Australian Hardware Simulated Business : 671722

Part A

1.

Review the following scenario:

You are the new HR General

Manager at Australian Hardware.

In order to help the organisation realise

its strategic

goals, you will need to ensure a coordinated and integrated approach to performance management across the

organisation. You will need to:

●

analyse organisational plans and policies

●

create objectives for performance management and develop inte

grated processes

●

consult with line managers and other management stakeholders to ensure support and smooth

implementation

●

plan the effective implementation of performance

management processes.

In undertaking this activity you will be guided by your

knowledge of building organisational capability and managing

talent to achieve both shorter and longer

–

term

organisational goals.

2.

Review the Australian Hardware simulated business information provided in the Assessment Appendices and

analyse the organisat

ional documents

–

such as strategic and operational plans

–

in order to understand the

Australian Hardware simulated business, including its vision and strategic objectives. Identify objectives and

policies to be addressed in integrated performance managem

ent processes that you will develop for

implementation.

3.

Develop at least three objectives for performance management to support the Australian Hardware

organisational strategy. These objectives could address areas of performance management such as KPI sett

ing,

Develop and manage performance

–

management processes

–

BSBHRM512

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ongoing performance monitoring and management and performance appraisals. Record these objectives in the

first table in the planning template provided in Appendix 1.

4.

Design a process

–

such as methods, a set of procedures or tools

–

to assist managers

to develop KPIs for the

employees reporting to them. Ensure that the performance management process is flexible enough to cover the

range of employment situations that exist within the Australian Hardware simulated business.

5.

Arrange with your assessor to

role

–

play consultation with two managers (a line manager and the Chief Operating

Officer) to ensure objectives, and processes

for developing KPIs are understood, agreeable and feasible for

managers to implement.

Ensure you act during your consultation in a

way designed to ensure support for your processes. Be prepared to

demonstrate your knowledge of the role of HR in building organisational capability, contributing to the

development of a learning organisation, and achieving organisational success.

Note:

As a result of consultation, you may need to amend your three objectives and your process

–

methods,

procedures or tools

–

to meet the needs of various manager stakeholders.

6.

Plan implementation of processes related to the objectives you have developed. You

may use the template in

Appendix 1 to record your plan.

Ensure your implementation plan includes strategies to ensure concerns of

stakeholders about KPI setting and performance appraisals are addressed. Ensure you include appropriate

timeframes. Your sche

dule should cover one financial or calendar year.

Part B

1.

Prepare a 1

–

2page written reflection on the activities you have undertaken during this Assessment Task to

develop performance management processes and plan implementation. Ensure you explain your pla

nning

choices with respect to:

a.

relevance to specific organisational goals and the broader role of performance management in building

organisational capability

b.

characteristics of learning organisations

c.

application of policiesto your planning of processes

d.

co

nsideration and application of equal employment opportunity, privacy and confidentiality, diversity and

anti

–

discrimination policies and legislation, as relevant to performance management

e.

application of grievance procedures to your planning of processes

f.

di

scussion of design options chosen or ruled out to build organisational capability and meet the needs of

the organisation.

2.

Submit the required documents for assessment as per the specifications below. Be sure to keep a copy for your

records

Answer:

Business Plan Excerpt

The Business

Business name: Australian Hardware Ltd

Business structure: Public company since 1982

ABN: 4000000000

Business location: Australian Hardware is headquartered in Sydney, NSW. The business owns and operates 138 stores throughout Australia.

Date established: 26 January 1921.

Ownership and governance: The Greenwright family retains a controlling interest in Australian Hardware. Holden Greenwright serves as both chair of the board of directors and CEO.

Products/services: Australian Hardware supplies hardware and home improvement products and provides expert advice and service.

The Market

Target market: The market has been divided into three target markets or segments: home improvers; DYIs; tradespeople.

Marketing strategy: Australian Hardware takes a two-pronged strategic approach characterised by product and service differentiation along with select targeted marketing activities.

The Future

Vision statement: within five years, Australian Hardware will lead the hardware and home-improvement market in Australia.

Strategic directions: The Australian Hardware strategic directions are:

• increase sales revenue and gross profit
• maintain or increase market share
• control direct and indirect operational costs
• maintain superior product and service quality standards
• establish Australian Hardware’s reputation as a socially and environmentally responsible company.

Key Personnel

Current staff

Position	Name
Chief Executive Officer (CEO)	Holden Greenwright
Chief Financial Officer (CFO)	David Mifsud
Chief Operating Officer (COO)	Mary Chu
Marketing General Manager	Elizabeth Madden
Human Resources General Manager	Susan Black
Store General Managers	x 138

Required staff

Job Title	Quantity	Expected staff turnover	Skills/experience necessary
Store General Manager	3	3%/year	Five years management experience running SME (small–medium enterprise).
Timber Manager	3	5%/year	Trade-specific skills/knowledge. Leadership skills.
Plumbing and Electrical Products Manager	3	5%/year	Trade-specific skills/knowledge. Leadership skills.
Garden Products Manager	3	5%/year	Trade-specific skills/knowledge. Leadership skills.
Hardware and Home Products Manager	3	5%/year	Trade-specific skills/knowledge. Leadership skills.
General Store Operations Manager	3	5%/year	Trade-specific skills/knowledge. Leadership skills.
Sales Consultants	TBC	20%/year	Product/trade-specific skill sets. Sales training.
Cashiers	TBC	30%/year	Some sales experience.
Admin and office staff	TBC	10%/year	Various accounting/clerical skill sets.

Recruitment options

Australian Hardware will deploy targeted advertising in trade magazines and online using organisations such as Seek.com.

Australian Hardware will undertake an investigation of competitor wages and seek to match or better.

Training programs

Australian Hardware will offer a range of ongoing training options to meet business requirements and develop staff skills in the following areas:

●      sales training ●      technical training in product areas ●      managerial and leadership training ●      environmental training

●      community sensitivity training ●      health and safety training ●      support or subsidies for external training, including TAFE and tertiary education.

Skill retention strategies

Australian Hardware will focus on training and development opportunities for existing staff.

Performance management will focus on individually tailored development goals in line with business expectations.

