Nature of an Organisation
What is an organisation
The planned co-ordination
o structures of people
deliberately planned and created
Aim
o The achievement of a common goal
Through co-operartive actions
Method
o Division of labor and function
o A hierarchy of authority and responsibility
Common factors in organisations
People
o Interacting
Structure
o coordination of people
o deliberately planned
Objectives
o basis for organising
Management
o Directs
o Controls behaviour
Factors interacting
Interactions and efforts of PEOPLE
In order to achieve OBJECTIVES
Channelled and co-ordinated through a STRUCTURE that is
Directed and controlled by MANAGEMENT
,Components of an organisation
Operating component
Provide or produce goods or services
Core
o Direct performance
How effectively you provided or produced the goods or
services
Support
o Helps the core
Quality control
Work process
Administrative component
Supervise and/or coordinate
Organisational support
o Services
o Examples
HR
Catering
Top management
o Strategy
o Policy
o Direction
Middle management
o Links the components
,Types of organisations
How to classify
According to their major purpose
o But can have multiple purposes and goals
According to their primary beneficiary?
o But multiple beneficiaries
According to their primary activity?
o But very different sets of activities
Private vs Public organisations
Differences
o Ownership
o Source of capital
o Profit motive
What about Social enterprise organisations?
Private organisations
Various legal forms of private organisations
Owned and financed by
o Individuals
o Partners
o Shareholders
Aim is commercial in nature
o profit
o market standing
o sales level
Public organisations
Created by government
Profit not a goal
Financed by
o Taxpayers
o government grants
Surplus Funds are reallocated
May be privatised and become private
Social Enterprise organisations
Brings the private and public sectors together
Responds to social and environmental concerns
o Applies commercial strategies in response to these environmental
concerns
Financial surplus is for reinvestment
Triple bottom line
, Production vs Service organisations
Differences
o Outcome of activity
What about organisations that provide a product and a service?
Production organisations
Customer receives a tangible product
Production and delivery usually separate
Customer rarely involved in production
Quality easy for the customer to evaluate
Goods are technically complex
o Customer reliant on the producer
o Cant just produce himself
Service organisations
Customer receives an intangible service
Services consumed at moment of delivery
Customer often closely involved
Quality dependent on subjective perception and expectation
Services can appear less complex
o The customer may be able to do the service, but doesn’t want to
Clean a drain
What is an organisation
The planned co-ordination
o structures of people
deliberately planned and created
Aim
o The achievement of a common goal
Through co-operartive actions
Method
o Division of labor and function
o A hierarchy of authority and responsibility
Common factors in organisations
People
o Interacting
Structure
o coordination of people
o deliberately planned
Objectives
o basis for organising
Management
o Directs
o Controls behaviour
Factors interacting
Interactions and efforts of PEOPLE
In order to achieve OBJECTIVES
Channelled and co-ordinated through a STRUCTURE that is
Directed and controlled by MANAGEMENT
,Components of an organisation
Operating component
Provide or produce goods or services
Core
o Direct performance
How effectively you provided or produced the goods or
services
Support
o Helps the core
Quality control
Work process
Administrative component
Supervise and/or coordinate
Organisational support
o Services
o Examples
HR
Catering
Top management
o Strategy
o Policy
o Direction
Middle management
o Links the components
,Types of organisations
How to classify
According to their major purpose
o But can have multiple purposes and goals
According to their primary beneficiary?
o But multiple beneficiaries
According to their primary activity?
o But very different sets of activities
Private vs Public organisations
Differences
o Ownership
o Source of capital
o Profit motive
What about Social enterprise organisations?
Private organisations
Various legal forms of private organisations
Owned and financed by
o Individuals
o Partners
o Shareholders
Aim is commercial in nature
o profit
o market standing
o sales level
Public organisations
Created by government
Profit not a goal
Financed by
o Taxpayers
o government grants
Surplus Funds are reallocated
May be privatised and become private
Social Enterprise organisations
Brings the private and public sectors together
Responds to social and environmental concerns
o Applies commercial strategies in response to these environmental
concerns
Financial surplus is for reinvestment
Triple bottom line
, Production vs Service organisations
Differences
o Outcome of activity
What about organisations that provide a product and a service?
Production organisations
Customer receives a tangible product
Production and delivery usually separate
Customer rarely involved in production
Quality easy for the customer to evaluate
Goods are technically complex
o Customer reliant on the producer
o Cant just produce himself
Service organisations
Customer receives an intangible service
Services consumed at moment of delivery
Customer often closely involved
Quality dependent on subjective perception and expectation
Services can appear less complex
o The customer may be able to do the service, but doesn’t want to
Clean a drain
