What are the key functional departments of a business organisation?

 The Journey of "Pure Glow" – A Handmade Soap Business

Once upon a time in a small town, a young entrepreneur named Emma decided to start her own handmade soap business called Pure Glow. She had a brilliant product idea, but she knew that building a successful business meant building a strong team. So, she set up four key departments to help her.


 What is a Business?

A business is an organization that produces, sells, or exchanges goods and services to meet the needs and wants of people, with the main goal of earning a profit. It plays a key role in the economy by creating value, providing jobs, and satisfying customer demands.

 1. Human Resources Department

Emma’s first step was to hire the right people. Her friend Daniel took charge of the Human Resources department. He interviewed new staff, managed training sessions, and ensured a positive work environment. Daniel also kept records of employee attendance and performance.

📢 “A great team is the heart of every business,” Daniel would say"

 Key functions of a  Human Resource department

·       Recruitment and staffing

·       Employee training and development

·       Performance management

·       Payroll and benefits administration

·       Ensuring workplace compliance and safety

 

2. Production/Operations Department

In the workshop next door, Emma’s cousin Olivia managed the Production department. Olivia made sure all the soaps were made using high-quality ingredients, proper tools, and hygiene standards. The team measured, mixed, and poured the soaps into moulds, then carefully wrapped and packed them.

“We turn raw materials into products people love,” Olivia proudly explained.

Key functions of a  Production/Operations department

·       Production planning and scheduling

·       Resource management

·       Quality assurance

·       Process improvement

·       Maintenance of equipment and facilities

3. Marketing Department

Meanwhile, Emma’s younger brother Josh handled the Marketing department. He designed eye-catching flyers, ran social media campaigns, and organised pop-up stalls at local events. He also gathered customer feedback and adjusted promotions to suit their needs.

“People need to know about our brand,” Josh said while planning a new ad campaign".

Key functions of a Marketing department

·       Market research

·       Advertising and promotion

·       Branding and positioning

·       Social media and digital marketing

·       Customer engagement and feedback

 

4. Finance Department

Emma’s mentor, Mr. Carter, looked after the Finance department. He tracked all income and expenses — from buying ingredients to paying salaries. He also helped Emma create monthly budgets, analyse profits, and plan for growth.



"Good products are important, but managing money smartly keeps the business running,” Mr. Carter reminded the team"

  Key functions of a  Finance department

·       Budgeting and forecasting

·       Managing income and expenses

·       Financial reporting

·       Payroll and tax management

·       Investment and growth planning

 

Together, these four departments worked like a well-coordinated team. Thanks to their combined efforts, Pure Glow grew from a small idea into a thriving local business.Emma smiled and said.

HR finds the people, Production makes the product, Marketing sells it, and Finance keeps it sustainable!”

  Lesson for Business Students:

Every successful business depends on its core departments. Understanding how Human Resources, Production, Marketing, and Finance work together helps us understand how businesses operate in the real world.

 Critical Thinking Questions

 a)     Why is it important for Emma to divide her business into four departments instead of managing everything herself? What could happen if one of the departments didn’t function properly?

b)    Each department in Pure Glow has a specific role. In your opinion, which department is most crucial to the success of the business, and why?

c)     How do you think the departments should communicate with each other to ensure that the business runs smoothly? Can you give an example of a situation where poor communication could lead to problems?

d)    If Pure Glow wanted to expand internationally, how might the roles of the four departments need to change or grow? What new challenges might arise for each department?

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Multiple Choice Questions:




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