CHAPTER 1 The Different Purposes of Organisations

WHAT ?? IS AN ORGANISATION? Def: Buchanen & Huczynski
1. SOCIAL ARRANGEMENTS
  1. Structure to allow people to work together towards a common goal. The Larger the org. the more formal the structure.
2. CONTROLLED PERFORMANCE
  1. Systems & Procedures in place to ensure that the group goals are achieved. Sale Targets & Monitored performance.
3. COLLECTIVE GOALS
  1. Organisations are defined by their goals. i.e. A school educates pupils...
WHY?? do we need organisations
1. "SHARE your SPECIAL POOL"
  1. SHARE skills & knowledge
    1. perform tasks otherwise unable to achieve on own accord
  2. SPECIALISE
    1. individuals can concentrate efforts on an activity leading to specialization, and greater skill level with knowledge, otherwise not achieved if spread too thin over a surplus of tasks
  3. POOL resources
    1. Time or Money or Expertise
2. *** SYNERGY ***
TYPES OF ORGANISATIONS
1. PROFIT-SEEKING ORGANISATIONS Main objective is to maximize wealth of their owners
  1. SO:LE TRADERS owned & run by 1 person. Fully Liable
  2. PARTNERSHIPS owned & run by two or individuals. Fully Liable
  3. LIMITED LIABILITY COMPANIES Company is a separate legal enitity, to its owners/shareholders. Owners liability is limited to their investement in the company.
    1. PRIVATE LIMITED COMPANY
    2. PUBLIC LIMITED COMPANY
2. NOT FOR PROFIT ORGANISATIONS Satisfy particular needs of its members, they are set up to benefit
  1. Government Departments & Agnecies
  2. Schools
  3. Hospitals
  4. Charities
  5. Clubs
3. PUBLIC SECTOR ORGANISATIONS Basic government services & controlled by government
4. PRIVATE SECTOR ORGANISATIONS Run by private individuals & groups - non-governmental
5. Non-Governmental Organisations (NGO's)
  1. Operational NGO
    1. Achieve change directly through projects
  2. Campaigning NGO
    1. Achieve change indirectly through lobbying & PR programmes
6. CO-OPERATIVES Owned & Democratically controlled by its members, which are the people who buy their goods and services. Only cater to needs of members and also share in the profits.
MISSION, VISION & OBJECTIVES
1. MISSION - The organisations reason for being
  1. non-quantifiable / no time constraints
  2. Elements of a Mission
    1. Purpose - WHY does the org. exist & WHO does it exist for
    2. Strategy - WHAT does the org. provide & HOW is it provided
    3. Policies & Culture - HOW does the org. expect staff to behave or act
    4. Values - WHAT are the core principles of the org.
2. VISION - How the organisation sees itself in the future
3. OBJECTIVES
  1. SMART
    1. SPECIFIC
    2. MEASURABLE
    3. ACCURATE
    4. RELEVANT
    5. TIME-CONSTRAINED
CREATING VALUE FOR STAKEHOLDERS
1. Control & Co-ordination of resources to achieve goals & outcomes
  1. CONTROLS - Increase possibility of org. achieving its goals
    1. Direct Supervision
    2. Planning Processes
    3. Targets
    4. Culture of Org.
    5. Self Control by Employees
  2. CO-ORDINATION - Bringing together all activities of an organisation, this leads to the organisations effectiveness & achievement of its goals
2. Efficient production of goods & services
  1. MINIMIZE Wastage of Resources through LEAN production methods
    1. Inventory
    2. Waiting (idle time)
    3. Defective Units
    4. Effort
    5. Transportation
    6. Over-processing
    7. Over-production
  2. MAXIMIZE Asset Usage
3. Facilitating Innovation
  1. Reduce Costs
  2. Provide a basis for differentiation
  3. EXPLOITING CREATIVITY
    1. Flexible Structure
    2. Organisational Culture
    3. Leadership
    4. People
    5. Communication

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CHAPTER 1 The Different Purposes of Organisations

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