CHCORG614A: Manage a service
organisation
Coordinate organisation planning
Contents
Coordinate organisation planning
3
Business structures
3
Types of childcare services
6
Lines of decision making and accountability
8
Roles within children’s services
10
Key areas of responsibility
12
Identify appropriate strategic alliances and negotiate and
maintain participation
14
What is a strategic alliance?
14
Identify overall purpose and philosophy of the organisation and
translate into a written or recorded set of aims and objectives
What is a philosophy?
16
A service philosophy
17
Where do we begin?
19
Undertake appropriate consultation with relevant people and
agencies
2
16
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Diploma of Children’s Services: CHCORG614A: Reader LO 9374
© NSW DET 2010
Coordinate organisation planning
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
(www.fairtrading.nsw.gov.au). Some of the main features of a sole trader are;
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it doesn’t cost anything to set up as a sole trader unless you register a
business name which has a fee
the sole trader has complete responsibility for the management and all
aspects of the business
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© NSW DET 2010
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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;
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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.
Diploma of Children’s Services: CHCORG614A: Reader LO 9374
© NSW DET 2010
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;
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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;
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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
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© NSW DET 2010
5
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
childcare services available.
Types of childcare 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 licensee 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 licensee. 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
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© NSW DET 2010
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.
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. With this model it was not unusual to have a director, the owner, who if not
trained was not the authorised supervisor. The owner would take the role of
director to manage the service and if they did not possess the correct
qualifications they would hire a trained staff member who could meet the
requirements to become the authorised supervisor. In this model all staff would
be directly responsible to the owner, including the authorised supervisor.
However it is becoming more regular to see qualified owners acting as licensee,
authorised supervisor and director.
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.
Diploma of Children’s Services: CHCORG614A: Reader LO 9374
© NSW DET 2010
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Corporate chains (for-profit publicly listed corporations)
In recent times we have seen the emergence of publicly listed corporations
operating chains of childcare 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.
Activity 1a
Activity 1b
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
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, accreditation principles,
legislative requirements and staff meetings as effective tools for establishing lines
of accountability.
Here are some samples of management structures:
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Community-based service
Large organisation structure
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© NSW DET 2010
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Local government service
Roles within children’s services
In NSW all centre based children’s services need to be licensed by the Department
of Community Services (DoCS). The local Children’s Services Officer (CSO –
formerly known as the Children’s Services Advisor) liaises and assists services
through this process. Some of the roles and responsibilities in regards to children
services licensees are:
The licensee
All licenses are issued to a particular person, who is the licensee. The licensee is
usually the person that has initiated the establishment of the service – in other
words, the owner! The Children’s Services Regulations clearly outline the
responsibilities of this role, which include:
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ensuring that the regulations are met at all times
employing a suitable authorised supervisor
ensuring that the authorised supervisor effectively manages the service
employing staff that will meet the licensing requirements and needs of
the service
ensuring that staff-child ratios are met at all times
providing adequate office space and facilities for the storage of materials
and equipment
Diploma of Children’s Services: CHCORG614A: Reader LO 9374
© NSW DET 2010
•
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ensuring the appropriate cleaning and maintenance of the premises
ensuring the effective management of the service.
Authorised Supervisor
The Authorised Supervisor is nominated by the licensee as the person responsible
for the overall supervision of the service. The Authorised supervisor must hold
appropriate qualifications (in NSW this would be the Diploma of Children’s
Services or equivalent, or higher degree qualifications). DoCS assesses the
suitability of the proposed authorised supervisor before accepting them. The
Authorised Supervisor needs to:
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be employed by and responsible to the Licensee. In for profit services if
the licensee holds the required qualifications, he/she will usually also
be the Authorised Supervisor
be aware of the statutory responsibilities under the Children and Young
Persons (Care and Protection) Act 1998 and the state’s regulations, in
NSW, the Children’s Services Regulations 2004.
ensure compliance with all relevant requirements at all times as outlined
in the regulations.
ensure the implementation of accreditation principles as applicable.
