1. © Cambridge University Press 2012 LARGE SCALE ORGANISATIONS IN CONTEXT AREA OF STUDY 1 UNIT 3 CORPORATE MANAGEMENT CHAPTER 1 LARGE SCALE ORGANISATIONS

2. © Cambridge University Press 2012 What is an organisation? Organisations occur in every part of our lives, both socially and in our business or work life. Organisations are a deliberate arrangement of people working to achieve a specific purpose or set of goals.

3. © Cambridge University Press 2012 What is an organisation? (cont.) Organisations enable us to achieve more through a team environment.

4. © Cambridge University Press 2012 Why are organisations needed? They provide continuity of knowledge and experience and help us to manage complex social and technological change. Employment and career opportunities can result from being part of an organisation.

5. © Cambridge University Press 2012 What do all organisations have in common? Organisations have common characteristics: distinct purpose or goal(s), comprised of two or more people, and adopt a distinct form of structure.

6. © Cambridge University Press 2012 What do all organisations have in common? Common criteria for classifying an organisation as large are: number of employees (more than 200) substantial total assets

7. © Cambridge University Press 2012 What do all organisations have in common? substantial total revenue substantial profits dominant market share large-sized operations business locations – generally multiple.

8. © Cambridge University Press 2012 What do all organisations have in common? General characteristics of a large-scale organisation: Strategic objectives are formulated. Strategic planning is undertaken. Formalised policies, procedures and rules are adopted and documented. Organisational structure is devised.

9. © Cambridge University Press 2012 What do all organisations have in common? (cont.) A chain of command and hierarchical management structure is established. A coordinated and decentralised approach to decision making is adopted. Specialisation of activities into departments or within departments occurs.

10. © Cambridge University Press 2012 Large-scale organisations in Australia Many Australian large-scale organisations operate as multinational corporations with their business activities occurring in more than one country.

11. © Cambridge University Press 2012 Large-scale organisations in Australia (cont.) Organisations often enter into joint ventures, merge together, demerge, are taken over in a hostile manner, or are acquired by another organisation. Some may choose to downsize their operations or outsource their non-core activities.

12. © Cambridge University Press 2012 Large-scale organisations in Australia (cont.) A dual-listed company is created when a company, usually as the result of a merger, applies to have two independent listings (separate shareholders) on two stock exchanges.

13. © Cambridge University Press 2012 Different types of large-scale organisations There are many ways in which large-scale organisations can be differentiated: Ownership – government business enterprises (GBEs), government departments and statutory authorities that form the basis of the public sector, or private business organisations that form the basis of the private sector

14. © Cambridge University Press 2012 Different types of large-scale organisations (cont.) Orientation or focus – either as a for-profit or not-for-profit organisation Type of business activity – to which industry classification and level they belong.

15. © Cambridge University Press 2012 Organisational objectives and strategies All organisations must set objectives. The objectives set will depend on the nature of the business activity being undertaken.

16. © Cambridge University Press 2012 Organisational objectives and strategies (cont.) A hierarchy of objectives needs to be established, commencing with the mission statement (common purpose) down to the individual objectives of employees. This process is referred to as Management by Objectives.

17. © Cambridge University Press 2012 Organisational objectives and strategies (cont.) The SMART principle is used to ensure that objectives being set are specific, measurable, achievable, relevant and time-bound.

18. © Cambridge University Press 2012 Organisational objectives and strategies (cont.) Objectives may cover the areas of: financial, service, ethical and social responsibility, and environment.

19. © Cambridge University Press 2012 Organisational objectives and strategies (cont.) Plans (strategic, tactical and operational) need to be put in place at each level of the organisation to assist in achieving the objectives.

20. © Cambridge University Press 2012 Typical management functions Management undertakes the key roles of planning, organising, leading and controlling to assist the organisation to achieve these objectives.

21. © Cambridge University Press 2012 Typical management functional areas Typical management functional areas in large-scale organisations include operations, finance, human resources, marketing and research and development.

22. © Cambridge University Press 2012 Typical management functional areas (cont.) Large-scale organisations contribute either positively or negatively to our economy through: gross domestic product (GDP), employment, balance of payment (exports/imports), research and development, and infrastructure growth.