This unit applies to individuals with a broad knowledge of the business or core functions of organisations who contribute their skills and knowledge to monitoring and guiding the activities of the organisation, specifically in relation to working effectively with the staff and management of the organisation.

ELEMENT

PERFORMANCE CRITERIA

1. Differentiate roles and responsibilities

1.1. Differentiate and document governance and management issues of the organisation in the organisation's governance policy guidelines

1.2. Identify, document and refer to the relationships between governance issues and management issues

1.3. Identify and document the roles of Board members in the organisation's governance policies and procedures

1.4. Explain the relationship between the Board and associated entities, and their management

1.5. Outline the Board's decision-making processes

2. Document management roles and responsibilities

2.1. Document performance outcomes, with appropriate assistance, and include in position description and contract

2.2. Clarify and document management duties, in consultation with management

2.3. Ensure areas of responsibility are discussed with Board members who are also employed staff, and establish and document guidelines

3. Supervise management of the organisation

3.1. Receive information and advice from the manager and apply in decision making

3.2. Instruct the manager to implement policy decisions and to follow specific directions as required

3.3. Receive feedback from the manager about previous directions

3.4. Regularly review management performance in accordance with contract and position description

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and to people with diverse abilities

communication and negotiation skills to work cooperatively with other Board members, management and staff of the organisation, key stakeholders and members of the community

analysis skills to review income and expenditure against budgets

problem-solving skills to make recommendations on variances to budgets

evaluation skills to evaluate income and expenditure performance targets within budgets

data collection and analysis skills to gather and assess movements within budgeted figures.

Required knowledge

cultural context relevant to the community and location: as boards of governance oversee a wide variety of organisations, they must therefore ensure that they operate within the traditional and cultural values of the relevant context/s

key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

anti-discrimination legislation

consumer and corporations laws including appropriate state/territory legislation

ethical principles

privacy laws

organisational constitution, codes of conduct functions, policies and procedures.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

understanding of the relationship and differences between boards of governance and organisational management

providing supervision to organisational management

working with irregularities and breakdowns in communications and routine between Board members and/or organisational management.

Context of and specific resources for assessment

Assessment must ensure:

participation on an actual or simulated Board

access to office equipment and resources

examples of issues worked with by boards of governance, including community complaints, strategic decisions and internal staffing issues

examples of relevant documents.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of documentation identifying the relationships between governance issues and management issues

analysis of responses to case studies and scenarios

demonstration of techniques

observation of presentations

oral or written questioning to assess knowledge of organisational constitution, codes of conduct functions, policies and procedures

observation of performance in role plays

assessment of written reports outlining the Board's decision-making processes.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

other governance units.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Governance issues may include:

Board leadership

Board planning

policy formulation

Management issues may include:

day-to-day administration and decision making

management responsiveness

Organisation's governance policy guidelines may include documentation of:

Board calendar

Board evaluation

Board meeting agenda

Board meetings

Board minutes

Board papers

Board structure

chief executive officer evaluation

committees

contacts

delegation of authority

director development

director protection

director selection and induction

monitoring

role of Board

role of chairperson

role of chief executive officer

role of company secretary

role of individual directors

service/advice

strategy formulation

Associated entities may include:

commercial businesses owned by the corporation

joint owned entities held by other organisations

trusts held by the organisation

Appropriate assistance may include:

consultants

key stakeholders

other independent parties

senior government or non-government personnel

Position description may be used for:

performance review

recruitment

Management may include:

management groups

managers

supervisors

team leaders

Regular review may include:

assessment against performance outcomes

independent assessment

interview

Unit sector

Regulation, Licensing and Risk - Governance

This unit contains employability skills.