Regardless of the size and scope of a business and irrespective of the industry in which a company operates, there are a certain set of key core business functions that without which the business would simply not be able to operate successfully.
Whether you are a business major who is looking to become an entrepreneurial trailblazer and launch your own company after graduating, or else you are simply looking to move into the field of business in the next step of your professional career, then you have certainly come to the right place.
Continue reading to learn about the seven key core business functions of any company and how and why they are so integral to the success of a company.
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Accounting & Finance
An obvious and entirely necessary core business function within any organization is that of the accounting and finance department, which not only ensures the financial longevity of the business but also handles projected outgoings and how things may change in the future.
Payroll is often also included as part of the general roles and responsibilities of an employee working in the financing, but payroll is increasingly being handled by human resources employees, who are discussed in detail later on in the article.
The most crucial tasks the finance and accounting department of an organization deal with include accounts payable, which basically means ensuring that every client and vendor is paid in full and on time, and accounts receivable, which is the tracking of all the money that is paid into the business account.
Other roles of the accounting department include management of payroll, managing inventory cost, detailed keeping of records, collecting cash, legal compliance, and budgeting.
One of the most innovative solutions to effectively managing the plethora of roles and responsibilities of the accounting sector is to invest in an automated accounting management system. Such a software package results in heightened data security, a reduction in the risk of human error, accurate and thorough calculations, lower overall costs, and a saving of valuable time.
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Communications
Employees who work in the communications department of a business are solely concentrated on handling public affairs and public relations and essentially promoting the business in a wholly positive manner.
It is for this reason that, to ensure the success and longevity of a business, the communications sector is operating to its maximum potential and highest efficiency level. It would also be pertinent to note that communications can often additionally involve internal communication within the company.
Roles and responsibilities of employees working in communications include the following:
- Approving communications for employees, media, and clients
- Liaising with marketing teams for various campaigns
- Content development and website management
- Social media management
- Designing and distributing internal information
- Attending customer-focused and trading events
- Working on long-term strategies for effective communication
- Developing the ethos and morals of the company in print
Individuals who choose to pursue a professional career in a communications department are usually highly motivated people who are extremely adept at writing with an extensive vocabulary, be able to form strong professional bonds with the media, and have a sound knowledge of social media platforms.
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Human Resources (HR)
If a company has a large number of employees, then the importance of the human resources department can truly never be overstated. When wanting to simply summarize the role of human resources employees, you could accurately state that HR is responsible for the entire management of the complete professional life cycle of every single person working for the company.
Sourcing, shortlisting, and recruiting potential new candidates and employees to the business is one of the largest and most influential roles of HR, which can naturally have a hugely positive, or indeed negative, if a decision is made in error on the business as a whole. If you are interested in an exciting, intensely rewarding, and equally challenging career in human resources and human resources management, then it is strongly advised to enroll in further education degree programs, as there is plenty to learn and become adept at.
Typical skill sets needed for a long and successful career in human resources include an ability to prioritize both your time and your tasks, a high command of computers and computing software, culturally sensitive and awareness, strategy execution and creation, active listening skills, and someone who is a team player.
Other key functions of the human resources department of an organization include processing payroll and dealing with payroll inquiries, updating and distributing new procedures and policies, maintaining and updating employee records, and conducting regular benefit analyses.
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Corporate Strategy
Corporate strategy is almost solely undertaken and exercised by senior executives and board members of a business and is essentially a form of decision-making that takes into account each department across a company and working out how to get the most value from them.
Although the corporate strategy is an essential part of growing and expanding a business, it is usually its own department in companies that own more than one business and takes a more portfolio approach to make decisions.
There are generally recognized to be four principal components of corporate strategy;
- Organizational Design
- Strategic Tradeoffs
- Resource Allocation
- Portfolio Management
Roles and responsibilities involved with corporate and strategic decision-making include, amongst others:
- Generating insights by managing and communicating with stakeholders
- Data collation and analysis across different departments
- Addressing key strategic opportunities and maximizing them
- Managing competitor, industry, financial, and market analyses
- Communicating new and existing strategies company-wide
- Researching business, technological, and consumer trends
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Customer Service
Customer service is again one of the most important key functions, and now, with the takeover of social media platforms as a way for both customers to discover a business and for the business to promote themselves, social media management is often a staple of the customer service department.
Supporting both past, current, and potential customers and clients of the company forms the heart of the customer service department and also involves developing and updating the FAQ section of the company’s website, assessing customer needs in real-time, and being as proactive as possible at all times.
To become a successful customer service worker, there are a number of skillsets and personality attributes that are important, including a natural inclination to take responsibility, self-motivation, high levels of energy, and excellent people and communication skills.
Additionally, aspiring customer service operatives should also display a high level of empathy, have speaking skills centered on persuasion, be adaptable, have an extensive vocabulary, and also have a certain amount of self-control.
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Development & Research
Research and development, colloquially usually abbreviated to ‘R&D’, is one of the most future-focused business function of them all and is centered around the improvement of existing processes and products as well as the development and production of new ones.
Managing the allocated amount of funding given to the research and development department can be incredibly tricky to balance, as too much and it can financially cripple the company, and too little will result in a stagnant company that will be left behind by its competitors.
Whereas human resources concentrate on the professional life cycle of an employee, the research and development employees focus on the life cycle of a product or service.
Often, a business manager or owner makes the decision to outsource part, or indeed the entirety, of their research and development department, which showers them with a plethora of benefits. Such advantages of outsourcing R&D include a significant optimization of costs, avoidance of needing extra capital in investment, a way to develop strategic and widely beneficial alliances, and unrivaled expertise and knowledge.
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Marketing & Sales
Lastly, but certainly not least, the eighth core business function of any company is that of the sales and marketing department.
Obviously, the tasks performed by sales staff and marketing staff vary greatly on a day-to-day basis, but one cannot effectively perform without the other. Essentially, the marketing and sales department concentrates on the thorough and effective promotion of the business with an end objective of increasing the volume of sales, heightening the level of brand awareness, and boosting profits.
To work in the world of sales, it takes a specific personality type with an array of unique traits and skill sets, such as emotional intelligence, confidence, a high degree of flexibility, an optimistic outlook and attitude, and active listening skills.
If you are instead interested in working in the marketing department of a business, you should be extremely adaptable, be able to prioritize tasks effectively, be well-versed in data analysis, have strong interpersonal skills, and be creative and imaginative.
Above are the most integral core business functions of any organization. However, there are a number of other business functions, some of which have long since been a staple of any company and others which are just being considered mandatory.
Other important and necessary business functions include operations and logistics, product management, information technology, design, governance, and quality management.
