1. LARGE SCALE ORGANISATIONS Chapter 1

2. 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)

3. 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.

4. 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

5. 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.

6. Classifications of LSOs  Can you think of some further examples for the following industries:  Primary  Secondary  Tertiary  Quaternary  Quinary

7. 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 materials 2. Labour/Human resources 3. Capital/Financial resources 4. Knowledge/information resources

8. Management functions in LSO’s  Management functions: 1. Operations management (Production) 2. HR management (Personnel) 3. Financial management and admin 4. Marketing/sales management 5. Research & Development 6. Information technology

9. 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

10. 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

11. 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.

12. 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.

13. 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.

14. 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

15. KPIs  Non-Financial  Customer satisfaction  staff turnover  safety record  training records  quality.  How could each of these be measured?