Fundamentals & Roles of Building A Business Function [2022]

Fundamentals and roles of business function

Business function can be one of the most important aspects of its success. However, there are plenty of other things to consider when trying to determine what that function should be.

Many people would probably think that all a business does is its job; managing money, sales, and advertising.

But in reality, a business is an ecosystem. It has a lot more to do with family, friends, and communities than it does with the money. A business can’t be successful without the people who live in it.

This guide will help you understand the fundamentals and role of a business function in the success of your company, so you can choose the best ones for your business.

An Introduction to Business Function

In your business, you may have several functions that handle specific tasks. This can confuse you when you need to know who to ask about an issue.

The role and purpose of a business structure are not just there for show—it plays an important role in how it operates.

From marketing and accounting to IT and sales, every department has its own unique function. Understanding which function serves which purpose can help make sense of how your company works.

Before determining what your business needs, conduct market research; then hire employees who are knowledgeable about their duties to help your company operate effectively.

The more you know about each function, the better equipped you’ll be to tackle any issues that arise.

 

Business Function Explained

A business function, also known as an enterprise function, is an organizational unit that performs some specific role in the overall running of a business entity.

business function explained

Many businesses, from small startups to multinational conglomerates–have at least one business function and often many more that allow them to operate efficiently and provide their customers with the best possible service.

For example, one popular business function is customer service, which provides help and information on products or services to customers over the phone or in-person whenever they need it and regardless of whether they’re currently buying anything from the company or not.

When you first learn about business functions, it’s easy to get overwhelmed. With all that is going on behind the scenes, it’s easy to see why so many people feel like their job doesn’t matter to company success.

However, every part of your business—no matter how large or small—contributes to what makes your organizational environment great. The trick is knowing where you fit in and what exactly you need to do. Considers these tips as your guide.

 

What is Business Function?

At its core, a function describes what an employee does within an organization. For example, if they tasked you with marketing your product, then you are in a marketing function.

Although some companies divide roles into smaller departments (such as finance), they still consider each department a single function because they share similar responsibilities and tasks.

Within larger organizational establishments, functions may also refer to areas of expertise such as customer service or IT.

This means employees responsible for handling calls or fixing computers would both fall under those particular departments instead of different ones entirely.

Bottom line: when someone says functions they really mean departments but don’t want to say it outright for whatever reason (usually because they think it sounds better).

Confusing? A bit, yes.

But once you get used to thinking about them in these terms, it will be much easier to understand how a company works from top-to-bottom.

 

What Do I Do?

There are three main questions that can help you figure out where your job fits in:

  1. What kind of work do I do?
  2. Who am I working for?
  3. Who am I working with?

Asking yourself these questions should give you a pretty good idea about which function(s) might apply to your role at work.

From there, all that’s left is putting together an action plan so that you can maximize your contributions and make sure everyone else knows what their jobs are too!

 

How Do I Manage My Time?

In an ideal world, we would all have infinite time to do everything we wanted. Of course, that’s not reality and often requires trade-offs. Figuring out how to maximize our time is one of those decisions every adult must make on their own.

 

While there are some very well-known productivity apps and tools (e.g., Teamwork), there is no one size fits all answer for how to manage your time effectively.

What works for you might differ completely from what works for someone else.

The best way to figure out what works best is to experiment with different approaches until you find something that resonates with you personally.

  • What feels right?
  • What helps you get more done?

Those answers will help guide your decision-making process going forward. It can also be helpful to ask others for advice or even seek professional help if you feel stuck.

Just don’t let yourself get overwhelmed by trying too many things at once. Small changes add up over time and can help you take control of your day-to-day life in meaningful ways.

For example, keeping track of where your time goes each day could reveal ways to increase efficiency in various areas—and free up additional time in your schedule!

Asking yourself how much time you spend doing certain tasks could lead to better planning, making it easier to prioritize important projects and obligations while eliminating distractions.

Small changes like these can ultimately have a big impact on your overall quality of life and career success.

