An organisation is a formal structure of relationships,

responsibilities and authorities through which specific

objectives are achieved.

'A work organisation is a social arrangement for the controlled

performance of collective goals' (Buchanan and Huczynski, 2004).
Purposes of different types of Organisation:

Business organisations: To make a profit in a socially standard

way.

For example: Airlines, Fast food.

Non-profit service organisations: They want to help to all of

people without any profit.

For example: NHS, Universities.

Mutual-benefit organisations: Individuals join together to

pursue their own self-interest.

For example: Clubs, Trade Union.

Commonweal organisations: They provide service to all members of

a given population.

For example: Fire Service, Police.
Organisations by their intended purpose:

Purpose

Primary beneficiary

Examples

Business
Owners
Manufacturers, Fast-food, Restaurants

Non profit services
Clients
Universities, Hospitals

Mutual-benefit
Members
Unions, Clubs

Commonweal
Public at large
Police, Public schools
Classifying Organizations:
Sector classification:

Private enterprise organisations: A "private sector"

organisation is one that is owned and controlled by private

individuals, not the government and usually exists to make a

profit for its shareholders.

Public sector organisations: A "public sector" organisation is

one that is controlled by the government. It is called "public"

because the government is responsible to the entire public.
Commercial interest classification:

Profit oriented: Profit-oriented means pricing strategies rely

on setting a product or service's price to attain a specific,

programmed net profit percentage.

Non-profit oriented: In the broadest sense, an organisation in

which no part of any net earnings can grow for the benefit of

any private shareholder or individual.
Size oriented classification:

Large scale: To access the large-scale data sources efficiently

and automatically, it is necessary to classify these data

sources into different domains and categories.

Medium scale: The demands on an intensely-managed landscape need

a regional landscape planning system, which balances the social

economic needs with geo-biological conditions.

Small scale: Title for firms of a certain size which fall below

certain criteria in terms of annual income, number of employees,

total value of assets.
Formal and Informal Organization:

The Formal organization is-

Deliberately planned and created.

Concerned with the co-ordination of activities,

Hierarchically structured with stated objectives, the

specification of tasks and defined relationships of authority

and responsibility.

The Informal organisation is-

Is flexible and loosely structured,

Relationships may be left undefined,

Membership is spontaneous and with varying degrees of

involvement.
Describe the extent to which an organisation meets the

objectives of different stakeholders. [P2]
Stakeholders:

A shareholder is a stakeholder simply because he or she has

spent money in a company. Therefore, those people remain for to

see a good return on the investment. This may not only consist

of the value of the stock increasing over time, but it may also

include getting periodical dividend payments based on

profitability.
Organisational objectives:

Objectives are defined as specific commitment to complete a

measurable result within a given time frame.
Importance of objectives:

Targets,

Measuring sticks,

Commitment and

Motivation.
Characteristics of objectives:

Organisational purpose and aims,

Be realistic,

Be measurable,

Preferably be set by agreement,

Set clear and challenging targets,

Be open to adaptation,

Form a network.
Objectives of different Stakeholders:

Owners: In a company it would be the shareholders. Owners are

often thought to be the most important stakeholders because they

have set up the business and give a lot of time into the company

to make it successful. Owners like to see their share of profit

increasing, and the value of their business increasing.

Customers: Customers want superiority for money which involves

providing the highest quality products at rival prices.

Employees: Their stake is that the company provides them with am

livelihood. They want security of employments, good rates of

reward and also improvement opportunities.

Suppliers: They want to feel valued by the company and want

frequent orders with on time payments.

Trade Unions: This is for groups of employees who seek to secure

higher wages and better working conditions for their members.

