ORGANISATION STRUCTURE & DESIGN (PART 2) Introduction to

ORGANISATION STRUCTURE & DESIGN (PART 2) Introduction to Business BM004-4-0-ITB

Learning Outcomes Recognise and apply sound knowledge of the key organisational theories. Compare the fundamental organisational concepts and principles. Compare the functions within the organisation and their interdependency and interaction.

DIVISIONS IN AN ORGANISATION The various departments play vital functional roles in an organisation as follows: Finance Production Marketing Administration / Operation Human Resource (Personnel) (Division by Function)

FINANCE Organisations need to know their financial position as it determines what the business can and cannot do In charge of managing business costs Record all financial transactions Monitor spending in other departments Audit / Check organisation’s accounts

PRODUCTION This department must produce goods to the quality, quantity and time required Communicate with Sales and Purchasing department to know customer orders and raw material purchases Aware of new developments in production (R&D) Manager will organise Labour, Equipment and Machinery Quality Control staff in charge of checking, testing and reporting to manager

MARKETING Marketing involves: Establishing what the customer and prospective customer want Promote the product and services Actively selling to existing customers Seeking out new customers Communicating with production department to manufacture according to customer preference

ADMINISTRATION Also known as Operations department Provides Support for all other departments in the following areas: Secretarial services Data processing Filing Reception Telephone Systems Security, Cleaning Technology Support

HUMAN RESOURCE A service department, providing support and advice in the following areas: Manpower planning and recruitment Employee transfers and promotions Health and safety Industrial relations Training Staff appraisal Salary structures EPF and etc.

Summary of Main Teaching Points There are various functional departments within the organisation that contributes to the overall business activity of an organisation. Organisational structures and design vary depending on the environment and people within it. Organisation charts help clarify the structure and also roles of people within an organisation.

Key Terms you must be able to use If you have mastered this topic, you should be able to use the following terms correctly in your assignments and exams: FINANCE MARKETING PRODUCTION ADMINISTRATIVE / OPERATION PERSONNEL / HUMAN RESOURCE

Q & A Question and Answer Session