Having a proper organizational structure with a proper chain of command is extremely important for any business’s success, irrespective of its size. Ignorance and negligence in structure formation lead to many challenges within the workplace and can impact workforce effectiveness and efficiency.
No matter the nature of business, having different functional departments makes basic routine operations much more efficient and effective. Each department should be focused on performing one function of the business and then should be able to integrate it with the other functions of the company.
You must design the functional departments under your business needs, especially if you are running a small business. It helps get the most out of your limited workforce and leverage their expertise. With everything becoming increasingly digital and integrated, employees must have a clear direction about their job description and how they can make business functions more effective and efficient. Each domain represents each department that is essential for a business to function in this highly competitive market.
Following are some of the most important departments in a small business establishment:
1. Accounting And Finance Department:
This department is the most crucial of all departments; it involves managing the cash flow and making a financial plan for attracting and utilizing investments. No business can operate without money, and the obtained cash must be used properly for the business’s growth. A plan of action for proper utilization can only be ensured if you have the right people working in this department who possess the skills to carry out financial analysis. Make sure you hire people with degrees or certifications in accounting and finance; these qualifications include both physical and online master in accounting or finance or both.
Another responsibility of this department is overseeing the salaries and wages of the employees. It ensures that the employees receive their salaries on time and assign bonuses where necessary. Moreover, they prepare financial statements and annual records for the higher management to make critical decisions for the company’s future more effectively.
2. Human Resource Department:
This department is responsible for managing the employees of an organization and maintaining a healthy dynamic within the workplace. It also recruits people and trains them to better adapt to the workplace. They assess people on their qualifications, skill set, and personal and professional ethos. Moreover, it also determines what salary one might have and the number of benefits and bonuses they are eligible for.
It also ensures that all employee concerns are addressed and dealt with to maintain a good relationship with everyone. As any business’s success depends heavily on its staff, this department plays a key role in any organization.
3. Marketing Department:
Any business that wants to see itself take off needs a marketing department. Whether the nature of your business or the market offering you are putting forth for the public, you need to do it through a marketing department. It helps you attract potential customers and retain the ones that you already have; for this, you need effective marketing and advertising strategies in place. It enables the target audience to better understand the business’s mission and vision.
It deals with the 4Ps of your market offering, i.e., Product, Price, Placement, and Promotion. Mostly this department has full creative control of most of the products that come out of a business, big or small. It researches the most profitable product composition, pricing structure, placement regions, and promotional campaigns. It helps a small business stand out compared to its competitors and build its brand.
The operations department’s structure is different depending upon the market offering for each business. A manufacturing business involves the overall production department, where inventory procurement and product manufacturing occur. The orders for manufacturing usually come from the marketing and sales department, depending upon the demand for the product. For a service business, the operations department is generally involved in providing the service effectively and efficiently to the clients.
In short, the operations department is responsible for reducing, if not eliminating, bottlenecks from the overall operational cycle of a business.
5. Sales Department:
Most small businesses have the same department for marketing and sales. However, it is advisable to have separate departments for these two domains. They are interrelated and must work in an integrated fashion for the business to thrive. The sales department deals with the customers directly, unlike the marketing department. They make personal connections with the clients and can make them decide on whether they’d like to be loyal customers or not.
They are responsible for Customer Relationship Management (CRM). They ensure that the business and its products are approachable and satisfying for the customers. They coordinate the sales force efforts to sell the market offering to the target audience.
6. Maintenance Department:
Most small businesses try incorporating a small maintenance department into the company’s daily operations. This is responsible for the maintenance and repair of equipment, plants, machinery, and other necessities used in the optimal functioning of the business. It also holds the equipment user accountable for any mishaps that might occur due to its deviated functioning of it.
Different organizations have different technological assistance for this vital functional department. It takes care of the long-term assets of the business and ensures that they are in optimal condition. It is responsible for both the degree and rate of maintenance.
A business owner must understand the importance of the functional departments of the business. The common misconception that one man can be the jack of all trades when it comes to running a business needs to end. It makes the overall work efficiency mediocre at best. Moreover, a company must be able to keep up with the changes in the corporate world and revise its objectives accordingly. Use consumer-centric tools and strategies coupled with training platforms and programs for a better success rate. Adopt innovative and flexible strategies to be agile and efficient.
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