Governments: The government wants businesses to become

successful, to create jobs and to pay taxes.
Inducements and contribution of inside stakeholders:

Stakeholders

Contribution of the organisation

Inducement to contribute

Shareholders
Money & capital
Dividends

Managers
Skills & expertise
Salaries, bonuses, status & power

Workforce
Skills & expertise
Wages, bonuses, stable employment & promotion
Inducements & contributions of outside stakeholders:

Stakeholder

Contribution to the organization

Inducement to contribute

Customers
Revenue from purchase of goods and services
Quality and price of goods and services

Government
High quality inputs
Revenue from purchase of inputs

Unions
Free and fair collective bargaining
Equitable share of inducements

Community
Social and economic infrastructure
Revenue, taxes and employment

General public
Customer loyalty and reputation
National pride
Explain the responsibilities of an organisation and strategies

employed to meet them. [P3]
Responsibilities of an Organisation:

Responsibilities are the most important thing in this topic.

Because of an organisation have a plan. So, to success plan,

they must be maintaining some responsibilities. The main aim of

the research is to give a formal analysis of the relations

between collective obligations to individual responsibilities.

Which individual agent in a group should be held responsible if

an obligation directed to the whole group is not fulfilled?

To this aim, concepts from planning fiction (like plan and task

allocation) and organization theory are used in order to

conceptualize collective agency and the organizational

structures. These concepts are formalized in a dynamic demonic

logic framework, which allows us to study the connections

between all these concepts.

I give a formal account of the notion of coordination, power and

controls intended as management of interdependencies among

agents' activities and show how these organizational relations

together with specific task breakdown determine the

responsibilities within an organization.

For example:

CSR (Corporate social responsibility) is an organization's moral

responsibility to stakeholder groups that are affected directly

or indirectly by the organization's actions. An organization can

adopt a narrow or a broad stance on social responsibility.
Strategies:

Once clear targets have been identified, a set of strategies

must be decided on to further the organisation's efforts.

Strategies are defined here as specific programs, initiatives,

and decisions which will require resources allocated to them.

They can range from the development of Strategies alliances to

developing and conveyance special in-house training for customer

service. These operating Strategies are usually very special

given that the good plans are very clear and focused.

Frequently, there may be some Strategies that are critical and

yet don't get openly shared, particularly since they may be

really sensitive and general knowledge of them would put you at

a competitive weakness.

The Strategies document the approach that will be used to meet

the performance goals. They are generated by middle management

and approved by top management. Every effort should be made to

keep the Strategies up to date, without making major changes.

Major change can also result in the termination of projects that

are only partially completed and/or have not become totally

effective. It should be apparent that many Strategies are

generated by many different functions, supporting the business

objectives.
Explain how economic systems attempt to allocate resources

effectively. [P4]
Economics:

''Economic is a social science that studies human behaviour as a

relationship between ends and scarce means which have

alternative uses. That is, economic is the study of the trade-

offs involved when choosing between alternate sets of

decisions''. (Lionel Robbins, 1935)
The purpose of economic activity:

It is openly said that the central purpose of economic activity

is the production of goods and service to satisfy consumer's

needs want i.e. to meet people need for consumption both as a

means of survival but also to meet their ever-growing demand for

an improved lifestyle or standard of living.

What goods and service to produce: Does the economic uses its

resources to operate more hospitals or hotels? Do we make ipod

Nanos or produce more coffee?

How best to produce goods and service: What is the best use of

our scarce resources of land labour and capital? Should school

playing fields be sold off to provide more land for affordable

housing?

Who is to receive goods and service: What is the best method of

distributing products or ensure the highest level of wants and

needs are met? Who will get expensive hospital treatment-and who

not?
Economic Systems:

''An economic system is best described as a network of

organisations used by a society to resolve the basic problem of

what, how and for whom to produce''.

C:\Users\Kaisar Hamid\Desktop\economicsystem.gif
Categories of economic system:

Traditional Economy: Where decision about what, how and for whom

to produce are based on custom and tradition.

Free market economy: Where households own resources and free

markets allocate resources through the workings of the price

mechanism.

Planned or command economy:Â In a planned or command system

typically associated with a socialist or communist economic

system.

Mixed economy: In a mixed economy, some resources are owned by

the public sector (government) and some resources are owned by

the private sector.
Sectors of production in the economy:

Primary sector: This involves extraction of natural resources

e.g. agriculture, forestry, fishing, quarrying, and mining.

