect teams?

2.What is SWOT? Please explain which of a company’s characteristics does a SWOT analysis compare?

Answer 1

1. The four functional areas of Business managements are defined below:

Production - This area deals with the production of the products and services of a business which will be provided to customers in the future. The basic purpose is to convert raw material into finished goods so that it can finally be sold in the market or a price .

Marketing - The basic purpose of this function is to create awareness about the products and its functions to the potential customers. It also includes sales of the products to the end consumers. Marketing function is required to ultimately communicate to the potential customers and convince them to buy it. The ultimate profit generation is through this function only.

Finance - This function of a business deals with the financial or money related instances of the organization or business. It keeps track of the incoming and outgoing money and creating and auditing the accounts of the organization. They also make decisions for the various financial situations at the organization. For example - Increasing debt.

Human Resource - Employees are the important part of a business and Human Resource is a business function which deals with the nuances of every activity related to the employee working in an organization. It includes hiring, firing, onboarding, training etc.

Cognitive conflict - This is also defined as a task focused conflicts. In this type of conflict, two parties under conflict are arguing and exchanging views vigorously however, there is a tow way communication. The goal is to find the best possible solution and alternative perspectives are considered as value adding. It is a conflict which results in positive outcome. Teams get into a learning mode in this type of conflicts arising. They get to work together in the problem and an open discussion is entertained. New ideas are entertained and innovative solutions arise.

Affective conflicts - This is a relationship kind of conflict in which personal views let people get in blaming and unhelpful behaviors. The mindset is "You are the problem." Negative emotions are prevailing in this type of conflict and the winning is for its own sake rather than a best possible solution of the conflict. It results in a negative outcome. Teams get into a conflict mode and individuals start to get others blamed for one or another problem. Teams lose sync and negative consequences are achieved. No innovative solutions are possible.

2. SWOT Analysis -

SWOT is the abbreviated form of Strength, Weakness, Opportunity and Threat of the organization which is being analyzed using this tool.It is a strategic planning technique which is helpful in identifying strengths, weaknesses, opportunities and threats to any organization.

SWOT identifies basically two characteristics of an orgnanization:

a. Internal Characteristics - These can be controlled by the organization. Strength and Weaknesses are the internal characteristics.

b. External Characteristics - These are controlled by the external environment. Opportunities and threats are the external characteristics.