The document discusses organizational design and decentralization for NECs (National Employment Councils). It provides background on aligning organizational structure with strategy. Signs of outdated structures are identified as well as functions of NECs. A functional analysis is conducted to map core and support processes. A recommended ideal structure is presented with the Board/Council at the top, followed by core processes like industrial relations and support processes like finance. Flexible and outsourced structures are also discussed.

2. NEC Management System:
The Ideal Structure Of The Secretariat and Decentralisation.

3. Objectives
Appreciate the basic fundamentals of decentralisation
Understand the dynamic nature of structures in a volatile environment
Give participants appreciation of the need to link organisational design to strategy
Provide background to organisational design

4. Background To Organizational Design
The destination informs the route that one should take
People have been organizing their efforts and working together for as long as there have
been cultures and societies and long before a scholar thought to study and write about
these processes and interactions.
Organizations are created and developed to be able to achieve a series of strategic aims,
for this reason, the design of an organization must always be aligned and coherent with its
strategy.
The organization is the principle determining factor of business capabilities and for this
reason its development is a key point for the strategic evolution of any organization.
It follows therefore that a good organisational design is one that allows an organisation to
fulfill its mandate by effectively utilising the available resources

5. Why re-design ?
ONE
Over the lifecycle of an
organisation, the external
environment becomes
more complex, businesses
processes, structures and
systems that once worked
become barriers to
efficiency, employee
morale and business
viability. .
TWO
Continuous improvement
must be the lifeblood of
any organization.
THREE
Organizational structures
must be continuously
reviewed and designed to
ensure delivery of the
product or service to the
market place or
beneficiaries.
FOUR
Structures must deliver
value to key stakeholders
usually shareholders and
customers

6. Signs of outdated structures
Redundancies in effort
(“we don’t have time to
do things right, but do
have time to do them
over”)
Silo mentality and turf
battles
Lack of ownership (“It’s
not my job”)
Cover up and blame
rather than identifying
and solving problems
Delays in decision-
making
People don’t have
information or authority
to solve problems when
and where they occur
Management, rather
than the front line, is
responsible for solving
problems when things
go wrong
Systems are ill-defined
and we reward for the
wrong things
Mistrust between
workers and
management
Misalignment with the
strategic intent

7. Functions of the NEC.
Assist its members with the negotiating acceptable CBAs.
Prevent disputes from arising
Settle disputes that have arisen between parties to the NEC
Ensure that CBA and any regulations for an undertaking are being observed
• Advise and assisting employees on their rights of employment
• Enforcement of the CBA
• Preparation of Accounts
By implication the duties of a Designated Agent and Audit of accounts
Investments and employment creation.

8. Functional Analysis
This is a process where you analyze the functions of an organization for
purposes of developing a functional structure.
You carry out process mapping to map all the process of the organization.
Group similar processes into two categories that is Core processes and
support processes
Group similar functions to form specialty functions ordinarily called
departments.
Pay attention to important ratios:
• Core to support
• Managerial to non managerial
• Positions to numbers of people
• Spans of control.

9. Other Functional Considerations
Cost implications of the structure
Geographical spread
Decision making
• Centralization and decentralization
• Tall or flat – bureaucracy

10. Challenges Of Structuring NECs
Dealing with
legislation and
rigidity
Narrow scope with
respect to
mandate and
activities.
Fluid ownership
Lack of strategic
direction
Cost implications

11. Functional Analysis and organizational Design
 Designing your organisational structure;
Understanding
the mandate if
the NEC and its
strategic
direction
Identify key
processes and
functions
Determine
strategic job
families
Ascertain
competencies
required for for
each job
Organizational
Structure

12. Functional Analysis of NEC
Negotiating CBAs
Presenting disputes from arising
Settle disputes between parties
Enforcement of implementation
of CBAs
Employment creation
Investment and revenue
generation
Research & Capacity building
Accounting & Financial
Management
Administration
Human Resources Management
PR & MarketingCoreprocesses
Supportprocesses

13. Recommended Ideal structure
Board/Council
CEO
Core Processes
Industrial
Relations
Employment
Creations
Investments &
Revenue
Generations
Research &
Capacity
Support Processes
Financial
Management
Administration Human Resources
Public Relations &
Marketing
Audit Personal Assistant

14. Flexible Organizations
Many businesses are focusing on CORE activities and
shedding of NON CORE activities
This has to do with:
• Core competencies
• Dealing with complexity and change
• Size and resources
Organizations of today are adopting structures along
the lines of Handy’s Three Leaf “Shamrock” Model

15. Handy’s Three Leaf “Shamrock” Model
3 Leaf Shamrock Model

16. OUTSOURCING
Greaver (1999) listed 20 reasons for outsourcing.
He categorized them into 6 categories:
• Improvement driven reasons
• Financially driven reasons
• Cost driven reasons
• Revenue driven reasons
• Employee driven reasons
• Organizationally driven reasons

17. Going Around The Problem
Collective decentralisation leveraging on each other
• legalities,
• numbers where you have more numbers
• Cost sharing model
• Revenue sharing model
Shared services for the support wing.
Outsourcing certain functions especially support services

18. THE End
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