Functional Areas of A Business (Company) With Characteristics And Examples
We express that what are the Functional Areas of A Business (Company) and the characteristics of each. Also, what are companies B.
What Are The Functional Areas Of A Business (Company)?
The functional areas of a company are the departments or business units, which have specific functions for the company to function efficiently.
They are teams of employees who have similar skills and experience and, together, meet the needs of the area within the organization. The departments are developed progressively, depending on the growth of the company structure.
In the case of startups or small businesses, it is likely that one person or a few, will be in charge of multiple tasks. When the company grows and, as a consequence, so does its internal structure, it is necessary to create specialized departments or teams that work aligned to the organization’s objectives and policies.
Functional Areas of A Business (Company)
The functional areas of a company are similar to each other, regardless of the area in which they specialize. However, depending on the size of the organization, the structure and distribution of each functional area varies .
In the case of small companies, there are areas that fulfill two or more functions and, in the case of medium or large companies, it is essential to organize the work through different departments or areas, in order to optimize the performance of the company. In a medium or large structure, the functional areas of a company can be:
- Of direction . It is the key area of any company, which makes the decisions , establishes the objectives and directs the rest of the organization. It is responsible for controlling all functional areas.
- Of accounting and finance . It is the area responsible for the monetary and financial management of the company. This encompasses monitoring of employee and supplier payroll, financial reporting, and business automation, for example, using accounting software .
- Production . It is the functional area of the business that, through various processes, converts inputs or raw materials into finished products. To ensure optimum performance of the production process , the area must be in charge of monitoring and quality control at different stages of production.
- Of marketing and advertising . It is the area in charge of acquiring clients and developing an effective communication strategy in order to meet marketing objectives. It develops and coordinates the institutional image, the brand, the products, the points of sale, the diffusion and the promotion.
- Of human resources . It is the area in charge of searching, selecting and recruiting the people that the company needs to employ. In addition, it deals with managing everything related to human capital (administrative, legal, training, internal communication , etc.).
- Of information technologies . It is the area responsible for developing the technological structure, hardware , software, and computer networks within the organization. His tasks span both technical support for employees and information security management to protect corporate data.
- Of service to the customer . It is the area in charge of interacting with clients in order to establish and consolidate the relationship. You must answer queries, process orders, address concerns and complaints, so that the capacity for empathy and negotiation are essential requirements for the area.
- Of purchases . It is the area in charge of purchasing raw materials, machinery, equipment and supplies necessary for the performance of the work of the employees and of the company as a whole. You can also take control of merchandise (stock control) to avoid shortages.
- Of legal . It is the area responsible for providing legal advice to the company, its departments and employees. Its advisory services extend to the development of new businesses, contract management , real estate transactions, customer complaints, product defects, employment law, among others.
- Of innovation . It is the area where new ideas emerge and where their subsequent implementation is consulted, debated and analyzed. The objective of the area is to improve the business practices of the company and for that it is in charge of investigating, analyzing and providing reports for decision-making.
B companies (or B corporations) are a new concept that is part of the current business era and that is changing the way of thinking and developing organizations. Although the structure of each functional area is maintained, its objectives must be aligned to the “triple impact”, made up of three guidelines :
- Being a company that creates a positive impact in the social and environmental fields .
- Being responsible and having the interests of workers, the community and the environment as the primary purpose.
- Be transparent and publish an annual report on social and environmental impact, certified by an external body.
This new paradigm redefines the sense of success in business, where not only is it enough to create a company to generate profits, but it must justify its existence so that it contributes to social and environmental development, without harming or destroying them (as is the case with most current companies, worldwide).
The new paradigm does not conceive of earning money at the cost of misuse of resources. Business success goes hand in hand with the care and development of the entire society .
For this to be possible and for B companies to have a guarantee in their actions, they operate according to social, environmental and transparency standards.
Private companies receive certification from “B corporation”, a global non-profit organization that has offices in the United States, Europe, Canada, Australia, New Zealand and a Latin American association with Sistema B, a non-profit organization.