L2 Business Practice Topic 3 Module 10 hlayiso.com

BUSINESS PRACTICE LEVEL 2 TOPIC 3: STRUCTURE OF AN ORGANISATION AS A WORKPLACE MODULE 10 SUPPORT FUNCTIONS WITHIN AN ORGANISATION Downloaded from hlayiso.com

LESSON OBJECTIVES Learn to understand the concept of support functions Learn about the relationship between support functions and other departments Learn to understand how support units add value to the organisation. Downloaded from hlayiso.com

10.1 The concept of support functions and their operation in the firm The meaning of support functions  Information Technology – supporting computer usage  Human Resources – supporting all staff activities  Finance – supporting financial requirements  Administration – supporting and coordinating all departments. Downloaded from hlayiso.com

The finance department as a support function Function of finance department is acquisition of long term funds. This can be from own capital or borrowed capital. Managing working capital Capital is split into fixed and working capital Fixed Working capital Land and building Cash Vehicles Debtors Machinery Stock Other long term purchases Creditors Managing risk and insurance In measuring our chances of loss we have to estimate the possibility of a loss occurring. We manage pure risk by reducing the need for outside cover, by control procedures, and asset management. If we cannot cover the risk, we insure with a third party. Downloaded from hlayiso.com

10.2 RELATIONSHIPS BETWEEN SUPPORT FUNCTION A business has an employee organisational structure so that each employee knows who he or she reports too, who are his or her subordinates and where and where they fit in with the overall plan. The structure shows how different positions relate to each other, and responsibility for work tasks. This enables the workers’ skills, and should eliminate duplication of effort. Structures can be separated into:  Functional structure  Line structure Downloaded from hlayiso.com

Functional structure This is the most common type of structure, separating management activities, into core activities. Downloaded from hlayiso.com

Activities under all managers Downloaded from hlayiso.com

Geographical structure Downloaded from hlayiso.com

Line organisational structure Downloaded from hlayiso.com

10.3 HOW SUPPORT UNITS ADD VALUE TO THE ORGANISATION Each organisation requires different support systems and these include:  Information technology, where raw data is captures and used to produce information fro management control.  Finance, which ensure that funds are available where and when they are needed.  Human resource, which plans for and support staff.  Research and Development, which evaluates and develops opportunities for the future. Downloaded from hlayiso.com

Functions of Human Resource Department  Finding qualified workers - Recruiting candidate by adverts - Induction process to train new staff members in company way and showing them their responsibilities  Developing qualified workers - Identifying training needs - Arranging training for staff to improve their skills  Keeping qualified workers - developing remuneration packages, so that the person is paid adequately. Department will also deal with labour relations issues such as grievance and disciplinary procedures and employee benefits. Downloaded from hlayiso.com

ENJOY!!!! ACTIVITIES Activity 10.1 Activity 10.2 Activity 10.3 Activity 10.4 Downloaded from hlayiso.com