COMPLETE ASSESSMENT DOCUMENT
BSB60407 Advanced Diploma of Management
BSBHRM512A Develop and manage performance management process
The following assessments are to be
(a) completed and
(b) submitted
in accordance with the Moodle conditions of use
Completion of items referred to under ?Specifications? is the focus

To obtain the qualification of BSBHRM512A Develop and manage performance management process, the skills and knowledge required are as below:
Skills
Learner should have:
? analytical skills to ensure processes are practical and gather necessary information
? communication and conflict-management skills to deal with grievances, disputes and disagreements
? leadership skills to obtain support and endorsement of the performance-management processes across the organisation
? training, coaching, mentoring and facilitation skills using a range of methods to cater for differences in learning styles, to ensure managers are competent to manage performance.
Knowledge
?
? characteristics of a learning organisation
? equal employment opportunity, privacy and confidentiality, diversity and antidiscrimination policies and legislation
? grievance procedures
? models for giving feedback and options for skill development
? options in the design of performance management and talent management processes
? role of performance management in relation to broader human resources and business objectives.
Assessment Part A Performance management processes
Performance objective
In this assessment, you are required to review the current plans of an organisation, develop the formal processes and provide organisational timeframes for the implementation and operation of a performance management process flexible enough to cover all employees.
Specifications You must provide:
? A completed set of performance management processes Your assessor will be looking for:
? Evidence that you have analysed and identified the needs of the case study, and reflected these in the revised processes you have developed.
Distance-based learners:
There are special requirements. Complete an assessment as per instructions.
Assessment description
Review the organisation’s vision and values by reviewing the case study information provided, as well as discussing the case study organisation with your fellow students. After reviewing materials, prepare the more detailed processes and then check how they would apply to each employee.
Procedure
For the case study information provided in this assessment, you need to summarise:
? the existing set of performance measures
? the current roles of employees
? establish which measures are applicable for each employee
? determine what additional measures are to be implemented.
After you have developed this summary, you need to review your output – and preferably meet with a fellow student to discuss the impact the changes will make to the business. Your report is to be submitted as required by your organisation (your training provider).
Assessment Part B Process implementation
Performance objective
In this assessment, you are required to review your proposed processes and determine how to implement these in conjunction with the ongoing operation of the business.
Specifications You must provide:
? A plan detailing how the performance management processes will be implemented Your assessor will be looking for:
? Evidence that you have analysed the case study and identified the likely issues that may arise during the implementation of a more formal performance management system.
Distance-based learners:
There are special requirements. Complete an assessment as per instructions.
Assessment description
Review the organisation’s vision and values by reviewing the case study information provided, as well as discussing the case study organisation with your fellow students. After reviewing materials, prepare the more detailed processes and then check how they would apply to each employee.
Procedure
For the case study information provided in this assessment, you need to refer to your previous summary and confirm that you have:
? the existing set of performance measures
? the proposed set of performance measures
? the current roles of employees
? establish which measures are applicable for each employee
? determine what additional measures are to be implemented.
After you have developed this summary, you need to review the business operation and determine suitable timing to implement the changes.
Your report is submitted as required by your organisation (your training provider).
APPENDIX 1
Simulated Business
Max Lionel Realty
BSB60407 Advanced Diploma of Management
Table of Contents
Chapter 1 – Business plan (excerpt) ....................................................................... 3
Chapter 2 – Organisational chart and management profiles .................................. 4
Chapter 3 – Management responsibilities .............................................................. 5
Chapter 4 – Budget summary .................................................................................. 6
Chapter 5 – Operational plan .................................................................................. 7
Chapter 6 – Operational risk register ...................................................................... 9
Chapter 7 – Work Health and Safety (WHS) Policy ................................................ 10
Chapter 8 – Anti-discrimination policy ................................................................... 12
Chapter 9 – Procurement policy and procedures .................................................. 13
Chapter 10 – Max Lionel Realty current tenants list ............................................. 18
Chapter 11 – List of pre-approved suppliers ......................................................... 19

Chapter 1 – Business plan (excerpt)
Organisational chart and management profiles ………….Max Lionel Realty organisational chart
BSBHRM512A Develop and manage performance-management processes
Management responsibilitiesMax Lionel, CEO
Max is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions.
RizMehra, Chief Financial Officer
Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz Is also responsible for overseeing budgets for cost centres and individual projects. At the completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections.
