Business Organizational Units
In each organization, there are different units in which some major ones are as follows:-
1. Personnel Department
The responsibility for the recruitment, guidance and integration, motivation maintenance, supervision, and discipline of the human resource fall on this department. It is very crucial to have a workforce that is well motivated and loyal to the authority of the organization so as to achieve the set objectives and goals.
Functions of Personnel Department
(i) Employment: The right and qualified personnel are engaged for better achievement of the overall objectives of the company.
(ii) Training and Development: Training and education ensure personnel development of the job holders who will achieve with less supervision. To get the best out of the workers, training programmes such as job rotation, in-service course, on-the-job training, management training, seminars, workshops as well as various other programmes assist the firm to get the best out of the workers.
(iii) Welfare of Employees: Medical services, canteen overtime allowance, leave allowances, efficiency awards, gratuities, pensions, etc are part of the functions of this department.
(iv) Wages and Salaries Administration: Every job seeker wants to be gainfully employed therefore, the personnel department must make sure that each workers is adequately remunerated for the amount of work done.
2. Production Department
This section of the organization deals with the transformation of raw materials into finished goods.
The general meaning of production covers the following:
(i) Consideration of the market: As production continues, attempts must be made to assess the potential sales of a new product and an estimation of the price at which the product will find a market.
(ii) Production to Order: Production may be in response to an order.
(iii) Design on Technical Problems: There must be cooperation among engineers since the design of the product and method of production have mutual influence on each other.
(iv) Availability of Resources: Plans must be made to ensure the supply of materials components and power. The required amount and type of both plant and equipment must be made available.
Functions of Production Department
1. Production Planning and Control: This deals with the designing of products that consumers need and factories can produce. It is an exercise that ensures proper consideration for quality that will not be rejected by customers owing to one deficiency or another.
2. Transformation of the company’s raw materials into finished goods according to production, design and specification.
3. Maintaining adequate Communication links with purchasing and sales department to ensure uninterrupted flow of materials and satisfactory services to the company’s customers.
4. Constant plant and maintenance and machine overhaul.
5. Providing regular training to production staff to achieve better productivity and reduce the rate of accidents on the job.
3. Marketing Department
It is the popular opinion that production is only complete when the product or service produced gets to the hands of the final consumers. The function of the business aspect of the completeness of production is the sales or marketing unit.
Marketing is therefore a business activity directed at identifying customers’ needs, planning strategies to meet these needs, and making these needs available to the customers in the right quality, quantity at the right time and at the right – place.
4. Purchasing Department
This department in an organization sees to the arrangement and purchase of all items needed by the business during the production process.
The department performs the following functions.
(i) Purchase of raw materials.
(ii) Purchases of assets such as plants and machinery.
(iii) Provision of Warehousing.
(iv) Storage and control of stock.
This is concerned with the financial aspect of the organization. There are various divisions like accounting, costing and auditing within this department. The main functions of the finance department are;
(i) To control expenditure
(ii) To take account of revenue
(iii) To keep proper books of account
(iv) To calculate personnel emoluments, wages and salaries
(v) Cash control
(vi) To ensure that profit justifies investment
- Identify five major departments in an organization
- State five functions of production department
- Identify the functions of a personnel department