Australian Hardware will undertake investigation of competitor wages and seek to match or better if viable from a budgetary perspective.
Organisational Chart
Operational Plan

Business locations

Australian Hardware stores are located around Australia in the major cities and in the larger regional centres. In areas experiencing growth in population and significant growth in residential building, the demand for products sold by Australian Hardware is considered likely to grow. These areas are targeted by Australian Hardware for either expansion of any existing stores or the building of a new store if none exists.

Process

National marketing campaigns, warehouse look and feel, marketing mix, policy, preferred suppliers and strategic directions are set by the board of directors and senior management.

Strategic directions set at the national level cascade to individual warehouses and are reinterpreted by general managers to match local conditions at the store level. All staff KPIs and targets for performance management reflect national and store strategic directions.

Each Australian Hardware store is run in most operational respects as an independent business. Each store generally buys stock from approved suppliers; however, where appropriate, store general managers have discretion to buy products to suit local market conditions. Store general managers hire and train local staff and have wide discretion to participate in community events and sponsorships.

Suppliers

Current Australian Hardware preferred suppliers are:

●      Ace Consultants ●      Action Marketing ●      Australian Garden Furniture and Nursery ●      Australian Timber Yards

●      Australian Plumbing Supplies ●      CoffeeVille ●      National Homewares ●      Train Your Way Up

Australian Hardware will endeavour to maintain good relations with suppliers through regular owner-level contacts as required. Australian Hardware suppliers provide credit terms of 30 days, to which Australian Hardware will strictly adhere.

In addition to maintaining good relations with current suppliers, Australian Hardware will continue to identify new sources of products that will appeal to the evolving needs of targeted segments.

All suppliers to Australian Hardware are subject to regular audit by quality assurance staff to ensure that they meet the standards outlined.

These standards include:

• financial viability
• control and continual improvement of processes to restrain costs
• a well-documented and traceable quality system
• respect for the environment
• responsible control of remuneration for own employees and any sub-contractor employees.

Products and services

Product/ service	Description	Average Price/unit
Timber	A range of grades of timber for home or industrial use. For consumers and trades. Discount options for tradespeople.	$25
Hardware	A range of fittings, fixtures, etc. for consumers and trades. Discount options for tradespeople.	$10
Tools	A range of high quality Australian-made and imported tools.	$30
Paint	All major brands. For consumers and trades. Discount options for tradespeople.	$30
Housewares	Major Australian and international brands. Product line reviewed frequently. For consumers and trades. Discount options for tradespeople.	$50
Outdoor	Major Australian and international brands. Product line reviewed frequently.	$100
Garden	Seasonal plants and landscaping materials. For consumers and trades. Discount options for tradespeople.	$25

Plant and equipment

A detailed asset register of plant and equipment purchased and maintained by each individual warehouse is maintained by the Operations General Manager and Store General Manager.

Australian Hardware also maintains a detailed registry of fixed assets such as real estate held by the company. This registry is the responsibility of the Chief Financial Officer of the company.

Inventory

Inventory for each warehouse is the responsibility of the Operations General Manager and Store General Manager. Australian Hardware stock is tracked through its in-house enterprise resource management (ERM) system.

Trading hours

Australian Hardware trades 7 days a week, 6 am to 8 pm.

Australian Hardware is closed on public holidays.

Communication channels

Customers are encouraged to contact us through email or Facebook. A telephone number is provided on our website.

Payment types accepted

Australian Hardware accepts cash and all major credit cards and debit cards. EFTPOS is available in all warehouses.

Credit policy

Australian Hardware has 30 day credit terms for approved tradespeople.

Memberships and affiliations

Australian Hardware is a member of the following organisations:

• Hardware Industry Working Group (HIWG)
• The Hardware Association of New South Wales (HANSW)
• The Housing Industry Association (HIA)
• The Master Builders Association (MBA).

Policies and Procedures

Anti-discrimination Policy

Purpose	The purpose of this policy is to ensure transactions with customers of Australian Hardware and other employees are 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 ●      relationship status ●      pregnancy ●      parental status ●      breastfeeding ●      age ●      race ●      impairment ●      religious belief or religious activity ●      political belief or activity ●      trade union activity ●      lawful sexual activity ●      gender identity ●      sexuality ●      family responsibilities ●      association with, or relation to, a person identified on the basis of the above.
Scope	The scope of this policy covers all employees and contractors of Australian Hardware.
Responsibility	Responsibility for the implementation of this policy rests with all employees, contractors and management of Australian Hardware.
Relevant legislation	●      Privacy Act 1988 (Cwlth) ●      Anti-discrimination Act 1977 (NSW) ●      Age Discrimination Act 2004 (Cwlth) ●      Disability Discrimination Act 1992 (Cwlth) ●      Racial Discrimination Act 1975 (Cwlth) ●      Sex Discrimination Act 1984 (Cwlth).
Updated/ authorised	09/2013 – Mary Chu (COO)

Reasonable adjustments

Reasonable adjustments are changes that allow people with a disability to work safely and productively.

Australian Hardware will make reasonable adjustments for a person with a disability who both:

• applies for a job, is offered employment, or is an employee
• requires the adjustments in order to participate in the recruitment process or perform the genuine and reasonable requirements of the job.

Examples of reasonable adjustments can include:

• reviewing and, if necessary, adjusting the performance requirements of the job
• arranging flexibility in work hours
• providing telephone typewriter (TTY) phone access for employees with hearing or speech impairments
• purchasing screen reading software for employees with a vision impairment
• approving more regular breaks for people with chronic pain or fatigue
• buying desks with adjustable heights for people using a wheelchair.

When thinking about reasonable adjustments Australian Hardware will weigh up the need for change with the expense or effort involved in making it. If making the adjustment means a very high cost or great disruption to the workplace, it is not likely to be reasonable.

In some cases Australian Hardware can discriminate on the basis of disability, if either:

• the adjustments needed are not reasonable
• the person with the disability could not perform the genuine and reasonable requirements of the job even if the adjustments were made.

Procedure: To make a complaint

If you believe you are being, or have been, discriminated against, sexually harassed or bullied, you should follow this procedure.

1. Tell the offender the behaviour is offensive, unwelcome, and against business policy and should stop (only if you feel comfortable enough to approach them directly, otherwise speak to your manager or supervisor). Keep a written record of the incident/s.
2. If the unwelcome behaviour continues, contact your supervisor or manager for support.
3. If this is inappropriate, you feel uncomfortable, or the behaviour persists, contact another relevant senior manager. Employees may also lodge a complaint with the Australian Human Rights Commission, or the Fair Work Ombudsman.

