The Company
The Company
The Company
The Company
Organizational Departments and Functions
⚫ control of inventory
R&D activities must be closely coordinated with the organization's marketing activities
to ensure that the organization is providing exactly what its customers want in the most
efficient, effective and economical way.
3. The Purchasing Function
The Purchasing function is concerned with acquiring goods and services for use by the organization.
These will include, for example, raw materials and components for manufacturing and also production
equipment.
The responsibilities of this function usually extend to buying goods and services for the entire organization
(not just the Production function), including, for example, office equipment, furniture, computer
equipment and stationery.
In buying goods and services, purchasing managers must take into account a number of factors –
collectively referred to as ‘the Purchasing mix’ namely, Quantity, Quality, Price and Delivery.
4. The Marketing Function
Marketing is concerned with identifying and satisfying customers needs at the right price. Marketing involves researching what
customers want and analyzing how the organization can satisfy these wants.
A fundamental activity in marketing is managing the Marketing Mix consisting of the ‘4Ps’: Product, Price, Promotion and Place.
⚫ Product. Having the right product in terms of benefits that customers value.
⚫ Price. Setting the right price which is consistent with potential customers’ perception of the value offered by the product.
⚫ Promotion. Promoting the product in a way which creates maximum customer awareness and persuades potential customers to
make the decision to purchase the product.
⚫ Place. Making the product available in the right place at the right time – including choosing appropriate distribution channels.
5. The Human Resources Function
The Human Resources function is concerned with the following:
⚫ Recruitment and selection. Ensuring that the right people are recruited to the right jobs.
⚫ Training and development. Enabling employees to carry out their responsibilities effectively and make use of their potential.
⚫ Grievance procedures and disciplinary matters. Dealing with complaints from employees or from the employer.
⚫ Health and Safety matters. Making sure employees work in a healthy and safe environment.
⚫ Lay-off procedures. Administering a proper system that is seen to be fair to all concerned when deciding on redundancies and
agreeing redundancy payments.
6. The Accounting and Finance Function
The Accounting and Finance function is concerned with the following:
⚫ Preparing financial statements for reporting to external parties such as shareholders. The financial
statements are also the starting point for calculating any tax due on business profits.
⚫ Payroll administration Paying wages and salaries and maintaining appropriate income tax and national
insurance records.
⚫ Preparing management accounting information and analysis to help managers to plan, control and make
decisions.
Task
Discuss the following questions with your partner:
⚫ Which department would you like to work in? Which wouldn’t you? Think about the
functions you would be good at and those ones which you wouldn’t be as good at.