QAforBMA101Week2tutorial.docVIP

What factors might make it difficult for a small organisation to operate efficiently and effectively? How might these factors be different to the factors that make it difficult for a large organisation to operate efficiently and effectively? Smaller businesses –run using owner-supplied capital Larger businesses – more likely to be funded using capital from share offerings, banks, investors ？Critical thinking Smaller firms - operate on narrow profit margins, so less spare financial resources to invest in growth or save the organisation from financial difficulties. Big size can be advantageous in terms of being flexible, e.g., a large organisation wants to change how it operates in a particular market, it can change that aspect of its operations while keeping everything else pretty much the same. This means fewer people are affected, it’s less disruptive overall, and if the change is unsuccessful then only part of the organisation is affected. If a firm operates in several industries or markets, then it is affected by a greater number of influences but less affected by each of them. So, if things are going poorly in one area, this can be offset by operations in another area. ? ? critical thinking: Managerial roles? Managerial skill? Entrepreneurship? Creativity ? Hardworking? How to grow for a small organization? Employee’s loyalty and commitment to small organizations? How to maintain talented employee? Owner and manager separated? Informal/less bureaucracy? ? Critical thinking: How to overcome these difficulties? Describe the functional and matrix organisational structures. What advantages and disadvantages does each structure have for facilitating communication? Functional Structure - this is the traditional structure where the organisation is divided into functional areas, divisions or departments, e.g. finance, HR, marketing, operations. The matrix approach combines aspects of both functiona