AOS1 Large Scale Organisations Flashcards
LSO Characteristics
> 200 employees
Size of revenue
Total of its assets ( value on share market )
Large % of market share
Multiple locations: factories, diff countries
Organisation
A formal or structured arrangement where 2 or more people work together to accomplish a specific purpose/goal.
Multinational corporation
Owned and based in one country and operates in many countries throughout the world eg. Shell
Operations manager
Oversees transfer of inputs( equipment, material, time) into G&S.
Finance manager
Makes decisions regarding Capitol and ongoing finances.
HR Manager
Manages employees
Marketing manager
Involved in promotion of G&S
Research and development manager
Planning of new technology processes etc.
Levels of management
- Senior
- Middle
- Front-line
Public sector
Government departments and GBE’s
Private sector
Private, public and NFP organisations
Government department
Provide services.
Revenue comes from govt. revenue (mostly taxes)
GBE- government business enterprise
Provide and service and make a profit.
Often self funded but owned by government.
Revenue comes mainly from customers who pay for service.
Eg. Qantas
Private company
Provide G&S in pursuit of a profit.
Up to 50 shareholders
NOT listed on ASX.
Income from sales of G&S
Public company
To provide G&S in pursuit of a profit.
50 shareholders or more
Listed on ASX
Income from sales of G&S
NFP organisation
Provides G&S/ funds for social problems/ benefit community
Funds used to support cause
Public-private partnership
Work together to achieve a project
Govt. has to borrow less for infrastructure projects
Corporations offered major inducements from govt.
Vision statement
Outlines aspirations of company
Mission statement
Global statement expressing the purpose for organisation existence.
Organisational objectives
Top level/long term planning eg. Change of economy/laws
Dept. - medium term objectives, targets set and carried out at department level
Operational- short term, day to day
Economies of scale (positive)
Can produce at a cheaper cost b/c they buy so much
Provide employment ( positive )
Within org and G&S as inputs in production services.
Contribute to GDP (positive )
Avoid downturn in the economic cycle
Provide taxation revenue ( positive )
Pay tax to govt. for spending
Earn export income ( positive )
Generates income via exports b/c we are paid for what we send overseas. Eg. Meat. Increases value of AUD
Balance of payments ( positive )
Account of international transactions. Responsible for much of the exporting of G&S
Contribute to research and development ( positive )
Need R&D to develop best international practice. Develop Aus industrial base.
Contribute to infrastructure growth ( positive )
Transport, communication etc.
Downsizing ( negative )
Laying off workers attempting to reduce costs, casualisation also occurs
Outsourcing ( negative )
Moving production overseas
Damage to environment
Pollution eg. Agriculture, manufacturing contribute to greenhouse gases.
Current account deficit
Inbalance b/w coming in and going out.
Internal environment
Factors that managers of an organisation have a great degree of control over.
Includes employees, management style, board of management, corporate culture, company policy.
Operating environment
The groups without whom the organisation could not operate, or those who must be considered before decisions are made.
Includes customers, lobby groups, competitors, and suppliers + creditors
Macro environment
LSO has no control over but elements of environment can influence decisions made by management of organisation.
PELTS
Performance indicators
Criteria used to evaluate the success and achievements of an organisation.
Efficiency
How well an organisation uses resources to achieve objectives.
Effectiveness
How well an organisation has achieved it’s objectives.
Benchmarking
Set standards, a level an organisation must perform to. Not a PI but used to assess organisation by comparing to other companies.
Social responsibility
Obligations a business has over above it’s legal responsibilities to its wellbeing of Ees and customers, shareholders and the community as well as the environment.
Ethical management
Process of abiding by moral standards and doing the ‘right thing’ in the interest of stakeholders.
List of performance indicators
Net profit - diff bw revenue and expenses
Number of sales- number of products sold
% of market share - proportion of total market that a business has.
Rate of productivity growth- organisation uses resources more efficiently.
Customer satisfaction- degree to which an org performance meets customer expectations.
Staff satisfaction- how satisfied staff are within an org.
Level of staff turnover- no. of staff who leave the company
Number of customer complaints
Level of wastage- measured amount of waste created during production.
