office skills by thelma j foster - alness academy business ...… · web...

Standard Grade

Administration

Area of Study 1: Administrative Support

Unit 1 – Introduction to Business Organisations

Unit 1b – Functions of Departments

SG Administration Unit 1 – Introduction to Business Organisations

Theory Notes



Contents page

HOW BUSINESSES ARE ORGANISED....................................................................3

HUMAN RESOURCES/PERSONNEL DEPARTMENT..............................................4Activities of Human Resources Department.......................................................................................................4

Key personnel and main tasks/activities..............................................................................................................5

DOCUMENTS USED WHEN BUYING AND SELLING GOODS................................8

FINANCE DEPARTMENT........................................................................................10

Key personnel and main tasks/activities............................................................................................................10

PURCHASES DEPARTMENT..................................................................................11


SALES & MARKETING DEPARTMENT..................................................................13


ADMINISTRATION SERVICES DEPARTMENT......................................................15

Key personnel and main tasks/activities............................................................................................................15Effective Administrative Services.....................................................................................................................16

COMPUTING SERVICES DEPARTMENT...............................................................17


CENTRALISATION..................................................................................................18

Advantages of centralisation...............................................................................................................................18

Disadvantages of centralisation..............................................................................................................................18


How businesses are organised

ShareholdersA shareholder is an individual or company that legally owns one or more shares of stock in a company. A company's shareholders collectively own that company.

Board of DirectorsA Board of Directors are a group of people whose main responsibility is to ensure that the company achieves its aims. They ensure that the company operates within the law. The Managing Director and the General Manager may be on the Board of Directors.

Managing DirectorThe Managing Director will be responsible for the overall running of the organisation. He/she is involved in the long term planning and decision making for the organisation.

General ManagerThe General Manager will report to the Managing Director. He/she is responsible for the day to day running of the organisation. For example, they will delegate tasks to departmental managers and ensure that everyone below them carries out their duties.

Departmental ManagerA Departmental Manager will report directly to the General Manager. He/she will be responsible for the running of their own department and the staff within it. Their duties will include holiday rotas, target setting, team building.

SupervisorsSupervisors will report to Department Managers. They will supervise staff and carry out duties within the department. For example, check staff timekeeping, on-the-job training, completing duty rotas.

Administrative/Clerical AssistantAdministrative/Clerical Assistants will report directly to the Supervisor and will carry out any duties given to them eg word processing, answering the telephone, filing, photocopying, preparing order forms.


Human Resources/Personnel Department

The Personnel Department deals with the employees in the organisation. For example:

Staff Recruitment, Training and Development, Staff Welfare and Health and Safety.

Activities of Human Resources Department

Recruitment and Selection

Prepare job descriptions/job (person) specifications.o The Job Description contains basic information about the job,

eg the job title, duties, responsibilities, location, salary, hours of work, holiday entitlement, etc.

o The Person Specification contains information on the type of person required for the job, eg the qualifications and skills required, qualities, experience, etc.

o Both of these documents help the HR Department to prepare a suitable advertisement

for the job the interviewer to prepare questions which are relevant

to the job, before the interview takes place the personnel in the HR Department check that the

applicants for the job fulfil the required criteria allows people to see whether they would want to do the

job allows people to check their suitability for the post.

Advertise jobs as they become available. Prepare and send out job application forms. Collect application forms, CVs, references from people applying for

jobs. Prepare a short list of applicants to interview. Interview applicants for jobs. Give feedback to candidates on their interviews.

Staff Training and Development

Carry out induction training - training organised for new employees to introduce them to the organisation, health and safety rules.

Arrange training courses for departments/organisations.

Health and Safety


Makes sure the organisation looks after the health and safety of its staff.Keep records of any accidents.

Staff Welfare and Legislation

Prepare contracts of employment for new employees.Keep records of employee details (staff record cards).Keep records of staff holidays/absences.Deal with disciplinary procedures.Makes sure the organisation works within government guidelines.

