Basic functions of a firm

This post explains the 3 basic functions of every business. These functions are Finance, Marketing, and Operations. The 3 Basic Business Functions Finance The finance function of a business is responsible for securing and distributing funds for operations. This function also is typically in charge of purchasing goods, supplies, and services that are necessary to carry out marketing and operational activities.

Basic functions of a firm

What Are the Three Basic Function of a Firm?

Production is the creation of goods and services with the help of certain processes. The production of goods depends essentially on the organisation of men, money, materials, and facilities into a smoothly operating business.

In modern organisations, production is highly organised, mechanized, and specialised mass production, and, therefore, its overall charge is entrusted to the Production Manager.

A production manager has four basic responsibilities in this regard: In order to fulfill these responsibilities, the production manager has to perform a number of functions, such as production planning, production engineering concerned with design of tools, jigs, and installation or equipmentplant layout, plant building, materials handling, purchasing, inventory management, work improvement and work measurement, production control, and the maintenance of physical environment of production.

Marketing is the process of getting goods and services into the hands of the consumer with a view to satisfying the needs and desires of consumers and producers. In other words, the marketing function creates a process through which producers and consumers are brought together in an exchange relationship and transfer of ownership takes place.

Finance function of business is basically responsible for three decisions and their proper implementation, viz.

Purchase Solution

Business maintains relationship with financial markets including institutions and major shareholders and also takes care of other concerns such as share buybacks, capital raising sources of borrowings and risk management. Human Resource HR function: The HR function deals with the human side of business.

It is concerned with increasing the effectiveness of human performance in any organisation. Specifically stated, the HR function aims at obtaining arid maintaining a capable and effective workforce, motivating the employees individually and in groups to contribute their maximum to the fulfilment of organisational goals.

In order to accomplish the goals of dynamic HR management, the HR manager has to undertake the following functions: For the accomplishment of these functions, the personnel department renders specialised services.

Like production, marketing, finance, and human resource, the information function is equally important in a modern business. It is being increasingly recognised that the modern business cannot be managed without the assistance of efficient information function.

The information function is basically concerned with records. The net result of the preparation of records is the generation of a mass of "information", and therefore, the purpose of information function is to collect, generate, and communicate, in clearly and easily intelligible form the information to all those who need it, especially to executives for purposes of decision making and policy formulation.

Basic functions of a firm

Thus, information cell acts as a storehouse of valuable information and real brain behind every activity of a business concern. The responsibility of performing this function should be entrusted to the information manager in the organisation because information function is a specialist function requiring an expert knowledge and technical skill in this area of the operation.

The scope of information function in a modern business is very wide. The information manager is generally burdened with the following three broad functions: Here in terms of new product development we are talking about Research and Development.

In this age of increasing rivalry among competing firms, the importance of innovation is hardly exaggerating.Business Basics - The 3 Fundamental Functions of Every Business Explained No matter what type of business, or organization for that matter, you can rest assured that there are three fundamental functions that run that business and dictate how that business behaves.

What Are the Four Basic Functions That Make Up the Management Process? |

This area of a business function is the function that deals with customers on a direct or indirect basis, from the production of the production through the sale of the product to the customer.

In this function, a firm is "responsible for turning inputs into finished outputs through a series of production processes". The basic functions of the firm are _____. marketing, finance/accounting, and production/operations sales, finance/accounting, and operations%(1). What are the three basic functions of a firm?

Do all firms/organizations (Private, Government, Not-for-profit) perform these three functions?

Related BrainMass Content What are the main functions of Business? Article shared by The functions of a business may be primarily divided into two types called production and marketing.
This post explains the 3 basic functions of every business.
What are the main functions of Business? This article throws light upon the seven main types of business function of a manufacturing undertaking.
Young Finance Guy: Business Basics - The 3 Fundamental Functions of Every Business Explained Fayol originally set forth five management functions, but management book authors have condensed them to four: The fifth function was staffing.
Communication can occur in email, on the phone and in person between all members of the organization.

. Personnel function: This function is concerned with the human side of the business and concerned with procurement, development and maintenance of efficient and effective work force.

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The personnel functions include selection, training, promotion, transfer, payment . The basic functions of the firm are _____. marketing, finance/accounting, and production/operations sales, finance/accounting, and operations accounting, sales, and production/operations All of the above.

Best answer. % (1 rating %(1).

Young Finance Guy: Business Basics - The 3 Fundamental Functions of Every Business Explained