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LEARNER GUIDE

IDENTIFY AND EXPLAIN THE

CORE AND SUPPORT FUNCTIONS OF AN ORGANISATION

SAQA ID : 242814 NQF LEVEL 3


Page

ABOUT THIS COURSE

3

LEARNER SUPPORT

6

ICONS

7

ACRONYMS

9

REVISION HISTORY

9

INTRODUCTION TO CORE AND SUPPORT

FUNCTIONS IN AN ORGANISATION

10

1 IDENTIFY AND EXPLAIN THE CORE BUSINESS

OF AN ORGANISATION.

12

2

EXPLAIN THE TYPES OF WORK DONE WITHIN THE VARIOUS CORE ACTIVITIES OF AN ORGANISATION.

18

3

EXPLAIN THE ROLE OF A SELECTED WORK UNIT IN AN ORGANISATION IN RELATION TO THE CORE BUSINESS.

23

4

IDENTIFY AND EXPLAIN THE DIFFERENCE BETWEEN THE LINE AND SUPPORT FUNCTIONS WITHIN A SELECTED ORGANISATION.

29

TABLE OF CONTENTS


ABOUT THIS COURSE

This Unit Standard provides an understanding of the core and support functions of an

organisation. This Unit Standard is intended for junior managers of organisations

Learners should be competent in Communication and Mathematical Literacy at NQF Level 2.

❑ Core activities are directly related to income generated by an organisation.

❑ Support functions are functions which support and indirectly contribute to the main purpose and Include, but are not limited to, human resources, training and development, salaries, IT, auditing, marketing, legal, accounting/credit control and communications. ❑ 'Area of responsibility' includes, but is not limited to, cost centre, section, department or team. ❑ “Work unit' includes, but is not limited to, department, section, component and category.

❑ 'Junior managers' include, but are not limited to, team leaders, supervisors, foremen and section heads. ❑ 'Standard Operating Procedures' (SOPs) may comprise formal written documents or accepted practices in the organisation. ❑ 'Organisation' includes but is not limited to, workplace, work context, work unit, company, department or section.

❑ Make sure that you read the assignment and understand the

instructions. If you are unsure of the assignment or instructions,

speak to your Facilitator.

❑ All the assignments must be in your own hand writing and you must

use a black pen.

❑ Write neatly and clearly.

❑ Assignments must be submitted on time.

❑ Add or attach all extra evidence that is required for the assignment.

The qualifying learner is capable of:

Explaining the various core functions of an organisation. Explaining the support functions of an organisation.

Explaining the role of a selected work unit in an organisation, in relation to the core business. Investigating and explaining the difference between line and support functions in an organisation.

Learning Assumed to be in Place and Recognition of Prior Learning

Unit Standard Range

Purpose of Unit Standard

Assignment Instructions


As much as it is the responsibility of the Facilitator to make sure that you are being

trained it is your duty to take responsibility for your own training. Here is a list that will

guide you.

✓ Arrive on time for the course.

✓ Come prepared for training, bring a writing pad and pen.

✓ Take notes during the course to ensure understanding.

✓ Ask questions if you are not sure of something or if you do not understand.

✓ Have fun while learning.

✓ Have a positive attitude.

❑ It is the Facilitator’s responsibility to ensure that your learning sessions are fun, easy

and planned.

❑ Keep in mind that the Facilitator is there to assist you should you need his / her

help.

❑ The Facilitator will ensure that you get all the course material that is required.

❑ If you need any resources or location of resources you can ask your Facilitator to

guide and assist you.

During the training you will be participating in some activities. This is done for the

following reasons:-

❑ To find out how much you already know.

❑ To determine how fast the Facilitator can work.

Keep in mind that we do not want to leave any

Learners behind at any time.

❑ To identify what type of Learner you are.

❑ Each of these activities is time limited in the

classroom, so ensure that you keep to the activities

at hand and do not get distracted.

Learner Responsibilities

Facilitator Responsibilities

Activities Instructions


The Learner Workbook is included in your Portfolio of Evidence and this needs to be

prepared and submitted for the summative assessment process. The summative

assessment is the assessment that you will be doing at the end of the course and the

following needs to be adhered to:

❑ Read the activities in the Learner Workbook properly.

