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Advanced Engineering

Management
Organisations

Examples:

Multinational car company (e.g. Ford)

Ford)  An accountancy firm (e.g. PWC)  .g.Examples: Multinational car company (e.

PWC Building .

g. Ford)  An accountancy firm (e. PWC)  A charity (e. Oxfam)  .g.Examples: Multinational car company (e.g.

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g.g.g. PWC)  A charity (e.g.Examples: Multinational car company (e. Oxfam)  A local authority (e. Cardiff CC)  . Ford)  An accountancy firm (e.

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g.g.g. Ford)  An accountancy firm (e.g. AEEU)  . PWC)  A charity (e. Cardiff CC)  A trade union (e.g.Examples: Multinational car company (e. Oxfam)  A local authority (e.

Unison Members .

g.g.g.g.g. Oxfam)  A local authority (e. the British army)  . Ford)  An accountancy firm (e. AEEU)  An army (e.g. PWC)  A charity (e.Examples: Multinational car company (e. Cardiff CC)  A trade union (e.

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What do they have in common? An organisation is’ a social arrangement which pursues collective goals. which controls its own performance and which has a boundary separating it from its environment’  How does this definition apply to some of the above organisations?  .

How does this definition apply to some of the above organisations? Characteristic Social arrangement Individuals gathered together for a purpose Ford The Army .

How does this definition apply to some of the above organisations? Characteristic Social arrangement Individuals gathered together for a purpose Ford People work in different divisions making different vehicles The Army .

How does this definition apply to some of the above organisations? Characteristic Social arrangement Individuals gathered together for a purpose Ford People work in different divisions making different vehicles The Army Soldiers in different regiments with a chain of command from the top to the bottom .

How does this definition apply to some of the above
organisations?

Characteristic
Collective goals
The organisation has
collective goals over
and above those of
the people working
within it

Ford

The Army

How does this definition apply to some of the above
organisations?

Characteristic
Collective goals
The organisation has
collective goals over
and above those of
the people working
within it

Ford
Sell vehicles and
make money

The Army

How does this definition apply to some of the above
organisations?

Characteristic
Collective goals
The organisation has
collective goals over
and above those of
the people working
within it

Ford
Sell vehicles and
make money

The Army
Defend the country
Defeat the enemy
International
peace keeping

How does this definition apply to some of the above organisations? Characteristic Controls performance Performance is monitored against the goals and adjusted if necessary to ensure they are achieved Ford The Army .

Standards are constantly improved The Army .How does this definition apply to some of the above organisations? Characteristic Controls performance Performance is monitored against the goals and adjusted if necessary to ensure they are achieved Ford Costs and quality are reviewed and controlled.

Standards are constantly improved The Army Strict disciplinary procedures and training .How does this definition apply to some of the above organisations? Characteristic Controls performance Performance is monitored against the goals and adjusted if necessary to ensure they are achieved Ford Costs and quality are reviewed and controlled.

How does this definition apply to some of the above organisations? Characteristic Boundary The organisation is distinct from its environment Ford The Army .

How does this definition apply to some of the above organisations? Characteristic Boundary The organisation is distinct from its environment Ford Physical: factory gates Social: Employment status The Army .

How does this definition apply to some of the above organisations? Characteristic Boundary The organisation is distinct from its environment Ford Physical: factory gates Social: Employment status The Army Physical: barracks Social: different rules than civilians .

or specialise in one activity.  Within the organisation different people do different things.How do large organisations differ from small ones? Organisations are preoccupied with performance  Organisations contain formal.  . documented systems and procedures which enable them to control what they do.

 .How do large organisations differ from small ones? Organisations pursue a variety of goals  Most organisations obtain inputs and process them into outputs.

Characteristics of large organisations Max Weber coined the term ‘bureaucracy’  A bureaucracy is a large organisation of any kind (public or private) which has special features not found in small organisations  Is bureaucracy a good thing or a bad thing?  .

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 An arrangement of individual jobs into a hierarchy in which different levels of graded authority are recognised.  .Bureaucracy A set of prescribed rules and administrative regulations which provide guidance for its members and ensures that uniform standards are maintained.

 . called executive roles.  A system of positions through which the work is carried out.Bureaucracy A system of written records which provide precedents to guide actions in the future.

capacity to change individual’s behaviour  Authority .  Power .Bureaucracy A system of positions whereby power and authority are distributed in such a way as to enable the organisation to achieve its objectives.  .legalised power. which in a business derives from the owners who provide the company resources.

