The Purposes of Different Types of Organisations - Assignment Example

?Identify the Purposes of Different Types of Organisations like SE. The need for an organisation arise when a group of people working together to achieve a common goal. There is a need of division of work in every organisation, and if only single people doing all kind of work singly then there is no need for the concept of organisation. According to Singla, there are few different concepts regarding the definition of organization. In his point of view, organization is harmonious adjustment of specialised people to accomplish or achieve some specific goal or objective. He also mentioned that it is also involves the process of differentiating and grouping the activities of individual or group of individuals and also establishing the authority relationship between the groups of people (Singla, 183). Singla also mentioned that the organisation can be of two different types in broader perspective; formal and informal. The formal organisation is an organisation where the structure of it is designed by the management to achieve or accomplish a predefined objective or task. Where as, in case of informal organisation, it is a general grouping of people in the work situation to achieve a particular goal (Singla, 187-188). According to Cole the overall objective of any organisation is to grow as a successful business unit, keeping in mind the benefit of the customer, employee, and stakeholders and also for the community in which they are operating. (Cole, 149).The importance of any organisation can be classified in to following heads namely: synergy effect, team spirit, attainment of common goal, economic development, minimizing economic disparities and transfer and adaptation of technology. Synergy effect: In any organization, people with different sets of skills and expertise work together to develop the synergetic effect with the use of latest technology.  The benefit of working in a group is always higher compared to that of any individual work. Organizations make possible the complex activities completed more effectively. Team Spirit: The most important part of any organizations is the team spirit among the staff members. It always enhances the unity within the members of a particular organization. The culture of working in a team within an organization will also help to build the team player attitude among the individuals which in turn helps in the development of the society. In any public limited company it is a very important aspect towards its success. Attainment of Common goal:  Different individuals in every organization have different goals in respect of their social values. They join the organization in the expectation of the fulfillment of the same. A successful and effective Organization structure fulfills their goals by creating the suitable work environment, and simultaneously achieves the organizational goals with the individual goals. Economic Development:  With the help of the employment, purchasing power will increase as well as the organization has to pay tax which ensures more revenue collection for government. This revenue will help in the infrastructure development of the country like roads, hospitals etc. More over the success of organization directly helps country’s economy to grow farther. Along with that, employment generation is also a key part in the economic development for any nation. Employment generates income, income develops the purchasing power, purchasing power responsible for demand, and to meet that demand production should be increased. To produce more, additional employment is necessary. By this, any country’s economy get stronger. Minimize Economic Disparities: with the development of the organization and the country’s economy, people of the lower level get the opportunity to work and get remuneration. As a result the gap between different levels of the society in terms of economy gets reduced. Transfer and Adaptation of Technology: Any organization is involved in ongoing process of research to enhance its level of services. In this course, it adapts the latest technologies available in the market and indirectly it also imparts these technologies to the society through its members. So, with the above discussion we can conclude by saying that for the growth of any country’s economy it is absolutely necessary that they should have differentiation in the type of the organization as it always increase the competition among them and thus help the economy to grow further. Describe the Extent to which a Plc. Organisation (like SE) Meets the Objectives of Different Stakeholders. Stakeholders are the most important part of any organisation. Be it a public limited company or the private or the government organisation, the role of the stakeholders are very important as the company have to perform better keeping in my that the interest of the stakeholders is directly associated with their performance.According to Riley the term stakeholders can be defined as an individual or group of individual who are affected by the performances of the organization and also have an interest in the way the institution or the organization is being functioning. According to him, the stakeholders are broadly of three different kinds, internal stake holders (Director/ manager or the employees or the organization); connected stake holders (Customers, shareholders, suppliers, consultants etc) and the external stake holders (Government, local community). According to the report published by the CERES, the different aspects of the stakeholders are meeting differently by the public limited company depending on the nature and the importance of the group of the stakeholders. According to them, the government stakeholders want the organization to ensure that they keep up the rate of employment, human rights, and also the overall economic situation of the society. Keeping up the corporate social responsibility is also one of the major parts played by this organization. From the investor’s perspective, there main aim is to ensure quantify sustainability, management of risks and opportunities in their financial disclosures. These public organizations with their performance try to ensure that their sustainable performance could act as an indicator for the strong management, strong governance and long run thinking of the growth potential. According to the report published by the CERES, “Long-term investors reward companies that integrate sustainability into strategic planning. Sustainability based stock always acts as the benchmark of the corporate performance against peer companies, and place pressure on businesses to meet increasing expectations” (CERES, 9). These organizations also address the problem related to their staff and labors which is the key expectation that the labor unions have from this organization. The main role played by these organizations is to ensure that “the labor unions actively mobilize and represent their members through formal negotiations, engagement on public policy, and collaboration with other organizations that support common positions.”