❑ Obtain understanding of the workbook activities from your Facilitator, if you are

unsure of what is asked or expected of you.

❑ All the activities must be completed in your own handwriting and you must use a

black pen.

❑ Write neatly and clearly.

❑ All activities MUST BE submitted on time.

❑ Add or attach all extra evidence that is required for the activities.

Make sure that you contact any person mentioned in the Learner support section to

assist or guide you when needed. Also ensure that all the formative assessment

activities that take place during the learning session are attached and must be

submitted with the Learner Workbook (Portfolio of Evidence).

These will be activities that you will need to complete in your workplace. This may

include:

❑ Research

❑ Collection of proof in the form of documentation

❑ Having to perform a task or an activity

❑ Complete a POE (Portfolio of Evidence)

❑ Compile reports

This again means that:

❑ You will have to take responsibilities for your own learning.

❑ Ensure that all the work place activities are completed according to schedule.

❑ You will have to ask your Manager or Supervisor to sign the workplace checklist.

Workbook Activities Instructions

Work Place Activities Instructions


Please ensure that you contact any of the following persons if you require any

assistance with this learning programme.

LEARNER SUPPORT

Training Centre Manager

Name & Surname

Contact Number

Email Address

Facilitator

Name & Surname

Contact Number

Email Address

Assessor

Name &

Surname

Contact Number

Email Address

Coach(es)

Name &

Surname

Contact Number

Email Address

Mentor

Name & Surname

Contact Number

Email Address

Work Place Manager

Name & Surname

Contact Number

Email Address


The icons listed below are used throughout this Learning Programme to indicate what

task or activities are to be carried out. Please pay careful attention to them.

ICONS

SELF ASSESSMENTS

This icon means that

you will evaluate your

knowledge at the end

of a section of the

Learner Guide.

ASSIGNMENTS

This icon will tell you

that you as the Learner

will have to go and

complete some tasks

e.g. in the workplace.

SELF-STUDY

This icon indicates

that you will have

to do some self

study in your own

time.

GROUP DISCUSSIONS

This icon indicates that

you need to break

away into groups to

have a discussion

about the topic.

Discussions should not take more

than 15-30 minutes.

INVESTIGATIONS

When you see this icon it means

that you will have to do some

investigations either within your

organisation.

This icon could be combined with

the Research Icon.

PRODUCE DOCUMENTATION

EVIDENCE

Some activities will require you to

produce proof in the form of

documentation e.g. a report.

MAKE A VIDEO RECORDING

This icon means that you will need

to make a video recording of your

skills.


TALK TO A FRIEND

When you see this icon it requires

you to have a discussion regarding

the topic.

ROLE PLAY

This icon will indicate that you are

now required to complete a role

playing activity.

DEMONSTRATION

When you see this icon it means

that you will be required to

demonstrate a skill.

ACTIVITY

This icon will indicate an activity that

needs to be completed by yourself in

your Learner Workbook or Learner

Guide.

PRESENTATION

This icon will indicate that you are

now required to compile a

presentation.

GATHER INFORMATION

This icon will require you to look and

gather some further information.


The table below list the acronyms used in this Learner Guide.

ACRONYM

MEANING

SO

Specific Outcome

AC

Assessment Criteria

CCFO

Critical Cross-field Outcomes

Whenever the content of this Learner Guide has been changed, for whatever reasons,

details of the revision must be recorded below.

Revision Date (dd/mm/yy)

Issued By

Revision History

Revision No.

ACRONYMS

REVISION HISTORY


IDENTIFY AND EXPLAIN THE CORE AND SUPPORT FUNCTIONS OF AN ORGANISATION

A business process is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. It often can be visualized with a flowchart as a sequence of activities. It is important as a leader to understand the theory of business processes.

Types of Business Processes

There are three types of business processes:

Management processes: the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management". Operational processes: processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing and Sales. Supporting processes: which support the core processes. Examples include Accounting, Recruitment, Technical support.

