The three main functional operations of an organization include marketing, finance, and operations. These three main areas are commonly found in all types of business-oriented organizations and represent the cornerstones needed to achieve successful results. Operations, organizational strategy, organization structure Imagine a company without division of tasks or responsibilities. To operate efficiently, most companies divide their operations into different functional areas.
Each area is responsible for completing tasks and achieving results within a specific area of expertise. This is usually represented in a liability graph. The specific functional areas that a company uses depend on the size and nature of the company. For example, a large technology company will typically have a team dedicated to research and development.
However, if they offer their products only as an online download, they won't need a functional area for the supply chain and logistics. A list of business functions can be found here. Practically in every company there is a functional area. This layer can have a deep and complex hierarchy or be very simple.
That depends on the overall structure chosen for that organization. In a functional organization chart, the management layer would be at the top. The management team provides leadership, creates and implements strategies, approves initiatives and participates in planning for the future. Executives, department leaders, and managers are part of this functional area.
The management level is connected to the other major teams through department managers or supervisors. For example, the director of the sales and marketing department may be part of the management layer, but also play a role in the sales and marketing team. This functional area is responsible for financial management, planning and administration. This team must make decisions that guarantee the fiscal health of the organization so that the company has the money it needs to achieve its objectives.
You must also ensure that cash is available for operations and emergencies. The finance team is usually led by the CFO. However, there may be other leaders who play that role. For example, it is common for there to be teams within the functional area of finance.
Human resources, accounting, and legal matters often fall to the CFO. Each of these teams usually has its own department head, who reports to the CFO. Research and development are often part of organizations focused on technology and manufacturing. These teams work to create or improve innovative products and services based on the needs or demands of customers.
If you have a research and development team, you can structure it to include additional teams in its organizational design. IT and development teams are often included here. Operations are the functional area that is responsible for converting inputs into outputs. The inputs can be design specifications, raw materials, work orders, etc.
The results are the products and services that your organization offers to customers. In addition to production, the supply chain is included in this functional area. In a traditional hierarchy, the functional area of management includes C-level functions (CEO, CFO, CMO). This layer is often followed by vice-presidents or department managers.
There may be directorial functions beyond that. By documenting and diagramming the functional areas of your company, you'll gain a greater understanding of the roles and responsibilities within each one. In addition, you can map how reports and communication flow through your management hierarchy and between functional areas. Many companies find Functionally useful for this task; get started today for free.
This functional area is largely responsible for all work related to the acquisition and retention of customers, including managing the company's reputation, generating interest in products and services, and providing customer service.