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Assignment Activity 1: Understand the organisation as an entity

AC 1.1 Describe the legal entity of a specified organisation and the implication of that legal entity on the structure and management of the organisation

An organisation created by a legal person provides it with an organisational framework, powers, and liabilities. If the specific organisation is an LLC, for example, it will operate as a different legal person from the owners, therefore no owner will be liable personally to their business creditors for its debt obligations. 

The organisation structure normally leads to operational management being performed by company-specific line executives while the board of directors oversees the governance of the entire organisation. Although the LLC offers flexibility in management, the LLC also requires regulatory conformity through annual reports and corporate taxes, which alters the compliance and management of the organisation.

AC 1.2 Describe the operational functions within an organisation

The operational functions within an organisation would contain various departments and activities to help the business achieve its objectives. Some of the fundamental functions are as follows:

  • Production/Operations: Creates goods or services, manages processes and resources and the quality for efficient satisfaction of the customers.
  • Marketing and Sales: Promotes brand awareness, attracts customers, and generates revenue by understanding customer needs and creating demand for a product or service.
  • Finance: The budget accounts, and financial planning function in the management will assure basic resource availability and follow the financial laws.
  • Human Resources: Recruitments, Training, Employee relations maintenance, and Performance for a productive workforce.
  • Customer Service: The role is to serve customers by responding to queries or complaints and ensuring satisfaction to create loyalty.
  • Research and Development: It creates new products or services or develops ideas to stay ahead of the competition and deliver the requested product in the market in the future.

AC 1.3 Identify own role, span of control and reporting line in an organisation using an organisational chart to illustrate

  • Role: Your specific position and main responsibilities within the organisation.
  • Span of Control: The number of people you directly manage.
  • Reporting Line: Who you report to and the chain of command.

An organisational chart can help visually illustrate these elements, showing where you fit in the structure, who you oversee, and your direct reporting line.

AC 1.4 Describe the roles and responsibilities of managers at different levels of an organisation

Different managers in an organisation have different responsibilities as follows:

  • Top-Level Managers (like the CEOs and executives): They include setting up of the vision of an organisation, strategic decision-making, resource allocation, and sometimes even molding culture.
  • Middle-Level Managers (including department heads): They agree to implement top management’s strategies and oversee various departments, allocate resources, and agree upon various coordination issues to be raised to higher-level management.
  • First-Line Managers (like supervisors): They are engaged in managing daily operations; supervising employees; ensuring quality; solving problems arising in the immediate course of their duty; and reporting to middle management.

Every level serves to ensure that the goals of the organisation are met through strategic direction, coordination, and effective operation.

Assignment Activity 2: Understand the context within which the organisation operates

AC 2.1 Identify the major external forces which impact upon an organisation

Economic Factors: Consumer expenditure and expenses are determined through economic development, rate of interest, and unemployment rate

Political and Legal Factors The Government’s policies and regulations as well as political stability create decisions related to operation and compliance requirements.

Social and Cultural Factors Demography, culture, educational level, etc contribute to the quality and behavior of consumers in the workplace

Technological Factors Technology advancement, digitization, and automation require innovation and result in the process of operational activities.

Environmental Factors: Climate change, resource availability, and natural disasters affect the sustainability effort and chain.

Competitive Forces: This is influenced by the intensity of the rivalry among existing firms in an industry, also by the bargaining power of buyers and suppliers, and finally, by the threat of new entrants and substitute products.

AC 2.2 Prepare a PESTLE analysis of an organisation

A PESTLE analysis is a tool used to evaluate external factors affecting an organisation. It stands for:

  • Political: Government policies, regulations, and political stability.
  • Economic: Economic conditions like inflation, exchange rates, and consumer spending.
  • Social: Social trends, demographics, and cultural factors.
  • Technological: Technological advancements, innovation, and infrastructure.
  • Legal: Laws and regulations related to employment, health, safety, and intellectual property.
  • Environmental: Ecological factors like climate change, sustainability, and environmental regulations.
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