Departments of a company What are their functions? ▷➡️ Postposm

In the following article, we will explain what are the departments of a company And what role does each serve?

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Departments of a company

It is normal that when you start your own business, you want to maintain order, in this way the work will be more fluid and you will have better results, but for that, each person must fulfill their role within the company, in other words, each company must to divide into departments that fulfill a specific function to keep the work flowing.

All these departments fulfill a responsibility in order to achieve the objective within a company.

Not all companies can afford to have all the departments they should have or the number of people needed for each one, that is, you cannot compare the specific organization of departments that a large company with higher production would have, to a smaller one such as a family.

Importance of assigning departments in a company

Maintaining a constant and organized flow within a company is of the utmost importance for it to function correctly. Sometimes the size of the company can influence how many departments you will need, but in the same way, regardless of the amount, the sum of all these departments help you achieve your goal as an entrepreneur.

Dividing these departments by function allows a single person not to become overwhelmed and can only carry out the work for which they were hired.

What are the departments of a company?

Depending on the needs of your company or business, as well as its size, you should have one of these departments:

Management

Although this is not considered a department of a company, it fulfills a series of jobs within it. Its function is to supervise the different departments that your company has and make the final decisions, although of course, it must explain the reason why I made a decision, before the authorities above them, that is, the owners of the business. or mark.

Administration Department

It is responsible for compiling and reviewing the work within the company, making preliminary reports which went through a study, before sending it to management or superiors.

Within the administration, there are two other departments, which often work together on their own. These are:

Human Resources

It is a group of people who are in charge of recruiting and managing workers within a company. This department is entrusted with the task of ensuring that each person who is hired is able to meet the expectations of their work, in other words, that they are fit enough for the job.

In addition to this, they have many more functions such as: the training of new employees, salaries according to the job position, vacation assignment, compliance with regulations, promotions, promotions, among others.

Human resources has to maintain good employee management and ensure that the work environment is stable and safe, so that everyone feels satisfied with their work.

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It is located within the administrative area, it is in charge of reviewing contracts and ensuring that none of the current regulations is being breached.

Department of Finance

It is that department that is in charge of any economic matter within the company, such as investments or the circulation of capital. It provides indicators, they help you to make management decisions.

It is also responsible for analyzing the financial situation of the business, as well as the risks, efficiency and cost structure.

Large companies consider the area of ​​finance, accounting and treasury as one, although in reality, the three fulfill different tasks:

Accounting

It is responsible for recording financial movements. This area records any purchase within the company, with what capital said purchase was made, how it was made and where that money went. In addition, they record movements between accounts, that is, when money moves from one bank to another.

It is advisable to reduce the operating expense of accounting personnel, using software to maintain order, these avoid the possibility of errors, although these can be costly.

Treasury

It is in charge of collecting and paying everything that is related to the company, be it the payroll, clients, taxes or suppliers. In treasury, there must be a prior study to determine the best time to collect the money owed and pay for the services administered to the company.

When we refer to treasury, we are not talking about the company’s money being directly invested in a raw material.

For more information on how to make Financial mathematics, we invite you to read our article, which will help you.

Marketing or merchandising department

It is the department that is in charge of the advertising campaigns of the company. Study the market related to the company, and look for the best method to promote yourself within it, to attract current or potential customers.

Among the functions carried out by the marketing department, we can mention some of the following:

  • Organize events within the company.
  • It manages the publicity that is given to a product, be it the image or the communication method that will be used.
  • It helps to carry out and promote the discounts that are made, be it for one product or several.
  • Organize promotions inside and outside the business.
  • Creation of the media that will be used for a campaign, whether traditional (television, radio, newspapers) or digital (social networks, web pages, blogs), as well as their maintenance and administration.
  • Advertising media design.

The objective of this department is the same as that of marketing, to study the needs of the public and develop a product that adapts to them, with the aim of increasing sales and attracting future consumers.

commercial department

In addition to distributing and warehousing the products, it works alongside the marketing department to promote and provide customer service, as well as support and technical assistance. The commercial department is also in charge of carrying out its tasks, together with other departments for the benefit of the company, among those we have:

  • Works with budgets together with the finance department.
  • Establishes marketing campaigns in conjunction with the marketing department, in addition to managing promotions and offers.
  • Set the price range on a product. This is done together with two other departments: Marketing and Finance.