Employees should feel confident that any complaint they make is to be treated as confidential as far as possible.

Procedure: To receive a complaint

When a manager receives a complaint or becomes aware of an incident that may contravene Australian Hardware equal employment opportunity (EEO) policies, then they should follow this procedure.

1. Listen to the complaint seriously and treat the complaint confidentially. Allow the complainant to bring another person to the interview if they choose to.
2. Ask the complainant for the full story, including what happened, step by step.
3. Take notes, using the complainant’s own words.
4. Ask the complainant to check your notes to ensure your record of the conversation is accurate.
5. Explain and agree on the next action with the complainant.
6. If investigation is not requested (and the manager is satisfied that the conduct complained is not in breach of Australian Hardware EEO policies) then the manager should:
   • act promptly
   • maintain confidentiality
   • pass any notes on to the other managing staff.

If an investigation is requested or is appropriate, follow the next procedure.

Procedure: To investigate a complaint

When a manager investigates a complaint, they should follow this procedure.

1. Do not assume guilt or innocence.
2. Advise the alleged harasser about the potential outcomes of the investigation if the allegations are substantiated.
3. Interview all directly concerned, separately.
4. Interview witnesses, separately.
5. Keep records of interviews and the investigation.
6. Interview the alleged harasser, separately and confidentially and let the alleged harasser know exactly what they are being accused of. Give them a chance to respond to the accusation. Make it clear they do not have to answer any questions; however, the manager will still make a decision regardless.
7. Listen carefully and record details.
8. Ensure confidentiality; minimise disclosure.
9. Decide on appropriate action based on investigation and evidence collected.
10. Check to ensure that the action meets the needs of the complainant and Australian Hardware.
11. If resolution is not immediately possible, refer the complainant to more senior management. If the resolution needs a more senior manager’s authority, refer the complainant to this manager.
12. Discuss any outcomes affecting the complainant with them to make sure you meet their needs where appropriate.

Possible outcomes

Following the investigation, if management finds the complaint is justified, then management will discuss with appropriate outcomes with the complainant which may include:

• disciplinary action to be taken against the perpetrator (counselling, warning or dismissal)
• staff training
• additional training for the perpetrator or all staff, as appropriate
• counselling for the complainant
• an apology (the particulars of such an apology to be agreed between all involved).

Remuneration and Performance Appraisal Policy

Purpose	This policy establishes the framework and guidelines to be used by Australian Hardware in determining remuneration arrangements for its employees and to assist staff in understanding the organisation’s position on staff remuneration. The purpose of the policy is to: ●      attract and retain employees of the required quality ●      ensure that staff are appropriately compensated for the services they provide to the organisation ●      ensure that remuneration levels are competitive with the external market ●      encourage and motivate staff to achieve the organisation’s strategic business objectives ●      promote and reinforce the organisation’s key values and appropriate employee behaviours ●      ensure a level of equity, consistency and transparency in employee remuneration.
Scope	The staff remuneration policy covers all employees at all levels of the organisation.
Responsibility	Responsibility for the implementation of this policy rests with human resources staff and relevant managers of hiring departments.
Relevant legislation	●      Fair Work Act 2009 (Cwlth) ●      Privacy Act 1988 (Cwlth) ●      Anti-discrimination Act 1977 (NSW)
Updated/ authorised	09/2013 – Mary Chu (COO)

Definitions

Remuneration will comprise base salary, an ‘at risk’ performance pay component, employer guarantee superannuation, and motor vehicle allowance where this is included in an employee’s employment package. The total of these components make up the employee’s remuneration package.

Underlying modern award

Staff covered by the relevant underlying modern award, will be paid no less than the rate of pay set out in that award for the relevant position.

Determining base salary levels

Base salary levels will be determined by job evaluation. Job evaluation is the evaluation of the position based on the information in the relevant position description, in terms of the level of required skills, competencies and knowledge, and criteria such as the level and impact of decision-making and authority to act.

Job evaluation will be carried out by the relevant store manager.

The underlying principles of job evaluation include:

• salary levels will be paid no less than the rate of pay set out in the relevant underlying award
• salary levels are to be benchmarked on an annual basis (as part of the annual budgeting process) against the external market using salary surveys to establish competitiveness with similar positions in the external market
• if the job changes as determined by a job evaluation, the base level remuneration should be altered to reflect the change in the employee’s role and responsibilities
• decisions on broad salary increases (those that apply to all employees), such as CPI or cost-of-living based increases will be made on an annual basis in consultation with partners
• staff will have the opportunity to raise remuneration issues at six-monthly performance review meetings with their manager.

Staff performance plans

Staff will be provided with individual performance plans/workplans for the subsequent financial year. For new employees, a performance plan will be provided at the end of the probation period (first three months of employment). In further years, workplans are agreed upon after the July/August performance review has been conducted.

The performance plans/workplans set out the contribution expected of the role in supporting the achievement of the organisation’s strategic plans and objectives: the actions or activities required to achieve those objectives; and the criteria or standards used to assess the achievement of the objectives. In addition to business plans outcomes, the workplans will include specific project and personal development goals.

For sales staff, the performance plans will detail the sales targets for the period.

Performance appraisals

Performance appraisals will be conducted on a six-monthly (biannual) basis: in late July/early August, and in late January/early February. Further information on performance appraisals can be found in the next policy: Performance Management Policy.

The outcomes of this review will be the finalisation of the performance outcomes for the previous financial year period ending June. This review will also include discussion and sign-off of the performance plan for the coming financial year commencing July 1.

The January/February review is to assess progress towards the achievement of the employee’s performance plan targets.

The appraisals also provide a formal avenue for employees and their managers/supervisors to discuss issues relating to or affecting the employee’s job performance and to discuss and clarify the manager’s/supervisor’s expectations of the employee and vice versa. It is also an opportunity to discuss remuneration and employee training and development needs and opportunities.

