Advanced Engineering

Management
Organisations

Examples:

Multinational car company (e.g. Ford)

Examples:
Multinational car company (e.g. Ford)
An accountancy firm (e.g. PWC)

PWC Building

Examples:
Multinational car company (e.g. Ford)
An accountancy firm (e.g. PWC)
A charity (e.g. Oxfam)

Examples:
Multinational car company (e.g. Ford)
An accountancy firm (e.g. PWC)
A charity (e.g. Oxfam)
A local authority (e.g. Cardiff CC)

Examples:
Multinational car company (e.g. Ford)
An accountancy firm (e.g. PWC)
A charity (e.g. Oxfam)
A local authority (e.g. Cardiff CC)
A trade union (e.g. AEEU)

Unison Members

Examples:
Multinational car company (e.g. Ford)
An accountancy firm (e.g. PWC)
A charity (e.g. Oxfam)
A local authority (e.g. Cardiff CC)
A trade union (e.g. AEEU)
An army (e.g. the British army)

What do they have in

common?
An organisation is a social arrangement
which pursues collective goals, which
controls its own performance and which
has a boundary separating it from its
environment
How does this definition apply to some
of the above organisations?

How does this definition apply to some of the above

organisations?

Characteristic
Social arrangement
Individuals gathered
together for a purpose

Ford

The Army

How does this definition apply to some of the above

organisations?

Characteristic
Social arrangement
Individuals gathered
together for a purpose

Ford
People work in
different divisions
making different
vehicles

The Army

How does this definition apply to some of the above

organisations?

Characteristic
Social arrangement
Individuals gathered
together for a purpose

Ford
People work in
different divisions
making different
vehicles

The Army
Soldiers in
different regiments
with a chain of
command from the
top to the bottom

How does this definition apply to some of the above

organisations?

Characteristic
Collective goals
The organisation has
collective goals over
and above those of
the people working
within it

Ford

The Army

How does this definition apply to some of the above

organisations?

Characteristic
Collective goals
The organisation has
collective goals over
and above those of
the people working
within it

Ford
Sell vehicles and
make money

The Army

How does this definition apply to some of the above

organisations?

Characteristic
Collective goals
The organisation has
collective goals over
and above those of
the people working
within it

Ford
Sell vehicles and
make money

The Army
Defend the country
Defeat the enemy
International
peace keeping

How does this definition apply to some of the above

organisations?

Characteristic
Controls performance
Performance is
monitored against
the goals and
adjusted if necessary
to ensure they
are achieved

Ford

The Army

How does this definition apply to some of the above

organisations?

Characteristic
Controls performance
Performance is
monitored against
the goals and
adjusted if necessary
to ensure they
are achieved

Ford
Costs and quality
are reviewed and
controlled.
Standards are
constantly improved

The Army

How does this definition apply to some of the above

organisations?

Characteristic
Controls performance
Performance is
monitored against
the goals and
adjusted if necessary
to ensure they
are achieved

Ford
Costs and quality
are reviewed and
controlled.
Standards are
constantly improved

The Army
Strict
disciplinary
procedures and
training

How does this definition apply to some of the above

organisations?

Characteristic
Boundary
The organisation
is distinct from
its environment

Ford

The Army

How does this definition apply to some of the above

organisations?

Characteristic
Boundary
The organisation
is distinct from
its environment

Ford
Physical:
factory gates
Social:
Employment
status

The Army

How does this definition apply to some of the above

organisations?

Characteristic
Boundary
The organisation
is distinct from
its environment

Ford
Physical:
factory gates
Social:
Employment
status

The Army
Physical:
barracks
Social:
different rules
than civilians

How do large organisations

differ from small ones?
Organisations are preoccupied with
performance
Organisations contain formal,
documented systems and
procedures which enable them to
control what they do.
Within the organisation different people
do different things, or specialise in
one activity.

How do large organisations

differ from small ones?
Organisations pursue a variety of goals
Most organisations obtain inputs and
process them into outputs.

Characteristics of large
organisations
Max Weber coined the term
bureaucracy
A bureaucracy is a large organisation of
any kind (public or private) which has
special features not found in small
organisations
Is bureaucracy a good thing or a bad
thing?

Bureaucracy
A set of prescribed rules and
administrative regulations which provide
guidance for its members and ensures
that uniform standards are maintained.
An arrangement of individual jobs into a
hierarchy in which different levels of
graded authority are recognised.

Bureaucracy
A system of written records which
provide precedents to guide actions in
the future.
A system of positions through which the
work is carried out, called executive
roles.

Bureaucracy
A system of positions whereby power
and authority are distributed in such a
way as to enable the organisation to
achieve its objectives.
Power - capacity to change individuals
behaviour
Authority - legalised power, which in a
business derives from the owners who
provide the company resources.

