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WELCOME TO BUSINESS ADMINISTRATION

David Golden Click to edit Master subtitle style davidgolden001@gmail.com


FETAC LEVEL 5

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PURPOSE OF THIS MODULE

TO PROVIDE AN UNDERSTANDING OF ORGANISATIONS AND THEIR ADMINISTRATIVE FUNCTIONS. DEVELOP PRACTICAL SKILLS NECESSARY TO PERFORM ADMINISTRATIVE DUTIES. ALSO TO PREPARE FOR FURTHER STUDY IN RELATED AREAS.
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GENERAL AIMS

Understand the features of an organisation. Appreciate the impact of the factors which affect an organisation. Understanding financial aspects of Business Organisations Appreciating legal aspects of organisations. Undertaking stock control duties Process business documents accurately and 4/28/12 efficiently.

COURSE OVERVIEW Module is Made up of 5 Units


Unit 1. The Organisation Unit 2. Finance, Money, Banking, Fgn Ex Unit 3. Human Resources Unit 4 Preparing for Meetings Unit 5. Processing Business Documents

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Assessment

Assignment 1. 30% - Collect, present relevant information . Analyse an organisation. Discuss range of issues in relation to organisation and present your findings. Assignment 2. 30% - Processing documents correctly, accurately and using appropriate letters. Exam 40% answer 4/5 questions

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Sources of Reference

Effective Business Communications

Hildebrandt & Murphy 1991 Organisational Behaviour Hellriegel, Slocum, Woodman 1995 The Interpersonal Communication Book De Vito 1992 Business Administration Douglas 2008 Modern Business Administration

www.retailexcellence.ie

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Learning Outcomes for Unit 1. The Organisation


IDENTIFY DIFFERENT TYPES OF ORGANISATIONS IDENTIFY DIFFERENT FEATURES OF ORGANISATIONS LIST DEPARTMENTS WITHIN ORGANISATIONS DESIGN AN ORGANISATION CHART LIST ENVIORNMENTAL FEATURES THAT IMPACT ORGANISATIONS

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Unit 1. Learning Outcomes Contd


IDENTIFY MAIN FUNCTIONS OF MANAGEMENT EXPLAIN IMPORTANCE OF EFFECTIVE COMMUNICATION EXPLAIN THE NEED FOR QUALITY OUTLINE QUALITY CONTROL TECHNIQUES LIST QUALITY AWARDS
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Time Out

For your interest learn something new about yourself. VAK questionnaire

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Back to Work!

Lets come up with a Group Contract

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Part 1. Aims to Cover

1.1 To identify different types of organisation 1.2 look at distinguishing features of each organisation type 1.3 list the different departments in an organisation and discussed their role. 1.4 Identify and design an organisation chart.
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What is an Organisation?

A system of Co-operative Human ActivitiesBernard Organising involves dividing up tasks, allocating tasks best, coordinating and monitoring to achieve agreed aims. As we learn more about organisations please consider what type of organisation appeals to you and why. Whats it like to work in different organisations? What is Business? Please Discuss.

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1.1 Identify Types of Organisations


Sole Trader Partnerships Private limited Companies Public Limited Companies Charities Co Operatives Partnerships Semi-State Bodies Government Bodies
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Societies

Key Principles that dictate the shape of an Organisation

Unity of purpose and Command everyone knows who they are answerable to. Amount of Delegation A high level of dividing up responsibilities leads to more levels. Size of Organisation The larger the organisation, the taller the shape as a greater division of work and delegation is required. Number and type of Employees The larger the organisation the greater the number of levels of authority. Span of Control One Superior and a varying number of subordinates. The wider the span, the fewer the levels of authorityA narrow span will create a tall structure

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1.2 Other factors determining organisational design


1.

