1. Understand organisational structures. 

• 1.1 Describe the purpose and scope of a business.

• 1.2 Explain the differences between the private sector, public sector and voluntary sector.

• 1.3 Explain the role of organisational structure in organisational effectiveness.

• 1.4 Explain the use of different organisational structures.

2. Understand the organisational environment.

• 2.1 Discuss the importance of understanding the business environment

• 2.2 Describe the internal and external influences on organisations.

• 2.3 Explain why a change in the business environment is important for making business decisions.

3. Understand the ethics of an organisation.

• 3.1 Explain the meaning of ethics in business.

• 3.2 Analyse the importance of ethical behaviour to a business.

• 3.3 Explain the purpose and benefits of an ethical business code.

4. Understand how organisational culture and values are developed.

• 4.1 Explain the different types of organisational culture and values.

• 4.2 Describe the features of an effective organisational culture.

• 4.3 Examine factors influencing the development of organisational culture and values.

• 4.4 Explain the concept of organisational values.

• 4.5 Explain the interrelationship between organisational values and organisational culture.

Understand organisational structures.

Course Coverage

• Business : Meaning of a business, Business organisations, difference between organisation and industry, the aims and purposes of business, scope of business by product/services, domestic/international.

• Private Sector: run by individuals and companies for profit ie Sole trader – Partnership – Limited company – Public Limited Company.

• Public Sector: managed by government ministries and departments and financed through public and business taxes; provide service to public ie Education: schools; colleges, National Health Service: hospitals; nursing homes; GP practices, Local councils, Police. Voluntary Sector: not for profit organisations; benefit the public ie Charities: Oxfam; Red Cross, Trusts: Housing Associations, Local community interest organisations ie Neighbourhood Watch Schemes Societies ie local sports club; uniformed organisations (scouts and guides, theatre groups) 

• Organisation structures: line, line and staff, matrix, team, mechanistic, organic, centralised, decentralised, flat, tall

• Grouping of work, function/product/service, location, nature of work, shared time scales, staff employed, stakeholders, combinations of methods of grouping work.

• Informal organisational structures, the difference between formal and informal structure, promote communication, provide satisfaction, provide social control, resistance to change, role conflict, lack of control over information of informal structure.

Understand the organisational environment.

Course Coverage

• Business and business environment: internal environment and external environment. Use of SWOT and PEST analysis and their significance in business decision-making.

• Internal influences within the organisation’s control. 

• Communication:

  • Positive: good lines of communication; important information will be given and received; no confusion.

  • Negative: bad lines of communication; important information may not be given or received; confusion about what needs to be done.

• Manager motivation:

  • Positive: staff will be recognised (staff will become motivated, work will be completed and completed well)

  • Negative: lack of recognition (staff will become demotivated, work not completed or completed badly)

• Company image or reputation:

  • Positive: good image or reputation (people will continue to use the company, company will gain business, company may need to recruit to expand the business)

  • Negative: poor image or reputation (people will stop using the company, company will lose business, company may need to downsize and staff may lose their jobs)

• Policymaking:

  • Positive: staff will know how to carry out their work; will know the expectations.

  • Negative: staff will not know how to carry out their work; will not know the expectation.

• Recruitment processes:

  • Positive: skilled and experienced staff; work completed appropriately. 

  • Negative: unskilled or inexperienced staff; work not completed appropriately; work redone by more qualified/experienced person.

• Management skills:

  • Positive: staff/budget and work flow will be controlled; company will succeed.

  • Negative: staff/budget and work flow will not be controlled; company will fail. 

• External influences beyond the organisation’s control -PEST Analysis.

• Good lending conditions: good investment opportunities for services/product development; choice of financial sources. Tight lending conditions: make investment opportunities for services/product development difficult; need to explore alternative financing sources.

• Decrease in interest rates supports spending; loan repayments decreased.

• Increase in interest rates supports savings and investments; loan repayments increased Decrease in taxes: increases profits.

• Increase in taxes reduces profits.

• Government regulations: develop plans for compliance with regulations.

• Competition from similar providers: enhance innovation and service to stay ahead of the competition.

• To continue to be successful it is important for organisations to:

• Keep up with competitors, adapt to changes in the market

• As the business grows, the environment should also adapt: structure change; recruitment; new departments/areas created or lost

• Keep up with legislation and political decisions: employment law; health and safety; EU trading Keep up with technology: help business become more productive; streamlined; efficient.

• SWOT and business decisions.

Understand the ethics of an organisation.

Course Coverage

• Definition of business ethics, ethical activities, values of businesses, professional ethics, individual ethical behaviour. 

• Corporate governance, corporate social responsibility, environment, sustainability.

• Supports human rights, corruption, trading fairly, legal and regulatory compliance, business practices, working conditions, and individual ethical responsibilities.

Understand how organisational culture and values are developed.

Course Coverage

• Types of organisational culture: power, role, task, person, clan, adhocracy, market, hierarchy, bases of theories, purpose, results, authority, fun.

• Features: consistency, coordination, control, demands on employees, support/care for employees, achievement of objectives, continuous improvement, level of employee commitment, identification with the business, reputational enhancement, positive perceptions.

• Influences: history of organisation, achievement, function, focus, priorities, technology, goals, size, location, management and staff, demographics, environment, culture, stakeholders.

• Impact of organisational values and culture on behaviour: affecting selection of team members, team objectives, decision making, controlling system, recruitment and selection, social tools and training, reward system.

• Stakeholders: owners, customers, managers, staff, suppliers, employer bodies, employee bodies, local community, government.

• Definition of values, impact on motivation and human behaviour, values affecting workplace behaviour, treatment of employees/stakeholders, sustainability, community, and engagement. 

• Challenges of shared values, embedding a common set of values, the impact of a common set of values, the influence of values on decision making, self-esteem, tolerance of ambiguity, social ambiguity, risk-taking.