Governance mechanisms are the processes and structures by which an organization is directed and controlled. They include the board of directors, management, shareholders, and other stakeholders. For this assessment criterion, you will be examining the governance of your own organization and critically evaluating how procedures and mechanisms related to its identity.
The board of directors is the most senior governance body and is responsible for setting the strategic direction of the organization. It oversees the management and makes decisions on key issues. The management team is responsible for implementing the strategy set by the board and reporting back to them on a regular basis. shareholders are those who own shares in the company and have a financial interest in its success. Other stakeholders include employees, customers, suppliers, and the community.
A good definition of social care governance can be found in SCIE’s publication Social care governance: a workbook based on practice in England:
‘Governance is the system by which an organization is directed and controlled. It comprises the structures and processes that determine how an organization behaves, makes decisions, allocates resources, and exercises power. Good governance ensures that an organization is effective and efficient, delivers good outcomes for people it supports and complies with laws and regulations.’
Furthermore, in the preamble for Regulation 17 of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014, the Care Quality Commission (CQC) describe governance as:
‘The responsibility of the board is to ensure the provision of services are being run in line with what people receiving care expect, are suitable, meet regulatory requirements, and are properly regulated. All providers must have a system in place for holding themselves to account for their compliance with these standards and meeting any legal or contractual responsibilities under which they operate.’ This regulation outlines the requirements for providers of health care and social care services to have an effective governance structure in place.