Ownership and Control Flashcards
why are all organisations classed as the same
they evolve due to the fact that we cant solve all out problems alone
how do managers achieve their goals?
using hierarchies, markets and networks
some argue that organisations differ greatly, what is their argument??
the way in which organisations are owned and control creates vast differences in organisations
what does this chapter look at?
- differences between private, public and voluntary sector
- if differences in ownership matters
- do other things such as stakeholders and environment matter more
what is property rights theory?
- focuses on ownership and the rights or entitlements with it
- most important differences are between private, public and third sector, voluntary
what is the private sector?
organisations wonder by private individuals for any lawful purpose
givernance:
- soletrader/propetier/partnership
- private limited company
- public limited company
who governs the private sector?
companies house
registrar of companies
what is the property rights theory for private sector?
- sole traders are personally liable
- LTDand PLCs have steerage legal identity
- directors have a fudiciary responsibility to act in the interests of the company - to maximise profits
- PLCs allow shares to be traded
- PRT suggests that owners (as owner managers or shareholders and managers) will ensure the value of assets is maximises
what is the public sector?
organisations owned by the state (and therefore ultimately citizen tax payers) to fulfil public functions
- central and local gov
- agencies
- NDPB / Quangos
- public corporations
how is the public sector regulated?
democratically and politicians
what is the property rights theory for public sector?
- public sector provides these collective goods through taxation as the free market under provide public and merit goods
- right tax service package will improve economic efficiency
- PRT suggest that the owners (tax payers) will require politicians to deliver the best (most efficient) tax service package
what is the difference between merit and public goods?
public goods are ones in which their consumption does not affect quantity available to next person
merit goods include things such as healthcare and education (things government think will under consume)
what is the voluntary sector?
- public benefit requirement
- owned in trust beneficiaries
- governed by trustees
- non distribution of profit clause
who is the regulator of voluntary sector?
charity commission
what doe sth property rights theory say about the voluntary sector?
- VS meet needs not met by either the free market or the state
- demand side (weisband)
- supply side (Hansmann)
- PRT suggest that donors will want to maximise the efficacy of they gift
