The 9 departments of a company, explained

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 performs different functions and intends to achieve specific objectives.

Next we are going to see which are the most common departments of a company, their functions, objectives and who constitute them.

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departments of a company

There are several departments that a company can have, varying depending on its size, number of employees and needs. Basically, the departments present in most organizations are as follows.

1. financial department

The financial department is the one that gets, as its name suggests, financing. This financing must be required so that the company can 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 on time, having a healthy financial situation.

The accounting functions that this department is in charge of control aspects such as the valuation of inventories, cost accounting, balance sheets, records, preparation of financial statements and statistics business.

2. HR department

The objective of the human resources department has to do with ensure that the human group that works in the organization functions properly. 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 up-to-date knowledge and relevant to what is demanded in the company, in addition to behaving according to the objectives to be attain.

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

3. marketing department

The marketing department collaborates with the commercial department (in some companies, they are the same department) to get more and better sales, in addition to ensuring that customers receive adequate treatment, inviting them to request the product or service that the organization offers.

The marketing department gathers information about factors and facts that influence the market, with the intention to modify and update its product or service to make it more attractive to the consumer. It is also responsible for distributing the product. in such a way that it is available at the right time, in the appropriate form and quantity, in the space that is required and at a price competitive, not too expensive for the consumer not to buy it, but not too cheap for the company to have losses.

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4. commercial department

In case it exists differentiated from the marketing department, the commercial department must ensure that the business, departmental and individual objectives are well defined. To the extent possible, the responsibility and authority necessary to achieve results must be delegated.

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

Principles of the commercial department

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

The first is that there is unity of command. Each business unit will report to a single boss, who will work directly with him. The bosses must know the number of collaborators who are in charge and the delegation of tasks must be perfectly defined.

All functions of the company 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 to be effective.

As well try to maintain staff stability. In other words, it is necessary to ensure that the turnover among workers is as low as possible, motivating them and telling them what exactly they have to do to avoid frustration or feelings of incompetence. In the event of casualties, a program focused on avoiding major losses in efficiency and profitability, as well as ensuring that the customer continues to be well served, should be considered.

The organization must be flexible, able to adapt to changing market situations. There must be a program focused on preventing unfavorable economic situations and planning changes in the businesses to make them more efficient and competitive in the context that may occur.

In case the company is expanding, that is, it is gaining more sales or has a greater economic capacity to open new branches, it must be foresee how the expansion of the staff will be carried out, in order to have a sufficient number of personnel and avoid that some businesses are left more unattended than others. In addition, with the expansion, good coordination between the various commercials will be necessary.

5. purchasing department

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

This department is present in every company, falling on it the responsibilities of acquiring supplies, that is, material 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:

• Buy necessary materials.
• Have them on time.
• Make sure you have enough.
• Obtain the materials at a good value for money.
• Provide more than one source of procurement, in case there is an emergency.
• Anticipate changes in material prices, inflation or shortages.
• Check what you bought.

Purchasing Department Functions

Although its main function is to purchase materials, the purchasing department must ensure that they are properly stored.. To do this, you must take into account the process of receiving, classifying, having an inventory and control of the goods based on their size and weight.

Depending on whether the company can afford it or not, the number of products should be controlled purchased and avoid having excesses that can be spoiled over time, since it implies losses economic.

Once the purchasing department has obtained all the necessary materials, it is within its competence providing the other areas of the organization with them, taking into account the class of the 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. What's more, given that more and more new technologies are more powerful, this department is becoming more and more necessary, especially when selling products electronically.

In recent years, the number of people who buy online has been increasing. The act of buying has been relocated, going from buying in a physical store to buying from anywhere, such as the comfort of home. The problem with this type of transaction is the delivery and return of the products purchased in this way..

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

7. Department of management control

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

management control measures the effective and permanent use of the resources that the organization possesses, in order to achieve the objectives previously set by the management.

Functions of the management control department

Among the functions performed by this department we have:

• Reduce business risks and contingencies.
• Direct objectives assigned to the different managers.
• Control the degree of compliance with said objectives.
• Strategic planning.
• Adapt the structure of the company based on the results obtained.
• Modify long-term goals based on 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 falls on the figure of the owner, while in the larger ones it falls on several people.

This department is the one that knows where the company is going, establishing its objectives as a whole. based on it develops a business plan, with organizational goals and knowledge of the organization as a whole that will be used for decision making 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.
• 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 not a department per se, but rather a level of the organization. It includes the Senior Management, that is, the people who manage the company both as a whole and by department.

This part of the company is made up of:

• President
• CEOs
• The directors of the departments

These superiors meet with some frequency, talking and marking the strategic line to follow for the company.

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

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

Bibliographic references:

• Bernus, P., Nemes, L., and Schmidt, G. (2003). Handbook on Enterprise Architecture.
• Gonzalez Hernandez, N. L. (2015). Functional areas of a company. Recovered from https://www.gestiopolis.com/areas-funcionales-de-una-empresa/