The Interaction of Functional Areas
Human resource works with finance to determine the salaries and wages of the employee’s and also any increase in salary and bonuses. This helps the business to pay the right amount of wages or salaries. Human resource also interacts with marketing to verify the adverts for recruitment. This helps for marketing to concentrate more on their work instead of finding new recruits Human resource is interacted with every function because it handles job vacancies, promotion opportunities and training courses. This also helps the other function to work better since the employee’s will be trained and motivated.
Human resource interacts with all the other functions by training and motivating the employee’s. This will help the business since the employee’s will be hard working and professional. Finance interacts with human resource because human resource can be told that no more staff can be replaced or hired for a while. This helps to balance the budget used on employees. Finance works with marketing to check the price of the promotions. This helps by controlling the over spending on promotions. Finance interacts with sales because it needs to know the customer enquiries to check their rating before sales are made. This helps the business to check if they can continue or change the sales.
Finance will be involved with sales when discounts or when there is a problem with customer payments. This helps the business to check if the discount does not result to a loss. Marketing interacts with customer service to get the feedback from the customers of the products sold. This helps the business check if the product should be continued, improved or changed. Marketing interacts with finance when a product fails to meet a customers needs and needs to be developed. Marketing interacts with finance because finance must know when goods have been despatched so that invoices can be sent out.
Marketing interacts with customer service to inform customers when deliveries are due and be aware of any problems. Administration interacts with finance because administration may have to defer purchase of new equipment. This helps the business not to overspend on equipment. Administration interacts with marketing by keeping comprehensive customer database, analysing and recording sales, liaising with advertising agency staff, sending out literature and help to prepare presentation material. This helps to be organized and makes it easier for marketing
Administration interacts all other functions to organize meetings, interviews, does most of the paper work of the other functions and also to manage health and safety regulations. This helps to make other functions concentrate more on their work. Production interacts with customer service to schedule and agree delivery dates of orders, so customers are not promised dates which cannot be met. Production interacts with customer service to tell any production problems which will affect the customers.