The 9 departments of a company, explained

A summary of the characteristics and functions of the company's departments.

No company is identical, but all of them have in common, especially the larger ones, that they are managed by departments.

Although they are not always the same from one organization to another, each one has different functions and aims to achieve specific objectives.

Here we are going to see which are the most common departments in a company, their functions, objectives and who are the people in charge of them.their functions, objectives and who they are made up of.

The departments of a company

There are several departments that a company can have, varying according to its size, number of employees and needs. Basically, the departments present in most organizations are the following.

1. Financial department

The financial department is the one that obtains, as its name suggests, financing. This financing must be required for the company to be able to cover the costs of its needs.. In addition, the department plans what is necessary so that the organization always has money and can meet its payments in a timely manner, having a healthy financial situation.

The accounting functions of this department control aspects such as inventory valuation, cost accounting, balance sheets, records, preparation of financial statements and business statistics.

2. Human Resources Department

The objective of the human resources department has to do with making sure that the human group that works in the organization functions adequately. This department makes sure to hire the most suitable people for the job, through recruitment, selection, training and development.

In essence, this department ensures that workers have updated and relevant knowledge to what is demanded in the company, in addition to behave according to the objectives to be achieved.

Also, a fundamental function of this department is to make sure that the workers are motivated and, in case there has been any incident among them, to try to see what ways to take to make sure that it does not harm the social relations within the organization.

3. Marketing department

The marketing department collaborates with the commercial department (in some companies, they are one and the same department) in order to achieve more and better salesThe marketing department is responsible for ensuring that customers are treated appropriately, inviting them to return for the product or service offered by the organization.

The marketing department gathers information on factors and facts that influence the market, with the intention of modifying and updating its product or service to make it more attractive to the consumer. It is also responsible for distributing the product so that it is available at the right time, in the right form and quantity, in the right space, and at a competitive price - not too expensive for the consumer not to buy it, but not too cheap for the company to make a loss.

4. Sales Department

If separate from the marketing department, the sales department must ensure that business, departmental and individual objectives are well defined. As far as possible, the responsibility and authority necessary for the achievement of results should be delegated.

The people to whom power has been delegated must be capable of exercising it and, as a personal value, believe in what they are doing. Otherwise, no organizational structure will be of any use.

Principles of the sales department

Within this department there are some principles that are fundamental for the organization to function properly.

The first is that there is unity of command. Each commercial unit will report to a single manager, who will work directly with him. Managers should be aware of the number of employees they are responsible for and the delegation of tasks should be clearly defined.

All company functions must be defined in writing, down to the smallest details, to ensure that there are no misunderstandings or ambiguities in communication. Supervisions to ensure that this condition is met must be done in a timely and constant manner in order to be effective.

Also Attempts should also be made to maintain the stability of the staff.. In other words, the turnover among workers should be as low as possible, motivating them and telling them exactly what they have to do to avoid frustration or feelings of incompetence. In the event of attrition, a program should be put in place to avoid major losses in efficiency and profitability, and to ensure that the customer continues to be well served.

The organization must be flexiblecapable of adapting to changing market situations. There should be a program focused on preventing unfavorable economic situations and planning changes in the business to make it more efficient and competitive in the context that may arise.

In case the company is expanding, that is, is gaining more sales or has a greater economic capacity to open new branches, it should be foreseen how the staff will be expanded, in order to have a sufficient number of employees and avoid that some businesses are left more unattended than others. In addition, expansion will require good coordination among the various sales representatives.

5. Purchasing department

The main function of the purchasing department is to to acquire good raw materials or parts to be used in manufacturing, at a reduced cost, of high quality, and, whenever possible, without and, whenever possible, free of manufacturing defects.

This department is present in every company and is responsible for acquiring the inputs, i.e. materials and objects necessary for the proper functioning of the organization, which are indispensable for the production of goods and the provision of services.

Objectives of the purchasing department

This department has the following objectives:

• To buy the necessary materials.
• To have them on time.
• To ensure that there are enough of them.
• Obtain the materials at a good quality-price ratio.
• To have more than one source in case of an emergency.
• Anticipate changes in material prices, inflation or shortages.
• Control what is purchased.

Functions of the purchasing department

While its primary function is to purchase materials, the purchasing department must ensure that they are properly stocked.. To this end, the process of reception, classification, inventory and control of goods according to their size and weight must be taken into account.

Depending on whether the company can afford it or not, the quantity of products purchased must be controlled and excesses that can spoil over time must be avoided, since this entails economic losses.

Once the purchasing department has obtained all the necessary materials, it is within its competence to provide the other areas of the company with the necessary materials. to provide the other areas of the organization with them, taking into account the type of object to be supplied.Once the purchasing department has obtained all the necessary materials, it is within its competence to supply the other areas of the organization with them, taking into account the type of object or material, its quantity and dimensions.

6. Logistics and operations department

The logistics and operations department is considered one of the most important, since it is the essential engine for the competitiveness of the organization and its economic development. In addition, As new technologies are becoming more and more powerful, this department is becoming more and more necessary, especially when selling products electronically.especially when selling products electronically.

In recent years, the number of people shopping on the Internet has been increasing. The act of shopping has been delocalized from shopping in a physical store to shopping from anywhere, such as the comfort of your home. The problem with this type of transaction is the delivery and return of the products purchased in this way..

The logistics of the companies ensure that the product can reach its recipient, either through a special delivery service or through other companies specialized in deliveries.

7. Management control department

The management control department is a part of the company, created and supported by the management, which allows it to obtain the necessary and reliable information when making the appropriate operational decisions.

Management control measures the effective and permanent use of the resources that the organization has, in order to achieve the objectives previously set.The management control measures the efficient and permanent use of the organization's resources in order to achieve the objectives previously set by the management.

Functions of the management control department

Among the functions of this department we have:

• Reduce business risks and contingencies.
• To direct objectives assigned to the different people in charge.
• Controlling the degree of fulfillment of these objectives.
• Strategic planning.
• Adapt the structure of the company according to the results obtained.
• Modify long-term objectives according to the results obtained.

8. General management

The general management could be said to be the head of the company. Normally, in small companies, the general management is the owner the figure of the owner, while in larger companies it is the responsibility of several people..

This department is the one that knows where the company is going, establishing the objectives of the company as a whole. Based on this it prepares a business plan, with organizational goals and knowledge of the organization as a whole, which it will use to make decisions. which it will use to make decisions in critical situations.

Functions of the general management

Among the main functions we can find:

• Coordinate all areas of the organization.
• Control over each business unit.
• Strategic planning.
• Resource management.
• Measurement and control of results.
• Evaluation of the organizational structure.
• Reporting to headquarters (multinational companies).
• Value creation and representation of the company before external organizations.
• Tactical decisions and change management.

9. Steering Committee

Actually is not a department per se, but rather a level of the organization.. It includes the Senior Management, i.e. the people who manage the company as a whole and by department.

This part of the company is made up of:

• The president
• The general managers
• The directors of the departments

These superiors meet with certain frequency, talking and setting the strategic line to be followed by the company. to be followed by the company.

The objectives of this part of the organization are basically two:

• To generate wealth.
• To know what the company is like at a specific moment in order to where to direct it.

Bibliographical references:

• Bernus, P., Nemes, L., and Schmidt, G. (2003). Handbook on Enterprise Architecture.
• González Hernández, N. L. (2015). Functional areas of an enterprise. Retrieved from https://www.gestiopolis.com/areas-funcionales-de-una-empresa/