In NSW, the regulations require that the Authorised Supervisor be on the
premises for at least 50% of the time of operation. Where the Authorised
Supervisor is responsible for two extended hours services, they would need to
spend 50% of their working hours at each 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 most cases the Director is
also the Authorised 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. You
will therefore find that often an unqualified owner and licensee claims the title of
Director, while the Authorised Supervisor still holds legal responsibility for the
centre’s compliance.
Now it’s time to check your understanding of the different roles within children’s
services!
Activity 2a
Activity 2b
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Activity 2c
Activity 2d
Activity 2e
Key areas of responsibility
The governing body or licensee of a service has a range of responsibilities, which
can be divided in to the following areas.
Licensing
In NSW all children’s services must be licensed by the NSW Department of
Community Services (DoCS). This process is originally undertaken by the licensee,
although when renewing the license the Authorised Supervisor will be involved.
Legal
The licensee is responsible for meeting all the Federal, State and local government
laws and regulations. This includes licensing regulations, insurance, industrial
legislation and awards, taxation, superannuation, and occupational health and
safety requirements.
The Authorised Supervisor and staff also have a level of responsibility in these
areas.
Financial
The licensee 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).
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Employment
The licensee is the legal employer and as such is responsible for recruiting and
managing staff in accordance with industrial legislation.
Maintenance of premises
The licensee is responsible for making sure the premises and equipment of the
service are well maintained and properly insured. The Authorised Supervisor is
responsible for reporting maintenance issues to the licensee.
Diploma of Children’s Services: CHCORG614A: Reader LO 9374
© NSW DET 2010
13
Identify appropriate strategic alliances
and negotiate and maintain
participation
What is a strategic alliance?
A strategic alliance is a relationship established with a like-minded entity which
will further the organisation’s mission and goals. These alliances will vary from
service type to service type, but may include:
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industry networks, such as a local directors’ network where directors can
discuss difficulties and successes they are experiencing or a
community-based service group which may group together to
increase their buying power
professional associations which work with government, early childhood
professionals, parents, other carers of young children and various
lobby groups to secure the best range of options and outcomes for
children as they grow and develop. An example of a professional
association is Early Childhood Australia Inc, which publishes the Code
of Ethics.
other key agencies or organisations, such as a local community
neighbourhood association whose mission may be to improve the
services offered to the community, including families with young
children
key government officers and political parties and committees, who will
listen to the needs and wants of their constituents, especially in
regard to service provision and affordability.
How can we negotiate and maintain participation?
As early childhood professionals, and more so if we take up a leadership position,
it is imperative that we develop a network of resources, support and information
services. These will facilitate you and your team’s professional development, the
quality of the service you provide and the standing of the industry.
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© NSW DET 2010
The responsibilities and requirements in the field are many, varied and everchanging. It is unrealistic to think that all can be met without developing strong
support networks which can provide us with update information and support. An
excellent first step is to become a member of industry networks and professional
associations. These will not only provide you with a forum where you can gain
information and discuss opinions but will also often give you discounts on a range
of informative subscriptions to childcare journals.
Professional development is a lifetime commitment. For it to be successful we
need to be informed on the latest developments, trends and research in the field
and regularly engage in discussion and evaluation of our beliefs, processes and
practices with other professionals.
Activity 3
Activity 4
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© NSW DET 2010
15
Identify overall purpose and
philosophy of the organisation and
translate into a written or recorded set
of aims and objectives
What is a philosophy?
A philosophy can be described as a guiding principle which forms the underlying
reason for decisions made and actions taken. We all have our own personal
philosophy about life, and these vary according to our background, life
experiences, age, education, culture and other influencing factors.
While you have been studying this course you have probably also developed your
personal philosophy on children and children’s services. While this philosophy will
continue to develop and change as your experiences in the industry grow, you will
often rely on it when completing assignments and tasks, often without realising it.
A philosophy is an extremely important part of the centre, since it’s where you
look to build your procedures, practises and policies from. The philosophy itself
comes from things like accreditation, regulations, the Acts, and also educational
current practises of the day. The philosophy should reflect not only the centre’s
views and beliefs, but the people who use the centre. However rather than
regularly changing the philosophy, it should be written to include and embrace all
aspects of the centre, including those that may change such as the cultural
identity of both current and prospective families attending the centre.
