Functional areas of business
Nearly all businesses have functional areas within their firms. Functional area means how a certain type of business operates inside or outside their business, for e. g. how does the firm deal with the stuff like human resources, which comprises things like health and safety or organisation development, personal operations etc… human resource strategy demands that an organisation should manage its employees in a way which is consistent with the objectives of the whole business. Its purpose is to establish competitive advantage. The HR department would take decisions without considering what its actions mean for the rest of the business.
The Human Resources Department (HR) controls employees and makes sure laws and health and safety matters are taken into account. They manage training for new staff and manage employee performance by make sure that workers are happy and motivated. If employees are not, then the HR supports them and takes into account their circumstances. Without HR, employees who are not happy would not have anyone to look into their matter, which makes them unmotivated. If the employees are not motivated, they will not put 100% in giving customers satisfying service, which will lead to fewer costumers meaning that their will be lower profit made.
This means the objective of making profit will not be met. This diagram shows the organisation structure: These are the job titles of some of the Argos ltd Human resources departments which ensure that all objectives are met thoroughly: The credit controller monitors and collects the money to owe to the business. A ‘tight and easy’ credit policy may be adapted. Tight credit terms may be used to improve liquidity. Liquidity includes thing like, risk of bad debts, exploit or seller markets, and maintain slender profit margins. Liquidity is just a term which changes assets into cash.
The company’s accountant managers and sales manager work closely with the credit controller because the credit policy could also affect the firm and the sales if anything goes wrong. The credit controller keeps track of bad debts occurring in the business or the time it takes to collect certain amount of debts. Last year in 2003, Argos ltd had i?? 1803 million amount of debtors and nearly about more than five hundred thousand of the debtors were classified has bad debts because they might have been bank cropped or their position in the market might has gone down.
To help the credit controller to keep track of money coming in or going out, Finance department have provided him with some producers which find relevant information about a supplier (e. g. supplier’s bank details) or the supplier performance in the market. Knowing this information is important because it lets the credit controller know if the certain supplier can payback the stock he bought from Argos or not. Credit controller must let the managers know every bit of the financial information by keeping the trail on the money.
It is obvious that the business has performed well because this will also raise their profits or make the company popular. Payroll clerk is another important person of finance department. A payroll is a list of employees with their wages or salaries and a clerk is a financial director (David Tyler) who is responsible for what ever is happening in the business. He is also responsible for preparing final accounts to show managers how well the business is performing through out the year. To do this he has to keep financial records required by the business.
In other words entering transactions in double entry accounts, which show what has the business received or owed. This keeps the track of how business is using or spending its money. Financial directors keep the business up to date with all the relevant things happening in the business, for e. g. stock, sales, purchases, incomes received etc… Financial director also keeps track on TAX the business is paying to government. This includes any part of the revenues the business owns. The profits made by business are also liable TAX. To fulfil the objectives of the business, like profit, growth and customer services.
Argos ltd has financial director which tell tells the workers at finance department what to do or improve at. He also has to calculate the correct figures to work out the final accounts, so at the end of the year the net profit of the business can be the same as the figure of capital. If this is not the same, some where in the trading profit and loss account or the balance sheet there is such error formed. Financial directors write up a detailed report telling the managers how the business has performed through out the year. This helps the mangers to make decisions or decide a new objective.
The credit controller monitors the money owing to the business. He makes sure that Argos finance department has received the full amount of incomes, when preparing the final accounts. His main job is to keep track on the debtors because if the debtors cannot pay the money which they owe Argos ltd, it can affect the profit of the business depending on amount debtors which are outstanding. Health safety must be required by every different type of business. Argos just does that. This department makes sure that the business accomplishes both its moral and legal obligations towards health and safety.
It is responsible for insuring that the safety issues are considered in all part of the business. This includes safety in those places which can harm the employees, customers, or visitors in anyway. Before launching a new business, this department make sure that the legislative requirements are met thoroughly; this includes the appropriate policies and procedures standards. Both the internal and external queries are dealt in this department. This department ensures that the organisation avoids unlawful or unfair discrimination. Every customer or visitor gets treated in same way as everyone else, with good attitude or behaviour.