FORMAL

Designed to achieve a specific goal Division of responsibilities to specific groups Clear chains of authority, delegation, communication e.g. Banks, Colleges 2. INFORMAL Operates alongside formal framework More Flexible and Spontaneous Social Groups form informally to get things done Q. Which of the following structures in your opinion is more efficient?
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TALL ORGANISATIO N STRUCTURES


1.2 IDENTIFY CHARACTERISED BY LARGER BUSINESS, SPECIALISATION, DELEGATION, GREATER NUMBER OF EMPLOYEES AND EMPLOYEE TYPE NOTE : NARROW SPAN OF CONTROL

TALL ORGANISATION STRUCTURE


ADVANTAGES :

Greater Economies of Scale (bigger) Greater Efficiency Greater Turnover

DISADVANTAGES :

Communication Problems (Both vertical and horizontal) Too many levels More informal, less friendly
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Slower Decision Making

FLAT ORGANISATIONAL STRUCTURE


1.2 IDENTIFY CHARACTERISED BY SMALLER BUSINESS WITH SMALL NUMBER OF EMPLOYEES, FEWER LEVELS OF AUTHORITY, WORK PASSES THROUGH A FEW HANDS NOTE: WIDE SPAN OF CONTROL

FLAT ORGANISATION STRUCTURES


ADVANTAGES ;

QUICK COMMUNICATION (VERTICAL ONLY) TOP MANAGEMENT CLOSER TO GROUND TO ENSURE PRODUCTIVITY GREATER PERSONAL CUSTOMER ATTENTION

DISADVANTAGES :

LESS SPECIALISATION SMALLER ECONOMIES OF SCALE LOWER TURNOVER, GROWTH CAPABILITIES RESTRICTED
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1.1 Features of Each Business Organisation Type


Features/Characteristics of each. What types of activities do Organisations engage in? Advantages/Disadvantages of each.

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Advantages of Sole Trader

Fast Decision making ability no consultations needed. Keeps all profits, no profit share. Flexible hours, control over time. No industrial relations issues. Promotes customer loyalty with friendly personal service Suits family-run business.
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Disadvantages of Sole Trader

Unlimited Liability He/She is personally liable for all debts and the business is not a separate legal entity. Higher Trading costs no bulk buying discounts leading to higher selling prices. This can lead to a reduction in sales. More Limited Sources of finance Expertise required in all areas Administration overload may lead to tax liabilities
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Finance for Sole Traders

Loans from financial institutions e.g. Commercial mortgage Long term Business Loan Medium term Personal Savings Hire Purchase (for equipment) Suppliers Credit terms (30 days) Overdraft Short term Credit Card Short term

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Now for a Video

A different perspective on Sole Trader and organisations.

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Sample Questions Sole Trader


-Outline 3 advantages and 3 disadvantages of the Sole Trader -How does Registration of Business names act 63 apply to sole trader? -Why are sole Traders selling prices higher than those of a larger trader? -Which sole traders can you identify from your local area?
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Partnerships What are they?

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A Definition

An association of two or more partners who take part in a common undertaking. They share profits and risk.

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1. 2. 3. 4.

An association of two or more who take part in a common undertaking Features of Partnerships Must register u Business Names Act 1963
Safety, Health and Welfare and Work Act applies Accounts must be kept in order Deed of Partnership drawn up or covered under agreement Partnership act 1890 -equal share of profits/losses - no new partners without all consent Disputes to be settled by majority Equal access to accounts/profits calculated before loan interest.

5.

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Features of Partnership contd.


6. Unlimited liability one may have to cover another out of private funds. Not a separate legal entity/risky 7. Dissolution Procedure (i) Assets revalued and sold (ii) Creditors paid (iii) Left over P/L divided in ratio (iv) Option of becoming sleeping or quasi. 8. What objectives would a partnership have? 9. There are Four Types of Partners
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The 4 Types of Partnerships


i. Active Participates fully in the business. ii. Sleeping Contributes capital but no day to day input iii. Quasi Retires and leaves money in the business as a loan. Interest is paid once profits have been calculated. iv. Limited Whose liability is limited to amount of capital invested.

