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DG99 04 Managing People and Organisations Scottish Qualifications Authority 2004 1 Barbour Brown Engineering Ltd Section A Starting up Outcome 1 Barbour Brown Engineering Ltd a firm of consulting engineers was set up by David Barbour and Neil Brown 14 years ago in a main town within a large rural area Initially the firm concentrated solely on civil engineering projects such as road and sewer developments for the increasing number of private housing developments which were springing up During the 1980s Neil and David had both worked for a large city firm Floyd and Fleming Ltd which had an office in the town David had been branch manager and Neil a younger and very enterprising individual headed up the structural development section before spending two years working in the Middle East In 1989 Floyd and Fleming Ltd decided to close the branch office and concentrate their business in the city Neil had recently returned from working in the Middle East and had enjoyed the freedom and flexibility of being his own boss He discussed with David the possibility of continuing to offer the engineering consultancy service in the town under a new joint partnership David had local experience and was aware that there were sufficient smaller projects to sustain the firm s viability He also had savings and equity that could be used for a management buy out Neil likewise had savings acquired through his work abroad With these resources the pair had enough capital to buy the offices that housed the current Floyd and Fleming business A business plan was drawn up to secure additional funding to buy over the business Funding to support this venture was acquired through a bank loan and a grant from the then Scottish Development Agency The management buy out was agreed on the condition that they would not accept or carry out work within the central belt for a period of five years In 1990 the new firm of Barbour Brown Engineering Ltd opened The team comprised David Neil and two other qualified engineers Jack a recent high flying graduate and James a 30 year old engineer who had not as yet completed his full charter In addition there were two qualified technicians and one apprentice technician DG99 04 Managing People and Organisations Scottish Qualifications Authority 2004 2 Assessment task 1 Section A Outcome 1 1 With reference to the firm in the case study describe the basic components of a work organisation 2 aUsing a recognised classification explain the importance of the four main goals of the organisation in the case study bIdentify examples of objectives and policy from the case study and comment on how effectively you believe they have been implemented 3 Using an open systems diagram describe how the organisation in the case study interacts with its external environment 4 All organisations have stakeholders Give examples of the main stakeholders of this organisation giving reasons for your answer You should identify at least four stakeholders 5 Outline four strategies for controlling staff Identify the one used by David Barbour DG99 04 Managing People and Organisations Scottish Qualifications Authority 2004 3 Assessment Checklists Unit Assessment Candidate s Assessment Record DG99 04 Managing People and Organisations ClassHuman ResourcesGroup Candidate Name 曲宪 Qu Xian Candidate ID Outcome 1 Evidence RequirementsRecord of Performance Satisfactory Unsatisfactory Comments Assessment Task 1 Section A Define the term organisation Describe the key elements of the formal and informal organisation Or Use Systems Theory diagram to describe the internal and external environment of an organisation Using recognised classification explain the importance of organisational goals objectives and policy Identify at least four stakeholders of an organisation and explain why they are considered such Describe four different strategies of control in organisations and explain which one had been applied Enter S or U in the box to indicate whether performance in the relevant aspect of the assessment is satisfactory or unsatisfactory The comment column can be used to highlight any re assessment that may be needed Assessor s signature Date DG99 04 Managing People and Organisations Scottish Qualifications Authority 2004 4 Assessment task 1 Section A Outcome 1 1 The basic components of a work organisation First organisations are made up by people They have purposes they use resources human and non human to achieve their purposes They perform activities in a planned and controlled manner For example David and Neil who ran their company that employed two qualified engineers two qualified technicians and one apprentice technician for the new firm of them Neil and David were employed by a large city firm during the 1980s Second organisations have their own goals Goals of organisations operating in the private sector generally revolve around the maximisation of profits for the owners However some organisations also have other objectives that they may purpose in the short term For instance Neil discussed with David the possibility of continuing to offer the engineering consultancy service in the town Plans that apply to the entire organisation that establish the organisation s overall objectives A new business plan was drawn up for their new engineering consultancy service in the town which could be found in the text Finally the most important factor is the framework of the organisations It affects the organisation to achieving the goals The internal and external environments of the organisation have an effect on the organization structure Evidenced by Neil and David designed civil and engineering structures They firstly want to continue to offer the engineering consultancy service in the town and then accumulated the savings and equity With these resources the pair had enough capital to buy the offices and eventually drawn up a business plan to secure additional funding to buy over the business They structured the engineering designs for employing