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SETA Forum: SP Managers. That OFO - Outline. Why have an Organising Framework of Occupations Where has this OFO come from What is the OFO How does this OFO work How do we use this OFO. Why have an OFO.

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Seta forum sp managers

SETA Forum:

SP Managers

That ofo outline
That OFO - Outline

  • Why have an Organising Framework of Occupations

  • Where has this OFO come from

  • What is the OFO

  • How does this OFO work

  • How do we use this OFO

Department of Labour supported by GTZ

Why have an ofo
Why have an OFO

  • Principal tool for having a common language for collecting and analysing labour market information

    • Defining needs and aligning strategies requires a common language to speak about and define occupations

    • Occupations can provide a link between SAQA learning fields and economic sectors responsible for identifying and addressing needs

  • ILO’s International Standard Classification of Occupations

    • South Africa adopted ISCO used by StatsSA for all national reporting, Labour force and household surveys

  • 2000 – 2005 Employers, SETAs and DoL using SASCO for

    • WSPs and SSPs

    • Employment Equity reporting

Department of Labour supported by GTZ

Where has this ofo come from
Where has this OFO come from?

  • By 2003 clear that SASCO does not provide

    • Detail SETAs require for good skills analysis, development planning and labour market interventions

    • Major groups and occupation titles no longer consistent with labour market

  • DoL initiates process to refine and coordinate collection of information on scarce and critical skills

    • International review reveals

      • Australian Bureau of Statistics (ABS) and Statistics New Zealand initiate stakeholder-driven process with wide consultation – March 2001

      • Outcome: Updated classification system, the Australian and New Zealand Standard Classification of Occupations (ANZSCO) – finalised June 2006

  • From February 2005, South Africa leveraging off ANSCO

    • Refined over 3 consecutive years of SETA data collection processes and one cycle of HSRC verification process

    • Core tool for identification of scarce and critical skills

    • Core tool underpinning organising principles for proposed QCTO

Department of Labour supported by GTZ

What is the ofo system
What is the OFO? System

  • A skills based, coded classification system

  • Captures all jobs in the form of occupations

  • Groups occupations based on similarity of -

    • skill specialisation and

    • skill level

      into successively broader categories or hierarchical levels that can be used for varying statistical and analysis purposes

Department of Labour supported by GTZ

What is the ofo concepts
What is the OFO? Concepts

  • Occupation

    • Set of jobs that require the performance of similar or identical sets of tasks across a range of contexts

  • Skill Specialisation - defined in terms of

    • Range and complexity of the tasks

    • Field of knowledge required

    • Tools or equipment used

    • Materials worked on or information worked with

    • Goods or services provided

  • Skill level - determined by

    • Level or amount of formal education and training

    • Amount of previous experience in a related occupation

    • Amount of on-the-job training

      required to competently perform the set of tasks required for that occupation

Department of Labour supported by GTZ

What is the ofo structure
What is the OFO: Structure

  • Major groups (1) 8

  • Sub-Major (2) 43

  • Minor (3) 100

  • Unit Groups (4) 374

  • Occupations (6) 1233

  • Alternative titles &

    Specialisations Numerous

  • Skills Levels 5

    • NOT a grading system

Department of Labour supported by GTZ

Major Group

1 Digit

Technicians and Trades Workers

Sub-major Group

2 Digits

Automotive and Engineering Technicians and Trades Workers

Minor Group

3 Digits

Unit Group







4 Digits

Metal Fitters and Machinists


Aircraft Machinist

Automotive Machinist

Metal Machine Setter

Metal Turner

Milling Machinist

Radial Driller

Computer Numeric Control Setter

Diesel Mechanic



Plant Mechanic

Maintenance Fitter

6 Digits

Fitter (General)

Metal Machinist (First Class)

Mechanical Engineering Trades Workers

Department of Labour supported by GTZ

How does this ofo work
How does this OFO work?

  • Bottom up

    • Identify occupational titles

    • Cluster by similarity of tasks, activities and levels

    • Identify similarities = alternative titles differences = specialisation

  • Descriptors:

Previously employers developed matrices of job titles to match to SASCO

Descriptors provide means to ensure occupational titles being used uniformly across employers and sectors

Suggestion: Number of SETAs running through whole OFO with appropriate structures to “clean” up for their sector – customise OFO and make easier to use

Department of Labour supported by GTZ

Collecting occupational titles
Collecting occupational titles

Chief Financial Officer

Finance Director

Technical Training Manager

Education Training and Skills Development Manager

Human Resources Development Manager

Labour Relations Manager

Budgeting Manager

Human Resources Development Manager

Organisational Development Manager

Chief Accountant

Employee Relations Manager

Organisational Performance Manager

Department of Labour supported by GTZ

Grouping by descriptors occupation level
Grouping by Descriptors: Occupation level


  • AccountSystems Manager,

  • Budgeting Manager,

  • Chief Accountant,

  • Chief Financial Officer (CFO),

  • Finance Director,

  • Financial Administrator,

  • Financial Controller,

  • Foreign Exchange Manager,

  • Internal Revenue Controller,

  • Revenue Assessment Manager,

  • Revenue Fraud & Prosecutions Manager

Finance manager

Plans, organises, directs, controls and coordinates the financial and accounting activities within an organisation

Department of Labour supported by GTZ

Grouping by descriptors tasks or skills
Grouping by Descriptors: Tasks or Skills

  • Advising on investment strategies, sources of funds and the distribution of earnings

  • Assessing capital finance proposals and the financial status of operational projects

  • Coordinating the development, implementation and monitoring of accounting systems

  • Delivering long range profit forecasts, budgeting & financial reporting

  • Determining, implementing, monitoring, reviewing and evaluating budgetary and accounting strategies, policies and plans in consultation with other managers

  • Directing the preparation of financial reports summarising & forecasting the organisation's financial position such as income statements, balance sheets and analyses of future earnings and income

  • Ensuring compliance with financial legislation and standards

  • Providing financial information and interpreting the implications for business performance and funding needs

Department of Labour supported by GTZ

Grouping by descriptors minor group
Grouping by Descriptors: Minor group


Business Administration Manager

Plans, organises, directs, controls and coordinates the corporate, financial, personnel, policy and planning activities and guidelines within an organisation


Corporate (Administration & Business) Services Managers


Finance Managers


Human Resources Managers


Policy and Planning Managers


Research and Development Managers

Department of Labour supported by GTZ

Grouping by descriptors sub major
Grouping by Descriptors: Sub-Major


Specialist Managers

Plan, organise, direct, control and coordinate special functions within organisations such as advertising and sales, financial, personnel, production and distribution, education, health and welfare, or ICT


Advertising, Marketing and Sales Managers


Business Administration Managers


Construction, Distribution and Production / Operations Managers

Education, Health and Welfare Services Managers



Information and Communication Technology Managers


Small Business, Office, Programme and Project Managers

Department of Labour supported by GTZ

Skills levels
Skills Levels

Department of Labour supported by GTZ