Internal environment of large scale organisations

1. Internal environment of large scale organisations

2. Vision and Mission • Vision: a broad and inspirational statement, forward thinking, describes the company’s dreams for the future. Defines the future direction of the organisation. • Mission: a written statement that sets out who the organisation is, what it exists for and how it will achieve its objectives. • Many organisations also provide a statement of their Values

3. Apple’s vision statement (the “what”) • “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. “

4. Apple’s mission statement (the “how”) • “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.” • Bit of a mouthful!!!!

5. Organisational objectives • Must be: • Focused on results, not activity: eg. To make a profit for shareholders • Specific: eg. World Vision’s objective is to help children in poor countries. • Attainable and measurable: eg. To meet our budget figures for the next year. • Related to time: see above.

6. Structures • Hierarchical – top down, vertical specialisation. • Centralised management – maintaining power and authority at the higher levels of mgmt. • Decentralised management: delegating power and authority to middle and lower mgmt levels.

7. Functional model • Split into areas based on skill and knowledge. Eg finance, marketing, production, HRM etc. • Advantages: uses specialised skills of staff, clearly sets out who does what. • Disadvantages: No opportunities to learn new skills, may decrease motivation and communication across the business.

8. Functional model

9. Divisional Model • Staff organised into separate divisions if the business has a diverse range of markets in which it conducts its business. Eg. Think of Myer – Mens wear, sports equipment, homewares etc. • Advantages: Just deal with one area so can become an expert. • Disadvantages – Can duplicate work eg. Marketing. Can become pigeon holed, decrease motivation communication across the business.

10. Divisional Model

11. Geographic Model • Same as Divisional except it is based on physical location. • Eg. HR SA, HR VIC etc.

12. Matrix model (pg. 44) • Gathering specialists from different Departments to tackle specific problems or projects. • Eg. Organisation wants to start a new ad campaign. Might get people from marketing, finance, operations all to input. • Advantages: gives staff ability to work on diverse projects, hence motivating them, cross communication, may help build stronger relationships between depts. • Disadvantages: Skills may be wasted in wrong areas, their own work may suffer, may not want to be involved, feel overworked etc.

13. Corporate Culture • “How things are done around here” • Can be broken into two types: • Official: describes an organisation’s values and beliefs and is often expressed in slogans or written statements. Real/Unofficial: unwritten. The way things are really done in an organisation.

14. Corporate Culture • Indicators: • Management style • Communication methods • Morale of employees • Mission/vision statements • Dress code • Organisational structure (tall or flat?) • Physical environment

15. Key Management roles • Planning • Organising • Leading • Controlling • Its easy to remember – POLC. • Please refer to it as POLC from now on.

16. Polc - Planning • “Establishing an organisation’s direction or goals.” • Decisions made re: Mission and Vision. • Timelines, budgets, goals.

17. Polc - Planning • Three levels of planning: • 1. Strategic: the big picture. 3 – 5 years. “What are our long term goals?” “Should we expand? Merge? Change our structure?” • 2. Operational: medium term (2-3 years). Usually conducted at department level. Eg. Ad campaigns. • 3. Front-Line: short term (day to day, week to week). Eg. Rostering, stock ordering etc.

18. Polc - Planning • Stages of planning (also known as SADIM) • S – Set or develop objectives • A – Analyse: Outline the facts (SWOT analysis) • D – Develop and evaluate alternatives • I – Implement best option • M – Monitor and review

19. SWOT analysis • Strengths (What’s working in our favour?) • Weaknesses (What could we improve on?) • Opportunities (What are some ways we could improve? What options are there?) • Threats (What could possible get in the way of us achieving what we want to achieve?)

20. pOlc - Organising • “The process of co-ordinating employees, resources, policies and procedures to facilitate the achievement of the organisational objective for which management has developed a plan.” • Managers organise things like: Human resources, meetings, finance, equipment, tasks, time, priorities, policies, etc.

21. poLc - Leading • “The process of co-ordinating tasks, both day to day and specific to the achievement of individual objectives, and involves both motivating staff and developing their potential or coaching them.” • Leaders need to be good communicators and motivators and must lead by example. • There are basically 5 leadership styles: • Autocratic, Persuasive, Consultative, Participative and Laissez faire.

22. polC - Controlling • “Monitoring all management processes, including planning, leading and organising to ensure the realisation of organisational objectives.” • Can be done through the use of KPI’s. • Involves evaluating and reviewing, then planning for change if improvement is required. • Managers must control human resources, financial resources and material resources.

23. Policies and Procedures • Policies: statements or guidelines that embrace the strategic direction of the organisation. Usually written. • “BHP Billiton aims to ensure that >90% of office waste is recycled.” • Procedures: prescribe the necessary action steps for carrying out the policy and therefore achieving corporate objectives. • “BHP Billiton staff are asked to dispose of office waste using recycling stations provided throughout HQ.”