What an organisation is for

What an organisation is, what it is for, the chain from purpose to objectives to means, the SMART objective and the three measures of performance: effectiveness, efficiency, relevance.

  • 28 cards
  • 5 topics
  • Free

The outline, topic by topic

Each topic is weighted the way the exam weighs it.

  1. Concepts
  2. Questions
  3. Sort and link
  4. Scenarios
  5. Understand

A few cards from the deck

  • Organisation: what is it?

    Show the answer

    A group of people and resources arranged with rules and roles to reach a common goal.

    Three ingredients: a shared goal, pooled resources, a structure that shares out the roles. A company, an association and a town hall are all organisations.

  • A team organises a trade fair: objective 1,000 registrations, budget €20,000. It gets 1,000 registrations having spent €14,000. How should the result be described?

    • Both effective and efficient
    • Effective only, because the budget does not count in judging a result
    • Efficient only, because the objective was not exceeded but the budget was kept
    • Neither, because the whole planned budget should have been spent
    Show the answer

    Both effective and efficient

    Effectiveness compares the result with the objective (1,000 for 1,000); efficiency compares the result with the resources (€14,000 instead of €20,000). Not spending the whole budget is never a flaw.

  • The chain reads from top to bottom: the … is broken down into …, which are reached through ….

    Show the answer

    The chain reads from top to bottom: the purpose is broken down into objectives, which are reached through resources.

    From most lasting to most concrete: the purpose almost never changes, objectives are renewed every year, resources are adjusted along the way.

  • Purpose: what is it?

    Show the answer

    The lasting reason an organisation exists; it cannot be put in figures and is never used up.

    It can be profit-making (rewarding shareholders), non-profit or in the public interest. Objectives turn it into dated targets, resources serve it.

  • A café chain aims at 500,000 more customers. It gets there by doubling its advertising budget, but the new customers do not come back. What is it mostly lacking?

    • Effectiveness: the 500,000-customer objective is not reached
    • Relevance: it aimed at the wrong problem
    • A measure: the objective was not put in figures
    • A profit-making purpose: it should be replaced by a social purpose
    Show the answer

    Relevance: it aimed at the wrong problem

    The objective is in figures and reached, so measurable and effective. But aiming at the number of customers rather than their return is a poor choice of objective: relevance is the issue.