Functional Areas in the Operation of Businesses

Departments in a business organization are structured according to certain functions.  The departments of various organizations will differ depending on the type of business.


The production department is responsible for transforming raw materials into finished products. They are also responsible for quality control to ensure that required standards are met.


The accounts department makes and receives all payments on behalf of the business and records all financial transactions


This department creates awareness for the firm products and motivates consumers to buy. They also carry out market research to identify customer’s needs

Human Resources/Personnel

The human resource department recruits and selects staff for the business organization. They are also responsible for staff training and welfare.

The Purchasing Department

This department is responsible for the purchasing of the firms raw material, stationery and goods for re-sale.

Customer Service/ Customer Relations Department
This Department bridges the gap between a business and its customers. it deals with customers’ queries, advising and assisting customers to place orders and handling customers’ complaints.

Legal Department
This department is concerned with legal problems that might arise for the company.  For example, compensation for employees and customers, who have brought lawsuits against the company.

Research and Development (R&D)

This department is involved with research to explore ways of improving the company’s existing products, developing new ones and identifying efficient processes to increase production. This department works closely with the marketing department as products developed must satisfy consumers’ needs.

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