5 Departments in an Organizational Structure are listed and explained in this article. We hope you find this helpful for your research work.

5 Departments in an Organizational Structure

Read Also: Importance of Commerce

Every organization, no matter how small or big can usually not function unless it is subdivided into different sections in order to enhance its productivity and efficiency.

Without a good structure of well laid organizational structure in a company, the company may differ unnecessary losses in terms of quality goods and prompt service delivery.

It is on this note that this article is written to bring to light the various types of departments that a standard organization usually has.

It is equally worthy of note to know that depending on the scope of the organization, the departments may vary but essentially, in this article, we will look at some of the key departments.

Read Also: Aids to Trade

A department is an entitled and specialized division to which an organization is formed. It is usually the backbone of an organization aimed at strengthening the organization and helping it achieve its overall goal and objectives.

Every department in an organization is saddled with so many responsibilities, it is the merging of the output of each of the departments that ascertains whether the laid-down objectives of the organization are achieved or not.

Departments in an Organizational Structure

The various departments of an organization include the following;

1. Production Department

This is the department that is charged with the responsibility of transforming raw materials such as cotton, cocoa, cassava, etc.

Into goods that are consumable and needed in society such as beverages, textiles, garri, etc. The production department in every company plays very important roles and some of the roles include: maximizing resources such that the production cost is far lesser than the selling cost of every product produced within the company; they also ensure that the goods produced are of quality regardless of the circumstance or economic instability.

The production department is an inevitable department in every organization that will grow far and wide because of its unique functions.

Read Also: Why We Study Economics

2. Marketing and Sales Department

After the raw materials are transformed into finished goods, the company often turns its attention towards one other thing and that thing is ‘sales’.

Companies need to make huge sales in order to stay in business this is why they often create a department solely to look into sales and marketing understanding that products cannot get to the final consumer if there are no promotions and adequate marketing.

This department is usually charged with the corporate responsibility of marketing as well as making maximum sales of the company’s products and services.

Aside from selling the company’s goods, the marketing and sales department protect the interest of the company in relation to the goods and services produced by the company.

3. Purchasing Department

As long as a company lives, it usually engages in the purchase. The purchases may be large or small depending on their scale of production but in order to maintain records and other logistics, companies usually have a department called the ‘Purchase Department’.

Read Also: Features of the Factors of Production

It is the purchasing department that usually acts as an intermediary between the company and others in terms of purchases.

4. Account Department

Wherever money is being used, proper accounting is often required. Every company, no matter its area of specialization will always have a department that takes care of its books and keeps adequate records of the monies that come in and out of the company’s account. This department is usually headed by a skilled and trained accountant.

5. Transport Department

This Department is responsible for the purchase and maintenance of vehicles, especially in big organizations like banks, manufacturing companies, schools, churches, etc.

These departments have competent drivers and the head of the unit is usually called a transport manager. There are various other departments in an organization such as health, planning, strategy, engineering, etc.

Read Also: Factors that Determine the Volume of Production

The type of department in an organization is dependent on the scope of operation of such organization and these departments do not work independently of each other rather they work together to achieve the common goal of the establishment.