CHC08 Community Services Training Package Version 4 CHCORG614C. Manage a community sector organisation SAMPLE. Learner guide.

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1 CHC08 Community Services Training Package Version 4 CHCORG614C Manage a community sector organisation Learner guide Version 2 Training and Education Support Industry Skills Unit Meadowbank Product Code: 5719

2 TAFE NSW (Training & Education Support, Industry Skills Unit Meadowbank) 2012

3 Acknowledgments The TAFE NSW Training and Education Support Industry Skills Unit, Meadowbank would like to acknowledge the support and assistance of the following people in the production of this learner resource guide: Writer: Tracy Redman Teacher, Children s Services TAFE NSW Reviewer: Louise Holz Teacher, Children s Services TAFE NSW Contributors: Fiona Wynn and Lisa Wallmeyer Teachers, Children s Services Project Manager: Gail Horwood A/Education Programs Manager TAFE NSW Enquiries Enquiries about this and other publications can be made to: Training and Education Support Industry Skills Unit, Meadowbank Meadowbank TAFE Level 3, Building J, See Street, MEADOWBANK NSW 2114 Tel: Fax: The State of New South Wales, Department of Education and Training, TAFE NSW, Training and Education Support Industry Skills Unit, Meadowbank, Copyright of this material is reserved to TAFE NSW Training and Education Support Industry Skills Unit, Meadowbank. Reproduction or transmittal in whole or in part, other than for the purposes of private study or research, and subject to the provisions of the Copyright Act, is prohibited without the written authority of, TAFE NSW. Training and Education Support Industry Skills Unit, Meadowbank. ISBN TAFE NSW (Training & Education Support, Industry Skills Unit Meadowbank) 2012

4 TAFE NSW (Training & Education Support, Industry Skills Unit Meadowbank) 2012

5 Table of contents Introduction General introduction Using this learner guide Prior knowledge and experience Unit of competency overview Assessment Section 1 Organisational structures, processes and planning Business structures Types of education and care services Lines of decision making and accountability Roles within children s services Key areas of responsibility Identify appropriate strategic alliances and negotiate and maintain participation Identifying the organisation s philosophy Aims and objectives Section 2 Manage evaluation process and change Identify, develop and implement appropriate evaluation arrangements Using evaluation tools How do we evaluate? Identifying trends and assessing their impact on the organisation Managing change in an education and care service Types of change The change cycle Failure to achieve lasting improvements TAFE NSW (Training & Education Support, Industry Skills Unit Meadowbank) 2012

6 Prepare advice and reporting to decision makers Section 3 Effectively manage the organisation Identify and implement mechanisms for effective coordination of activities and services Managing staff Time-management techniques and strategies Preparing staff rosters Delegating Staff recruitment Orientation for new staff Internal promotion Staff training Effective coordination of activities and services Facilitate meetings Section 4 Meet legal requirements of children s services Legal requirements and obligations for staff Section 5 Financial management, accountability and systems 117 Financial accountability systems Documentation Funding options and opportunities Funding applications Section 6 Marketing a children s service Feedback to Activities Section Section Section Section TAFE NSW (Training & Education Support, Industry Skills Unit Meadowbank) 2012

7 Section 1 Organisational structures, processes and planning Elements and performance criteria: 1. Coordinate organisation planning 1.1 Identify appropriate strategic alliances and negotiate and maintain participation 1.2 Identify overall purpose and philosophy of the organisation and translate into a written or recorded set of aims and objectives which are clearly understood, measurable and attainable and evaluated as appropriate 1.3 Implement appropriate corporate planning processes that make best use of internal and external consultation processes 1.4 Implement appropriate corporate planning processes to ensure responsiveness to client needs 1.5 Undertake appropriate consultation with relevant people and agencies 1.6 Establish appropriate management structure and process to coordinate corporate planning, advise decision-makers and reflect principles and philosophy of the organisation 1.7 Analyse the way in which values and beliefs of workers and stakeholders may influence defined organisation purpose and philosophy and communicate to all relevant participants 1.8 Make resources available as appropriate to support the planning processes at all levels 1.9 Develop systems, processes and timeframes for all aspects and components of the planning process 2. Design and implement the structures and process of the organisation 2.1 Determine appropriate structure for the organisation to match organisation philosophy and purpose 2.2 Develop, agree, implement and monitor lines of decision-making and accountability 2.3 Prepare budgets in line with strategic plan and make allowance for all requirements and components of planning and implementation of programs and services 2.4 Establish financial accountability systems which meet agreed organisation best practice provisions 2.5 Ensure planning guidelines provide for inclusion of appropriate statutory, legislative and practice provisions 2.6 Develop clear, fully documented planning guidelines and systems and make them accessible to all involved TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012 Page 19 of 194

