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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

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