Question

Explain the difference between operating departments and support departments.

Answer 1

Operating Departments: These refer to the departments which carry out the main or central purpose of the organization. The main purpose can be different depending on the type of organization. In a manufacturing organization it will be conversion of raw material to finished goods whereas in case of a service organization it will be provision of services to the customers.

Examples of operating departments include refining department, manufacturing department etc.

Support Departments: These refer to those departments which provide support to the operating departments. In other words they are not directly engaged in the main activity of the business, rather they are responisble for facilitating the operating departments.

Examples of support departments include Human resources, IT call support etc.