Business Functions within an organization

The report looks at different functions within an organisation. Human resources. Sales, marketing, research and development. Production, operations, customer service. Finance and Accounts. Administration and IT. The type of business and style of work.

Рубрика Менеджмент и трудовые отношения
Вид реферат
Язык английский
Дата добавления 23.02.2011
Размер файла 100,3 K

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Business Functions within an organization

This report will look at different functions within an organization.

It is helpful way to view a business as a system or, more specifically, as an overall system that can be viewed as a series of subsystems. Each of the functions of an organization should work in harmony to process resources successfully into final outputs. function business organization

Human Resources

The resource management or personnel function of an organization covers a variety of activities. Selection of the highly skilled staff is one of conditions of successful functioning of a business. That is why it is needed to make background checking during recruitment before employment of the worker for job. In the market of human resources employers cooperate with wage owners, forming total amount, structure and correlation of demand and supply on labour. Labour demand covers all spheres of social activities and includes both completed by workers, and free workplaces. Labour differentiation amplifies that the workers having identical age and occupation, differ on a sex, a state of health, quality of trade training, etc. Accordingly large companies has their own human resource department which might include a variety of functions such as control of redundancy, supervision of health and safety and conditions at work, a supporting function etc. Small businesses would not have human resource department. If firm has only three or four workers it can not afford such department. This firm would not carry out training of staff by themselves, they would found training company. It means small businesses will pay someone else to do this. Usually the owner of this business carries out the work of HR department.

Sales and Marketing

The marketing department is primarily concerned with investigating consumers' needs and wants. Typically large companies have department engaged in carrying out pricing and extension strategies. People do research concerning sales: which prices are optimal for given product, what quantity of the goods is required etc. In addition they carry out market research, identify, anticipate and analyse consumer requirements profitability. Certainly in the small business the situation is different. Such companies do not need department engaged in sales and marketing, the owners of small firm do sales and marketing research by themselves.

Research and Development

The department of research and development has very important functions, such as to provide expert advice to the rest of the company and to customers, to further the company's business aims by creating new and better products, to improve operational processes and develop new ones, to gain efficiency. In case of small businesses they frequently do not have R&D, because the work of this department performs one worker responsible for this or even the owner of the firm. Whereas for large companies this department is absolutely necessary. We can give an example which has immediate relationship to this. As we know R&D department watch over if the firm needs to improve products or produce new types of them. Small businesses would buy the new product and then they could add value. The department of research and development investigate whether the company needs to produce new products or not. Therefore R&D work should always be tightly related to the organization's objectives.

Production/Operations

The set of interrelated management activities, which are involved in manufacturing certain products, monitoring costs etc., is called the production management. The production and operation department of a company is responsible for making sure raw materials are processed into finished goods effectively. Operations: the processes of transforming inputs into finished products and services. This is a process by which goods and services are created. As in situations of previous business functions anew production/operations department is essential to almost all large businesses. The production/operation system of an organization is that part, which produces products of an organization. So, large companies as a rule have that sort of system. And exactly the sector of production/operations keeps an eye on the work of the production system. Large firms are in need of this functional department because big companies make products by themselves. Businesses that exist to trade in completed products will only have finished goods in the stock; owing to this cause small organizations do not need this department since they would buy ready products rather than making them and then selling. It is therefore far more sensible for small businesses to have a person who is responsible for finding products and then buying them.

Customer Service

The main objective of customer service department, certainly, is customers. This department handles consumer enquiries, engaged in publicity and public relations. Customer service has responsibility to show how much company truly values their customers. There are many ways to ask what customers need, wait from your service: post-purchase and post-support surveys, enclosures in the monthly invoice, follow-up phone calls and quarterly or annual surveys. If business is communicating to a large customer base then email is certainly the fastest and most effective way to quickly notify their customers that it is aware of the problem. Serious organizations that are interested in holding its positions in the customer market try to set the expectations correctly as to what the fallout may be so everyone understands the impact to customer satisfaction and ultimately customers' retention. Thus we can see that any company wishing to be successful does its best to contact with customers, retain them. And large businesses do it exactly through customer service. Small or growing companies do not employ experts in a client service, managers or owners do this work by themselves. Let us take as the example small corner shop. Such shop does not need a customer service department, since it does not have a big customer base.

Finance and Accounts

The finance and accounts department perform different roles and the key role is raising finance. However, in order to improve the financial condition of a firm people who work in the financial department of a company need to control all accounts, income and expenditure. Nowadays accounts are stored on computer files, and accounting procedures are greatly simplified by the use of specialised software. Accounting information needs to be identified and measured every time. That is also the work of the department. The financial accounting function is responsible for keeping records of financial events as they occur. Reports show the financial position of an organization and the profitability of its operations. As well as keeping day-to-day records, the financial accounting function will also be responsible for producing periodic records such as the annual accounts and figures for discussion at meeting of directors. It all helps stakeholders monitor an organization's activities and performance. Using systems of budgetary control, it will set targets for achievement and limits for spending for the several of the parts. Therefore we can see that the function of finance and accounts department is extremely important for large and medium businesses. Whereas small firms do not have a whole financial department, as such companies usually can manage with one person responsible for this work.

Administration and IT

System administration department -- department which duties is not only tracking network safety of the organization, but also creation of optimal working capacity of computers and the software for the users often connected among themselves by the general work on certain result. Administrators are very important because they service the work of the organization. The administration office focuses on the management of work through information technology and communications systems. The work of the department of administration and IT will include co-ordination of the supply of office equipment and stationary. Also this function provide and maintain a communication system within a company, including phones, mailing system, computer hardware and other data processing facilities. Information communications technology refers to the large and developing body of technologies and techniques, by which information is obtained, processed and disseminated. The role of the information and communications technology function is to promote effective exploitation of ICT and to provide the guidance, support and co-ordination necessary to accomplish this objective. All these functions that perform administration department or administrator help large companies to stay alive. As for the small businesses they would rather employ expert for a certain time from the firm offering administration services to sort out all problems than holding a whole department.

Tangible interrelationships of business functions offer direct opportunities to create a synergy among business units. Each function may have developed its own values and culture (way of doing things) that are at odds with what the overall organization is trying to achieve. The best way of getting the various functions of an organization to pull in the same direction is to create a clear set of company objectives that can then be translated down into functional objectives, so that each of the functions is driven by the odganisation's objectives. Such interrelationships may exist simultaneously in multiple value chain activities. In modern organization, there is far more integration of functions than ever before. Functions are thus integrated to concentrate on a particular process. Functions should interrelate with each other, sometimes arises necessity of combining and integrating these functions in order to successfully run the business.

We can see from this report that more often than not large companies prefer holding different departments within an organization responsible for various types of functions. Talking about small firms, they have individuals who do this work, which in big firms carry out large departments. Also the importance of each function depends on the type of business and own organization's style of work. For instance while a traditional manufacturing company will place a great deal of emphasis on "production" a modern service organization will place more emphasis on "customer service" or "marketing".

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