Secondary sector: This involves the production of goods in the

economy, i.e. transforming materials produced by the primary

sector e.g. manufacturing and the construction industry.

Tertiary sector: the tertiary sector provided services such as

banking, finance, insurance, retail, education and travel and

tourism.

Quaternary sector: The quaternary sector is involved with

information processing e.g. education, research and development.

Meaning of economic scarcity: Scarcity is the fundamental

economic problem, in a world of limited resources. Society has

insufficient productive resources to fulfil all human wants and

needs.

For example:

Flowers such as tulips are scarce on occasion because they grow

only at certain time of the year. When they supply of tulips is

lower, they are scarce, or not always available. If enough

people want tulips when none are available, then the demand

increases. And this demand is high not because the price is high

but because the supply is low.
Criteria for Allocation:

Appropriate means of resource allocation are necessary to

achieve optimal allocation of the resource. There are several

criteria used to compare of water allocation @owe aelt, 1986.

Flexibility in the allocation of existing supplies, so that

resource can be shifted from use to use, place, as demand

change, thus allowing equating marginal values over many uses.

Predictability of the allocation process, so that uncertainty

(especially for transaction costs) is minimized.

Equity of the allocation process should be perceived by the

prospective users, providing equal opportunity gains from the

resource to every potential user.

Political and public acceptability, so that the allocation

serves values and objectives of various segments in society.
Allocate resources effectively:

The business plan plays a key role in allocating resources

throughout a business so that the objectives set in the plan can

be met.

Once you have reviewed our progress to date and identified our

strategy for growth, our existing business plan may look dated

and may no longer reflect our business' position and future

direction.

When we are reviewing our business plan to cover the next

stages, it's important to be clear on how we will allocate our

resources to make our strategy work.
The allocation of scare resources:

Allocation of scarce resources is a reality for health care

professionals and organizations. Resource allocation issues can

be particularly challenging for rural communities, where

resources are not enough to meet all needs and fewer

alternatives exist to resolve conflicts between competing needs.

Flexibility

Security

Real opportunity cost

Predictability

Equity

Political and public acceptability
Assess the impact of fiscal and monetary policy on business

organisations and their activities. [P5]
Fiscal policy:

Fiscal policy is the means by which a government adjusts its

levels of spending in order to monitor and influence a nation's

economy. It is the sister strategy to monetary policy with which

a central bank influences a nation's money supply. These two

policies are used in various combinations in an effort to direct

a country's economic goals.
How Fiscal policy works?
Objectives of fiscal policy:

To fund government spending

To redistribute income and wealth more evenly

A way of managing demand in the economy

To influence the supply side of the economy

To correct the negative externalities, such as pollution and

passive smoking
Effects of fiscal policy:

Taxation and work incentives

Taxation and pattern of demand

Taxation and productivity

Taxation and business investment decision
What is monetary policy?

The Federal Reserve's actions that are designed to influence the

availability cost of money. Such as changing the discount rate,

altering bank reserve requirements, and conducting open market

operations. In general, a policy to restrict monetary growth

results in tightened credit conditions and, at least

temporarily, higher rates of interest.
Impact of monetary policy:

Control inflation: The control of inflation has become one of

the dominant objectives of government economic policy in many

countries.

Interest rates: The price of money. Interest is what you pay

when you borrow money and what you are paid when you lend your

money to someone else, like a bank.

Business cycles: The term business cycle refers to economy-wide

fluctuations in production or economic activity over a number of

months or years.

Spending: Money that has actually left the government's bank

account and entered the economy.

Employment: The act of giving someone a job.
Fiscal & Monetary policy's activities:

The role of government in the UK economy extends far beyond its

activities as a regulator of specific industries. The government

also manages the overall pace of economic activity, seeking to

maintain high levels of employment and stable prices. It has two

main tools for achieving these objectives: fiscal policy,

through which it determines the appropriate level of taxes and

spending; and monetary policy, through which it manages the

supply of money.
Evaluate the impact of competition policy and other regulatory

mechanisms on the activities of a selected organisation. [P6]