Performance Management Policy

Purpose	The development and progress of individual employees is fundamental to Australian Hardware’s future performance. In addition to providing the opportunities for professional development, Australian Hardware aims to help individuals by monitoring and supporting them in their personal growth and development. The aims of this policy are to ensure: ●      employee development opportunities are recognised and implemented efficiently and effectively ●      consistent employee development practices and principles are applied across the organisation ●      employees are developed systematically on the basis of defined needs and that development undetaken is cost-effective and meets agreed standards.
Scope	The scope of this policy covers the performance management process by employees and contractors of Australian Hardware.
Responsibility	Responsibility for the implementation of this policy rests with managers of employees at Australian Hardware. Further information on roles and responsibilities is discussed within this policy.
Relevant legislation	This policy is guided by the procedures set by industrial law, awards and employment agreements that apply to Australian Hardware. Among others they include: ●      Privacy Act 1988 (Cwlth) ●      Anti-discrimination Act 1977 (NSW) ●      Fair Work Act 2009 (Cwlth).
Updated/ authorised	09/2013 – Mary Chu (COO)

Roles and responsibilities

Managers will:

• carry out biannual formal performance review discussions
• monitor individual performance throughout the year, recording key events, observations of importance which relate to the performance, both positive and negative
• refer to the performance management guidelines when carrying out tasks related to performance management
• use the performance management documentation to record formal and informal performance reviews
• provide employees with the opportunity to participate and contribute to their professional and personal development
• provide employees with access to training and development, as reflected in the individual’s development plan
• provide employees with coaching throughout the review period
• allow employees to communicate their career development goals
• ensure employees complete their responsibilities in accordance with the performance management policy and process.

Employees will:

• participate in the formal review discussions openly and honestly
• complete their personal assessment and provide it to the manager as requested
• contribute their thoughts on both positive and negative performance as assessed by their manager
• participate in identified training and development plans as agreed with their manager
• provide information and documentation as requested by their manager relating to their performance and activities throughout the assessment period.

To conduct performance review

The employee’s performance will be monitored and evaluated regularly throughout the year. The performance review encompasses three elements:

• an annual formal review discussion
• a six month follow-up discussion
• continuous monitoring of the employee’s performance.

1. Annual discussion

The annual discussion is a key step in the performance review process. Essentially, this step involves compiling all the information collected and assessed throughout the year relating to the employee’s performance. However, there should be no surprises in this discussion; it is merely a summary and review of the informal and formal reviews conducted throughout the year.

The key elements of the annual discussion are to:

• reflect on performance during the year
• clarify key responsibilities of the role and review the job description
• discuss successes as well as areas for improvement
• set agreed targets and performance standards for the next six months
• agree on key areas of development for effective performance in the role.

2. Documentation

The performance review documentation is important for recording the standards, targets and development plans that are agreed upon during the performance review process. It is important to use the correct forms to maintain the integrity of the information, and to help the manager and employee ensure that the review is completed correctly.

3. Timing

Employee performance is to be formally reviewed every 12 months with a follow-up review six months into the financial year. A new plan should be completed at each annual appraisal discussion.

4. Six month follow-up discussion

The follow-up review provides an opportunity for managers and employees to re-visit targets, standards and development plans to:

• establish that progress is on track
• identify changes impacting on the achievement of targets and standards
• discuss development plan progress or establish development plan
• modify standards and targets, if required.

Flow chart of the performance review process

 
Performance management plan template

Name and position:
Manager:			Review period:
Reference from operational plan	Key result area	Indicator of success/ performance			By when	Status report
Achievements:				Areas of Opportunity:
Manager’s comments:
Signature:				Date:
Staff member’s comments:
Signature:				Date:

Disciplinary Policy

Purpose	The purpose of this policy is to outline Australian Hardware’s approach to disciplinary action in cases of underperformance or misconduct. Where warranted, Australian Hardware will use improvement processes to improve performance. Should such improvement processes be unsuccessful in improving an employee’s performance, Australian Hardware may decide to end an employee’s employment. Depending on the circumstances, performance improvement action may include verbal or written warnings, counselling or re-training. Australian Hardware requires a minimum standard of conduct and performance which will be made clear to employees at induction and in performance reviews. If an employee does not meet this standard, Australian Hardware will take appropriate corrective action, such as training. Formal performance improvement procedures will generally only start when other corrective action fails. If an employee deliberately breaches business policy or procedure, or engages in misconduct, Australian Hardware may start improvement procedures, or, in cases of serious misconduct or breach of policy, may dismiss an employee. Each employee must understand their responsibilities, be counselled and given the opportunity to reach the standards expected of them. Australian Hardware will give an employee the opportunity to defend themselves before management takes further action.
Scope	The scope of this policy covers the performance management process by employees and contractors of Australian Hardware.
Responsibility	Responsibility for the implementation of this policy rests with managers of employees at Australian Hardware. Further information on roles and responsibilities is discussed within this policy.
Relevant legislation	This policy is guided by the procedures set by industrial law, awards and employment agreements that apply to Australian Hardware. Among others they include: ●      Privacy Act 1988 (Cwlth) ●      Anti-discrimination Act 1977 (NSW) ●      Fair Work Act 2009 (Cwlth).
Updated/ authorised	09/2013 – Mary Chu (COO)

Procedure

1. Australian Hardware will advise the employee of any shortfall in their performance. The manager will advise the employee in clear terms what they see as the performance problem or the unacceptable conduct. To highlight the deficiency the manager should use specific examples, and refer to the correct policy or procedure. The employee should be given an opportunity to respond.
2. Once the employee has responded, the manager will consider their response and decide if performance improvement action should be taken. Australian Hardware will provide support such as training where appropriate.
3. If the employee is given a verbal warning, the manager should make a note of it, date it and sign it.
4. The manager will allow the employee to respond before making a decision and consider the employee’s responses. The manager should determine whether the issue requires a written warning or a performance management meeting. The employee may have a support person present at such meetings.
5. If a written warning is to follow, the manager is to:
   • document it and give the employee a copy
   • give the employee the opportunity (and their support person the opportunity) to sign the warning
   • keep a copy on file.
6. The warning (written or discussed in a meeting) must clearly define:
   • the deficiency
   • a clear explanation of the expected standard
   • by when the employee needs to achieve the standard
   • how the business will help the employee achieve the improvement required
   • consequences of failing to improve.
7. The manager concerned will keep a record of all meetings, training and/or coaching given and a summary of discussions, and put a copy on the employee’s personnel file. This should include date, location and time of discussion.
8. They will continue to support the employee and note the support they give, for example, training or counselling.
9. If the employee’s performance or conduct doesn’t improve, the manager will give the employee a final written warning and follow steps 4–10 above. This document needs to warn the employee, in clear terms, that Australian Hardware will terminate their employment if there is not enough (sustained) improvement in their performance.

