Relationship between functional areas of a business

What Is the Relationship Between Organizational Functions & Organizational Structure? |

relationship between functional areas of a business

Many companies organize their employees into functional areas. Read on to learn what a functional area is, why a company might organize. Relationships between functional areas. MM Every business year has its ups and downs, and Every business year has its ups and downs. For a smooth business operation, certain functional areas need to be Part of a business' customer relationship management is having an.

Its function involves creating various marketing strategy and planning promotional campaigns. The production department is concerned with manufacturing the products, where inputs raw materials are converted into finished output through a series of production process.

Their function is to ensure that the raw materials are made into finished product effectively and efficiently and in good quality. This department should also maintain the optimum inventory level.

The sales department is responsible for generating revenue. The sales department is tasked to ensure that the sale of products and services results to profit. The sales department coordinates with the marketing department in terms of brand-awareness, product-launching and more.

From the time the product left the production department. It is important for a business to maintain and create relationship with their customers. Customer service should be provided before, during and after the purchase. This department focuses on giving good service support, especially to potential, new and existing customers.

relationship between functional areas of a business

A good relationship with customers will create customer-loyalty. This department is responsible for accounting, auditing, planning, and organizing finances.

Business Studies - Organisation Structure: Business Exam Tips

If goods are not suitable for the distribution channel, expenses involved in the distribution will be considered wasted. The distribution department is responsible for receiving orders and delivering orders to the customer at the right place, at the right time.

Functional Areas of a Typical Business

Through innovation, it will open new competitive advantage for the company. Research and Development acts as the catalyst in the innovation process. In essence, each division can carry out its business operations more or less autonomously. The drawback is that with employees in each division performing identical functions, you could end up with a lot of redundancy and inefficiency. For instance, managing five human resource operations, rather than a single, centralized operation, means duplication of functions, managements systems, policy development and so on.

relationship between functional areas of a business

Matrix Structure Using a matrix structure in your business can give you greater flexibility in business functions than a more hierarchical organization.

In a matrix structure, each employee works in a function-based department, such as marketing or finance, but they can be assigned to projects under different managers and teamed with employees who have different functions.

relationship between functional areas of a business

This structure adapts organizational function to changing organizational needs. The drawback is that the chain of command in a matrix may become cloudy and conflicted. Organizational Charts If you or your staff have trouble visualizing a proposed structure, you can use an organizational chart to see it clearly.

Relationships between functional areas by Michal Manugiewicz on Prezi

The New York and Erie Railroad developed the first organizational charts in the 19th century as a way to improve management efficiency. A chart shows the lines of authority and control running between different departments and levels of management. A well-designed chart will make it easy to see who makes decisions, who reports to whom and how your organization divides up its operating functions.