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Australian Mineral Resources (AMR) and Jirrideri Mining have been negotiating a merger with the aim of achieving economies of scale - VCE - SSCE Business Management - Question 1 - 2008 - Paper 1
Question 1
Australian Mineral Resources (AMR) and Jirrideri Mining have been negotiating a merger with the aim of achieving economies of scale. The Chief Executive Officers (CE... show full transcript
Worked Solution & Example Answer:Australian Mineral Resources (AMR) and Jirrideri Mining have been negotiating a merger with the aim of achieving economies of scale - VCE - SSCE Business Management - Question 1 - 2008 - Paper 1
Step 1
Define mission statement.
Answer
A mission statement outlines the primary purpose of an organization. It articulates the reasons for the organization's existence, detailing its fundamental goals, values, and objectives. This statement serves to guide the decisions made within the company and inform stakeholders of the organization's core purpose, often reflecting its commitment to providing value to clients. For instance, a mission statement may express the intent to provide quality service and create a positive impact within the community.
Step 2
Define organisational structure.
Answer
Organisational structure refers to the system that outlines how certain activities are directed in order to achieve an organization's goals. This includes the allocation of tasks, coordination of roles, and the framework for communication and decision-making within the organization. Essentially, it defines the hierarchy and relationship between different positions and departments, ensuring that everyone understands their role in the organization.
Step 3
Describe the key features of a matrix organisational structure.
Answer
The matrix organisational structure is characterized by a dual-reporting relationship where individuals report to more than one manager. Key features include:
- Flexibility: Teams can be assembled and disbanded as project needs evolve, allowing for efficient resource management.
- Collaboration: encourages interdisciplinary collaboration, leveraging diverse expertise from different departments.
- Balance of Power: empowers employees by allowing input from multiple managers, which can enhance decision-making.
- Clear Roles: however, it requires clear delineation of responsibilities to avoid confusion and ensure accountability.
- Dual Hierarchies: this structure can lead to complexities in authority and communication, necessitating robust management strategies to address potential conflicts.