Unit 1 Flashcards
Globalisation
Globalisation is the effect of hi - tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system.
Macro environment
The macro environment is made up of the broad factors in th economy and society within which the organisation operates.
Effectiveness
Effectiveness is the degree to which an organisation has achieved it’s stated objectives
Efficiency
Efficiency refers to how well an organisation uses recourses to achieve objectives
Performance indicators
Performance indicators are specific criteria used to measure the efficiency and effectiveness of the organisations performance.
Net profit
Net profit is what remains when expenses are deducted from the revenue earned
Number of sales
Number of sales measures the number of products sold
Percentage of market share
Percentage of market share is the proportion of the total market that a business has, expressed as a percentage
The rate of productivity growth
The rate of productivity growth measures the change in productivity in one year compared to the previous year
Customer survey
A customer survey measures how satisfied customers are with the organisations performance
Staff survey
A staff survey measures how satisfied staff are within the organisation
Staff turnover
Staff turnover measures the number of staff who are leaving the organisation
Customer complaints
Customer complaints indicate whether or not customers are satisfied with the performance of a the organisation.
Level of wastage
The level of wastage measures the amount of waste created by the production process
Number of workplace accidents
The number of workplace accidents indicates how safe the workplace is for employees
Benchmarking
Benchmarking occurs when an organisation measures its performance against that of other leading organisations known for their excellence.
Stakeholders
Stakeholders are groups and individuals who interact with the organisation and have an interest in its activities
Social responsibility
Social responsibility is the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment
Ethical management
Ethical management refers to the process of abiding by moral standards and doing the ‘right’ thing in the interest of all stakeholders
Shareholders
Shareholders purchase shares in a company, so they are partial owners. Shareholders want the organisation that they have invested in to be profitable as they receive a proportion of the profits (called dividends).
Management
Management has the responsibility of running a profitable or successful organisation.
Employees
Employees are vital to an organisation as they manufacture or produce the product the organisation sells. The quality of the product depends on their skill and commitment to the process.
Unions
Unions represent employees in many workplaces in Australia. They attempt to negotiate favourable pay and work conditions on the employees’ behalf.
Profit
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Conflict of interest
A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests (financial, emotional, or otherwise), one of which could possibly corrupt the motivation of the individual or organization.
Management functions
Management functions can be defined as areas or divisions of an organisation that carry out particular tasks or activities.
(R&D, human recourses, operations, finance, marketing)
Positive contributions lso’s make to the economy
- Contribution to economic growth
- Contribution to employment
- Contribution to exports
- Contribution to research and development
- Contribution to infrastructure growth
Negative contributions by LSO’s
- Downsizing
- Outsourcing
- Damage to the environment
Role of board of directors?
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organisation.
