The Role Of Key Functional Areas In The Operation Of A Business
The production function
In this department, raw materials are put together to produce goods, also services are provided. Individual designers put together specifications which are completely developed and examined. Trial products are also made. Note in a retailing or wholesaling business there is no production department, since they are buying and selling already-manufactured goods. Hence the production department is responsible for converting raw materials into finished products. They are as well responsible for quality management to guarantee that necessary standards are met.
The finance function
This department is accountable for the accounting dealings and processes of the business. It also includes the investment of funds in plant, equipment and machinery. In addition it is involve in the buying of items for other departments of the business. This department also pays dividends to shareholders. Hence this department produces and receives all payments on behalf of the business and keeps track of all financial transactions
The marketing function
The marketing function comprises of market research, selling, publicity, distribution, merchandising, sales promotion, advertising and after-sales services. This department generates attentiveness and awareness for the business’ goods and encourages consumers to buy.
The personnel function
This department is also called the human resource department. The tasks of this department concern primarily the workers of the business. Concerns include hiring, firing; recruitment and selection of workers; job analysis and job description; job specifications and employee training, workers’ welfare, sick leave, benefits ect….
The further functional areas that may be present if the business is large are:
The research and development function
The task of this department comprises of numerous types of research, for example consumer research and product research. Also it includes feasibility studies and pilot projects and contacting research establishments like the Department of Statistics. Hence the research and development department is concerned with investigation to discover means of developing the business’ present products, developing new ones and recognizing competent procedures to increase production. This department works hand in hand with the marketing department because goods developed must please consumers’ needs.
The social function
This looks at trade union negotiations, pollution and dumping of waste products issues, getting health conveniences and clean working environments. Also it looks at the creation of social groups in the business, for example clubs and committees.
The Purchasing Department
This department is responsible for the buying of the business’ raw material, supplies and other items. This department works with the finance department.
Customer Service/ Customer Relations Department
This Department is between a business and its customers. It handles customers’ questions and complaints. Also it helps customers in buying goods. This department works well with the marketing department.
Legal Department
This department is concerned with legal issues that may occur in a business. For instance, one can look at reimbursement for employees and customers in times of lawsuits against the business.