1. Organisation and Stakeholders Flashcards
What is the definition of an Organisation?
An organisation is a social arrangement for the controlled performance of collective goals.
What are the role of public sector organisations, and who controls them?
To provide central or local government services and are under the control of government organisations.
What is on the the x-axis of Mendelow’s Matrix?
Power/influence
How should stakeholders in section A of Mendelow’s Matrix be treated? Give an example of one such party.
With minimal effort as they have little power and influence. Examples of stakeholders in section A might be contracted workers.
How should stakeholders in section B of Mendelow’s Matrix be treated? Give an example of one such party.
People in section B should be kept informed as they may not have power to influence company activites but their views can influence shareholders perhaps by lobbying. An example of this is a community representative.
How should stakeholders in section C of Mendelow’s Matrix be treated? Give an example of one such party.
Stakeholders in section C must be kept satisfied. Whilst passive they are capable of movement to section D thus must be treated with care. An example of this is a large institutional shareholder.
How should stakeholders in section D of Mendelow’s Matrix be treated? Give an example of one such party.
They are key players and the organisations strategy must be acceptable to them. Key stakeholders may participate in decision making.
What is the principal/agent problem?
This occurs where the managers/agents are managing an organisation to meet their own needs and not the needs of the owner/provider of finance.
What is x-inefficiency?
Organisational slack, another name for the principal/agent problem where the managers are focused on achieving their own agenda as opposed to maximising the entity’s performance.
What is a quango?
A quango is a quasi-autonomous non-governmental organisation funded by but not directly controlled by the governments regulatory bodies.
What is the value for money framework for economy?
The purchase of inputs of appropriate quality at minimum cost.
What is the value for money framework for efficiency?
Maximising output from given inputs, or minimising inputs for a given output.
What is the value for money framework for effectiveness?
Achieving an organisations objectives.
What is a stakeholder?
People or groups with an interest in an organisations strategy and activities.
What is corporate governance?
The systems by which companies are directed and controlled.
