CHAPTER ONE. Organisation – A formal or structured arrangement where two or more people work...

CHAPTER ONE

Organisation – A formal or structured arrangement where two or more people work together to accomplish some specific purpose or set of goals.

All have:◦A distinct purpose◦Have a deliberate form of structure◦Comprise of two or more people

Serve to manage complex social and technological change.

Ensure that there can be continuity of knowledge between past and future generations.

Provide an important source of employment.

The ABS defines a large scale organisation as one which has 200 or more employees or $200 million or more in assets.

Other characteristics include:◦Total revenue – substantial ◦Profits – substantial◦Market share – substantial◦Number of business locations – multiple

1. Ownership

Private Company Public Company‘Proprietary Limited’ (Pty Ltd)

‘Limited’ (Ltd)

2 – 50 shareholders 50 – Unlimited shareholders

Shares bought and sold privately

Shares listed on the ASX and can be bought or sold by any person or company

Government Business Enterprises (GBE’s) – Businesses which are government owner and operated.

Profit Not-for-ProfitDesire profit attainment, market share and growth.

Aim to provide a specific service to the community.

2. Focus

3. Business Activity 496 individual categories 17 industry categories 3 sectors

Primary Secondary Tertiary

Objectives – Targets or outcomes that an organisation aims to achieve.

◦S – specific ◦M – measureable◦A – achievable◦R – relevant◦T – time bound

Goals must be...

Operational Tactical StrategicShort-term: daily, weekly, half-yearly

Mid-term: one – two years

Long-term: two – five years

Front line managers / Supervisors

Middle/Departmental managers

Senior managers

EXAMPLES

Financial – profits, market share

Service – needs of customers

Ethical and Socially Responsible – promote equity

Environmental – reduce wastes

Key Performance Indicator (KPI) – A measure that helps an organisation determine if it’s reaching its objectives.◦ Examples:

Number of sales Rate of staff turnover

P – planning◦Setting strategic goals

O – organising◦Coordinating resources

L- leading◦Directing, influencing and motivating

C – controlling◦Monitoring and evaluating

Organisation Large scale organisation Takeover Merger Joint venture Dual listed company Government business enterprises Corporatisation Privatisation

Profit Objectives Mission statement Vision statement Key performance indicator