Kim Sweeney, Operations General Manager
Kim is responsible for the day-to-day running of the company. Kim oversees the coordination, as well as the structural separation, of the Residential, Commercial, and Investments centres. Kim is responsible for sponsoring projects which affect operations of the organisation as a whole. Kim works with the Human Resources Manager to coordinate systems and projects in order to achieve company-wide synergy.
Les Goodale, Human Resources Manager
Les is responsible for the productive capacity and welfare of people at MLR. With the Operations General Manager, Kim works to coordinate projects and management systems such as performance management, recruitment, and induction. Kim will need to ensure aspects of the recently launched WHS management system, such as risk assessment, management, consulting, reporting and continuous improvement, are coordinated with all subsequent activities.
Sam Lee, Manager Residential Realty
Sam is responsible for the management of all aspects of residential realty. Sam manages the activities of residential agents.
Pat Misfud, Manager Commercial Realty
Pat is responsible for the management of all aspects commercial realty. Pat manages the activities of commercial agents.
Peter Mitchell, Manager Investments
Peter is responsible for the management of all aspects investment realty. Peter manages the activities of investment agents. Peter works with the Operations General Manager to ensure separation of investment from obligations to residential and commercial clients.
BSBHRM512A Develop and manage performance-management processes Budget summary
Max Lionel Realty 2012–13 budget by activities to be undertaken
Income:
Commissions, fees from clients $2,566,000 Commissions and agents‘ fees for the period.
Investment income $1,567,000 Real estate investment income.
COGS $150,413 Cost of provision of services.
Total Income $3,982,587 Gross profit.
Expenses:
Wages, salaries and on costs $1,567,890 Wages, salaries, superannuation, work cover insurance, payroll tax.
Consultancy fees $50,000 Project management: WHS management system; AD awareness program.
Communication expenses $42,000 Telephone, ISP costs, IT support.
Staff travel, transport and accommodation. $55,500 Cost of staff travel and associated costs for sales, etc.
Premises expenses $250,000 Rent, electricity, maintenance, cleaning.
Capital expenditure $120,000 Purchase of new office equipment (90%), vehicles; purchase of properties, land.
Depreciation and amortisation $177,569 Computers and capital equipment that is depreciated.
Office supplies $65,068 Printing and stationery, postage, amenities.
Professional fees (consultants, legal and audit), insurances, taxes and charges, subscriptions and memberships. $62,187 Audit fees, external accounting costs, bank charges, insurance except workers compensation.
Total Expenses $2,390,214
Surplus $1,592,373 Net income before tax.
BSBHRM512A Develop and manage performance-management processes
Operational plan
Max Lionel Realty operational plan (summary) FY 2012/2013
Objectives: Performance measures Tasks:
1 Engage with customers/build ethical profile:
? raise organisational profile by 20%
? improve client satisfaction performance by 25%. ? Percentage of brand recognition in sought-after categories in periodic customer surveys.
? Percentage of customers with positive view of organisational responsiveness, innovation, quality.
? Number of client/tenant complaints. ? Project to raise awareness of anti-discrimination, WHS and other legislation/codes of conduct among agents, clients, tenants.
? Conduct of quarterly surveys: clients and tenants.
? Training needs analysis and training of agents.
? Ensure agents disclose potential conflict of interest to clients, tenants.
? Development of ethical charter, including principles all agents must follow.
2 Increase revenues by 20% within the third quarter. ? Total income.
? Agent income.
? Investment income. ? Investigate resourcing needs: number of agents; personnel; office equipment, cars, etc.
? Fulfil resourcing needs in accordance with policies and procedures.
3 Reduce direct and indirect costs of operations by 10%. ? General ledger accounts; financial statements:
? wages
? cost of agent services
? consultancy fees
? wastage and associated expenses. ? Renegotiate with suppliers.
? Research potential new suppliers.
? Management engagement with employees to achieve greater employee support of organisational goals.
? Include explanation of how activities work with organisational strategic goals in all communications to internal personnel.
? Greater use by managers of budgets to encourage restraint.
? Greater focus on budget restraint in management of projects.
4 Engage workers ? Percentage completion of performance plans and ? Management engagement with employees to achieve greater buy in
Max Lionel Realty operational plan (summary) FY 2012/2013
Objectives: Performance measures Tasks:
with strategic goals of business and support professional development in line with strategic goals. (Targets to be set by individual managers.) performance management process.
? Numbers of coaching sessions completed.
? Numbers of operational – related training programs completed. of organisational goals.
? Include explanation of how activities work with organisational strategic goals in all communications to internal personnel.
