Functions of Departments

Unit 1b

How are Businesses Organised

A well run business must have:

employees who are organised employees who communicate with each other

Organisations are divided into functional departments such as:

Sales Finance Purchases Personnel/Human Resources

Why Must Departments Communicate

In order for information to flow within the organisation Without communication a business is not effective Communications are vital in a business

Roles of Functional Departments

Collect
Process

Transmit

Departments must:
Collect Information data received Process Information data is dealt with Transmit Information send data to many people

What does the Sales Department Do

Deals with customer orders May also include the marketing department Makes sure customers know about products Try and persuade customers to buy goods.

Members of Staff

Sales Manager Sales Representatives Customer service assistants Administration assistants Market research personnel

Activities of Sales Staff

Respond to customer enquires eg letters, faxes, telephone calls. Send out information to customers eg price lists, catalogues, quotations. Visit customers Process customer orders Deal with customer complaints

Activities of Marketing Staff

Carry out market research eg telesales etc Arrange publicity eg newspaper adverts, flyers etc

Members of Staff Finance Department

Finance Manager Financial Accountant Management Accountant Accounts Assistant Invoice Supervisor Invoice Processors Wages Assistant Admin Assistants

Activities of Finance Department

Check invoices and statements received from suppliers Prepare checks to be sent to suppliers Prepare invoices, credit notes and statements to be sent to customers Pay in cash and cheques received from customers Calculate wages Prepare final accounts Trading, P&L Accounts, Balance Sheet

Members of Staff Personnel Department

Human Resources/Personnel Manager Training Officer Health and Safety Officer Careers Officer Admin Assistants

Activities of Personnel Department

Advertise jobs when they become available Prepare job descriptions Prepare and send application forms Collect application forms or CVs from people applying for jobs Prepare a short list of applicants to interview

Activities of Personnel Dept cont

Interview applicants for jobs Give feedback to candidates on their interviews Prepare contracts of employment for new employees Keep records of employee details Keep records of staff holidays and sickness

Activities of Personnel Dept cont

Keep records of any accidents Deal with disciplinary procedures Make sure organisation works within government legislation Make sure that the organisation looks after the health and safety of its staff.

Members of Staff Purchases Department

Purchasing Manager Stock Controller Quality Controller Buyers

Activities of the Purchasing Department

Obtain catalogues and price lists from suppliers Deal with purchase requests from other department Agree purchase prices and credit terms with suppliers Place orders with suppliers Keep records of purchases and deliveries

Activities of the Purchasing Department (2)

Receive and check deliveries of products against delivery notes Keep accurate stock records including reordering of stock Check invoices received with deliveries Attend launches of new products and exhibitions organised by suppliers

When Are More Functional Departments Needed

When organisations grow in size When communicating easily becomes a problem The larger the organisation becomes the more people are employed this could lead to more functional departments being created

A Small Organisation
Managing Director

Finance Department

Personnel Department

Purchases Department

Sales Department

A Small Organisation
4 functional departments and a small workforce No Computer Cervices Department support provided from within or bought in No Administration Support Department this would be provided by employees within the department

A Large Organisation
Board of Directors

Managing Director

Computer Services Department

Finance Department

Administration Support Department

Purchases Department

Sales Department

Transport Department

The Large Organisation

Has 6 Functional Departments Has more employees A separate Computer Services Department A separate Administrative Support Department

Members of Staff Computer Services Department

Computer Services Manager Help Desk Operators Computer Technicians Programmers

Activities of Computer Services Department

Install new software Make sure licences are stored safely and are upto-date Maintain Computer Equipment Respond to problems/queries Deal with staff training Create and issue user IDs and passwords Create and set up network space for staff/users

Members of Staff Administration Support Department

Admin Manager Receptionist Switchboard Operator Reprographics staff Mail room staff Computer operators

Activities of Administration Support Department

Admin support eg Keyboarding, filing, databases etc Mail handling both Internal and external Reception duties Petty Cash Purchase small items of stationery