CHAPTER 1 The Different Purposes of Organisations

CHAPTER 1 The Different Purposes of Organisations

1. WHAT ?? IS AN ORGANISATION? Def: Buchanen & Huczynski

   • SOCIAL ARRANGEMENTS
     • Structure to allow people to work together towards a common goal. The Larger the org. the more formal the structure.
   • CONTROLLED PERFORMANCE
     • Systems & Procedures in place to ensure that the group goals are achieved. Sale Targets & Monitored performance.
   • COLLECTIVE GOALS
     • Organisations are defined by their goals. i.e. A school educates pupils...

2. WHY?? do we need organisations

   • "SHARE your SPECIAL POOL"
     • SHARE skills & knowledge
       • perform tasks otherwise unable to achieve on own accord
     • SPECIALISE
       • 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
     • POOL resources
       • Time or Money or Expertise
   • *** SYNERGY ***

3. TYPES OF ORGANISATIONS

   • PROFIT-SEEKING ORGANISATIONS Main objective is to maximize wealth of their owners
     • SO:LE TRADERS owned & run by 1 person. Fully Liable
     • PARTNERSHIPS owned & run by two or individuals. Fully Liable
     • LIMITED LIABILITY COMPANIES Company is a separate legal enitity, to its owners/shareholders. Owners liability is limited to their investement in the company.
       • PRIVATE LIMITED COMPANY
       • PUBLIC LIMITED COMPANY
   • NOT FOR PROFIT ORGANISATIONS Satisfy particular needs of its members, they are set up to benefit
     • Government Departments & Agnecies
     • Schools
     • Hospitals
     • Charities
     • Clubs
   • PUBLIC SECTOR ORGANISATIONS Basic government services & controlled by government
   • PRIVATE SECTOR ORGANISATIONS Run by private individuals & groups - non-governmental
   • Non-Governmental Organisations (NGO's)
     • Operational NGO
       • Achieve change directly through projects
     • Campaigning NGO
       • Achieve change indirectly through lobbying & PR programmes
   • 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.

4. MISSION, VISION & OBJECTIVES

   • MISSION - The organisations reason for being
     • non-quantifiable / no time constraints
     • Elements of a Mission
       • Purpose - WHY does the org. exist & WHO does it exist for
       • Strategy - WHAT does the org. provide & HOW is it provided
       • Policies & Culture - HOW does the org. expect staff to behave or act
       • Values - WHAT are the core principles of the org.
   • VISION - How the organisation sees itself in the future
   • OBJECTIVES
     • SMART
       • SPECIFIC
       • MEASURABLE
       • ACCURATE
       • RELEVANT
       • TIME-CONSTRAINED

5. CREATING VALUE FOR STAKEHOLDERS

   • Control & Co-ordination of resources to achieve goals & outcomes
     • CONTROLS - Increase possibility of org. achieving its goals
       • Direct Supervision
       • Planning Processes
       • Targets
       • Culture of Org.
       • Self Control by Employees
     • CO-ORDINATION - Bringing together all activities of an organisation, this leads to the organisations effectiveness & achievement of its goals
   • Efficient production of goods & services
     • MINIMIZE Wastage of Resources through LEAN production methods
       • Inventory
       • Waiting (idle time)
       • Defective Units
       • Effort
       • Transportation
       • Over-processing
       • Over-production
     • MAXIMIZE Asset Usage
   • Facilitating Innovation
     • Reduce Costs
     • Provide a basis for differentiation
     • EXPLOITING CREATIVITY
       • Flexible Structure
       • Organisational Culture
       • Leadership
       • People
       • Communication