Note: some circumstances justify going straight to a second or final warning.

Serious misconduct

Summary (instant) dismissal for gross or very serious misconduct may be necessary, depending on the circumstances. Management should seek advice before taking this step.

Allegation of serious misconduct – procedure

1. The manager is to investigate the alleged offence thoroughly, including talking to witnesses, if any.
2. The manager should ask the employee for their response to the allegation (taking notes of this discussion) and allow them to have representation. The manager should also have a witness present. The manager shall give genuine consideration to the employee’s response and circumstances.
3. If still appropriate, following a thorough investigation, the manager can terminate/dismiss the employee.
4. The manager should keep a file of all evidence collected and action taken in these circumstances.
5. Australian Hardware will send the employee a letter of termination noting brief details.

Updated/ authorised

09/2013 – Lynn Lee (Finance Manager Wollongong)

Grievance Policy

Australian Hardware supports the right of every employee to lodge a grievance with their manager if they believe a decision, behaviour or action affecting their employment is unfair. An employee may raise a grievance about any performance improvement action taken against them.

Where a grievance may contravene Australian Hardware’s equal employment and opportunity (EEO) policy or where the grievance constitutes bullying, discrimination or harassment, the grievance should be resolved in accordance with the procedures outlined in the Anti-discrimination policy.

We aim to resolve problems and grievances promptly and as close to the source as possible. When necessary, Australian Hardware will escalate a grievance to the next higher level of authority for more discussion and resolution, and continue escalating it to the level above until it is resolved.

Managers will do their utmost to action grievances objectively, discreetly and promptly. Be aware that grievances that are misconceived, vexatious, and lacking substance may result in disciplinary action being taken against the employee lodging the grievance.

Procedure

1. The employee should try to resolve the grievance as close to the source as possible. This can be informal and verbal. At this stage, every possible effort should be made to settle a grievance before the formal grievance process starts. If the matter still can’t be resolved, the process continues and becomes formal.
2. To start the formal grievance, the complainants must fully describe their grievance in writing, with dates and locations wherever possible and how they have already tried to settle the grievance.
3. The person/s against whom the grievance/complaint is made should be given the full details of the allegation/s against them. They should have the opportunity and a reasonable time to respond in writing before the process continues.
4. A manager should have a discussion with both parties in an effort to resolve the grievance at the workplace level.
5. If the grievance still can’t be resolved, refer the matter to the most senior manager for consideration and a final decision. A grievance taken to this level must be in writing from the employee.

Should the issue recur, a review may be undertaken at any stage thereafter by the most senior manager or owner. Further reviews may be held if required.

Recordkeeping Policy

Purpose	The purpose of this policy is to outline the organisation’s approach to recordkeeping. At Australian Hardware, records management systems are based on developing and implementing recordkeeping policies, procedures, and practices to meet the operational needs of the organisation and that comply with externally imposed standards such as legislation. Implementation strategies for recordkeeping systems include: ●      ensuring the system meets all operational and strategic needs of needs Australian Hardware ●      documenting the system (see procedures) ●      training personnel to create and store records ●      setting standards for recordkeeping and monitoring use of systems ●      ensuring all legislative requirements are met, including for retention periods.
Scope	This policy applies to all officers, employees and contractors of Australian Hardware.
Responsibility	Responsibility for the implementation of this policy rests with managers of employees at Australian Hardware. Further information on roles and responsibilities is discussed within this policy.
Relevant legislation	This policy is guided by the procedures set by industrial law, awards and employment agreements that apply to Australian Hardware. Among others they include: ●      international standard for recordkeeping, AS ISO 15489: 2002 Records Management. ●      Privacy Act 1988 (Cwlth) ●      Anti-discrimination Act 1977 (NSW)
Updated/ authorised	09/2013 – Mary Chu (COO)

Recordkeeping procedures

Employee records management

Employee records include, for example:

• payroll records
• tax records
• recruitment records
• all human resources records, for example:
  • personal scorecard information
  • requests for HR services or information
  • performance management records such as performance appraisals and performance management planning
• all other records which may record identifying details of an employee.

Although, not a legislative requirement, Australian Hardware employees, officers and agents are expected to take all reasonable steps to abide by the National Privacy Principles as set out in the Privacy Act 1988.

The following is an adaptation of the principles to provide guidance to individuals responsible for collecting or using employee information.

1.  Collection	Australian Hardware employees, officers or agents must ensure that individuals are aware their personal information is being collected, why, who it might be passed on to and that they can ask Australian Hardware what personal information it holds about them.
2.  Use	Personal information may not be collected unless it is necessary for Australian Hardware business activities and may only be used for legitimate purposes. Legitimate uses include, for example, using information for the purpose of improving operations, strategic planning, or recruitment. Non-legitimate uses would involve direct marketing to friends and families on the basis of employee information.
3.  Data quality	Australian Hardware employees, officers or agents must take reasonable steps to ensure personal information they collect is accurate, complete and up-to-date.
4.  Data security	Australian Hardware employees, officers or agents must take reasonable steps to protect the personal information it holds from misuse and loss and from unauthorised access, modification or disclosure.
5.  Openness	Australian Hardware employees, officers or agents must have a policy document outlining its information handling practices and make this available to anyone who asks for it (this document).
6.  Access and correction	Generally, Australian Hardware employees, officers or agents must give an individual access to personal information it holds about the individual on request. Note that some exceptions may apply, such as in cases of misconduct, fraud, criminal behaviour, or dismissal procedures.
7.  Identifiers	Generally, Australian Hardware employees, officers or agents must not adopt, use or disclose an identifier that has been assigned by a Commonwealth government agency unless for a legitimate business or operational reason, such as the processing of payroll, where tax file numbers may need to be shared, for example.
8.  Anonymity	Australian Hardware employees, officers or agents must give people the option to interact anonymously whenever it is practicable to do so. Note this principle would not apply to many internal records; nevertheless, where this principle can be applied without adverse effect to legitimate business interests, such as in employee satisfaction surveys undertaken by HR, it should be.
9.  Transborder data flows	Australian Hardware employees, officers or agents can only transfer personal information to a recipient in a foreign country in circumstances where the information will have appropriate protection. This principle applies to foreign subsidiaries and strategic partners of Australian Hardware. ‘Appropriate protections’ include but are not limited to stipulations in this policy.
10. Sensitive information	Sensitive information (such as about someone’s health, political opinions or sexual preference), may only be collected with the consent of the individual.

