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Business Functions and Organisation

This guide provides insights into optimizing various business functions such as human resources, sales, marketing, research and development, production, customer service, finance, and administration. Learn about recruitment and retention, promotion strategies, new product development, cash flow management, organization structures, and more. Discover how to enhance efficiency, improve productivity, and foster collaboration within your organization to achieve sustainable success.

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Business Functions and Organisation

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  1. Business Functions and Organisation

  2. Business Functions • Human Resources • Sales and Marketing • Research and Development • Production/Operations • Customer Service • Finance and Accounts • Administration and IT

  3. Human Resources • Recruitment and retention • Job descriptions • Person Specifications • Dismissal • Redundancy • Motivation • Professional development and training • Health and safety and conditions at work • Liaison with trade unions

  4. Sales and Marketing • Market research • Promotion strategies • Pricing strategies • Sales strategies • The sales team • Product – advice on new product development, product improvement, extension strategies, target markets

  5. Research and Development • New product development • Product improvements • Competitive advantage • Value added • Product testing • Efficiency gains • Cost savings

  6. Finance and Accounts • Cash flow • Monitoring income/revenue • Monitoring expenditure • Preparing accounts • Raising finance • Shares • Loans • Links with all other functional areas

  7. Production/Operations • Acquiring resources • Planning output – labour, capital, land • Monitoring costs • Projections on future output • Production methods • Batch • Flow • Job • Cell • Efficiency

  8. Customer Service • Monitoring distribution • After-sales service • Handling consumer enquiries • Offering advice to consumers • Dealing with customer complaints • Publicity and public relations

  9. Business Organisation • Organisation by type • Global businesses – complex organisation structures • National– organisation possibly stretches throughout the country • Regional – could be through a county or wider area (North West, South East, etc.) • Local – small organisations serving local area or community

  10. Business Organisation • Authority– the right to make decisions and carry out tasks • Span of control – the number of people a superior is responsible for • Chain of Command – the relationship between different levels of authority in the business • Hierarchy – shows the line management in the business and who has specific responsibilities • Delegation – authority to carry out actions passed from superior to subordinate • Empowerment – giving responsibilities to people at all levels of the business to make decisions

  11. Administration and IT • Managing estates – cleaning, health and safety, maintenance, security • Reception • Clerical work – reporting, recording, record keeping, communication • Overview of quality control • Use of IT systems

  12. Organisation Charts Hierarchical Structure Managing Director Marketing Director Finance Director Sales Director A B C D Purchasing Manager Sales Manager Accounts Manager Market Research Strategy

  13. MD Middle Management Organisation Charts Pyramidal Structure Senior Management Workers

  14. Organisation Charts Centralised/Entrepreneurial

  15. Organisation Charts Collaborative

  16. Organisation Charts Circular/Flat

  17. Organisation Charts Matrix Structure Marketing Sales R&D Project HR Production Finance

  18. Organisation Charts • Changes to business structures • Linked to new thinking on leadership and management • Less hierarchical • Emphasis on communication and collaboration between sections • Global businesses – more complex structures

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