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Transforming Leadership for Organizational Change

Explore the critical issues in managing finances and human resources, emphasizing the importance of good governance and decision-making processes. Dive into the principles and challenges of becoming a change leader to drive effective transformations in your organization.

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Transforming Leadership for Organizational Change

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  1. Critical Issues In Management of Finances and Human Resources Prakash Naidoo

  2. PURPOSE

  3. PURPOSE • Understanding Management Roles • Clarifying Processes • Understanding levels of Responsibility • Knowing how to account • Understanding WHY some things are done in the way/s you do not like it to be done

  4. NOT FOR PURPOSES OF • Complaints • Budget Requests and Pleading Poverty • “Impressonations” • Political Forum • Passing the Day – same work still awaits you tomorrow

  5. We Need to Move Ahead “Every time you are tempted to react in the same old way, ask if you want to be a prisoner of the past or pioneer of the future” Deepak Chopra

  6. Becoming a CHANGE leader Drucker “A change leader sees change as an opportunity. A change leader looks for change, knows how to find the right changes and knows how to make them effective both outside the organisation and inside it”

  7. Change VUT to meet HE Challenges • Look at resources not adding value to institutional goals • New Processes • New Policies • Making Decisions • Working Smarter • Valuing people

  8. New Strategy • Is it necessary ? • Will there be great change at VUT ? • Will old habits be disguised in the form of new ones • Council wants change – New VC wants change –Do we want change or are we happy in our “comfort cubicle”

  9. Off Course We All Want Change ! • Change our strategy ? Or • Should we be changing ? Or • Should we try to change others while we sit in our “comfort cubicles” or • Let us see how things change elsewhere before we implement changes

  10. Change What ? • Size • Cut costs or increase income • Move funds to core or to value adding activities • More staff to improve service • Working smarter • Change your management style

  11. What has changed ? • Rationalist view – people are not rational • Are we self centred – suckers for praise • We are all number one – we are all winners – we are all stars – whose benchmark is it anyway ?

  12. Transforming Leadership “Leadership is not magnetic personality – that is charm It is not about making friends and influencing people – that is flattery Leadership is lifting a person’s vision to higher sights and performance to a higher standard” (author to be found)

  13. Transforming Leadership Inspire, motivate, quality, understanding, the best, objective, control, values, responsible, accountable, transparent, mostly accurate, knowledgeable, timeliness, flexible, eager, READER, LISTENER, HONEST, DECISION MAKER

  14. GOVERNANCE • About how an organisation steers itself and the processes and structures used to achieve its goals • Key elements for a model of good governance includes accountability, transparency, and effectiveness in respect of decision-making processes which deliver on objectives

  15. GOOD GOVERNANCE • Facilitate decision-making • Allows appropriate delegation of accountability and responsibility • Ensures varying interests of stakeholders are appropriately balanced • Decision making is rational, informed and transparent • Decisions contribute to efficiency & effectiveness of the institution

  16. Principles of Good Governance • Rights and Equity • Stakeholder Interest • Integrity • Ethical Behaviour • Disclosure and Transparency

  17. University Governance • Determination of internal values • Systems of decision-making and resource allocation • Mission and Vision • Authority • Relationships – academic, businesss and community (internal & external) • University Council has overall governance role

  18. COUNCIL -Relevance of King II • Has full & effective control over institution • Must ensure the VUT complies with all relevant laws, regulations, codes of business practice and communicates with stakeholders openly and promptly • Has power & delegates written authority to management

  19. COUNCIL -Relevance of King II • Has unrestricted access to all University information • Develops a code/process to address conflicts • Identify key risk areas and key performance indicators • Takes a position on the “Going Concern” assumption of the organisation

  20. COUNCIL -Relevance of King II • Adopts strategic plan • Monitors Management Performance • Develops/approves policies and procedures to ensure integrity of risk management and internal control • Monitors physical & operational risks, human resources risk, technology risks, business continuity and disaster recovery, credit and market risk and compliance risk

  21. AUTHORITY • Power to enforce rules or give orders • Person accepted as a source of reliable information on a subject • Decision in law (legal precedent) • VUT has a formal authority system • Authority can be delegated but resisted by many - the risks involved • Too much authority - frustrating ?