Key personnel and main tasks/activities

Job Title TasksHuman Resources Manager

In charge of the human resources department. Designing job descriptions/job specifications. Carry out staff appraisal. Issue warnings to staff. Dealing with resignations, redundancies and

dismissals. Promoting staff Preparing Contracts of Employment Reading application forms/selecting (long/short)

leets Advising on grievance and disciplinary procedures Reports to Board of Directors on issues relating to

the HR/Personnel department Oversees/monitors/motivates staff within the HR

department Interviews applicants/hires/appoints new

employees Assists with staff appraisal

Recruitment Manager

Interviewing (applicants)/hiring/appointing new employees

Assisting with staff appraisal Promoting staff Preparing Job Descriptions and/or Person

Specifications Preparing Contracts of Employment Reading application forms/selecting (long/short)

leets Issuing warnings to staff Advising on grievance and disciplinary procedures Dismissing staff Attending meetings with the Director, Human

Resources and/or he Director, Health and Safety and the Director, Training and Development



Overseeing/monitoring/motivating staff within the Recruitment Section

Prepare a short list of applicants to interview Give feedback to candidates on their interviews.

Recruitment Assistant

Advertising job vacancies Prepare and send out job application forms Collect application forms, CVs, references from

people applying for jobsTraining Manager/Training Officer

Organise induction training for new staff - induction training is organised for new employees − to introduce them to an organisation, health and safety rules, etc.

Arranging training courses for staffHealth & Safety Manager/Officer

Carrying out regular fire evacuation procedures. Make sure the organisation looks after the health

and safety of its staff Make sure that staff are aware of the health and

safety procedures Make sure that a record is kept of all accidents Ensure that fire evacuation procedures are clearly

displayed Ensure safe working conditions Make sure that equipment is safe and properly

maintained Provide information and training on health and safety

Careers Officer Arranging for regular meetings with staff to discuss their future work plans.

Welfare Assistant Recording staff absencesEmployee Relations Manager

Industrial relations – trade union negotiations Making sure the organisation works within

government guidelines – eg employment lawAdministration Assistant

Preparing interview letters. Word processing contracts of employment. Updating employee record cards/staff database. Dealing with enquiries regarding vacancies. Prepare job descriptions/person specifications, etc Collecting references for people applying for jobs Keeping records of staff holidays/sickness Word processes letters to successful/unsuccessful

applicants. Files application forms. Keeping records of any accidents Administrative services support Personnel

Department. Word process letters to applicants re job interview,

etc Photocopy application forms, interview questions,

training information, etc. Deliver and collect personnel department’s mail.


Documents Used When Buying and Selling GoodsLetter of Enquiry

The buyer of goods sends a letter of enquiry to a number of possible suppliers. The letter of enquiry asks about prices, availability of goods,

delivery dates, discounts, etc.

Buyer (Purchasing Dept)SENDS

to Supplier (Sales Dept)

Supplier (Sales Dept)SENDS

to Buyer (Purchasing Dept)

QuotationThe supplier of goods sends a quotation in reply

to a letter of enquiry. It gives information on prices, availability of goods, etc. A catalogue or

price list may be included with the quotation. Order Form

The buyer of goods sends an order form to a supplier. It states quantity, type of goods ordered, catalogue number, price, etc. The buyer passes a copy of the order form to the Finance Department.

Buyer (Purchasing Dept)SENDS

to Supplier (Sales Dept)

Supplier (Sales Dept)SENDS


Advice NoteThe supplier of goods sends an advice note to

the buyer at the time the goods are sent. It gives the buyer information on the quantity and type of goods which have been sent or about to be sent

(it does not give prices).

Supplier SENDSto Buyer

Delivery NoteThe supplier of goods sends a delivery note along with the goods. It is used for checking

receipt of the goods (it does not give prices) – the delivery person may require the top copy of the delivery note to be signed on delivery (bottom

copy left with buyer).

Supplier (Finance Dept)SENDS

to Buyer (Purchasing Dept then Finance Dept)

InvoiceThe supplier sends an invoice to the buyer after

the goods have been sent. The invoice is the bill for goods bought on credit. Informs the buyer of the amount to be paid, trade discount, VAT and cash discount for prompt payment. When an

invoice is received from a supplier, the buyer of goods should:

check the goods have been delivered check the prices and other details from

copy of the order check calculations

if all correct, pass invoice for payment to Finance Department.

SupplierSENDS


Credit NoteThe supplier of goods sends a credit note when goods have been returned by the buyer because

they were not as ordered, faulty or have been lost/damaged in transit.

Supplier (Finance Dept)SENDS

to Buyer (Finance Dept)

StatementThe supplier of goods sends a statement to

inform the buyer of the total amount owing. It is usually sent at the end of the month and states:

amount owing at the beginning of the month

plus invoices for goods sent during month

less any credit notes for returns less any payments received during

month final balance (net amount owing at end of

the month).Cheque

The buyer of goods sends a cheque for part payment or full payment Buyer (Finance Dept)

SENDS


of the closing balance on the statement. to Supplier (Finance Dept)



Finance DepartmentThe Finance Department is responsible for all the money in the company. This will involve calculating and paying wages, paying invoices to suppliers and receiving payments from customers.


