Chapter 1 - Large Scale Organisations In Context

Question 1

Large Scale Organisation

Answer 1

employs 200 or more people, earns revenue in the millions, or has assets of more than $200 million

Question 2

Multinational Coporation

Answer 2

is owned and based in one country and operates in many countries throughout the world

Question 3

Corporation or Company

Answer 3

is owned by shareholders and aims to make a profit

Question 4

Shareholder

Answer 4

is any person who owns shares in a company

Question 5

Government Business Enterprise

Answer 5

a corporation which is government owned and operated

Question 6

Government Department

Answer 6

Government Departments exist at all 3 levels of government (federal,state,and local). They provide essential community services, such as health,education and welfare. EG: The department of Education

Question 7

Organisation

Answer 7

two or more people working together to achieve an objective

Question 8

Board of Directors

Answer 8

a group of individuals that are elected as, or elected to act as, representatives of the shareholders to establish corporate management related policies and to make decisions on major company issues

Question 9

Managing Director

Answer 9

describes the position of the most senior corporate officer, executive, or administrator in charge of managing a non-profit or for-profit organisation

Question 10

Not-for-profit Organisation

Answer 10

their main purpose is to provide goods, services or funds to prevent a particular social situation or to continue their work for the benefit of the community

Question 11

Exports

Answer 11

Exports are goods or services that are sold to another country. These are usually goods that a country produces more of than it needs. These products are sold to make money. Australia’s main exports are agricultural (products from the land) and mining products

Question 12

Imports

Answer 12

A good or service brought into one country from another

Question 13

Balance of Payments (BOP)

Answer 13

a record of a country’s trade and financial transactions with the rest of the world

Question 14

Invention

Answer 14

the development of something new

Question 15

Innovation

Answer 15

occurs when something already established is improved upon

Question 16

Infrastructure

Answer 16

refers to highways, railways, airports, communications systems, education and health facilities, water, gas and electricity supplies

Question 17

Globalisation

Answer 17

is the effect of hi-tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into
a single market, producing a more integrated global economic system

Question 18

Unions

Answer 18

Represent employees in many workplaces in Australia. They attempt to negotiate favourable pay and work conditions on the employee’s’ behalf

Question 19

Conflict of Interest

Answer 19

When a person takes advantage of a situation or piece of information for his or her own gain rather than for the employee’s interests

Question 20

Objective

Answer 20

a desired goal, outcome or specific result that an organisation intends to achieve

Question 21

Vision Statement

Answer 21

states what the organisation aspires to become

Question 22

Mission Statement

Answer 22

expresses why an organisation exists, its purpose and how it will operate

Question 23

Strategies

Answer 23

the actions that an organisation takes to achieve specific objectives

Question 24

Economic Growth as measured by GDP

Answer 24

refers to the total monetary value of all goods and services produced in a country over one year

Question 25

Research and Development

Answer 25

refers to activities undertaken to: improve existing products create new products

Question 26

Downsizing

Answer 26

involves workplace staff reductions, with the elimination of jobs and positions

Question 27

Outsourcing

Answer 27

Outsourcing means that some part of an organisation’s function is transferred to an external person or organisation

Question 28

Internal Environment

Answer 28

sometimes called the micro environment, refers to conditions inside the organisation that affect its performance, such as manage- ment policies and processes. It includes anything the organisation has some degree of control over

Question 29

External Environment

Answer 29

refers to conditions outside the organisation and includes those things it has little control over. The external environment is made up of the macro environment and the operating environment

Question 30

Operating Environment

Answer 30

refers to the outside factors with which the organisation directly interacts in the course of conducting its business e.g. customers, suppliers, competitors, lobby groups

Question 31

Customers

Answer 31

are the buyers or users of the products of a large-scale organisation

Question 32

Suppliers

Answer 32

are the people and businesses that supply resources to an organisation, so that it can conduct its operations

Question 33

Competitors

Answer 33

are other organisations that offer rival products or services

Question 34

Lobby Groups

Answer 34

are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies

Question 35

Macro Environment

Answer 35

is made up of the broad factors in the economy and society within which the organisation operates

Question 36

Effectiveness

Answer 36

is the degree to which an organisation has achieved its stated objectives

Question 37

Efficiency

Answer 37

efers to how well an organisation uses resources to achieve objectives

Question 38

Performance Indicators

Answer 38

are specific criteria used to measure the efficiency and effectiveness of the organisation’s performance

Question 39

Net Profit

Answer 39

is what remains when expenses are deducted from the revenue earned

Question 40

Percentage of Market Share

Answer 40

is the proportion of the total market that a business has, expressed as a percentage

Question 41

Rate of Productivity

Answer 41

measures the change in productivity in one year compared to the previous year

Question 42

Customer Survey

Answer 42

measures how satisfied customers are with the organisation’s performance

Question 43

Staff Survey

Answer 43

measures how satisfied staff are within the organisation

Question 44

Staff Turnover

Answer 44

measures the number of staff who are leaving the organisation

Question 45

Level of Wastage

Answer 45

measures the amount of waste created by the production process

Question 46

Benchmarking

Answer 46

measuring a business' performance against that of other leading organisations known for their excellence

Question 47

Stakeholders

Answer 47

are groups and individuals who interact with the organisation and have an interest in its activities

Question 48

Corporate Social Responsibility

Answer 48

the obligations a business has to act ethically towards all stakeholders e.g. the responsibility for the wellbeing of employees, customers, shareholders and the community as well as the environment

Question 49

Triple Bottom Line

Answer 49

refers to the economic, social and environmental performance of an organisation