SUBMITTED TO:

PROF’-ASHOK D

DIFFERENT FUNCTIONS OF THE

ORGANIZATION AND ITS RELATIONSHIP
TO MARKETING

SUBMITTED BY-

AMRITA PADMAKUMAR

20BBA0039
What is an Organization?

Organization is “the process of identifying and grouping the work

to be performed, defining and delegating responsibility and authority, and
establishing relationships for the purpose of enabling people to work most
effectively together in accomplishing objectives.” — Louis A. Allen.
The word Organization is derived from the Greek word organon,
which means tool or instrument, musical instrument. Thus simply it is a
group of people who work together for a common purpose. It can be as small
as a group of 3 or multinational corporations employing thousands.
A business organization is an entity aimed at carrying on
commercial enterprise by providing goods or services, to meet the needs of
the customers. All business organizations have common features such as
formal structure; aim to achieve objectives, use of resources, the requirement
of direction, and legal regulations controlling them.
The different forms of business organizations are Sole
Proprietorship, General Partnership, Limited Partnership, Corporation, "S"
Corporation, and Limited Liability Company.

Characteristics of an Organization
(1) Division of Work: Division of work is the basis of an
organization. Under the division of work, the entire work of the business is
divided into many departments. The work of every department is further
subdivided into sub works.

(2) Coordination: Under organization, different persons are

assigned different works but the aim of all these persons happens to be the
same the attainment of the objectives of the enterprise. The organization
ensures that the work of all the persons depends on each other’s work even
though it happens to be different. Hence, it helps in establishing coordination.

(3) Well-Defined Authority-Responsibility Relationships: An

organization consists of various positions arranged in a hierarchy with well-
defined authority and responsibility. There is always a central authority from
which a chain of authority relationship stretches throughout the organization.
The hierarchy of positions defines the lines of communication and pattern of
relationships.

(4)Common Objectives: All organizational structure is a means

towards the achievement of enterprise goals. The goals of various segments
lead to the achievement of major business goals. The organizational structure
should build around common and clear cut objectives. This will help in their
proper accomplishment.

Functions of an Organization
A business organization has to perform a number of functions in
order to achieve its objectives. The various functions of a business
organization can be grouped into the following broad categories:

PURCHASE FUNCTION
The Purchasing function is concerned with acquiring goods and
services for use by the organization. Man, machine, materials, and money are
essential factors for any business. The purchasing function collects and
coordinates all the necessary factors of the business. Proper organizing is
helpful in the smooth running of the business and helps to achieve its
objectives.
The responsibilities of this function usually extend to buying goods
and services for the entire organization (not just the Production function),
including, for example, office equipment, furniture, computer equipment, and
stationery. Production is the functional area responsible for turning inputs
into finished outputs through a series of production processes.
In buying goods and services, purchasing managers must take into
account a number of factors – collectively referred to as ‘the Purchasing
Mix’:

 Quantity. Buying in large quantities can attract price discounts and

prevent inventory from running out. On the other hand, there are
substantial costs involved in carrying a high level of inventory.
 Quality. There will usually be a trade-off between price and quality in
acquiring goods and services. Consequently, Production, R&D, and
Marketing Functions will need to be consulted to determine an
acceptable level of quality which will depend on how important quality
is as an attribute of the final product or service of the organization.
 Price. Other things being equal, the purchasing manager will look for
the best price deal when procuring goods and services, although price
must be considered in conjunction with quality and supplier reliability,
in order to achieve the best value, rather than lowest price only.
 Delivery. The time between placing an order and receiving the goods or
services, the lead time, can be critical for production planning and
scheduling and also has implications for inventory control. Suppliers
must therefore be evaluated in terms of their reliability and capability
for on-time delivery.
In short, the ‘purchasing mix’ can be considered as making sure that the
organization has the right amount, of the right quality, at the right price, in
the right place at the right time.
How does Purchase function relate with marketing function
The relationship between marketing and purchasing is very
important in terms of communication processes, information exchanges,
interaction, is more and more significant also in relation to the improvement
of the company’s problem-solving ability, the capacity to fully satisfy
customer’s needs, to solve users’ problems, to improve their performances. It
even supports the company’s strategic positioning. This relationship
alignment is considered necessary to connect customer needs to complex
technical solutions, often involving customized products.

PRODUCTION FUNCTION
The production function is another important function of the
business. Converting raw materials into finished products to satisfy human
wants by creating utility is known as production. Under this function, raw
materials and semi-finished products are processed and assembled to create
utility. Hence it is an important function of the business to create utility for
the satisfaction of the consumers by the production of goods.

Production is the functional area accountable for turning inputs into

finished outputs through a series of production processes. The Production
Manager is responsible for making sure that raw materials are provided and
made into finished goods effectively. He or she must make sure that work is
carried out smoothly, and must supervise procedures for making work more
efficient and more enjoyable.

