Functional Areas of a Business

Introduction

My focus on this assignment is RPZ Marketing company that offers marketing consultancy. The company’s primary goal is to be a one-stop-shop for its clients’ marketing needs. A business needs to have different parts to perform and control its functions. Separating business operations into functional areas allows each to function within its area of expertise which builds efficiency and effectiveness across the business as a whole (Benstead, 2019). The three functional areas that I believe are essential to the organizational structure of the RPZ Marketing company are Human Resources, Information Technology, and Finance and Accounting.

Human Resources

Employees are the greatest resource of a company, and for a business to succeed, it is essential to look after its employees. Human resources functions manage and develop employees in an organization. The Human Resources has transitioned over time from just hiring, firing, and annual pay review to playing a significant role in developing a positive business culture and improving employee engagement and productivity (Benstead, 2019). HR is very instrumental in the overall success of a business. The core roles of the HR function include recruitment, employee training and development, managing payroll and benefits, ensuring that the company conforms to the labor laws (Benstead, 2019).

The HR function will play an immense role in helping RPZ Marketing company achieve its goals. RPZ Marketing company was formed as a result of a merger between a traditional marketing company called Genaflek and a more dynamic modern marketing company called RPZ Social Media Analytics. The human resource challenges facing RPZ Marketing is that there are very few consultants with skills in both social media and traditional marketing. There is a need to train employees to ensure that they gain expertise in both traditional and social media marketing skills. By training the staff to be all-round marketing consultants, it means that a consultant can meet all the needs of a client and establish one on one relationship with clients which is good for business.

Information Technology

In the modern world, the use of computer technology has become vital for business operations across the various functions of a business. A business needs internet and phone services, and the Information Technology function ensures that technology in the company works properly and is up to date. The IT function is also responsible for safeguarding the integrity of data and ensure that the business information and computer systems are safe (Importance of Information Technology in Business, 2019).

At RPZ Marketing, the information technology function is essential for assessing the technological needs of the new company. As a social media company, RPZ marketing requires internet and functional computer and information systems for the efficient running of the day to day operations of the company. The IT function will ensure that every department of the business has the right technology, which includes the internet, personal computers, software and hardware applications.

Finance and Accounting

The finance and accounting function is critical in the management of the business finances. A business needs to account for its revenue and expenses, and the finance and accounting department manages the flow of cash, which crucial in directing the course of the business. Finance and accounting department enables a company to keep track of income and expenditure, ensure legal compliance, and provide stakeholders, management, and administration with quantifiable fiscal information which is crucial in making business decisions (Role of Accounting in Business and Why It’s Important 2019). The Finance and Accounting function creates budgets and financial records, analyzes financial performance, and plays a significant role in the development of a business strategy.

At RPZ, the Finance and Accounting function must be consulted before the company makes any financial decisions. For example, if the company decides to train its employees, the finance and accounting department must be consulted.

Recommended Organizational Structure

An organizational structure helps define how a business works and the organization of roles in the business (Morgan, 2019). There are several organizational structures that a business can adapt and each has its pros and cons. A company needs to find a form of organizational structure that aligns with its mission and vision.

For the RPZ Marketing company, my recommendation would be that the company adopts a hybrid organizational structure. In a hybrid structure, a spider web-based structure is used where a group of individuals work together to accomplish shared goals. A hybrid is suitable for a growing company where there are fewer employees since it offers flexibility in job distribution and the assignment of job roles.

Conclusion

Having well defined functional areas in a business is critical in enhancing efficiency and effectiveness in the way the business operates. Also, having an organizational structure is essential in establishing and supporting the company’s mission as well as determining departmental and employee functions. An organizational structure is instrumental in outlining executions of priorities and functions of a business. RPZ Marketing should define, implement and define functional areas and well outlined organizational structure as it sets its foundation of becoming a one-stop-shop for its clients’ marketing needs. The Human Resources department takes care of the company workforce, the IT Department ensures the company has the technology needed for the day to day operations, and the finance and accounting department helps the company in evaluating the performance of the business and in creating budgets and future projections.

References

Benstead, S. (2019, January 3). Why is Human Resources Important? HR Software Online | Cloud-based HR Systems for SMEs. https://www.breathehr.com/blog/why-is-human-resources-important

Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), 4-29.

The Importance of Information Technology in Business. (2019, August 28). South College. https://www.south.edu/blog/importance-information-technology-business/

The Role of Accounting in Business and Why It’s Important. (2019, February 19). CPA Firm Tampa. https://www.pdr-cpa.com/knowledge-center/blog/role-of-accounting-in-business