INTERNAL
ENVIRONMENT OF
LARGE SCALE
ORGANISATIONS
Vision and Mission
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Vision: a broad and inspirational statement,
forward thinking, describes the company’s dreams
for the future. Defines the future direction of the
organisation.
Mission: a written statement that sets out who the
organisation is, what it exists for and how it will
achieve its objectives.
Many organisations also provide a statement of
their Values
Apple’s vision statement (the “what”)

“Apple
is committed to bringing the best
personal computing experience to
students, educators, creative professionals
and consumers around the world through
its innovative hardware, software and
Internet offerings. “
Apple’s mission statement (the “how”)
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“Apple ignited the personal computer revolution in the
1970s with the Apple II and reinvented the personal
computer in the 1980s with the Macintosh. Today,
Apple continues to lead the industry in innovation with
its award-winning desktop and notebook computers,
OS X operating system, and iLife and professional
applications. Apple is also spearheading the digital
music revolution with its iPod portable music players
and iTunes online music store.”
Bit of a mouthful!!!!
Organisational objectives
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Must be:
Focused on results, not activity: eg. To make a profit
for shareholders
Specific: eg. World Vision’s objective is to help
children in poor countries.
Attainable and measurable: eg. To meet our budget
figures for the next year.
Related to time: see above.
Structures
Hierarchical – top down, vertical
specialisation.
 Centralised management – maintaining
power and authority at the higher levels
of mgmt.
 Decentralised management: delegating
power and authority to middle and lower
mgmt levels.

Functional model
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Split into areas based on skill and knowledge. Eg
finance, marketing, production, HRM etc.
Advantages: uses specialised skills of staff, clearly
sets out who does what.
Disadvantages: No opportunities to learn new skills,
may decrease motivation and communication across
the business.
Functional model
Chief Executive
Officer
General
Manager
Finance
General
Manager
Human Resources
General
Manager
Marketing
General
Manager
Operations
General
Manager
IT
Divisional Model
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Staff organised into separate divisions if the
business has a diverse range of markets in which it
conducts its business. Eg. Think of Myer – Mens
wear, sports equipment, homewares etc.
Advantages: Just deal with one area so can become
an expert.
Disadvantages – Can duplicate work eg. Marketing.
Can become pigeon holed, decrease motivation
communication across the business.
Divisional Model
General
Manager: Myer
Manager:
Menswear
division
Manager:
Sportswear
Division
Manager: Kids
Clothing
Manager:
Homewares
Manager:
Electrical
Geographic Model


Same as Divisional except it is based on physical
location.
Eg. HR SA, HR VIC etc.
General
Manager : HR
HR Manager :
Victoria
HR Manager:
South Australia
HR Manager:
New South
Wales
Matrix model (pg. 44)
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Gathering specialists from different Departments to
tackle specific problems or projects.
Eg. Organisation wants to start a new ad campaign.
Might get people from marketing, finance, operations all
to input.
Advantages: gives staff ability to work on diverse
projects, hence motivating them, cross communication,
may help build stronger relationships between depts.
Disadvantages: Skills may be wasted in wrong areas,
their own work may suffer, may not want to be involved,
feel overworked etc.
Corporate Culture
“How things are done around here”
 Can be broken into two types:
 Official: describes an organisation’s values and
beliefs and is often expressed in slogans or written
statements.
Real/Unofficial: unwritten. The way things are really
done in an organisation.
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Corporate Culture
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Indicators:
Management style
Communication methods
Morale of employees
Mission/vision statements
Dress code
Organisational structure (tall or flat?)
Physical environment
Key Management roles
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Planning
Organising
Leading
Controlling
Its easy to remember – POLC.
Please refer to it as POLC from now on.
Polc - Planning

“Establishing an organisation’s direction or
goals.”

Decisions made re: Mission and Vision.

Timelines, budgets, goals.
Polc - Planning
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Three levels of planning:
1. Strategic: the big picture. 3 – 5 years. “What are
our long term goals?” “Should we expand? Merge?
Change our structure?”
2. Operational: medium term (2-3 years). Usually
conducted at department level. Eg. Ad campaigns.
3. Front-Line: short term (day to day, week to week).
Eg. Rostering, stock ordering etc.
Polc - Planning
Stages of planning (also known as SADIM)
 S – Set or develop objectives
 A – Analyse: Outline the facts (SWOT analysis)
 D – Develop and evaluate alternatives
 I – Implement best option
 M – Monitor and review
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SWOT analysis
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Strengths (What’s working in our favour?)

Weaknesses (What could we improve on?)
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Opportunities (What are some ways we could
improve? What options are there?)
Threats (What could possible get in the way of us
achieving what we want to achieve?)
pOlc - Organising
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“The process of co-ordinating employees, resources,
policies and procedures to facilitate the
achievement of the organisational objective for
which management has developed a plan.”
Managers organise things like:
Human resources, meetings, finance, equipment,
tasks, time, priorities, policies, etc.
poLc - Leading
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“The process of co-ordinating tasks, both day to day
and specific to the achievement of individual
objectives, and involves both motivating staff and
developing their potential or coaching them.”
Leaders need to be good communicators and
motivators and must lead by example.
There are basically 5 leadership styles:
Autocratic, Persuasive, Consultative, Participative and
Laissez faire.
polC - Controlling
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“Monitoring all management processes, including
planning, leading and organising to ensure the
realisation of organisational objectives.”
Can be done through the use of KPI’s.
Involves evaluating and reviewing, then planning for
change if improvement is required.
Managers must control human resources, financial
resources and material resources.
Policies and Procedures
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Policies: statements or guidelines that embrace the
strategic direction of the organisation. Usually written.
“BHP Billiton aims to ensure that >90% of office waste
is recycled.”
Procedures: prescribe the necessary action steps for
carrying out the policy and therefore achieving
corporate objectives.
“BHP Billiton staff are asked to dispose of office waste
using recycling stations provided throughout HQ.”