In order to fulfill these responsibilities, the production manager has

to perform a number of functions, such as production planning, production
engineering (concerned with the design of tools, jigs, and installation or
equipment), plant layout, plant building, materials handling, purchasing,
inventory management, work improvement and work measurement,
production control, and the maintenance of a physical environment of
production.

How does Production function relate with marketing

function
The link between marketing and production is a dual one. On one
hand, production capabilities determine the number and type of products
which can be marketed, and, on the other hand, a more accurate prediction of
sales forecast for each product and product line is essential for efficient
production operations 

The interdependency between marketing and production is most

evident in the development of new products. The relationship between the
design of new products and production facilities is based on extensive market
research-based estimates of the demand for the new products, time, and space
distribution. 

The simple answer: Marketing can’t sell more than what production
can produce. Production can’t create items that marketing can’t sell (because
it has the wrong features or price point)

FINANCE FUNCTION

     The Finance function involves the acquiring and utilization of

funds necessary for efficient operations. It is the source to run any
organization, it provides the money, and it acquires the money. Finance is the
life-blood and backbone of any business without it things wouldn’t run
smoothly. The Finance Function is largely concerned with the control and
planning of financial resources.
  The availability of factors of production depends upon the
availability of finance. So every business needs finance for its success.
Therefore, under this function of business, required capital is estimated,
accumulated, and properly utilized. A proper capital structure according to
the size and nature of the business is essential for the success of the business.
The finance function of business is chiefly responsible for three
decisions and their proper implementation, they are:
(i) Investment decisions (financial planning, capital budgeting,
etc.)
(ii) Financial decisions (capital structure—fixed and working;
short and long-term and
(iii) Dividend decisions.

How does Finance function relate with marketing function

Finance is focused on revenue, expenses, profit, and shareholder
value. Marketing is responsible for helping the organization acquire and keep
profitable customers and therefore relate its functions directly to cash flow.
The more marketing’s initiatives address customer lifetime value, improve
the rate of product adoption, and reduce customer churn, and, lower
acquisition costs, the better the company’s cash flow. 

It isn’t a coincidence that there is a strong correlation between cash

flow and marketing’s responsibilities. The finance executives expect
marketers to manage risk, improve efficiencies and be financially
accountable thus making the organization prosperous.

HUMAN RESOURCE FUNCTION

The HR function deals with the humanistic side of the business. It is

concerned with increasing the effectiveness of labor performance in any
organization. Precisely the HR function aims at maintaining a capable and
effective workforce, motivating the employees individually and in groups to
contribute their maximum to the fulfillment of organizational goals.

The HR manager has to undertake the following functions : 

 Recruitment and selection: Ensuring that the right people are
hired for the right jobs.
 Training and development. Facilitating employees to carry out
their responsibilities efficiently and make use of their potential.
 It is in their concern that they make sure employees work in a
healthy and safe environment.
 employee benefit: wage and salary management
  promotions and transfers

How does Human Resource function relate with marketing

function
The HR department of the organization is concerned with hiring,
training, and management of the appropriate marketing personnel. The
marketing team has to collaborate with the HR department in developing job
descriptions, screening candidates, and designing training programs and
incentive systems.
While the marketing department communicates the brand of the
company to consumers, the collaboration of HR and marketing
communicates the brand of the company to employees. HR finds the best
people to promote and build the brand, while marketing creates and delivers
the brand message to employees. It is essential that the employees of the
company must know what the company is selling.
MARKETING FUNCTION
Marketing is concerned with identifying and satisfying the
customer's needs at the right price. Marketing involves researching what
customers want and analyzing how the organization can satisfy these wants.
 
The function of business is not complete with the production of
goods and services only. Thus marketing is the process of getting goods and
services into the hands of the consumer to satisfy the needs and desires of
consumers and producers.
 
 Marketing functions can be divided into concentrating and
dispersing which include buying, selling, transportation, storage, risk-taking,
market information, etc.

A fundamental activity in marketing is managing the Marketing

Mix consisting of the ‘4Ps’: Product, Price, Promotion and Place.
 Product: decisions about new product development, packaging,
branding, etc.

 Physical distribution: decisions about marketing channels, and

policies and procedures relating to warehousing, transportation,
etc.

 Promotion: involving advertising, salesmanship, sales

promotion, and publicity.

 Pricing: policies and procedures relating to the setting up of

profitable prices.

CONCLUSION

For organizations, managers, and employees to be successful more

emphasis needs to be placed on making sure every employee and every
manager knows what he or she needs to accomplish in the present and future
for the betterment of their organization. It can be accomplished by accurately
following the functions, rules, and guidelines of the organization.

The precise functioning of all these functions mentioned above

directs to the achievement of the organization's goals, targets, etc leading
them to be the most successful amongst other companies.
REFERENCES
https://www.commercepk.com/five-functions-of-business-
organization/
https://www.open.edu/openlearn/money-
business/organisations-and-management-accounting/content-
section-4.7
https://www.chiefmarketer.com/marketing-and-finance-from-
adversaries-to-allies/
https://www.lairedigital.com/blog/marketing-plan-vs-
marketing-strategy