GCSE / Level 2 Revision Notes

People management - Functions in a business

Once a business has been properly established and has taken on a reasonable number of employees, the organisational structure will involve the business being splits into number of different departments, each of which has a specific job or task to do - these are called 'functions'.

The main functional areas of a business are outlined briefly below:

Human Resources / People

Marketing

What it does:
Responsible for all aspects of managing the people who work in a business.
Main activities:
Organise hiring employees (recruitment)
Set up and manage employment rules
Organise employee training & appraisal
Monitor the working conditions for employees
Manage communication with staff
Ensure business complies with employment-related legislation

What it does:
Responsible for understanding the needs and wants of customers
Main activities:
Research into the market
New product development
Development and delivery of promotional campaigns
Setting and monitoring prices
Ensuring suitable distribution
Obtaining and auctioning customer feedback

Production / Operations

Accounts / Finance

What it does:
Organises the transformation process that turns inputs (e.g. materials, people) in finished goods and services
Main activities:
Organising suitable method of production
Controlling the use of inputs to produce efficiently
Managing the quality of finished output

What it does:
Manages the financial resources of the business and reports on the financial position & performance
Main activities:
Allocating and monitoring the use of financial resources through budget
Ensuring business has sufficient cash to enable it to pay its liabilities as they fall due
Reporting on financial performance
Ensuring business meets legal requirements re financial reporting


 
 

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