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3.3 Impact

Impact measures the overall contribution the position makes towards the organisation, relative to all other positions in the organisation.

Table 3.3 Impact


Minimal impact. Usually non-professional support positions. Level 1 positions have a very limited, minimal, or no discernible ability to impact on either the organisation's total annual revenue or budget.


Limited impact. Usually supervisory or field sales positions. Level 2 jobs have a clearly discernible, but limited, impact, for example an accounts clerk, or a junior engineer or draftsman, sales representative, Secretary to the CEO.


Exercises a participative or advisory role. Major supervisory or fully professional staff. Level 3 jobs either participate directly, or advise. Examples are an accounts supervisor, senior personnel officer, production supervisor, and lawyer.


Performs an important participative or advisory role. Senior specialist positions; regional managers; or managers of a subordinate function, eg. management accountant, quality assurance manager, company secretary, chief legal officer, production manager. Level 4 positions cover some advisory staff, or line management roles where advice or decisions clearly have an important impact on either expenditure or revenue. Decisions made by positions at this level can often be reviewed elsewhere, thus reducing the positionís impact. These jobs include human resources manager, manager information services, production manager, or portfolio manager in an investment fund.


Major impact. Heads of major functions, eg. head of finance, sales and marketing, production/service delivery. Alternatively, Chief Executives with a restricted control over the use to which revenues generated by their organisation can be put, eg. through legislative controls, or policy reign on the CEO due to for example philosophical, or societal values of the organisation. Here also, overall wealth maximisation for the organisation may not be the primary objective. Alternatively, the organisation may have near-guaranteed funding, eg. for provision of an essential public service. Where the CEO of an organisation is restricted in this way then the corresponding positions reporting directly to the CEO should be rated one level lower than would otherwise be the case. When we reach Level 5 we find jobs are responsible for running the business and where operation decisions are rarely reviewed. Here we would expect to find positions such as heads of manufacturing or marketing, finance director, head of investment in a financial services organisation, or director of human resources. A CEO would also be attributed this Level where there is unusually strong Board or ownership control, or where regulatory authorities closely prescribe the activities of the organisation's activities. Position may also be an Executive Director of the organisation.


Overall management control and responsibility. Full authority to set all aspects of organisation operating policy eg. product/market mix, production/service delivery systems, human resource policies, financial systems, only limited by the broadest shareholder or Board of Directors guide-lines. Level 6 is confined to a CEO with the ultimate responsibility to the Board for results. At this level operating decisions are rarely subject to review, although recommendations for investment and funding mechanisms usually would. Position may also be an Executive Director of the organisation.

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