Chapter 1 - The Business Organization - Part II

2. The roles and functions of the main departments in a business organization

2.1 The main functions within an organization

1. Research and development
- Improving existing products
- Developing new products
* customer needs,new ideas,testing & cost

2. Puchasing
- Acquiring goods and services necessary for business
* price,quality,stock levels

3. Production
- Converting raw materials into finished goods
* quality,costs,efficiency,stock levels

4. Direct service provision
- Provide services to clients
* quality,time sheets

5. Marketing
- Identifying customer needs
- Market research
- Product design
- Pricing
- Promotion
- Distribution
* customer needs,quality,promotional,distribution channel & pricing strategy

6. Administration
- Administrative support
- Processing transactions
* efficient,information processing(timely,accurate & relevant)

7. Finance
- Bookkeeping & financial reporting
- Financial controls
- Budgeting
- Raising of capital
* accuracy and completeness of record keeping,monthly management & annual financial reporting

8. Human resources
- Employment
- Rewards
-Training and development
- Grievances and discipline
- Employment services
* staff competence,motivation & welfare,cost,compliance

2.2 Co-ordination

1. The regulation of diverse elements into and integrated an harmonious operation.
2. Achieved between different departments and functions through the budget-setting process

3. Other mechanisms:
· planning meetings
· effective and regular communication
· clear,well documented reporting lines
· supervision

4. Achieved in one or more of following ways:
· Standardised work processes(specified)
· Standardised outputs
· Standardised skills and knowledge
· Direct supervision(hierarchy)
· Mutual adjustment(internal communication)