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1

Organisation

is a social arrangement which pursues collective goals and controls it's own performance.

Buchanan and Hucyznski

2

Why do we need organisations

share skills and knowledge
Specialise
Pool resources
Synergy

3

Profit seeking organisations objectives

Primary objective is to maximise owner wealth

Secondary objective(s) detailed objectives as to how to maximise owner wealth

4

NFP orientated organisations objectives

Primary objective is to maximise benefit to beneficiaries

Secondary objective(s) are
Economy
Efficiency
Effectiveness

5

NFPs include

government departments and agencies
Schools
Hospitals
Charities
Clubs

6

Public Sector

owned and or run by the government

7

Private sector

anything not public

8

Limited Liability

Shareholders liability is limited, business is a separate legal entity

9

Multinational company

operate in more than one country and spread risk
often large companies

10

Public sector organisations

Police
Military
public transport
primary education
healthcare for the poor

11

Non governmental organisations NGOs

Humanitarian
Oxfam
Red Cross
World Vision
Amnesty International

12

Operational NGOs

seek to achieve change through projects i.e. Oxfam

13

Campaigning NGOs

seek to achieve change through lobbying and PR i.e. amnesty international

14

Cooperatives

organisations owned and democratically controlled by its members

15

Mission

Organisations reason for being

In line with values and expectations of stakeholders

16

4 elements of an effective mission statement

Purpose
Strategy
Policy and behavior standards
Values

17

Vision

How the organisation is seen in the future

Aspirational, vague and timeless

18

Objectives

Come from mission statement

19

SMART Objectives

Specific
Measurable
Achievable
Relevant
Time related

20

Primary objective

corporate objective
i.e. double revenue and profit

21

Secondary objectives

when combined they ensure the achievement of the primary objective
i.e. reduce cogs, increase sales

22

Stakeholder

anyone who has anything to do with an organisation

23

creating value for stakeholders

control and coordination of resources
efficient production of goods and services
facilitating inovation

24

Controls

direct supervision of staff
planning
targets
culture

25

Efficient production of goods and services

Lean production

26

Lean Production includes

reduce waste by minimising;
inventory
waiting (idle time)
defective units
effort
transportation
over processing
over production