Analysing Functions Interrelationship and Organisational Structure

This report demonstrates the interrelationship of various functions within an organisation, focusing on Equilibrium, a company specializing in financial management and tax planning. It highlights the importance of marketing, finance, and human resources management (HRM) and their interdependence. Marketing and HRM are linked through brand promotion and talent acquisition, while finance and marketing collaborate to control expenses and increase revenue. The report suggests that a functional organisational structure is most appropriate for Equilibrium, as it facilitates clear role bifurcation, improved efficiency, and better coordination by dividing tasks into major functions and ensuring effective communication channels. Addressing potential issues of coordination and communication, the report emphasizes how a functional structure mitigates chaos and confusion in the workplace.

Table of Contents

Demonstrate the interrelationship of the various functions within an organisation and how they
link to organisational structure.........................................................................................................1
Interrelation of functions........................................................................................................1
REFERENCES................................................................................................................................3

Demonstrate the interrelationship of the various functions within an
organisation and how they link to organisational structure.
Many functions are there within every organisation that are vital and required to effectively
perform the various task and activity for better accomplishment of set organisational goals.
Equilibrium is a company that is effectively dealing with the financial management and tax
planning of its client. The main business functions of Equilibrium which ensures effective
fulfilment of needs and expectation of its client are provided as below:
Marketing- This function is important and vital to set an effective communication and
interaction between the customers and organisation. Effective promotion and advertising of
services provided by the Equilibrium company is done by marketing function to ensure higher
sales and productivity.
Finance- It forms a vital function of every organisation which is concerned with regular
preparation of budget to keep a check and control of organisational expense and profit.
Equilibrium company is having an effective financial function which properly prepare various
budget to keep control on wastage through keeping a check on all company expenses with the
aim of enhancing its profit margin (Baporikar, 2019).
Human resources management- This function of Equilibrium is associated with
maintaining a skilled and competent workforce to provide improved services to clients. Human
resource management comprises of recruiting and maintaining skilled and most talented
employees which ensure improved competitive strength and better services for clients.
Interrelation of functions
Marketing and HRM- A link up and interrelationship between the marketing and HRM
function is important and beneficial for Equilibrium company as marketing function supports
better advertising and creating of improved brand position which helps HRM to attract more
talented and skilled employees. Further, recruitment of skilled employees also plays a vital role
in enhancing the efficiency of marketing function through leading a more productive and skilled
marketing team. Thus, interrelationship between marketing and HRM function ensures attraction
and recruitment of more talented employees which ensures improved performance of
Equilibrium.
1

Finance and marketing- A close interrelationship between finance and marketing
function is also important and advantageous for Equilibrium as it supports better check and
control on the marketing expense. It has been analysed that, preparation of budget for marketing
and promotion leads a better check on promotional expenses which ensures higher profit margin.
Along with this, effective marketing helps ensuring higher revenue through improved
productivity which provide more finance which improved efficiency and performance level of
finance function (Jabłoński, 2019).
On the basis of above discussion, it has been find out that interrelationship between
functions is important and beneficiary for Equilibrium. But still some time issue of lack of
coordination and communication can be faced between the functions that crates chaos and
confusion. Thus, implication of the functional organisational structure is effective and most
appropriate for Equilibrium which supports improved coordination among various functions.
Figure 1: Functional organisation structure in Equilibrium, 2021.
Adoption of functional structure facilitates more effective and clear bifurcation of role
and responsibility of all the employees among various function on the basis of their skills and
knowledge which lead to improved efficiency and better coordination. Functional structure
supports dividing all task and activity into major functions and ensures effective communication
2

channels among these function which mitigate the chances of chaos and confusion and bring
improved coordination at workplace.
REFERENCES
Books and journal
Baporikar, N., 2019. Factors Creating Competitive Advantage for Family-Owned Business.
In Handbook of Research on Digital Marketing Innovations in Social Entrepreneurship
and Solidarity Economics (pp. 47-62). IGI Global.
Jabłoński, M., 2019. The Critical Aspects of Value Migration from Volatile Business Models in
the Digital Economy. Journal of Creating Value, p.2394964318817409.
3