1.1 C
HARACTERIS
TICS O
F
LSOS
WHAT IS AN ORGANISATION?
• Organisation is created when two or more people work together to achieve their common objective.
• Think about the organisations that you belong to:• School• Part-time job• Sports clubs•Hobby groups• Volunteer groups
WHAT MAKES AN ORGANISATION ‘LARGE’?
Number of employees:
Australian Bureau of Statistics defines a LSO as one that employs 200 people or more.
This is the MAIN indicator we use
AUSTRALIAN LSOS BY NO. OF EMPLOYEES
Total Assets
This is the value of what the organisation own
Also know as market capitalisation LSO will have substantial assets This is generally accepted as being in
excess of $200 million
Amount of Revenue
This is the amount of income an organisation makes.
LSOs make substantial revenue
This generally considered as revenue in the millions
FOREIGN LSOS OPERATING IN AUSTRALIA BY REVENUE
OTHER FORMS OF ‘LARGE’ CLASSIFICATIONSignificant market share – percentage of the market an organisation commands
Extent of operations (transnational/multinational company)
Net profit – income minus all expenses
MANAGEMENT FUNCTIONS
All LSOs have requirements of certain functions being performed in order to effectively operate.
These are generally generic across most organisations.
Typical management functions include: Human Resources Operations Marketing Finance/Accounting Research and Development
HUMAN RESOURCES
Coordinates all activities and resources in relation to human employees.
Includes but is not limited to:Recruitment and SelectionTraining and DevelopmentPayrollEmployee RelationsPerformance AppraisalRewards and motivation
OPERATIONS
All activities involved in the production of a good or service
Includes but is not limited to:Optimising manufacturingSupply chain managementManaging inventoryManaging wasteManaging quality
MARKETING
All activities involved in promoting and selling products or services.
Includes but is not limited to:Advertising and promotionsSelling techniquesPrice strategiesDistribution networksMarket research
FINANCE/ACCOUNTING
All activities involved in financially running the business.
It includes but is not limited to: Book keeping Financial planning and budgeting Financial models Data analysis
RESEARCH AND DEVELOPMENT
All activities directed toward the innovation, introduction, and improvement of products and processes.
It involves but is not limited to:InventionMarket researchTests and trialsDesigning
2009 VCE EXAM QUESTION
Question 2
Wombat Airlines is a large-scale organisation that operates internationally. A unique feature of this airline is that it does not outsource any part of its business. This means it is responsible for the maintenance and cleaning of its planes and the manufacture and supply of the food that it serves.
a. Describe two characteristics that would identify Wombat Airlines as a large-scale organisation.
(2 marks)
EXAMINERS REPORT
2010 VCE EXAM
Question 1.
The Global Financial Crisis has led to a substantial reduction in the number of customers for Flyalot Airlines. Management is predicting that a further drop in customer numbers will occur over the next twelve months. As a result management is reviewing all areas of the organisation.
c. Identify two management functions. For each function discuss one strategy that Flyalot Airlines could use to overcome the problems caused by decreasing customer numbers.
(4marks)