Striving for the perfect partnership: Governance vs Management

The Higher Education Act (Act 101 of 1997) (the HEA) provides that:

• the council of a public higher education institution must govern the public higher education institution. [2]
• the principal and vice chancellor of a public higher education institution is responsible for the management and administration of the public higher education institution. [3]

What is the difference between governance and management?

GOVERNANCE	MANAGEMENT
Governance is simply the system by which companies are directed and controlled. [4]	Management concentrates on the implementation of systems.
In the execution of its governance function Council focuses on strategic issues.	The Principal and Vice Chancellor (in concert with the Management Committee) is responsible for the operational management of the University.
It is concerned with the structures and processes associated with management, decision making and control in organisations.	Management must ensure that the processes of decision making and control are adhered to.
Governance relates to the governing of an organisation at the top. [5]	Management is responsible for ensuring that the operational functions of the University are effective and efficient.
It concentrates on the activities of those bearing the ultimate responsibility for the success or failure of the institution.
Good governance is the means of ensuring due and adequate control over the strategy and direction of any organisation in achieving this key objective, having due regard for the interests of all stakeholders. [6]	Good management means the University is operationally effective, but it may still be ineffective in its relationships with Council, Management, employees and other stakeholders.
Governance is concerned with the conduct of leadership.	Management is concerned with the operational running of the University.
Corporate governance represents a collection of broad principles and practices for the efficient, effective and profitable running of an organisation in pursuit of strategic objectives and in compliance with principles of best business practice and applicable legal and regulatory requirements. [7]	Management can expect clear and unequivocal views on strategic direction from Council.
Governance focuses on overall control.	Management focuses on performance and results.
Governance acts as the facilitator between Council and Executive Management to ensure that the University is exposed to governance philosophies, principles and values.
Governance is described as “hands-off”.	Management is “hands-on”.
Governance is about approving policy and goals.	Management is concerned with ensuring that the policies are implemented and the goals achieved.

The interface between governance and management, which is sometimes difficult to define, must be reviewed regularly as part of a balancing act of good governance.

Although there is a well-developed appreciation of governance issues and the allocation of responsibilities between Council and the Principal and Vice Chancellor, it is important to test and enhance this understanding.

If any concerns exist, they should be raised with the Principal and Vice Chancellor to investigate and report back, or indeed to respond that the issue is of a managerial nature and therefore outside Council-specific jurisdiction .

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[2] Higher Education Act (Act 101 of 1997), section 27.
[3] Higher Education Act (Act 101 of 1997), section 30.
[4] Wixley, T. & Everingham, G. 2002. Corporate governance. Cape Town: Siber Ink.
[5] Tricker, R.I. 1984. Corporate governance. Aldershot: Gower.
[6] Notes by PriceWaterhouseCoopers.
[7] Notes by PriceWaterhouseCoopers.

Approved - Management Committee -  17.01.06
(c) 2006 UNISA