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Advantages of Partnerships

Greater Capital and Size Greater Specialisation and range of talents/synergy Division of and reduction in liability of debt Consultative decision makingtwo heads Privacy as accounts not published Still able to give customer service and gain loyaltygoodwill
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Disadvantages of Partnerships

Unlimited Liability (unless a ltd partner) so partners may be financially liable. Not a Separate legal entity so owners can be sued personally Decisions maybe slower and cause inefficiencies Automatic Dissolution on Death (insurance) No new partners unless full agreement could lead to slower growth

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Sample Questions Partnerships


- The business is not a separate legal entity, What is meant by this? - What is the purpose of the partnership act 1980?
-

Explain the difference between active, sleeping and quasi partners. Why would a partnership dissolve?

- Outline 3 advantages and 3 disadvantages of partnerships?


-

When a partner dies what procedure follows? Can you identify any partnerships operating locally in your area?
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Recap to date

Course Aims, Overview and Assesments Completed Learning Style Questionnaire What is an Organisation, Business, Business Administration? Listed the different Organisation type and Key Principles that dictate organisation type Identified Tall and Flat Organisation structures Discussed Features, Advantages, Disadvantages of Sole Traders (Video) and 4/28/12

Features of Limited Companies

Limited Liability Indicates that the company is a legal entity separate from the owners. Regarding debts, the company is sued, not the owners. Legally formed Memorandum of Association (General) Company name, objectives, office location signed and witnessed. Articles of Association (Specific) contain a list of internal rules of organisation wrt voting rights, powers and duties of directors and meeting procedures.
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Forming a Private Limited Company


1. 2.

Decide company name (check with CRO). Complete Forms A1, Memorandum of Association and Articles of Association forms Draw up documents legally Documents inspected by Registrar to check compliance with companies act 1983 Registrar issues a Certificate of Incorporation Commence Business with limited liability

3. 4.

5.

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Converting from Private to Public


1. .

Must Satisfy following conditions Have a minimum of a quarter of the authorised capital offered to the public. Have a minimum market value Have a minimum number of shareholders. Have a good track record Have a minimum profit level Accept full disclosure of its operation wrt. Salaries, Profits and Strategies

. .

. . .

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Converting from Private to Public contd.


2. Legal documents must be lodged with the Registrar of joint stock companies. 3. Company makes application to the Stock Exchange Council through a stockbroker. 4. Stockbroker and Merchant bank inspect books to verify S/E financial requirements are met. 5. On Stock Exchange Council acceptance, the Registrar of Companies issues a Trading Certificate. The company can NOT commence business until this is issued. Before shares are quoted, the company must produce a prospectus. The prospectus is an offer to buy to new and existing potential shareholders i.e. the public.
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1.3 LIST DEPARTMENTS WITHIN AN ORGANISATION. Nearly every organstion has 5 main functional areas. Making TECHNICAL Producing,
COMMERCIAL Buying, Selling FINANCIAL Getting Capital ACCOUNTING Controlling Finance MANAGERIAL Resources, People, Administration, Getting things done.
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1.4 DEPARTMENT ROLES

TO ACHIEVE ORGANISATIONAL OBJECTIVES day to day and strategic. Administration The organising and running of a business or organisation Human Resources Managing people Production Making or adding value products or services Marketing Managing products, pricing, promotion and location
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Sample questions Companies


1. What is the CRO? 2. Distinguish between a company limited by guarantee and unlimited company. 3. Can you identify Private Limited Companies operating locally? 4. How about a Public Limited Company?
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THE IMPACT OF SIZE AND TYPE OF ORGANISATION AFFECTS AND RELATES TO:

OWNERSHIP PROFIT MANAGEMENT ADMINISTRATION STAFFING

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Friendly Societies

1. Industrial and Provident Societies Two Different Societies Types e.g. Dairy, Meat processing, Livestock, and Public Utility e.g. Water, Housing. Most of these are Co Operative Societies. 2. Credit Unions 3. Friendly Societies 4. Certain Trade union. The Co Operative movement was founded by Robert Owen in English town of Rochdale in 1900,s. The Rochdale Principles still govern the thinking of cooperative movements.
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Rochdale Principles
1.