 

 Examples of Business Function

Sales, Accounting, Finance, and HR are all business functions examples. To clarify any confusion that can exist around roles in business functions (i.e., sales is a role, not a function), think about what you want to accomplish when you hire or promote an employee into these roles.

business function sales woman closing deal

 

  • In sales, we are looking for someone to bring us revenue by closing deals and making sure our customers are satisfied.
  • In accounting, we look for someone who will make sure our books are balanced and ready for tax season and someone who can help with financial projections. And so on…

Each role has specific duties but they all contribute to one main goal: maximizing your profit.

Understanding how each business function works together is essential in growing your company, saving time, creating less stress, and producing greater results.

Okay, let’s dive in further

 

1. Sales:

This is the first business function example. In sales, you are focused on acquiring new customers and closing deals.

This role requires strong communication technology and skills and an ability to listen to your customer’s needs while also being able to effectively communicate your product or service’s value proposition.

The goal is to make sure that every customer is happy with their purchase so they return for more business in the future (and refer you).

If your sales team can accomplish these goals, then it’s safe to say that you have a successful sales team!

 

2. Accounting:

The second business function example is accounting. In accounting, you are focused on tracking your business’s financials and ensuring that everything is in order for tax season and future projections.

This role requires strong analytical skills and an ability to solve problems using numbers and formulas.

The goal is to make sure that your company’s books are always balanced so you can avoid any unnecessary fees or fines from taxing authorities.

If your accounting team can accomplish these goals, then it’s safe to say that you have a successful accounting team!

 

3. Finance:

The third business function example is finance. In finance, you are focused on analyzing data and making financial projections to make sure your company is on track for future growth.

This role requires strong analytical skills and an ability to interpret data in order to create useful projections that can help make key business decisions.

The goal is to make sure that your company has enough capital for future growth opportunities (i.e., new hires, product development, expansion).

If your finance team can accomplish these goals, then it’s safe to say that you have a successful finance team!

 

4. Human Resources (HR):

The fourth business function example is Human Resources. In HR, you are focused on hiring and managing employees so that they can perform their duties efficiently and effectively.

This role requires strong communication technology skills and an ability to handle conflict between team members.

The goal is to make sure that your company has enough talent to reach its business goals while keeping your employees happy at work so they stay with your company for years to come!

If your HR team or temporary personnel resource manager can accomplish these goals, then it’s safe to say that you have a successful HR team!

 

Career Path in Business Functions

What can you do with your college degree in business? You might be surprised. There are multiple career paths for those pursuing degrees in business.

There are few jobs in which someone can climb from entry-level all the way to CEO without moving into different areas of business along the way.

Understanding what business functions exist, and how they work together, is crucial to making career decisions that will allow you to develop your skills and impact your organizational environment most effectively.

Let’s start by defining these terms.

function is an umbrella term for divisions within a company that serve particular roles related to its operations.

The three main types of business functions are

  • operational,
  • support, and
  • strategic.

Operational roles include sales, marketing, customer service, production, and quality assurance

Support functions also include other functions like human resources (HR), finance/accounting (F/A), and information technology (IT)

Strategic positions cover leadership positions such as chief executive officer (CEO), chief financial officer (CFO), or chief operating officer (COO).

All three types of business functions play vital roles in any successful enterprise—and understanding each one’s role is key to maximizing your own potential.

 

Role of a Business Function (Job Description & Responsibilities)

Though it’s impossible to get everything in life, job descriptions have become more important than ever. That said, most companies don’t really bother with them. Instead, they look at jobs and tasks, not what it takes to do them well.

Job descriptions can help you avoid that mistake by highlighting both.

A detailed job description is like an old-fashioned camera:

It has multiple lenses (key responsibilities) that can reveal different aspects of each job (job position).

Take time now to take inventory and think about how those jobs should be described for employees and for candidates before you scramble when you need new talent quickly!

