IGCSE BUSINESS STUDIES Topic : Functions of different departments

Functions of various departments

Every organisation is made up of different department.  Each department contributes to the running of the business. The most common departments are: 

• Production
• Marketing & Sales
• Finance
• Human resource
• and in some cases, Information Technology departments

Production Department

The production department is responsible for converting inputs into outputs through the stages of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable.

There are five production sub-functions

• Production and planning.

They will set the standards and targets at each stage of the production process. The quantity and quality of products coming off a production line will be closely monitored.

• Purchasing department

This department will provide the materials, components and equipment required. An essential part of this responsibility is to ensure that stocks arrive on time and are of good quality

• The stores department

The stores department are responsible for stocking all the necessary tools, , raw materials and equipment required to service the manufacturing process.

• The design and technical support department

They are responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product.

• The works department

This department is concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection.

Human resource Department

The role of Human resource department is in charge of recruiting, training, and the dismissal of employees in an organisation.

• Recruitment and selection
• Training programmes

Training programs are held by the HRD to improve the employees skills, as well as to motivate them.
There are three main types of training :

1. Induction training
2. On-the- job training
3. Off-the-job training

• Manpower Planning

The HR department needs to think ahead and establish the number and skills of the workforce required by the business in the future. Failure to do this could lead to too few or too many staff or staff with inappropriate needs.

• Dismissal and Redundancy (retrenchment)
  

Dismissal is where a worker is told to leave their job due to unsatisfactory work or behaviour.
Redundancy is when the business needs to reduce the number of employees either because it is closing down a branch or needs to reduce costs due to falling profits. It may also be due to technological improvements, and the workers are no longer needed.

Marketing department

These are the main section of the market departments:

• Sales department is responsible for the sales and distribution of the products to the different regions.
• Research & Department is responsible for market research and testing new products to make sure that they are suitable to be sold.
• Promotion department decides on the type of promotion method for the products, arranges advertisements and the advertising media used.
• Distribution department transports the products to the market.

Finance Department

• Book keeping procedures
  Keeping records of the purchases and sales made by a business as well as capital spending.
• Preparing Final Accounts
  Profit and loss account and Balance Sheets
• Providing management information
  Managers require ongoing financial information to enable them to make better decisions.
• Management of wages
  The wages section of the finance department will be responsible for calculating the wages and salaries of employees and organising the collection of income tax and national insurance for the Inland Revenue.
• Raising Finance
  The finance department will also be responsible for the technical details of how a business raises finance e.g. through loans, and the repayment of interest on that finance. In addition it will supervise the payment of dividends to shareholders.