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Functions of Departments. Unit 1b. How are Businesses Organised. A well run business must have: employees who are organised employees who communicate with each other Organisations are divided into functional departments such as: Sales Finance Purchases Personnel/Human Resources.
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Functions of Departments Unit 1b
How are Businesses Organised • A well run business must have: • employees who are organised • employees who communicate with each other • Organisations are divided into functional departments such as: • Sales • Finance • Purchases • Personnel/Human Resources
Why Must Departments Communicate • In order for information to flow within the organisation • Without communication a business is not effective • Communications are vital in a business
Roles of Functional Departments • Departments must: • Collect Information – data received • Process Information – data is dealt with • Transmit Information – send data to many people
What does the Sales Department Do • Deals with customer orders • May also include the marketing department • Makes sure customers know about products • Try and persuade customers to buy goods.
Members of Staff • Sales Manager • Sales Representatives • Customer service assistants • Administration assistants • Market research personnel
Activities of Sales Staff • Respond to customer enquires eg letters, faxes, telephone calls. • Send out information to customers eg price lists, catalogues, quotations. • Visit customers • Process customer orders • Deal with customer complaints
Activities of Marketing Staff • Carry out market research eg telesales etc • Arrange publicity eg newspaper adverts, flyers etc
Members of Staff – Finance Department • Finance Manager • Financial Accountant • Management Accountant • Accounts Assistant • Invoice Supervisor • Invoice Processors • Wages Assistant • Admin Assistants
Activities of Finance Department • Check invoices and statements received from suppliers • Prepare checks to be sent to suppliers • Prepare invoices, credit notes and statements to be sent to customers • Pay in cash and cheques received from customers • Calculate wages • Prepare final accounts – Trading, P&L Accounts, Balance Sheet
Members of Staff – Personnel Department • Human Resources/Personnel Manager • Training Officer • Health and Safety Officer • Careers Officer • Admin Assistants
Activities of Personnel Department • Advertise jobs when they become available • Prepare job descriptions • Prepare and send application forms • Collect application forms or CV’s from people applying for jobs • Prepare a short list of applicants to interview
Activities of Personnel Dept cont • Interview applicants for jobs • Give feedback to candidates on their interviews • Prepare contracts of employment for new employees • Keep records of employee details • Keep records of staff holidays and sickness
Activities of Personnel Dept cont • Keep records of any accidents • Deal with disciplinary procedures • Make sure organisation works within government legislation • Make sure that the organisation looks after the health and safety of its staff.
Members of Staff – Purchases Department • Purchasing Manager • Stock Controller • Quality Controller • Buyers
Activities of the Purchasing Department • Obtain catalogues and price lists from suppliers • Deal with purchase requests from other department • Agree purchase prices and credit terms with suppliers • Place orders with suppliers • Keep records of purchases and deliveries
Receive and check deliveries of products against delivery notes Keep accurate stock records including re-ordering of stock Check invoices received with deliveries Attend launches of new products and exhibitions organised by suppliers Activities of the Purchasing Department (2)
When Are More Functional Departments Needed • When organisations grow in size • When communicating easily becomes a problem • The larger the organisation becomes the more people are employed – this could lead to more functional departments being created
A Small Organisation • 4 functional departments and a small workforce • No Computer Cervices Department – support provided from within or bought in • No Administration Support Department – this would be provided by employees within the department
The Large Organisation • Has 6 Functional Departments • Has more employees • A separate Computer Services Department • A separate Administrative Support Department
Members of Staff – Computer Services Department • Computer Services Manager • Help Desk Operators • Computer Technicians • Programmers
Activities of Computer Services Department • Install new software • Make sure licences are stored safely and are up-to-date • Maintain Computer Equipment • Respond to problems/queries • Deal with staff training • Create and issue user ID’s and passwords • Create and set up network space for staff/users
Members of Staff – Administration Support Department • Admin Manager • Receptionist • Switchboard Operator • Reprographics staff • Mail room staff • Computer operators
Activities of Administration Support Department • Admin support – eg Keyboarding, filing, databases etc • Mail handling – both Internal and external • Reception duties • Petty Cash • Purchase small items of stationery