Description of the purpose and activities of 2 functional areas.

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Human Resources

This department makes sure employees of the business work efficiently and safely at all times.  Their contribution to the business activity is very important as they keep close contact with all department mainly because of recruitment purposes.  They make sure all legal restrictions are abided whether that being for health and safety, government Acts or training manuals.  Human resources staff are involved with and contribute with the business activity by:

  • Recruitment and selection of the right kind of staff
  • Development and training of staff
  • Motivating staff to perform as well as they can
  • Ensuring that Sainsburys makes best use of everyone and trade unions representing its employees are effective for all concerned
  • Ensuring that the organisation meets its social and legal duties to its employees- eg making sure that it fulfils its duties under the health and safety act where the government have placed strict rules to abide by

Within this functional area there are different section leaders to cover each role for the department.  These job roles include:

  • Recruitment and selection specialist
  • Training and development officer
  • Safety and welfare officer
  • Manpower planner
  • Employment relations officer
  • Compensation manager in more modern terms the salary and wages management

Finance

Every business needs to look after their finances and have a department to deal with all financial duties including salaries for employees, paying bills, paying suppliers and keeping information of accounts for all departments.  That’s why it is vital to understand the information in order to plan on what to do next whether that being for the whole outlet or a certain department. This is very vital for any business, as you would need someone to go over and finalise how well the business is doing financially. The finance division deal with and help the business activity by:

Financial accounting

This section of the finance department looks after the financial records of the organisation, more commonly known ‘looking after the books’.  This will be head to the chartered accountant and because of the size of Sainsburys they would employ someone to deal with this.  The accountant will be responsible for all the financial information and presenting the findings in balance sheets, profit/loss statements.  The work of this section will show the organisation just how well they have performed and performing.  Another key part of this section is to advise where and how to raise finance for the operation or expansion of the organisation. This implements that the head of this section will deal closely with banks and investors.  Money is one of the most common reason for people opening up a business so finance is very vital and it could lead to the demise of the company if statistics are not inspected closely.  

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Management accounting

This part of the finance department headed by a chartered management accountant is responsible for measuring and analysing the day-to-day performance of the organisation.  Staff in this section will calculate how much each component of a product costs.  Equally important is working out how to reduce these costs so the profit figures are higher.  Another substantial part of their work is to calculate how much of the organisation’s ‘overheads’ (its rates, power bills, research costs, transport etc) should be allocated to each product they make in store, which includes fresh bread and cobs.  

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