{"id":104,"date":"2023-03-01T10:59:10","date_gmt":"2023-03-01T10:59:10","guid":{"rendered":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/?page_id=104"},"modified":"2023-03-09T10:30:57","modified_gmt":"2023-03-09T10:30:57","slug":"business-departments","status":"publish","type":"page","link":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/business-departments\/","title":{"rendered":"Business Departments"},"content":{"rendered":"<p>All businesses need to carry out a number of basic functions in order for them to produce goods or provide services. Since these functions rely on staff with particular knowledge and skills and the use of specialist equipment, each one tends to be done by specialist teams.<\/p>\n<h2><span style=\"color: #ff0000\"><strong>What is a Functional Area?<\/strong><\/span><\/h2>\n<p>Organisations are usually structured around main activities. The activities are usually grouped into functional areas (or departments\/divisions).<\/p>\n<p>In a large manufacturing organisation there are likely to be departments which carry out the functions of Purchases, Human Resources\/Personnel, Finance, Production, Sales and Marketing, and Administration. There will usually be a Senior Manager in charge of each area with the Senior Manager being responsible for the direction of their functional area within the organisation.<\/p>\n<p>The 4 main functional areas are:<\/p>\n<ul>\n<li>Marketing<\/li>\n<li>Human Resources<\/li>\n<li>Operations\/Production<\/li>\n<li>Finance<\/li>\n<\/ul>\n<h2><span style=\"color: #ff0000\">Marketing<\/span><\/h2>\n<p data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$0\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$0.0\">The marketing department is concerned with finding out the needs and wants of potential customers and promoting the company\u2019s products or services.<\/span><\/p>\n<p data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$1\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$1.0\">The main functional activities carried out by the marketing department are:<\/span><\/p>\n<ul class=\"list unordered\" data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2\">\n<li data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2.$0\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2.$0.0\">advertising<\/span><\/li>\n<li data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2.$1\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2.$1.0\">market research<\/span><\/li>\n<li data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2.$2\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2.$2.0\">promotion<\/span><\/li>\n<li data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2.$3\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$2.$3.0\">selling products<\/span><\/li>\n<\/ul>\n<h3 data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$5\"><span style=\"color: #ff0000\" data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$5.0\">Advertising<\/span><\/h3>\n<p data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$5\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$6.0\">\u00a0It is the job of the marketing department to decide how and when to advertise and to develop <\/span><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$6.$1\"><a class=\"glossary-term \" role=\"button\" data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$6.$1.0\">advertising campaigns<\/a><\/span><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$6.2\">.<\/span><\/p>\n<h3 data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$8\"><span style=\"color: #ff0000\" data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$8.0\">Market research<\/span><\/h3>\n<p data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$9\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$9.0\">To find out if a product or service would meet the needs and wants of customers and would they be willing to purchase them. This can be done through <\/span><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$9.$1\"><a class=\"glossary-term \" role=\"button\" data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$9.$1.0\">surveys<\/a><\/span><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$9.2\">, observations or interviews.<\/span><\/p>\n<h3 data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$11\"><span style=\"color: #ff0000\" data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$11.0\">Promotion<\/span><\/h3>\n<p data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$12\"><span data-reactid=\".1kz4xkgpn9e.0.0.0.1:0.1.0.$0.$1.$12.0\">The marketing department will decide which form of promotion would be best suited to the product to persuade customers to buy it.<\/span><\/p>\n<hr \/>\n<h2><span style=\"color: #ff0000\">Operations\/Production<\/span><\/h2>\n<p data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$1\"><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$1.0\">The operations department is responsible for making the product or providing the service. It is their responsibility to ensure that the product or service is of the required quality to satisfy the customer.<\/span><\/p>\n<p data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$2\"><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$2.0\">The main functional activities carried out by the operations department are:<\/span><\/p>\n<ul class=\"list unordered\" data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3\">\n<li data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3.$0\"><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3.$0.0\">production of goods or services<\/span><\/li>\n<li data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3.$1\"><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3.$1.0\">buying<\/span><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3.$1.$1\"><a class=\"glossary-term \" role=\"button\" data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3.$1.$1.0\">raw materials<\/a><\/span><\/li>\n<li data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3.$2\"><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$3.$2.0\">control of quality<\/span><\/li>\n<\/ul>\n<h3 data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$6\"><span style=\"color: #ff0000\" data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$6.0\">Production of goods or services<\/span><\/h3>\n<p data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$7\"><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$7.0\">This involves managing stock, choosing the most suitable production method and distributing finished goods to customers or\u00a0retailers<\/span><\/p>\n<h3 data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$9\"><span style=\"color: #ff0000\" data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$9.0\">Buying raw materials<\/span><\/h3>\n<p data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$10\"><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$10.0\">The operations department will choose suppliers that provide the most cost effective and high quality materials.