1. Different purposes of organisations

Question 1

Organisation

Answer 1

is a social arrangement which pursues collective goals and controls it’s own performance.

Buchanan and Hucyznski

Question 2

Why do we need organisations

Answer 2

share skills and knowledge
Specialise
Pool resources
Synergy

Question 3

Profit seeking organisations objectives

Answer 3

Primary objective is to maximise owner wealth

Secondary objective(s) detailed objectives as to how to maximise owner wealth

Question 4

NFP orientated organisations objectives

Answer 4

Primary objective is to maximise benefit to beneficiaries

Secondary objective(s) are
Economy
Efficiency
Effectiveness

Question 5

NFPs include

Answer 5

government departments and agencies
Schools
Hospitals
Charities
Clubs

Question 6

Public Sector

Answer 6

owned and or run by the government

Question 7

Private sector

Answer 7

anything not public

Question 8

Limited Liability

Answer 8

Shareholders liability is limited, business is a separate legal entity

Question 9

Multinational company

Answer 9

operate in more than one country and spread risk

often large companies

Question 10

Public sector organisations

Answer 10

Police
Military
public transport
primary education
healthcare for the poor

Question 11

Non governmental organisations NGOs

Answer 11

Humanitarian
Oxfam
Red Cross
World Vision
Amnesty International

Question 12

Operational NGOs

Answer 12

seek to achieve change through projects i.e. Oxfam

Question 13

Campaigning NGOs

Answer 13

seek to achieve change through lobbying and PR i.e. amnesty international

Question 14

Cooperatives

Answer 14

organisations owned and democratically controlled by its members

Question 15

Mission

Answer 15

Organisations reason for being

In line with values and expectations of stakeholders

Question 16

4 elements of an effective mission statement

Answer 16

Purpose
Strategy
Policy and behavior standards
Values

Question 17

Vision

Answer 17

How the organisation is seen in the future

Aspirational, vague and timeless

Question 18

Objectives

Answer 18

Come from mission statement

Question 19

SMART Objectives

Answer 19

Specific
Measurable
Achievable
Relevant
Time related

Question 20

Primary objective

Answer 20

corporate objective

i.e. double revenue and profit

Question 21

Secondary objectives

Answer 21

when combined they ensure the achievement of the primary objective
i.e. reduce cogs, increase sales

Question 22

Stakeholder

Answer 22

anyone who has anything to do with an organisation

Question 23

creating value for stakeholders

Answer 23

control and coordination of resources
efficient production of goods and services
facilitating inovation

Question 24

Controls

Answer 24

direct supervision of staff
planning
targets
culture

Question 25

Efficient production of goods and services

Answer 25

Lean production

Question 26

Lean Production includes

Answer 26

reduce waste by minimising;
inventory
waiting (idle time)
defective units
effort
transportation
over processing
over production