Explain two effects that the inefficient functioning of a department can have on a business?

1. Decreased productivity: When a department is not functioning efficiently, tasks may take longer to complete, leading to decreased productivity. This can result in delays in project timelines, missed deadlines, and ultimately, a negative impact on the overall performance of the business. Inefficient processes can also lead to increased errors and rework, further reducing productivity and increasing costs.

2. Increased costs: Inefficient departments can lead to increased costs for a business in several ways. For example, if tasks take longer to complete due to inefficiencies, this can result in higher labor costs. In addition, inefficiencies can lead to waste, such as excess inventory or resources being used inefficiently, which can drive up costs. Furthermore, inefficiencies can result in missed opportunities for cost savings or revenue generation, further impacting the financial health of the business. Overall, the inefficient functioning of a department can have a significant impact on a business's bottom line.