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Every organisation is made up of different department. Each department contributes to the running of
the business. The most common departments are:
Production
Finance
Human resource
Production Department
The production department is responsible for converting inputs into outputs through the stages of
production processes. The Production Manager is responsible for making sure that raw materials are
provided and made into finished goods effectively. He or she must make sure that work is carried out
smoothly, and must supervise procedures for making work more efficient and more enjoyable.
There are five production sub-functions
Purchasing department
This department will provide the materials, components and equipment required. An essential part of
this responsibility is to ensure that stocks arrive on time and are of good quality
The role of Human resource department is in charge of recruiting, training, and the dismissal of
employees in an organisation.
Induction training
2.
3.
Off-the-job training
Manpower Planning
The HR department needs to think ahead and establish the number and skills of the workforce
required by the business in the future. Failure to do this could lead to too few or too many staff or staff
with inappropriate needs.
Dismissal and Redundancy (retrenchment)
Dismissal is where a worker is told to leave their job due to unsatisfactory work or behaviour.
Redundancy is when the business needs to reduce the number of employees either because it is
closing down a branch or needs to reduce costs due to falling profits. It may also be due to
technological improvements, and the workers are no longer needed.
Marketing department
These are the main section of the market departments:
Sales department is responsible for the sales and distribution of the products to the different
regions.
Research & Department is responsible for market research and testing new products to
Finance Department
Keeping records of the purchases and sales made by a business as well as capital spending.
Preparing Final Accounts
Managers require ongoing financial information to enable them to make better decisions.
Management of wages
The wages section of the finance department will be responsible for calculating the wages and
salaries of employees and organising the collection of income tax and national insurance for the
Inland Revenue.
Raising Finance
The finance department will also be responsible for the technical details of how a business raises
finance e.g. through loans, and the repayment of interest on that finance. In addition it will supervise
the payment of dividends to shareholders.