different people to effectively manage the staffs 2 a Goals help the organisations to identify who is the person to set up the goals what is the content of the goals when is the goals to carry out how is the goals to achieve why the goals should be realized This case study should provide a specific objective to achieve and assess for the firm It lacks of these information They are 4 main goals the organisations 1 Operational goals which cover areas such as staffing levels or technology to be used It is better to design a plan for manage the staff such as they can control their whereabouts at any time and check their working conditions They will ensure that any investments we make are environmentally sound so they could have an agreement with the local contractors for development 2 Product goals it ignores people because it concerns more about the product Therefore using the effective approaches becomes the key point for training well the staffs In this way people devote themselves to working and the best designs will be created 3 Consumer goals Providing high quality service and maintain a suitable price are to be considered by Barbour Brown Engineering Ltd In this way consumer will purchase product with satisfaction and continue to buy It is benefit for both the consumers and the engineering company 4 Secondary goals As we know secondary goals are not the most important things that they would like to achieve but nevertheless important Sometimes secondary goals can include making a profit after the more important goal of survival DG99 04 Managing People and Organisations Scottish Qualifications Authority 2004 5 b Objectives Because the new firm of Barbour Brown Engineering Ltd has been opened objectives should be effectively carried out First they must ensure that staffs are well trained for example engineers technicians and apprentice technician in the new firm have to be trained Second every personnel must complete works punctually Work efficiency will be improved by restricting time of theirs A track of ongoing products is to be kept if the company has to develop rapidly and steadily A useful timesheets can make the project clearly and systematically Policy These provide a framework of rules and guidance within which management and staff can make decisions They may be based on explicitly stated values First the staffs and managers should be complete the timesheets in common Second one of the policies to train the staffs is using local training providers Third policies generally reflect the values of the major stakeholders All works can be allotted by David or Neil Finally if the financial apartment needs to invoice then their invoice work at quoted price 3 Input Process A Get help from clients during work A Liaison between clients B Get capital from bank B Arrangement of projects C Have the staffs qualified C Assistance of Administration Output A Satisfy the clients B Train the staff C Produce the designs 1 Political Factors Bank suddenly increases the price of credits So if they get a lot of money from bank it is maybe hard to pay back and limit the development of this firm 2 Social Factors If the educational level of this area is limited the staffs that are qualified of this kind of job will be deficient 3 Economic Factors If the quantity of client in demand is large it exist competition about the costs of engaging clients 4 Technology If the firm don t improve the production efficiency in accordance with the original method Other competitors will catch up with the firm or overtake Consequently it is necessary to use the automated production 5 Potential future scenarios Interests rate maybe rise from year to year It will have an effect on circulating capital 6 Environment Large number of designs during production may result in the pollution Perhaps sound of complains destroy the image of the firm Such as people doubt if the designs are good for their health DG99 04 Managing People and Organisations Scottish Qualifications Authority 2004 6 4 Main stakeholders 1 Employees Employees are primarily interested in job security This group is a vital resource of the organisation and as such without their continued efforts the organisation would not be able to survive They contribute to the wealth of the organisation and are keys to its success For example allocate position effectively efficient training satisfactory income 2 Suppliers engineering contractors Suppliers similar to customers are likely to wish to maintain a good relationship with the organisation since there may be a monetary reward involved For instance offer jobs for them make a good agreement in corporate benefits 3 Clients Although it is not included in the major stakeholders clients deal with some procedures for architects Offering a kind of service for them could achieve corporate objectives 4 Finance providers Financiers look at an organisation as a potential money earning instrument For example large banks they are unlikely to invest if they do not think that there will be any financial gain or reward for themselves Therefore it is a good way to add source of income by increasing interest charges 5 Train providers Providers are more care about their jobs especially their income For one thing the firm trains the providers with purpose the efficiency of work will enhance For another providers are interested in their jobs they dedicate themselves to their work seriously 5 In order for the organisation to reach its goals It is normally necessary for some form of control to be used to regulate what is done on a day to day basis Organisation control is the imposition of processes procedures and standards upon an operation in terms of machinery or personal interactions In ensuring that controls are maintained an organisation s leaders will set and monitor standards introduce plans and strategies measure actual performance and take correct actions 1 Bureaucratic control For example David and Neil check and monitor the efficiency
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