LARGE SCALE
ORGANISATIONS
Chapter 1
Characteristics of LSOs
Number of employees >200
 Total Assets >$200 million
 Annual Sales Revenue – in the millions
 Extent of operations – transnational (but
can be interstate only)
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Types of LSOs
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Corporations – can have private shareholders or be
listed on the stock exchange.
Govt. Business Enterprises – Owned by Govt and
sometimes shareholders to provide a service but
also make a profit eg. Aust Post, Medicare
Govt Depts – provide service, no profit eg. Taxation
office, Centrelink, Defence
Charities/Foundations – provide assistance to those
in need. Eg Salvos.
Types of LSO’s
Can you think of some more examples for
each of these classifications:
 Corporations
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 Public
Companies
 Private Companies
GBE’s
 Govt Depts
 Charities/Foundations
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Classifications of LSOs
Primary – draw directly from nature
 Secondary – transform raw materials into
goods.
 Tertiary – sell the goods, provide a service.
 Quaternary – provision of information eg.
Newspapers, banks, education, postal services
 Quinary – provision of paid and voluntary
domestic services. Eg. Hotels, child care,
restaurants etc.
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Classifications of LSOs
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Can you think of some further examples for the
following industries:
Primary
Secondary
Tertiary
Quaternary
Quinary
Management functions in LSO’s
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1.
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4.
Manager’s job is to plan and co-ordinate resources
and activities of an organisation to ensure that it
achieves the goals and objectives defined by the
board of directors.
Four main economic resources:
Land/physical resources: equipment, raw materials
Labour/Human resources
Capital/Financial resources
Knowledge/information resources
Management functions in LSO’s
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2.
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5.
6.
Management functions:
Operations management (Production)
HR management (Personnel)
Financial management and admin
Marketing/sales management
Research & Development
Information technology
Economic Contribution of LSOs
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Provision of employment and income for Australians
Economies of scale –incur lower costs per unit of output
because they are big. Government benefits/concessions
Invest in and improve Australia’s industrial base –
factories, machinery, etc.
R&D – innovation, new products, best practice
Export Earnings – bringing in $$ from overseas.
Support the community and the disadvantaged
Negative Effects of LSOs
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Heartless, self-seeking organisations (too big and don’t
care or too big to manage themselves effectively)
Best employees/managers taken from Australia
Take jobs off-shore creating unemployment in Australia
Profits generated in Australia leave the country.
Create Balance of Payments problems for Australia
Australia exposed to the impact of overseas problems
Monopolies “killing small business” and ripping-off
consumers
Operating environments of LSOs
Internal – People, resources, processes, culture,
policy.
 Operating – Customers, suppliers, employees,
competitors, creditors.
 Macro – Economic, social, technological,
political, environmental, Legal.
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Apply each of these environments to a LSO of
your choice.
Stakeholders in LSO’s
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A person or group with an interest or stake in how a
business operates. Includes:
Employees
Unions
Shareholders
Owners
Managers
customers, etc.
Measuring organisational
performance
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Efficiency : the best use of resources (time, money,
labour) of an organisation to achieve organisational
objectives.
Productivity: a quantitative measure of the
relationship between resource inputs and outputs; a
way to measure efficiency of the business. (More
output for the same level of resources)
Effectiveness: the extent to which the organisation
chooses appropriate objectives and achieves these
objectives.
KPIs
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Specific criteria used to measure effectiveness and
efficiency. Can be qualitative or quantitative. Can
be financial and non-financial.
Financial:
Profit
Return on Investment (shareholders)
Cost Control
Return on assets
KPIs
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Non-Financial
Customer satisfaction
staff turnover
safety record
training records
quality.
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How could each of these be measured?
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