Business Functions

Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency. human resources involves ongoing strategies to manage and develop an organization’s workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company’s workforce. Personnel management is often considered an independent function of an organization.

Personnel management can include administrative tasks that are both traditional and routine. Production and operation management Production and Operations Management (“POM”) is about the transformation of production and operational inputs into “outputs” that, when distributed, meet the needs of customers. Marketers in a business must ensure that a business sells products that meet customer needs and wants. The role of Production and Operations is to ensure that the business actually makes the required products in accordance with the plan.

Production depends on PEOPLE, whose skills, experience and motivation vary. Key people-related decisions will consider the following areas: – Wages and salaries – Safety and training – Work conditions – Leadership and motivation – Communication Purchasing management Purchasing management directs the flow of goods and services in a company and handles all data relating to contact with suppliers. Effective purchasing management requires knowledge of the supply chain, business and tax laws, invoice and inventory procedures, and transportation and logistics issues.

Although a strong knowledge of the products and services to be purchased is essential, purchasing management professionals must also be able to plan, execute, and oversee purchasing strategies that are conducive to company profitability. A supply chain is a network of retailers, distributors, transporters, storage facilities, and suppliers that participate in the production, delivery, and sale of a product to the consumer. The supply chain is typically made up of multiple companies who coordinate activities to set themselves apart from the competition.

Purchasing management professionals must be good negotiators, understand technical product information, have good mathematical ability, understand spreadsheet software, understand marketing methodology, and be outstanding decision makers. Increased responsibilities in purchasing management require good leadership skills, and higher positions often require a master’s degree in a business related subject Finance and accounting Accounting involves the creation of financial records of business transactions, flows of finance, the process of creating wealth in an organisation, and the financial position of a business at a particular moment in time.

A number of users make use of accounts for different purposes: these are also refered to as stakeholders. The main users of accounts are shown below: Shareholders read accounts to examine the health of business, and the returns (dividends) that they can expect to make. Employees read accounts to see how safe their jobs are. The Inland Revenue read accounts to calculate how much tax businesses should be paying. Suppliers read accounts to check that the company they supply with goods on credit will be able to pay the money owed when it becomes due. In a typical large business the accounting function might be organised in the following way:

The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp dutyThe Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty

Financial accounting is concerned at one level with book-keeping i. e. recording daily financial activities, and at a more advanced level with preparation of the final accounts e. g. the profit and loss account and balance sheet. Management accounting is concerned with providing managers with management information such as information about costs, and forecasts of future costs and revenues. Financial information can be fed to those who require such information for decision-making and record-keeping purposes.

For example, managers need information in order to manage the business efficiently and constantly to improve their decision-making capabilities. This is especially true when analysing accounts using ratios. Shareholders need to assess the performance of managers and need to know how much profit of income they can take from the business. Suppliers need to know about the company’s ability to pay its debts and customers wish to ensure that their supplies are secure. Any provider of finance of the business (e. g. bank) will need to know about the company’s ability to make repayments.

The Inland Revenue needs information about profitability in order to make an accurate tax assessment. Employees have a right to know how well a company is performing and how secure their futures are. This helps towards the employer – employee relations. Sales and marketing sales The main function of a sales department is attract and retain customers. Many moving parts are tied to this but the number one objective is to attract and retain customers. That said, sales activities need to been co-ordinated i. e. , to meet the customer demand with appropriate supply.

The next is to increase the sales volume considering a particular period of time. Then to find appropriate persons/ agencies to carry out the sales activities. To help marketing department in meeting the sales volume fore casted by then. To give motivation by appropriate means to the sales persons and to give appropriate training to them in carrying out the sales activities successfully.. they analyze the demands of markets. they study the consumer’s psychology, study market fluctuations, prepare sale budgets, explore new markets and the process begins again – attract and retain customers, etc.

Marketing Marketing is about acquiring and retaining customers for products and services by delivering customer value. It is about having a finger on the pulse of the consumer so that it is possible to identify and create needs, and to cater to them effectively and efficiently. In order to do this, a firm has to constantly track consumers, monitor the environment, and keep an eye on competition. At Stern, we strive towards excellence in researching cutting-edge issues in marketing, and in delivering the best in the classroom.

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