BSBMGT517Manage operational plan1Housekeepin

BSBMGT517
Manage operational
plan
1
Housekeeping
Emergency procedures
Mobiles and security issues
Break times and smoking policy
This course is interactive – ask questions
Practise respect and confidentiality
Ground rules
2
Objectives
Discover how to develop an operational plan
Learn how to plan and manage resource acquisition
Know how to monitor and review operational performance
Gain skills and knowledge required for this unit
Develop operational plan

1.1 Research, analyse and document resource requirements and
develop an operational plan in consultation with relevant
personnel, colleagues and specialist resource managers
4
What is an operational plan?
An operational plan is derived from the strategic plan of the
organisation and is a detailed plan to accomplish the objectives
of the organisation
To be successful, your team should:
raise funds
allocate resources to fill gaps
clearly identify resource needs
have contingency plans
know the length of a project and sustain it.
Strategic plan
A strategic plan is written to answer:
What do we do?
Who are we doing it for?
How will we be successful?
Operational plan
You write an operational plan to answer:
Where are we now?
What do we want to be?

How do we get there?
What method/s can we use to measure our progress?
What is in an operational plan?
Organisational structure
Current and future desired goals
Who are the suppliers?
How many staff is required?
Facilities.
What is in an operational plan?
Production and manufacturing
Inventory
Distribution
Maintenance and service including customer service
Labour
Quality assurance, such
as how performance is
measured.
Effective operational plan
For an operational plan to be effective, it must:
Have clear goals, procedures, objectives, schedules and budgets
Include performance targets
Set timeframes

Have contingency plans
Issue responsibilities
Include strong cohesive teams.
Relevant personnel to consult with
Employees at the same level or more senior managers
Managers
Occupational health and safety committee/s and other people
with specialist responsibilities
Supervisors
Union or employee representatives.
Research, analyse and document resource requirements, that
include:
Goods and services to be purchased and ordered
Human, physical and financial resources - both current and
projected
Stock requirements and requisitions.
To make decisions, consider:
Consult with staff

Activity 1A
15
1.2 Develop and/or implement consultation processes as an
integral part of the operational planning process
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What is consultation?
Consultation is the process where you gather information from
both internal and external personnel to ensure that you can
make an informed decision
Consultation is a key principle in ensuring that your
organisation has a sound planning
and decision-making process.
Effective consultation
For consultation to be effective, you must start consulting early
in the process
Consulting requires that all parties are honest, open and
committed to the project
Consulting when performed
this way will assist in

enhancing relationships
between all parties.
Consultation processes
Consultation processes may refer to:
Email/intranet communications
Newsletters
Other processes and devices surveys, questionnaires and
informal sessions
Meetings
Interviews
Brainstorming sessions.
Feedback
Feedback is the process in what part of the output of a system is
returned to its input in order to regulate more output
Once you have gathered
both the formal and/or
informal information, you
should review it and select
any ideas of value to the
planning process.
Activity 1B

21
1.3 Ensure the operational plan includes key performance
indicators to measure organisational performance
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Key Performance Indicators (KPIs)
KPIs will assist you in the planning process
They will provide you with quantifiable measurements that will
reflect the success factors of the organisation
To be successful, KPIs must
reflect the organisation’s goals,
they must relate to the
organisation’s success, and
they must be quantifiable.
To write a KPI
2. KPIs have four components which are the:

i) Objective that tells what you aim to do. Example: To increase
sales
ii) Measurement is the measurement we use. Example: Sales
growth
3. These KPIs should be passed to their appropriate
subordinates.
1. Once a manager has formulated the department’s objectives
in line with its vision, mission, strategies and objectives.
4. The KPI is then monitored usually directly by the manager to
ensure that the KPIs have been met.
iii) Target is what we want to achieve and when. Example:
increase sales growth by 20% in 2011
iv) Initiatives is a set of all of the above actions, Example:
(i)To increase sale (ii) growth (iii) by 20% in 2011

Activity 1C
25
1.4 Develop and implement contingency plans for the
operational plan
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A contingency plan
Simply a secondary or alternative plan that can be implemented
when the original plan fails
These plans allow businesses and other entities to adjust as the
circumstances change
and you remain in operation
Most organisations have several
contingency plans geared to fast
responses in areas of operation.
Steps for creating a
contingency plan

Complete an impact assessment
Build the plan
Develop recovery strategies
Select suitable measures and control
Identify your needs

Identify your needs
Write the objectives of the contingency plan
State who is responsible for the development, maintenance and
implementation of the plan
Ask what is the scope of the plan
including which departments
participate in the execution of the plan?
Know how you will review the plan
Ask what resources, testing and training is involved in the plan?
Know how the plan will be maintained, backed up and stored.
To create an impact assessment
1. Identify the risks
What is the risk and the possible treatments for the risk?
2. What level of risk does the project pose?
What would happen if the risk happened?
3. What is the chance of each risk happening?
What is the potential of the risk?
4. Formulate a response
Design a plan in the case that the problem eventuates.

Select measures and controls
Once you identify the impact that disruptions can have, you
should consider preventative measures
Prevention is better than a cure. This will end up as a cost
assessment.
1.Transfer the risk to another party

2. Avoid the risk
3.Reduce the negative impact of the risk
4. Accept some or all of the consequences of the risk
Build the plan
Once you have identified the levels of risk, it is essential that
you determine how to best service the plan by identifying
contingencies
Costs play a part of the plan so it
is important to make sure that
any contingencies stay within
the budget set.

Test, train and maintain
Make sure that all staff are ready for any contingency. This
means that you may need to test the contingency and to train
your staff to ensure that the plan runs smoothly.
Contingency plans
Contingency plans may include:
Contracting out or outsourcing human resources and other
functions or tasks
Diversification of outcomes
Finding cheaper or lower quality raw materials and consumables
Increasing sales or production
Recycling and re-using
Succession planning
Continued..
Rental, hire purchase or alternative means of procurement of
required materials, equipment and stock
Restructuring of organisation to reduce labour costs
Risk identification, assessment and
management processes
Seeking further funding
Strategies for reducing costs,
wastage, stock or consumables.

Activity 1D
37
1.5 Ensure the development and presentation of proposals for
resource requirements is supported by a variety of information
sources and seek specialist advice as required
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Strategic goals
Can only be reached when
organisational activities are
completed to implement the
operational plan
To get a larger slice of the
budget, you need to
develop a business proposal.
Develop a business proposal

1. Identify strategic goals
2. Prioritise strategic goals
3. Conclusion
Present the proposal
The use of graphs to demonstrate costs, savings from previous
years
Strategies you considered and why you did not present them –
these can also be operational plans to support the strategic
plans.
Conclusions with the use of facts from your research.
A power point presentation with all of the key points of the
proposal

Contingency plans and risk management plans and when they
would be used and their impact on the proposal
Activity 1E
42

43
Obtain approval
Follow organisational policy and procedure
Stay as close to the timeline as possible within the approved
budget.
Develop SMART goals
Activity 1F
46
Plan and manage resource acquisition
2.1 Develop and implement strategies to ensure that employees
are recruited and/or inducted within the organisation’s human
resources management policies, practices and procedures
47

Human Resources policy and procedures
Obtaining approval for the advertisement for a job requirement
Budgeting and costs
Advertisement, interviewing
and selection of the applicants;
is there a budget allocated?
Attraction and retention
Reference checking
Induction.
Approval to employ staff
Once approval to employ staff is accepted, you need to:
Plan and review the role
Develop a selection criteria
Decide whether to outsource (use a recruitment agency) or the
use internal HR resources
Put together a panel
Plan the time for the
recruitment to take place.
Do not forget...
Outsourcing versus the HR Department
The costs
The applicants
Make sure the selection criteria
matches as close to the resume
as possible.

Activity 2A
51
2.2 Develop and implement strategies to ensure that physical
resources and services are acquired in accordance with the
organisation’s policies, practices and procedures
52
Supplier relationships
Relationship between the organisation and suppliers
To save on costs increase the supplier relationship by:
using TQM to build
lasting relationships
using JIT to save
in storage costs
which in turns
saves on
production costs.
Internal suppliers
Costs savings through:

Franchises
Networks
Customers
Measuring costs
What the supplier is looking for in the relationship
The way that the supplier is used by your organisation
How it relates to your organisation’s relationships with other
suppliers
Relationship costs and benefits –
Take the time to read this in your
learner guide.
Barriers to maintaining effective customer relationships
Bad communication
Not keeping it simple
Not knowing what is in it for yourself and the supplier
Not having a strong leadership team.
What influences the choice of supplier?
Organisational culture
Organisational guidelines which govern and prescribe
operational functions, such as the acquisition and management
of human and physical resources
Standard operating procedures
Undocumented practices in line with organisational operations.

