Bc6

Business Context

• This presentation focuses on understanding the operations and functions within organizations to meet T-Level Technical Qualification in Management and Administration (Level 3).

Learning Objectives

• By the end of the session, learners should be able to:

  • Consider the remits of different functional areas of organizations.

  • Discuss how functional areas support the operations of organizations.

  • Discuss the different roles and their reasons for existence in organizations.

Functional Areas of Organisations

• Organizations are divided into functional areas (or departments) critical for survival and success. These structures can be hierarchical or matrix-based.

  • Hierarchical Structures: Can adopt a functional approach, supporting divisional structures that are geographic, market, or product-based.

  • Matrix Structures: Use a parallel functional structure with project teams that involve experts from different departments.

Functional/Hierarchical/Geographic Divisional Structure

• It features a CEO with divisions for European, UK, and USA operations, each with its hierarchy of functional departments, including Marketing, Finance, and Human Resources.

Functional/Matrix Structure

• This structure involves project initiation where a project manager assembles teams from various departments, indicating a flexible and collaborative approach to operations.

Functional Objectives

• Each department has specific targets designed to achieve overarching corporate objectives and is used as key performance indicators (KPIs).

  • It is emphasized that financial objectives must be met to sustain social objectives for the organization’s viability.

Common Functional Areas

• Organizations typically include:

  • Information Technology/Systems

  • Human Resources (HR)

  • Marketing

  • Finance

  • Additional departments like Research and Development, Sales, and Production may be essential for commercial organizations. Even smaller entities may outsource functions like accountancy services.

Information and Communications Technology (ICT) Systems

• ICT systems support managers in resource planning, utilization, and monitoring:

  • Examples include Management Information Systems (MIS), data analysis, internal and external communication, and implementing technological changes.

Benefits of ICT

• Management: Provides real-time performance reports and decision-support systems.

• Finance: Offers transaction support systems and real-time accounting records.

• Marketing: Facilitates analytical reports comparing projections with actual performance.

• Human Resources: Aids in work allocation and KPI monitoring.

• Overall, ICT improves internal and external communication, ensuring operational consistency.

Human Resources (HR)

Principal Functions

• The HR department focuses on aligning the workforce to fulfill organizational objectives through:

  • Workforce planning, recruitment, training, performance appraisal, and maintaining employer-employee relations.

  • Compliance with HR legislation is mandatory for all organizations.

HR Strategies

1. HARD HR Strategies: Focus on utilitarian aspects of workforce management.

   • Emphasizes efficient resource use, cost control, and structured employee classification (full-time, part-time, etc.).

   • Often aligned with hierarchical structures featuring autocratic management.

2. SOFT HR Strategies: Prioritize organizational culture and employee motivation.

   • Encourage personal development and harmonious relations, typically found in flat or matrix structures.

Marketing Department

Responsibilities

• The marketing department is tasked with meeting revenue objectives tied to corporate goals through designed strategies and tactics:

  • Examples include creating content marketing plans and executing lead generation campaigns.

  • Essential functions involve brand development, social media management, and producing analytics reports to guide decisions.

Finance Department

Financial Objectives

• The main goals include:

  • Cash flow management,

  • Profitability tracking,

  • Cost minimization,

  • Return on capital employed, and

  • Shareholder returns for limited companies.

Operational Factors

• Effective coordination within the finance area is vital for operational success across departments. Performance metrics like budgets and marketing effectiveness play crucial roles.

Roles Within Organisations

Definition of Business Roles

• Roles are determined by the tasks assigned, with common categories including executive, management, and operational levels.

• Examples of roles:

  • Marketing managers oversee departmental functions, often supported by marketing assistants.

Levels of Roles

1. Executive Level: Senior management making strategic decisions, responsible for mission and culture setting, including roles like CEO, COO, CFO, and board members.

2. Management Level: Comprises middle managers and team leaders who facilitate communication and ensure departmental objectives are met.

3. Operational Level: Involves the workforce executing daily tasks, essential for business functions, ranging from customer service to manufacturing.

Job Roles Across Levels

• Job roles are ubiquitous across both paid and voluntary sectors, with each contribution supporting organizational success and driving economic growth.

Summary

• The session covered the remits of functional areas within organizations, their roles in supporting operational objectives, and the various organizational roles categorized by their responsibilities, enhancing understanding of how organizations function.