Job Title TasksFinance Manager In charge of the finance department

Analyses income and expenditure of the organisation

Discusses/checks budgets, costs, etc with other department heads

Prepares financial information/accounts (for senior management)

Financial Accountant Preparing final accounts Preparing budgets and forecasts

Management/Cost Accountant

Ratio analysis Calculation and payment of tax

Invoice Supervisor Sending invoices to customers Processing invoices for payment Checking the balance on customer accounts

Wages Assistant Calculation and payment of wages and salaries

Accounts Clerk/ Administration Assistant

Checks invoices/files invoices Prepare cheques to suppliers Sends receipts to customers Take cheques/cash to the bank Calculate staff wages Counting money/cheques received Preparing letters to customers for non-

payment Updating spreadsheets – keying in payments

received, hours worked by employees, etc Processing cheques from customers• Word process letters to customers for non-payment of invoices• Prepares cheques to be sent to suppliers• Takes cash/cheques to the bank• Checks/files invoices • Updates financial information on spreadsheet


Purchases DepartmentThe Purchasing Department buys goods or services required by the organisation. They will collect information from suppliers, place orders, check invoices and goods received.


Job Title TasksPurchasing Manager

In charge of the purchasing department.Responsible for the main purchasing decisions.Sets targets/motivates staff within department.Attends interviews with potential employees of the purchasing department.Analyses purchasing figures to ensure that the department does not overspend.Deals with staff complaints about the purchasing department.Negotiates the terms of purchases/contracts.Monitors staff performance.

Stock Controller Amending stock records databaseQuality ControllerBuyer Collates product information from various

departments Obtains quotations, price lists, etc from suppliers Visits suppliers Negotiates prices, delivery details, credit terms, etc

with suppliers. Place orders with suppliers. Attend launches of new products and trade

exhibitions organised by suppliers etcPurchasing Administration Assistant

Obtain catalogues and price lists from suppliers Word process letters of enquiry Complete and send order forms File information from suppliers Update Supplier database Update spreadsheet on departmental spending Deal with purchase requests from other

departments Keep records of purchases and deliveries Receive and check deliveries of products against

delivery notes Check invoices received with deliveries Keep accurate stock records including re-ordering of

stock Dealing with credit notes from suppliers


Sales & Marketing DepartmentThe Sales Department is responsible for selling the product or service of the organisation. They will send out catalogues, receive and process orders, deal with after sales service eg customer complaints.

The Marketing Department makes customers aware of the product or service the organisation offers. They will carry out many tasks such as, market research, advertise products/services, attend exhibitions and decided on product packaging.


Job Title TasksSales Director Reports to the Managing Director/Board of

Directors on issues relating to the Sales (and Marketing) Department

Responsible for overseeing/monitoring/motivating the employees within the Sales (and Marketing) Department

Sets sales targets (for organisation) Analyses sales figures Visits important customers Deals with serious customer complaints Manages budget for marketing campaigns Holds regular (progress) meetings with Sales and

Marketing ManagersSales Manager Responsible for all staff and activities within the

Sales Department. Encourage and motivate staff within the

department. Assist in the recruitment process for sales staff. Check that department staff complete tasks

effectively. Allocate tasks to sales staff. Appraise sales staff. Discipline sales staff. Deal with serious customer complaints. Monitor, oversee, assess, supervise the work of

the sales staff. Identify potential customers and products Chair departmental meetings. Reports to the Board of Directors on issues

relating to the Sales Department. Responsible for overseeing/monitoring/

motivating the employees within the Sales Department.

Sets sales targets/analyses sales figures.



Visits important customers.Sales Representative

Visit customers to try to obtain orders for products.

Attends trade exhibitions.Customer Services Assistant

Deal with customer complaints.Respond to customer enquiries.

Sales Clerk/Administration Assistant

Send out information to customers – eg price lists, product catalogues, quotations, order forms, etc

Process customer orders Compiling sales charts and graphs

Marketing Manager Organise advertising campaigns for the firmMarket Research Assistant

Carry out market research – eg questionnaires, surveys, etc

Advertising Assistant

Arrange publicity – eg newspaper adverts, fliers, etc

Sales & Marketing Assistant

Word processes quotations/price lists Files order forms Updates customer records/database Deals with customer telephone enquiries



Administration Services DepartmentThis department supports/assists departments within the whole organisation.