8 6. Give direction for the effective management of the organisation 6.1 When required, develop and articulate policies and procedures for the employment role of the organisation and monitor their implementation 6.2 Promptly address problems in implementing defined procedures to ensure resolution 6.3 Prepare reports to comprehensively and accurately describe organisation s activities and achievements and present to relevant stakeholders and management, as required 6.4 When required, facilitate processes of management and/or board meetings to ensure effective and informed deliberations and decisionmaking 6.5 Identify and implement mechanisms for effective coordination of activities and services In order to successfully operate and manage a community sector organisation it is necessary to develop an enormous variety of knowledge and skills in quite a diverse range of areas; business structures, legal and ethical requirements, finances, people management and effective communication to name but a few. While a unit such as this (in conjunction with other units you have already completed) will provide a general overview of what you could be in for if you choose to take on such a role, hands-on experience and continual professional development is an essential ingredient in becoming an organised, efficient and effective manager and leader. Before we begin to look at all of the required skills and knowledge that such a position carries, it is important to have a basic understanding of the different types of business structures and types of ownership that are possible in children s services, since these will greatly dictate the responsibilities of a manager s role. Business structures In order to run a business a legal entity must be set up. Some of the most common types of business structures are discussed below. While this information will provide an overview of business structures, anyone setting up a business should seek professional advice on the most suitable structure for their particular circumstances. Sole trader A sole trader is the simplest of business structures, and the easiest and least expensive to set up. A sole trader is an individual trading on their own. A sole trader may use their own name as a trading name (the business name). However if a different name or other words are preferred, the business name must be registered. In NSW this is done through the Office of Fair Trading ( Some of the main features of a sole trader are: it doesn t cost anything to set up as a sole trader unless you register a business name which has a fee Page 20 of 194 TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012

9 the sole trader has complete responsibility for the management and all aspects of the business a sole trader is responsible for all debts that the business incurs (both whilst trading and any debts outstanding if the business ceases trading) the liability of a sole trader is unlimited if the business has large debts to pay that cannot be paid, personal belongings (such as the family home) may be at risk sole traders pay income tax on business profits at the same rates as personal tax. Partnership A partnership can be formed when between two and 20 people wish to go into business together. A partnership can operate under the partner s names, or operate under a registered business name. Many features of a partnership are the same or similar to the features of a sole trader business. The main features of a partnership include; each partner owns a part of the business as agreed upon when entering into the partnership. The partnership may be divided into equal or different shares (portions) of the business for each partner, which is usually established based on how much money each partner contributes to establish the partnership. For example, in the case of a partnership having 3 partners, one partner may have a 40% share and the other 2 have a 30% share each, based on the first partner initially contributing $4000 and the others contributing $3000. while it is not legally necessary to register a formal partnership, it is highly recommended in case there is a falling out between partners at some stage. There is a fee for registering a partnership, as well as a fee for registering a business name partners share business profits according to their share of the partnership partners are responsible for all debts that the business incurs (both whilst trading and any debts outstanding if the business ceases trading) the liability of partners in a partnership is unlimited, and debts are apportioned as per each partner s share if one or more partners are unable to meet their share of the debts, the other partners are responsible partners in a partnership have complete responsibility for the management and all aspects of the business partners pay income tax based on business profits added to any other income (some partners may have another job), at the same rates as personal tax. TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012 Page 21 of 194