Activity 2B
58
2.3 Recognise and incorporate requirements for intellectual
property rights and responsibilities in recruitment and
acquisition of resources and services
59
Intellectual property rights and responsibilities
When recruiting and acquiring resources and services, you need
to be aware of intellectual property rights and responsibilities.
Non-compliance with intellectual property requirements can
result in serious legal consequences, so it is important with the
concept – you must make every effort to comply with them
when acquiring resources and services.
Intellectual property within the organisation
Policies, procedures and information may include:
Intellectual property policy

Licensing agreements
Procedures for ensuring copyright protection
Procedures for registering intellectual property rights
Register of intellectual property assets
Activity 2C
62
Monitor and review operational performance
3.1 Develop, monitor and review performance systems and
processes to assess progress in achieving profit and productivity
plans and targets
63
"Performance management is the process of creating a work
environment or setting in which people are enabled to perform
to the best of their abilities. Performance management is a
whole work system that begins when a job is defined as needed.
It ends when an employee leaves your organisation."
Source: humanresources.about.com

Tools for measuring different types of performance
Measuring quality
quality assessment
quality monitoring
external evaluation of quality
Performance appraisals
Process appraisals
break downs
process report.
Processing performance
When processing performance, remember to ask:
The time in which the measurement took place
Did the measurement stay within acceptable performance
limits?
Have there been any changes
that will impact on the
measurement? If yes, how?
What is the level of quality
expected? Was this level
acceptable? Why? Why not?
Activity 3A

67
3.2 Analyse and interpret budget and actual financial
information to monitor and review profit and productivity
performance
68
Financial information
Financial information to monitor, includes:
Budgets
Ratio analysis
Budget forecasts
Cash flow statements
Profit and loss statement
Balance sheets
Investment and liability reports.
Activity 3B
70

3.3 Identify areas of under-performance, recommend solutions
and take prompt action to rectify the situation
71
Continuous improvement
“The process of increasing the quality and services through
incremental gains accompanied by occasional innovation.”
(Kuratko and Hodgetts, 1995, p.697)
Innovation and change
Innovation is the development of a new idea or a new
innovation. Innovation is looking at different ways to improve
your job while retaining the same standards in the quality of
your output. Innovation plays a huge role in your workplace
Innovation means the need to change
Change is implemented to make
a job run more smoothly.
Factors affecting output and quality
An increase in output can be caused by:
Technological change
Economic change
Management trends
Political change

Variations to improvement processes
Consider advantages and disadvantages to an improvement
Consider impact to other
departments in the process
Good versus bad.
Action learning
Action learning
Success of action learning comes from teams values, including:
Openness, trust and collaboration
Team spirit, respect for diversity; and
Tolerance of mistakes from which we learn.
Activity 3C
78
3.4 Plan and implement systems to ensure that mentoring and

coaching are provided to support individuals and teams to
effectively, economically and safely use resources
79
Gap analysis
The gap between level of performance demonstrated and the
desired level of performance
If a gap in skill level is identified:
coaches should be used to
address job focused and
performance oriented problems
such as reaching goals and outcomes.
mentors should be used to address performance related issues
such as lack of confidence and lack of motivation.
Activity 3D
81
3.5 Negotiate recommendations for variations to operational
plans and gain approval from designated persons/groups

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Negotiation
“a process in which two or more parties who have both common
and conflicting interest bring forth and discuss explicit terms of
possible agreement”
(Collins, 2004, p.207)
Types of negotiation
Hard negotiator: Where negotiation is seen as a test of wills and
who will finish off better. They will win at any cost and as such
will damage relationships.
Soft Negotiator: Where negotiators want to avoid conflict. The
negotiator does this by amicable agreement, with the least
amount of fuss and bother, so they make concessions. These
concessions make them feel exploited and that the other parties
are taking unfair advantage of them.
Principle Negotiation: A combination of both hard and soft. It is
about getting what you are entitled to and preserving your
relationship with other parties. It can be used in any situation
by many people, irrespective of whether they are experienced or
not.

The Principle negotiator has three elements
Separates people from the problem
It focuses on interest not positions
It develops options.
Consistency of recommendations through policies and
procedures
Benchmarking and continuous improvement followed by an
update of the procedures
Benchmarking means that the organisation will be looking for
the best way in which to
implement improvement
procedures.
Negotiation styles
Competition: A win/lose approach
which leads to confrontation
Compromise: A win/win approach
which is optimal
Co-operation: A win/win approach
which creates joint problem solving
Accommodation: A lose/win approach which leads to
capitulation
Avoidance: A lose/lose approach that leads to withdrawal.

Communication updates to designated personnel
Groups designated in workplace
policies and procedures
Managers or supervisors
whose roles and responsibilities
include decision making on
operations
Other stakeholders such as board members
Other work groups or teams whose work will be affected by
recommendations for variations.
Activity 3E
91
3.6 Develop and implement systems to ensure that procedures
and records associated with documenting performance are
managed in accordance with organisational requirements
92
Documentation

Documentation may include:
Operational plans
Strategic goals
SMART goals
Contingency plans
Job advertisement
Selection criteria and duty statement
Quality improvement and performance appraisals.
Activity 3F
94
Skills and Knowledge Activity
95
Major Activity
This activity should take anywhere between an 1-2 hours to
complete and can be found at the end of your workbook.
Your instructor will let you know whether they wish for you to
complete it in session time or your own time.

Summary and Feedback
Did we meet our objectives?
How did you find this session?
Any questions?
97
Congratulations!
You have now finished the unit…
‘Manage operational plan’
98
Page | 20
BSBMGT517
Manage operational plan
Learner Workbook

Table of Contents
Table of Contents1
Candidate Details2
Assessment – BSBMGT517: Manage operational plan2
Competency Record to be completed by Assessor3
Observation/Demonstration4
Activities5
Activity 1A5
Activity 1B6
Activity 1C7
Activity 1D8
Activity 1E9
Activity 1F10
Activity 2A11
Activity 2B12
Activity 2C13
Activity 3A14

Activity 3B15
Activity 3C16
Activity 3D17
Activity 3E18
Activity 3F19
Skills and Knowledge Activity20
Major Activity21
Candidate Details
Assessment – BSBMGT517: Manage operational plan
Please complete the following activities and hand in to your
trainer for marking. This forms part of your assessment for
BSBMGT517: Manage operational plan. Remember to always
keep a copy of your assessment before submitting.
Name:
________________________________________________
_____________
Email:
________________________________________________
_____________
Employer:
________________________________________________
_____________
Declaration
I declare that no part of this assessment has been copied from
another person’s work with the exception of where I have listed
or referenced documents or work and that no part of this
assessment has been written for me by another person.
Signed:
________________________________________________
____________
Date:
________________________________________________
____________
If activities have been completed as part of a small group or in
pairs, details of the learners involved should be provided below:

This activity workbook has been completed by the following
persons and we acknowledge that it was a fair team effort where
everyone contributed equally to the work completed. We
declare that no part of this assessment has been copied fr om
another person’s work with the exception of where we have
listed or referenced documents or work and that no part of this
assessment has been written for us by another person.
Learner 1:
________________________________________________
____________
Signed:
________________________________________________
____________
Learner 2:
________________________________________________
____________
Signed:
________________________________________________
____________
Learner 3:
________________________________________________
____________
Signed:
________________________________________________
____________
Competency Record to be completed by Assessor
Learner Name: __________________________
Date of Submission: __________________________
Date of Assessment: __________________________
The learner has been assessed as competent in the elements and
performance criteria and the evidence has been presented as:
Satisfactory (S)
Non-Satisfactory (NS)

Assessor Initials
Activities 1A – 3F
Skills and Knowledge Questions
Major Project
Learner is deemed: COMPETENT NOT YET COMPETENT
(Please Circle/Highlight)
1. Resubmission Date: ________________________
Comments from Trainer / Assessor:
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
____________________
Assessor Signature: ___________________________
Date: _______________________
Observation/Demonstration

Throughout this unit, you will be expected to show your
competency of the elements through observations or
demonstrations. Your instructor will have a list of
demonstrations you must complete or tasks to be observed. The
observations and demonstrations will be completed as well as
the activities found in this workbook. An explanation of
demonstrations and observations:
Demonstration is off-the-job
A demonstration will require:
Performing a skill or task that is asked of you
Undertaking a simulation exercise
Observation is on-the-job
The observation will usually require:
Performing a work based skill or task
Interaction with colleagues and/or customers
Your instructor will inform you of which one of the above they
would like you to do. The demonstration/observation will cover
one of the unit’s elements.
The observation/demonstration will take place either in the
workplace or the training environment, depending on the task to
be undertaken and whether it is an observation or
demonstration. Your instructor will ensure you are provided
with the correct equipment and/or materials to complete the
task. They will also inform you of how long you have to
complete the task.
You should be able to demonstrate you can:
1. Develop operational plan
2. Plan and manage resource acquisition
3. Monitor and review operational performance
You should also demonstrate the following skills:
· Reading
· Writing
· Oral Communication
· Numeracy
· Navigate the world of work