A business process begins with a customer’s need and ends with a customer’s need fulfilment. Process-oriented organizations break down the barriers of structural departments and try to avoid functional silos.

A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub- processes down to activity level.


Exercise 1

Instruction to the Learner

❑ This is a group exercise that should take no more than 20 minutes.

❑ Through media, newspaper, workplace life etc., you must have

heard about support and core functions in the business

❑ In your group, discuss the different types of core business functions

Based on the outcome of your group discussion, write down your findings here

1. IDENTIFY AND EXPLAIN THE CORE BUSINESS OF AN ORGANISATION.

US NUMBER 242814

SO 1

AC 1 - 3

US CCFO ALL


1. EXPLAIN THE IMPORTANCE OF MOTIVATING A TEAM

AC1 THE CONCEPT OF CORE BUSINESS IS EXPLAINED, WITH EXAMPLES.

1. IDENTIFY AND EXPLAIN THE

CORE BUSINESS OF AN

ORGANISATION.

US NUMBER 242814

SO 1

AC 1

US CCFO COLLECTING

The organisation’s most important activities the central, and usually the original, focus of an organization's activities which differentiates it from others and makes a vital contribution to its success. These are essentially those activities that will generate the most income for the business.

The concept of core business became prominent in the 1980s when diversification by large companies failed to generate the anticipated degree of commercial success. It was later suggested that organizations should avoid diversifying into areas beyond their field of expertise. An organization's core business should be defined by its core competences

Core activities are business functions that are critical, and closely related, to a firm’s strategy expressed in customer service, marketing, product design, etc. Routine administrative and maintenance tasks are not a part of core activities.

The work done in these core activities are numerous and can be explained with an example: For the customer service activities, the work involved here would be to conduct a customer survey to gauge the satisfaction of the customer.

For the marketing activity, an analysis of the competitors is crucial to ensure market success.

For the product design activity, a test run of the product is essential to ensure the product meets the needs of the customer.


AC2 THE RELATIONSHIPS BETWEEN THE DIFFERENT CORE ACTIVITIES OF AN ORGANISATION ARE DESCRIBED, WITH EXAMPLES.

If we again take the customer as our core business, the above diagram clearly illustrates the relationship between the various business activities that takes place in the business to satisfy the customer.

Have a discussion in you group and see if you can trace the business functions for the customer that is illustrated in the diagram. Make your notes here.

1. Identify and explain the core

business of an

organisation.

US NUMBER 242814

SO 1

AC 2

US CCFO DEMONSTRATING


AC3 A VALUE-ADDING PROCESS WITHIN AN ORGANISATION IS EXPLAINED, WITH EXAMPLES.

There are two types of actions performed in a business, value added and non-value added.

Value Adding Processes

This is defined as a set of quality control activities which transform an input into an

output that is valuable to internal and/or external customers of an organization.

According to Business Knowledge Source (2010) Value added activities are things that add value to the final product such that the total value is greater than the cost.

Successful businesses will focus on value added tasks, whereas less successful ones will have non-value steps scattered throughout the process. The companies with a lot of non-value added tasks tend to be the ones that fail.

The thing to understand is the meaning of “value.” Value is anything for which a customer is willing to pay. It can also be thought of as an activity that can create a comparative advantage for your company.

A couple examples may make this clearer. When looking at a winery, a customer will obviously pay for the finished product, wine. So, when we look at the process to make wine, we find multiple value added tasks. The first is sourcing the grapes or juice. Since this step is very important in the quality of the finished product, then it is a value added activity. The same can be said for a retail store that sells wine. Sourcing the wine, either from importers or producers, is very important since it will appeal and sell to your customers. You can also think about these activities in terms of comparative advantage. If your winery or retail store is able to source the better grapes or better wine than the competition, that will give you an advantage.

Therefore, it is these activities that should receive the focus of your time.

A good way to measure if a process is a value adding activity is to subtract the value of the product before the value adding activity from it after the process has been finished.

1. Identify and explain the core

business of an organisation.