File management

Create a personal subfolder within the server (using your name as the subfolder name) to hold your day-to-day working files.

Do not store company data in the C: drive (local computer hard drive) on your computer unless absolutely necessary. Company data should be stored in the appropriate server drive. Unlike the servers which are backed up automatically, data on your computer’s hard drive is not backed up and your work may be lost if you experience a system crash.

If you use a laptop and require access to files offsite, you will be set up with offline files allowing remote access to server files away from the office.

‘Move’ completed files to the appropriate folder in your department.

Filenames:

Filename should include the author’s last name, short description or abbreviated title of report or document, and date of completion.

Back-ups:

Back-up copies of all electronic files on the server are made twice weekly.

If you spend an extended time away from the office network using a laptop, it is your responsibility to ensure local copies of company files are backed up.

Procurement and Preferred Suppliers Policy

Purpose	Procurement is also called ‘supply management’ or ‘purchasing’. The procurement policy is concerned with processes that control incoming products and materials. The purpose of this policy is to ensure the purchase of resources is carried out consistently, fairly and transparently and in accordance with Australian Hardware requirements.
Scope	The scope of this policy covers the purchasing and acquisition of resources by employees and contractors of Australian Hardware.
Responsibility	Responsibility for the implementation of this policy rests with employees and management of Australian Hardware’s stores with responsibility for purchasing resources.
Relevant legislation	●      Privacy Act 1988 (Cwlth) ●      State anti-discrimination legislation ●      State work health and safety legislation ●      Australian Securities and Investments Commission Act 2001 (Cwlth) ●      Corporations Act 2001 (Cwlth) ●      Income Tax Assessment Act 1997 (Cwlth) ●      Fair Work Act 2009 (Cwlth).
Updated/ authorised	09/2013 – Lynn Lee (Finance Manager Wollongong)

Principles governing procurement process

1. Probity and ethical behaviour

The principle of probity (which means to have strong moral principles, honesty and decency) 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. Sustainability

Follow the sustainability policy and principles outlined in the sustainability policy when procuring supplies.

3. Value for money

Value for money is the core principle underpinning procurement. Organisations contracted to do work for Australian Hardware must be cost-effective and efficient in the use of resources whilst upholding the highest standards of probity and integrity.

In general, a competitive procurement process that is carried out in an open, objective and transparent manner can achieve best value for money in procurement.

4. Non-discrimination

This procurement policy requires that the procurement process 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.

5. Risk management

Risk management involves the systematic identification, analysis, treatment of risk as well as, 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.

6. 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.

7. 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. The process must also 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 which:

• encourages competition
• ensures that rules do not operate to limit competition by unnecessarily 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.

8. 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 judgment 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 to take on larger orders and meet fluctuations in order numbers
• the scope for improvements to the goods and ‘add-ons’ from local industry.

9. Pre-registered list of suppliers and contractors

Australian Hardware shall maintain a pre-registered list of preferred suppliers and contractors.

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. The list should be maintained in accordance with the sustainability policy. Suppliers must be audited once per year with regard to sustainable practices. It is in the interest of the organisation that the pool of potential suppliers is actively maintained and updated. Employees should provide reports of their experiences in working with each supplier/contractor to assist future decisions concerning the list.

10. Avoid conflict of interest

Employees and directors are not permitted to personally gain from any aspect of a procurement process. Employees and directors are required to be free of interests or relationships in all aspects of the procurement process.

For those individuals who are involved in procurements, any investment in, or close relationship with, a contractor represents a conflict of interest. This individual must disclose the conflict of interest to the Store Manager or Finance Manager to allow sufficient time for a review.

Employees and directors shall ensure that to the best of their knowledge, information and belief, that at the date of engaging a supplier or contractor that no conflict of interest exists or is likely to arise in the performance of the supplier/contractor’s obligations under their contract.

Should employees or directors become aware of potential conflicts of interest, they must advise the Store Manager or Finance Manager and directors immediately.

11. Report collusive tendering

Employees should be aware of anti-competitive practices such as collusive tendering.

Collusive tender would occur if an employee of Australian Hardware were to secretly share information or arrange a situation that would control the result of tendering to favour or discriminate against particular applicants.

Any evidence of suspected collusion in tendering should be brought to the attention of the Store Manager or Finance Manager.

12. Competitive process

It is a basic principle of procurement that a competitive process should be used unless there are justifiably exceptional circumstances. The type of competitive process can vary depending on the size and characteristics of the contract to be awarded.

13. 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).

The selection process should have particular regard to the need for equal treatment and reasonable distribution of opportunities.

14. 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.

15. 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.

2009. The effectiveness of the MacVille Risk Management Framework in supporting the principles and processes of risk management, set out in the risk management standard AS/NZS ISO 31000:2009. Outline the purpose and key elements of the standard in your discussion.

The concept of risk management in any organization need to be addressed so as to mitigate risks that can result to losses as well as poor performance of workers. For the case of MacVille Risk Management Framework, it is very important to indicate the main purpose of risk management. To start with, it is very important to identify risks that can bring loses to MacVille Cafés.  Through identification of risk, the company will be in apposition to lay down strategies so as to mitigate those risks (Arnold, 2010). In that case, the process of risk identification become the initial phase of MacVille Risk Management Framework. Another concept that need to be addressed in this framework is risk evaluation. This is done by assessing the extent to which risks result to losses. I that connection, MacVille Risk Management Framework require qualified personnel to evaluate risks. It is also a core purpose of this framework to control and manage risk. It is advisable to the new outlet in Toowoomba to avoid cases that result to risks. Managing risks is the overall purpose of risk management framework.

Another purpose of risk management framework is to identify the main threats that can affect the operations of the company. Threats in this case would include unfavorable policies, practices and procedures applied in Mac Ville. It also involves competition from other business operators. It is therefore important to ensure that potential threats are identified and managed (Kanungo & Manuel, 2014). In that connection, the purpose of risk management framework would as well include identification of opportunities. Through identification of opportunities, it is possible to fill in gaps that exist in the market for MacVille to fully exploit.

