Company’s Corporate Structure

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Table of Contents

Divisions in a company
Human resource department
Finance department
The sales and marketing department
The production department
Research development department
The administration department
Works Cited

Each and every company has goals and objectives it has to achieve. However, how would one determine a company’s operations as success or failure? To do this, one has to employ analysis on the operations of the said company. To analyze is to look at a subject with a keener interest and try to evaluate it from established point of views.

In order to do this efficiently, one may be required to break the subject into various divisions or parts, then evaluate on the performance of these parts in relation to the functionality of the structure as a whole. This paper seeks to analyze a company by looking at various divisions that make it up and the roles they play towards the functionality of the company as a whole.

Divisions in a company

A company is divided into various departments which play different roles in its achieving the set objectives and goals. These departments include human resource, production, marketing, finance, purchasing, research development and administration. Division in a company is essential in various ways. Akrani extensively explores the advantages of these divisions (1).

For instance, through these division , specialization is able to be achieved in that a person is able to dedicate his time in learning and mastering a specific skill in the work place instead of knowing so little about many aspects in the company operations. Through division in the company authority is also delegated hence responsibility fixed.

When a person knows that certain responsibility has been laid on his/her shoulders, one is able to dig deep to accomplish it. Control is also facilitated due to these division.Division or departmentization groups the workers into smaller manageable groups which can be handled quite easily as compared to one big group which has no sense of order. The performance of every person via these departments can be checked.

This is done through performance appraisal. This would benefit the company as every individual knows that he/she is being watched and gauged in terms of his/her productivity. The division also develops managers.

Due to the fact that authority is delegated to departmental managers, these managers are able to be trained on important skills that can make them even bigger and more productive managers. For production to be achieved, resources have to be assigned to manpower. Division therefore facilitates this by assigning each group and individual resources to work on in order to achieve maximum productivity.

In trying to analyze a company’s operations it is important that the company is broken down into these departments and the roles they play in achieving company success.

Human resource department

This is the department that is concerned with strategizing management of manpower in any organization. Strandberg defines HR as “the organizational function that deals with recruiting, managing, developing and motivating people” (2). It is the department that plans on the future requirements of manpower.

After establishing what job requirements the company needs ,it is the HR also which involves itself in describing these kinds of jobs in terms of their responsibilities ,required set of skills and experience as well as the qualifications of those required to do the jobs. Recruitment and selection of this manpower as well as drawing their salaries and wages falls in the hands of the human resource manager and his/her crew.

The procedure regarding the recruitment and selection of manpower is drawn and followed accordingly in this department. The work of the HR department does not end with the selection of the manpower though.In order to make sure that the company is more efficient, the workers need to be trained and equipped with various skills that they may need in their day to day activities in the company.

This is organized and carried out by this department too. On top of these, the department goes to an extra step by motivating the company work force through various ways like organizing staff parties and get-togethers once in a while in order to boost the morale of these people. In every organization there must be somebody or group that keeps an eye on the relationships between the workers. This duty also falls under HR.

The department is responsible for fostering cordial relationships among the workers as well as hearing and trying their best to settle any grievances that may arise. As earlier stated, one of the advantages of division in companies is performance appraisal.This also is performed by the HR department.

After recruiting, selecting, training and looking through the welfare of the workforce, it is only logical that their performance be evaluated so as to gauge each and every person’s level of production. Every company has its rules and regulations which must be well adhered to. The HR department is also mandated to dismiss anyone who fails to work according to the company is values or code of ethics.

This department is therefore of such importance that the company cannot do without it. This is necessitated by the fact that every company needs manpower if its operations are to be achieved. It is important that the company also has a department that makes sure that all matters related to this labor force are well taken care i.e. from their hiring, training, motivating to some extent their remuneration.

Finance department

This is the department that is involved with matters money in any company.

Kumar has extensively explored the role of this department in companies (12). Preparing the budget is one of its roles. Before a decision is reached on the planned annual operations of any company, the finance department has to draw a budget to identify the financial position of the company and the actual amount to be allocated to each department. Financial management is another function.

Each company is also required to pay its shares of taxes. The management of these taxes falls under this department.Tax laws change regularly. The finance department must also make sure that it is up to date with any medications and changes regarding tax.

