What are the functional areas of a company?

What are the functional areas of a company?

It is known to all that, when a company acquires considerable dimensions, it needs to be fragmented into different departments in which each one of them is dedicated to a specific activity, counting on professionals and experts in the appropriate field. In this way, we achieve that in each area what it does best is carried out exclusively, giving rise to the appearance of different functional areas in our company, which in this article we will explain, What are the functional areas of a company?

What are the functional areas of a company? Business Fixes

Functional area of administration and human resources of a company

This area is in charge of managing everything classified as “paperwork” and any type of bureaucratic and administrative procedure. Normally it is also linked to human resources activities, since their management also involves a large number of procedures. The activities to be developed are the following:

  • Recruitment, selection and hiring of personnel, carrying out all the physical and bureaucratic procedures.
  • Payment and management of salaries, salaries and employee compensation policies.
  • Promotion of good labor relations and adequate motivation of employees.
  • Management of all those procedures that are necessary to carry out the activities of the company.

Accounting and finance

In this department of the company, all activities related to the management and control of the economic resources of the company are carried out, as well as recording in the accounting books where the money comes from and where it is used. It takes into account the following aspects:

  • Credits and loans that the company must face.
  • Payment and collection relationships with suppliers and customers.
  • Control of the interest rate of previous loans.
  • Tax returns.
  • Investments of the company in financial assets.

Functional area of Production of a company

This area is in charge of transforming the raw material into finished products to be able to sell them to customers, or to generate and provide the services that the company offers. For this, they will have the necessary machinery in possession and operation, and they will be in charge of managing them in the most efficient way possible. Its activities are:

  • Production of goods and services.
  • Design of products and services.
  • Maintenance of machinery and the place of production.
  • Stock storage.

Functional area of sales and marketing of a company?

The sales and marketing area is in charge of carrying out all the necessary activities so that the product reaches the customer from its place of production, as well as ensuring that it meets all the customer’s needs and expectations. Take the following actions:

  • Management of points of sale.
  • Marketing mix: price, product promotion and distribution.
  • Communication with clients.

Investigation of consumer needs.

Ralph Fixes

Just another guy obsessed with self-improvement, life, and business.

Leave a Reply