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Investigating people at work

The Functions of Businesses


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Lesson Objectives
In this lesson we will look at
How businesses are structured Tall and flat organisations Organisation structures The role of departments and the way they can be arranged The role of managers and supervisors

Investigating people at work - Functions

The Functions of Businesses


Every business can be divided up into a number of functions, or departments. Some organisations will have functions unique to them. Airlines will have an engineering function and a newspaper will have newsroom and advertising functions Typically these are: Production Marketing Sales Finance Administration Human Resources (HR) Information Technology (IT)

Investigating people at work - Functions

Production
In a manufacturing organisation the PRODUCTION function is responsible for planning the creation of the product and ensuring quality is maintained
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Marketing
Before a product is designed MARKETING will try and find out what customers want and plan advertising to attract them to the product
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Sales
Once MARKETING have found out what the customers want, the SALES function will try and persuade them to buy

Investigating people at work - Functions

Finance
This function covers every financial matter in the business such as Budgets Production costing Financial reporting

Investigating people at work - Functions

Administration
ADMINSTRATION creates and manages systems for keeping the business running. These might include: Catering Supplies Transport
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Human Resources (HR)


Personnel management, including: Recruitment Contracts of Employment Training Welfare Industrial relations

Investigating people at work - Functions

Information Technology (IT)


Responsible for systems such as
Internet Intranet Management and functional systems unique to that company Website management
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Tall & Flat Organisations


Tall organisations have a layered structure
Sales and marketing MAIN ACTIVITY Production Accounts Warehouse SUPPORTING ACTIVITIES Administration
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Today flat is more common, with main activity being supported by subsidiary activities (sometimes outsourced)

Organisational Structures
An organisation can be structured to reflect specific departments or, Can have more specific structures: By product or service By customer By process or equipment Matrix structure

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By product or service
Division by product Schools or service Examples are
A supermarket by products supplied The BBC by media and audience Local Council by services provided

Schools Parks

Planning Housing

Leisure Envrmnt
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By customer
Some businesses divide up by type of customer. A firm of solicitors might have these departments: Conveyancing Matrimonial Criminal Accidents & Injury Probate (wills etc)
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By process or equipment
Division by process or machinery A steelworks may have departments specialising in wire making, plate steel, stainless steel and so on An insurance company may have sections for accounts, claims, investments and so on

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Matrix structure
Allows cross referencing between functional departments and projectspecific teams Brings together specialists for a particular task Look at example on Page 17 of the textbook

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Activity
Think of an organisation you have been part of for example: Work experience Young enterprise Part-time work

Construct a simple organisation structure on the same lines as Figure 1.17 on p17.
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Role of Management & Supervisors


In typical organisation manager reports to director
Responsible for
Staff Planning, organisation and delivery Meeting customer needs

Supervisors usually have responsibility for


Specific group of workers Deadlines being met Supervision of staff Some legal responsibities (H&S for example)

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Lesson Objectives
In this lesson we looked at
How businesses are structured Tall and flat organisations Organisation structures The role of departments and the way they can be arranged The role of managers and supervisors

Investigating people at work - Functions

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