Small companies perform most tasks with a small team. However, companies need a specialized task force to perform their functions as they grow. If you do not have a set organizational structure, it might not be easy to handle all the operations efficiently.
It does not matter what kind of business you are in; you need dedicated teams to handle accounts, finance, legal, HR, and sales tasks, to name a few. You can decide on setting up more departments as you grow, depending on the operational budget and strength of the finance capital.
Read about the most important departments that a business should have.
Accounts and Finance
Most people call it the backbone of the company. This department is responsible for handling the expenses books for each fiscal year. The accounts and finance department tracks the company’s turnover, revenue, and expenses.
The accounts and finance department are often responsible for audits as well. Whether a start-up or a multi-national company, this department is responsible for taking its growth forward. This team is accountable for keeping the taxation and compliance accurate in most medium-sized businesses. The finance team is also in a position to scrutinize the expenses of the management.
It is also the task of this all-important department to raise funds through various sources. Most investors ask for the financial records of the company. The accounts and finance team can handle the same straightforwardly and efficiently.
Most companies have a legal expert on call. Often, you can delegate some tasks to your finance department as they have some knowledge of the law. However, in medium to large companies, the task has to be entrusted to experts, who can handle all the facets alone. A robust legal team often takes the company’s shareholder value to another level. It can be complex. The functions of the accounts, compliance, and HR team often overlap in the tasks of this department.
You will find the experts handling all kinds of litigation tasks, investigations, compliances, and mergers. The tasks are diverse and come with their challenges. It is often the legal experts entrusted with the responsibility to handle government and regulatory bodies.
Suppose you own a fleet of trucks for your services. If your drivers get into a bind and are caught driving under the influence, you might need to appoint a DUI attorney for your company. You need someone to represent your driver in a court of law. Most people are not aware of the legal terminologies and jargon. Additionally, if insurance is involved, you’ll need a legal department.
Without legal involvement, you can lose the case in court. Moreover, if the company’s vehicle is involved, the company might face a stringent lawsuit. If you want to sustain the company in the long run, a legal team is inevitable.
These are the revenue generators for the company. So, you will often find them, getting all the rewards and recognition. They are the people who convert your prospects into buyers. Without revenue, no company can move ahead. If you are dealing with a product or service, you need a sales department. You need to keep this team motivated. If they stagnate, the whole company stagnates. They also often draw the highest salaries.
Additionally, their incompetence can lead to a ripple effect. No sale will translate into low performance on behalf of the other teams. And they will not have much to do. Take the example of administration and back office. There will be no paperwork without sales, and the staff is ideal. The customer service team will have no calls to attend to without any sales. Hence, redundancy will be set in various phases.
Human resources are the most unpredictable of the lot. That is the reason why you need a dedicated team to handle them. The HR team is responsible for recruitment, compensation, and managing employee performance. You can train salespeople to perform and deliver results. They get adequate compensation for that too. However, the human mind does not exist in isolation. You will often see that they might develop a longing for more compensation benefits in the middle of the fiscal year. And poaching occurs. You cannot control human minds as you do with finance and computers.
That is why most HR teams today concentrate on training and engagement. It helps to uplift the spirit of the workers. They feel needed. If you can make them realize this, you can have them for life.
These are a few of the crucial departments in any organization. If you want to take your company to the zenith of success, you have to establish proper teams.