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O r g a n i s a t i o n by Mind Map: O r g a n i s a t i o n
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O r g a n i s a t i o n

Purpose

Arrive at an acceptable definition of an Organisation

Types of Organisation

Public Sector

Providing Welfare / Essential Goods, Government Department, Government Companies, Such as: - Government Investment Corp, Singapore - Singapore Technologies - Temasek Holdings

Mixed economy

Needs protection from competition

Prevents FDI

Non-Profit

- SPCA - Charitable

Private Sector

Profit Seeking / Money orientated, Companies / Corprations, Private Ltd, Public Ltd, Partnership, Sole Proprieter

Privatisation

process of selling public assets to the private sector

example: Singapore Airlines, Singtel

Deregulation

Lifting of government control over industries in order to encourage foreign direct investment (FDI) and competition

Industry examples: - Banking/Finance - Media - Telecommunications - Utilities - Postal - Life Sciences

Definition

A social entity that provides the necessary structures to achieve specific aims

Social Entity, Living things Organisms

Structures, Organic, Flexibility, Ability to implement change easily, Open to suggestions, Freedom, Flat Structure, Mechanistic, Bureaucracy, Resistant to change, Example: Banks, Armed Forces, Tall Structure

Specific Aims, Too general, Too generic, Does not address the issues of the public, private sector and non-profit organisations individually

Definition

A commercial enterprise or establishment that trades in goods & services

Commercial Enterprise / Establishment, profit making, profit seeking

Trades, Transactions between 2 or more parties - could be in kind or monetary means

Limitation, Definition excludes non-profit and public sector organisations

Definition

An entity that is both commercial & social, that which provides the necessary structures to achieve the central objective of trades in goods and services

entity, ability to interact (sue and be sued)

commercial & social, encompasses social + commercial (PVT, PUB, NON-PROFIT)

structures, organic, mechanistic

central objective, cover cost of the running of the business, economically viable (make profit)

trade, in kind or monetary compensation

5 approaches to the study of organisation

economic approach

MC = MR concept marginal cost = marginal revenue = output

behavioural theory

seeks to satisfy participants (stakeholders) to gain their support for organisations' strategy

Organisation, customers, suppliers, shareholders, employee

Agency approach

manager acts as an Agent where top management has delegated decision-making to him/her

agent manages in the best interest of the top management (principal)

Agent also satisfies his personal interest (wages/compensation)

Transaction costs Theory

Incur Transaction costs -------------------------- - monitoring costs - enforcing costs - negotiation costs, Once transaction costs reach a certain point of high level, then third party should be replaced. outsource these activities ( photocopying/call centres) with the purpose to improve internal efficiency

Economic Approaches to Strategic Management

Decisions are made using Game Theory (Oligopolistic Industry)

Decisions are based on the assumptions of behaviour of rival firms & using quantitative method

Decisions are made rationally