SS3 Commerce Lesson Note on Business Organization

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BUSINESS ORGANIZATION

There are numerous and functional units of business organization, some of these would be explained below;

Personnel department    – This unit is responsible for the recruitment, guidance, integration , motivation, maintenance , supervision,  and discipline of the human resources under the control of the firm.

The function of the personnel department include employment, training and development , welfare of employees benefits and wages and salaries administration.

Marketing department – This is also called sales function. This is concerned with the marketing, sales and distribution of goods produced. They make sure that the goods produced gets to the final consumers. Other functions include the following:

1. Conducting research to discover what is needed by which set or class of people at a particular time.
2. Market information system
3. Assisting the company in product quality improvement programmes.
4. Setting price of company’s products.
5. To advertise and sell goods
6. To give orientation to consumers about the goods of the organization.

Production department

This department produces goods under the direction of the production manager, who is the head, the function of departments are:

1. Cost control
2. To produce goods of right quality
3. To produce goods of actual quality
4. To research and develop new products
5. To design products
6. Production of goods at the right time.

Purchasing department

The purchasing department makes arrangement for purchase of all items required by the business.  They perform functions such as

1. Purchase of raw materials
2. Purchase of assets
3. Storage and control of stock
4. Warehousing of goods
5. Maintaining accurate record of sources of materials.

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