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LARGE SCALE ORGANISATIONS

LARGE SCALE ORGANISATIONS. Chapter 1. Characteristics of LSOs. Number of employees >200 Total Assets >$200 million Annual Sales Revenue – in the millions Extent of operations – transnational (but can be interstate only). Types of LSOs.

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LARGE SCALE ORGANISATIONS

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  1. LARGE SCALE ORGANISATIONS Chapter 1

  2. Characteristics of LSOs • Number of employees >200 • Total Assets >$200 million • Annual Sales Revenue – in the millions • Extent of operations – transnational (but can be interstate only)

  3. Types of LSOs • Corporations – can have private shareholders or be listed on the stock exchange. • Govt. Business Enterprises – Owned by Govt and sometimes shareholders to provide a service but also make a profit eg. Aust Post, Medicare • Govt Depts – provide service, no profit eg. Taxation office, Centrelink, Defence • Charities/Foundations – provide assistance to those in need. Eg Salvos.

  4. Types of LSO’s • Can you think of some more examples for each of these classifications: • Corporations • Public Companies • Private Companies • GBE’s • Govt Depts • Charities/Foundations

  5. Classifications of LSOs • Primary – draw directly from nature • Secondary – transform raw materials into goods. • Tertiary – sell the goods, provide a service. • Quaternary – provision of information eg. Newspapers, banks, education, postal services • Quinary – provision of paid and voluntary domestic services. Eg. Hotels, child care, restaurants etc.

  6. Classifications of LSOs • Can you think of some further examples for the following industries: • Primary • Secondary • Tertiary • Quaternary • Quinary

  7. Management functions in LSO’s • Manager’s job is to plan and co-ordinate resources and activities of an organisation to ensure that it achieves the goals and objectives defined by the board of directors. • Four main economic resources: • Land/physical resources: equipment, raw materials • Labour/Human resources • Capital/Financial resources • Knowledge/information resources

  8. Management functions in LSO’s • Management functions: • Operations management (Production) • HR management (Personnel) • Financial management and admin • Marketing/sales management • Research & Development • Information technology

  9. Economic Contribution of LSOs • Provision of employment and income for Australians • Economies of scale –incur lower costs per unit of output because they are big. Government benefits/concessions • Invest in and improve Australia’s industrial base – factories, machinery, etc. • R&D – innovation, new products, best practice • Export Earnings – bringing in $$ from overseas. • Support the community and the disadvantaged

  10. Negative Effects of LSOs Heartless, self-seeking organisations (too big and don’t care or too big to manage themselves effectively) Best employees/managers taken from Australia Take jobs off-shore creating unemployment in Australia Profits generated in Australia leave the country. Create Balance of Payments problems for Australia Australia exposed to the impact of overseas problems Monopolies “killing small business” and ripping-off consumers

  11. Operating environments of LSOs • Internal – People, resources, processes, culture, policy. • Operating – Customers, suppliers, employees, competitors, creditors. • Macro – Economic, social, technological, political, environmental, Legal. Apply each of these environments to a LSO of your choice.

  12. Stakeholders in LSO’s • A person or group with an interest or stake in how a business operates. Includes: • Employees • Unions • Shareholders • Owners • Managers • customers, etc.

  13. Measuring organisational performance • Efficiency : the best use of resources (time, money, labour) of an organisation to achieve organisational objectives. • Productivity: a quantitative measure of the relationship between resource inputs and outputs; a way to measure efficiency of the business. (More output for the same level of resources) • Effectiveness: the extent to which the organisation chooses appropriate objectives and achieves these objectives.

  14. KPIs • Specific criteria used to measure effectiveness and efficiency. Can be qualitative or quantitative. Can be financial and non-financial. • Financial: • Profit • Return on Investment (shareholders) • Cost Control • Return on assets

  15. KPIs • Non-Financial • Customer satisfaction • staff turnover • safety record • training records • quality. • How could each of these be measured?

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