This department must try as little as possible to make rotations, to simplify, maintain a stability of the work staff.

purchasing department

This area is responsible for determining where it is best to acquire the raw material, at the best price and quality, depending on the function or purpose of the company. If it is an office, this department would be in charge of procuring supplies and equipment.

In the case of a food business, it would entrust the task of acquiring the ingredients and utensils.

For example: If you had an Italian food restaurant, the purchasing department would be in charge of selecting which is the best place to get the ingredients, whether they are the vegetables for the sauce or the flour to make the pasta, making a relationship between quantity and the price.

Logistics department

It is the department that is responsible for marketing and distributing the company’s products, as well as carrying out return and acquisition tasks. It also fulfills the task of looking for the supplier or seller, who gives them the raw material, this saves the task of going personally to look for them, since they will bring it for you. In fact, if you have several locations, the supplier must go to each one to make deliveries.

With the aforementioned example, if the purchasing department is in charge of obtaining the ingredients, the logistics department has the task of acquiring them and selecting where they will be distributed among the different stores or restaurants.

Production departament

It is responsible for carrying out the process of creating a company product, going from the resources or inputs to the final product. They determine the most economical way to do something, and the personnel needed for it.

This type of department will carry out joint work with the logistics department and the purchasing department.

How to organize the departments of a company?

Among all the departments that exist within a company, there is a way to organize them, this is called: Departmentalization.

Departmentalization consists of the organization of the activities carried out in a company, which are grouped according to their function, that is, the formation of departments that carry out a task for the benefit of a company, business or brand.

In the organization of the departments of a company, many elements must be taken into tài khoản, such as its size, because a small business is not the same as a large production company or a supermarket located in several places.

These two have different needs and functions, depending on that, a single department can take care of several things or, in other words, a department can have sub categories.

Another thing that must be taken into tài khoản is the presence of your company at a geographical level, this means, if you are in a single place (city) or in different countries, it could even become a different continent.

Although all this focuses on one objective: What do you want to achieve with your company? This is the idea when making the departments of a company, that they fulfill a job, to reach the purpose of a company.

There are many types of departmentalization depending on the type of company you are developing, among these we can mention:

Traditional departmentalization

This type is based on Michael Porter’s value chain, which establishes the function of each department of a company and how they are related, with the purpose of reaching an objective that it establishes from the beginning.

This departmentalization has four departments: Administration/Human Resources, Production, Accounting/Finance, and Marketing/Sales. Above these, we can find general management.

A disadvantage of this method is that things are grouped together that, although they are similar, are not the same, such as marketing and sales.

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Geographic departmentalization

Departments are generated depending on the region or country where it is located, or departments of the area are created, that is, one for the beach, another for the mountains, etc. This greatly influences the form of distribution and factors to take into tài khoản, such as the climate.

demographic departmentalization

This type takes into tài khoản the needs of the public you want to address, focusing on: age, gender, nationality, etc. It can even be taken further, such as the public depending on the social network.

Departmentalization by product

It is quite useful when you have a company that makes multiple products. For example: if you have a technology company, you can have a department for phones, others for computers, etc.

departmentalization by process

It consists of dividing the process of a product, in different responsible departments. For example: a single team that is in charge of obtaining the raw material, another of the production and another of the distribution, the point is that it only be in charge of that task.

Disadvantages of not having departments of a company

A very common mistake made in companies is to believe that all workers with a similar education can perform the same function, which is illogical.

For example: Let’s say you did a study on cooking. It is a common mistake for restaurant owners to think that you know everything related to food, just because you have studied cooking, when in fact it is not true.

As a cook, there are multiple specialties, which can be: chef cook, pastry chef, pastry chef, among many others. That is to say, if there was no humanities department that assigned you to a position according to your skills, you could be a pastry chef working in the meat area, that could incur mistakes and generate losses.

The studios may be similar, but they are not the same, there must be an organization by sectors to avoid chaos.

Many potential talents are wasted when they are not used in the area that is required, that is why the departments in a company are so important, since they allow dividing the different areas and assigning the best qualified person to carry out a single task. work.

The departments in a company were created for each person to carry out the work for which they study and develop within that area in order to benefit the company.

We invite you to watch the following video for more information: