3. VARIATIONS IN TYPES OF LSOs

Question 1

Variations in Types of LSOs intro?

Answer 1

•	Large organisations can be classified into three main types, each with different objectives.
i) 	Corporations (or companies)
ii)	Government departments
iii) 	Charities and foundations
•	Consider Variations in terms of:

> OWNERSHIP
(Owned and operated by whom?)

> ORIENTATION OR FOCUS
(Profit-attain market share and growth)
Non-Profit-provide service)

> TYPE OF BUSINESS ACTIVITY
(Categorised into Sector/Industry)

Question 2

Coperations?

Answer 2

 Corporations (or companies)
> through manufacture of goods, trading of goods or through services, AIM to make a profit.

• Private: 50 shareholders
• Public: Numerous Shareholders
• Government Owned- government business enterprises

Question 3

Government departments?

Answer 3

> AIM to provide a high level of service within a specified field.
Implement social/political objectives of the government
Operate within a scope of activity and with a budget

Question 4

Charities and foundations

Answer 4

> Referred to as NGOs

>AIM to provide goods, services or funds for alleviation of specific social problems

Question 5

Part 2: Objectives and Strategy?

Answer 5

• Objectives are the aims or goals of the organisation. They are fundamental to its reason for operation.
• All organisations must establish aims or objectives, and then determine strategies or actions to achieve these aims.
• Objectives are statements of desired achievement that provide direction for actions.

The objectives must be:
•	Specific (S).
•	Measureable (M).
•	Achievable/attainable (A).
•	Relevant (R).
•	Time-bound (T).
>>SMART principle ensures clarity of the objective being set.

Question 6

Part 2: Objectives and Strategy

Hierarchy of Objectives?

Answer 6

1. Strategic Objectives (corporate).
   • Stem from vision and mission statements.

o Vision: A broad statement that describes a companies’ direction and outlook.

o Mission: A written statement that sets out who the organisation is, what they exist for and how they will achieve their objectives.

2. Tactical Objectives (department):
   Department objectives established by the manager to achieve LTgoals
3. Operational Objectives.
   (day to day, low level manager)

Question 7

Part 2: Objectives and Strategy

Types of Objectives?

Answer 7

Financial Objectives
• the desired financial performance of an organization.
• Include areas such as profit maximization, sales growth and improving market sales
 increase profits by a stated percentage, to reduce production costs

Service Objectives
• organization desire to provide a stated service
 to meet the needs of our customers.

Ethical and Social Responsibility Objectives
• Social objectives relate to an organizations role and participation in the community
 to promote equity in the workplace

Environmental Objectives
• Relate to an organisation’s minimization of resource use and the environmental effects

• The Task of management is to achieve the objectives of an organisation. To do this, management must plan strategies.

Question 8

Part 2: Objectives and Strategy

Strategy?

Tactics?

Answer 8

Strategy – Strategy is a long term plan (3-5 years) about how the organization is going to achieve its objectives. (eg. Introduce appraisal system, conduct job analysis, and review recruitment and selection process).

Tactics – The day to day measures the organization puts in place as part of its overall strategy (eg. Train managers, create team to review processes, draw up a timeline for meetings).