· Interact with others
· Get the work done
Activities
Activity 1A
Estimated Time
30 Minutes
Objective
To provide you with an opportunity to research, analyse and
document resource requirements and develop an operational
plan in consultation with relevant personnel, colleagues and
specialist resource managers.
Activity
Complete the following individually or in a group (as applicable
to the specific activity and the assessment environment):
What is the operational plan? Use an example of how to be a
successful team in your answer.
If possible, consult with the relevant personnel in your
organisation regarding an operational plan. Begin to develop the
main aspects of an operational plan using the examples of how
to be a successful team from your previous answer. Otherwise,
work in a group to develop a hypothetical operational plan for a

large corporation. You should consider:
· The project lifespan, sustainability and exit strategy
· Financial resource requirements
· Human resource requirements
· Risk assessment
Activity 1B
Estimated Time
20 Minutes
Objective
To provide you with the chance to develop and/or implement
consultation processes as an integral part of the operational
planning process.
Activity
List the ways in which you can communicate consultation
processes. Give an example of a time that you may use each
one.

What is feedback used for in the consultation process?
Develop a newsletter which informs staff about the operational
plan. Ensure there are opportunities for staff to respond.

Activity 1C
Estimated Time
15 Minutes
Objective
To provide you with an opportunity to ensure the operational
plan includes key performance indicators to measure
organisational performance.
Activity
What are the two key successful factors for a KPI?
Write a KPI related to your position. Write the operational goal
that you believe it is related to or provide a brief description of
the role that you are writing a KPI for.

Activity 1D
Estimated Time
30 Minutes
Objective
To provide you with an opportunity to develop and implement
contingency plans for the operational plan.
Activity
What is a contingency plan?
Briefly explain each step of developing a contingency plan.

The operational plan outlined in Activity 1A has failed.
Develop two contingency plans which could be used to alleviate
the situation.
Activity 1E
Estimated Time
30 Minutes
Objective
To provide you with an opportunity to ensure the development
and presentation of proposals for resource requirements is

supported by a variety of information sources and seek
specialist advice as required.
Activity
Describe the steps to writing a winning business proposal in
your own words.
When you write a proposal, why is it important to obtain
specialist advice?
When you present the business proposal, what information
should you include? Give examples of times when you may
present information in different ways.

Activity 1F
Estimated Time
30 Minutes
Objective
To provide you with an opportunity to obtain approval for the
plan from relevant parties and explain the plan to relevant work
teams.
Activity
You should now attempt to gain approval for your operational
plan from the relevant stakeholders in your organisation.

Write a smart goal for your job.
Activity 2A
Estimated Time
20 Minutes
Objective

strategies to ensure that employees are recruited and/or inducted
within the organisation’s human resources management policies,
practices and procedures.
Activity
Briefly explain the importance of the following terms in relation
to recruitment:
· Outsourcing versus the HR Department
· Costs
· The recruitment process
Your organisation is looking recruit an individual for a position
which has become available within production. Develop a job
specification which can be used to advertise the position and is
in line with the organisation’s human resources management
policies, practices and procedures.

Activity 2B
Estimated Time
40 Minutes
Objective
strategies to ensure that physical resources and services are
acquired in accordance with the organisation’s policies,
practices and procedures.
Activity
What is a supplier relationship?
What impact has just in time and total quality management had
on organisations in supplier relationships?

Who are the internal suppliers?
Why is it important to consider the relationship costs when you
build relationships with suppliers? What are relationship
benefits?
You have been tasked with recommending a supplier for your
organisation. What are some of the factors that will influence
the choice of supplier?
Activity 2C

Estimated Time
20 Minutes
Objective
To provide you with an opportunity to recognise and
incorporate requirements for intellectual property rights and
responsibilities in recruitment and acquisition of resources and
services
Activity
For your organisation, what resources and services have
intellectual property rights and responsibilities attached to
them? What measures do you need to take in order to prevent
non-compliance with these?

Activity 3A
Estimated Time
20 Minutes
Objective
To provide you with an opportunity to develop, monitor and
review performance systems and processes to assess progress in
achieving profit and productivity plans and targets.
Activity
You are required to monitor the performance of an employee
new to the organisation. Develop a system which will enable
you to monitor them over a four week period. Think about what
measurements you will need to use to establish the employee’s
progression.

Estimated Time
40 Minutes
Objective
To provide you with an opportunity to analyse and interpret
budget and actual financial information to monitor and review
profit and productivity performance.
Activity
Describe two factors that may impact upon how much budget is
available to the organisation.
Locate your organisations financial information. Analyse the
relationship between your profit and loss statement and the rate
of sales over the past twelve months, and make two
observations about the relationship.

Activity 3C
Estimated Time
20 Minutes
Objective
To provide you with an opportunity to identify areas of under -
performance, recommend solutions and take prompt action to
rectify the situation.
Activity
You have identified that there are variations in production in
your office/ production line in regards to quality. Draw a flow
chart that your organisation uses to identify and correct a
problem in quality. Do not forget to demonstrate what will
happen if the suggested variation to strategy is rejected.

Estimated Time
20 Minutes
Objective
To provide you with an opportunity to plan and implement
systems to ensure that mentoring and coaching are provided to
support individuals and teams to effectively, economically and
safely use resources.
Activity
A gap has been identified between accepted and desired
performance problems. What steps do you recommend to
support your team?
Activity 3E

Estimated Time
30 Minutes
Objective
To provide you with an opportunity to negotiate
recommendations for variations to operational plans and gain
approval from designated persons/groups.
Activity
Why is principle negotiation recommended over hard and soft
negotiation?
You want to implement a new piece of equipment into the
workplace which will increase productivity. In pairs, act out a
negotiation whereby a production manager must convince a
member of senior management that the equipment will be
profitable for the organisation.

Activity 3F
Estimated Time
15 Minutes
Objective
systems to ensure that procedures and records associated with
documenting performance are managed in accordance with
organisational requirements.
Activity
List the documentation that you will need to collect throughout
the operational plan.

Why is it important that the documentation from the previous
answer is filed away once you have finished with them?
Skills and Knowledge Activity
Estimated Time

45 Minutes
Objective
To provide you with an opportunity to demonstrate your
knowledge of the foundation skills, knowledge evidence and
performance evidence.
Activity
Complete the following individually and attach your completed
work to your workbook.
The answers to the following questions will enable you to
demonstrate your knowledge of:
· Reading
· Writing
· Oral Communication
· Numeracy
· Navigate the world of work
· Interact with others
· Get the work done
· Models and methods for operational plans
· The role of an operational plan in achieving the organisation’s
objectives
· Budgeting processes
· Alternative approaches to developing key performance
indicators to meet business objectives
· Legislative and regulatory context relevant to the operational
plan of the organisation
· Organisation’s policies, practices and procedures that directly
relate to the operational plan
Answer each question in as much detail as possible, considering
your organisational requirements for each one.
All answers will vary depending on the learner and the
organisation they work for but the learner should be able to
answer each question competently.

1. Identify an area/department/member(s) of staff in your
organisation that requires improvement for any reason, for
example to increase productivity, advances in technology have
made it obsolete or colleague under-performance is affecting
output.
Write an organisational plan that details your proposal for the
improvement that you are going to submit to the relevant
management for consideration.
You will need to include:
· The lifespan, sustainability and exit strategy of the plan
· Financial resource requirements
· Human resource and other capacity requirements
· Risk assessment and mitigation strategy
· How you intend to implement it
· How you intend to measure it (KPIs)
Major Activity
Estimated Time
2 Hours
Objective
To provide you with an opportunity to demonstrate your
knowledge of the entire unit.
Activity
This is a major activity – you should let the learners know
whether they will complete it during class or in their own time.
Completed answers should be attached to the workbook.
They must individually, answer the following questions in full
to show their competency of each element:
1. Complete the following and present it as a portfolio (attach it

to the workbook):
Project
You have been employed to develop a new department for the
training and development of the administrative and sales team
for your employer at a personnel recruitment company. Due to
demand they have opened two offices, one in Melbourne and
one in Adelaide. This expansion has led to a tight budget within
the organisation for the fiscal year. You need to keep the budget
at a minimal amount.
The strategic goal that you have been asked to concentrate on is
to increase sales by 8% by the end of 2011.
Five staff in the administration department handle enquiries in
regards to sales to the organisations that they provide with
personnel (both permanent and temporary.
There are ten recruitment personnel who have the primary
responsibility to manage their case load and follow up leads for
new opportunities.
As a well established organisation, Excel Personnel is a family
owned company that believes in gaining and retaining customers
through customer service excellence. Though the company has
managed to retain their long standing personnel, several of their
newer clients have changed recruitment companies in the last
six months. Concerned with the loss of clients and no trend in
the customers’ move, the board of directors have decided to
train their team on the latest customer service skills.
For this project:
· All plans, goals and recommendations must flow together to
support the strategic plan

