The functions of different organizational structures are to govern a company’s efficiencies and productivity. For example a restaurant will need ingredients to make the food that they serve to their customers. These functions are important to the success of an organization, but they tend to receive less public recognition. A business whose decision-making comes from one place only is known as a centralised organisation. Capital is the machines and tools needed to produce the product or service. In fact labour is any effort/task an employee undertakes in order to produce the product or service. Something that keeps coming up is the optimal design of the facility management department’s organization structure. Functional organisational structure refers to the structure in which different departments are created on the basis of major functions performed in the organisation. In its research, the marketing department will investigate the market they are aiming at; the type of consumer making up the market (age, background sex etc) and the preferences of the consumer within that market. Reasons for department in an organization. These objectives then need to be further broken down into specific objectives for each function. Energy is needed to heat and light up the premises, make the machinery work and to ensure that the organisation is a comfortable place for the employees to work in. This leads to lower unit costs and a greater efficiency. Exam boards: AQA, Edexcel, OCR, IB. The marketing department will then need to marry consumer preferences with producing a product that is profitable. Management functions are applied in several functional areas of the busine NB Factors of production have also been classified into land, labour, capital and enterprise. In order to produce and sell products organisations carry out 6 functions. The Sales Departmentâs selling strategy could involve mail shots, travelling sales representatives, telephone sales and devising the sales interview. Boston House, 5 Types Of Departments In A Company’s Organizational Structure PhDs Must Know. He has been a college marketing professor since 2004. This information will then be used to produce various financial statements for tax purposes and to comply with legal requirements. Thomas Northcut/Digital Vision/Getty Images. They will interpret employee welfare legislation and advise the organisation about complying with human resources legislation. But not about everything that went into putting each kit together and delivering it on time. is the machines and tools needed to produce the product or service. Tension sometimes exist in companies where support functions receive lower budgets and deal with constant cost-control measures. The information will also be used to produce management accounts to enable senior managers to plan and review business strategy. However it can mean that there is departmental rivalry. As not all research will lead to new/improved products/processes companies will need to allocate a specific portion of their budget to research and development activities. These departments research and develop solutions, promote them to targeted prospects and then provide customer service to drive loyal relationships. This means that there is more opportunity to react to the changing marketplace (one of the advantages of a small firm). Organisation: Departments in a Business (GCSE) Levels: GCSE. These functions also are known as the revenue-generating activities in a business. These departments will specialise, employing people with expertise in these areas. For example a restaurant will need to know what ingredients are necessary for each dish, what quantity of ingredient to use, how to mix each ingredient and how long (if at all) to cook each dish. An organizational or business function is a core process or set of activities carried out within a department or areas of a company. Human Resources may also create policies that balance organisational needs with those of the employee. In effective organisations each of the functions will work together so that the whole of the organisation are aiming towards the same objectives. This is because being grouped together allows the functions to benefit from specialisation and division of labour. Kokemuller has additional professional experience in marketing, retail and small business. This function although not always recognised as vital, is the glue that holds the organisation together. Other ways of organising the business could be more appropriate for different types of businesses: Product – the functions are organised around the product – so at a business like ICI, who are the UK's leading chemical manufacturer, a product manager would have a team of functions who would answer to them, like accounting, marketing and production, Geographical – a hierarchy might be split according to different places that the product is sold into – for instance a business may have a Far Eastern division of its business, which would take into account the different cultural and supply differences of the region, Market – the organisation is based on market segments – so an airline business like British Airways could concentrate on long haul, short haul, holiday makers, business clients and freight. I never thought much about the kits I used in a lab. The financial section of the organisation will keep manual/electronic records of money received and paid out by the organisation. However there is a possibility that these businesses (who may well be in different parts of the world) might be duplicating research or not bargaining in such as strong position as a bigger overall company. Once the product has been designed by the production department marketing will then need to package, advertise, and promote the product. BusinessDictionary.com: Business Function, Gartner: Why the Back Office May Never Fully Understand the Front Office. For payment of wages the finance department will need to take into account statutory deductions such as tax, and employee contributions such as pension or loan repayments. Larger businesses might have a number of businesses within the whole company. The main departments in a well-established business are typically: Jim co-founded tutor2u alongside his twin brother Geoff! In this type of classification natural resources such as water, coal and farm land are grouped together as land. The finance department or unit may also be responsible for administering employee expenses and salaries. The marketing department will research customer needs to develop strategy and product to satisfy that customer need. Back-office functions support front-office activities, but they do so behind the scenes. West Yorkshire, Marketing, sales and customer service are primary front-office functions. This physical capital is purchased through financial capital such as loans, sale of shares in the organisation and use of profit generated by the organisation. Organizational Design for Facility Departments – Functional or Integrated.