A Flashcards
Define ‘business organisations’ and explain why they are formed.
An organisation is a social arrangement which pursues collective goals, which controls its own performance and which has a boundary separating it from its environment
- Overcome people’s individual limitations
- specialise
- save time
- share knowledge
- synergy
Describe common features of business organisations.
- performance
- systems and procedures
- specialise
- goals
- inputs and process into outputs
Outline how business organisations differ.
- ownership
- control
- activities
- NFP
- legal status
- size
- sources of finance
- technology
List the industrial and commercial sectors in which business organisations operate.
- agriculture
- manufacturer
- raw materials
- energy
- retailing/distribution
- intellectual production
- service
Identify the different types of business organisation and their main characteristics
i) Commercial (profit orientated)
ii) Not-for-profit
iii) Public sector
iv) Non-governmental organisations
v) Cooperatives - share profit
Define stakeholders and explain the agency relationship in business and how it may vary in different types of business organisation.
A person or group of persons who have a stake in the organisation.
- managers act as agents for stakeholders, particularly relevant to large organisations
Define internal, connected and external stakeholders and explain their impact on the organisation.
- internal: manager/employees
- connected: shareholder/banker/supplier/customer
- external: gov/pressure groups/profesh bodies
Explain how the different stakeholder groups interact and how their objectives may conflict with one another.
- managers want to maintain corporation for management skills
- shareholders want best for dividends
Compare the power and influence of various stakeholder groups and how their needs should be accounted for, such as under the Mendelow framework.
Mendelow Matrix
- Plots Power against Interest
- Y axis: High -Low Power
- X Axis: Low-High Interest
Explain how the political system and government policy affect the organisation.
- Degree of government intervention
- Policy direction
- Political risk/stability
Describe the sources of legal authority, including supra-national bodies, national and regional governments.
(a) Parliamentary legislation
(b) Government regulations
(c) Treaty obligations
(d) Officialregulations
(e) International bodies
Explain how the law protects the employee and the implications of employment legislation for the manager and the organisation.
- unfair dismissal - on the onus for the employer to prove
- wrongful dismissal
Identify the principles of data protection and security
(a) Processed fairly and lawfully
(b) Obtained only for one or more specified and lawful purposes
(c) Adequate, relevant and not excessive
(d) Accurate and, where necessary, kept up to date
(e) Not be kept for longer than is necessary for that purpose or those purposes
(f) Not be transferred to a countries where data protection is less strictly applied or protected
Explain how the law promotes and protects health and safety in the workplace.
To meet legal obligations
To minimise the risk of accidents
To minimise the risk of litigation
Outline principles of consumer protection such as sale of goods and simple contract.
A contract must have three elements for it to be legally enforceable:
(a) Consideration – normally money offered, as in a contract of employment but equally as in the case of bartering, it could a cow, a bag of rice or even the promise of a service.
(b) Offer and acceptance – there must be an offer and an acceptance by the two parties.
(c) Intention to enter into a legally binding contract – this could be written or verbal.