· You may vary your plans, goals, strategies and
recommendations as you progress through each part of this
project. Put a line through the change and briefly outline why
you made an update on the operational plan. This is a normal
part of the development of a plan. As new information is
introduced, you may decide to change your operational plan
· This is a preliminary operational plan that you are drawing up,
so use bullet points (unless advised by your trainer).
You have been asked to develop an operational plan. In the
report you must:
· Clearly state the operational goals and how they are related to
strategic plan
· List resources and funds to meet these goals
· Identify the relevant personnel that you should consult with in
regards to the operational goals and the resultant action plans
required to meet the operational goals
· Include what communication methods you should use to
maintain a record of the consultation process. Why?
· Include what feedback processes you would recommend
should be put in place
· Include what KPIs you would recommend to measure
organisational performance in regards to the training (Write at
least two)
· Create at least two contingency plans if the employees in both
departments do not meet the KPIs.
· Develop a business proposal (discuss this with your trainer
and as a class using what you have learnt to develop and
prioritise your strategies).
· Draw a flow chart of the relevant parties who you should
obtain approval from for this business proposal
· You need to also briefly outline how you would recommend
that staff have the plan communicated to them. Use at least one
smart goal to measure the team members demonstrating an
understanding of the proposal
· The organisation has two external recruitment personnel who

are contracted as a supplier by referring potential customers to
Excel Personnel. They have both recently slowed down in
referring customers to Excel Personnel. Briefly outline in bullet
points how you would strengthen the supplier relationship with
them
· Based on your KPIs, smart goals, communication and feedback
processes and the organisation’s operational plans, recommend
what and how you will measure performance?
· Develop one tool based on your recommendations. (This tool
must reflect the goals)
· How will you monitor financial information? What do you
need to watch for when reviewing this information? Why?
· Based on information that you have already received when you
spoke to staff, there seems to be a mixture of performance and
lack of skills with staff. Some of these problems stem from the
department managers. How would you handle any under-
performance issues in regards to these skills and the level of
performance? In this answer, please refer to the factors that
affect output and quality to justify a lack of skills and
performance
· There is a lack of openness and trust between the departments
and this is having a negative impact on morale. Recommend
ways in which you can overcome this
· Draw a flow chart on the processes that you believe should be
put in place for the approval of any variations to this plan
(Include who you should consult with in this flow chart)
· Using the documents that you have recommended in this
project and developed, draw a flow chart on how the variation
should be implemented after it has been approved.

MSA Training and Professional Development Phone: 03
9905 3180
Room 159, 21 Chancellors Walk Website:
msatraining.edu.au
Monash University Clayton, Vic 3800
BSBMGT517 Manage operational Plan V3.2 28/07/2020

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BSBMGT517
Manage operational plan
Learner Guide
Table of Contents
Table of Contents2
Unit of Competency5
Performance Criteria6
Foundation Skills7
Assessment Requirements9
Housekeeping Items10
Objectives10
1. Develop operational plan11
1.1 – Research, analyse and document resource requirements
and develop an operational plan in consultation with relevant
personnel, colleagues and specialist resource managers12
What is an operational plan?12
Research, analyse and document resource requirements14
Activity 1A17
1.2 – Develop and/or implement consultation processes as an
integral part of the operational planning process18
Consultation processes18
Feedback19
Activity 1B20
1.3 – Ensure the operational plan includes key performance
indicators to measure organisational performance22

Key Performance Indicators (KPIs)22
How to write a Key Performance Indicator22
Activity 1C24
1.4 – Develop and implement contingency plans for the
operational plan25
Contingency plans25
Steps for creating a contingency plan25
Activity 1D29
1.5 – Ensure the development and presentation of proposals for
sources and seek specialist advice as required30
Raising funds30
Develop a business proposal30
Activity 1E34
34
1.6 – Obtain approval for the plan from relevant parties and
explain the plan to relevant work teams35
Obtaining approval35
Activity 1F38
2. Plan and manage resource acquisition39
2.1 – Develop and implement strategies to ensure that
employees are recruited and/or inducted within the
organisation’s human resources management policies, practices
and procedures40
Human resources policies and procedures40
Outsourcing versus the HR department42
Activity 2A43
2.2 – Develop and implement strategies to ensure that physical
organisation’s policies, practices and procedures45
Supplier relationship45
Internal suppliers46
The value of a supplier relationship48
Purchase order example50
Activity 2B51
2.3 – Recognise and incorporate requirements for intellectual

acquisition of resources and services52
Intellectual property rights and responsibilities52
Activity 2C58
3. Monitor and review operational performance59
3.1 – Develop, monitor and review performance systems and
processes to assess progress in achieving profit and pr oductivity
plans and targets60
Performance management systems60
Activity 3A65
3.2 – Analyse and interpret budget and actual financial
performance66
Budget and financial information66
Activity 3B67
3.3 – Identify areas of under-performance, recommend solutions
and take prompt action to rectify the situation68
Rectifying under-performance68
Factors affecting output and quality69
Variations to improvement processes70
Activity 3C73
3.4 – Plan and implement systems to ensure that mentoring and
effectively, economically and safely use resources74
Mentoring and coaching74
Activity 3D 75
3.5 – Negotiate recommendations for variations to operational
plans and gain approval from designated persons/groups76
Negotiation76
The process of negotiation77
Consistency of recommendations78
Activity 3E79
3.6 – Develop and implement systems to ensure that procedures
managed in accordance with organisational requirements80
Documentation80

Activity 3F81
Skills and Knowledge Activity82
Major Activity – An opportunity to revise the unit83
References85
Unit of Competency
Application
This unit describes the skills and knowledge required to develop
and monitor implementation of the operational plan to provide
efficient and effective workplace practices within the
organisation’s productivity and profitability plans.
Management at a strategic level requires systems and
procedures to be developed and implemented to facilitate the
organisation’s operational plan.
This unit applies to individuals who manage the work of others
and operate within the parameters of a broader strategic and/or
business plan.
No licensing, legislative or certification requirements apply to
this unit at the time of publication.
Unit Sector
Management and Leadership – Management
Performance Criteria
Element
Elements describe the essential outcomes.

Performance criteria describe the performance needed to
demonstrate achievement of the element.
1.1 Research, analyse and document resource requirements and
1.2 Develop and/or implement consultation processes as an
1.3 Ensure the operational plan includes key performance
1.4 Develop and implement contingency plans for the
operational plan
1.6 Obtain approval for the plan from relevant parties and
explain the plan to relevant work teams
2.1 Develop and implement strategies to ensure that employees
2.2 Develop and implement strategies to ensure that physical
2.3 Recognise and incorporate requirements for intellectual
3.1 Develop, monitor and review performance systems and
processes to assess progress in achieving profit and productivity
plans and targets
3.2 Analyse and interpret budget and actual financial

performance
3.3 Identify areas of under-performance, recommend solutions
and take prompt action to rectify the situation
3.4 Plan and implement systems to ensure that mentoring and
effectively, economically and safely use resources
3.5 Negotiate recommendations for variations to operational
plans and gain approval from designated persons/groups
3.6 Develop and implement systems to ensure that procedures
managed in accordance with organisational requirements
Element
Element describes the essential outcomes
Performance criteria describes the performance needed to
demonstrate achievement of the element
Foundation Skills
This section describes language, literacy, numeracy and
employment skills incorporated in the performance criteria that
are required for competent performance.
Skill
Description
Reading
1.1, 1.5, 2.1, 2.2, 3.1, 3.2, 3.3, 3.4, 3.6
· Identifies and extracts relevant information from a range of
complex texts
· Gathers, interprets and analyses workplace documentation to
determine requirements for the operational plan
Writing
1.1-1.5, 2.1, 2.2, 3.1-3.6