? Regular coaching.
? Training needs analysis and training.
? Strategic goals included in induction program for estate agents.
? Employee incentives for performance in all areas relevant to operational and strategic goals.
5 Improve health of employees (range of specific areas). ? Numbers of injuries (Target = 0).
? Numbers of absentees
(Target = 3% of total hours). ? Training needs analysis and training on WHS and implementation of recently launched MLR WHS management system.
? Research incentives for: safe work achievement and healthy lifestyle.
Chapter 6 – Operational risk register
Max Lionel Realty risk register FY 2012/2013
Identified risk Probability Impact Current controls Future actions
Failure to recruit qualified real estate agents due to increased competition. Medium High ? All office equipment regularly reviewed and updated as required; IT security monitored and maintained.
? Appropriate insurances held and coverage reviewed annually.
? Managers encouraged and incentivised to follow performance management policy.
? Employee performance plans align with business plan and six-monthly review process in place.
? Project to raise awareness of antidiscrimination, WHS and other legislation/codes of conduct among agents, clients, tenants
? Appropriate HR policies and procedures in place.
? WHS management system in place. ? Industry benchmarking in all areas of organisational performance
? Conduct periodic reviews of agent performance to ensure professional conduct
? Staff trained in use of technology as needed.
? Keep abreast of changes in potential liabilities.
? Review and develop HR related policies where required.
? Development of ethical charter, including principles all agents must follow.
Failure to realise revenue gains due to recent slump in real estate prices. High High
Inadequate insurance cover. Low High
Non-compliance on antidiscrimination. Medium High
Perception of discriminatory practice reducing client and tenant base. Medium High
Poor organisational culture; low level of staff engagement and morale. Medium Medium
Loss of knowledge and capability through departing staff. Low High
Failure to meet occupational health and safety requirements. Low High
Chapter 7 – Work Health and Safety (WHS) Policy
Max Lionel Realty WHS policy
Max Lionel Realty recognises its responsibility to provide a healthy and safe working environment for employees, contractors, clients and visitors. Max Lionel Realty is committed to the continued wellbeing of its employees and to ensuring that all employees are safe from injury and health risks whilst undertaking workrelated duties, including home-based work.
The purpose of this policy is to ensure the acquisition of
Purpose resources is carried out consistently, fairly and transparently and in accordance with organisational requirements.
In order to ensure a healthy and safe working environment, Max Lionel Realty will (in accordance with the WHS management system):
? undertake risk assessments and implement procedures to adequately manage any risks in the working environment
? provide written procedures and instructions for safe working practices
? ensure compliance with all relevant legislation
? maintain safe systems of work including the work premises and environment
? provide appropriate support, instruction, training and supervision to employees to ensure safe working practices.
The scope of this policy covers employees and contractors of
Scope
Max Lionel Realty (MLR).
Specific procedures for the implementation of this policy are
Resources available below and on the company intranet.
Max Lionel Realty management and employees are ultimately
Responsibility responsible for ensuring that safe systems of work are established, implemented and maintained.
Management is responsible for:
? the effective implementation and regular review of WHS procedures
? consultation with employees regarding health and safety issues and changes to legislation and/or working practices which may affect the health, safety or welfare of employee
? providing and maintaining a safe system of working practices
? providing support, training, and supervision to
employees to ensure safe and healthy workplace practices are carried out, including relevant first aid training where appropriate
? the provision of adequate resources for employees to meet the WHS commitment, including an up-to-date first aid kit.
Individual employees are responsible for:
? following all WHS policies and procedures
? ensuring they report all potential and actual risks to partners or managers/supervisors
? taking care to protect their own health and safety and that of their colleagues at work
? ensuring their own or others health and safety is not adversely affected by the consumption of drugs or alcohol
? encouraging others to follow healthy and safe working practices in the workplace.
Policy
Implementatio n and Review This policy has been established and implemented through the human resource functions of the organisation and will be reviewed regularly in consultation with MLR management and employees to ensure compliance with legislation, industry standards and organisational changes.
