Professional Documents
Culture Documents
Organ Is at Ions
Organ Is at Ions
a) The number of shareholders. Most private companies are owned by only a small
number of shareholders. Public companies generally are owned by a wider
proportion of the investing public.
b)Transferability of shares. Shares in public companies can be offered to the general
public. In practice this means they can be traded on the stock exchange. Shares in private companies, on
the other hand, are rarely transferable without the consent of the shareholders,
c) Directors as shareholders. The directors of a private limited company are more likely
to hold a substantial portion of the company’s shares than the directors of a public
company.
d) Source of Capital
a. A private company’s share capital will normally be provided from three
sources
i. The founder or promoter
ii. Business associates of the founder or employer
iii.Venture capitalists
b. A public company’s share capital, in addition can be raised from the public
directly, or through institutional investors, using recognised markets.
Many companies start in a small way, often as a family businesses which operate as private
companies, then grow to the point where they become public companies and can invite
investors to subscribe for shares
Advantages and disadvantages of limited companies
Advantages
•
More money available for investment
•
Reduces risk for investors thanks to limited liability
•
Separate legal personality. A company can own property, make contracts etc.
•
Ownership is legally separate from control. Investors need not get involved in
operation.
•
No restrictions on size. Some companies have millions of shareholders
•
Flexibility. Capital and enterprise can be brought together.
Disadvantages
•
Legal compliance costs. Because of limited liability , the financial statements of most
limited companies have to be audited , and then published for shareholders
•
Shareholders have little practical power, other than to sell their shares to a new
group of managers, although they can vote to sack the directors.
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Organisational structures
•
Entrepreneurial. Boss + workers
Smallest
•
Functional. Separate departments according to function
Information
What is information?
Accurate
•
Accurate
•
Complete
•
Cost beneficial
•
User targeted
•
Relevant
•
Authoritative
•
Timely
•
Easy to use
Role of Information Technology
•
Recent developments in IT have had a massive impact on the way we work.
•
New communication channels
•
Office automation
•
Home working
Types of System
•
Transaction processing system
•
Management information system
•
Decision support system
•
Executive information system
Information Technology
•
Stand Alone
•
LANs
•
WANs
•
Internet
•
Intranet
•
Extranet
Strategic
-Highly summarised
Planning
Ad hoc
Historical
Recording transactions
Routine
Internal
Chapter Roundup
– A non-governmental organisation (NGO) is an independent voluntary
association of people acting together for some common purpose (other than
achieving government office or making money).
○ Quantity
○ Quality
○ Price
○ Delivery
– The production function pans, organises, directs and controls the necessary
activities to provide products and services, creating outputs which have addd
value over the value of inputs.
– Services are intangible, cannot be stored, are inherently variable in quality
and nature and their purchase results in no transfer of property. The people
and processes involved in providing them are therefore of paramount
importance.
– He marketing function manages an organisation’s relationship with its
customers
Information is a valuable resource and a key tool in the quest for a competitive
advantage. Security controls, integrity controls and contingency controls are used to
protect data and information.
Influences on Organisation Culture: Chapter Round Up
Culture is the collective programming of the mind which distinguishes the members of one category
of people from another (Hofstede). It may be identified as ways of behaving and ways of
understanding that are shared by a group of people.
Elements of culture include:
– Observable behaviour
– Underlying values and beliefs which give meaning to the observable elements
– Hidden assumptions, which unconsciously shape values and eliefs
Organisation culture is ‘the way we do things round here’
Cultural values can be used to guide organisational processes without the need for
tight control. They are used to motivate employees, by emphasising the heroic
dimension of the task. Culture can also be used to drive change, although – since
values are difficult to change, it can also be a powerful force for preserving the status
quo.
Harrison classified four types of culture, to which Handy gave the names of greek
deities.
– Power culture (Zues) is shaped by one individual
– Role culture (Apollo) is a bureaucratic culture shaped by rationality, rules and
procedure.
– Task culture (Athena) is shaped by focus on outputs and results
– Existential or person culture (Dionysus) is shaped by the interest of
individuals.