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SO 1

AC 3

US CCFO COLLECTING


1. EXPLAIN THE IMPORTANCE OF MOTIVATING A TEAM

Exercise 2


❑ This is an individual exercise that should take no more than 5

minutes.

❑ Read the questions below and then answer in the space provided.

Describe the core business function in your organisation

Which would you say is the business activity that adds the most value to your core business

Complete questions 1-3 in your LEARNER WORKBOOK, located in

your PORTFOLIO OF EVIDENCE.

Summative Task 1

1. Identify and explain the

core business of an

organisation.

US NUMBER

242814

SO 1

AC 1-3

US CCFO ALL


You will evaluate your knowledge at the end of each section of the LEARNER GUIDE. The

facilitator will mark this with you in the classroom and provide feedback and corrections

as needed. These will be handed in with your Portfolio of Evidence. Use the following

table to rate yourself by making an “X” in one of the blocks. You will need to make a

copy of this document and insert it into your LEARNER WORKBOOK under the section

titled Self Assessments.

SPECIFIC OUTCOME 1: Identify and explain the core business of an organisation. .

Assessment Criteria

I can implement

this practice at

my workplace

I

understand completely

I do not understand

Facilitators Signature

1. The concept of core

business is

explained, with

examples.

2. The relationships

between the different

core activities of an

organisation are

described, with

examples.

3. A value-adding

process within an

organisation is

explained, with

examples.

SELF-EVALUATION

US NUMBER 242814

SO 1

AC 1 - 3

US CCFO N/A


Exercise 3


❑ This is a group exercise that should take no more than 20

minutes.

❑ Through media, newspaper, workplace etc., you must have

heard about support and core functions in the workplace.

group, discuss the different types of work done in the core

activities of the business

Based on the outcome of your group discussion, write your discussions here

2. EXPLAIN THE TYPES OF WORK DONE WITHIN THE VARIOUS CORE ACTIVITIES OF AN ORGANISATION.

US NUMBER 242814

SO 2

AC 1-2

US CCFO ALL


AC1 THE VARIOUS ACTIVITIES OF AN ORGANISATION ARE IDENTIFIED, WITH EXAMPLES.


US NUMBER 242814

SO 2

AC 1

US CCFO COLLECTING

Almost all businesses and organisations have various areas of responsibilities for

examples a cost centre, a section, a specific department, these are generally referred to departments, work units or sections and are usually managed by junior managers, supervisors, team leaders and foreman.

As we can see from the above diagram, various departments, sections and work units work together to reach the objective and goal of the business.

The above diagram illustrates the key activities that must be performed in order to meet with these objectives. For example:

If production produces the product, the sales department must make sure that the

product reaches the customer and the finance department should ensure that the business gets paid.



US NUMBER 242814

SO 2

AC 2


AC2 THE WORK DONE IN THREE DIFFERENT ACTIVITIES IS EXPLAINED, WITH EXAMPLES.

Let us again look at the diagram from AC1- we will look closely at the work that is done in these various departments and activities:

DEPARTMENT ACTIVITY WORK DONE

Production Department

Research and development, Production and Quality and Distribution and logistics

Conducting research on new products and testing for the customers, physical production processes, transporting and getting the product to the customers.

Selling Sales, Marketing and

Market Research

Advertising and creating

the awareness of the product, actual selling of the product to customers, conducting market research on customer demands and preferences and obtaining information for further development in the market.

Supporting Computing, HR, Buying

and purchasing, finance, recruitment

Capturing information on

computers, doing admin work, recruiting and taking care of employee well being, buying and purchasing of raw material and making payments to suppliers and creditors as well as to employees.


Exercise 4



minutes.


Describe three main activities in your organisation.

State the exact tasks and work done in these activities.



Summative Task 2


US NUMBER

242814

SO 2

AC 1-2

US CCFO ALL



facilitator will mark this with you in the classroom and provide feedback and corrections as

needed. These will be handed in with your Portfolio of Evidence. Use the following table to rate

yourself by making an “X” in one of the blocks. You will need to make a copy of this document

and insert it into your LEARNER WORKBOOK under the section titled Self Assessments.

