Functional Areas Within a Business
Business: Edexcel IGCSE, topic 2.5.4
Functional Areas Within a Business
There are four main areas within a business: human resources; finance; marketing; and production.
Human Resources
- Human Resources are responsible for the staff in a company.
- Their role includes:
- Workforce planning.
- Recruitment and selecting future employees.
- Training employees.
- Ensuring health and safety standards are upheld.
- Staff welfare.
- Dealing with employment issues.
- Negotiating industrial relations.
- Disciplining employees.
- Addressing unfair dismissals and making sure employees are paid if they are made redundant.
Finance
- The finance area is responsible for managing money and making sure business has sufficient funds.
- Their role includes:
- Paying wages and salaries.
- Forecasting the cash flow.
- Making and assessing budgets.
- Accounting.
Marketing
- Marketing is responsible for communicating to the customer. They need to promote and help sell their business' products.
- Their role includes:
- Performing market research.
- Planning future products.
- Identifying the price to sell products at.
- Promoting sales.
- Advertising.
- Customer services.
- Public relations.
- The packaging and distribution of products.
Production
- The production area is responsible for the creation of the product.
- Their role includes:
- Manufacturing the products.
- Designing new products.
- Carrying out checks on the quality of products.
- Making sure there is an appropriate level of stocks.
Test yourself on Functional Areas Within a Business
Which area is responsible for public relations?