Management and Organizational Studies 2275A/B Chapter Notes - Chapter 3: Formal System, National Land Company, Debt Management Plan

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Balance between managing the present and planning for the future. Legal mistakes are costly, distracting and harmful. Preventative approach requires a thorough evaluation of risks. Emphasis is on compliance with requirements and anticipation of changes. Reactive approach needs a strategy to deal with such developments. Legal risk business risk with legal implications. May have its own department or may be done by ceo or someone outside the organization. 4 step process: identify legal risks, evaluate the risks, devise a risk management plan, implement the plan. Accounting, finance, marketing, production, hr, info systems. Some possible risks: misleading advertising; inferior products; harassment; downsizing; wrongful dismissal; inadequately maintained records. Examine the organizations business relationship and assess those relationships. Asses risk in decisions concerning financial arrangements (credit terms and sales) How contracts are worded; may involve standard form contracts. Review land occupied to ensure safety; look for hazards before purchasing land. Plan for hiring, firing and dismissing employees.