All businesses, no matter how small, require some sort of organization and structure in order to thrive. A company without a framework lacks a foundation and has difficulty establishing and implementing company policies. Such an organization can barely operate at efficient production levels as it lacks stability, purpose, and direction.
Much like the human body, which requires different organs and systems to work hand-in-hand, a successful business requires the combined effort of multiple departments for optimal operation. Each department is created with a specific organizational need and designated to perform a specific task. Paul Haarman strongly believes that having specialized departments overlooking specific areas of your organization is key to efficiency in basic operations.
Business Departments as Described By Paul Haarman
According to Paul Haarman, every business, big or small, needs the following departments to grow and develop with consistency:
The CEO of the organization and the managers responsible for vital decision-making fall into this category. They are the organization’s leaders, guiding their colleagues and helping them harness their potential. It is their duty to visualize the bigger picture and ensure that the company is headed down the right path. The company heads are also responsible for hiring new employees, reaching out to investors, and maintaining a respectful relationship with company stakeholders.
The maintenance team is responsible for overlooking the working conditions of an organization. Their responsibility is to ensure that all running equipment and machinery are in top-notch condition and that every employee is provided with the resources needed to perform their tasks. Every company needs this department to ensure that accountability and responsibility of all material resources are handed over to a specific authority. This team must also create a monthly maintenance budget and ensure that the costs don’t exceed the desired amount.
3. Accounting and Finance
The finance department handles the firm’s money-related matters, ensuring long-term sustenance and survival. The accounts department caters to two primary responsibilities; all incoming payments called accounts receivable and outgoing payments called account payable. They are responsible for paying all vendors on time, tracking customer payments, monitoring cash flow and managing the payroll.
Apart from managing the everyday finances, they look out and plan for the company’s future. They set aside savings, develop a budget and create a systematic plan to ensure the organization has financial backup for survival during tough times. Finance assistants also help manage and file taxes by maintaining detailed monthly profits and earnings records.
4. Human Resources
This department is the heart and soul of an organization. While they may not directly be involved in sales, their role is vital to developing a friendly and healthy work environment. These individuals are tasked with recruiting new workers, monitoring their skills and qualifications and judging their behavior to see if they’d be a good fit for the organization.
The human resource team is aware that the success of any organization depends on the well-being of its employees. They work tirelessly to build respectful relationships with colleagues, hear their complaints and demands, and make necessary changes within the company structure. Human resources act as the voice for all employees, ensuring each worker receives thorough compensation for tier labor.
The Bottom Line
Paul Haarman repeatedly emphasizes the importance of having a systematic and organized workplace. An organization with a robust framework and foundation is well equipped to deal with all ups and downs within the markets. Such a firm is capable of not only surviving but also thriving.