Functional Areas and Collective Working Practices in Tesco

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Role of HR, Marketing and Finance function within an organisation

An organisation comprises of diverse functional areas or department such as HR, marketing, production, finance, research and development which are together responsible to attain the predetermined objective of an enterprises. Each function has their own role but they are interrelated with one other to maintain the coordination and attain comprehensive objective effectively. Explanation of the organisational roles in relation to the Tesco company are determined below:

Human Resource Management: The HR department is considered as the backbone of an enterprises as it is responsible to conduct recruitment cycle, perform selection process, run orientation session, training and development as well as plan out appraisal programme. Simply the role of human resource is responsible in the better management of practices as well as policies associated with staff. Tesco company have successfully incorporated the HR cycle because they allow their staff to make the efficient use of the skill or capabilities and utilise it in favour of an organisation. Generally, the manager organises session in order to update the existing knowledge of their staff and utilise it to improve the footfall of each and every retail outlet (Bailey and et. al., 2018). Further, based on the evaluation process appraisal programme are designed by the human resource in order offer the better opportunity to the potential personnel through incentives, promotion and salary hike.

Finance function: Finance function as the name suggest evaluate all the financial transaction of the Tesco company in order to ensure optimum use of the resource. As company operate its business worldwide so the role of financial function in terms to prepare the budget and final statement helps to mitigate the unnecessary cost and maximise the profit margin (Palmer and Truong, 2019). These budget are planned out for the specific tenure which can be for annually, quarterly and monthly term. Thus, it support the internal operations by supporting diverse role and mitigate the option of deviation. 

Marketing function: Marketing is the core management function that enhances the internal operations by constantly analysing market dynamics. The prime role of the marketing manager is to anticipate the changing requirement of the customer based on which they plan out the innovative techniques and promote the product to reach out target customers. Constant improvement in terms of delivering services assist respected company to overpower their competitive pressure and manages long term relationship with customer. Like, the company along with traditional promotional technique focus on digital technique as well in order to communicate the offerings through virtual media. Thus, it has simplified the options for public such as they can explore the website of company and order the items which will be delivered to them within specific tenure (Gunasekaran and et. al., 2018).

Develop an understanding of collaborative working practices

Collaborative working practices involve the participation of both staff as well as manager in order to deal with common problem. This practice comprises of either traditional or virtual team that function together by sharing the innovative idea and opinion in order to come up with viable solution. It enhances the flow of communication towards different functional area which integrate the efforts of group member to remain committed and participate to gain the desirable outcome. Additionally, it involve the practices like conducting group discussion and undergo brainstorming method that promote the creative thinking ability due to which they successfully deliver the value to different stakeholders of company. There are certain reasons that demonstration the necessity for Tesco company to encourage the collaborative work practices which are determined below:

Promote self analysis: Performing collective practice within respected company promote both employer and employee to think beyond the limit which aspires to bring clarity in the particular situation. This strengthen the capabilities of internal stakeholders in order to structure the background of business significantly. 

Adopt upcoming changes: Changes are the viable part of business entity that needs to be progressively performed by personnel. Usually the employee resist changes because for that they need to acquire new skill and knowledge which take significant amount of time as well as effort. Herein, Tesco company needs to focus on the collaborative practices because it enhances the participation of employees in terms to understand the essence of changes. This generate the multiple options for company to choose the unique solution and upgrade the working pattern (Hoang and et. al., 2018).

Enhances problem solving capability: As respected company incorporate its business in the dynamic environment due to which it is essential for them to constantly enrich the current skill and capability of employees. This leads to increase in competitiveness amongst staff member where the potential team collapse with one other and overcome the hurdles for smooth business plan functioning.

Enhances the productivity of employees: Collaborate leads to cooperation between the employer as well as employee that enrich the strong bond and interpersonal relationship. In terms of the selected company such bond enhances the productivity by overcoming the issues associated with high turnover and absenteeism rate (Hodrick, 2014). Further, it avoid the chances of conflict in interest because the employees perceive them as an essential asset due to which they consider organisational objective over their personal objective.

Demonstrate knowledge of the role of financial management and reporting within the organisation

The role of financial manager and reporting department is to effectively manage the financial health of company by developing the sustainable strategies which help to attain the set financial goal effectively. This functional area assist Tesco company to undergo with effective monetary decision which help to attain the set standard objective by minimising the possibility of unnecessary wastage (Kharadze and et. al., 2019). Explanation of certain role for the success of selected company are determined below:

Role of financial management

Formulate financial decisions: The primary role of the financial management is to make the monetary decision in context to effectively manage the use of funds at different department. Emphasize is given on both cash and non cash transaction in order to manage the flow of cash within or outside the organisation. Thus, it acts as an effective practice as it promote the optimum utilisation of monetary transaction.

Capital management: The other essential responsibility of financial manager is to effective manage the capital by the owner with the objective to effectively run the operations of business. So to flourish the profitability it is the role of financial manager to manage the inflow and cash outflow of Tesco company for smooth functioning.

Financial planning:For the better financial planning the role of financial manager is to prepare the budget for specific tenure. Generally these budget are prepared on the basis of historical expenditure or anticipated expenses (Olson and et. al., 2018). The objective of whole financial planning is to manage the transaction of selected company and maintain the liquidity in order to meet out unforeseen events.

Role of reporting

Manage the financial record: The role of reporting is to manage the bookkeeping by systematically recording the monetary transaction of business. As respected company carry out its businesses at large scale so absence of adequate recording does not leads favourable result. This determine the area where firm is doing over expenditure and can restrict the flow of funds.

Prepare financial statement: Financial statements are prepared to evaluate the current position of firm with the help of balance sheet, cash flow statement as well as profit and loss account. This is favourable for the internal stakeholder as they can analyse the true position of firm and accordingly can set future criteria of the firm. This even help to formulate the strategy like in terms to extend or restrict the credit transaction (Sharma, Chrisman and Chua, 2012). Moreover, interested external stakeholders too examine these statements and makes decision. For instance, investment decision whether to invest or withdraw funds from the specific company. Therefore, valuation of asset and capital can help Tesco company in systematically mange the financial operations of company. 

CONCLUSION

From the above report it has been determined that Business studies involve various functional areas like marketing, accounting, human resource and so on which are devised for the effective functioning of entity. This act as a foundation which strengthen the role of leader as well as manager in order to incorporate better performance. Similarly, collaboration working practices promote the platform where diverse staff and employer work together for the welfare of company. Thus, to smoothly perform the operations of an enterprises financial management and reporting are the core functional areas which manages the inflow and outflow of monetary resources. Therefore, it helps to control down the unnecessary expenditure of the company in order to significantly attain the organisational success.

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