PERSONNEL MANAGEMENT (N4)

MODULE 2

THE NATURE OF AN
ORGANISATION (PART 1)
 By the end of this lesson,
you should be able to:
 Explain the following concepts:
Vision,
Mission, Values, Policy, SWOT analysis and
SMART Objectives
 Explain how policy is formulated in practice and why
 Explain the influence that the external environment
could have on the organisation – in a practical
manner
DEFINITIONS OF THE FOLLOWING CONCEPTS:
 Vision
 It is where the organisation sees itself in the future.
 Mission
 It defines the purpose – explains “why?” the org. exists.
 Values
 What the org. believes to be right and wrong – how they handle the people
around them.
 Policy
 Itis a guideline for the organisation – guides management and workers in
decisions (How the will handle their day-to-day activities.
 SWOT Analysis
A business must analyse it’s:
 Strengths + Weakness (internal)
 Opportunities and Threats (external)

 SMART objectives
An organisation’s short-term goals must be S.M.A.R.T. (a short term objective = less
than 3 years)
 Specific

 Measurable

 Achievable

 Realistic

 Time-related
 How is the policy
created (formulated)?
Long and short-term objectives have to be
drawn up by the different levels of
management.
The policy must be communicated in
writing and shared to every employee
(through the company magazine or
newspaper).
 When studying a list of items in
the textbook – only study 5 of
the easiest for YOU to remember.

The MAGIC
number is…
For the sake of these PowerPoints, I will only be
focusing on 5 of the items which I think will be
easiest to remember in an exam. However, you
are more than welcome to study any 5 from your
textbook – which you think YOU will be able to
remember.

I only say study 5 to ensure that you can fight for

marks in your exams, however if you feel like you
want to study everything, I will not STOP you.
 The importance of the policy document:
The policy document:

 Sets limits of behavior

 Recognizes the needs of all employees
 Emphasizes the inter-dependence of all employees
 Recognizes that the workers are important to the enterprise
 Recognizes
the rights of workers and the obligation of
management
The following external environments can
influence an organisation’s structure:
 Social: think the values of the org., who the employ
 Political: think legislation, political climate
 Economic: think money
 Technological: think new developments in the world
 Physical: think the resources available and the actual environment of
the org.
 International: think how other countries have an influence S.A. orgs.

S.T.E.P. I.P.