DEPARTMENTAL

FUNCTIONS
CHAPTER 16
Laiba Khan, Aisha Khan, Marwa Dulaimi

WHY ARE BUSINESSES DIVIDED INTO

DEPARTMENTS?
Department: a section in a business where all
employees have similar skills and specialise in
particular activities.
Large businesses are broken down into smaller
departments so that the work can be done easily.
Each unit has employees that are specialised in that
job =better outcome.
The job is done faster because each department is
focused on a specific task.

FOUR DEPARTMENTS
1)
2)
3)
4)

Production
Marketing
Finance
Human resources

MARKETING DEPARTMENT
Department that analyses and decides how the
marketing will be done. They are responsible for the
product, price, place and promotion. Their main focus is
the customer.
Examples of activities involved with:
Market research
Product planning
Pricing
Distribution
Advertising
Packaging

PRODUCTION DEPARTMENT
It is responsible for making goods and
providing services. Also, they can be
responsible over other activities such as
Design, Purchasing, Stock Control,
Maintenance, Research and Development.
Examples of workers employed in production
department:
Primary sector: Shepherds, miners.
Secondary sector: Packers, assembly
workers, managers.
Tertiary sector: shop workers, police
workers, teachers.

FINANCE DEPARTMENT
The department responsible for administrating
and monitoring the financial transactions
carried out by the business. It takes care of the
money of the business and makes financial
statements.
Example of tasks carried out by the department:
Recording transactions
Wages and salaries
Credit control
Cash flow forecasting and budgets
Accounts

HUMAN RESOURCES DEPARTMENT

This department is concerned about the

employees and the environment.
They appoint employees based on their
profession, interview them and train
them.
Contracts are also a part of their job
such as employment contract.
They maintain good relationships and
communications with trade unions.
Employees are given instructions by the
HR department about discipline, rights
of employees, dealing methods and

RELATIONSHIPS AND INTERDEPENDENCE

BETWEEN DEPARTMENTS

Good communication needed between

departments to have a successful business
Examples of interdependence:
Production

dep. and marketing dep. regarding

mods to an order
HR and finance dep. regarding wages and salaries
Finance dep. and production dep. regarding
profitable designs (for a product)