· Develops and documents a range of detailed texts relating to
the management of an operational plan according to
organisational requirements
· Ensures the vocabulary, grammatical structures and
conventions are appropriate for the context and target audience
Oral Communication
1.1, 1.2, 1.5, 1.6, 3.4, 3.5
· Presents information to a range of audiences using appropriate
register, vocabulary and paralinguistic features
· Listens and comprehends information from a variety of spoken
exchanges with clients, co-workers and other stakeholders
· Confirms understanding through questioning and active
listening
Numeracy
1.1, 1.3, 1.4, 3.1-3.4
· Selects and uses mathematical problem-solving strategies to
organise resource requirements, performance benchmarks and
financial viability of the operational plan
Navigate the world of work
2.1, 2.2, 3.4, 3.6
· Monitors adherence to organisational policies, procedures and
considers own role in terms of its contribution to broader goals
of the work environment
· Appreciates the implications of legal responsibilities with
specific reference to health and safety
Interact with others
1.1, 1.2, 1.5, 1.6, 3.5
· Identifies and uses appropriate conventions and protocols
when communicating with colleagues and external stakeholders
· Collaborates with others to achieve joint outcomes, playing an
active role in facilitating effective group interaction,
influencing direction and taking a leadership role on occasion

Get the work done
1.1-1.5, 2.1, 2.2, 3.1, 3.3, 3.4, 3.6
· Takes responsibility for developing and implementing systems
and processes to achieve organisational objectives, seeking
advice, feedback and support as required to assist in the
development and planning phase
· Sequences and schedules complex activities, monitors
implementation, and manages relevant communication
· Uses systematic analytical processes to aid decision making,
identify potential problems and generate contingency plans or
solutions
Assessment Requirements
Performance Evidence
Evidence of the ability to:
· Develop and implement an operational plan using a variety of
information sources and consultation (including using specialist
advice if required) which includes:
· resource requirements
· key performance indicators
· monitoring processes
· contingency plans
· Communicate effectively with relevant stakeholders to explain
the plan and supporting information, seek approvals, negotiate
variations and engage work teams
· Develop and implement strategies to achieve the operational
plan within the organisation’s policies, practices and procedures
including:
· recruiting, inducting and developing personnel
· acquiring physical resources and services

· protecting intellectual property
· making variations to the plan
· monitoring and documenting performance.
Note: If a specific volume or frequency is not stated, then
evidence must be provided at least once.
Knowledge Evidence
To complete the unit requirements safely and effectively, the
individual must:
· Describe models and methods for operational plans
· Explain the role of an operational plan in achieving the
organisation’s objectives
· Explain budgeting processes
· List alternative approaches to developing key performance
indicators to meet business objectives
· Outline the legislative and regulatory context relevant to the
operational plan of the organisation
· Outline the organisation’s policies, practices and procedures
that directly relate to the operational plan.
Assessment Conditions
Assessment must be conducted in a safe environment where
evidence gathered demonstrates consistent performance of
typical activities experienced in the management and leadership
field of work and include access to:
· Relevant legislation and regulations
· Workplace documentation and resources
· Case studies and, where possible, real situations
· Interaction with others.

Links
Companion volumes are available from the IBSA website:
http://www.ibsa.org.au/companion_volume s -
http://www.ibsa.org.au/companion_volumesHousekeeping Items
Your trainer will inform you of the following:
Where the toilets and fire exits are located, what the emergency
procedures are and where the breakout and refreshment areas
are.
Any rules, for example asking that all mobile phones are set to
silent and of any security issues they need to be aware of.
What times the breaks will be held and what the smoking policy
is.
That this is an interactive course and you should ask questions.
That to get the most out of this workshop, we must all work
together, listen to each other, explore new ideas, and make
mistakes. After all, that’s how we learn.
Ground rules for participation:
Smile
Support and encourage other participants
When someone is contributing everyone else is quiet
Be patient with others who may not be grasping the ideas
Be on time
Focus discussion on the topic
Speak to the trainer if you have any concernsObjectives
Discover how to develop an operational plan
Learn how to plan and manage resource acquisition
Know how to monitor and review operational performance
Gain skills and knowledge required for this unit
1.1. Research, analyse and document resource requirements and
1.2. Develop and/or implement consultation processes as an
1.3. Ensure the operational plan includes key performance

1.4. Develop and implement contingency plans for the
operational plan
1.5. Ensure the development and presentation of proposals for
1.6. Obtain approval for the plan from relevant parties and
1.1 – Research, analyse and document resource requirements
and develop an operational plan in consultation with relevant
What is an operational plan?
An operational plan is derived from the strategic plan of the
organisation and is a detailed plan to accomplish the objectives
of the organisation.
An operational plan is essential to implement successfully.
Failure to do so could lead to the failure of the action and
monitoring plans.
To ensure that the operational plan is successful, your team
should:
Raise funds – this requires that you are very clear on what
resources you need and have the ability to convince your
investors for a successful completion of your project
Allocate resources to fill gaps and needs
Clearly identify your resource requirements and your ability to
fill the gap
Have contingency plans to minimise risk
What is the length of the project and how can you sustain it?
An operational plan does not usually exist alone, rather the key
components are integrated together to form the strategic plan.
The key components of an operational plan include:
Estimation of project lifespan, sustainability and exit strategy
How long will this project last, when and how will you
complete the project? How can the project be sustained?
Financial resource requirements

How much money is needed to fund the project, your current
sources of income and potential sources of income, what funds
you need and any gaps in funding that you identified
Human resource and other capacity requirements
Determine the capacity and skills of the human resources
currently available to complete a project. Consider where the
sources of these resources will come from. What other
requirements are needed to implement the project
Risk assessment and mitigation strategy
What risks may be addressed and what are they?
Strategic planning is the process in which an organisation
defines its strategy, whereas an operational plan defines the
short term methods of achieving the strategic plans.
Strategic planning is proactive and often spans years.
Conversely the operational plan is also proactive but can change
to meet the organisation’s current requirements. Operational
plans last 1-three years and are considered short term.
When you write a strategic plan, you need to ask:
What do we do?
Who are we doing it for?
How will we be successful?
On the other hand, when you write an operational plan, you
need to be able to answer:
Where are we now?
What do we want to be?
How do we get there?
What method/s can we use to measure our progress?
Operational plans will contain the following details:
Organisational structure
Current and future desired goals
Who are the suppliers?
How many staff are required?
Facilities
Production and manufacturing
Inventory

Distribution
Maintenance and service including customer service
Labour
Quality Assurance, such as how is performance measured?
For an operational plan to be effective, it must:
Have clear goals, procedures, objectives, schedules and budgets
Include performance targets
Set timeframes
Have contingency plans
Issue responsibilities
Include strong cohesive teams.
“A leader is the organisation’s top strategist, systematically
envisioning the future and specifically mapping out how to get
there.” As a part of the creative thinking process, and to take
advantage of the skills, knowledge and experience of your team,
it is important to let them participate in the decision making
process. If they can see their contributions acknowledged, then
they will take ownership of the project.
Relevant personnel, colleagues and specialist resource
managersmay include:
Employees at the same level or more senior managers
Managers
Occupational health and safety committee/s and other people
with specialist responsibilities
Supervisors
Union or employee representatives.
Ask staff and relevant parties to participate in weekly meetings
presenting their ideas, feedback and any prospects.
Acknowledge their contributions and encouragement. Planning
is an important part of the process. Every staff member must
come to the meeting prepared and with ideas. Make sure your
team understands the importance of meeting the goals.
Research, analyse and document resource requirements
It is essential that all goals and objectives continue on from the

strategic plan and build the requirements to ensure that your
plans are effective. In each step of the process, you must ensure
that you have the required resources to meet the required goals.
Resource requirements may include:
Goods and services to be purchased and ordered
Human, physical and financial resources – both current and
projected
Stock requirements and requisitions.
Based on your budget, teams will be allocated sufficiently to
meet their goals. At times, if control is not maintained on the
allocation of resources, then team members’ ability to meet
their end needs will be affected. To ensure that resources are
correctly allocated, a detailed plan needs to be completed so
that individuals can complete their prescribed tasks in a timely
manner.
When determining actions, you must be able the following
questions:
To answer these questions you should question the team
members and stakeholders who would be in a place where they
would know the answers to each question. In dealing with
operational concerns and the allocation of human resources, you
should research any staff problems.
For example:
You may be required to demonstrate these answers on a
spreadsheet.
PROJECTED INCOME SUMMARY
YEAR 1

YEAR 2
YEAR 3
Sales Forecast
Minus Cost of Goods Sold
Equals Gross Profit Margin
Subtract Total Operating Expenses
Subtract Depreciation
Equals Net Income Before Tax
Activity 1A

