Copyright 2006 – Biz/ed
Business Functions
and Organisation
Copyright 2006 – Biz/ed
Business Functions
•
Human Resources
•
Sales and Marketing
•
Research and Development
•
Production/Operations
•
Customer Service
•
Finance and Accounts
•
Administration and IT
Copyright 2006 – Biz/ed
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
Copyright 2006 – Biz/ed
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
Copyright 2006 – Biz/ed
Research and Development
•
New product development
•
Product improvements
•
Competitive advantage
•
Value added
•
Product testing
•
Efficiency gains
•
Cost savings
Copyright 2006 – Biz/ed
Finance and Accounts
•
Cash flow
–
Monitoring income/revenue
– Monitoring expenditure
•
Preparing accounts
•
Raising finance
– Shares
–
Loans
•
Links with all other functional areas
Copyright 2006 – Biz/ed
Production/Operations
•
Acquiring resources
•
Planning output – labour, capital, land
•
Monitoring costs
•
Projections on future output
•
Production methods
–
Batch
–
Flow
–
Job
– Cell
•
Efficiency
Copyright 2006 – Biz/ed
Customer Service
•
Monitoring distribution
•
After-sales service
•
Handling consumer enquiries
•
Offering advice to consumers
•
Dealing with customer complaints
•
Publicity and public relations
Copyright 2006 – Biz/ed
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
Copyright 2006 – Biz/ed
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
Copyright 2006 – Biz/ed
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
Copyright 2006 – Biz/ed
Organisation Charts
Hierarchical Structure
Managing Director
Sales Director
Marketing
Director
Finance Director
A B C D
Market
Research
Strategy
Purchasing
Manager
Sales
Manager
Accounts
Manager
Copyright 2006 – Biz/ed
Organisation Charts
MD
Middle
Management
Workers
Pyramidal Structure
Senior
Management
Copyright 2006 – Biz/ed
Organisation Charts
R&D
Marketing Sales
Production
Finance
MD
Centralised/Entrepreneurial
Copyright 2006 – Biz/ed
Organisation Charts
Sales
Marketing
Production
Accounts
Collaborative
Copyright 2006 – Biz/ed
Organisation Charts
Marketing Sales
ProductionFinance
R&D
Circular/Flat
Copyright 2006 – Biz/ed
Organisation Charts
Project
Marketing
R&D
Sales
Finance
HR
Production
Matrix Structure
Copyright 2006 – Biz/ed
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