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7/26/22

9 departments in an organization and their functions


 Why organizations need departments?

A department is one of the many division or parts of a big organisation. 

Many large organisation have large offices which are subdivided into departments. These departments take care of the different aspects of the business of the organization . Such department include production, administrative, personnel, accounts, purchasing, marketing, sales, research and development .

All the departments also have offices to Co ordinate their activities. The functions of the various departments in an office are directed towards achieving the common goals of the organization.  Below are the following functions of each of the departments.


various departments in an organization :

In any organization, departments are key to ensuring that all employees have the necessary resources to do their jobs effectively. There are a variety of departments within most organizations, each with its own unique purpose.

The human resources department is responsible for managing the organization's employees. This includes hiring and firing employees, as well as handling payroll and benefits.

The finance department is responsible for managing the organization's finances. This includes creating and managing the budget, as well as tracking and reporting on financial performance.

The marketing department is responsible for promoting the organization's products or services. This includes developing marketing campaigns, as well as managing customer relationships.

The operations department is responsible for managing the day-to-day operations of the organization. This includes coordinating and supervising the work of employees, as well as ensuring that all processes are running smoothly.

The IT department is responsible for managing the organization's technology. This includes developing and maintaining software, as well as providing technical support to employees.

The 9 departments in an organizational structure and their functions :

Production department 

The production department is mostly associated with manufacturing organisations. The head of the production department is known as the production. He is assisted by production supervisor, machine operator and computer operator in a computerized production system. The production department performs the following functions :
  • it uses raw materials and semi finished goods to produce finished goods to satisfy the needs of the people .
  • It ensures that goods are produce in the right quality and quantity.
  • It makes effort to produce goods at the minimum cost to meet the time schedule for the orders are by customers .
  • It works closely wit the research and development department for the design and production of new products 
  • It collaborate with the marketing department to produce products which customers actually want as designers product. 

Marketing department 

The marketing department works hand in hand with the production department by changing the production department into money for the organization. 

The head of the departments is the marketing manager who is assisted by the marketing assistants.  The department performs the following functions .
  • it carries out regular market survey to know what the customers needs and feed the production department with the information collected  
  • It works closely with the research and development department to design and package new products for the organization .
  • It gives attractive colours and names to old products to increase their sales values.
  • It is responsible for identifying and knowing the viable wholesalers to handle the products of the organization. 
  • In collaboration with the production department, it is responsible for the pricing of the products produced by the organization.  

Sales department 

In some organisation, the sales department is an integral part of the marketing department . But most of the examiners tends to identify sales department as the unit responsible for carrying out the sales activities of the organization.  The sales department is headed by the sales manager.
It's functions include the following :
  • It keeps accurate stock of goods produced in the organizations ware house before distributing them for sales in the market. 
  • It is responsible for the sales of the organizations products and remits revenue from sales to the accounting department .
  • Through promotion and advitisment ,it informs the general public about what products are available and at what prices.
  • It keeps accurate sales record and records of all expenses in it activities and remits same to the account department. 
  • Through advertisement and various promotion activities ,it attracts new customers to the organization. 

Purchasing department 

The purchasing department forms an .Integral part of any dynamic and progressive  organisation.  It is usually  head  by the purchasing manager  who is assisted the professional purchasing assistant . The departments performs the following functions :
  • it buys quality raw materials ,semi finished goods as spare parts for the organization at very reasonable prices .
  • It is responsible for the storage of materials ,semi finished goods ,etc.  bought until they are needed for use.  It orders materials at the stock reorder level to avoid stock out .
  • It is responsible for checking invoices and delivery notes of suppliers to ensure that they are in order. 
  • It ensures that suppliers submit quotations for the materials they intend to supply. 
  •  

Accounting department 

The accounting department is responsible for keeping the records of all the financial transactions in the organization. It is headed by the chief accountant and assisted by other accountants and accounts clerk.  The following functions ate carried out by the department :
  • It prepares and pays out wages and salaries to workers in the organization.
  • It prepares the annual business accounts for the organizations annual general meeting .
  • it keeps the record of the organizations accounting and financial activities.
  • it ensures proper and judicious spending of the resources by controlling the budget of the organization 
  • In collaboration with the production and marketing department, it assists in determining the sales price of goods produced. 

Personnel department 

The personnel department handles all staff matters in the organization. It is healed by the personnel manager who is assisted by the personnel assistants. Specficially ,the personnel department performs the following functions :
  • It is responsible for the recruitment of staff for the organisation through interviews and other selection methods.
  • It is also responsible for staff  training and development in the organization. 
  • It is also responsible for staff training and development in the organizations .
  • It deals with staff welfare and improved condition of service .
  • It handles all industrial disputes and other labour related matters in the organization 


 Administrative department 

The administration department Coordinates the activities of all other departments in the organization . It is headed by the company secretary . The company secretary is responsible to the general manager, he is the head of all managers, in some organisation he is called the managing director.  The following are the functions of the department:
  • it monitors the activities of all other departments and ensure their effective functioning .
  • It organises management meetings and prepare the minutes of such meetings 
  • It ensures that all policy decisions taken at meetings are put into practical use. 
  • All information coming in or going out of the organization passes through the administration department organ called the registry. At the registry ,the following people assists the company secretary the receptionist, typist, clerks, telephone operator ,messengers etc. 

Planning department 

The planning department is a specialized department concerned with the improvement in the future performance of a organization.  It is a technical department usually found in well established manufacturing companies or in other big organisation which hav vision to be generating new ideas for the development of their business. Some organisations equate planning department to research and development department and the use the terms interchangeably.  The department is usually headed by the planning manager and assisted by the planning officer.  The people working in the planning department must have deep knowledge of the activities of the organization and must be well versed in information technology.  The planning department performs the following functions :
  • it initiate actions that will reduce the effect of unexpected future events such as change in consumers taste, high interest rate, machine breakdowns,  a fall in demand etc. 
  • It finds better ways of reducing the cost of production of existing products by insisting on efficient method of production .
  • In collaboration with the production and marketing department ,it redesigns and repackages old products to give them better value. 
  • It identifies new sources of raw materials, equipment, working capitals etc.  Which will reduce the cost of operation and improve the profit of the organization. 
  • It identifies new areas of invetment for the organization. 

Transport department 

The transport department is Concerned basically with the movement of raw materials and finished goods in and out of the organizations. The transport department requires a lot of money to establish.  This is because of heavy cost of vehicles ,high cost of maintenance of vehicles ,rapid depreciation due to the terrible conditions of the roads. As a result of the above situation, only well established organization can establish and maintain a transport department. Organizations that established and maintain a transport department include manufacturing companies, book publishing companies,petrol dealers,  wholesalers and big time distributors of drinks ,paint,  tyres and phamaceuticals. The department is usually headed by the transport manager  who is assisted by transport officers and a crew of drivers. 

The departments performs the following functions :
  • It facilitates the movement of workers to and from the organization .
  • It facilitates rapid movement of raw materials and other materials inputs required for production from there sources to the organization and it's will reduce the cost of production. 
  • It helps to widen and expand the immediate and distant markets for the organization  production. 
  • It encourages large scale production of goods of the organization  
  • It facilitate quick delivery of goods ordered from the organization. 
This are the major department commonly found in an ideal organization. Some organisation have more and some have more and some concentrate the functions of some departments in few ones. 

The size and nature of the business of the organization to a large extent determine the type and number of department in an organization. 

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Managerial pyramid and structure

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