1.2 – Develop and/or implement consultation processes as an
Consultation processes
Consultation is the process where you gather information from
both internal and external personnel to ensure that you can
make an informed decision. Consultation is a key principle in
ensuring that your organisation has a sound planning and
decision-making process.
For consultation to be effective, you must start consulting early
in the process. Consulting requires that all parties are honest,
open and committed to the project. Consulting when performed
this way will assist in enhancing relationships between all
parties. If you use manipulation in the consultation process, the
process will fail.
The consultation method you use will vary depending on the
goal and outcome and will range from mere discussion through
to participatory decision-making. The method that you use
should be based on the input from your key informants and
stakeholders, who understand how best to involve the personnel
interested in a potential decision making process.
In large organisations, the consultation process is established by
management and the supervisors are responsible for
implementing the processes and employees are responsible for
actively participating in the consultative process. These
processes may be more formalised than having informal
sessions between parties. This may however be sufficient in
smaller organisations.
Make sure that you familiarise yourself with the processes and
procedures in place in your organisation. You may even be
required to consult with stakeholders in different ways. For
example, a manager that moves around as part of their position
may not be available very often. To ensure that he obtains your
message, you may need to send him/her an email. Conversely,
another manager in the same position may prefer that you call

him/her so that he can consult with you on a personal level.
An organisation may have a survey tool that is used during the
consultation process to maintain a record of feedback that can
be utilised to improve processes. The tool may be in the form of
a questionnaire or a survey that can identify problems with
processes and/or procedures.
Consultation processes may refer to:
Email/intranet communications
Email and intranet may be utilised as a paper trail as a form of
quality assurance. Some organisations may use emails to
identify ways in which to improve processes. It can also be used
to ensure that the same message reaches all staff, and staff have
an opportunity to respond, thereby contributing to the plans
Newsletters
Newsletters provide staff with information about plans and may
provide staff with opportunities to respond
Other processes and devices
Surveys, questionnaires and informal sessions may be used to
encourage staff to respond to the consultation process by
providing specific feedback about the operational plans
Meetings
Meetings may be either formal and/or informal. Informal
meetings can be at any time at any place. Formal meetings can
be in a more controlled environment where feedback is sought
Interviews
An interview is usually between two or more people. Structured
interviews provide management with answers to specific
questions that can provide feedback in relation to specific
aspects on the operational plan
Brainstorming sessions
Brainstorming sessions are used to generate new ideas and
solutions. It should not be used for analysis or decision making.
The ideas and solutions given should be analysed and judged to
ascertain their relevance. To obtain the most out of the feedback

session, you must ensure that you take the time to acknowledge
all participants for their efforts. If you do not acknowledge
them, they may not participate so openly again.
Consultation is an ongoing process that should provide you with
feedback in the shape of new ideas and different ways of
thought.
Feedback
Feedback is the process in which part of the output of a system
is returned to its input in order to regulate more output. Once
you have gathered both the formal and/or informal information,
you should review it and select any ideas of value to the
planning process.
Formal feedback is usually specific so can be more rigorous,
thus may have timelines that you need to be aware of. Keep to
the deadlines because they may have been developed to ensure
some part of the process is enhanced. This means that you
should set goals that you should adhere to.
Once you have made a decision in regards to the feedback, it is
important to make sure that it is communicated to the
appropriate stakeholders. Make sure that all and anybody who
participated in the process also receives a response. It is only
when feedback flows from the source to the stakeholders that
feedback becomes effective. When your stakeholders see the
positive effects of the feedback they have offered, they will
probably be more prone to make contributions to quality and
service in the next meeting. However, if there is no response to
their feedback they will probably be reluctant to contribute in
meetings.
Activity 1B
1.3 – Ensure the operational plan includes key performance

Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs) will assist you in the
planning process. They will provide you with quantifiable
measurements that will reflect the success factors of the
organisation. To be successful, KPIs must reflect the
organisation’s goals, they must be to the organisation’s success,
and they must be quantifiable.
KPIs to reflect organisational goals
If an organisation’s goal is to “obtain a five percent increase in
our market” they will have key performance indicators to not
only increase profit, but also to increase sales and/or service.
These KPIs reflect the organisation’s performance and gives
staff a target to work towards.
KPIs to be quantifiable
If a KPI is not quantifiable, it is useless. KPIs such as “increase
sales” or “increase customer retention” need to specify an
amount. Instead of increase sales, you could have increase s ales
by five percent or increase customer retention by seven percent.
Even though you set targets for the key performance indicator,
it does not make them the key to the success of the organisation.
Limit the KPIs to the specific goals that will lead to the
organisation’s goals. To ensure that your focus remains on the
organisation, do not have too many KPIs.
How to write a Key Performance Indicator
The operational plan will usually contain a list of key priority
areas for the coming area. Actions and strategies will usually
address these priority areas. This is where the KPIs start.
Once a manager has formulated the department’s objectives in
line with its vision, mission, strategies and objectives.
KPIs have four components which are the:
· Objective that tells your aim. Example: To increase sales
· Measurement, e.g. sales growth
· Target is what we want to achieve and when. Example:

increase sales growth by 20% in 2011
· Initiatives is a set of all of the above actions, Example: (a)To
increase sale (b) growth (c) by 20% in 2011
These KPIs should be passed to their appropriate subordinates
The KPI is then monitored usually directly by the manager to
ensure that the KPIs have been met.
Achievement of the KPI can be rated into scales:
Example:
3 = Exceeds requirements
2 = Meets requirements
1 = Not meet requirements
0 = Unsatisfactory.
Achievement of the KPI is used by management to give rewards
such as bonuses, yearly incremental and promotion of his
subordinates.
Activity 1C
1.4 – Develop and implement contingency plans for the
operational plan
Contingency plans
Irrespective of how much you plan, something will always occur
so your plans may not go as planned. Assumptions are never
precise so when you make an assumption about the market, you
may find that unforeseeable events can have an impact on their
accuracy. When problems like this occur, you need to have
plans that can be used when an original plan does not work.

These plans are called contingency plans. A contingency plan is
simply a secondary or alternative plan that can be implemented
when the original plan fails. These plans allow businesses and
other entities to adjust as the circumstances change and you
remain in operation. Most organisations have several
contingency plans geared to fast responses in areas of operation.
Steps for creating a contingency plan
Contingency plans should be written by a subject matter expert
who is the closest to the system and who has the best knowledge
of the subject and thus are suited to writing the contingency
plan. The aims of the leader are to train, to set deadlines, to
mentor and promote enthusiasm.
To create a contingency plan, you need to:
Identify your needs
Complete an impact assessment
Select suitable measures and control
Build the plan
Test, train and maintain.
Identify your needs
Examine your organisation so you can make sure the plan you
develop is one that is actually needed. Use your organisation’s
contingency plan policy to assist you in identifying whether or
not a contingency plan is required.
If the organisation does not have one, develop one by:
Writing the objectives of the contingency plan
Stating who is responsible for the development, maintenance
and implementation of the plan
Asking what is the scope of the plan including which
departments participate in the execution of the plan?
Asking how you will review the plan
Asking what resources, testing and training is involved in the
plan?
Deciding how the plan will be maintained, backed up and
stored.

Before a plan can be created, it is important to know what is at
stake. This means that you should have a clear understanding of
the value of the resources used; the level of risk in targeting
resources incorrectly and how you can minimise the risk. An
impact assessment can assist you in establishing the level of
risk and a hierarchy that the contingency plan will address.
Impact assessment
To create an impact assessment, you should:
Select measures and controls
Once you identify the impact that disruptions can have, you
should consider preventative measures. Prevention is better than
a cure. This will end up as a cost assessment.
There are four avenues that you can take; they are:
1. Transfer the risk to another party
The other party may be in a better position to resolve the
problem
2. Avoid the risk
Identify the risk and identify what steps you could take that will
have the least impact to the business
3. Reduce the negative impact of the risk
Look at ways in which you can reduce the negative impact and
identify ways in which you can minimise cost
4. Accept some or all of the consequences of the risk
Sometimes avoiding the risk and reducing the negative impact
of the risk are not viable. Sometimes you may need to take on

some of the consequences to keep operating.
Build the plan
Once you have identified the levels of risk, it is essential that
you determine how to best service the plan by identifying
contingencies. Costs play a part of the plan so it is important to
make sure that any contingencies stay within the budget set.
Test, train and maintain
Make sure that all staff are ready for any contingency. This
means that you may need to test the contingency and to train
your staff to ensure that the plan runs smoothly.
Contingency plansmay include:
Contracting out or outsourcing human resources and other
functions or tasks
Some organisations contract out to cut costs, to obtain a person
with specific skills, knowledge and experience, lack of space or
lack of a resource. Some organisations even outsource for when
an internal function stops working
Diversification of outcomes
Some outcomes rely on several departments as part of the final
process. The spreading of outcomes can increase productivity as
more staff becomes a part of the final processes
Finding cheaper or lower quality raw materials and consumables
A globalised market is a more competitive market. This means
that when you shop around you will find materials and
consumables within the organisation’s budget
Increasing sales or production
Improving sales or production may require an increase in the
customer service skills of your staff. This can be completed by
training or mentoring programs. When would the staff need to
have the required skills and what skills would they require?
Recycling and re-using
Consumer awareness has increased and customers have become
more informed due to the internet. As a part of this awareness
customers believe that an organisation has a corporate social
responsibility to the environment. As a part of that
responsibility some customers prefer to see the recycling and

