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

© Cambridge University Press 2012

LARGE SCALE ORGANISATIONS IN CONTEXT

AREA OF STUDY 1

UNIT 3CORPORATE MANAGEMENT

CHAPTER 1LARGE SCALE ORGANISATIONS


What is an organisation?

Organisations occur in every part of ourlives, both socially and in our business or worklife. Organisations are a deliberate arrangementof people working to achieve a specific purposeor set of goals.


What is an organisation? (cont.)

Organisations enableus to achieve morethrough a teamenvironment.


Why are organisations needed?

They provide continuity of knowledge andexperience and help us to manage complexsocial and technological change. Employmentand career opportunities can result from beingpart of an organisation.


What do all organisations have in common?

Organisations have common characteristics:distinct purpose or goal(s), comprised of twoor more people, and adopt a distinct form ofstructure.



Common criteria for classifying an organisationas large are:• number of employees (more than 200)• substantial total assets



• substantial total revenue• substantial profits• dominant market share• large-sized operations• business locations – generally

multiple.



General characteristics of a large-scaleorganisation:• Strategic objectives are formulated.• Strategic planning is undertaken.• Formalised policies, procedures and rules are

adopted and documented.• Organisational structure is devised.


What do all organisations have in common? (cont.)

• A chain of command and hierarchical management structure is established.

• A coordinated and decentralised approachto decision making is adopted.

• Specialisation of activities into departmentsor within departments occurs.


Large-scale organisations in Australia

Many Australian large-scale organisationsoperate as multinational corporations withtheir business activities occurring in more thanone country.


Large-scale organisations in Australia (cont.)

Organisations often enter into joint ventures,merge together, demerge, are taken over ina hostile manner, or are acquired by anotherorganisation. Some may choose to downsizetheir operations or outsource their non-coreactivities.


Large-scale organisations in Australia (cont.)

A dual-listed company is created when acompany, usually as the result of a merger,applies to have two independent listings(separate shareholders) on two stockexchanges.


Different types of large-scale organisations

There are many ways in which large-scaleorganisations 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


Different types of large-scale organisations (cont.)

• Orientation or focus – either as a for-profit ornot-for-profit organisation

• Type of business activity – to which industryclassification and level they belong.


Organisational objectives and strategies

All organisations mustset objectives. Theobjectives set willdepend on the natureof the business activitybeing undertaken.


Organisational objectives and strategies (cont.)

A hierarchy of objectives needs to beestablished, commencing with the missionstatement (common purpose) down to theindividual objectives of employees. This processis referred to as Management by Objectives.



The SMART principle is used to ensure thatobjectives being set are specific, measurable,achievable, relevant and time-bound.



Objectives may coverthe areas of: financial,service, ethical andsocial responsibility,and environment.



Plans (strategic, tactical and operational) needto be put in place at each level of theorganisation to assist in achieving theobjectives.


Typical management functionsManagement undertakes the key roles ofplanning, organising, leading and controllingto assist the organisation to achieve theseobjectives.


Typical management functional areas Typical management functional areas inlarge-scale organisations include operations,finance, human resources, marketing andresearch and development.


Typical management functional areas (cont.)

Large-scale organisations contribute eitherpositively or negatively to our economythrough:• gross domestic product (GDP), employment,• balance of payment (exports/imports), research• and development, and infrastructure growth.

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