LARGE SCALE ORGANISATIONS
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Transcript of 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
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.
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
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.
Classifications of LSOs
Can you think of some further examples for the following industries:
Primary Secondary Tertiary Quaternary Quinary
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:1. Land/physical resources: equipment, raw
materials2. Labour/Human resources3. Capital/Financial resources4. Knowledge/information resources
Management functions in LSO’s Management functions:1. Operations management (Production)2. HR management (Personnel)3. Financial management and admin4. Marketing/sales management5. Research & Development6. Information technology
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
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
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.
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.
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.
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
KPIs Non-Financial Customer satisfaction staff turnover safety record training records quality.
How could each of these be measured?