Chapter1

Question 1

Define organisation.

Answer 1

Two or more people working together to achieve an objective.

Question 2

Define large scale organisation.

Answer 2

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

Question 3

Define corporation.

Answer 3

Owned by shareholders and aims to make a profit.

Question 4

Define shareholder.

Answer 4

Any person who owns shares in a company.

Question 5

Define government business enterprise.

Answer 5

And organisation that is owned and operated by the government.

Question 6

Define objective.

Answer 6

Is a desired goal, outcome or specific result that an organisation intends to achieve in a certain amount of time.

Question 7

Define vision statement.

Answer 7

A vision statement states what the organisation aspires to become.

Question 8

Define mission statement.

Answer 8

Expresses why an organisation exists, it’s purpose and how it will operate.

Question 9

Define strategies.

Answer 9

The actions that an organisation takes to achieve specific objectives.

Question 10

Define gross domestic product.

Answer 10

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

Question 11

Define research and development.

Answer 11

Refers to activities undertaken to improve existing products and create new products.

Question 12

Define downsizing.

Answer 12

Involves workplace staff reductions, with the elimination of jobs and positions.

Question 13

Define outsourcing.

Answer 13

Is the contracting of some organisational operations to outside suppliers.

Question 14

Define internal environment.

Answer 14

Includes all those things over which the organisation has some degree of control. These factors are:employees
resources
corporate culture
policies
procedure and management
style

Question 15

Define external environment.

Answer 15

Includes those things over which the business has little control. It may be divided into an operating environment and a macro environment.

Question 16

Define operating environment.

Answer 16

Refers to the outside factors with which the organisation directly interacts in the course of conducting its business.

Question 17

Define customers.

Answer 17

The buyers or users of the products of a large scale organisation.

Question 18

Define competitors.

Answer 18

Are the organisations that offer rival products or services.

Question 19

Define macro environment.

Answer 19

Made up of the broad factors in the economy and society within which the organisation operates.

Question 20

Define globalisation.

Answer 20

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 21

Define performance indicators.

Answer 21

Specific criteria used to measure the efficiency and effectiveness of the organisations performance.

Question 22

Define customer survey.

Answer 22

Measures how satisfied customers are with the organisations performance.

Question 23

Define staff survey.

Answer 23

Measures how satisfied staff are within the organisation.

Question 24

Define staff turnover.

Answer 24

Measure the number of staff who are leaving the organisation

Question 25

Define customer complaints.

Answer 25

Indicate whether or not customers are satisfied with the performance of the organisation.

Question 26

Define level of wastage.

Answer 26

Measures the amount of wast created by the production process.

Question 27

Define stakeholders.

Answer 27

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

Question 28

Define social responsibility.

Answer 28

The obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well ask the environment.

Question 29

Define ethical management.

Answer 29

Refers to the process of abiding by moral standards and doing the 'right' thing in the interests of all stakeholders.

Question 30

Define triple bottom line.

Answer 30

Refers to the economic, social and environmental performance of an organisation.

Question 31

What contributes to the unique nature of a large scale organisation?

Answer 31

Have a great deal of political power. Sometimes they have more influence on the common than the government. Produce goods and services in bulk at low costs. Have the financial means to pay for the required technology and huge staff needed to produce the good or service.

Question 32

What are the different variations in large scale organisations?

Answer 32

Corporations:public companies private companies Government Business Enterprise Not for profit organisations:foundations charities

Question 33

Define corporation?

Answer 33

An organisation owned by shareholders that aims to make a profit.

Question 34

Define private companies?

Answer 34

Aren't listed on the ASX and have restrictions on who can buy their shares. Can have one shareholder but no more than 50, are often family companies.

Question 35

Define public companies?

Answer 35

Members of the public can buy or sell shares in public companies and public companies can have millions of shareholders.

Question 36

Define not for profit organisations.

Answer 36

Aim to provide goods, services or funds to prevent particular social problems or to continue their work for the benefit of the community. Don't generate business by selling products or services with the specific purpose of making a profit.

Question 37

Objectives of an organisation other than profit.

Answer 37

Customer service Community involvement Environment Concern for employees

Question 38

Positive contributions large scale organisations have on the economy.

Answer 38

Able to produce a huge amount of a wide range of goods and services. This is measured by gross domestic product(GDP).

Question 39

Negative contribution large scale organisations have on the economy.

Answer 39

Some large scale organisations attract criticism when they lay off workers in an attempt to reduce costs and improve productivity.

Question 40

What contribution to large scale organisations have on employment?

Answer 40

Employ large numbers of people. Provide jobs for 2.9 million. The wealth generated creates higher standards of living. In an economic climate where there are lower levels of unemployment and rising unemployment and rising incomes, people tend to spend more, which increase the overall level of spending in the economy.

Question 41

What contribution to exports do large scale organisations have?

Answer 41

Exporting products overseas contributes to Australia's balance of payments. Australian exporting industries have become more competitive in globals markets. Exporting products creates jobs, boosts income and improves living standards.

Question 42

What contribution do large scale organisations have on research and development?

Answer 42

Undertaken in order to improve our knowledge and then be used by businesses to improve existing products or create new ones. Finding new ways to do things results in improved efficiency and increases productivity.

Question 43

What contribution do large scale organisations have on infrastructure growth?

Answer 43

Refers to installations such as roads, railways, communications systems, education, health facilities and utility supplies. The extent and quality of the infrastructure is crucial to the performance of the economy because it assists in economic growth.

Question 44

What effect can outsourcing have on an organisation?

Answer 44

Often causes bad publicity for an organisation because it may result in job losses. Means that some part of an organisation function is transferred to and external person or organisation. Believe it can bring positive benefits such as cost savings, improvements to quality and access to operational expertise.

Question 45

How can damage to the environment effect businesses?

Answer 45

Can have an impact on the economy, especially when it comes to the costs of repair in or cleaning up the damage. Human activities such as agriculture, manufacturing, power generation and transportation contribute to greenhouse gas concentration.

Question 46

Define net profit.

Answer 46

The difference between revenue and profit.

Question 47

Define number of sales.

Answer 47

Measures the number of products sold with in a started timeframe.

Question 48

Define percentage of market share.

Answer 48

The proportion of total market that a business has expressed as a percentage.

Question 49

Define rate of productivity.

Answer 49

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

Question 50

Define number of sales.

Answer 50

Measures the number of products sold.

Question 51

Define employee satisfaction.

Answer 51

As measured by staff absenteeism levels.

Question 52

Define customer satisfaction.

Answer 52

Measured by the number of return customers. If the number of customers returning is increasing/decreasing this would indicate if the customers are satisfied with the organisation.

Question 53

Define shareholders as a stakeholder.

Answer 53

Are partial owners of an organisation. | Want the organisation that they have invested in to be profitable as they receive a proportion of the profits.

Question 53

Define management.

Answer 53

Responsibility of running a profitable or successful organisation. Managers today understand that ethical and socially responsible activities should lead to increased sales.

Question 54

Define Union.

Answer 54

Represent employees in workplaces. Attempt to negotiate favourable pay and work wondering on the employees bahlf. Work to prevent anything that diminishes employee rights, safety or conditions.