ReceptionThe Reception is found at the front of the organisation. Its main function is to welcome and direct visitors to other departments within the organisation.

Mail Dealing with incoming and outgoing mail in the organisation.

FilingStoring and retrieving information for the organisation. The filing system may be manual or computerised.

ReprographicsReprographics copies documents for the organisation as required.

Word ProcessingThe word processing service creates, edits and saves documents for the organisation eg letters, reports, memos.

Stationery/StockStationery is held in the organisation’s stock room. Stock will be issued to departments as they require it and records will be kept.

Job Title TasksAdministration Manager

Supervising the running of the Admin Dept.

Receptionist Dealing with visitors to the organisation.Switchboard Operator Operating the phone lines internally and externally.Reprographics Staff Photocopying/reproducing copies of documentsMail Room Staff Dealing with routine incoming/outgoing mail.

Weighing outgoing mail.Computer Operator Word processing letters, memos, notices, etcFiling Clerk Filing documents, retrieving files, preparing cross-

reference cards, out cards, transferring out-of-date documents to dead files.

Office Junior/ Administration Assistant

Keying in routine documents, proofreading documents, photocopying documents, answering phone, filing documents, opening mail, distributing documents, transmitting emails/faxes, dealing with petty cash.



Effective Administrative Services

You could identify effective administration services by:

1 The use of standardised forms. A standardised form is used by the whole organisation for a specific purpose eg telephone message sheets, stock record cards, internal memos, order forms etc.

2 Appropriate use of Information Technology eg storing customer records on a computer database rather than on paper.

3 Using the most suitable channels of communication eg fax where appropriate instead of posting as this is cheaper and quicker.

4 Clearly stated procedures on how the organisation should be run eg a procedures manual on health and safety which the whole organisation will use.

5 Centralisation of services eg reprographics.

All of the above lead to accuracy, quality, uniformity and speed within the organisation.

Such a system will also allow staff to be moved from one department to another easily, as they will be familiar with the documents and procedures used throughout the whole organisation.



Computing Services DepartmentThis department manages all information technology (ICT) within the organisation.


Job Titles TasksComputing Services DirectorComputing Services ManagerData Processing ManagerData AnalystProgrammerIT Support Technician Responsible for setting up computers

Installs/upgrades computer hardware, software and networks

Deals with hardware/software/network problems

Maintains computer equipmentComputer TechnicianHelp Desk Operators

Tasks Solving any problems with running software packages. Responsible for setting up computers. Maintains computer equipment. Make sure that licences are stored safely and are up-to date Respond to problems/queries Deal with ICT staff training Create and issue user IDs and passwords Create and set up network space for staff/users Advises on the purchase of ICT hardware (computers, scanners,

printers, etc) Advises on the purchase of software (word processing, spreadsheet,

database, desktop publishing, etc) Advise on the installation of networks (LANs, WANs, intranet & Internet) Advises on ICT health and safety and security issues Maintains inventories of hardware/software Puts security marks on hardware


CentralisationCentralisation is when a service is carried out in one central place instead of within each department. For example, administrative services may be centralised within an organisation.

Advantages of centralisation Better equipment can produce higher quality work. Staff will be trained in the department function and the work they

produce will be of high quality (which may enhance the reputation of the organisation).

Specialist staff can lead to work being done more quickly (leading to a saving in both time and money).

A more efficient service can be provided by specialist staff. Employees in the other functional departments will have more time to

do their own work by delegating the work to the centralised department.

Less equipment is required (leading to a saving in cost for the employer).

Employees may become more productive as noisy equipment is kept in one place (which minimises disruption/interruption in other departments).

Employees may have more comfortable surroundings for working as they will have more space following the removal of equipment/machinery (which may lead to a happier and more motivated workforce) - can create more space in other departments.

Better equipment can be purchased as fewer machines are required eg one or 2 large photocopiers will carry out copying faster and more efficiently than 10 smaller copiers used within each department.

Equipment would only be used by a small group of highly trained staff. Organisation may be able to reduce the number of admin assistants

(leading to a saving in cost).

Disadvantages of centralisation May be inconvenient/time consuming if centralised service is some

distance away from the department. Personal contact may be lost with original admin assistants. Urgent/unplanned department work may not take priority in the

centralised service. One system may not suit all departments eg if the Sales Department

has a large number of foreign clients it may prefer to use a geographical filing system rather than an alphabetical one.

There may actually be an increase in paperwork and records. It is difficult to keep records confidential. Work may become boring as there is little variety.
