1: The business organisation (Part 1)

The nature of organisation
Organisations
-what are they
-why do we need them
-different types

1.1 What is an organisations?
-Organisations are social arrangements for the controlled performance of collective goals.
-group or instituition arranged for efficient work.
-process to acheivethe stated objectives

The key aspect :
a)Collective goals
- goals must be Specific, Measureable, Attainable, Realistic, Timely.
b)Social arrangements
-a structure to enable people to work together with different role towards the common goals
c)Controlled performance
-systems and procedures to ensure that goals are achieved
d)Boundaries
-seperate internal environment with the external environment

1.2 Why do we need organisations?
-Organisations can achieve results that cannot be produced by individuals on their own.
Organisation enable people to :
• Share skills and knowledge
• Specialise
• Pool resourse
Reason why organisations exist :
-they satisfy social needs
-more effiecient at fulfilling needs than individual. In particular ,
• Save time
• Pool knowledge (share knowledge and skills)
• Power centres(influence demand,win orders and create wealth)

1.3 Classifying organisations by profit orientation
a.) Profit-seeking organisations
-Organisations that maximising the wealth of their owners.
• To continue in existence
• To maintain growth and development
• To make a profit
b.) Not for profit organisations (NFPs)
-do not see profitability but to satisfy particular needs of their members
Eg. Charity,school
-Mutual organisation : organisation with no shareholder. Establish by group of people to provide a range of services that serve interest of their member.
• Some building societies ( to pull saving together to build their own home)
• Trade unions(to protect theright of employee)
• Some working-men’s clubs

1.4 Classifying organisations by ownership/control
a.) public sector organisations
-providing basic government services and is thus controlled by government organisations.
Eg. Police,military,public roads,public transit, primary education,healthcare for poor.
b.) Private sector organisations
-part of nation’s economy that is not controlled by the government.
Eg. Businesses(profit-seeking),charities(NFPs),clubs
c.) Co-operatives
-an autonomous association of person united voluntarily to meet their common economic,social and cultural needs and aspiration through a jointly owned and democratically controlled enterprise.
-they are not owned by investor ,not to accumulate capital for investor.

2. The roles and functions of the main departments in a business organisation

2.1 The main function within an organisation

Research and development
Role:
- Improving existing products
- Developing new products
Key concerns:
- Anticipating custimer needs
- Generating new ideas
- Testing
- Cost

Purchasing
Role:
- Acquiring the goods and services necessary for the business
Key concerns:
- Price and payment terms
- Quality
- Delivery schedules

Production
Role:
- converting raw materials into finished goods
Key concerns:
- Quality
- Costs
- Wastage
- Productiong schedules

Direct service provision
Role:
- Providing services to clients
Key concerns:
- Quality
_ Time sheets

Marketing
Roles:
- Identifying customer needs
- Market research
- Product design
- Pricing
- Promotion
- Distribution
Key concerns:
- Customer needs
- Quality
- Promotional strategy
- Distribution channel strategy
- Pricing strategy

Administration- Administration support
- Processing transaction
Key concerns:
- Efficiency
- Information processing

Finance
Role:
- Bookkeeping
- Financial reporting
- Financial controls
- Budgetting
- The raising of capital
Key concerns:
- Accurracy and completeness of record keeping
- Monthly management reporting
- Annual financial repoting

Human resources
Role:
- Job analysis and job design
- Recruitment and selection
- Performance appraisal
- Rewards
- Training and development
- Grievances and discipline
Key concerns:
- Staff competence
- Staff commitment
- Cost
- Staff welfare
- Compliance

2.2 Co-ordination

- the regulation of diversed elements into an intergrated and harmonious operation.

mechanisms of co-ordination:
- budget-setting process
- regular planning meetings between the managers
- effective and regular communication between departments
- clear, well-documented reporting lines
- supervision

ways to achieve
- standardised work processes
- standardised outputs
- standardised skills and knowledge
- direct supervision
- mutual adjustment