The functions of a business may be primarily divided into two types called production and marketing. These two functions are mutually dependent.
Besides the two primary functions, there are a number of assisting functions like accounting, advertisement, financing, staffing, directing and research and development. All these functions of the business can be broadly classified under the following main headings:
production Function: Production function involves creation of goods and services with the help of money, men and materials. For the purpose of production several processes and techniques are employed. Production functions involve plant location and layout, plant building, production planning, repair and maintenance and quality control. Since production helps in the creation of utilities, this has been considered as the most significant function of the business.
Marketing function: Marketing function is primarily concerned with the distribution of goods and services among the people. For smooth marketing of the product, the marketing manager decides on the product, its packing and branding, deciding the distribution channel and promoting the future sales. Marketing functions involve four ‘P’ like product, price, promotion and physical distribution.
Finance function: Finance is regarded as the life-blood of the business unit. This function involves planning, procurement and effective utilisation of the funds of the business. The chief of finance department estimates the financial requirements, investment of funds in the short-term or long-term, determining the capital structure and determination of the sources of raising capital.
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. The personnel functions include selection, training, promotion, transfer, payment of wages, welfare activities and industrial relation.
Office function: Modern business cannot run without an office. The various office functions which the business ha to perform the information and records, efficient generation and collection of records, preservation of records and effective communication. These functions are sometimes called as secretarial functions or public relation functions.