Here are some Business functions Job Description & Responsibilities

 

1. Finance & Acccounting:

Finance and accounting professionals perform various tasks related to financial reporting, tax planning, budgeting, and analyzing financial data. They may also assist with investor relations and securities compliance issues.

financial accounting dept

Finance and accounting professionals typically need at least a bachelor’s degree in finance or accounting; some positions require an advanced degree or certification. Most employers often prefer to hire candidates who have at least several years of experience in these fields.

We expect job growth to be slower than average for all occupations through 2024, due largely to declining employment opportunities for accountants as businesses increasingly outsource their bookkeeping work.

Opportunities should be best for those who are certified public accountants (CPAs) or who have experience working with companies that employ large numbers of international workers.

 

2. Marketing:

Marketing professionals develop strategies and plans designed to help businesses promote their products and services and increase sales.

marketing professionals

They create marketing campaigns, design logos, and branding elements, prepare advertising copy, and select promotional items such as packaging.

They often work closely with other members of a company’s sales team to coordinate promotional efforts across multiple channels such as

  • social media platforms,
  • direct mail campaigns,
  • e-mail newsletters,
  • press releases, and
  • trade shows.

 

3. Sales:

Sales representatives sell goods or services directly to customers or clients in person or over the phone.

Their goal is to get an order from customers by sharing information about product features and benefits while overcoming objections concerning price or other factors that could prevent them from making a purchase decision.

4. OPERATIONS/LOGISTICS:

Operations and logistics managers oversee operations involved in producing or delivering a company’s products or services.

The operations function includes

  1. Planning inventory levels
  2. Determining how much labor it will need to meet the demand
  3. Ensuring that necessary equipment is available when needed
  4. Ensuring efficient movement of materials between locations and vendors
  5. Managing transportation costs
  6. Overseeing production schedules and staff performance
  7. Controlling waste produced during manufacturing processes and shipping activities (e.g., hazardous materials)
  8. Monitoring equipment performance to ensure safety standards are met
  9. Identifying potential new technologies that could improve efficiency without compromising quality standards
  10. Evaluating suppliers based on cost-effectiveness and risk management concerns such as quality control measures and reliability levels of delivery dates/times etc.
  11. Developing operating budgets based on revenue projections using supply chain management techniques, etc.

 

5. Human Resources (HR)

When people think of HR, they often think only of hiring employees or handling workplace complaints. But HR is actually much more than that.

business function - HR, human resources concept

Human Resources encompasses all things relating to employees at a company, including administrative benefits and payroll.

For example, one human resources manager may work specifically with benefits while another works with payroll.

One main benefit of having an HR department is keeping track of employee records like tax forms and retirement accounts so they aren’t lost among other company documents when an employee leaves (or changes departments).

Job and Responsibilities

Professionals manage and oversee all aspects of an organization’s human capital—its employees, including recruitment, hiring, training, administrative benefits, performance management, employee relations, and termination.

They may also provide guidance to managers on how to handle employee issues or conduct training sessions for managers on effective leadership skills.

Some HR professionals manage payroll and benefits functions as well.

The HR department is also responsible for keeping tabs on important files from other departments as well to make sure documents related to the company are in order

 

6. Information Technology

Information technology (IT) specialists design, develop, implement and maintain computer hardware and software consultancy systems that help organizations store data efficiently; create databases and send information over networks.

They keep track of inventory; schedule meetings and events; perform accounting functions such as paying bills or recording transactions in a database; automate business processes such as customer service operations and supply chain management systems.

ITs are also responsible for monitoring security systems to ensure privacy protection and prevent cybercrime; developing new technologies that can improve efficiency without compromising quality standards, etc.

 

Conclusion

In summary, business functions are critical to any company’s success. They define and shape what your company is and how it functions.

They also play an important role in how you lead and manage your team. If you want to learn more about some specific areas, check out our resources on HR and marketing.

Keep in mind that each function has its own duties and responsibilities, so what works for one function may not work for another.

When creating or expanding your company’s functions, make sure you find ones that align with your overall mission and each department’s goals.

 

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