Introduction to business Essay Example for Free

Introduction to business Essay A business function is the different jobs that people do or the different departments that form the basis of an organisations structure. The six business functions are Human Resources, Marketing, research and development, production, finance and administration. Human Resources deal with many different aspects of a business. They deal with recruitment, Job descriptions, dismissals, redundancy etc. They also have a policy-making role; they have to create company policies to create security for people and places within the organisation. Human Resources look after the people at work, they need to motivate them and also look after their needs. Human Resources have to help the MD to develop their roles and roles of other employees within the company. One of Human Resources roles is to bargain and negotiate they act as a go-between between different groups with different interests, they also liase with the trade unions. Human Resources also have an administrative role, for example they are responsible for paying wages and supervising and implementing health and safety laws. They also educate and develop the workforce they decide on whether or not any of the employees need training. The Marketing function is responsible for finding out what the customer needs and wants and then satisfying these needs and wants in the most cost effective manner. Sales is sometimes combined with marketing, sales has a different role to marketing though, for example sales has to make the customer think they want what the company makes or offers as a service whereas marketing has to get the company to produce what the customer wants. In order to find out the customers needs and wants they have to carry out primary research such as observations, questionnaires etc along with analysing secondary data. The Marketing department works closely with the production department because the research marketing do will show production what the customer wants, how they want it, where they want it and when. Marketing are also responsible for advertising, packaging, promotion, distribution and pricing. If a company wants to expand and grow a research and development department is essential because research and development furthers the companys aims by improving processes and by researching new ideas, processes and products. If a company does nothing to improve processes or seek ideas then it is highly unlikely that they shall become/remain successful. If a company is having problems they need to have a research department because some of the work this function carries out can help them to understand what is going wrong. Companies usually set aside available capital in for a research budget because it can cost a lot of money. The Administration function basically deals with every single piece of paper work. Some people may see the admin role as petty and this is strictly untrue. Organisations, especially the larger ones depend on their administration department. Administration handles consumer enquiries, communicating messages and producing documents for the company that are accurate. All companies would have an office manager and whereas Human Resources are responsible for deciding if the staff need training the office manager for organising the training, they would advise different departments on the most effective office layout, equipment, working practices and staff development. They analyse admin practices to see if there is any way they could be made better. They provide and maintain communications for the company; this would be phones, mail, Internet and also report and provide statistics on company activities. Overall ensuring a good standard of work. The Finance department is mainly responsible for monitoring the cash flow (monitoring income/revenue and monitoring expenditure) this is represented in a final balance sheet, sources and uses of funds are displayed in a PL account. The chief accountant is responsible for supervising this department. There are two different types of accounting within a finance department Financial accounting and management accounting. A financial accountant would keep records of all financial events to provide financial summaries on what has happened (Pay wages and keep day to day records) whereas a management accountant would provide the managers with figures to help them make their own decisions, for example costing and pricing decisions, they would also produce budgets. There are also subsections within the finance department; these include a cashiers department, which deals mainly with cash transactions, and a wages department, which are responsible for supervising the pay roll i.e. calculating and paying staff wages. The production function includes many different sections to help it run properly, Production and planning set standards and targets for each section of production. They monitor the goods or services that are being produced to make sure it is of the right quantity and quality, a comparator then compares what has been produced to what should have so that they can see if production is running smoothly and effectively. The purchasing dept have to provide the materials and equipment needed to make the product/service so that they can keep the production process working in order, the stores dept stock all tools, raw materials and equipment that is needed and finally there is the design and technical support dept who are responsible for researching improvements on existing products and also researching new ones. A technical department would give advice on working practices in order for them to estimate production costs.