Functional Areas of a Business

Functional Areas of a Business

By Jah Lion

Give three examples of very small businesses

Give three examples of very large businesses

Some text here about the topic of discussion

State differences in the running of the large businesses vs the running of the small businesses. How are things done, like making of goods and service, advertising, hiring people etc?:

1. ​

​​2.

3. ​

4.

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Objectives Today!

• ​Define the term 'Functional Area/Department'

• Understand the four basic Functional Areas in an organization

• Recognize and Explain the functions of each Functional Department ​

Open Ended

What are functional areas or functional departments

Open Ended

What does the word functional mean?

Open Ended

Do you know of any areas, sections or units in a business that carries out special activity, roles or tasks?

Areas or departments

For businesses to be competitive it's important that their functional areas ​carry out their activities as efficiently as possible, optimize the use of resources, and to know their environment.​ Each department activity is linked and therefore if each works efficiently, the whole organization will be productive and profitable. Its like various parts of a body

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Production department

A production department is a group of functions within a business that is responsible for the manufacture of goods. This can include just a few specialized functions with all other work outsourced, or a fully functioning department that converts raw materials, assembles components into finished goods, and packages them.

Open Ended

Say what a functional area is in your own words

Open Ended

In your own words what do you think the production department does?

Marketing department

A marketing department promotes your business and drives sales of its products or services. It provides the necessary research to identify your target customers and other audiences.

Multiple Choice

The Marketing & Sales Department is responsible for ensuring the warehousing of finished goods.

• True

• False

Multiple Choice

The Production/Manufacturing Department is responsible for pricing the product.

• True

• False

Multiple Choice

The Marketing & Sales Department is responsible for designing the product.

• True

• False

Human resources department

A company's human resource department is tasked with the training and development of its workers, who are considered some of the company's most important resources.

Multiple Choice

The Personnel or Human Resource Department is responsible for deciding on suitable methods of pay for the workers.

• True

• False

Multiple Choice

The human resources function of a large organisation is most likely to:

• Purchase a new accounts package

• update its supplier database

• recruit an additional employee

• use social media to encourage more sales

​Finance department

Finance Department is the part of an organization that is responsible for acquiring funds for the firm, managing funds within the organization and planning for the expenditure of funds on various assets. It is the part of an organization that ensures efficient financial management and financial control necessary to support all business activities.

Multiple Choice

 What is the main function of the finance department?

• Deals with people working in a business

• Deals with all aspects of making a product

• Deals with all aspects of money in a business

• Deals with what customers want

Multiple Choice

Which functional area is most likely to purchase stationery supplies for the organization

• Business support services

• Marketing and Sales

• Production

• Finance

Multiple Choice

. 

One of the reasons for separating business operations into functional areas is to allow each to operate within its area of expertise, thus building efficiency and effectiveness across the business as a whole.

• True

• False

Multiple Choice

 What is the main function of the human resource department?

• In charge of everday duties

• Deals with money in a business

• In charge of making decisions about what customers want

• Deals with people working in a business

Pay attention to the following activities. Choose the department they are likely to occur

Multiple Choice

Control of assets

• Marketing

• Finance

• Production

• Human Resource

Multiple Choice

Product Design

• Marketing

• Finance

• Personnel

• Production

Multiple Choice

Distribution of Goods and Services

• Finance

• Marketing

• Human Resource

• Production

Multiple Choice

Recruiting

• Personnel

• Marketing

• Production

• Finance

Multiple Choice

Training

• Production

• Finance

• Human Resource

• Marketing and Sales

Multiple Choice

Quality control

• Marketing

• Production

• Finance

• Personnel

Multiple Choice

Market Research

• Marketing

• Production

• Finance

• Operations

Multiple Choice

Accounting

• Marketing

• Production

• Human Resource

• Finance