Functional Department
Introduction
A successful business has many departments working together towards one common goal, profit. Each department of a company relies on each other to make smart strategic business plans. There are four primary departments in the CAPSIM simulation, Research and Development(R&D), Marketing, Production, and Finance. Even though each department handles different aspects of the company, each department could not be successful without each other. Research and Development relies on Marketing to sell what the team has created, Production has to produce the product at the correct demand speed and Finance has to make sure the company has a whole has enough funds in the bank at all times. The different departments have to make sure that communication is clear and frequent in order to be successful. And alongside money, communication is the next big thing when it comes to becoming successful.
Research and Development
Research and Development(R&D) is one of the first steps to building a company. R&D has to think of
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Finance has to make sure that there is enough funds in the bank at all times. The Finance Department has to communicate with each department. Finance is the part of the company that can give production enough money to more capacity, tell Marketing a budget for the year and ensure that the Research and Development team has enough money to do quality research on the products. Even though all the departments have to work together in some capacity, it's the Finance Department that is the glue to the company. Their relationship to each department is crucial because if the Finance team cannot communicate well with a certain department then every department is impacted to some capacity. "The gentle inquiry is a communication technique that recognizes the need for all people engaged in the organizational community or team to feel valued and in possession of dignity." (Patterson, 2014, p.
The Functional Structure would best describe the form of Departmentalization used by Idlenot. Various departments employed people with particular training. The IT trained personnel worked in the Data Processing Department. People with Financial backgrounds were located in the Accounting Department. The exception to this was in the Shipping and Warehouse operations. The employees that were responsible for moving stock from one location to another did not require specialized training.
Departmentalization base is the big plan by which jobs are grouped into units.in facts few organization show only one departmentalization base. The most common bases are function, product, location, and customer. The decision to use many bases is usually based on the specific needs of the corporation and on the strong
Its functional structure is organized with many executive vice presidents reporting to the CEO and additional functions representing a major component of the Target value chain such as a store, design, manufacturing, sales and marketing, logistics, and customer service. Each functional unit is supervised by a functional chain of command that focuses on their area of responsibility. This way CEO provides direction and ensures that the activities of the functional managers are coordinated and integrated across Target
Technology/Innovation: R & D essential in creating efficiencies and reducing expenses with turn-around times, fuel costs, reservations etc
As previously discussed, contribution margins identify how much is available from the sale of each unit that can be used to pay for variable cost and fixed costs and still provide a profit for the company (Merritt, 2014). While conducting research and completing the Capsim Management Simulation experiment, quantitative data has been assessed to aid in determining if a high contribution rate leads to profitability. Using the Capstone Courier Report data for years 2014- 2022 (simulation rounds 1-8); team Chester had the following contribution margins which are presented in the graph and table provided below.
(Copy of Organisational Structure) The functional areas in Homebase are very effective because it splits up all of the jobs into categories and the categories are called departments e.g. IT Support and administration. Having business functions make running large businesses easier to run. Homebase have little offshoots in the functional areas so that it makes it even easier to run then at the end of every week they have department meetings where they put all of their heads together within the department to see what sort of things they have come up with. Section 3 =
...rent control systems. These results would then been amalgamated and the development process would then begin. Continual assessment of the development process is essential. If the current development strategies are unsuccessful, new research would be undertaken to identify problems and try to minimise them. R&D is essential in ensuring the success of an innovation. With a strong R&D program products are more likely to be introduced as a market-leading product, as a successful product and as a profitable product.
Each organizational element relates to one another. They have a building block effect where each element depends on the one before it in order to exist. The "organizational efforts (inputs and processes) contribute to organizational results (products and outputs) and these contribute to societal consequences and payoffs (outcomes)" (Strategic Planning in Education, 23).