Relevant legislation, etc. ? Privacy Act 1998 (Cwlth)
? Estate Agents Act 1980
? Equal Opportunity Act 2010 (Vic)
? Occupational Health and Safety Act 2004
? Dangerous Goods Act 1985
? AS/NZS 4804:2001 Occupational health and safety management systems – General guidelines on principles, systems and supporting techniques
Updated/ authorised
10/2012 – RizMehra, CFO
Chapter 8 – Anti-discrimination policy
Max Lionel Realty Anti-discrimination Policy
Purpose The purpose of this policy is to ensure transactions with clients, tenants and other employees is handled fairly and transparently and in accordance with organisational and legal requirements. Generally it is unlawful to discriminate on the basis of the following 16 characteristics:
? sex ? political belief or
? relationship status activity
? pregnancy ? trade union activity
? parental status ? lawful sexual activity
? breastfeeding ? gender identity
? age ? sexuality
? race ? family responsibilities
? impairment ? association with, or
? religious belief or relation to, a person religious activity identified on the basis of the above.
Scope The scope of this policy covers all employees and contractors of Max Lionel Realty (MLR).
Resources Specific procedures for the implementation of this policy are available below and on the company intranet.
Responsibility Responsibility for the implementation of this policy rests with all employees, contractors and management of Max Lionel Realty.
Relevant legislation, etc. ? Privacy Act 1998 (Cwlth)
? Equal Opportunity Act 2010 (Vic)
? Age Discrimination Act 2004
? Australian Human Rights Commission Act 1986
? Disability Discrimination Act 1992
? Racial Discrimination Act 1975
? Sex Discrimination Act 1984.
? Estate Agents Act 1980
Updated/ 10/2012 – RizMehra, CFO
authorised
Chapter 9 – Procurement policy and procedures
Max Lionel Realty procurement policy
Purpose The purpose of this policy is to ensure the acquisition of resources is carried out consistently, fairly and transparently and in accordance with organisational requirements.
Scope The scope of this policy covers the purchasing and acquisition of resources by employees and contractors of Max Lionel Realty (MLR).
Resources Specific procedures for the implementation of this policy are available below and on the company intranet.
Responsibility Responsibility for the implementation of this policy rests with employees and management of Max Lionel Realty with responsibility for purchasing resources.
Relevant legislation etc. ? Privacy Act 1998 (Cwlth)
? Estate Agents Act 1980
? Equal Opportunity Act 2010 (Vic)
? Australian Securities and Investments Commission Act 2001 (Cwlth)
? Corporations Act 2001 (Cwlth)
? A New Tax System (Goods and Services Tax
Administration) Act 1999 (Cwlth)
? A New Tax System (Goods and Services Tax) Act 1999 (Cwlth)
? Income Tax Assessment Act 1997 (Cwlth)
? Fair Work Act 2009 (Cwlth)
? Occupational Health and Safety Act 2004 (Vic)
Updated/ authorised
10/2012 – RizMehra, CFO
14 Principles governing the Max Lionel Realty procurement process
1. Probity and ethical behaviour
The principle of probity and ethical behaviour governs the conduct of all procurement activities. Employees who have authority to procure goods and services must comply with the standards of integrity, probity, professional conduct and ethical behaviour. Employees or directors must not seek to benefit from supplier practices that may be dishonest or unethical.
2. Value for money
Value for money is the core principle underpinning procurement. Contracted organisations must be cost effective and efficient in the use of resources whilst upholding the highest standards of probity and integrity. In general, a competitive process carried out in an open, objective and transparent manner can achieve the best value for money in procurement.
3. Non-discrimination
This procurement policy is non-discriminatory. All potential contracted suppliers should have the same opportunities to compete for business and must be treated equitably based on their suitability for the intended purpose.
4. Risk management
Risk management involves the systematic identification, analysis, treatment and, where possible, the implementation of appropriate risk-mitigation strategies. It is integral to efficiency and effectiveness to proactively identify, evaluate, and manage risks arising out of procurement related activities. The risks associated with procurement activity must be managed in accordance with the organisation‘s risk management policy.
5. Responsible financial management
The principle of responsible financial management must be applied to all procurement activities. Factors that must be considered include:
? the availability of funds within an existing approved budget
? staff approving the expenditure of funds strictly within their delegations
? measures to contain costs of the procurement without compromising any procurement principles.
6. Procurement planning
In order to achieve value for money, each procurement process must be well planned and conducted in accordance with the principles contained in this document and comply with all of the organisation‘s policies and relevant legal and regulatory requirements.
When planning appropriate procurement processes consideration should be given to adopting an approach that:
? encourages competition
? ensures that rules do not operate to limit competition by discriminating against particular suppliers
? recognises any industry regulation and licensing requirements
? secures and maintains contractual and related documentation for the procurement which best protects the organisation
? complies with the organisation‘s delegations policy.