  22. RESPONSIBILITY • Obligation to achieve goals related to a position/function • Can be achieved if job functions are clearly defined • Cannot have authority without taking responsibility • Cannot take responsibility without been given proper authority

  23. Authority and Responsibility “AUTHORITY CAN BE DELEGATED, NOT RESPONSIBILITY” “ NO ONE TOOK RESPONSIBILITY BUT EVERYONE HAD AUTHORITY”

  24. ACCOUNTABILITY • Flows from Responsibility of a particular function • Meet demands that justify actions in terms of responsibilities • Accept consequences for fulfilling or failing to fulfill responsibilities • Moral Corporate Accountability ?

  25. Compliance • Constitution of South Africa • Higher Education Act No 101 of 1997 • University Statutes • Generally Accepted Accounting Practice (GAAP) • International Accounting Standards (IAS) • International Financial Reporting Standards (IFRS) • Higher Education Financial Reporting Manual

  26. Compliance • Labour Relations Act (LRA) • Basic Condition of Employment Act (BCEA) • Immigration Laws (Foreigners) • Annual Labour Reports • Worksman Compensation Act • Unemployment Insurance Fund • Occupational Safety

  27. COMPLIANCE • Financial Intelligence Centre Act • South African Revenue Services – Value Added Tax and Income Tax • Higher Education Management Information Systems (HEMIS) Report (External Audit) • External Financial Audit • Independent Internal Audit

  28. COMPLIANCE (Special External Audits) • Innovation Centre • Technology Station • National Research Foundation (NRF) • Teaching Development Grants (TDG) • Special Foundation Grants • HIV-AIDS Grants • Overseas Foundation Grants • National Student Financial Aid Scheme (NSFAS) • Higher Education Quality Committee (HEQC)

  29. RELATED PARTIES • Directors, owners, spouses conducting business with University • Includes staff writing books, educational material for students – policy to be developed by University • Ethics committee • Approvals by Management and Council

  30. Private Businesses/Consulting Work • Declaration • Permission from Management/Council • Monitoring by Line- Manager • Working Hours - Attendance • Use of Institutional Name • Use of University Assets

  31. FRAUD PREVENTION STRATEGY

  32. FRAUD PREVENTION STRATEGY Employment – information with employees consent • Past Employment Verification • Criminal Conviction Checks • Drug Screening • Reference Checks • Qualification Verification

  33. FRAUD PREVENTION STRATEGY Policies and Procedures to deter fraud • Perception of Detection – employees/suppliers will be deterred if they aware of policies • Proactive Programs to educate managers, employees on how to assist • Employee Education – pro active and non-accusatory. Make others eyes and ears of VUT

  34. WHAT OUR STRATEGY SHOULD NOT COMMUNICATE

  35. FRAUD PREVENTION STRATEGY Auditing High Risk Areas • Salaries –”pay by” claims and fixed contracts • Attendance, Leave & Loitering • Time Table “Doctoring” • Student accounts • Cafeterias • Motor Vehicle Usage

  36. FRAUD PREVENTION STRATEGY Auditing High Risk Areas • Splitting of Requisitions • Photocopy Usage • Cellphone and Telephone Usage • Related Parties • Arranged Supplier “Kickbacks”

  37. FRAUD PREVENTION STRATEGY • Enforcing Mandatory Vacations • Job Rotation • Surprise Audits (where possible) • Oversight – persons noticeably “endowed” • Undeclared business gifts and special invitations

  38. FRAUD PREVENTION STRATEGY • Detecting employee pressure – financial family problems • Speak to employees about their problems • Support programs for drugs, gambling etc • Organisation climate • Systems and Procedures and Hotlines

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