Functions of Organisation

What is the sole objective of any business?

Is it profit?

Or Customer satisfaction?

Or enhancing its reach?

Regardless of the objectives, any business requires prerequisite functions.


The main objective of any organization is to achieve the desired goals in a specific span of time. To ensure that these goals are reached, an organization performs several business functions.

The aim of any function is to take the organisation closer to the goal, to derive the expected results. 

The functions of the business have to be aligned with its objectives. A disorganized business where the functions are deviating slumps into losses. Let’s say you run a textiles business. You set a timely target to generate sales worth one lakh in six months. Planning is important to proceed with the goal. As an individual, you alone cannot reach the target without the help of employees performing several functions. 

The significant functions of an organisation are

  1. Finance
  2. Marketing
  3. Human resources. 

With the coordination and commitment in these three areas, the business prospers.

Importance of the Functions of the Organization


The employees working in different teams collaborate to work on a single motto. Though their individual tasks are different, they are constantly working to accelerate at a pace, with other functions. Collaboration creates a healthy environment for employees to work in. The distribution of the work facilitates the hustle towards the end goal. 


 A business with several functions ensures transparent communication between the different teams performing their own functions. There is a huge possibility of chaos, delaying the work. Thus, the functions enable communication and notify important updates to the teams. Keeping a track over the tasks, assists in communicating proficiently.

The functions of the organisation should be aligned. Individual functions with a unified goal undoubtedly coordinate everything on a path. The functions of the organization expose the essence of purpose, enabling the goals to be reached effectively and efficiently. 

The functions of an organisation

1. Finance 



Finance is the soul of an organisation. It is impossible to run a business without the availability of sufficient capital. The sole motive of a business is to earn excess over its investments. Finance is the funds required for a business to commence and carry on its operations. An organisation has to ensure the smooth flow of capital, to avoid delay in work.

Risks are inevitable in business, so it has to calculate the potential possibilities of the occurrence of a circumstance. A business should have sufficient finance to survive, especially during tough times. 


A finance department regulates cash flows in the organization. It consists of professionals who maintain accounts of the business. The system of bookkeeping is significant for any organization, to have access to all the transactions performed by a business. The finance gives regular updates of the profits received, income to be paid to the employees.

Most importantly it identifies the scope of providing incentives to the customers that boosts revenue. The finance department produces reports and analyses of the business operations and suggests the organization accordingly. A business takes calculated risks and invests, with the proper assistance of finance. 

2. Marketing



Marketing is an important aspect of any business, as it aids in reaching out to the right audience. After making a place in the market, a company has to ensure that its products and services are getting noticed by the potential people. It is not an easy task to identify customers who are interested in your product. 

A successful marketing campaign is one that reaches the right audience, triggers an action, converting the viewers to customers. 


The role of marketing is top-notch to any organisation building its presence. Let’s face it, there are numerous competitors that already exist. 

Why and how do you plan to get noticed?

You’re right, Marketing it is!

In fact, if assumed the wrong decision, it is a great financial loss to the company. Investing huge amounts in unnecessary marketing campaigns are vain. It will take a plethora of time to reboot again. Marketing establishes good relationships among people and organizations. You can be confident about profitability with a well-established marketing function in your business. It is impossible to gain revenue or reach people without Marketing

Execute prudent strategies as s as one man’s loss is another man’s gain in business. 

3. Human resource

Team meeting
Human Resource


Human Resource comprises people working in the organisation. Every business requires the right set of employees to carry on its operations. Human resource department is solely dedicated to hiring, recruiting, training, and firing the employees. It is the responsibility of Human Resource to hire potential candidates who align with the business requirements. 


Would you consult a doctor for event management? Certainly not! Every organisation has its requirements, an individual has their specializations. Human Resource team hires people who are in synchronization with the expectations. Human resource team keeps a track of employees, work performance, and provides rewards to encourage them. Workers being a valuable asset, an hr ensures to provide the right compensation to them. As an organisation, you cannot compromise with the quality of work. 

Be clear  about the number of employees required to get the work done, considering 

  • The working hours
  • Availability of time to reach goals
  •  Quality of work. 

Patience is of the utmost importance for any business to succeed. However, don’t get disconnected with your objectives, stalling time on things that aren’t practical to proceed with.

Irrespective of the type of organisation you have, these three functions define how productively the business objectives are accomplished.  So, before you give up look into the functions of the organisation. 


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