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HN Global | BTEC Higher Nationals | Pearson qualifications

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HN Global is an exciting new online platform created by Pearson to engage with Higher National students around the world.

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Difference Between Franchising, Joint Ventures and Licensing

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Difference Between Franchising, Joint Ventures and Licensing

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This article aims to explore the relationship between different organisational functions. It also aims to examine how they link to organisational objectives and structures. The organisational functions refer to a set of activities that support the main tasks of an organisation and its overall goals. These functions help organisations in supporting their business processes and decision making. This article identifies the key organisational functions first, and then examine their relationship with each other.
HR (Human Resource)
HR is the function that is concerned with people who are an integral part of an organisation. It is a business function that is dedicated to attracting, engaging, and retaining employees. The HR department in an organisation is entrusted with various responsibilities. Some of these include hiring new employees, conducting performance reviews, providing employee training, managing employee benefits, ensuring compliance with government regulations, etc.

One of the top priorities for HR leaders is managing change within their organizations. This includes playing a significant role in growing their businesses while innovating for success (Garner, 2021, cited in Williams, 2021). However, change management is not an easy task, and requires detailed preparations and planning.
Finance
The finance department is responsible for managing the financial aspects of an organisation. The finances include collecting revenue from customers, managing expenses, and managing the cash flow. The finance department is also responsible for creating budgets for future projects, taking care of debt obligations, and meeting the financial needs of the stakeholders.
Marketing
Marketing is about understanding the needs and desires of customers. Its goal is to increase the sales of a product/service by creating a positive image of the brand in the minds of the target customers. The marketing department is responsible for creating a marketing strategy which includes creating a marketing plan, defining the target audience, identifying the right channels for marketing the product/service, and setting the budget for the overall marketing activities. Marketing can help businesses develop and increase brand awareness, engagement, and sales with promotional campaigns (Indeed, 2021).
Research and Development (R&D)
The research and development department explores new ideas, designs prototypes, and tests the resulting products or services. It also works closely with the marketing department when developing new products and services. This function is so important that all big organisations spend millions of dollars on it every year.
Operations
Operations is responsible for using resources such as raw materials, finance, and workforce to create finished goods or services. It then ensures that these goods or services arrive on time and to the right quality standards (BBC, 2022). In short, the operations department is responsible for managing the day-to-day activities of an organisation. It also manages inventory, production, quality control, and logistics.
Supply chain (Sourcing)
Supply chain management is a very important function in a business. Imagine, how fashion companies get their products manufactured abroad. GAP, Primark, H&M, Next and may other companies work with suppliers in countries such as China, India, Bangladesh, Pakistan, Vietnam, Sri Lanka, Turkey etc.

A sourcing department deals with the pricing and purchasing of raw materials, components, equipment, supplies, and services, often purchasing high volumes of items with the goal of lower costs (Indeed, 2021). Without appropriate and affordable access to suppliers and raw materials, many companies will be unable to function profitably; hence the importance of supply chain management.
Information technology (IT)
The IT department is responsible for managing information technology aspects of an organisation. It is responsible for managing computer networks, computer hardware, and software applications. It also manages network security, data security, and privacy issues.
Relationship between different organisational functions
Various functions of an organisation are interdependent with each other. For example, the marketing function needs information from the research & development department in order to know what consumers want and need. Similarly, the sales function requires information about the company's products and services. This information helps the sales team meet with customers and close deals.

The production and supply chain functions are also interdependent. The production function needs materials to produce goods or services. For example, a car manufacturing company needs parts in order to produce a car. The supply chain function manages materials in order to complete deliveries on time.

IT department is very important in any organisation. It helps the organisation run operations smoothly. However, it must depend on the HR department to provide it with appropriately skilled IT staff. Indeed, HR department plays a crucial role in the success of an organisation by addressing its human resource needs. This shows that different organisational functions are interdependent with each other as they depend on each other to function properly.
How do business functions link to organisational objectives and structures?
Business functions link to organisational structures in different ways. For example, some of the organisations are structured in line with their functions and have department such as marketing department, IT department, HR department etc.

Likewise, wider organisational objectives can not be successfully achieved if departmental objectives are not achieved. For instance, the growth objectives of a company are usually influenced by the current sales and progress. If the company is not doing well in terms of sales, and personnel management, thinking of further growth could be seriously questioned.
Summary of the relationship between different organisational functions
There are a variety of functions that an organisation needs to conduct to runt its operations efficiently. These functions work in collaboration with each other. Weaknesses in one may have massive knock-on impact on the rest of the others. Therefore, organisations must be agile, innovative, and have the ability to carry out those functions appropriately.

Hope you like this article: 'Relationship between different organisational functions'. Please share the article link on social media to support our work. You may also like reading:
Size and scope of different types of organisations Internal factors affecting businesses
Last update: 21 October 2022
References:
BBC (2022) Business operations, available at: https://www.bbc.co.uk/bitesize/guides/zhs4gwx/revision/1 (accessed 21 October 2022)

Indeed (2021) Why is marketing important in business, available at: https://www.indeed.com/career-advice/career-development/why-marketing (accessed 20 October 2022)

Williams, C. (2021) Redefining the role of HR in 2021, available at: https://www.forbes.com/sites/forbeshumanresourcescouncil/2021/03/08/redefining-the-role-of-hr-in-2021/?sh=6dea807d56d5 (accessed 21 October 2022)

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This article aims to explore the relationship between different organisational functions. It also aims to examine how they link to.......

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Before we dive deep into the SWOT analysis, let us get the business overview of Primark. Primark is a leading international fashion retailer known for offering a diverse range of trendy clothing, footwear, accessories, and homeware at affordable prices.

The company was founded in 1969 in Dublin, Ireland, by Arthur Ryan and operated initially under the name Penneys. Today, Primark is a subsidiary of Associated British Foods (ABF) and operates more than 400 stores across Europe and the United States.

Primark's business model is centered around delivering value to customers by offering high-quality, fashionable products at low prices. The company achieved this by keeping tight control over its supply chain and employing a high-volume, low-margin strategy. By negotiating favorable contracts with suppliers and maintaining efficient distribution channels, Primark minimizes costs and passes the savings on to its customers.

The company's product lines cater to men, women, and children, including clothing, footwear, accessories, beauty products, and homeware. Primark is known for its quick response to changing fashion trends, which allows it to stay relevant and attract customers looking for the latest styles.

Financial Performance: Primark generated 7.7 billion Pounds in 2022, with 756 million pounds as operating profits.

Here is a SWOT analysis for Primark:

A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture's success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT Analysis of Primark.
SWOT Analysis: Meaning, Importance, and Examples
Strengths

Weaknesses

Opportunities

Threats

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Primark SWOT Analysis - The Strategy Story

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A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business. In this article we do a SWOT Analysis of Primark.

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Join a game of kahoot here. Kahoot! is a free game-based learning platform that makes it fun to learn - any subject, in any language, on any device, for all ages!

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Coca Cola PESTLE Analysis - Details - Kahoot!

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How to Use Google Translate - Beginner's Guide

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Why Is Marketing Important For Businesses?

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Significance of Marketing with other Functions

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Significance of Marketing with other Functions

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Role of Marketing in Changing Enviroment

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Role of Marketing in Changing Enviroment

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Assignment 2 - Marketing Plan and Media Plan

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Assignment 2 - Marketing Plan and Media Plan

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Unit 2: Developing a Marketing Campaign Quiz - Details - Kahoot!

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Ex 2: Using Marketing Mix to Implement the Marketing Strategy

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Ex 2: Using Marketing Mix to Implement the Marketing Strategy