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The main functions within an organization

The main departments in a business organization are as follows: Department RoleKey concerns Research and development Improving existing products.

§ Developing new products§ Anticipating customer needs

§ Generating new ideas

§ Testing

§ Cost

Purchasing Acquiring the goods and services necessary for the business Price and payment terms.

§ Quality

§ Stock levels/delivery schedules

Production Converting raw materials into finished goods Quality (of materials and finished goods)

§ Costs

§ Wastage/efficiency

§ Stock levels/production schedules

Direct service provision providing service to clients (e.g. accountancy firm) Quality

§ Time sheets/scheduling

Marketing Identifying customer needs

§ Market research

§ Product design

§ Pricing

§ Promotion

§ Distribution Customer needs

§ Quality

§ Promotional strategy

§ Distribution channel strategy

§ Pricing strategy

Administration Administrative support

§ Processing transactions§ Efficiency

§ Information processing

Finance Bookkeeping

§ Financial reporting

§ Financial controls

§ Budgeting

§ The raising of capital Accuracy and completeness of record keeping

§ Monthly management reporting

§ Annual financial reporting

Human resources Job analysis and job design

§ Recruitment and selection

§ Performance appraisal

§ Rewards (e.g. setting pay)

§ Training and develop

§ Grievances and discipline Staff competence

§ Staff commitment/motivation

§ Cost

§ Staff welfare (e.g. stress)

§ Compliance (e.g. equal opportunities legislation)

Test your understanding seven

Which of the following is not part of the responsibility of a research and development department?

A An Improving existing products.

B Developing new products.

C Researching new technologies for application to future products.

D Researching market demand for products.

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