re-using of the resources. In turn, they prefer to buy from
consciously aware companies
Rental, hire purchase or alternative means of procurement of
required materials, equipment and stock
Rather than buying the equipment or outsourcing, organisations
rent or negotiate to save on costs
Restructuring of organisation to reduce labour costs
There will be times when an organisation will downsize. The
reasons for this will vary. For example, your product and/or
service may no longer be in demand so the organisation may not
sell as many units
Risk identification, assessment and management processes
A rise in injuries due to a rise in hazards and risks that can
cause accidents can end up putting a huge dent in any
organisation’s budget. If the risk assessments are not working,
clear contingencies might be needed to motivate staff to come
up with ideas to minimise the risk
Seeking further funding
There may be times when the funds allocated to your
department are not sufficient to meet the future desired goals.
To meet these goals, it is essential that you seek further funding
Strategies for reducing costs, wastage, stock or consumables
If you exceed your budget, you should take steps to reduce
costs. This could be done by finding a supplier who can produce
your materials with lower prices
Succession planning
Succession planning is the process whereby an organisation
makes sure that the employees are recruited and developed to
fill key roles within the organisation.
When you write contingency plans for the above areas, make
sure that your plan is measureable and reflects the
organisation’s goals.
Activity 1D

1.5 – Ensure the development and presentation of proposals for
Raising funds
Targets in the strategic plan can only be reached when
organisational activities are completed to implement the
operational plan. Each task that is performed requires the use of
resources. These resources include human resources, capital
resources and financial resources. The tasks must be performed
within the budget allocated for the task.
If you identify the need for more funds, you should be prepared
to raise the funds. To raise more funds, you have to be able to
demonstrate to senior management and the stakeholders
investing in the initiative that you require the money more than
another department and that they will receive a return in
investment.
Develop a business proposal
One of the defining features of a business proposal is your
ability to sell it to your stakeholders. They control the amount
of budget that you need. To obtain a larger slice of the budget,
you must be able to demonstrate that your actions not only align
with the strategic goals of the organisation, but also will ensure
that the actions undertaken will give the stakeholders a larger
return in investment – either monetary or through higher
customer retention.
In short, you must be able to justify why you should be
allocated a larger slice of the budget. To develop a business
proposal, you must never lose sight of what your client needs. If
you concentrate solely on what you believe the client needs,
rather than what they actually need, say goodbye to your budget
and maybe your ability to meet your organisational goals.
To write a winning business proposal, you need to make sure

that you:
Identify strategic goals
Focus on your client’s needs and then determine the best
solution for it. At this stage you should provide your
stakeholders with detailed costing and a statement on resources
to show your requirements. Make sure that these details refer
back to the strategic plan. Stakeholders must see a connection
between your resource requirements and the organisation’s
strategic goals.
Alternative strategies should also be addressed in the proposal.
Your stakeholder must see that you have considered different
contingencies in the case that your original plans need to be
varied due to either internal or external pressures.
Once you have the examined the strategic goals and the
alternatives, you must look at them from four different angles.
With each angle, you must identify how you can influence the
stakeholders to allocate the funds to you.
This can be done by:
Using a marketing strategy to increase the organisation’s market
share, reduce overheads and marketing of the product line. In
turn, these actions will increase the productivity of the
organisation
Using a human resource strategy to improve staff skills
Using a management strategy whereby staff morale is increased
through enhancing the morale of the employee. A happy
employee will increase turnover and change consumer attitudes
on a brand
Using a technological strategy to increase productivity.
Prioritise strategic goals
Prioritise the strategic goals and place them in a realistic
timeline. They should have all of the activities required to
complete the goal listed, including staffing level required and
costs, both internal and external. Gain confidence from the
assessment panel, which usually comprises of senior

management, by demonstrating that you have researched the
proposal by putting together contingency and risk management
plans to show that you have considered what options you would
need to take in the case some aspect of the plan went wrong.
Conclusion
One of the biggest mistakes that a proposal writer can make is
to concentrate solely on the end product. Make a clear
connection on why your proposal is better than any other
department/ team/ section. If you want to have a larger slice of
the budget that has been allocated, you must make the
connection between your strategic goals, the benefits to the
organisation and what the organisation will get out of it.
To further enhance your standing, make the effort to seek
specialist advice. Do not constrain your proposal to historical
evidence. What worked last year, does not necessarily mean it
will work this year.
For example:
Last year the economy was slow, spending was down so in
effect sales were down. To increase sales, your department may
have trained staff to increase the level of customer service. This
year, spend has increased as the economy starts to move.
Retraining staff in the same way is a waste of resources. Instead
provide them with mentors or coaches to increase performance.
Reward them and acknowledge their performance. It would save
money and demonstrate that you are being responsive to the
market.
Specialist advice can come from many sources such as:
Managers
Financial consultants
Marketing experts
Accountants
Suppliers
Internal and external customers
The sales team.
Internal and external customers have opinions. If your goals

relate to the product then consider their feedback. They are the
ones that will buy the product and/or service and benefit from
it.
Presenting the proposal
As a part of obtaining approval for a proposal you may have to
present it to the relevant parties which usually include
stakeholders and senior management, committees or individuals.
These people are very busy so when you present the information
to them, choose your method carefully. You may only have a
few minutes to explain and demonstrate what your proposal is
about. The information you provide can garner their interest or
break it.
Make sure that during the presentation you also provide them
with a copy of the proposal. This provides them with the
opportunity to read your proposal and will assist in the final
decision in regards to the allocation of funds.
To present the information you could use:
A power point presentation with all of the key points of the
proposal
The use of graphs to demonstrate costs and savings from
previous years
Contingency plans and risk management plans - when they
would be used and their impact on the proposal
Strategies you considered and why you did not present them –
these can also be operational plans to support the strategic plans
Conclusions with the use of facts from your research.
In each step of your presentation, reinforce the organisations
strategic goals, and the benefit of the proposal to the
organisation.
Activity 1E
1.6 – Obtain approval for the plan from relevant parties and

Obtaining approval
We have already established that the relevant parties to
acceptance/ rejection or re-allocation of the budget funds from
the organisation usually vests with the stakeholders and senior
management, committees or individuals. The size and scope of
the proposal will vary according to where you are trying to
obtain the budget from and the importance of your proposal.
Once you have presented the proposal, you must await approval.
Approval for the presentation where you are applying for funds
from your head of department may require a mere nod from
senior management for example, or in larger organisations, you
may need to wait for the parties to review the plan before
recommending it to the governing body who may then approve
or reject it.
Once you have gained approval for the proposal, you should
stay as close to the timeline as possible within the approved
budget. To get your team members and work colleagues to work
as a unit, you need to work in consultation with them. Previous
studies have demonstrated that individuals will take ownership
of their activities if they are contributing to them. This is giving
the team empowerment by increasing their confidence in their
own capabilities.
In the book ‘Empowerment Takes More than a Minute’,
Blanchard, Carlos and Randolph state that there are three keys
to an organisations effectively opening the knowledge,
experience and motivation of a team. They are to:
Share information
By sharing information, you are opening the doors towards
feedback. In sharing information, you are giving them a clear
picture of the organisation and its current situation. By building
trust, you are building a foundation for your teams.
Create autonomy through boundaries
Individuals know their jobs. So who better to consult with than
the people that do the job. This does not mean that you should

not consult through different avenues, such as talking to an
engineer about changing systems to improve product quality at
the suggestion of a team member. To keep the doors to sharing
information open, make sure that you provide the team member
with feedback. If the suggestion is not viable, let them know. It
demonstrates that you are listening to them and taking their
suggestions into consideration. This in turn builds their
confidence.
Create self-managed teams
A team is a group of people linked in a common purpose. In
self-managed teams, as a Manager you should use your proposal
to define the goals, methods and functioning of a team. Once
you have provided the team with the information, you delegate
the responsibility and decision-making authority to the team
itself, with the hope that the group will make better decisions
than the individual. Decisions must be made by consensus to be
successful.Consensus not only seeks the agreement of most of
the participants in the team, it resolves any objections that may
arise.
In your position of manager, it is important that you are aware
of all aspects of the team’s decisions. You can do this in
consultation with the team. For example, they may have an
unresolved issue. They come to you seeking advice and
suggestions. The advice is not within your realm of experience,
so you call in an expert. This builds confidence and can allow
your team to make a knowledgeable decision.
As you are providing your team with the operational goals they
need to reach, it is important that you understand how to
develop a goal. SMART goals can assist you in measuring and
setting realistic objectives.

