Theory question 104
Business ManagementCommerce 2 (theory)
Adama's Pure Water Production Company Ltd. has the following officers: General manager, Marketing manager, Administration manager, Purchasing manager, Production manager, Accounts manager, Marketing officers, Production supervisors, Accounts officers; Purchasing officers and Administration officers.
(a) Draw an organizational chart for the company.
(b) State two functions each of the following departments of the company:
(i) Accounts;
(ii) Administration;
(iii) Marketing;
(iv) Production.
Show the model answer
(a) Chart: General Manager at the top; below him, on one level, the five managers – Marketing, Administration, Purchasing, Production and Accounts managers; under each manager his officers: Marketing manager → Marketing officers; Administration manager → Administration officers; Purchasing manager → Purchasing officers; Production manager → Production supervisors; Accounts manager → Accounts officers. Lines show authority flowing downward.
(b) Any two each:
(i) Accounts: keeps financial records; prepares final accounts/budgets; pays salaries and bills; controls cash and credit.
(ii) Administration: recruits, trains and keeps records of staff; handles welfare and discipline; coordinates office services, correspondence and security.
(iii) Marketing: carries out market research; advertises and promotes sales; fixes prices; distributes the products/after-sales service.
(iv) Production: turns raw materials into finished water products; plans production schedules; ensures quality control; maintains machines.
The chart must show the General manager at the top and each manager directly above his own officers.