The 9 Departments of a Company, Explained

No company is identical, but they all have in common, especially the largest ones, that they are managed by departments.

Although they are not always the same from one organization to another, each one performs different functions and aims to achieve specific objectives.

Next we are going to see which are the most common departments of a company their functions, objectives and who constitute them.

The departments of a company

There are several departments that a company can have, varying depending on its size, number of employees and needs. Basically, the departments present in most organizations are as follows.

1. Financial department

The financial department is the one that obtains, as its name indicates, financing. This financing must be required so that the company can cover the costs of its needs In addition, the department plans what is necessary so that the organization always has money and can make its payments on time, having a healthy financial situation.

The accounting functions that this department is responsible for control aspects such as inventory valuation, cost accounting, balance sheets, records, preparation of financial statements and business statistics.

2. Human resources department

The objective of the human resources department has to do with ensure that the human group that works in the organization functions properly This department makes sure to hire the most suitable people for the job, through recruitment, selection, training and development.

In essence, this department is responsible for ensuring that workers have updated knowledge relevant to what is demanded in the company, in addition to behaving in accordance with the objectives to be achieved.

Also, a fundamental function of this department is to ensure that the workers are motivated and that, in the event that there has been an incident between them, to try to see what avenues to take to ensure that it does not harm social relations within the company. the organization.

3. Marketing department

The marketing department collaborates with the sales department (in some companies, they are the same department) to get more and better sales in addition to ensuring that customers receive appropriate treatment, inviting them to request the product or service that the organization offers again.

The marketing department gathers information about factors and facts that influence the market, with the intention of modifying and updating its product or service to make it more attractive to the consumer. Also, it is responsible for distributing the product in such a way that it is available at the right time, in the pertinent form and quantity, in the space required and at a competitive price, neither too expensive so that the consumer does not buy it but, neither, too cheap so that the company have losses.

4. Commercial department

If it is differentiated from the marketing department, the sales department must ensure that business, departmental and individual objectives are well defined. The responsibility and authority necessary to achieve the results should be delegated, to the extent possible.

The people to whom power has been delegated must be able to exercise it and, as a personal value, believe in what they are doing. Otherwise, no organizational structure will be of any use.

Principles of the commercial department

Within this department there are some principles that are fundamental for the organization to function properly.

The first is that there is unity of command Each business unit will report to a single boss, who will work directly with him. Bosses must know the number of collaborators under their responsibility and the delegation of tasks must be perfectly defined.

All company functions should be defined in writing, down to the smallest details, to ensure that there are no misunderstandings or ambiguities in communication. Supervisions to ensure that this condition is met must be done in a timely and constant manner to be effective.

Also An attempt should be made to maintain staff stability That is, you must ensure that turnover among workers is as low as possible, motivating them and telling them exactly what they have to do to avoid frustration or a feeling of incompetence. In the event that there are casualties, a program must be proposed focused on avoiding large losses in efficiency and profitability, in addition to ensuring that the client continues to be well served.

The organization must be flexible, capable of adapting to changing market situations. There must be a program focused on preventing unfavorable economic situations and planning changes in businesses to make them more efficient and competitive in the context that may occur.

If the company is expanding, that is, it is gaining more sales or has a greater economic capacity to open new branches, it must be planned how to expand the staff, in order to have a sufficient number of employees and avoid that some businesses are more neglected than others. Furthermore, with expansion, good coordination between the various salespeople will be necessary.

5. Purchasing department

The main function of the purchasing department is acquire good raw materials or parts to use in manufacturing, at a reduced cost, of quality and, whenever possible, without factory defects.

This department is present in every company, with responsibility for acquiring inputs, that is, materials and objects necessary for the proper functioning of the organization, essential for the production of goods and the offer of services.

Objectives of the purchasing department

This department has the following objectives:

Purchasing department functions

Although its main function is to purchase materials, the purchasing department must ensure that they are stored properly To do this, the reception and classification process must be taken into account, as well as having an inventory and control of the goods based on their size and weight.

Depending on whether the company can afford it or not, the quantity of products purchased must be controlled and excesses that could spoil over time should be avoided, given that this entails economic losses.

Once the purchasing department has obtained all the necessary materials, it is within its powers providing the other areas of the organization with them taking into account the class of the object or material, its quantity and dimensions.

6. Logistics and operations department

The logistics and operations department is considered one of the most important, given that it is the essential engine for the organization’s competitiveness and its economic development. Besides, Since new technologies are increasingly more powerful, this department is becoming more and more necessary especially when selling products electronically.

In recent years, the number of people shopping online has been increasing. The act of buying has been relocated, going from buying in a physical store to buying from anywhere, such as, for example, the comfort of home. The problem with this type of transactions is the delivery and return of the products purchased in this way

Company logistics ensure that the product can reach its recipient, either through a special delivery service or through other companies specialized in delivery.

7. Management control department

The management control department is a part of the company, created and supported by management, which allows it to obtain the necessary and reliable information when making appropriate operational decisions.

Management control measures the effective and permanent use of the resources that the organization has in order to achieve the objectives previously set by management.

Functions of the management control department

Among the functions carried out by this department we have:

8. General management

The general management could be said to be the head of the company. Typically, in small companies, general management falls on the figure of the owner, while in the largest ones it falls on several people

This department is the one that knows where the company is going, establishing its objectives as a whole. Based on it develops a business plan, with organizational goals and knowledge of the organization as a whole that you will use to make decisions in critical situations.

General management functions

Among the main functions we can find:

9. Steering Committee

Really It is not a department per se, but rather a level of the organization It contains Senior Management, that is, the people who manage the company both as a whole and by departments.

This part of the company is made up of:

• President
• The general directors
• Department directors

These superiors meet with some frequency, talking and setting the strategic line to continue for the company.

The objectives of this part of the organization are basically two:

• Generate wealth.
• Know what the company is like at a specific time to know where to direct it.

• Bernus, P., Nemes, L., and Schmidt, G. (2003). Handbook on Enterprise Architecture.
• González Hernández, NL (2015). Functional areas of a company. Retrieved from https://www.gestiopolis.com/areas-functionales-de-una-empresa/