Introduction

Every company is made up of the different departments. These departments contributes towards running of business. The common departments of the company includes production, finance, human resources, marketing & sales and information technology department. The organizational department performs various duties and functions for company. Further, employees working in organization are members of team that works together for achieving goals of organization with the help of using their particular talents and skills (Shapiro and Hanouna 2019). Hence, this report aims to discuss role and importance of different functions of organization. Moreover, discussion will be on understanding of the collaborative working practices. In addition, explanation will be on financial management and its importance. Lastly, discussion will be on financial reporting and its importance.

Background of Company

Aldi UK is one of the most common name of brand of two German family owned supermarket discounted chains. The company is having around ten thousand stores in twenty countries and the combined turnover of company is estimated to be fifty billions. The foundation of this supermarket chain was in 1946 by Theo Albrecht and Karl, who were brothers (Aldi.co.uk. 2020).

Discussion

Role and Importance of Departments

Marketing Department

Marketing is considered to be most vital part of the business activity. The marketing department helps in playing important role in business promotion as well as mission of organization. This particular department serves as face of organization for representing the business and producing and coordinating the materials. In addition, the main job of this department is for reaching out to investors, customers, community and prospects, while creating good image that helps in representing company in the positive light (Daft 2015). Depending upon the entity, marketing department comprises of following set of roles:

• Defining and managing brand of company.
• Conducting the management of campaign for marketing the initiatives.
• Producing marketing and the promotional materials.
• Creation of content to provide search engine optimization for the website.
• Managing and monitoring of the social media.
• Producing the internal communication
• Serving as the liaison of media.
• Conducting the market and customer research.
• Overseeing the outside agencies and vendors.

Finance Department

The department of finance is important department in the business, as under this department all the matters related to the finance in company are being regulated. These days, finance department of the firm has broader ranges of the roles for undertaking outside and inside its business and it carries major responsibilities, particularly in the field of shareholder’s value that is increasingly gaining its importance. Finance is considered to be the life blood of entity and it serves as the key ingredient for the successful business. For any business entity, their performance and success depends on the way of handling finance (Cummings and Worley 2014). Following are the major roles played by finance department:

• Management of cash flow.
• Regulates different accounts on the daily basis.
• Designing of long-term and short-term financial strategies.
• Internal Audits.
• Financial advice to company.

Human Resource Department

The professionals of human resource are lifeblood of organization. It is because of the fact that their job is for ensuring that business gets most out of their employees. The department of human resource is required to provide higher return on investment of business in its people. It is backbone of the successful entities. This department has the responsibility to hire and fire the employees, maintain interoffice relationships, interpreting the laws of employment and train the workers. It works diligently behind scenes for ensuring that the entity is running efficiently (Vanblaere and Devos 2018). Following are the main roles and functions performed by HR department:

• Hiring and Recruiting.
• Training and Development.
• Handling the compensation.
• Employee Benefits.
• Employee Relations
• Legal Responsibilities

Teamwork and its Importance

Teamwork is vital in any business organization, as it helps in providing employees with the opportunity to bond with each other. This helps them for improving their relations. The employees that constitute the team working on the project feels valued upon the successful completion of the tasks. In addition, teamwork enables the employees for accomplishing the tasks more efficiently and faster than individual tackling projects. Coopering together on the different tasks reduces the workloads of every employees (Laeeque, Babar and Ahmad 2017).

The practice of collaboration is consists of community service entities working together for achieving shared level of goals. The achievement of collaboration is possible, when company develops the mechanism such as skills, processes and structures for bridging the interpersonal and organization differences and arriving together at the outcome, which is valued by them. The highly productive and effective workplace is possible through the teamwork. The benefits of collaborative working are manifold and it can have major impact on project’s outcome (Hustedt and Danken 2017). Following are most vital benefits of teamwork in the organization:

• Increased level of creativity as well as out of the box thinking.
• Increased level of flexibility.
• Increased possibilities of learning.
• Higher productivity of employees.