7. Buy Australian Made/support for Australian industry
Employees who are involved in procurement activities must make a conscious effort to maximise opportunities for Australian manufacturers and suppliers to provide products where there is practicable and economic value. In making a value for money judgement between locally-made and overseas-sourced goods, employees are to take into account:
? whole-of-life costs associated with the good or service
? that the initial purchase price may not be a reliable indicator of value
? the quality of locally made products
? the record of performance and delivery of local suppliers
? the flexibility, convenience and capacity of local suppliers for follow on orders
? the scope for improvements to the goods and =add-ons‘ from local industry.
8. Pre-registered list of preferred suppliers
Max Lionel Realty shall maintain a pre-registered list of preferred suppliers, following a request for expressions of interest and an evaluation of the submissions. Suppliers can request to be evaluated for inclusion on the existing pre-register list at any time.
All purchases under $5,000 may be made from preferred suppliers without undertaking a competitive process. Purchases above $5,000 where a preferred supplier exists should include a competitive process if practicable.
This list is reviewed at regular intervals with admission of interested parties on a rolling basis. Care should be taken to ensure that such lists are used in an open and non-discriminatory manner. Max Lionel Realty encourages new contractors to provide information on their experience, expertise, capabilities, pricing, fees, and current availability. It is in the interest of the organisation that the pool of potential suppliers is actively maintained and updated. Employees should be encouraged to provide reports of their experiences in working with each contractor/consultant to assist future decisions concerning commissioning suitable contractors and consultants.
9. Avoid conflict of interest
Employees and directors are required to be free of interests or relationships in all aspects of the procurement process.Employees and directors are not permitted to personally gain from any aspect of a procurement process.
Employees and directors shall ensure that to the best of their knowledge, information and belief, that at the date of engaging a contractor no conflict of interest exists or is likely to arise in the performance of the contractor‘s obligations under their contract.
Should employees or directors become aware of potential conflicts of interest during the contract period, they must advise the CEO and theBoard of Directors immediately.
Prior to any situation arising with potential for a conflict of interest, complete disclosure shall be made to the CEO and the Board of Directors to allow sufficient time for a review.
10. Report collusive tendering
Employees should be aware of anti-competitive practices such as collusive tendering. Any evidence of suspected collusion in tendering should be brought to the attention of the CEO and the Board of Directors.
11. Competitive process
It is a basic principle of procurement that a competitive process should be used unless there are justifiable circumstances. For purchases under $5,000, the list of preferred suppliers may be used. The type of competitive process can vary depending on the size and characteristics of the contract to be awarded.
12. Direct invitation (selective or restricted tendering)
A process of direct sourcing to tender may be used. This may involve:
? an invitation to organisations deemed appropriately qualified for a particular product or service (this may be appropriate for specialised requirements in markets where there is a limited number of suppliers or service providers)
? an invitation to tender to organisations on MLR‘s pre-registered list of preferred suppliers if applicable.
13. Evaluation and contract award
For projects being awarded, consideration will be given not only to the most economically advantageous tender, but also to the track record of the tender respondent and the degree of confidence that the panel has in the quality if the bid. It will be the normal practice to have the evaluation of tenders carried out by a team with the requisite competency.
14. Results of tendering process
All tender respondents should be informed in writing of the result of a tendering process immediately after a contract has been awarded.
Summary of procurement policy delegations
Authority Purchase amount Required number of quotes Comment
CEO and one
Director Authority to sign contracts for products and services over $75,000. Two or more competitive quotes for contracts over $75,000. Detailed services contract required.
CEO Authority to sign contracts for products and services up to $75,000. Two or more competitive quotes. Detailed services contract required for contracts over $20,000.
General Managers
Delegated authority only through CEO Authority to sign contracts for products and services under $30,000. One or more competitive quotes preferred. Provided they are within the approved budget and consistent with business/operational and strategic planning.
Managers Authority to sign contracts for products and services under $10,000. One or more competitive quotes preferred. Follow MLR purchasing procedures.
Agents Authority to sign contracts for products and services under $5,000. Must use preferred suppliers list. Follow MLR purchasing procedures.
Contractors and external consultants No authority. One or more competitive quotes preferred.
Must use preferred suppliers list. Contractors and external consultants must follow MLR purchasing procedures and must seek approval for purchases from person holding relevant authority.
Chapter 10 – Max Lionel Realty current tenants list
BSBHRM512A Develop and manage performance-management processes
BSB60407 Advanced Diploma of Management
Chapter 11 – List of pre-approved suppliers
BSBHRM512A Develop and manage performance management process