Paula West
16
‘The philosophy of the centre is like the
backbone from where everything springs
from, or like the index of a book which
will tell you what is coming. It’s an
extremely important part of the centre,
because it’s where you look to build your
procedures, practises, policies — all these
come from the philosophy. The
philosophy itself comes from things like
accreditation, regulations, the Acts, and
also educational current practises of the
Diploma of Children’s Services: CHCORG614A: Reader LO 9374
© NSW DET 2010
day.
The philosophy also has to reflect the
people who come and use the service, but
that doesn’t mean it changes every few
years as you get new parents into the
service. At Kanga’s House we have a very
diverse multicultural group of parents and
for me the philosophy has to be an all
embracing one, so that parents and
families can see that they are welcomed,
respected, valued. So it’s also to do with
the way we interact with families as well
as the educational kind of process we do
with children on a day to day basis.’
Activity 5
A service philosophy
All services require a mission statement and philosophy. These statements
provide a vision of the type of practices and procedures the service will offer and
why. When a conflict or change arises in procedures or practices, these can be
evaluated against the philosophy of the service to see if they maintain the stated
vision and whether they need to be modified or upheld.
It is therefore important that all relevant stakeholders contribute to the formation
of the service philosophy and that it is truly a collaborative process. This will
include staff, families, management committee or other management
representative as applicable, community representatives and other agencies,
groups or individuals associated with the service.
Activity 6
Here is Paula talking about creating a philosophy for Kangas House
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© NSW DET 2010
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Paula West
We would call meetings I might even on a one to one basis approach
particular people I thought would have a genuine interest in being part of
this [setting up a philosophy]. We would make it known through a
newsletter, through some form of meeting, notice boards, through
different written communications, sometimes in other languages if it’s
relevant inviting people to come together and meet. Sometimes we
would also survey, trying to find some relevant points or aspects of
philosophy we were examining at that time, so people had time at home
to reflect a view and write down their comments and bring them back –
then we would meet together to analyse that.
Our philosophy has a short succinct beginning, almost a few lines, talking
about how we encompass the care and education of children and the
families that attend the service. Then after that, there is a set of aims and
beliefs that cover all sorts of aspects of the care. From those aims and
beliefs have come the policies and procedures. When I’ve read other
philosophies, they might be longer and more wordy and maybe not
structured in the same way, but really I think the outcome is the same.
When I began at Kangas, there wasn’t really a philosophy there, or
policies or procedures which actually hung together –so a small working
group made up of management committee, myself, parents got together
and we looked back at all the old minutes and found all sorts of motions
that were passed, which were actually practices and philosophies of the
centre, we brought them together, and then examined the philosophy at
the time and really looked at it, the words and phrasing and came up with
something I believe was totally different, that really reflected the families
of the current day.
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Where do we begin?
While is it true that there are many great organisational philosophies out there,
and that it is not necessary to reinvent the wheel every time we need a new
document, philosophies should not be simply ‘borrowed’.
It is important that all the service’s workers and stakeholders have an opportunity
to express their values and beliefs, and that these are distilled to an agreed set of
principles. This will promote ownership of the philosophy and ensure that it is
truly representative of stakeholders’ beliefs. Derived practices and procedures are
more likely to be upheld if the people involved in their implementation truly
believe in them. It is up to the centre to ensure a selection of strategies and
techniques are used to invite participation, and that an individual’s level of
involvement in the process is respected. Here are some suggested steps.
Step 1
Collect the legislative and informative documents relevant to your service. You
will need to consider state regulations, codes of ethics, accreditation principles
plus anything else relevant to your state. If the centre has a philosophy, ensure
everyone has access to it so they can comment. If the service is new, access a
philosophy document from similar services in the area as a starting and reference
point.
Step 2
Ensure you use a variety of centre-specific strategies and techniques to invite
participation and solicit collaboration in the process. Gather and collate
information and comments from stakeholders.
Step 3
Organise a small meeting or other appropriate forum to brainstorm the mission
statement and philosophy. Usually one person scribes, questioning and listening
to comments, then gains consensus for the written statements.