How do organisations differ?

Ownership - public or private
Control - The owners themselves,
employees, government sponsored
regulators.
Activity - What they do; manufacturing,
healthcare
Orientation - profit, non-profit

How do organisations differ?

Legal status - sole trader, partnership,
limited company, public company
Sources of finance - Borrowing,
government funding, share issue
Technology - High or low; Microsoft Vs
the corner shop.

How is an organisation divided

up?
Within a typical organisation, many
different types of activity are carried
out.
Purchasing materials and components
Carrying out operations on them to
produce something
Research and development (R&D)
Taking orders

How is an organisation divided

up?
Planning
Employing people and paying them
Carrying out operations on them to
produce something
Co-ordinating all of the above to
achieve the organisations goals

How is an organisation divided

up?
Clearly, this takes a lot of people who
need to be grouped together in some
way. This leads to the formation of an
organisation structure
Definition: An organisation structure is
the framework of formal work
relationships between people in an
organisation.

Responsibilities

An organisational structure is
a framework which
Links individuals
Allocates the tasks
Allows for authority and control
Coordinates separate units
Facilitates the flow of work

How can we departmentalise

organisations?
Function
Geography
Project
Product / Brand
Market segment
Hybrid
Divisionalisation

Know your place

The chart aids designing, expressing
and understanding the shape and
structure of an organisation
Traditional way of of pictorially
expressing the various relationships
between individuals, groups and
departments.
Formal communication and
reporting channels

Know your place

The structure of authority and
delegation; responsibility and
accountability.
The hierarchy of the organisation

What are the limitations of

organisation charts?
Impression - not what really happens
Static models - organisations are
dynamic, they change
Show formal, not informal relationships
or networks
Other aspects may be more important
They do not measure efficiency.

What is the organisation for?

Mission:
The companys mission statement
describes its basic function in society.
Examples
Guinness
The British Film Institute
Cardiff University

What is the organisation for?

Guinness Group Mission:

Guinness plc is one of the worlds leading drinks
companies, producing and marketing an unrivalled
portfolio of international best-selling brands, such as
Johnnie Walker, Bells and Dewars Scotch whiskies,
Gordons and Tanqueray gins, and Guinness stout
itself the worlds most distinctive beer. The strategy
is to focus resources on the development of the
Groups alcoholic drinks business. The objectives are
to provide superior long-term financial returns for
shareholders., to create a working environment in
which people can perform to their fullest potential;
and to be recognised as one of the worlds leading
consumer brand development companies.

What is the organisation for?

BFI Mission:
The BFI is the UK national agency with
responsibility for encouraging and conserving
the arts of film and television. Our aim is to
ensure that the many audiences in the UK are
offered access to the widest possible choice
of drama and television, so that their
enjoyment is enhanced through a deeper
understanding of the history and potential of
these vital and popular art forms.

What is the organisation for?

Cardiff Universitys Vision:

To be a world-class university
Its Mission: To pursue research of international
excellence and research-led learning and teaching of
the highest quality.
4 aims covering:
Research
Learning and teaching
The University and the region
The supporting environment for Staff and Students.

What is the organisation for?

Below the mission are goals, aims and
objectives.
Goals:
The intention behind decisions or
actions (Henry Mintzberg)
A desired end result (Shorter Oxford
English Dictionary)

What is the organisation for?

Goals: there are 2 types:
Aims - non-quantifiable
Objectives - quantifiable (SMART)
Objectives are useful because they are:
Reference points regarding peoples
work
Yardsticks to measure performance
Motivators

Levels of objectives

Primary and financial objectives:

Stay in business, make a profit, growth,
cash flow.

Secondary aims
an improved quality product, improved
service, increased market share etc.

Non-profit organisations would have

other aims. Examples?

Levels of objectives

In a complex organisation there will be

a hierarchy of objectives:
Organisation split into divisions
divisions split into departments
department split into work groups

Levels of objectives

Example, a holiday company:

Organisation - survive and prosper in the
holiday market
Sales dept - Achieve a 10% p.a. increase in
turnover
High street shop - achieve X turnover in
the next financial year.

How is time related to each level of

objectives?

Critical External Relationships

There are various ways in which the
environment is related to an
organisation
SLEPT factors
Opportunities and threats
Resources

Critical External Relationships

Stakeholders, interest groups and
pressure groups
Stakeholder: a person, group or
organisation with an interest in what
the organisation does.

Stakeholders
3 broad types:
Internal - employees, managers
Connected - investors, shareholders,
customers, suppliers, financiers
External - the community, government,
pressure groups

Guided Study
Read article on Organigraphs
(Copies available in the Teaching
Office)