When a company has a diverse product line, each product will have unique demands, a functional structure is appearing. Functional structures are also more effective in stable environments that are slower to change. Many firms use a functional structure successfully because the functional structure provides for a high level of centralization that helps to ensure integration and control over the related product-market activities or multiple primary activities in the value chain (G.Dess, 2003). For example, in 3M Company that has marketing department, finance department, research and development department, and production department. All of the employees that are distributing to the different group to accomplish those missions or task that department handle. In these structures, each person has be a specialized role to accomplish those goals. For example, marketing’s employee may serve as an planner, planning events for all the products that in the company. Finance department is to manage all the finance in the company makes sure the company is in profit
Companies continuously seek for the best organizational structure that will allow employees to be as effective and efficient as possible. The question many managers must ask themselves is whether to organize their departments by product or by function. Managers must decide between having specialist grouped together by function regardless of the product they work on or having them grouped by specific products and which option will be best suited for their organization (Walker & Lorsch, 1968, p. 1). Walker and Lorsch in their article “Organizational Choice: Product vs. Function” (1968) take an in-depth look at two companies, Plant F and Plant P, in order to examine these two structures in action and determine some of the advantages and downfalls of each.
Functional 2. Divisional 3. Hybrid 4. Matrix 1. Functional Structure involves the departmentalization in which positions are grouped according to there main functional- specialized area.
Human Resources Finance Research and Development Marketing ICT Sales Customer Service Quality Control Purchasing I have a copy of the Global Scott Bader Group Structure (see diagram). It is split into certain areas and functions of the business; finance. service, human resources, IT, Marketing R+D and Sales of composites. and marketing R+D and sales of specialty polymers. All of these departments have very important roles within the business.
As the head of the finance department, he must be responsible for preparing and reviewing the financial statement inclusive of the annual revenue and expenses incurred. Reporting to the general manager, normally with an external auditor engaged for assurance purposes towards the shareholders and investors fulfilling the spokesperson and negotiator role in the financial department. When their cash meets beyond day to day expenses, he is responsible for advising and sourcing financial aid from banks. Hence, he must establish good relation with professionals from the banking sectors, which fulfils the liaison role. When the organisation is ready to expand their company, he will be in charge of preparing documents required for these presentations and may work with outside consultant to evaluate the company. The financial department has to measure and report regularly on key numbers critical to the success of the organisation. The head of the financial department will then use these information to propose suggestions to the top managers in deciding whether any actions. This fulfilled the monitor and spokesperson role. To stay forward looking, the finance department will have to work with managers in the preparation of organisation budgets and forecast which fulfil the resource allocator role. As the head of the financial department,
...also dependent on customer satisfaction, which influences the market value and position of the organization. How to determine and increase customer satisfaction and shareholder value are some of the key functions of financial management. This paper talks about how financial management can be used to achieve the best customer satisfaction and shareholder value.
Financial Management has a lot to do with the duties of the financial manager working in a business. Their function can come in two approaches; one being an executive finance function which involved mainly decisions, the second is the routine finance function. These could be such things as supervision of cash receipts, safeguarding of cash balances, and custody of valuable documents, mechanical details of financing, record, reporting to top management and supervising fixed and current assets. For a financial manager, it is important to approve or reject the lines of credit, and commercial, real estate, and personal loans. There is so much that a financial manager is responsible for, and the decisions they make can also make or break a bank. It’s important for them to develop and analyze information to insure that the company is doing well and can finance another loan as well as look as making decisions to ensure company growth and profitability. The major goal of a financial manager should be to maximize the value per share of existing stock. To maximize value per share, also motivates the capital-budgeting decision rules, and firms will then only accept projects if they add value to the firm. Our Chief Financial Officer is Kenneth S Avner who is stationed out of Illinois. Ken Avner is responsible for decision-making processes related to product pricing, experience analysis, financial strategy, financial reporting, budgets, cost accounting, tax, receivables, disbursements, underwriting, travel, administrative services and procurement. I am not sure how all this comes down to New Mexico. I do see that our New Mexico President, Kurt Shipley has duties of financial management in the New Mexico Region, who I might add, is a certified...