A company, being its own entity, can be able to make its own investments. Its financial department is also mandated to manage and oversee these investments. Another task that the financial department has to oversee is managing financial risks.Kuimar observes for instance that,

“For reducing loss of funds due to happening liquidity, solvency or financial disaster, financial department makes a good plan and also takes the help of debt collectors, insurance and other rating agencies for reducing financial risk. (13)

Without a doubt therefore, this department is essential in that everything to do with finances is handled here. In any company which is profit oriented, this has to be one of the heartbeats as it’s in this department that all books are balanced to gauge the financial value of the company hence give the way forward regarding future operations.

For anyone seeking to analyze the success or failure of any company, this department should be the first place to evaluate.

The sales and marketing department

These two can work dependently or independently depending on the size of the company. The marketing department’s main role is to make sure that the company establishes a close relationship with its customers.

It makes sure that it is a step ahead of its competitors in identifying what customers’ needs are and the best way possible to meet them. It is essential that the marketing department notice that their customer is their employer, though indirectly, and therefore solely focus on the him. It should also go an extra mile in monitoring closely their competitors and make sure that it outdoes them.

To do this, the department must be creative and flexible enough to create new ideas as society is very fluid and customer tastes and preferences keep changing. The marketing department must not only establish a brand that reflects its identity and values but also work very hard to own it.

This means that the goods or services they are offering must be identified with the company’s values and beliefs and must be unique in a way from its competitors’. It must also work hand in hand with the sales department to make sure that the needs of their customers are met in the best and efficient way possible.

If the company is to benefit, the goods or services it produces must reach the customers. But how would the customers know of this product and why should they choose this particular one among the many produced by competitors? This is where the sales and marketing department comes in.

It makes sure it explores the customer needs and reacts to them. Without this division in the company therefore, the company may struggle to get its products to those who need them.

The production department

Production department deals with getting the output out of the input fed into the company. Production involves converting the raw materials into finished products that are then posted to other departments like sales and marketing who then get the product to the customers. The department is also supposed to act on information fed on them regarding the tastes and preferences of products in order to come up with high quality products.

It is also responsible for modifying existing products with the change of tastes and preferences as well as carrying out tests on the newly produced goods/products. The department also makes sure it has plans in place in regard to storage of the produced goods so that a continuous and steady supply is maintained to the market.

It is therefore justifiable to stay that this department plays a very important role in achieving the goals and objectives of the company. The role of a company is to provide goods or services to customers at a profit. The department that deals with this production of goods or services plays a very integral part in company operations.

Research development department

This is the department that has to be on its toes as far as researching and getting new ideas in the company is concerned. Frost outlines the various roles played by this department (11). Among these roles, new product research is on the forefront. The department has to carry out a thorough research on a prospective product regarding its specifications and the time and cost it will take the company on that production.

Updates on the existing products should also be checked by this division in the company lest the company be left lagging behind on product modification.

The department is also responsible for checking for quality in its products. Frost states that, “In many companies, the research and development team handles the quality checks on products created by the company. The department has an intimate knowledge of the requirements and specification of a particular project.” (12)

Innovation is also another important task that the department is mandated to. It consists of a think tank of specialists that observe the recent trends in the market in order to come up with an appropriate product. Every company needs a task force that ensures that research is carried out in order to stay ahead of its competitors as far as delivery of quality products or goods is concerned.

This has been made even more necessary by advancement in technology and the need for an environment friendly approach in production. This department therefore is very essential in any company or organization.

The administration department

This department oversees all the operations of the company. It performs some kind of supervisory role to all departments as they get involved in their respective roles. However in many modern companies, administration department tries as much as possible not to interfere with other departments.

However this depends on the type of administration that runs a company. Being an overall watchdog in the company’s operations, the administration ensures that the set standards required by the company are maintained.

In conclusion, it is fair to note that for a company to be effective, all its departments should play their roles effectively and should it fail to reach its objectives, a keen analysis should be done in every department in order to evaluate their performance.

Works Cited

Akrani, Gaurav. “What are the Advantages of Departmentization?”. Kalyan City Life.17.2(2012). Web.

Frost, Shelley. “Function Descriptions of the Research and Development Department”. Houston Chronical.13.4 (2010). Web. <https://www.chron.com/entertainment/>.

Kumar, Vinod. “Functions of Finance Department.” Accounting Education.1.5 (2010). Web.

Strandberg, Coro. “The Role of human Resource Management in Corporate Social Responsibility”. Strandberg Consulting. 1.5 (2012). Web. <https://corostrandberg.com/>.

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