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DEPARTMENTS IN A BUSINESS ORGANISATION

DEPARTMENTS IN A BUSINESS ORGANISATION

Business organizations are usually divided into different departments on the basis of their functions. The typical departments to be found in a business organization include:

  1. Personnel Department.
  2. Accounts / Finance Department
  3. Training & Manpower Development Department
  4. Production Department
  5. Sales Department
  6. Marketing Department
  7. Administration Department
  8. Maintenance Department
  9. Mails Department etc.

 

FUNCTIONS OF THE PERSONNEL DEPARTMENT

  1. Recruitment of staff to fill vacant positions.
  2. Handling of staff welfare matters including arrangements for medical care, safety etc.
  3. Discipline of staff – including suspension, demotion and dismissal.
  4. Appraisal, promotion and fixing of the remuneration of employees.
  5. Effecting inter and intra departmental transfer of relevant staff.
  6. Maintenance of good industrial and labour relations thereby ensuring industrial peace.
  7. Liaising with trade unions within and outside the organization.
  8. Organizing courses for staff e.g. induction course, seminars, workshops and symposia.
  9. Human Resources Planning – i.e. planning and projecting the manpower needs of the organization and designing ways of meeting them.
  10. Keeping of personnel (Staff) records.

 

FUNCTIONS OF THE FINANCE/ACCOUNTS DEPARTMENT

  1. Control of expenditure or costs.
  2. Keeping of proper books of account i.e. recording of the financial transactions of the business.
  3. Collection of money being paid to the organization.
  4. Payment of money on behalf of the organization.
  5. Preparations /payment of staff salaries.
  6. Advising management on financial matters
See also  SCHEME OF WORK FOR COMMERCE SS 1

 

EVALUATION

  1. State four functions of the Personnel Department.
  2. What is the difference in the functions of the Sales Department and the Marketing Department

 

SOCIAL RESPONSIBILITIES OF A BUSINESS

Social responsibility of business is the ethical and moral responsibility of a business to the society.  It refers to social obligations which could sometimes extend beyond legal and economic obligations.  Businesses therefore have a moral responsibility to protect and improve the welfare of society.

 

Businesses have the following social responsibilities.

  1. Responsibility to the Government also known as legal responsibility.  It includes such obligations as complying with the law, payment of taxes, duties and levies.
  2. Responsibility to Customers: This defines the obligation to offer quality product and services that will satisfy the wants of the customers.
  3. Responsibility to the Community: This is a voluntary obligation but helps in acquiring good image for the organization.  It includes provision of social amenities such as water, roads, schools, hospitals, town halls, scholarships, sponsorship of projects etc.
  4. Responsibility to Employees: This includes the provision of working tools, conducive working environment, staff welfare package, training and staff development programmes.
  5. Responsibility to Shareholders: This includes making adequate profit and declaring commensurate dividends.

 

EVALUATION

  1. Who are the stakeholders in a business organization?
  2. Explain what is meant by social responsibility of business.

 

WEEKEND ASSIGNMENT

  1. Social responsibility is the ability of an organization to ___ (a) meet the needs of its community(b) operate without disrupting the very essence of the environment(c) contribute to sustaining and developing its community (d) maximize its profits at all times
  2. When a business enterprise provide free services to its environment the service is said to be a ___(a) civic responsibility (b) philanthropic consideration (c) social responsibility(d) political consideration
  3. In an organization civic consideration arises from ___ (a) its social negative impacts on the community (b) its operations within the environment (c) the profit derived from the environment (d) the fact that it is registered in that locality
  4. Proper disposal of wastes by business firms it one way of discharging their responsibility to the ___ (a) government (b) environment (c) community (d)  customers
  5. The selection and promotion of staff in an organization is the function of the _______ department. (a) marketing (b) finance (c) personnel           (d) production
See also  STRUCTURE OF A BUSINESS

 

THEORY

  1. State five functions of the finance department in a business establishment.
  2. List five ways in which a business discharges its social responsibilities to the society.

 

See also

MANAGEMENT OF BUSINESS

INTRODUCTION TO BUSINESS MANAGEMENT

GOVERNMENT REGULATION OF BUSINESS

AGENCY

TYPES OF AGENCY

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