10 Proprietary Limited Company A company is a more complex business structure set up by one or more people. The main features of a company are: a company is a separate and independent legal entity even if you own the company you are actually an employee the owners of the company will usually be the company directors (employed by the company) shareholders own the company while the directors run the company. Shareholders may be the directors, employees or others who have purchased shares in the company. company operations must abide by the Corporations Act 2001 which is overseen by the Australian Securities and Investment Commission (ASIC) companies have limited liability which means debts incurred by the company remain with the company rather than being passed on to directors, employees and/or shareholders. However, many financial institutions will not approve a loan for a company unless the directors agree to be personally liable for company debts. there are high costs related to both setup and ongoing administrative obligations companies pay a flat rate of tax on profits (currently 30%), while the directors and employees will receive a wage from the company and therefore pay personal tax rates. Profits distributed to shareholders are taxed as per personal income tax rates companies may be private ( owned and operated by its directors) or listed on the stock exchange (shares are available for the public to buy). Regardless of this status, companies are operated and managed in the same manner. Associations Associations are usually incorporated (members not liable for debts) but are an alternative to setting up a company for small non-profit groups. An association is very similar to a company with similar advantages, with the main difference being that it is not as expensive to set up or maintain. Some other features of an association are: an association is run by its members, and usually has management committees as stated, members are not responsible for the associations debts all profits from an association are returned to the business and not distributed to the members Page 22 of 194 TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012

11 Now that we ve looked at some of the main types of business structures, we can use some of that knowledge to help gain an understanding of the types of education and care services available. Types of education and care services It is important to understand the differences between management categories and structures as these greatly affect how an organisation is managed. Generally, organisations fall under one of the following categories: 1. community-based services (including all not-for-profit services) 2. independent private services (for-profit services/businesses, sometimes also known as commercial services) 3. Corporate chains (for-profit publicly listed corporations). Community-based (not-for profit) services These services do not aim to make a profit but attempt to ensure that income received covers the expenses of running the service. Any money made is reinvested into resources and equipment for the service. There are a variety of management structures which can be found under this category. Communitybased centres are those where a specific community group has assisted in the creation of an independently incorporated (not liable) committee concerned with the running of the service. An example of this is a student body of a university or a church group. The centre is managed by a committee made up of parents and community members. The approved provider is the incorporated association, which is represented by an elected management committee. The chairperson of the committee is usually nominated as the representative of the approved provider. These centres usually have a very direct line of management communication, with the service director reporting directly to the management committee. A management committee needs to be reflective of the community it serves and actively recruit stakeholders who provide relevant knowledge, skills, expertise and commitment to the organisation. Office bearers such as president, secretary and treasurer will carry specific obligations. Sub-committees may also be formed to examine specific issues, e.g., playground safety. Committees usually meet monthly, with an annual general meeting held each year where the committee members step down depending on the length of service indicated in the constitution and new committee members are elected. Most management committees appoint a coordinator or director (based on the size and structure of the service) to run the service on a day-to-day basis. This position is responsible for supervising staff, general administrative duties, programming and other tasks as per a job description. The director will attend the committee meetings and present reports on the operation of the service. The director will offer opinions and suggest direction, but will not have voting rights. TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012 Page 23 of 194

12 The primary objective of a community-managed service is to reflect and support the changing needs and requirements of the community it serves. It is an important responsibility of the service director or coordinator to advocate active community involvement so users of the service will feel part of the centre and empowered by their contributions to the service. Another example fitting into the category of not-for-profit services could be centres operated by local councils. In these cases the council runs these services, with a paid general manager being responsible for the overall management of all the services. The management structure has more levels, with the director of a particular service reporting to a centre consultant or coordinator, and a range of roles and responsibilities being dictated by the Local Government Act. Independent private services (for-profit /commercial services) Independent private services aim to make a profit from the running of the service. If the service is operated by a sole trader or partnership, the profits and management structure would rest with the owner/s. There have always been privately owned centres in children s services but the nature of these has changed greatly over recent years. Private for-profit centres were mainly owner-operated, with the owner usually participating as part of the staff. However there has been a rise in recent years in owners operating multiple centres. Owners of multiple services will sometimes form a company due to the taxation benefits (flat rate of tax on profits rather than the sliding scale applicable to personal tax). In this case, the owners will be the directors and shareholders. The company directors will often be employees at the services and be responsible for their management. In these smaller companies you may find that the shareholders include family members (such as husbands and/or wives) of the directors. Profits from these services are divided between shareholders and paid as dividends. Corporate chains (for-profit publicly listed corporations) In recent times we have seen the emergence of publicly listed corporations operating chains of education and care centres. Publicly listed means the company is listed on the stock exchange, with profits being distributed amongst shareholders. A board of directors will be responsible for the management, and depending on the size of the company, a similar management and reporting structure to the large not-for-profit organisation may occur. However, profits would not be returned to the centre but rather paid out to shareholders as dividends. It is very important that you become familiar with the management structure of a service and understand the lines of communication and responsibilities of all stakeholders. This will allow you not only to meet your job responsibilities but also to have an active and positive influence on the bureaucratic management of the service. Page 24 of 194 TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012

