Table of Contents
To achieve success, both individuals and organisations need to have the knowledge, skills, and behaviours required for effective management and leadership across various organisational settings.
The CMI 501 assessment is designed to help learners demonstrate their understanding of how an organisation’s structure and governance impact management and leadership. Learners will show how different theoretical models and leadership styles can be applied in the workplace. They’ll also review the key skills and behaviours needed to be effective in leadership roles and suggest ways to foster a culture of trust, respect, and support within teams.
Assessment Questions
LO1 Understand factors which impact on an organisation’s internal environment
AC 1.1 Examine the impact of legal status on the governance of an organisation
Example
The legal status of an organisation can influence how it’s governed in several ways. One key impact is on the liability of board members and officers. For instance, in a corporation, board members and officers can be held responsible for any damages the organisation causes. In contrast, board members and officers of a nonprofit are generally not personally liable for such damages.
The legal status also affects decision-making. A for-profit corporation can typically decide how to use its profits independently, while a nonprofit usually needs board approval before deciding how to spend its funds.
planning. Together, the mission and vision statements serve as a roadmap, helping the organisation stay focused. They also encourage employee commitment by clarifying the goals and showing how each person’s work contributes to them. AC 1.3 Examine the impact of organisational structures on management roles Example An organisation’s structure greatly affects managers’ roles and responsibilities. In a hierarchical organisation, there is a clear chain of command, so managers have well-defined roles. In a flatter or more decentralised organisation, roles may be less defined. In a matrix structure, managers may need to balance different demands from various parts of the organisation. Understanding how structure affects management roles is important for several reasons. It helps managers understand their own roles and responsibilities, see how they fit into the larger organisation, and know what authority they have. This understanding also helps managers work more effectively within the organisation’s structure. AC 1.4 Discuss the impact of organisational values and ethics on management decision making Example Organisational values and ethics strongly influence management decisions. Values are the guiding principles for an organisation’s actions, while ethics are the moral standards that shape those actions. Values provide a framework for decision-making, helping managers determine what’s right or wrong. For instance, if honest...
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