Types of Business Functions

Every running business is backed up by various shown and hidden functions helping it generate sales and earn revenues. These Business functions or tasks usually vary in different businesses but overall they are the same from production to qualify sales.

10 Different Types of Business Functions

If you are new to business world and thinking to start profit generating business in your area or somewhere in world, there are many but 10 most important things to consider when starting a new business. Once it is started, the next step is to perform functions.

Creation and Distribution of Utilities

Business involves creation and distribution of goods with the object of earning profit. A business man conducts this process for his own interest. It also includes the mining, communication process and transportation functions.

Planning and Controlling Function

It is one of the most difficult business functions in the business undertaking. It is largely concerned with the determination of policy for plant and following them through production. Any divergence from the target may affect the function to be performed at the next stage. 

Technology and Engineering Function

Engineering department in large technical industries advise the supervisors on technical matters. Research, development and designing of the product function is often performed under the engineering department.

Finance Function

You do everything to be Financially Independent and this is the most important function in the private enterprise by which all the activities are conducted. The funds are in the custody of treasurer who is liable for all types of payments belonging to money. Credit control, purchase discount, wages and loans are also financial function.

Manufacturing Function

Manufacturing is primarily concerned with the conversion of raw material into finished or intermediate. In other words it is the creation of form utility. Manufacturing process may only involve the changing of the nature of the material, as this function is done in refining or chemical industry, But really it includes both the changing of the nature of the material and its form as it is conducted in the steel industry.

Personnel Function

The personnel function is conducted by personnel department which is also categorized into 3 sub categories and named as Human Resources Department, Personnel Management Department, and Industrial Relation Department. Usually, the following functions are centralized by this department:

• Organization
• Establishing policies
• Staff development as promotion policies, training program
• Remuneration (i.e. job evaluation, grading, merit rating, the establishment of wages, and salary structure.)
• Relationship scheme through trade unions, counseling, etc.
• Casting and budgeting
• Record Keeping

Accounting Function

Businesses understand accounting importance, So, they hire an accounting department to perform professional service. The accountant or chief accountant is in charge of this department who conducts and supervises the financing, accounting, budgeting, and costing activities; regarded as one of the tools of administration.

Purchasing Function

It is one of the highly important functions in manufacturing organization. There are several specialists in their respective fields in the purchase department who also increase the efficiency of work and help to maintain reasonable prices of the product. The purchasing function is closely related to sales.

Sales Function

It is productive function of business which is generally performed by sales department. It involves transfer of ownership of goods from one hand to another in exchange for money.

Sales function also includes grading, where housing, transporting, sorting, collecting and packaging matters. These sales functions are performed with Modern & Traditional Selling Techniques.

Organization

Organization is generally regarded as grouping of activities in a coordinated manner with a view to obtaining maximum benefits. In the words of Richard “Organization is the structural relationship between the various factors in an enterprise”.

According to this concept three factors of an enterprise i.e. Men, Material and Management are combined to attain the objects of the business. So organization is the relationship between the various objectives and factors.

Some writers refer the word ‘organization’ to the individuals functioning within an organizational unit as well as to the whole functioning. However, it is advisable that organizational changes should be made according to changed circumstances in order to meet present environment.