characteristics of large scale organizations

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Administration, Resource Management


MODULE 1 - CORPORATE MANAGEMENTCHAPTER 1 MANAGING LARGE SCALE ORGANIZATIONSCharacteristics of large scale organizationsBusiness enterprises can be classified according to certain characteristics.There are a number of characteristics that may be used to classify a business enterprise as a large-scale organization rather than as a small or a medium business enterprise. The following characteristics may be used as a basis of such a classification. Before we attempt this classification, however, we should recall the basic rules of classification - exhaustiveness and exclusivity. The organizations we are attempting to classify as either small, medium or large-scale must all be able to be placed in at least one of the three categories (exhaustiveness) and the organization being classified must be placed in one, and only one, of the categories (exclusivity).If we take these characteristics and apply them to a large-scale enterprise then the following will normally be true. However, not all large-scale organizations will necessarily exhibit all of the following characteristics: Large scale organizations will normally exhibit these characteristics. More than 100 employees The enterprises assets are of similar value to turnover There is a clear distinction and separation of power between owners and managers There are many owners or the nation owns it as a government enterprise Turn over/revenue is in the hundreds of thousands or millions of dollars The enterprise operate from a number of intrastate, interstate and overseas venues

Distinguishing large-scale organizationsThere are many ways that large-scale organizations can be classified and a variety of forms which they may take. The main way of distinguishing between large-scale organizations is by the ownership of the entity and its principal form of operation. Hence, we are able to distinguish between government (public sector) and non-government (private sector) organizations or, put in another way, between publically owned and privately owned organizations. By 'publically owned' we mean that the community as a whole owns the organization and that it is operated on their behalf by the government. Public sector or government organizations may in turn be categorized into three distinct forms - general government entities, providing non-market goods and services (e.g. roads, hospitals and the like), public trading enterprises, providing market goods and services which meet their community service obligation and finally, public financial enterprises providing financial services e.g. government, banks and insurance offices.Next, we can distinguish between those large-scale organizations which have as their primary or core objective, the 'profit motive', and those which are nonprofit oriented. Also, we can distinguish between large-scale organizations according to the industry to which they belong - primary, secondary or tertiary, or as to whether their core function is manufacturing or service provision.We could also distinguish between organizations according to their legal status and the extent of their legal liability (e.g. sole trader, partnership, company, statutory authority, government department, and those large-scale organizations which have limited and those which have unlimited liability), and their size in terms of the number of employees, production levels and turnover.

POLC CCMThere is a wide range of essential functions that must be performed by managers in large-scale organizations. These functions may be categorized into two broad types - generic functions and specific functions.POLC CCM is a mnemonic for the ingredients of overseeing business functionsThe generic management functions which all managers perform to some extent include the 'POLC CCM' functions: P - planning - managers must perform the task of planning at their designated level (the strategic, tactical or operational level) everything that the organization must do to achieve its objectives, i.e. the long-term, the mid-term and the short-term plans Three important levels of planning O - organizing - managers must ensure that all of the necessary resources, i.e. the natural resources, the human resources, the capital resources and the entrepreneurial or 'street smart' resources are available and are able to be used to perform the required tasks or for the required purposes so that the service can be provided or the product manufactured Essential resources needed for business organizations. L - leading - managers must lead the way for employees, customers and competitors; they must be at the forefront of trends and fashions and lead by example in the workplace through their technical skill and competencies. C - controlling - managers must perform a supervisory and control function to ensure that work is performed to the optimal level and that the quality of service provision of product manufacture is at world's best practice level. C - communicating - managers must keep everyone in the organization informed of what is occurring within the organization as well as members of the wider community Communication is vital for successful organizations. C - creating - managers must be able to create innovative ways to perform tasks and to market the organizations products or services in order to enhance the organizations effectiveness and efficiency. M - motivating managers must be able to motivate staff to maintain them in the first instance and then to ensure that their performance is optimized both for their own benefit and also for the benefit of the organization.

Specific management functionsHuman Resource Managers are responsible for motivating employees to achieve their organizational objectives.Operations managers meet customer demands and organizational objectives.The specific management functions a manager will perform are determined by the structure of the organization and by the area of expertise that the manager specializes in within the organization. Examples of these functions include: Marketing and Public Relations - managers must ensure that the right products and services are produced in the right style, at the right time for the right consumers, and to satisfy all consumer complaints if the organization is to be successful. Banking and Finance - managers must ensure that the organization has the necessary financial resources to achieve its objectives and then they must control these organizational finances. General Administration - managers must ensure that all the necessary paperwork, data entry and analysis are completed in the most efficient manner. Distribution - managers must ensure that the products are delivered on time to customers and that delivery charges are kept to a minimum.

Contributions of large-scale organizations to the economyLarge-scale organizations make a significant contribution to the economy as a whole and it is for this reason that governments take a special interest in the successful operation of these organizations.The main significant contributions that these organizations make include: Employment - any downturn in organizational performance which sees these organizations downsize the number of their employees or close part or all of their operations will have a significant impact on the community. Also, these organizations provide indirect employment through the many organizations from whom they purchase their components or parts. Goods and services - these organizations provide a significant number of important goods and services not only for the general public but for other organizations as well. In addition, these organizations undertake extensive research and development to extend the type and the range of products and services available, as well as to improve their quality and serviceability. Revenue - these organizations are a major source of revenue for the government through the taxation system. Competition - these organizations provide a source of competition between themselves, which benefits the consumers and the community as a whole through lower pricing structures and better quality products or service. Community welfare - some of these organizations provide the necessary infrastructure or goods and services, which enable members of the community to achieve minimum levels of welfare. They may also have a community service obligation to provide certain goods and services to the general community at zero cost or at a cost which simply recovers expenses. Some of these organizations also sponsor certain activities and groups within the community and undertake research into ways to preserve our environment and our heritage. Foster international relations - many of these organizations are multinational corporations and as a result are de facto diplomats which represent their country in their international dealings and, as such, assist with government policy implementation.

Business environmentsLarge-scale organizations do not operate within a vacuum, they operate within constantly changing commercial and non-commercial environments. These organizations are not static, they are dynamic organizations operating within an open (as opposed to a closed) system. It is important for managers within these organizations to understand the environment within which they operate so that they can be proactive about any likely impacts that the environment may have on the organization. In this way managers can make any necessary changes to ensure the continued success of the organization and the attainment of its goals and objectives.Large-scale organizations operate within essentially two broad environments - the internal environment and the external environment. The external environment may be further divided into the task environment and the general environment.There are three major sectors or contributors to the internal environment which may impact on the organization: management, employees and the culture of the o


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