Business Studies What are functional areas

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Ali Shah                                               Unit 1 P2                          Manchester Academy

What are functional areas

Functional areas are different parts of a business. It is where a business is separated into different departments with each department specialized in a specific task or role.

Why do businesses organise themselves into functional areas

Functional areas are beneficial in business performance because;

∙        It allows for greater speed and efficiency by having departments with staff who are specialized in their skills, who can carry out specific activities. These activities suit their qualifications and experience.

∙        It allows management and shareholders to monitor the performance of the business as a whole and by specific departments. It also allows them to see which departments are performing well and which departments are not. They will then be more easily able to pinpoint any problems and fix them much more quickly.

Human Resource Department

The Human Resource Department is responsible for;

∙        Making sure that all employees are treated equally and fairly.

∙        Ensuring that Schuh follow all employment laws, including Sex Discrimination Act of 1975, Race Relations Act of 1976, Disability Discrimination Act of 1995, and the Employment Rights Act of 1996.

∙        That all employees receive appropriate rights and entitlements.

∙        Managing the employment process from recruitment/training, to promotion and dismissal.

∙        Making sure that all employees receive Health and Safety training and that they are provided with healthy and safe working conditions.

Worker Rights

∙        The Human Resource Department at Schuh deals with the employee’s rights and entitlements such as their pay levels, hours worked a day, sick days, working environment/ conditions, maternity leave, and paternity leave.

∙        The Human Resource Department also ensures that employees are working in a safe and healthy environment/ conditions. This includes all employees, full time, part time, and casual.

∙        The Human Resource Department also has to ensure that all of the employees receive the appropriate amount of training in order to perform their jobs to the best of their ability.

Discrimination

∙        There can be many types of discrimination, e.g. Sex, Race, Disability, and the Employment Rights Act.

∙        The first example of discrimination can be Sexual Discrimination. This can be if Schuh were advertising a job and a male and female both had the same qualifications and education when applying, and Schuh were to selectively favor one gender over the other.

∙        Another example of discrimination can be Racial Discrimination, this could be the fact of someone not employing or treating someone differently because of their race or religious background.

∙        Racial Discrimination is an important factor for Schuh to consider in business these days since Britain is a very multi cultural country. Schuh have many initiatives in place so that in order to respect all employees of different races and religions. Schuh have made adjustments to their policies to allow employees to wear religious clothing such as headscarves and also provided alternative uniforms. Schuh also provide their employees with a faith room for use throughout the day.

∙        Disability discrimination is another example of discrimination. Disabled and able bodied employees should both be treated equally. Schuh have many features in their branches which can meet the needs of disabled customers, such as ramps, elevators.

Recruitment

When recruiting someone it is always important to assign the right person, this can usually be done by the Human Resource Department.

∙        The Human Resource Department at Schuh is responsible for making sure that all future employees and people who are applying for a job are treated equally.

∙        The Human Resource Department also has a responsibility to ensure that Schuh follow all employment laws including the Sex Discrimination Act of 1975, Race Relations Act of 1976, Act of  Disability Discrimination Act of 1995, and the Employment Rights Act of 1996.

∙        The Human Resource Department employ people on their education and experience, this can usually be done by a job description for the type of person they are looking for.

∙        The process that takes place when recruiting is:

-        Writing the job description and the preferred candidate specification.

-        Then selecting the candidates for interviewing from applications.

-        To then select the preferred candidate from the interviewing process.

∙        Selecting candidates for interviewing from applications.

∙        When recruiting employees, the Human Resource Department can also ensure that all employees receive appropriate training, in order for the employee to vastly improve the service that they will provide. Since it might be their first time working in a footwear store.

Dismissing

∙        The employer can only issue a dismissal if they have appropriate reasons to do so. For example in Schuh, an employee might constantly arrive late and hardly do any work. But the employer can not dismiss the employee if it is outside the working environment, e.g. personal incidents.

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∙        Though someone in Schuh can be dismissed due to misconduct, or a breach of the terms and conditions of their contract. Likewise they can be dismissed for failing Schuh’s internal disciplinary code, and after receiving 3 or more formal warnings.

Production Department

The Production Department is another one of the functional areas of a key business, the Production Department is needed to produce the final product. In this case we will look at Schuh’s Production Department.

Premises

∙        The Production Department is another ...

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