The other purpose of risk management framework is to offer education to internal and external stakeholders of the company such as staff members, directors and senior management team. They will be in a position to adjust to their duties, roles and responsibilities. It also enhance reporting of procedures with regard to management of threats and risks.

Lastly, it is the purpose of risk management framework to integrate planning policies and procedures at all levels of organization. This purpose will promote risk mitigation across all levels of the organization.

The key elements in risk management that can be applied in MacVille risk management framework include.

1. Proper risk identification.
2. Proper risk evaluation.
3. Proper risk control
4. Proper management of risks.
5. Identify and describe the scope of risk management required in your role.
6. Policy implementation. As a manager of the new outlet in Toowoomba, I have various obligations to satisfy. These obligations lies under my scope as a manager to mitigate risk. First, I am mandated to initiate implementation of policies and procedures to manage risks. In that connection, I am required to initiate internal control process so as to fully mitigate risks that are likely to affect outlets such as Toowoomba.
7. Risk identification and evaluation (Marylene, 2014). As a manager of the new outlet in Toowoomba, I am required by law to identify as well as to evaluate risks in areas of core value that are likely to affect MacVille Company. In that case, I am require to get assistance from directors so as to fully mitigate potential risks.
8. Identification of weak areas. There are areas where the risk management fail to address adequately. As a manager, I am required to identify those areas and offer suggestions to directors on what need to be done in those areas to as to reduce adverse effects of risks.
9. Review and update strategies applied in risk management. Based on the level of risks, strategies applied to solve the risks keep of changing due to dominancy of various risks. Thus, as a manager, I am required to undertake annual reviews so as to update these strategies.
10. Identify and describe the critical success factors, goals or objectives for areas included in the scope.

The success factors in risk management include reduction of risks, prevention of risks from occurring, controlling of risks from bring further damages and management of risks to reduce cases of low performance and losses (Maslow, 2013). From that concept, as a manager of the new outlet in Toowoomba, I have to set goals or objectives that will be initiate the process of risk management and creation of opportunities. These goals are strategic in nature.

1. To increase output of the new outlet in Toowoomba. This will be achieved if all risking factors are mitigated.
2. To promote growth, development and expansion of MacVille business. If risk are mitigated at the new outlet in Toowoomba, then the whole part of MacVille business will experience growth and development.
3. Setting standard risk mitigation policies, practices, procedures and strategies that can be applied in all outlets of MacVille business not just in the new outlet in Toowoomba.
4. Identify relevant internal and external stakeholders, their role in the risk management process, and any issues or concerns they have raised. Complete the Table of Stakeholders Template (provided in Appendix 3 of this task) and attach to your report.

stakeholder	Internal/external	Role in process	Stake in process
1.      Directors	Internal	Determining the types of risk which are acceptable and those unacceptable. Setting of policies, procedures, practices, strategies, standards and expectations of staff with respect to conduct. Initiate approval of core decisions affecting MacVille’s risk profile or exposure	Receive feedbacks from senior management team and outlet managers.
2.      Senior management team/store managers.	Internal	Identification of risks. Evaluation of risks Controlling risks. Managing risks.	Oversee the progress of outlets of MacVille business.
3.      Café employees	Internal	Familiarize themselves with the content of the Risk Management Policy. clarify any aspects necessary with a senior team member Consider any risks they feel could impact on them meeting their objectives. manage the risk if it is in their control to do so, or inform a management team member of their concerns	Offer advice to senior management.
4.      Human resource manager.	Internal	Recruit risk management teams. Recruit other employees of MacVille business.	Head of recruitment department
5.      External auditor.	External	Assess MacVille records so as to evaluate levels of risks.	Acts as controller and regulators of records of MacVille business.
6.      Government	External	Licensing business operations. Processing policies and procedures enacted by risk management teams in MacVille Business.	Overall regulator and controller.

 

1. Complete a PEST analysis and a SWOT analysis to identify risks associated with the scenario. Outline the relevant legislation, regulations and standards (including those at a local level, i.e. Toowoomba Council).

PEST analysis

Political 1.      The licensing policies for Toowoomba need to be favorable. 2.      Trading policies and procedures should not be limiting.	Economic 1.      The business should have favorable terms of trade. 2.      The business should mitigate risks associate to unfavorable balance of payment.
Socio-cultural 1.      The business should incorporate the local community in business operations. 2.      It is important to recruit local community in various job positions such as Café employees.	Technological 1.      Technology should be used in product innovation. 2.      Technology should be applied in process innovation to mitigate risks associate to adverse legislation procedures.

 

SWOT analysis

Strengths 1.      Ability to satisfy customers. 2.      Ability to adjust to risks. 3.      Ability to control and manage risks.	Weakness 1.      Lack of adequate manpower in the outlets. 2.      Delays for fund from MacVille as the head office.
Opportunities. 1.      Able team to identify and evaluate risks. 2.      Adjustments in regulations and standards so as to update strategies for risk management.	Threats 1.      Competition from outsiders. 2.      Inadequate resources.

 

1. Describe the methods of research that you used to complete your PEST and SWOT analysis. For example, how you approached the simulated business information; legislation, regulations, etc.; and any other information or research on risk that applies to the scope of your report.

Methods of research applicable is use of qualitative and quantitative data. Political factors can be gathered from case studies. Economic factors can be assessed through comparative paradigm.

For the case of SWOT analysis, primary data can be collected to assess mechanisms to mitigate weaknesses and threats and how to contingent strengths and opportunities.

1. Complete the analysis of risk for the scenario by summarizing the scenario and identifying a list of risks to the project.

In summary, it is very important to understand that risks in any business organization can be mitigated. The best way to do this is to initiate risk management frameworks so as to identify, evaluate, control and manage potential risks that are likely to affect MacVille business (McGregor, 2012).

The risks areas identifiable in MacVille business include:

1. Financial area
2. Organizational area
3. Project management
4. Governance

Email communication to stakeholders.

Email from Ash, the managers of outlet in Toowoomba From: Ash Manager of Toowoomba outlet To: stakeholders Re: input of stakeholder in management of risk in Toowoomba outlet. I write this email with an aim of initiating a program for advancing business operations in Toowoomba outlet. Thus the managing teams will undertake Identification of risks, Evaluation of risks, Controlling risks and Managing risks. The café employees will familiarize themselves with the content of the Risk Management Policy and clarify any aspects necessary with a senior team member. The individual input played by each stakeholder will be of great importance to Toowoomba outlet. I have managed to identify several risks that are likely to affect Toowoomba outlet. They include: 1.      Financial risks 2.      Organizational risks 3.      Project management risks 4.      Governance risks I hereby request any stakeholder who have managed to identify other risk to liaise with my department for further course of actions to mitigate these risks. Regards Ash Manager at Toowoomba outlet

 

Summary of meeting with CEO.

