Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to be an active participant in the governance activities of a Board, with an understanding of the roles and relationships to other roles on the Board and within the organisation.

Some aspects of governance activities may be subject to legislation, rules, regulations and/or codes of practice relevant to different job roles and jurisdictions.

Application of the unit 

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.

Prerequisite units 

Employability skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

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 AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

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.

EVIDENCE GUIDE 

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.

RANGE STATEMENT 

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 

Competency field 

Regulation, Licensing and Risk - Governance

Co-requisite units