Hey,
I was wondering if anyone could please correct these answers?
Thank you!
Chapter 4- Unit3- LSOS in Context -
1. Explain what distinguishes a large organisation from a small one.
A large scale organisation is consisted of more than 200 employees. They also have a substantial amount of assets and revenue.
2. Identify the different types of large organisation and their different objectives, and give real life examples of each.
There are a number of different types of large scale organsiations. One LSO, includes corporations. Corporations may be publicly or privately owned. They aim to make profit, through the delivery of goods and services. An example of a corporation is Mc Donalds.
Another type of LSO are government departments. They consist of three levels; local, state and federal. They aim to provide high quality services and make profit. An example of a department is the department of health.
Charities and foundations are non for profit organisations. They aim to provide goods or services in order to resolve social issues. An example of a foundation is Doncare.
3. Identify and describe five typical management functions that may exist in a large scale organisation.
There are a number of management functions that exist in large scale organisations. One management function is finance. This consists of subordinates being responsible for making decisions regarding the distribution of salaries and financial resources to employees. Operations is consisted of transforming raw materials into goods and services. Research and development involves organisations allocating money on investigating areas for organizational improvement such as introducing technology and other processes into the organisation. Marketing involves raising awareness about a product in the general community through advertising in order to promote sales in a product. Lastly, the human resource function involves managing employees. It is responsible for downsizing, hiring and promoting staff.
4. Describe two positive contributions of large organisations to the economy and society.
Large scale organisations contribute to the welfare of the economy and society in a number of ways. Large scale organisations provide employment indirectly and directly through the purchase of goods and services as it is a part of the production process. They also contribute to the development of infrastructure growth. The government is responsible for funding facilities such as transport, communication systems and water supplies to large scale organsiations. These systems may then be used by society and small organisations.
5. Describe two negative contributions of large organisations to the economy and society.
Large organisations may negatively impact society and the economy in a number of ways. One way is the diseconomies of scale. This means that if an organisation is too large or complex, it may result in management being unable to manage resources efficiently. This may negatively impact the environment as such inefficiency may result in climate change and pollution. In addition, Australias increasing trend to outsourcing jobs overseas may lead to high unemployment rates and a lack of money in Australia’s balance and payments account.
6. Identify and describe five macro environment factors and/ or pressures on an organisation.
The macro environment is the external environment of an organisation which consists of factors that are beyond the organisations control. There are number of macro factors that may influence the internal environment of an organisation. For instance, societies attitudes may influence business practice as organisations must comply with society’s needs and perceptions what is right and wrong. Organisations must reflect the values of society in their products and services in order to gain customer satisfaction. In addition, technological factors may also influence organisations. The rapid changes in technology may drive organizational change and allow for innovation. If organisations lack technology, then they may be at a competitive disadvantage, as technology promotes efficiently and effectiveness. The economic conditions of the external environment also impact LSO’s. Indicators such as consumer spending, interest rates and the value of the Australian dollar may affect sales, the level of unemployment and the difficulty of organisations borrowing money. Such factors may hinder organizational success. The legal and political conditions may also be an influence as organisations are obliged to reflect legislation in their policies, decisions and actions. The lack of certainty in legislation often enables for planning to be difficult is there is a lack of certainty. Lastly, organisations heavily rely on education and training. Organisations often need to hire staff with skills and knowledge in order to prevent spending money on training of staff. This is usually aided by educational institutions.
7. Identify and describe four operating environment factors and/or pressures on an organisation.
The operating environment is in the external environment of large scale organisations. Organisations may have little control over its factors. One factor are customers. Customer needs and satisfaction is critical to organizational success. In addition, competitors may also provide a benchmark for best practice in order to allow organisations to modify their operations in order to become more efficient and effective. Special interest groups such as trade unions and special issue groups may also exert pressure on the operating environment in many industries. Lastly, suppliers may be required by a business in order to supply raw materials or carry out tasks.
8. Identify and describe two internal environmental factors and / or pressures on an organisation.
An organisation has full control over the internal environment. One factor are employees. Management is able to hire and downsize the organisation when needed. Another factor are the policies. Management is able to establish a broad frame work which guides the decisions and actions of employees.
9. Explain different ways in which organizational performance can be evaluated
Organisational performance may be evaluated using Key performance indicators in terms of efficiency and effectiveness. Efficiency involves the organisation minimizing its resources such as money and time in order to achieve objectives. It also involves producing goods or services at a low cost without compromising its quality. Yet, Effectiveness involves the ability of an organisation to set objectives and strategies to the extent where it is able to achieve the desired outcome.
10. Identify a list of key performance indicators for the following areas of company interest; safety, training, profitability, employee morale, customer satisfaction.
A key performance indicator is a measurable and precise way of measuring organisational success against objectives. In order to measure areas of safety, an organisation may measure the amount of accidents or injuries exhibited within in the organisation. In addition, an organisaiton would measure training in terms of the lack of knowledge or skills shown in an employee or customer complaints. To measure profitability and organisation would use financial KPI’s such as the level of sales or profit or loss. In order to measure employee morale, the organisation would measure the level of staff turnover or absent seem. Measuring customer satisfaction would involve measuring the level of sales or customer complaints.
11. Identify three different stakeholders who will have an interest in organizational operations. Describe the interests each of these groups has in the organisation and how these interests could possibly conflict with each other
There are a number of stakeholders in operations which may mean that their interests may conflict. Suppliers have an interest with the ongoing relationship with management and ensuring that they are being paid in a timely manner. Management has an interest in gaining a salary for their managerial work. Yet, if management does not pay the suppliers on time or does not treat them ethically, then it may result in delays in raw materials and low quality goods. This may then impact on the customers who have an interest in organisational success as they want to receive products or services at an acceptable price and quality.
12. Provide examples of different large scale organisations which have been affected by factors from their macro and operating environments.
Large scale organisations often have to reflect societies needs and attitudes within the goods and services they make. A recent change in societies attitudes has been to have a healthy life style. This has resulted in organisations such as Mc Donalds to alter their menus in order to meet consumer needs. Mc Donalds now promotes a healthy life style through their new menu consisting of salads and healthy alternatives.
The economies of scale involves organisations paying low costs of input for large amounts of output. This is exemplified in organisations such as the Reject Shop as they are able to purchase a substantial amount of goods for a low price due to their large scale. This in turn allows them to sell their products at a cheap price, meeting customer needs and demands.
Define the following terms:
Mission statement: A mission statement is consisted of small objectives which outline the overall purpose of the organisation and how they will achieve their objective.
Key Performance Indicator: A Key Performance Indicator (KPI) provides a measureable and precise way of measuring organisational performance against objectives. This may consist of financial (quantitative) and non financial (qualitative) indicators.
Benchmarking: Benchmarking is a type of KPI that involves organisations measuring their performance with organisations of best practice in order to determine their efficiency and effectiveness.
Market share: The percentages of sales an organisation has in its industry
Staff turnover: The level of staff leaving the organisation.
Home
Help
Search
Login
