Running a business requires a lot of considerations than just operations. Both small and large business needs an organizational structure to reach a successful level. Not just that, but business owners also have to consider a chain of command over each department to track the progress. This chain of command is the hierarchy of the team that implements the tasks and reports to the higher levels. Businesses without these essential structures can not operate for the long term. However, implementing the business structure by dividing it into different departments is not a difficult task. No matter what are the products or services of your company, departmentalization is always a wise step towards achieving business goals.

It is no doubt that all the business processes are carried out inside the organization. In fact, these processes are required to be implemented in the functional areas to avoid any mismanagement. These functional areas are represented by each team leader to increase the efficiency of the production. If you own a small business, then you will be required to structure your business to different departments. Once this business expands, there will be more activities to take care of, and you will need more employees. With that said, let’s discuss the roles of different departments of a company.


The accounting and finance department covers the areas of bookkeeping in the business. The department monitors and tracks the financial needs of the businesses. Moreover, the department is also responsible for reporting the bookkeeping details at the end of the fiscal year.

The accounting and finance department is considered as the primary department for the company. Since the department monitors the requirements of the funds, the companies can never operate without it. The departments also suggest the services of loans and lenders like Separate management of the account receivable and payables give business owners a clear idea of the productivity of the company.


Human resources are one of the most important departments in any company. The department is well known for the process of hiring employees for positions in the company. But still, there is a lot more than just hiring people. The human resource also has to deal with the training and skill advancement for the hired people. They have to make sure that they have hired the right people for job positions in the company. Moreover, the human resource department also focuses on compensation and employee relations with the higher authorities. They generate plans for the employee’s retention and target the market to fill the job positions.


Marketing and advertisement departments also play a great role in making the business successful. This department focuses on designing practices for customer awareness, product advertisement, and business promotion. No businesses can maximize the sale of products if they are not targeting the right demographic of customers. In this case, the marketing and advertisement department designs creative strategies to reach maximum customers and identify their requirements.



The production department is the area where all the goods and services are developed to sell out to the customers. This department is operated by the production manager, who monitors the workflow for production inside the company. Moreover, he also controls the scheduling and manpower to fulfill the orders of the customers.


No matter what is the size of your business, it is worthwhile to consider all the essential departments to increase efficiency. Each department has its own roles and functional areas inside the company. All departments work together to meet the customer’s needs for quality and quantity of the products and services.