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Chapter 1 Defintions
| Term | Definition |
|---|---|
| stakeholder | individual or group that has a direct or vested interest in the activities of an organisation |
| organisation | two or more people who work together in a structured way to achieve a specific goal or set of goals |
| decision making | a multi-step approach whereby a selection is made between a range of different alternatives |
| networking | using connections gained through business, sport, school and other activities |
| formal structure | the official division of responsibilities, authority, task and lines of communication within an organisation |
| informal structure | actual happenings in an organisation in relation to division of responsibilities, authority, tasks and lines of communication as opposed to what is formally stated |
| asset | something that is owned or controlled by a business that is of monetary value |
| strategic planning | long term (2 - 5 years) planning undertaken by senior management to achieve corporate objectives |
| corporate objectives | long term objectives of the organisation which provide focus and direction |
| human resources | the employees of an organisation, referred to as the most important asset |
| organisational chart | diagram showing the liens of authority and levels of hierarchy in an organisation; defines relationships between people in an organisation |
| synergy | working together to achieve a common goal; the sum of all parts is greater than the individual parts |
| chain of command | the vertical line of authority that passes command down through the levels of an organisation's hierarchy |
| chief executive officer | the most senior management position in an organisation |
| hierarchical structure | different levels of management and staff, with higher levels exercising greater authority and control |
| decentralisation | power and decision making authority are delegated from the head office to lower levels down the hierarchy |
| specialisation | concentration on one specific part of the production process |
| open market economy | an economy that operates freely without government intervention; the market is driven by the forces of supply and demand |
| multinational corporation | a business that has its head office in one country, but operates in other countries as well |
| joint venture | the setting up of a business enterprise by two or more business to achieve a particular venture |
| takeover | the means by which an organisation becomes larger by purchasing a controlling share (at least 50.1%) in another business |
| merger | an agreement between two or more organisations to join together to form one united business |
| demerger | a company spins off some business it owns to form a completely separate company. The opposition of acquisition |
| diversification | the process of entering new markets and/or developing new products |
| dual-listed company | a structure that occurs when two companies merge but retain their original listing on two stock exchanges |
| dividend | a portion of the net profit paid to shareholders |
| public sector | part of the economy that is operated by the government |
| private sector | part of the economy operated by private individuals and companies, either private (PTY LTD) or public (LTD) |
| government business enterprise (GBE) | a business that is government owned and operated; GBEs seek to run profitably by controlling costs and selling their goods and service sat a price to cover costs |
| corporatisation | government business are incorporated, given a corporate identity and are run along the lines of companies, requiring them to be fully accountable for expenditure, pay tax, seek profit maximisation and increase efficiency |
| privatisation | the process of selling a public sector business to the private sector |
| objectives | targets or outcomes that an organisation aims to achieve |
| SMART principle | outlines that goals/objectives must be specific, measurable, achievable, relevant and time bound |
| mission statement | a global statement that reflects an organisation's reason for being or purpose and the way in which it will be managed |
| vision statement | a statement that outlines the aspirations of the organisation |
| values statement | a statement that outlines what the organisation sees as its corporate vcalues |
| strategic objectives | important long-term (2-5 years) of an organisation; established for a entire organisation by its senior management |
| tactical objectives | mdeium term objectives (1 - 2 years) established by departmental managers for their area of responsibility |
| operational objectives | objectives established by front-line managers for their work team or area of responsibility with a daily, weekly or monthly time span |
| financial objectives | objectives relating to the financial performance of an organisation |
| service objectives | an organisation's desire to provide a stated service either to its clients/customers or to the community at large |
| social objectives | objectives relating to the level of participation in and contribution towards the community/society |
| environmental objectives | objectives relating to an organisation's use of resources and degree of environmental impact |
| strategy | a plan of action that aims to achieve a specific objective |
| performance indicators (PIs) | a set of measure that help a company determine whether it is reaching its performance and operational objectives |
| hierarchy of objectives | the aims and objectives of an organisation placed in descending order of importance |
| management | the process of planning, organising,leading and controlling the work of subordinates to achieve organisational objectives |
| capital | funds invested in a business, which form one of the main inputs for the production process |
| gross domestic product (GDP) | the total value of output produced in a country in one year |
| downsizing | a reduction in a company's workforce through elimination of jobs, generally made to improve an organisation's profit |
| outsourcing | process of using another business to undertake some task or work process |
| balance of payments | annual record of Australian trade and financial transactions (export/import)with the rest of the world |
| infrastructure | physical resources of an area (e.g. power, transport, utility services, that benefit the entire community |
Created by:
johnmartinez
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