Functions of Various Departments in an Organization

Various departments in an organization

The different functions or departments of an organization have different roles and duties, which are all aimed at achieving the overall objectives of the organization. The key functions of each department are explained below:

a) Production Department

  • Manufacturing goods for the business to create value for the customer
  • Designing goods and services to meet the needs of the customer
  • Controlling the production processes involving inputs and processes to create outputs – turning raw materials into finished products
  • Implementing changes to existing products to improve them
  • Producing goods at low costs to increase profit margins
  • Proper maintenance of equipment and machines in the production process

b) Research and Development Department

  • Developing technologies for running operations and implementing strategy for the firm
  • Carrying out research to identify innovative ideas to help the company in its growth
  • Conducting new product research to identify opportunities for developing new products and creating new markets
  • Carrying out new product development by coming up with creative and innovative ideas
  • Upgrading new products and quality control checks
  • Keeping with competition through innovation and adapting to new trends in the market

c) Purchase and Supply Department

  • Purchasing raw materials and other resources to be used in production
  • Working on costs of production – e.g. acquiring materials in large scale to achieve low costs of production
  • Keeping records of purchases and materials
  • Negotiating with suppliers and establishing good contracts and partnership with them
  • Ensuring compliance with company and industry policies

d) Marketing Department

  • Establishing distribution channels of the organisation – how products and services are delivered to customers.
  • Identifying marketing strategies to promote the organisation such as advertising through TV, digital marketing, publicity, etc.
  • Communicating and responding to requests and concerns of customers
  • Carrying out market research – gathering information about customers, their needs, competitors, and overall market suitability
  • Determining prices of products and services
  • Carrying out sales forecast and strategy to improve sales e.g. through personal selling.

e) Human Resources Department

  • Determining staffing needs in the organization – carrying out job analysis and developing job descriptions and specifications.
  • Hiring and recruiting employees to fill open positions in the organisation
  • Maintaining employee relations through negotiations, motivation, improving working conditions, and rewarding good performance
  • Managing conflicts and administering grievance procedures and disciplinary action.
  • Managing employees’ health and safety
  • Administering employee redundancy and separation procedures

f) Finance and Accounting Department

  • Keeping financial records – recording transactions involving money inflow and outflows
  • Preparing financial statements such as statement of cash flow, income statement, and balance sheet
  • Performing payment administration functions such as paying employees, determining wages and salaries, and maintaining income tax, allowances, and insurance records.
  • Preparing and disclosing financial reports to key stakeholders for effective decision making.
  • Developing budgets for the organization and other departments
  • Carrying out financial forecasting and planning for various projects to determine their viability.

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