The examples of teamwork are as follows:

• The first example of teamwork is rotation of the leadership. This gives chance to various people in order to test their leadership skills. This level of exposure and collaboration results into strong leadership of company (Korzilius, Bücker and Beerlage 2017).
• In case of Aldi UK, each of the member of team contributes as well as each contributor plays vital role towards their own individual strength. They communicate, collaborate and brainstorm on each and everything. The company’s team uses each other as sounding board and any idea generated is not criticized and ignored (Singh 2014).

Financial Management and Its Importance

Financial management is the area of business management that is devoted towards judicious uses of the capital and careful selection of capital source for enabling spending unit to move in the direction of achieving goals. It is operational activities of business, which is responsible for obtaining and utilizing required funds for the efficient operations. It is considered to be organic function of the business. The entity requires finances for obtaining physical resources, carrying out the activities of production and the other operations of business, paying compensation to suppliers and others. In developed market, most of the businesses raises the capital in easy manner (Shapiro and Hanouna 2019). However, main problem is efficient utilization of capital by effective financial control and planning. In addition, the business is require to ensure that it is dealing with the tasks such as ensuring funds availability, allocation of it, management, investment, costs controlling, forecasting financial requirements, profits planning and estimating the returns on investment, working capital assessment and others (Burtonshaw-Gunn 2017). Following are the points that shows importance of financial management:

• It helps entities in the financial planning.
• It helps in assisting entities in planning and acquisitions of the funds.
• It helps the entities in effectively allocating and utilizing received or acquired funds.
• It helps the entities for making critical financial decisions.
• It helps to improve organizational profitability.
• It helps in providing economic stability.
• It encourages the employees for saving money that helps them in the personal financial planning (Finkler, Smith and Calabrese 2018).

Financial Reporting and its Purposes

Financial reporting are considered to be bedrocks of the modern business. It is referred as standard practices for giving stakeholders the accurate depiction of the entity’s finances, capital, expenses, revenues, profits and the cash flows, as the formal records, which helps in providing greater in-sights into the financial information. Financial reporting helps to demonstrate overall company’s health (Frias‐Aceituno, Rodríguez‐Ariza and Garcia‐Sánchez 2014). It offers much of insights regarding entity’s structure of management and its culture. The key purpose of financial reporting is providing information regarding financial position, performances and changes in entity’s financial position. This is beneficial and important for the wider ranges of users in order to make economic decisions (Nobes 2014). Hence, following are the financial reports that are prepared by the company:

Balance Sheet

Balance sheet is the statement of business financial position, which lists liabilities, assets and the equity of owners at particular time-period. In the other words, it illustrates net worth of business. It have details from the previous years so that back to back comparison can be done of the two consecutive years. Further, data shown on this helps in tracking the performance and identifying the ways for building up the finance and seeing where the improvement can be done. In case of Aldi UK, balance sheet statement are prepared at end of each financial year. This company reports and discloses the financial information to the users and their stakeholders (Aldi.co.uk. 2020).

Profit & Loss Statement

Profit & Loss statement is the financial report that helps in providing summary of the entity’s expenses, profit or losses and expenses over given period of the time. The statement of profit & loss demonstrates ability of the company for generating sales, managing the expenses as well as creating the profits. Moreover, preparation of it is based on principles of accounting, which includes accruals, matching and revenue recognition. The Profit & Loss statement is prepared by Aldi UK at end of every financial year and they discloses it to the users (Aldi.co.uk. 2020).

Conclusion

Therefore, this assignment concludes that the departments of organization such as marketing, HR and finance perform their functions and duties for the entity. Moreover, teamwork is vital as this helps employees for working in collaborative environment. Further, financial management is vital practice as this helps in effectively dealing with financial resources of firm for the achievement of business objective. At last, it can be said that main purpose of financial reporting is for communicating financial information and results with their users.

Reference

Aldi.co.uk. 2020. ALDI UK | Homepage. [online] Available at: https://www.aldi.co.uk/ [Accessed 21 Jan. 2020].

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