Open Membership Anyone can join. Democratic rule One vote per person. Limited Return on Capital. Profit distributed to number of purchases. No Credit Cash sales only. Some Profit set aside for educational purposes. Neutral on political and religious issues.

2.

3.

4.

5.

6.

7.

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Features of Co-Operatives

Must registrar with Registrar of Friendly Societies. Need 8 or more people to form. One person one vote. Maximum agreed number of shares owned. Shares are non-transferable and must be sold back to coop. Profits to be distributed in proportion to members holdings. To compete many have become public companies e.g. Kerry and Avonmore formed Glanbia in 1977. Some Co Ops have retail outlets attached e.g. Thurles Cooperative Creamery ltd.
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Features of Credit Unions

Introduced in 1958 with a policy of self help. Formed under the Credit union act 1966 and Industrial and Provident Societies act 1978. Run by a voluntary board of directors. Non profit making aimed at promoting savings and offering reasonable rate loans. Must be registered with Registrar of Friendly Societies. One member one vote. Loans policy vary from one to another but usually based on savings records. Shares cannot be withdrawn until loan is paid off. Life Assurance cover
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Friendly Societies

Registered under the Friendly Societies Acts. E.G. Prison Officers Medical Aid, Kilkenny Archaeological Society and Chinese Society of Ireland

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Trade Unions (see slide 128)


Many register as friendly societies We will examine in more detail in unit 3 however there are 3 types Craft, White Collar and General.

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Charities

Non Profit making Exempt from VAT Receive Donations e.g. SVdeP, Trocarie, ConcernCaring Groups Give Advice and Counselling e.g. AA, The Samaritans
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So to Recap Organisation Types

What are the main different business organisation types? What are the purpose, aims and objectives of each? Sole Trader Unincorporated body, owned by one person. E.G. Some pubs, shops, restraunts. Partnerships Formed by Deed of partnership setting out conditions. E.G. Solicitors, Accountants, Dentists, Architects. Private limited Companies Similar in Formation and reporting to PLCs however no shares issued to public and no minimum share capital. Number of shareholders between two and fifty. E.G. Masterfoods, Dunnes Stores Public Limited Companies Incorporated under a Memorandum and Articles of Association. Has at least two directors (managers) appointed by shareholders (owners). Has statutory obligations. E.G. AIB, Glanbia

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Recap Organisations contd.

Friendly Societies organisations registered with the Registrar of Friendly Societies e.g. Credit Unions, some Co operatives. State Bodies Totally funded by the Government e.g. Gardai, Army, Blood Bank. All are non trading. Trading Semi-State Bodies Offer a service you pay for e.g. Bord na Mona, Aer Lingus, Aer Rianta Bus Eireann , Irish Rail NonTrading Semi-State Bodies - Those who provide Advice, grants and Incentives. E.G. Residential Tenancies Board, IDA, FAS Charities and Voluntary organisations e.g Goal, ISPCC
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1.5 ORGANISATION CHARTS


Q. Which of the following organisations are structured a. BY FUNCTION/DEPARTMENT b. BY GEOGRAPHY c. BY PRODUCT 1. Vodafone 2. Cadburys 3. A Credit Union
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INTERNATIONAL ORGANISATION

NORTH AMERICAN ORGANISATION

1.6 LIST ENVIORNMENTAL FEATURES THAT IMPACT ON AN ORGANISATION - PEST

POLITICAL Government - Wars Red tape ECONOMIC Credit Crunch Unemployment Globalisation labour costs SOCIAL Ethics Trends eg healthy options TECHNOLOGICAL Online trading/Internet

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SUMMARY TO DATE

1.1 We identified different types of organisation 1.2 We looked at distinguishing features of each organisation type 1.3 We listed the different departments in an organisation and discussed their role. 1.4 Designed and examined organisation charts 1.5 Discussed P.E.S.T. analysis
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