What they do. employees.public or private  Control .The owners themselves. government sponsored regulators.  Activity .How do organisations differ? Ownership . healthcare  Orientation .profit. non-profit  . manufacturing.

limited company.  .sole trader. public company  Sources of finance . share issue  Technology . partnership. Microsoft Vs the corner shop.High or low. government funding.Borrowing.How do organisations differ? Legal status .

many different types of activity are carried out.  Purchasing materials and components  Carrying out operations on them to produce something  Research and development (R&D)  Taking orders  .How is an organisation divided up? Within a typical organisation.

How is an organisation divided up? Planning  Employing people and paying them  Carrying out operations on them to produce something  Co-ordinating all of the above to achieve the organisation’s goals  .

How is an organisation divided up? Clearly. this takes a lot of people who need to be grouped together in some way.  . This leads to the formation of an organisation structure  Definition: ‘An organisation structure is the framework of formal work relationships between people in an organisation’.

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Responsibilities .

An organisational structure is a framework which Links individuals  Allocates the tasks  Allows for authority and control  Coordinates separate units  Facilitates the flow of work  .

How can we departmentalise organisations? Function  Geography  Project  Product / Brand  Market segment  Hybrid  Divisionalisation  .

expressing and understanding the shape and structure of an organisation  Traditional way of of pictorially expressing the various relationships between individuals.  Formal communication and reporting channels  . groups and departments.Know your place The chart aids designing.

responsibility and accountability.  The hierarchy of the organisation  .Know your place The structure of authority and delegation.

organisations are dynamic.  .What are the limitations of organisation charts? Impression . they change  Show formal.not what really happens  Static models . not informal relationships or networks  Other aspects may be more important  They do not measure efficiency.

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 Examples  Guinness  The British Film Institute  Cardiff University  .What is the organisation for? Mission:  The company’s mission statement describes its basic function in society.

. The strategy is to focus resources on the development of the Group’s alcoholic drinks business.What is the organisation for?   Guinness Group Mission: Guinness plc is one of the world’s leading drinks companies. such as Johnnie Walker. producing and marketing an unrivalled portfolio of international best-selling brands. Bell’s and Dewar’s Scotch whiskies. to create a working environment in which people can perform to their fullest potential. and Guinness stout itself – the world’s most distinctive beer. and to be recognised as one of the world’s leading consumer brand development companies. Gordon’s and Tanqueray gins.. The objectives are to provide superior long-term financial returns for shareholders.

so that their enjoyment is enhanced through a deeper understanding of the history and potential of these vital and popular art forms. . Our aim is to ensure that the many audiences in the UK are offered access to the widest possible choice of drama and television.What is the organisation for?   BFI Mission: The BFI is the UK national agency with responsibility for encouraging and conserving the arts of film and television.

.What is the organisation for?         Cardiff University’s Vision: To be a world-class university Its Mission: To pursue research of international excellence and research-led learning and teaching of the highest quality. 4 aims covering: Research Learning and teaching The University and the region The supporting environment for Staff and Students.

 Goals:  The intention behind decisions or actions (Henry Mintzberg)  A desired end result (Shorter Oxford English Dictionary)  . aims and objectives.What is the organisation for? Below the mission are goals.

quantifiable (SMART)  Objectives are useful because they are:  Reference points regarding people’s work  Yardsticks to measure performance  Motivators  .non-quantifiable  Objectives .What is the organisation for? Goals: there are 2 types:  Aims .

growth. make a profit. increased market share etc. Examples? .  Secondary aims – an improved quality product.  Non-profit organisations would have other aims. improved service. cash flow.Levels of objectives  Primary and financial objectives: – Stay in business.

Levels of objectives  In a complex organisation there will be a hierarchy of objectives: – Organisation split into divisions – divisions split into departments – department split into work groups .

increase in turnover – High street shop .Levels of objectives  Example.Achieve a 10% p.achieve £X turnover in the next financial year.survive and prosper in the holiday market – Sales dept .a.  How is time related to each level of objectives? . a holiday company: – Organisation .

Critical External Relationships There are various ways in which the environment is related to an organisation  SLEPT factors  Opportunities and threats  Resources  .

interest groups and pressure groups  Stakeholder: a person.Critical External Relationships Stakeholders.  . group or organisation with an interest in what the organisation does.

suppliers. government.investors. customers.Stakeholders 3 broad types:  Internal . managers  Connected . financiers  External .employees.the community. pressure groups  . shareholders.

Guided Study Read article on ‘Organigraphs’  (Copies available in the Teaching Office)  .