1. The goals that need to be achieved so as to bring success factors include:

• To increase output of the new outlet in Toowoomba.
• To promote growth, development and expansion of MacVille business.
• Setting standard risk mitigation policies, practices, procedures and strategies that can be applied in all outlets of MacVille business not just in the new outlet in Toowoomba.

1. MacVille Risk management process involves the following steps.

• Identification of risks.
• Evaluation of risks.
• Controlling risks.
• Management of risks.

1. I am planning to email all the stakeholders so as to work as a team. We will discuss issues pertaining risk management processes.
2. the CEO gave support to the team so as to manage risks.
3. I requested the CEO to as well offer a hand in mitigation of risks and he promise to support the entire process. He also managed to point out more risks such as financial and theft cases.

TASK 2: ANALYSE AND TREAT RISK.

PART A.

1. For each risk (i.e. the four identified in the scenario for this task), assess the likelihood of the risk occurring.
2. Financial risk- the risk of financial issue is very likely to occur as money change hands.
3. Organizational risk-the organizational risks is likely to occur during operations from head office to other outlets.
4. Project management risk-the probability of this risk occurring is also high due to conflict of interests in the projects under consideration.
5. Governance risk- this risk will occur during delegation of duties.

 

 

1. For each risk, assess the consequence of the risk occurring.

Financial area- MacVille business will losses revenue through cases such as fraud.

Organizational area- this risk will delay operation due to lack of innovation.

Project management risk- there could arise cases of insider trading.

Governance risk- meeting targets and deadline will not be possible.

1. Develop a risk matrix to assist in prioritizing the treatment of the identified risks, including numerical values (e.g. risk matrix in the Student Workbook).

Risk matrix                                                

probability	Severity	Financial risk	Organization risk	Project management risk	Governance risk
Low		Low (1)	Medium (4)	Medium (7)	High (10)
Medium		Low (2)	Medium (5)	High (8)	Extreme(11)
High		Medium (3)	High (6)	High (9)	Extreme(12)

 

1. Once you have prioritized the risks, for each, outline at least two suitable options for treatment.

Financial risk

Ensure that resources are handled well.

Keep proper records of finances.

Organizational risk

Empower other workers.

Initiate innovation.

Project management risk

Work towards targets and objectives.

Monitor individual performance.

Governance risk

Empower other employees.

Cater for issues that affect workers.

1. Include an explanation of the process you used to identify risks and assess likelihood, consequence and priority. Also include an explanation of why the options you have suggested for treating the risks are:

The process of identifying risk was determine from recurrent operations taking place in the organization. Thus, a risk matrix assessed the probability of a risk occurring by considering severity of a particular risk.

Likely to be effective

These mitigation are likely to be effective because they promote win-win situation.

Feasible for the organisation.

They are also feasible for the organization since they do not consume a lot of resources.

Appendix 3: Risk Management Action Plan Template

Risk	Assess risk (score)	Controls	Monitoring	Action priority (1-5)	timelines	Responsible
Financial risk	Low (1) Low (2) Medium (3)	Ensure that resources are handled well. Keep proper records of finances.	Monitor records.	1	2 months	auditor
Organization risk	Medium (4) Medium (5) High (6)	Empower other workers. Initiate innovation.	Monitor performance	3	10 months	Management team
Project management risk	Medium (7) High (8) High (9)	Work towards targets and objectives. Monitor individual performance.	Monitor individual and key performance indicators	4	6 months	Project coordinator
Governance risk	High (10) Extreme(11) Extreme(12)	Empower other employees. Cater for issues that affect workers.	Monitor response for workers	2	8 months	Senior management team

 

PART B

The key risk management treatment to be considered will be keeping records to mitigate financial risk. This is because money comprise the main resource that propel the progress of a business. Keeping proper financial records will ensure that all events are put into consideration. In that case, money loss and misappropriation will be mitigated.

TASK 3: MONITOR RISK AND EVALUATION PROCESSES.

1. Plan

The initial risk in MacVille Business involve management of new outlet at Toowoomba. Thus, the new outlet was likely to face other risks such as financial risks, project management risk, governance risk and operational risk. Integrating all these risk, we form the initial risk. To mitigate this risk, a clear plan was suggested and needed to be implemented (Richard, 2013). This plan involved advising all stakeholders on their key inputs towards initiating the new outlet at Toowoomba.

2. Implementation

There has been actions suggested to be implemented to mitigate risks in MacVille business at Toowoomba. They include:

Ensure that resources are handled well.

Keep proper records of finances.

Empower other workers.

Initiate innovation.

3. Outcomes 

The risk of finances are reduced significantly after proper records have been kept by MacVille management team. The diagram below demonstrate how markets A, B and C behave after these identified risks have been eliminated

1. Evaluation

Different risks have different level of likelihood of occurrence. I that connection, a risk matrix was appropriate in determining the likelihood of risks to occur.

If we evaluate risk ranking:

1. Low/Medium- if activity or risk is medium, then risk mitigation efforts should be made.
2. High- if the likelihood of a risk to occur is high, it is advised to seek further event planning support to mitigate risks.
3. Extreme- if the likelihood of a risk to occur is extreme, it is advised that you do not hold this event without consulting risk management before initiating mitigation process.

 

 

 

 

 

 

References.

Arnold, J. (2010). Coaching Skills for Leaders in the Workplace: How to Develop, Motivate and Get the Best from Your Staff. How to Books.

Kanungo, R.N., & Manuel, M.  (2014). Work Motivation: Models for Developing Countries. Sage Publication put.

Marylene, G. (2014). The Oxford Handbook of Work Engagement, Motivation and Self-Determination Theory. OUP USA.

Maslow, A.H. (2013). A Theory of Human Motivation. Start publishing LLC.

McGregor, D. (2012). The Human Side of Enterprise. New Yolk, 21.

Richard, A. (2013). Job Satisfaction from Herzberg’s Two Factor Theory Perspective. Grin publishing.