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Departments in a Business Organization

ArticleID 132  
Writer Isaac Thuku
Category Personal Article

Every business organization needs a well defined structure in order to perform its duties efficiently. This is regardless of size, status or location. Just like a hand which has fingers each doing a specific task for the whole body, a business organization has many departments which strive to increase profits and functionality.

Human Resource (HR) or Personnel Department involves recruitment, training, motivation, promotion, demotion, suspension, retrenchment and firing of employees in a business organization. Sometimes employees are dismissed to pave way for investigations after a scandal and even fired after the investigation report shows they are guilty of a certain mistake or crime. Others are made redundant when the business needs to reduce the number of employees either because it is closing down one of it’s’ branches or for cost reduction.

Public Relations (PR) Department deals with the way organizations, companies and individuals communicate with the public. It also helps in spreading information from one department to another within an organization.

The Production Department is responsible for converting inputs into outputs through production processes. The Production Manager is responsible for making sure raw materials are provided and turned into finished goods. He supervises all production processes and ensures no mistake is made in whatever stage.

The Purchasing Department provides materials, components and other equipment required. It ensures that stocks of high quality arrive on time. Stock control is adapted as too much delay in delivery will halt other departments like production which depends directly on purchasing.

The stores department is responsible for stocking all the necessary tool, raw materials and equipment needed for the production process. Raw materials should be of the required quantity and quality in order to enable efficient production.

The Design and Technical support Department is responsible for the design and testing of new products. It also develops prototypes through the final product. Creative designers come up with unique and brilliant designs for competition purposes. This department ensures the design works out well.

The works Department is responsible for the manufacturing of tools used in production. It involves maintenance and repairs. Quality control and inspection is carried out in this department. Marketing and Sales Department is responsible for the sales and distribution of products to different regions. Research department is responsible for market research and testing of new products and ensuring they are ready for sell. Promotion department decides which products are to be promoted and plans the necessary advertisement means. Distribution department deals with the transportation of products to the market.

Finance Department keeps records of purchases and sales made by the business. It mainly deals with Profit and Loss accounts and balance sheets. Employee’s wages and salaries are calculated by the finance department. The Finance department also collects income tax.

Business Organizations may have more departments like Technical department, logistics department and the Procurement department. This varies from the activities of one organization to another. These departments help in task allocation in an organization as each department handles a specific work. Employees know their duties and time wasting is discouraged. Working together is necessary for each department to be productive.

Departments in a Business Organization
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