SPECIFIC OUTCOME 2: EXPLAIN THE TYPES OF WORK DONE WITHIN THE VARIOUS CORE ACTIVITIES OF AN ORGANISATION.

Assessment Criteria

I can implement

this practice at my

workplace

I understand completely

I do not understand


1. The various activities of an organisation are identified, with examples.

2. The work done in

three different activities is explained, with examples.

SELF-EVALUATION

US NUMBER 242814

SO 2

AC 1 – 2

US CCFO N/A


Exercise 5



minutes.


heard about core and support functions in the business.

workplace

❑ In your group, discuss the role your work unit plays in the

organisation.

Based on the outcome of your group discussion, write your findings here.

3. EXPLAIN THE ROLE OF A SELECTED

WORK UNIT IN AN ORGANISATION IN RELATION TO

THE CORE BUSINESS.

US NUMBER 242814

SO 3

AC 1-3

US CCFO ALL


AC1

THE FUNCTION OF THE SELECTED WORK UNIT WITHIN AN ORGANISATION IS EXPLAINED, IN RELATION TO THE CORE BUSINESS. .

The Human Resource Department would be discussed to demonstrate this AC:

The human resource department is devoted to providing effective and standard

operating policies, procedures, and people-friendly guidelines and support within companies.

Additionally, the human resource function serves to make sure that the company mission, vision, values or guiding principles, the company metrics, and the factors that keep the company guided toward success are optimized.

Human Resources are also organised around providing a specific component of Human Resource services including compensation, training, organization development, and safety.

These functions are important for the operations of the entire business as the staff members in the organisation are the individuals who are required to perform all of the production, administration, financial duties etc.

3. EXPLAIN THE ROLE OF A SELECTED WORK UNIT IN AN ORGANISATION IN RELATION TO THE CORE BUSINESS.

US NUMBER 242814

SO 3

AC 1



AC2 THE VALUE ADDING CONTRIBUTION THAT THE WORK UNIT ADDS TO THE ORGANISATION IS IDENTIFIED, WITH EXAMPLES. .

The core activities of attracting, retaining and developing human capital have further,

more specific activities that are required to be performed by management in the human resources department.

Attracting human resources consists of these additional tasks that are required to be performed. Human resource planning, which involves making estimations about the quality and quantity of people who may be required by the organisation in the future.

Recruitment requires that when a job becomes vacant inside the organisation, the necessary steps are taken to ensure that this post will be filled from inside or outside the organisation.

The selection can range from a short interview, to a very complex analysis procedure.

Placement involves allocating the person to the most suitable job.

Induction is the process where the new employee learns how to become an effective member in the organisation.

Retaining human resources is achieved through compensation, ensuring health and safety in the organisation and fair labour relations. The development of human resources is achieved through training and development and performance management.

The above illustrates how this department adds value to the business and its core activities.


US NUMBER 242814

SO 3

AC 2

US CCFO COLLECTING


AC3 THE INTER-RELATIONSHIP BETWEEN WORK UNITS IN ACHIEVING ORGANISATIONAL OBJECTIVES IS EXPLAINED.


US NUMBER 242814

SO 3

AC 3



The production department interacts with the human resource department, and their effectiveness is dependent on this department. The reason for this is that production in a organisation cannot take place efficiently if unskilled, not enough, unsuitable and untrained people are placed into positions that have specific requirements. It is the task of human resource manager to ensure that production can take place effectively and efficiency. On the other hand production of goods and services creates profit, and the more money that is created, the more the people will be employed. It is possible to see that the departments in organisations work together and contribute to the functioning of the entire organisation.

The human resource manager is the most senior person in the human resource department. The following diagram illustrates that top management is on the highest level of hierarchy and each of the departments in the organisation are lead by specifically trained department managers

Board of Directors

Top Management

Human Purchasing Operations Marketing Finance

Resource

The diagram below illustrates that subordinates are not allowed to communicate directly with the higher levels of management. They are required to consult with their direct managers and the message will be conveyed to the person who is responsible for dealing with the issue.

HR Manager

Training & Payroll Staff Admin Performance Recruitment

Development Management

Salaries Deductions Benefits


Exercise 6



minutes.


