Functional areas of an organization INFORMATION SYSTEMS IN ORGANIZATIONS Functional areas of an organization Zatil Ridh'wah Hj Darot

Organization It is a formal collection of people and other resources, established to accomplish a set of goals. An organization may be ________________ oriented.

Functional areas There are a number of key tasks, or functions that must be done regularly in a business. People are _________________according to their specialization. Typical main functional areas within a business organization:

Functional areas (cont’d) Purpose: Ensure all important business activities are carried out efficiently Specific areas will be responsible for supporting specific types of aims and objectives. Functional areas vary between organizations depending on the nature of the business. For instance, retailers do not need a production function.

Administration A support function required by all business Tasks vary from: Opening mail, prepare and file documents, send emails and faxes Arranging travel, important events, staff meetings, visits by foreign customers Senior administrators: monitor budgets, interviewing new staff for their departments Poor administration can be ____________ for the company’s image. Efficient administration = smooth running

Customer service Business ___________________who have an enquiry or complaint. Customers expect prompt, polite and knowledgeable response when they make contact. Customer service train staff to handle enquires and complaints positively and professionally.

Distribution Ensuring goods are delivered to the right place on the right time and in the right condition. Many organization usually _______________________ Cheaper than employing own expert

Accounts and finance Accountants record, classify and summarize business transactions. Involves 4 interconnected phases: Journalizing Ledger-posting Trial balance Preparing __________________(Balance Sheets, Profit and Loss Accounts, etc.) Users of accounting information: Internal users (management, employees, owners) External users (creditors, investors, customers, regulatory authorities)

Accounts and finance (cont’d) The finance function is a resource to assist managers in running the business. Use information to: Make strategic decisions Cash management Manage accounting information ________________

Human resources The human resources of a business are its employees. Well trained, motivated and committed employees drives the success of the organization Responsible in: Recruitment Training (new and current employees) Reduce turnover Increase productivity Ensures ___________________________

Human resources (cont’d) Employees expectation: Fair compensation Appropriate working environment Training and ______________ Support over health and personal problems Meeting these expectation may increase motivation. HR helps by: Monitoring work conditions Have staff welfare policies Ensure pay rates are _________________

Marketing Identifying and meeting customer needs. Marketing mix: Product - who are the customers? What do they want to buy? Price – how much to charge? Promotion – how to tell people about the products? Place – how and where to distribute the products?

sales Customer need more information for complex or expensive items Therefore, important to ____________________ Marketing and sale have close relationship Sales forward important customer feedback to help marketing determine new trends in customer behavior.

Production Manufacturing or assembling goods Must ensure good are produces on time and of right _________________.

Research and development Concerned with new product developments and improvements to existing products/ product lines. Improvements to existing products: As a result of market research (marketing) or customer feedback (sales) New __________________may develop because of scientific or technological advancement. R&D work with designers to develop usable products at reasonable cost, sold at competitive price and safe to use.

Relationship between different functional areas All areas need information and support from each other for the organization to operate effectively. Communication and cooperation is key for business to achieve its aims and objectives. Joint decisions between ________________must be made to satisfy everyone’s needs.

Tutorial questions Identify three issues over which different functional areas would need to work together and explain which department would be involved. What is the difference between sales and marketing function? Why is it important that information flows between functional areas?