An integral part of a business structure lies in the separate departments that run daily operations. The company growth lies in the functions of these specific departments and, ultimately, their progress over time. For your business to have a definitive path, the structure of the company needs to meet the desired requirements and practices. The distinct areas that you need to focus on, especially as a new brand, are basic but necessary for any entrepreneurship to be successful. Even during the planning stages, you will organize your business by its functions and then incorporate a proper structure to make the operations a reality.
From marketing to accounts and content, there are many specific groups of functionalities that you need to devise. Once you implement this division of labor, you will see the benefit of lower unit costs and much higher efficiency within the company. So, what are some of the most needed business units you need for your business? And how do they help in maintaining the tasks of the organization?
FUNCTIONAL UNITS OF A BUSINESS THAT ARE INTEGRAL
As the owner of a company, you will likely fill the roles of business units by hiring unique talents. The delegation of these departments requires maximum thought and effort, and you need to put this into your company. Therefore, the following are some primary examples of departments that are necessary for the operation of your brand:
Accounting and Finance
If you are considering opting for a credit analyst career path, you will be part of an accounting and finance department within a company. This unit handles the bookkeeping for a fiscal year of your brand. The accounting department is responsible for processing any revenue the business generates, the expenses you have, and company equity as part of their duties. The department also reports to the Internal Revenue Service, tracking payable accounts and ensuring that you are paying your clients in due time. Furthermore, the accounts department is responsible for income statements, cash flow reports, and balance sheets alike.
Human Resources (HR)
The recruitment of new people into the company is the job of a human resources department. This unit does a lot more than filling in the headcount, however. The HR department ensures that the new talent your company hires has the right skills, qualifications, and relevant experience to match the needs of the company. Besides this, HR is also in charge of deciding compensation, benefits, and employee training for the entire business and all its units. HR also manages employee to employer relations and organizes the hiring process, which makes it the most critical aspect of a company, and its biggest asset.
For businesses to communicate with their target audiences, they need to advertise themselves in the best way possible. Promotional activities for brands are handled mainly by marketing departments, who are in charge of endorsing the products and services of a business. Besides the deployment of practical strategies and techniques, this unit also has its categories, from content marketing to video advertisements. It ensures that the industry is driving through long term success, generating profits, and growing in market shares day by day.
The sales department has the sole responsibility for selling products and services to consumers. Salespeople are the first link between the brand and its customers, and their job is to drive the business forward by making sales on a timely basis. This department needs to have detailed knowledge about the relevant products and services, as well as resilient communication skills to persuade old and new clients to make a purchase. The staff also assesses the needs of a customer before approaching them with a product. They then proceed to close the sale by making a convincing presentation and finalizing the procedure.
It is the unit that is liable for interaction with the customers of a brand. The department answers client queries, processes new purchases and orders, and addresses the concerns of the client. Any complaint or feedback that clients give regarding a product or service will go through customer service representatives, who are the first line of contact with the clients. Additionally, the department establishes the relationship of a business with its customers so that they can be maintained and retained over time.
Having a legal department in your business is vital to ensure operations run smoothly. This unit has the task of overseeing and identifying any legal issues within the company. Legal advisors and lawyers offer training and assistance to employees and management to uphold and follow through with workplace laws and regulations. Besides this, they are responsible for filing legal documents and keeping in check with government agencies regarding company policies. The department further represents the company in case of a lawsuit and act as official representatives on its behalf.
Research and Development
The future of any entrepreneurship requires innovation and advancement. Having a new competitive advantage for your brand is necessary, and the department in charge of this is research and development. This unit is the catalyst for a business to flourish and grow. The products you manufacture and their design will be the reasonability of this department, which will pave the way for its improvement and relevancy to the current trends. The unit has a staff of analysts who go out of their way to produce new products and services, stay updated with the latest technology, and keep the economic expansion of the company in mind.
This functional area of business is accountable for turning inputs into outputs. The production units take raw materials through a series of processes to create new products. The department ensures that the product is of high quality and free from any defects so that customers will be able to purchase them. The quantity of the products also needs to be up to the mark. So the staff must monitor the line before anything goes to the public.
Information Technology (IT)
All businesses implement the help of computers and information systems to run their operations. IT departments are responsible for the hardware, software, and networking of all computer systems within a company’s structure. The task of this unit includes providing support to employees for sufficient IT resources, as well as managing information security to protect corporate data from cybercrimes and hacks.
THE BOTTOM LINE
A company requires the running of different departments so that operations are smooth and successful. While each business is distinct in its needs, there are some fundamental units that all of them need for a functional system. If you are a business owner, your decision-making process needs to be in the focus of these fundamental units. With proper organizations and elemental strategies, you will be able to sustain your brand through organized departments and specific, practical outputs.