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.