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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

LevelDescription
1

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.

2

Limited impact. Level 2 jobs have a clearly discernible, but limited, impact. For example an accounts clerk, junior engineer, draftsman, field sales positions, Secretary to the CEO, and lower level supervisory jobs.

3

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.

4

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, and 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 position's impact. These jobs include human resources manager, manager information services, production manager, or portfolio manager in an investment fund.

5

Major impact. Heads of significant organisational functions/operations, e.g. head of finance, sales and marketing, production/service delivery. Management and review of financial budgets and other organisational resources would normally be a critical aspect of these jobs. Positions at level 5 would report directly to the chief executive officer. They would make, or oversee the development of, significant contributions to the formulation of organisation policies. They may be members of the organisation's Board of Directors, or of a subsidiary of the organisation.

6

Restricted control and responsibility for an organisation. Heads of organisations with a restricted control over the use to which revenues generated by their organisation can be put, e.g. through legislative controls, or policy reign on the CEO due to, for example, philosophical, or societal values of the organisation. Here also, wealth maximisation for the organisation may not be the primary objective. Alternatively, the organisation may have near-guaranteed funding, eg. for the provision of an essential public service. A CEO would also be attributed this Level where there is unusually strong Board or ownership control (for example control that may be exercised by a parent organisation over its subsidiary), or where regulatory authorities closely prescribe the activities of the organisation's activities. Position may also be an Executive Director of the organisation.

7

Overall management control and responsibility. Full authority to set all aspects of organisation operating policy eg. product/market mix, production/service delivery systems, mergers, acquisitions and divestments, joint ventures, capital raisings or restructuring, human resource policies, financial systems, only limited by the broadest shareholder or Board of Directors guide-lines. Level 7 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 frequently is an Executive Director of the organisation, or may be its substantive owner.

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