Choose a work unit or function from your organisation and explain how it adds

to achieving the organisation’s objective.



Summative Task 3

3. Explain the role of a

selected work unit in an organisation in relation to the core business.

US NUMBER

242814

SO 3

AC 1-3

US CCFO ALL







SPECIFIC OUTCOME 3: EXPLAIN THE ROLE OF A SELECTED WORK UNIT IN AN ORGANISATION IN RELATION TO THE CORE BUSINESS.

Assessment Criteria

I can implement

this practice at my

workplace


I do not understand


1. The function of the selected work unit within an organisation is explained, in relation to the core business.

2. The value adding

contribution that the work unit adds to the organisation is identified, with examples

3. The value adding contribution that the work unit adds to the organisation is identified, with examples

SELF-EVALUATION

US NUMBER 242814

SO 2

AC 1 – 3

US CCFO N/A


Exercise 7



minutes.


heard about core and support functions in a business.

❑ In your group, discuss the difference between line and support

functions.

Based on the outcome of your group discussion, write your findings here.

4. IDENTIFY AND EXPLAIN THE DIFFERENCE BETWEEN THE LINE AND SUPPORT FUNCTIONS WITHIN A SELECTED

US NUMBER 242814

SO 4

AC 1-2

US CCFO ALL


AC1 THE CONCEPT OF LINE AND SUPPORT FUNCTIONS IS EXPLAINED WITH EXAMPLES.

A line function is one which is involved in or contributes directly to the main business activity of a firm while support functions are those functions which help or assist line functions accomplish the primary objectives of the enterprise.

They are activities which are indirectly related to the major objectives of the firm. Additionally, Line functions are those activities that give definition to the organization structure and which ensure that the product or service is produced and reaches the customer at a profit. Whereas, support functions are subsequently added to assist Line managers in accomplishing their goals.

Some examples of support functions are:

❑ Marketing ❑ Human Resources ❑ Purchasing ❑ Accounting / Credit Control ❑ Training and Development ❑ Information Technology ❑ Communications


US NUMBER 242814

SO 4

AC 1



AC2 THE RELATIONSHIP BETWEEN A LINE AND SUPPORT FUNCTION IS EXPLAINED, WITH REFERENCE TO OWN WORK UNIT.

LINE-AND-STAFF POSITIONS

A wide variety of positions exist within a line-and-staff organization. Some positions are primary to the company's mission, whereas others are secondary the form of support and indirect contribution. Although positions within a line-and-staff organization can be differentiated in several ways, the simplest approach classifies them as being either line or staff.

A line position is directly involved in the day-to-day operations of the organization,

such as producing or selling a product or service. Line positions are occupied by line personnel and line managers. Line personnel carry out the primary activities of a business and are considered essential to the basic functioning of the organization. Line managers make the majority of the decisions and direct line personnel to achieve company goals. An example of a line manager is a marketing executive.

Although a marketing executive does not actually produce the product or service, he or she directly contributes to the firm's overall objectives through market forecasting and generating product or service demand. Therefore, line positions, whether they are personnel or managers, engage in activities that are functionally and directly related to the principal workflow of an organization.

This is how the relationship between the line and support function can be illustrated.


US NUMBER 242814

SO 4

AC 2



Exercise 8



minutes.


Explain the difference between line and support functions and provide examples from your workplace.

Complete questions 9-10 in your LEARNER WORKBOOK, located

in your PORTFOLIO OF EVIDENCE.

Summative Task 4/5


US NUMBER

242814

SO 4

AC 1-2

US CCFO ALL







SPECIFIC OUTCOME 4: IDENTIFY AND EXPLAIN THE DIFFERENCE BETWEEN THE LINE AND SUPPORT FUNCTIONS WITHIN A SELECTED

Assessment Criteria

I can implement

this practice at my

workplace


I do not understand


1. The concept of line and support functions is explained with examples.

2. The relationship

between a line and support function is explained, with reference to own work unit.

SELF-EVALUATION

US NUMBER 242814

SO 4

AC 1 – 2

US CCFO N/A

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