Functional Departments of a Business

Every business organisation works for a collective goal or objective. The organisation is internally divided into various departments which work together to fulfill business objectives.

Functional Departments of a business

Finance Department:

• Controls money supply within the business
• Responsible for preparing all the statements of account and budgets
• Prepares ratios in order to monitor the financial position of the business
• Conducts tax calculations - Income tax & Corporation tax

Production Department:

• Converts raw materials into finished goods
• Purchases raw materials
• Maintains stock of raw materials. work in progress and finished goods
• Responsible for maintaining machinery and hardware

Human Resources(HR) Department:

• Controls the welfare of workers(Payment + Motivation)
• Responsible for hiring and firing workers
• Arranges training programs and seminars
• Evaluates employee performance

Marketing Department

• Responsible for the 4Ps (Product, Price , Place, Promotion)
• Sets targets for the firm
• Deals with customer complaints and takes necessary action
• Performs market research

Research & Development(R&D) Department[Optional]:

• Designs new products
• Updates existing products
• Finds cheaper production processes