Chapter 1 - The Business Organisation

Chapter 1 The Business Organisation

Part 2 The Roles and Functions of the Main Departments in a Business Organisation

2.1 The Main Functions within an Organisation

There are EIGHT main departments in a business organization

1. Research and Developement

-Improving existing products

-Developing new products

2. Purchasing

-Acquiring the goods and services necessary for the business

3. Production

-Converting raw materials into finished goods

4. Direct Service Provision

-Providing services to clients

5. Marketing

-Identifying customer needs

-Market research

-Product design

6. Administration

-Administrative support

-Processing transactions

7. Finance

-Bookkeeping

-Budgeting

8. Human Resources

-Job analysis and job design

-Training and development

2.2 Co-ordination

Definition
The regulation of diverse elements into an integrated and harmonious operation.

It is vital that effective co-ordination is achieved between different departments and functions.

The main way to achieve is through the budget-setting process.

Other mechanisms for achieving co-ordination are:

1. Regular planning meetings between the managers
2. Effective and regular communication between departments to confirm deadlines, target activity levels, etc.
3. Clear, well-documented reporting lines
4. Supervision

Co-ordination can also be achieved in one or more of the following ways:

1. Standardised work processes
2. Standardised outputs
3. Standardised skills and knowledge
4. Direct supervision
5. Mutual adjustment