13 Activity 1.1 What do you think might be some of the advantages and disadvantages of working for a small not-for-profit versus a larger not-for profit organisation? Lines of decision making and accountability It is crucial for an effective coordinator or director to understand and follow the necessary lines of decision making and accountability. It is essential that you become very familiar with job descriptions, organisational charts, company bylaws or management committee s constitutions and service policies. These TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012 Page 25 of 194

14 documents will clearly outline responsibilities and correct communication lines and will greatly vary between organisation types. As a service coordinator or director you would also need to ensure that your staff are aware of their responsibilities. Besides job descriptions and policy and procedure manuals, you could use staff orientation, National Quality Standard, legislative requirements and staff meetings as effective tools for establishing lines of accountability. Here are some samples of management structures: Figure 1: Community-based service Figure 2: Large organisation structure Page 26 of 194 TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012

15 Figure 3: Local government service Roles within children s services Under the Education and Care Services National Law, several roles are identified in children s services, all of which require approval from the state regulatory body. In NSW this is the Early Childhood Education and Care Directorate, Department of Education and Communities. The three inter-related approvals processes follow; provider approval which is nationally recognised and enables providers to apply for one or more service approvals. service approval authorises an approved provider to operate an education and care service. The approved provider must nominate a person to be the Nominated Supervisor for each of their approved services. supervisor certificate allows individuals who hold a supervisor certificate to be eligible to be a nominated supervisor, or to be placed in day-to-day charge when the approved provider or nominated supervisor is not physically present at the education and care service. One of the certified supervisors must be formally identified as the nominated supervisor, with their consent. TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012 Page 27 of 194

16 Refer to the current Education and Care National Regulations to identify the responsibilities held jointly and individually by approved providers and nominated supervisors of children s services. About Supervisors A supervisor certificate belongs with the person it s portable from service to service within Australia. The nominated supervisor is the certified supervisor responsible for the operation of a specific service, along with the approved provider, and for ensuring it is following the Law and the Regulations. They need to ensure for example that the service is meeting the required ratios and qualifications targets. To become a certified supervisor, you need to have 3-years experience OR have approved early childhood teaching qualifications OR have approved diploma qualifications Responsible person Under the National Law each service must have a responsible person on the premises at all times that they are educating and caring for children. A responsible person for a service will be either its approved provider, nominated supervisor, or an individual with a supervisor certificate who has been put in day to day charge of the service. Director The Director is the manager of the service, responsible for the day-to-day running of the service, including managing staff and program. In many cases the Director is also the nominated supervisor. However it is important to note that Director is not an official legal title, but the name given to the manager of the service. The individuals or entities who hold legal responsibility for operation of the service are the approved provider, and the nominated supervisor. Page 28 of 194 TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012

17 Key areas of responsibility The governing body or approved provider of a service has a range of responsibilities, which can be divided in to the following areas. Service approval Most children s services in Australia require that service approval has been granted to an approved provider, under the National Law. Legal The approved provider is responsible for meeting all the Federal, State and local government laws and regulations. This includes licensing Education and Care National Regulations, insurance, industrial legislation and awards, taxation, superannuation, and occupational health and safety requirements. The nominated supervisor and staff also have a level of responsibility in these areas. Financial The approved provider is responsible for the financial state of the service. They must ensure that the service s budget is created, approved (depending on service type) and monitored, and that proper financial records are kept and annual audits to government departments are properly conducted. If the service is community based this information is presented to parents or the sponsoring body at the Annual General Meeting (AGM). Employment The approved provider is the legal employer and as such is responsible for recruiting and managing staff in accordance with industrial legislation. Maintenance of premises The approved provider is responsible for making sure the premises and equipment of the service are well maintained and properly insured. The nominated supervisor is responsible for reporting maintenance issues to the approved provider. TAFE NSW (TES, Industry Skills Unit Meadowbank) 2012 Page 29 of 194