functional departments

• What is a traditional hierarchical structure in a business typically structured by?

  Functional departments
• How does the division into functional departments help communication in a business?


  It helps people know who to speak to if a problem arises
• What is the benefit of workers understanding their roles in a business?


  It helps them understand how the business works and their responsibilities
• How are the roles of different functional departments connected in a business?

  Each department supports the others by fulfilling specific responsibilities
• What is the responsibility of the human resources department?


  To ensure that other departments have enough workers with the right skills
• What does the finance department ensure in a business?


  That there is money available to carry out activities across all departments
• How does the marketing department interact with production?


  By providing information about the products that customers want
• What is the role of the purchasing department?


  To ensure that there are enough materials for production
• What are the main functional areas in most large companies?

  • Marketing (Sales and Marketing)
  • Human Resources (Personnel)
  • Finance (Accounts)
  • Operations (Production)
• Why might the names of functional departments vary in different businesses?


  Because they essentially carry out the same functions but may specialize in different tasks
• What are some examples of other functional departments that may exist in a business?


  • Legal Department
  • Transport Department
  • Purchasing Department
  • Design Department
  • Technical Department
• What are functional objectives in a business?

  Goals of each functional department that must align with corporate objectives
• What could happen if the marketing department and human resources department set conflicting goals?


  They are likely to be working against each other
• Why is it important for goals to be carefully coordinated among departments?

  To ensure they are consistent with corporate objectives
• In a car manufacturing business, which functional area is likely to employ the majority of the workforce?

  Operations management
• Why are other functional departments essential to the success of a business, even if one department is larger?


  Because all departments must work together to achieve common objectives
• What is the consequence of producing thousands of cars per week without effective sales and marketing efforts?

  It is pointless if there are not enough customers to purchase them
• What must all functional departments do to achieve the objectives set out in the corporate plan?

  Work in conjunction with one another