A philosophy should generally be no more than 1–2 pages and can be written in
paragraph or point form. The philosophy will become the guide to formulating
service aims and objectives, or goals, as well as centre practices and procedures.
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Aims and objectives
We have discussed service philosophy and how this statement describes the
vision and overall purpose of a service. How do we implement and evaluate this
vision, this philosophy?
We now need to translate the service’s philosophy into aims and objectives which
can be measured. These then become a list of clear, concise and measurable goals
providing the necessary structure and direction to ensure the service’s philosophy
is implemented.
You should be familiar with developing programs and individual goals. The same
principles apply to the construction of organisational goals. The aims and
objectives will naturally include program goals, as well as staffing, the physical
environment, management, relationships and the community. In large services,
individual rooms may create their own aims and objectives for that particular
group of children within the service. Aims tend to be general and goals long term,
which are broken down into objectives, these being the measurable shorter goals
taken towards the longer-term aim.
Here is Paula talking about the centre’s philosophy and policies
Paula West
When we looked at the philosophy, we wrote a draft, then sent it out to
every single family member, and all the staff and we gave them a
timeframe, so they could have discussions within themselves or time to
give feedback – when that came back to us we wrote a second draft, sent
it out for the final time, and then it was ratified at the next Management
Committee Meeting.
These days when parents come and visit your centre, what do they walk
away with in terms of philosophy and policy?
A big book, a huge book which states clearly that this is a fluid flexible
working model, except for the philosophy. I believe philosophy even
though it’s not set in concrete has to have something that is long term,
that will survive, whereas policies and practises can change, depending on
current medical research or educational research, your philosophy has to
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© NSW DET 2010
have strong roots which are well grounded, and don’t just change every
few years. Otherwise I think you get a very unstable kind of centre.
So you feel policies need reviewing on a regular basis?
Yes, I think policies definitely need to be reviewed, because there is so
much change in the world, we are growing so fast, educational practises
and theories change, your policy has to reflect that. Hygiene procedures
change and you need to reflect that, OH & S is such a big thing nowadays.
Centre policies
Policies set out how procedures will be carried out at the centre. These policies
provide clear instructions to staff on what should occur at particular times and
around certain procedures. While these will be developed depending on
individual centre philosophies, goals and clients, policies need to comply with
national requirements, such as the Quality Improvement and Accreditation
System, occupational health and safety legislation and Code of Ethics, as well as
state regulations, such as the NSW Children’s Services Regulations 2004. Policies
should also reflect what is currently being done, rather than what the centre
intends to do.
Have a look at the Policies in Summerville Children’s Centre.
Activity 6
If you would like to refresh your memory on policy writing, another excellent
document that gives specific details on how to write policies is the NCAC Sample
Policy Template, also available on the website.
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© NSW DET 2010
21
Undertake appropriate consultation
with relevant people and agencies
You should by now be familiar with the concept of collaboration and its central
place in the children’s services industry. In this topic we have discussed the
importance of consulting with relevant people and agencies when conducting
corporate planning, such as in the development of the service’s philosophy and
management systems.
Here is list of the relevant people and agencies that you would need to consult
when developing systems and procedures, and some ideas of how you would
conduct this consultation.
Consultation
System or procedure
Who you would consult
How you would consult
Centre philosophy
All stakeholders, which would
include all users, workers,
relevant regulations, industry
documents
Depends on the availability and
requirements of stakeholders,
strategies would vary according
to the defining features
Centre goals and aims
All stakeholders, which would
include all users and workers
As above
Fundraising Workplan
Management and those
involved in fundraising
Depending on the group, would
need to ensure that all interested
are able to contribute
Centre rosters
Legislative requirements,
previous rosters, individual’s
preferences
Check of all relevant
documentation
Delegating purchasing
craft material
Workers who have shown an
interest in additional
responsibilities, those
interested in craft
Mention it at staff meeting and
put notice in staff room,
discussions with interested
individuals
Completing funding
application for new
playground soft fall
Documents from funding
sources, funding committee,
previous successful funding
submissions
Direct and mail contact with the
organisations
22
Diploma of Children’s Services: CHCORG614A: Reader LO 9374
© NSW DET 2010