Specific
Means that the goals have a greater chance if you know who is
involved, what you need to accomplish, location, time frame,
requirements and constraints, and purpose
Measureable
Looks at what target has to be achieved like how much or how
many
Achievable
Means making sure that the target is realistic and that it can be
achieved
Realistic
Means that it must be realistic and relevant to the organisation
Timely
Means that a time limit should be set to meet an objective or
goal so that team members has something to motivate them and
keep on target
When you develop goals and objectives they must correlate with
the organisation’s goals. You should also take the time to revise
the goals. As changes arise with the organisation, changes to
goals may also need to be reviewed.
Activity 1F

2.1. Develop and implement strategies to ensure that employees
2.2. Develop and implement strategies to ensure that physical
2.3. Recognise and incorporate requirements for intellectual
2.1 – Develop and implement strategies to ensure that
employees are recruited and/or inducted within the
organisation’s human resources management policies, practices
and procedures
Human resources policies and procedures
As we move further into the twenty first century, it is prudent to
note that our human resources are being acknowledged as an
important part of the success of the organisation. Without
skilled workers, products would not be made, without qualified
or experienced management money would not be made and
when the end product is completed, our customer service
representatives are responsible to ensure that our product is sold
to our customers. Without those customers, the organisation
would slowly flounder until it was either sold or closed down.
As the importance of any labour force has increased so too has
the importance of our human resource department as the demand
for more qualified and experienced staff are required. Without
the human resources with the skills, knowledge and experience

to meet the goals, you will find that your organisation does not
run as efficiently.
Human resource professionals perform the following roles. As a
manager it is important that you take the time to learn these
roles so that you can provide them with the information to do
their job correctly. If you also have a basic understanding of
their role you will be able to perform their tasks.
Large organisations will almost always have a human resource
department. Those organisations that do not have a human
resource department will usually outsource to personnel
companies who perform the job of the role. If you are a manager
of a small organisation, you will probably perform these
functions yourself.
Human resources policies and procedures usually include:
Obtaining approval for the advertisement for a job requirement
Budgeting and costs
How much is it going to cost to employ the applicant? What is
the budget allocated? Like any other budget, the human resource
department is allocated a specific amount. In larger
organisations, these costs may be spread across the department/s
that the applicant may be employed in. This budget will impact
on the package that you offer the applicant.
Advertisement, interviewing and selection of the applicant
This usually requires the advertisement outlining the role and
the main functions that the applicant must perform. The
applicant should be able to demonstrate all of these skills. The
applicant with the closest skills, knowledge and experience will
be short listed for the position. The final applicant will usually
have to demonstrate that their goals align with the
organisation’s.
For example:
If the role calls for an engineer to assist in the designing of a
new widget for six months, then a person looking for a full time
long term position would usually be placed behind an engineer

who was only interested in a short term position. The full time,
long term applicant would probably only be interested until
their ideal job came along. Then you will need to re-advertise
and reselect another applicant.
Attraction and retention – If you decide on the full time, long
term applicant, how you will be able to attract them to stay for
the length of the contract? There may be the promise of further
employment opportunities, the chance to learn a new skill
Reference checking – Though this does not always happen,
organisation representatives will contact references with the
permission of the applicant. Remember privacy laws do apply
and you must ensure that you do not breach those laws
Induction – Most organisations do have inductions providing the
new employee with information on the business’s facilities,
employment conditions, contractual and legislative
requirements. It is important to make sure that these processes
are followed and follow up occurs to minimise the
organisation’s exposure to risk.
Once you have been provided with the go ahead to recruit a
member of staff, it is important to make sure that you:
Plan and review the role
Develop a selection criteria
Decide whether to outsource (use a recruitment agency) or use
internal HR resources
Put together a panel
Plan the time for the recruitment to take place.
Unless the employee is undertaking a new position, most
organisations will have records of the selection criteria required
for the new staff member. This information may be provided
through previous advertising for the position or through a job
description. If the job is being re advertised, take the time to
review the criteria to ensure that the selection criteria is up to
date. With time, job criteria can change due to technological
innovation. This information may not be kept up to date and

once you hire a staff member, you may find that they do not
actually have the skills required to perform the job.
For jobs that are new, you will need to give yourself time to
consult with other stakeholders and members of your team to
identify what the requirements of the job are.
Outsourcing versus the HR department
Outsourcing is the process of using an external agency to
advertise and pre select staff for a specific role. Organisation’s
use recruitment organisations to save costs as the organisation
may not be large enough to support a HR department or the HR
department is too overworked. By allowing the recruitment
company to weed out the applicants who do not meet their
needs, the HR department can concentrate on the applicants who
do meet the required criteria.
The human resource department in a large organisation may
prefer to see all applicants, especially when they are not sure
about any aspect of their needs. It is only through the process of
interviewing that a better picture of the type of employee they
require will come out.
The costs
Many organisations decisions on whether to outsource or use
the HR department or personnel will usually be final, based on
the costs of the recruitment process.
Costs may include:
Advertising costs
Time of the selection panel off the job
The package offered to the applicant (including superannuation,
tax, salary, worker’s compensation provision, etc).
The recruitment process
Applicants for your advertisement may be sent in or emailed.
Applicants will usually send in a detailed resume. Once you
have received the resume, you can short list the applications.
Applicants are short listed when you:
Find that resumes match the selection criteria and the duty
statement in skills, knowledge, experience and necessary

qualifications
Once the list has been short-listed, interviews are arranged.
Before the interviews are finalised, you should develop a round
of questions that will assist you in narrowing down the
applicants. These questions must relate to the selection criteria
and the needs and expectations of the applicant. Many
organisations use these answers to narrow down the candidates.
Most organisations require specific information so you may
need to find the pro formas for the questions that you must ask
for the interview. Once you have analysed the responses, you
can narrow the applicants down until you identify the one you
are going to offer the position to.
If a panel has been selected, you should confirm a time and date
to review the applicants. Each member of the panel should have
an opportunity to provide feedback. Before making the final
decision, you should confirm with the references to ensure that
the applicant actually has the background on the resume. Be
careful when you ask questions to ensure that you do not breach
any privacy laws.
Once the preferred candidate has been chosen, then you should
make the offer. Once the offer is accepted, you should
determine when they are prepared to start employment so that
you can arrange for the applicant to be inducted to the
organisation.
Activity 2A

2.2 – Develop and implement strategies to ensure that physical
Supplier relationship
As a part of their operational and quality assurance initiatives
and goals, many organisations are developing business
relationships with their suppliers.
To build a strong supplier relationship you need to have the
framework and the tools to analyse and strengthen key
relationships. Before you can analyse theses key relationships,
it is important to make sure that you realise and understand the
need to form these relationships.
A competitive market has emphasised the need for organisations
to form long lasting relationships with their external suppliers.
One of the reasons for this increase in supplier relationships is
that “the costs of purchased goods and services represent the
dominant part of the total costs of most companies” (Ford,
2003, p.91). Outsourcing some of the work to their suppliers,
allows your organisation to specialise in one area, while
improving their efficiency by providing economies of scales to
their operations.
Economy of scales in this instance means that by outsourcing,
your organisation is able to decrease their production costs. By
specialising in one section of their products construction, the
organisation is increasing the efficiency of their productivity.
Suppliers are now designing and developing modules that make
up the products your organisation produces. For example, if you
work in a production area, you will rely on your suppliers to
meet your needs. To make a car, you will need to form supplier
relationships with glass making companies, tyre companies,
hardware organisations and accounting firms to ensure that your
operating costs are minimised.
Concepts such as JIT (Just in Time) and TQM (Total Quality

Management) have also had a positive impact on the efficiency
of production and minimising costs. Rather than ordering stock
and storing it within the production area, JIT ensures that
components arrive just in time to reach the production line. You
are now saving in storage costs and this has also has a positive
influence on production costs.
TQM influences the number of organisations your employer will
form lasting relationships with. Collaborating with a supplier
can be very demanding. To counteract the costs of forming
several relationships, organisations instead turn their attenti on
to fewer suppliers and spend time and resources forming a more
lasting relationship with them.
The types of questions and considerations your employer may
make are:
Should we purchase externally or internally?
The answer to this lies in the choice of what the supplier has to
offer. Purchasing can improve performance while at the same
time the organisation can take advantage of the problem solving
skills of the suppliers to increase performance. The supplier is
the expert on the product because they developed it, thus they
will have the knowledge to assist the organisation in its
decision making processes.
What impact do storage and transport costs play on the final
decision?
Using JIT means that even though transport costs increase, the
cost of storage decreased. This means that warehousing costs
would decrease.
The question of whether the organisation should purchase
externally or not should require organisation representatives
being close to suppliers to find out what they have to offer. One
should not lose sight of the fact that using an external supplier
can contribute to the efficiency of your organisation’s
operations.
For these reasons, supplier relationships can be one of the most
important assets that an organisation can have. Suppliers can

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