Functional Areas
This functional area recruits, trains and pays the people who work for a business.
What is Human Resources?
Fonterra is owned by these people, who also supply the milk it turns into products.
Who are the farmer shareholders (NZ dairy farmers)?
This diagram shows the roles in a business and who reports to whom.
What is an organisation chart?
Name three leadership styles
Laissez-Faire
Autocratic5/Authoritarian
Democratic
Fonterra is this type of business, owned and controlled by the farmers who supply it
What is a co-operative?
Market research, advertising and deciding on prices are all the work of this functional area.
What is Marketing?
This group sits at the top of a large company's structure and sets its overall direction.
What is the Board of Directors?
The line of authority running from the top of a business down to its employees is called this.
What is the chain of command?
Before a busy season, Operations depends on this functional area to hire and train enough staff.
What is Human Resources?
Collecting milk from farms in tankers and getting it to the factory is part of the work of this functional area.
What is Operations?
Making the product or delivering the service, including checking its quality, happens in this functional area.
What is Operations (Production)?
The board appoints this person to run the business day to day.
Who is the Chief Executive Officer (CEO)?
The number of employees a manager directly supervises.
What is span of control?
Regular cross-department meetings and shared business goals both help to improve this between functional areas.
What is communication and cooperation (coordination)?
Compared with Fonterra, a small attraction like Kaipātiki Hot Springs would most likely have this kind of structure, with fewer levels of management.
What is a flat structure?
Budgeting, paying invoices and preparing the financial statements belong to this functional area.
What is Finance (Accounting)?
A person who leads one functional area and reports to senior management sits at this level.
What is a manager?
When major decisions are made by senior managers at head office, the business is described this way.
What is centralised decision-making?
This is one way a business could reduce conflict between its functional areas
Shared goals, regular meetings, clear communication, cross-department teams
Name one innovation Fonterra is exploring to improve their porduction process
Miscanthus grass
AI and automation in quality control, packaging and processing
Waste water treatment processing
A business that designs a brand-new product to match changing customer tastes is mainly using this functional area.
What is Research and Development (R&D)?
Give one reason a large business has specialist managers for each functional area
They have expert knowledge, there’s too much work for one person, and decisions are better informed
Give one advantage of a tall structure.
Clear chain of command, close supervision, clear promotion path
Which Māori business concept supports working together?
Whānaungatanga
Name one policy for Fonterra
Code of business conduct
Disclosure policy
Diversity, Equity, and Inclusion
Environmental
Respect for Legitimate Land Tenure Rights
Ethical Behaviour
Health and Safety and Wellbeing
Nutrition
Privacy