The departments of a business Edexcel International GCSE Business revision

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In plain words

In a business of any size, the work is divided into departments, each responsible for one kind of job. They are called functional areas.

They depend on each other. Marketing cannot promise what production cannot make, and neither can spend what finance has not got.

4 things to know

  1. Human resources: planning the workforce, recruitment and selection, training, health and safety, pay and conditions, and handling discipline, dismissal and redundancy.
  2. Finance: paying wages, cash-flow forecasting, budgets, and keeping the accounts.
  3. Marketing: market research, product planning, pricing, promotion and advertising, packaging, distribution and customer service.
  4. Production (operations): making the product, designing new products, quality control and stock control.

Tips and tricks

  • Work out the department from the task. Anything about people and their jobs is human resources. Anything about money coming in and going out is finance.
  • Departments must share information. A sales promotion planned by marketing fails if production has not been told to make more.
5 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

The departments of a business: 5 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

  1. Which department is responsible for recruiting new employees?
    • human resources (the answer)
    • finance
    • marketing
    • production

    Recruitment and selection belong to human resources.

  2. Which task belongs to the finance department?
    • designing new products
    • preparing cash-flow forecasts (the answer)
    • interviewing job applicants
    • planning an advertising campaign

    Finance looks after money and the accounts.

  3. Which department carries out quality control?
    • marketing
    • finance
    • production (the answer)
    • human resources

    It checks the goods it makes.

  4. Setting the price of a new product is mainly a task for
    • human resources
    • marketing (the answer)
    • production
    • the trade union

    Price is one element of the marketing mix.

  5. What might happen if marketing runs a big promotion without telling production?
    • Costs fall.
    • The business may not have enough stock to meet demand. (the answer)
    • Quality improves.
    • Fewer customers arrive.

    Departments must coordinate, or customers are let down.

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