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?