Organizational Development: A Manual for Managers and ... - FPDL

Auditing procedure
Examination of
organizational
structure defined by
the legislation and
internal normative
acts
INITIAL STAGE
Analysis of the
actual organizational
structure. Analysis of
differences between
formally defined and
actual structure
INTERVIEW STAGE
Assessment of what
measures might be
implemented to sort
out the things
PREPARATION OF
AUDIT REPORT STAGE
Diagram 3 Auditing procedure
Auditing of organisational structure contains the following steps (diagram Nr. 3):
• Examination of organisational structure defined by the legislation and internal normative acts
(Initial stage).
• Analysis of the actual organisational structure. Analysis of the differences between formally
defined and actual structures (Interview stage and Preparation of audit report stage).
• Analysis if there are any obvious reserves for improving efficiency: reducing layers of control,
speeding up decision making, empowerment, and creating more shared services (Preparation
of audit report stage).
Information for organisational analysis may be collected during the interviews with the employees
and heads of departments. Form Nr. 7 and Form Nr. 8 may be used.
General model of organisation
General principles of the local government institutional structure are usually defined by the Local
Government Act or other laws. Additionally, the institutional structure may be defined by the
internal documents such as Statute of the Council or Statute of Administration (executive bodies).
The auditors should examine these documents carefully before starting the interviews.
The auditors use the interview with the highest officials of local government (Mayor, Chairman of
the Council, Head of Administration, theirs deputies – depending on the existing positions) to
examine if the relationships and division of responsibility are defined enough by the legislation and
internal normative acts, and implemented in practice in the same way.
The analysis is needed, because sometimes the highest officials may actually have different roles
and responsibilities than the auditors may assume without the thorough examination. I.e. Deputy
Mayor may directly control certain departments in the executive bodies, although the executive
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