All businesses need to be well organised to achieve their aims and objectives. Certain tasks, or functions, must be done regularly and these are usually grouped into specific types of activities. In a large organisation like Tesco PLC, people work together in functional areas. Each functional area has a specific purpose. Below are the main functional areas:
The main activities of the finance department are:
* To record all the business transactions
This means that they record in their schedule all the expenses that have been paid and all incomings. They also make sure that each department does not spend more than it has been allocated.
* Measure the financial performance of Tesco
This means the finance department look at how well or badly Tesco is doing financially.
* To control the finances and cash flow so Tesco stays reliable.
This means that they make sure that there is enough money in the business to pay off debts, bills and the employees. They also make sure that there is enough money to survive for the company.
* To take timely financial decisions by comparing the predicted performance with actual performance.
This means that if the company wants to invest more in Tesco, then it would be up to the finance department to make the decision on whether there are enough funds to do. They would do this by looking and comparing the financial situation in previous years with the financial situation of the present year. By this they can see the expense will leave them with enough money at the end. They also prepare all the accounts each year so that the company comply with their legal responsibilities to the Inland Revenue and complete VAT returns which they send to HM Customs and Excise.
The finance department in Tesco is there to make sure that the company stay's afloat. They do this by checking the financial status of the company; when I say checking the financial status I mean that they record all the money coming into the business and all the money that is going out. Upon looking at this information they are able to monitor and act accordingly. The finance department is probably the most important department in the Tesco, simply because everything costs money and it is the job of the finance department to ensure that the necessary funds are available when they are needed. This is really important when the organisation has to pay their running costs such as loans. This is because if they don't pay their debts then they risk losing their investment. The finance department also has a system, which is called the Management Accounting Information system. This system is used for planning, decision-making and control. This system involves looking at the future financial events, and with this system they will be able to answer future question such as when will the money be available to renew the roof at the Surrey Quays site? The Management Accounting function also prepares budgets and monitors financial progress. If we look at the information above and then look at Tesco I can say that Tesco's finance department have a similar sort of system, which looks at the future financial events. They way in which the finance department look at the future is to look at the financial status in past years, and by that they are able to see how much they will have in the future and they are able to look a ways in which to improve the amount of money they will have in the future.
Human resources function
The human resource in an organisation is the second most important department, simply because this is where all the new employees are chosen from. The main purpose of the Human Resource department is to recruit, select, train and develop staff. This means that they have to find the right people at the right place at the right time. Once the new employees have been found it is the Human Resources responsibility ...