<\/span><\/p>\n<h3 data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$12\"><span style=\"color: #ff0000\" data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$12.0\">Control of quality<\/span><\/h3>\n<p data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$13\"><span data-reactid=\".25c0d4e7f02.0.0.0.1:0.1.0.$0.$1.$13.0\">The operations department selects the best quality methods to ensure a product or service is of an acceptable standard.<\/span><\/p>\n<hr \/>\n<h2><span style=\"color: #ff0000\">Human Resources<\/span><\/h2>\n<p data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$0\"><span data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$0.0\">The human resources department manages the people who work for the organisation. The main functional activities carried out by the human resources department are:<\/span><\/p>\n<ul class=\"list unordered\" data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1\">\n<li data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1.$0\"><span data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1.$0.0\">recruitment and selection<\/span><\/li>\n<li data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1.$1\"><span data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1.$1.0\">staff training<\/span><\/li>\n<li data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1.$2\"><span data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1.$2.0\">industrial relations<\/span><\/li>\n<li data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1.$3\"><span data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$1.$3.0\">health and safety<\/span><\/li>\n<\/ul>\n<h3 data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$4\"><span style=\"color: #ff0000\" data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$4.0\">Recruitment and selection<\/span><\/h3>\n<p data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$5\"><span data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$5.0\">This is the process of finding the best people to come and work for the company.<\/span><\/p>\n<h3 data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$8\"><span style=\"color: #ff0000\" data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$8.0\">Staff training<\/span><\/h3>\n<div class=\"grid\" data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$9\">\n<div class=\"grid__row\" data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$9.0:$0\">\n<div class=\"grid__cell\" data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$9.0:$0.$0\">\n<p data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$9.0:$0.$0.$0\"><span data-reactid=\".kf1uzy775s.0.0.0.1:0.1.0.$0.$1.$9.0:$0.$0.$0.0\">It is the responsibility of the human resources department to give staff the training required to enable them to provide a good quality service to customers.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<hr \/>\n<h2><span style=\"color: #ff0000\">Finance<\/span><\/h2>\n<p data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$1\"><span data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$1.0\">The finance department is responsible for managing the money coming into and going out of the business. They will deal with all the financial aspects of the business such as paying suppliers, paying staff wages and receiving payments from customers.<\/span><\/p>\n<p data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$2\"><span data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$2.0\">The main functional activities carried out by the finance department are:<\/span><\/p>\n<ul class=\"list unordered\" data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$3\">\n<li data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$3.$0\"><span data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$3.$0.0\">raising finance<\/span><\/li>\n<li data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$3.$1\"><span data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$3.$1.0\">preparing budgets<\/span><\/li>\n<li data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$3.$2\"><span data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$3.$2.0\">preparing final accounts<\/span><\/li>\n<\/ul>\n<h3 data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$6\"><span style=\"color: #ff0000\" data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$6.0\">Raising finance<\/span><\/h3>\n<p data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$7\"><span data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$7.0\">It is the responsibility of the finance department to ensure a business has enough money to pay bills. To do this they may be required to raise extra finance. This can be done through applying for bank loans or grants.<\/span><\/p>\n<h3 data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$9\"><span style=\"color: #ff0000\" data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$9.0\">Preparing budgets<\/span><\/h3>\n<p data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$10\"><span data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$10.0\">It is important for a business to plan ahead so they can see how much money is expected to come into and out of the business. To do this a business uses a budget which is prepared by the finance department.<\/span><\/p>\n<h3 data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$12\"><span style=\"color: #ff0000\" data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$12.0\">Preparing final accounts<\/span><\/h3>\n<p data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$13\"><span data-reactid=\".6sbekenxag.0.0.0.1:0.1.0.$0.$1.$13.0\">Final accounts are required by all businesses to see how much profit or loss has been made and what the business is worth. The final accounts are prepared by the finance department.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>All businesses need to carry out a number of basic functions in order for them to produce goods or provide services. Since these functions rely on staff with particular knowledge and skills and the use of specialist equipment, each one tends to be done by specialist teams. What is a Functional Area? Organisations are usually [&hellip;]<\/p>\n","protected":false},"author":79984,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-104","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/wp-json\/wp\/v2\/pages\/104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/wp-json\/wp\/v2\/users\/79984"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/wp-json\/wp\/v2\/comments?post=104"}],"version-history":[{"count":3,"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/wp-json\/wp\/v2\/pages\/104\/revisions"}],"predecessor-version":[{"id":186,"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/wp-json\/wp\/v2\/pages\/104\/revisions\/186"}],"wp:attachment":[{"href":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n4businessmanagement\/wp-json\/wp\/v2\/media?parent=104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}