Structure and Organisation – Functional Areas
As a company grows its management becomes more complex. It may be operating in more than one location or in multiple countries. Because of this, such businesses require an organisational structure. Businesses are often organised by functional/operational areas.
The following departments may be found in a company:
Human Resources
The human resources of a business are its people. In other words, the workers. Everything to do with the employment of all people working in the organisation is the responsibility of the human resources department. From recruiting the workers in the first place, training them, looking after their welfare, everything to do with the people within the organisation is part of this department.
Click on the link to see a video of Bethan Emanuel, Human Resources Manager explaining what she likes about working in this field. This video is available in Welsh.
Research and Development Department
This department is responsible for developing new goods and services as well as improving existing ones. By researching the market, a business will have useful information about what the customer needs and wants. The hope is then to come up with a product or service to meet that demand, leading to people buying the product.
Sales
The purpose of this department is to drive company sales. This will sometimes involve contacting the customer directly. You may have received such a call or email. The department will seek to forge relationships with customers to promote repeat sales and loyalty. You will sometimes see the department as a joint department with the marketing department.
Marketing
Purchasing
In order to produce items or offer a service, businesses will have to buy goods. This will usually be managed by the purchasing department. By having a centralised purchasing department, businesses can manage spending and ensure they keep to their budget.
Production and quality
If the business is in the secondary sector, it will be producing goods. This can involve producing goods from raw materials or converting components into finished goods. The production and quality department will manage this, from production and creation, to the processes that ensure the product is fit for purpose and of a satisfactory standard.
Finance
This is the department that looks after the money. It is essential that a business manages its money effectively. Not only is it necessary to ensure that more money is coming in than is going out in order to make a profit, but it is also necessary to make sure that the money is coming in and going out of the business at the right times. This is called cash flow.
Customer Service
You have probably heard the saying ‘the customer is always right’. This department is about ensuring that the customer is happy with the goods or services provided by the business. It also offers solutions when things go wrong with those products or services.
Information Technology
Businesses today could barely operate without information technology. Ensuring that the technology equipment and systems the business uses are suitable and functioning properly is the responsibility of the Information Technology department.
Administration
This department ensures that the processes of the business are administered promptly and methodically.