What is an organisation Definition Classifications Activity 1

What is an organisation? Definition Classifications

Activity 1 Group Discussion How would you define an Organisation? In what ways is an organisation different from a crowd?

Definition A group of individuals operating together in a systematic way to achieve a set of objectives. However the group of individuals is organised (NOT a random collection of individuals)

Characteristics of an organisation: An organisation has: • A Purpose eg; selling goods or services • Aims and Objectives • A Structure dividing people into functional areas • Processes and Policies • Management

Management Responsibilities • • • Planning Organising Leading Co-ordinating Controlling => 5 primary managerial functions according to Henri Fayol

Activity 2 Group Discussion Make a list of 10 different organisations In what ways are the organisations on your list, similar or different?

Activity 2 - Debriefing Criteria which could set these organisations apart: • Size • Geographical influence => local or multinational • Types of Business • Business sector • Industry in which they operate • Objectives • Structure • Type of management

Classification of organisations By size: • Small => Plumber, Electrician, Hairdresser, Accountant … • Medium => Retailer (corner shops), Travel Agency, Fitness Centre, Fast Food restaurant … ÞSME • Large => Banks, Insurance, Car manufacturers, Supermarket Chains …

SME What do we mean by Small and Medium Enterprises: According to the Companies’ act, to be entering in the SME classification a business must have a turnover (less than £ 25 m), employees (less than 250), and gross assets (less than £ 12. 5 m).

Activity 3 Are the companies whose logos are featured: 1) By size: Small, Medium and Large

Classification of organisations By Business Activity • Primary • Secondary • Tertiary • Quaternary

Activity 4 Are the companies whose logos are featured: 1)Primary, Secondary and Tertiary

Classification of organisations By Type of technology used • Craft • Semi-automated • Fully automated

Classification of organisations Geographical influence/coverage • Local • Regional • National • International

Activity 5 Are the companies whose logos are featured: 1) Local, Regional, National, International?

Activity 6 Group research: 1) Using internet identify the different industrial and economic sectors in Scotland 2) With the guidance of your tutor, choose one particular sector and explain the importance of this sector in the Scottish Economy 3) Present your findings to the rest of the class

Classification of organisations By Economic and Industrial sectors The key economic sectors in Scotland are: Energy Financial and Business Services Food and Drink Life Sciences Tourism Creative Industries

Classification of organisations By Sector • Private • Public • Third sector • Franchises • Multinational

Summary We have now looked at the following classifications: • By Size • By Business Activity • By Technology used • By Geographical Influence/Coverage • By Sector Next week we shall cover the last classification by Type of Business Organisation