2.1 The main functions within an organisation

　　The main departments in a business organisation are as follows:

　　DepartmentRoleKey concerns

　　Research and development§ Improving existing products

　　• Developing new products§ Anticipating customer needs

　　• Generating new ideas

　　• Testing

　　• Cost

　　purchasing§ Acquiring the goods and services necessary for the business§ Price and payment terms

　　• Quality

　　• Stock levels/delivery schedules

　　Production§ Converting raw materials into finished goods§ Quality (of materials and finished goods)

　　• Costs

　　• Wastage/efficiency

　　• Stock levels/production schedules

　　Direct service provision§ Providing service to clients (e.g. accountancy firm)§ Quality

　　• Time sheets/scheduling

　　marketing§ Identifying customer needs

　　• Market research

　　• Product design

　　• Pricing

　　• Promotion

　　• Distribution§ Customer needs

　　• Quality

　　• Promotional strategy

　　• Distribution channel strategy

　　• Pricing strategy

　　administration§ Administrative support

　　• Processing transactions§ Efficiency

　　• Information processing

　　Finance§ Bookkeeping

　　• Financial reporting

　　• Financial controls

　　• Budgeting

　　• The raising of capital§ Accuracy and completeness of record keeping

　　• Monthly management reporting

　　• Annual financial reporting

　　Human resources§ Job analysis and job design

　　• Recruitment and selection

　　• Performance appraisal

　　• Rewards (e.g. setting pay)

　　• Training and develop

　　• Grievances and discipline§ Staff competence

　　• Staff commitment/motivation

　　• Cost

　　• Staff welfare (e.g. stress)

　　• Compliance (e.g. equal opportunities legislation)

　　Test your understanding 7

　　Which of the following is not part of the responsibility of a research and development department?

　　A Improving existing products.

　　B Developing new products.

　　C Researching new technologies for application to future products.

　　D Researching market demand for products.