L2 Business Practice Module 10 hlayiso.com

BUSINESS PRACTICE LEVEL 2 MODULE 10 SUPPORT FUNCTIONS WITHIN AN ORGANISATION Downloaded from hlayiso.com

 10.2 Relations between support functions  10.1 The concept of support functions and their operation in the firm  10.3 How support units add value to organisation Downloaded from hlayiso.com

The meaning of support function • Many suppliers advertise their ability to provide support services. These are installation, maintenance, training and advice. • Support functions ensure that the business runs smoothly, and include Information Technology- supporting computer usage Human Resource – supporting all staff activities Finance – supporting financial requirements Administration- supporting and coordinating all departments. Downloaded from hlayiso.com

Finance department as a support function Amongst other things, the finance function is responsible for the acquisition of long term funds. This can be from Own Capital and borrowed capital e.g loan Managing working Capital Capital can be split into fixed and working capital. Fixed is investment in land, vehicles, machinery and other long term purchases. Working capital is that we work with and change every day. Managing risk and insurance In measuring our chances of loss we have to estimate the possibility ofDownloaded a loss occurring. from hlayiso.com

10.2 Relationships between support functions A business has an employee organizational structure so that each employee knows who he or she reports to, who are his or her subordinates and where they fit in with the overall plan. The structure shows how different positions relate to each other, and responsibility for works tasks. Structure can be separated into  Functional structure  Line structure Downloaded from hlayiso.com

10.3 How support units add value to the organistion • Each organization requires different support system and these include: Information technology, where raw data is captured and used to produce information for management and control Finance, which ensures that funds are available where and when they are need Human Resources, which plans for and supports all staff. Research and Development, which evaluates and develops opportunities for the future. Downloaded from hlayiso.com

We will use the Human Resource Department as our example of how a support units adds value. • The 3 main functions of the HR functions are: Finding qualified workers by planning for HR needs by doing a job analysis to determine which staff is needed and writing job descriptions for unfilled positions Developing qualified workers by identifying training needs and arranging training for staff to improve their skill levels. Keeping qualified workers involves developing the remuneration package, so that the person is paid adequately. Downloaded from hlayiso.com