(CERES, 9) As per their discussion, the public limited companies also serve the expectation of different NGOs and the community groups as this is now considered to be one of the key performing parameters, i.e. corporate social responsibility. Every organization selects some or other field to serve for the community or the society where they are working to ensure that the stakeholder’s wishes are also being addressed. With the continuous good performance the organization also able to stand on the expectation of the suppliers as well as the consumers who have invested by different means in the organization. Apart from the external stake holders, these public sector companies also have to ensure that they are able to meet the expectation of their internal staff members. Employees are the key of success for any organization be it a public limited company or a private limited company. Organization which performs in the technical field have to ensure that there are enough scope of the development and research for their own employees so that they can explore their own knowledge for the betterment of their own career as well as the development of the organization.(CERES, 9). Explain the Responsibilities of an Organisation like SE and the Strategies Employed to Meet Them. Every organization has a role to play in the development of country’s economy as well in the social development. Be it a public sector company, or a private sector or the government sector all have different responsibility both for their staff, the stake holders, the society and the country from where they belong or where they operate. According to report published in Fleet Safe, every organization has the responsibility of taking care of their own staff and the stakeholders, and of the population where they are operating. Looking after the society and population is comes under the corporate social responsibility of the organization, where as the rest part is the general duty. Apart from these two, organization also has to contribute to the development of the country’s economical social development. According to their report, organization also have to ensure that the others specially the staff members, are the people across the office are not put under any kind of risk due to their activities. According to Bhatia the corporate social responsibility involves following key parameter which every organization have to maintain. These are: Considering business as a part of society, avoiding intervention of the government by creating proper collaboration between government and the organization, ensuring there is a balance of responsibility and power, ensuring that the impact of the internal activities of the organization do not have great impact on the external environment, protecting the interest of the shareholders, ensuring that the organization maintain a favorable public image, and have to make sure that the organization able to discovers new way to achieve profits (Bhatia,62). From the review of the strategies of the public sector companies it is very clear that whatever strategy they now adopt all keeping in mind the effect it will have in the long run. The strategy of the public sector companies are always keeping in mind the importance of their staff members, the suppliers, stake holders, the society and the country. According to Kickert et.al. “policy network” is one of the key method to determine the strategy for the public limited companies. In this approach the organization always look for the development of the strategy based on the policy which they adopted in order to achieve their financial goal as well as the social responsibilities (Kickert et.al ,16). According to the report published by the Department of Business Innovation & skills, UK; The strategy of the public sector companies can be classified broadly in to following heads. These are: developing strategic partnerships with industry, supporting the upcoming technologies, improving access to finance for businesses, working with the employees to help them develop skills and government contracts to provide confidence to business investment The industrial strategies have the aims to create an environment in which entrepreneurs find it more easy to start and grow there business, as well as the public sector companies can also compete with the private sector companies and to pursue demand-management policies which stimulate growth and maintain financial stability. Explain how economic systems like the UK attempt to allocate and make use of resources effectively. An economic system helps any society to meet people’s material needs. The economic system of any country develops with the production of goods and services. From the perspective of the country, production of goods and services are influenced by the supply of different elements like labor, land and natural resources and capital. If there is a scarcity of supply of resources means that the Government has to decide the allocation of these limited resources among competing claims, given the opportunity costs associated with the decision of producing a certain products and services within the economy systems instead of others. Different approaches or better to say that different economic systems are adopted by different countries depending on the structure of their own economy and labor law and the monetary policy . In an open market economy, intervention from the government is kept to the minimum to ensure smooth and non-partial functioning of the public limited companies as it has the ability to have influence in the overall decision making. Most decisions are based on market mechanism. According to the report published in NESTA by Pierrakis & Westlake, the success of any public limited company depends on various factors, economy of the country and the growth rate of the same is one of the major points among those factors. According to them, the growth of the public sector companies as well as the innovative business always dependent on whether there is a right financial architecture in place. The public limited companies sometimes require monetary help from the government and it is some time difficult if there is conventional debt finance in place. The open economy of the UK always helps the organization to grow further. The public limited companies tend to have intangible assets and ambitious growth plans that require large amounts of finance, which they able to have from the open economy of the country. According to them venture capital also play an important role in the development of public limited company. The effective UK economic system also helps to distribute the resource effectively all across the system. Effective delegation of resource is a key part behind the success of the public limited firms in UK. According to the authors, it is almost impossible to achieve the proper growth in the public sector companies of UK without proper deployment or resources, and there is also a vital and limited role that the government has to play in terms of resource deployment by applying the proper economic plan (Pierrakis & Westlake 4, 8). References Bhatia K. Sudarshan, Organization theory and designs, New Delhi, Deep and deep publications, 2009, print. CERES, The 21st Century Corporation: THE CERES Road Map For Sustainability, Creative Commons, 2010, Print. Cole A. Gerald Management Theory and Practice, Stamford: Cengage Learning EMEA, 2004, Print. Industrial strategy: government and industry in partnership, Department of Business Innovation & skills, 2013. Retrieved on 19.10.2013 from https://www.gov.uk/government/collections/industrial-strategy-government-and-industry-in-partnership Kickert J.M. Walter, et.al. Managing Complex Networks: Strategies for the Public Sector, New York: Sage, 1997, Print. Organization’s Responsibility, Fleet Safe, retrieved on 19-10.2013 from http://www.fleetsafe.org/why/responsibility.aspx Pierrakis Yannis & Westlake Stian, “Reshaping the UK Economy: The role of public investment in financing growth” NESTA, 2009 Riley Jim, Stakeholders; 2012; retrieved on 19.10.2013 from: http://www.tutor2u.net/business/strategy/stakeholders-introduction.html Singla R.K., Business Organisation and Management, New Delhi:FK Publications, n.d., Print Read More