The 9 departments of a company, explained

No company is the same, but they all have in common, especially the larger ones, which are managed by departments.

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

Below we will see which are the most common departments of a company, Their functions, their objectives and those who constitute them.

    The departments of a company

    A company can have several departments, which vary according to its size, number of employees and needs. Basically, the departments present in most organizations are as follows.

    1. Department of Finance

    The Ministry of Finance is the one that receives, as its name suggests, funding. This funding must be required so that the company can cover the costs of its needs.. In addition, the ministry plans what is necessary so that the organization always has money and can make its payments on time, having a healthy financial position.

    The accounting functions in charge of this department control aspects such as inventory valuation, cost accounting, balance sheets, registers, preparation of financial statements and trade statistics.

    2. Human resources department

    The objective of the human resources department concerns ensure that the human group working in the organization is functioning properly. This department ensures that the most suitable people are hired for the job, through recruitment, selection, training and development.

    In essence, this department is responsible for ensuring that employees have up-to-date knowledge relevant to what is required of the company, in addition to behaving in accordance with the objectives to be achieved.

    Also, a key function of this service is to ensure that workers are motivated and that in the event of an incident between them, try to see the measures to be taken to ensure that this does not harm social relations within organisation.

    3. Marketing Department

    The marketing department works with the sales department (in some companies it is the same department) to get more and better sales, In addition to ensuring that customers receive proper treatment, inviting them to reapply for the product or service offered by the organization.

    The marketing department collects information on the factors and facts that influence the market, with the aim of modifying and updating your product or service to make it more attractive to the consumer. He is also in charge of the distribution of the product. in such a way that it is available at the right time, in the right form and quantity, in the necessary space and at a competitive price, not too expensive for the consumer not to buy but also not too cheap for the business that has losses.

      4. Commercial department

      In the event that it differs from the marketing department, the sales department must ensure that the commercial, departmental and individual objectives are well defined. Responsibility and authority to achieve results should be delegated, to the extent possible.

      People to whom power has been delegated must be able to exercise it and, already as a personal value, believe in what they are doing. Otherwise, no organizational structure will be of any help.

      Principles of commercial service

      Within this department, certain principles are fundamental for the proper functioning of the organization.

      The first is that there is a control unit. Each business unit will depend on a single boss, who will work directly with him. The bosses must know the number of collaborators in their charge and the delegation of tasks must be perfectly defined.

      All the functions of the company should be defined in writing, down to the smallest detail, in order to avoid any misunderstanding or ambiguity in communication. Supervisions to ensure that this condition is met must be carried out in a timely and consistent manner for them to be effective.

      too much efforts should be made to maintain staff stability. In other words, the turnover between workers should be kept as low as possible, motivating them and telling them exactly what to do to avoid frustration or a feeling of incompetence. In the event of unavailability, a program to avoid significant losses in efficiency and profitability should be considered, as well as to ensure that the customer remains well taken care of.

      The organization must be flexible, Able to adapt to changing market situations. We need a program focused on preventing unfavorable economic situations and planning changes in companies to make them more efficient and competitive in a context that may arise.

      In the event that the company is expanding, that is to say it achieves more sales or has greater financial capacity to open new branches, it is necessary to anticipate how the expansion of the staff will be done, so as to have sufficient liquidity and prevent some companies from being more neglected than others. In addition, expansion will require good coordination between different ads.

      5. Purchasing department

      The main function of the purchasing department is to acquire good raw materials or parts to use in the manufacturing, at a lower cost, of quality and, as far as possible, free from factory defects.

      This service is present in each company, incumbent on it to acquire the tickets, that is to say the equipment and objects necessary for the proper functioning of the organization, essential for the production of goods and the supply of services.

      Objectives of the purchasing department

      This department has the following objectives:

      • Purchase the necessary materials.
      • Get them on time.
      • Make sure you have enough.
      • Obtain materials at a good price / quality ratio.
      • Provide more than one collection source, in case of emergency.
      • Anticipate changes in material prices, inflation or shortages.
      • Control the market.

      Functions of the purchasing department

      Although their primary function is to purchase materials, the purchasing department must ensure that they are properly stored.. For this, the process of receiving, classifying, inventorying and controlling the goods must be taken into account according to their size and weight.

      Depending on whether the company can afford it or not, it will be necessary to control the quantity of products purchased and to avoid excess which can be damaged over time, as this involves economic losses.

      Once the purchasing department has obtained all the necessary equipment, it is their responsibility provide it to other areas of their organization, Taking into account the class of object or material, quantity and dimensions.

      6. Department of Logistics and Operations

      The logistics and operations department is considered one of the most important, as it is the essential engine for the competitiveness of the organization and its economic development. Outraged, As new technologies become more and more powerful, this department becomes more and more necessary, Especially when selling products electronically.

      In recent years, the number of people shopping online has increased. The act of buying has shifted from buying from a physical store to buying from anywhere, like the comfort of home. The problem with this type of transaction is the delivery and return of products purchased through this channel..

      Company logistics ensure that the product can reach its intended recipient, either through a special delivery service or through other specialist delivery companies.

      7. Management control department

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

      Management control it measures the efficient and permanent use of the resources held by the organization, In order to be able to achieve the objectives previously set by management.

      Functions of the management control department

      Among the functions performed by this department are:

      • Reduce business risks and contingencies.
      • Meet the objectives assigned to the various managers.
      • Monitor the degree of achievement of these objectives.
      • Strategic planning.
      • Adapt the structure of the company according to the results obtained.
      • Modify long-term goals based on results achieved.

      8. General management

      You could say that the general management is at the head of the company. Usually in small businesses, general management it falls on the face of the owner, while on the larger ones it falls on several people.

      This department is the one that knows where the business is going, setting the goals for the business as a whole. Based on this develops a business plan, with organizational objectives and knowledge of the organization as a whole which will be used for decision making in critical situations.

      General management functions

      Among the main functions we can find:

      • Coordinate all areas of the organization.
      • Control of each business unit.
      • Strategic planning.
      • Resource management.
      • Measurement and control of results.
      • Organizational structure assessment.
      • Report to headquarters (multinational companies)
      • Creation of value and representation of the company before external organizations.
      • Tactical decisions and change management.

      9. Steering committee

      really it is not a department in itself, but rather a level of organization. In it is the general management, that is to say the people who manage the company as a whole and by department.

      This part of the company consists of:

      • President
      • General managers
      • Department directors

      These superiors meet with some frequency, speaking and marking the strategic line. to be followed by the company.

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

      • Generate wealth.
      • Know what the business looks like at a specific time and where to run it.

      Bibliographical references:

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

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