Business departments

The most popular way of organising and administering human, financial, and physical resources in a business system is to divide them into separate departments. Departments allow people to specialise in particular job areas and to improve their skills and performance.

The functions of the various departments one might find in a large organisation are detailed below. However, it is important to realise that even in a small organisation the same broad functions will need to be performed by staff or owners.

Finance and accounting. The accounting department must operate administrative systems capable of making and recording payments, keeping track of costs, maintaining up-to-date accounts, paying wages, and auditing. These administrative systems must ensure that accounts are kept in an organised and easily accessible form, so that:

· year-end final accounts are produced in accordance with the Companies Acts;

· records are kept of petty cash and other expenses, and invoices and statements sent to customers;

· careful control is maintained over debtors and creditors accounts;

· legal requirements and tax liabilities are met;

· information is available alllowing the management accountant to plan, make decisions, and control the financial operation of the business.

Many organisations today use a computerised accounting system which links the various parts of the accounting records, called an integrated accounting package, and makes the recording of financial transactions much easier and faster.

Human resources (personnel). The functions of the personnel department in a firm are many, and will include:

· recruitment and selection;

· advertising vacant posts;

· Education and training

· health and safety;

· working conditions;

· employee welfare;

· dealing with employee grievances;

· discipline;

· promotions and transfers.

The main purpose of an administrative system in personnel, therefore, is to develop routines to carry out these functions and maintain accurate records on each employee, including:

· name, address, date of birth, telephone number;

· sex, number of dependants, marital status, next of kin;

· nationality and place of birth;

· national Insurance number

· education history and qualifications;

· past and present employment details;

· present job, title, responsibilities;

· salary or wage rate;

· outcome of appraisal interviews;

· any disciplinary actions;

· training and development undertaken.

Today, most personnel records are stored on computer. Because much of the information is personal to individual employees, the personnel department must be fully aware of the requirements of the Data Protection Act.

Purchasing. The main role of the purchasing department is to acquire materials, components, equipment, and other goods and services necessary for production. It involves:

· Finding and negotiating with suppliers

· Ordering

· Dealing with the requirements of other departments

· Taking delivery

· Checking goods and services received against orders

· Arranging the payment of invoices through the finance department

· Keeping records

Production. The role of production is to provide the product at the right quality, quantity, and cost when customers want it. Administration in production can be judged by how successfully the system ensures that production meets these targets. The administrative system must be capable of:

· ordering materials in advance;

· arranging for storage;

· scheduling routine maintenance of plant and equipment;

· liaison with personnel to ensure that there are sufficient staff with the right qualifications and background;

· providing cost information to the finance department.

Sales and marketing. The role of the sales administration system is to ensure that once the customer has agreed to the sale, the transaction is completed quickly and smoothly. For example, the sales system would need to ensure that:

· all sales information is processed quickly;

· customer inquiries are recorded and dealt with promptly;

· sales budgets are prepared and monitored;

· sales representatives’ expense claims are checked and then passed to accounts for payment;

· credit is arranged for customers where appropriate;

· customer orders are processed and sent out promptly;

· customer care, such as after-sales service, is provided;

· goods and services are advertised and promoted effectively;

· market research information is collected.

Sales departments in most medium-sized and large organisations keep their customer records on a database along with product details and prices etc. Some businesses, like McDonalds, are able to monitor sales of particular products day by day at their headquarters by receiving reports from their franchise stores via electronic mail. This kind of administrative system allows the firm to adjust its promotions, advertising, and prices in response to local conditions.

An important area of marketing is customer service. Good customer service can help to improve an organisation’s image among consumers, resulting in increased sales. Many organisations have customer service departments to look after customers once a sale has been made and to deal with complaints, repairs, providing replacements, etc. A good administrative system will make sure that customer inquiries, repairs, or complaints are dealt with quickly.

Distribution. The role of distribution is to ensure that goods and services are available to customers when they want them. The function of the administrative system in distribution is to ensure that the right goods are delivered in the right quantities by the time agreed with the customer at the minimum cost. Achieving this may involve the following tasks:

· delivering supplies to other organisations;

· choosing delivery methods, e.g. by road, rail, air;

· distribution of finished products to wholesalers, retail outlets, or direct to consumers;

· checking in goods received;

· storage;

· checking goods out;

· monitoring the movement of goods and work in progress within a factory;

· monitoring the movement of goods within a retail outlet (i.e. from the stockroom);

· stock control to ensure goods are available when they are required.

Information Technology forms the backbone of most administrative systems in distribution. The use of bar-code readers means that stock can automatically be re-ordered when a central computer notes that remaining stocks are down to a pre-set level. Many large transport firms use ‘route master’ computer programs which produce a route map for the driver, taking into account the time of day and likely road conditions in order to give the quickest route to the destination.

Support services. The support service department (sometimes known simply as administration) in a firm provides a variety of services to all of the other departments. These services might include cleaning, maintenance of equipment, security systems, central filing, and catering. Often support services may contract out tasks to other organisations, for example offering a cleaning contract for tender. The support services administrative system must be capable of managing contracts and carefully monitoring the quality of services offered by sub-contractors. A good system will also carefully monitor the views of consumers using the services and channel feedback through to service providers.

Дата добавления: 2015-12-08