Research workforce requirements and develop a workforce planTask summary and instructions
What is this assessment task about? JKL Industries is an Australian-owned company selling forklifts, small trucks and spare parts to industry, with a rental division leasing forklifts and small trucks.
As an HR consultant, you have been contracted by JKL to review workforce requirements and develop a workforce plan.
To complete this task, please refer to Appendix 1 – Scenario and Appendix 2 – Policies and Procedures at the end of this assessment document.
This task comprises of product-based assessment methods, and direct observation of a Role Play in a simulated work environment.
It has been designed to evaluate your ability to:
• Review current data on staff turnover and demographics
• Assess factors that may affect workforce supply
• Establish the organisations requirements for a skilled and diverse workforce
• Review organisational strategy and establish aligned objectives for modification or retention of the workforce
• Consider strategies to address unacceptable staff turnover, if required
• Define objectives to retain required skilled labour
• Define objectives for workforce diversity and cross-cultural management
• Define strategies to source skilled labour
• Communicate objectives and rationale to relevant stakeholders
• Obtain agreement and endorsement for objectives and establish targets
• Develop contingency plans to cope with extreme situations
You are required to address the following:
• Task 2.1 Research workforce requirements
o Develop workforce planning report
• Task 2.2 Develop a workforce plan
o Develop a workforce plan
• Task 2.3 Present and obtain approval for the workforce plan
o Present and discuss the workforce planning report and the workforce plan to obtain approval for the workforce plan.
What do I need to do to complete this task satisfactorily? • submit the completed assessment tasks, according to instructions,
• complete the tasks with sufficient detail and present them in a professional manner,
• use your own words and reference sources appropriately,
• meet the word count where required,
• use the scenario provided,
• use the templates provided where required,
• for your performance to be deemed satisfactory in this assessment task you must satisfactorily address all of the assessment criteria,
• if part of this task is not satisfactorily completed you will be asked to complete further assessment to demonstrate satisfactory performance.
Specifications You must deliver/participate in:
• Role-Play (meeting with relevant stakeholders) in eek 4 of class
You must submit to GOALS
• Workforce Planning Report
• Workforce Plan
• Observation Checklist
• List of changes implemented in the workforce plan
Resources and equipment • Computer with Internet access
• Access to Microsoft Office suites or similar software
• Learning material
• Scenario for assessment document
• Relevant policies and procedures provided in a separate folder
• Use of the templates included in this assessment document
What will the assessor be looking for? Your assessor will be looking for demonstrated evidence of your ability to:
o Research and summarise information
o Analyse and evaluate data
o Evaluate factors that may affect workforce supply
o Define the requirements for workforce
o Develop a workforce plan
o Stakeholder management
o Communication
Re-submission opportunities You will be provided feedback on your performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task. If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date. You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal. You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.
Procedures
1. Review the assessment scenario, the business documentation, including policies and procedures and the templates provided:
o Appendix 1 – Scenario
o Appendix 2 – Policies and Procedures
at the end of this document
o Templates:
? 1 – Workforce Planning Report in Task 2.1
? 2 – Workforce Plan in Task 2.1
2. Review the JKL simulated business: Appendix 1 (Scenario) and Appendix 2 (Policies and Procedures); and undertake independent research to determine external factors that may affect the workforce supply.
Investigate:
• current data on staff turnover and demographics
• projections for future workforce needs
• external factors that may affect workforce supply
• relevant industrial relations information, such as modern awards, conditions, rights and responsibilities of workers and management
• relevant government policy.
3. Based on your findings and analysis, develop a workforce planning report (Template 1).
4. Develop a workforce plan (Template 2) to include:
• Objectives for modification or retention of the workforce
• Strategies to address unacceptable turnover
• Objective required for retaining skilled labour
• Objectives for workforce diversity and cross-cultural management
• Strategies to source skilled labour
• Communication plan
• Risk analysis and contingency plan
5. Schedule a time with the trainer and assessor in week 4 of class to present and discuss the workforce planning report and the workforce plan.
The meeting aims to obtain agreement and endorsement of the workforce plan.
The trainer and assessor will play the role of the Managing Director, and a group of classmates will play the role of the Operation manager, the HR manager and the Finance and Administration Manager.
The trainer and assessor will evaluate your performance during the meeting.
If you are absent from class, it is your responsibility to make alternative arrangements with the trainer and assessor to perform the Role-Play.
Duration: 15 minutes.
Before the Role-Play
• Prepare the workforce planning report and the workforce plan
• Identify key talking points to justify the workforce plan
• Identify the non-negotiable
• Prepare to negotiate and respond to objections
During the Role-Play
• Explain the aim of the meeting
• Summarise the content of the workforce plan and explain why it is needed
• Outline workforce requirements
• Explain how the workforce plan will support the achievement of organisational strategic and operational goals
• Provide an overview of the plan (scope, objectives, timelines, risks, budget etc…)
• Answer questions and provide information as required
• Gather feedback and inputs from the stakeholders attending the meeting
• Discuss any change/adjustment/refinement to the workforce plan
• Use language, format and style appropriate to the audience
• Use communication techniques such as summarising, rephrasing, questioning and active listening
• Use negotiation techniques such as compromising, accepting, competing and collaborating.
After the Role-Play
• Document the changes to the workforce plan agreed on with the stakeholders during the meeting.
• Finalise the workforce plan based on the changes agreed on with the stakeholders.
Please note that the trainer and assessor will check that the agreed-on changes have been applied to the workforce plan submitted with your assessment
Complete the following activities:
Task 2.1 Research workforce requirements
Review the JKL simulated business: Appendix 1 (Scenario) and Appendix 2 (Policies and Procedures); and undertake independent research to determine external factors that may affect the workforce supply.
Investigate:
• current data on staff turnover and demographics
• projections for future workforce needs
• external factors that may affect workforce supply
• relevant industrial relations information, such as modern awards, conditions, rights and responsibilities of workers and management
• relevant government policy.
Based on your findings and analysis, develop a workforce planning report (Template 1) including:
• Organisational needs, including current and the future situation concerning workforce capability
• A description of the organisation’s requirements for a skilled, diverse and cross – cultured workforce
• A summary of the data you have considered and analysis of the impact on organisational objectives, including:
o internal and external labour supply predictions
o external conditions, for example, government policy
o organisational future demand and predictive techniques used.
Use Template 1 and follow the instructions.
Template 1 -Workforce Planning Report
Introduction
Address the following (ALL points must be addressed)
• Provide background information about the organisation and the industry in which it operates.
• Indicate why the workforce analysis has been conducted (Example: refer to the current business situation, operational plans and/or strategy)
• Describe what documents, tools and techniques were used for the workforce analysis. (Example: the internal and external sources of information such as interview with staff, operational plans, SWOT or PESTLE analysis) etc.
(50-100 words)
Internal analysis
Summarise the following information based on your research and analysis:
• Staff turnover trends
• Staff demographics
• Current skills and knowledge of the workforce (skills and capacity audit)
• Workforce’s future demands
• Any critical issue/s identified during the analysis
(100-150 words)
External analysis
Address all the points below as instructed.
PESTLE Analysis
Perform a PESTLE analysis. Include at least two points of analysis for each PESTLE category. Be specific (for example, do not just mention tax policy under economic, specify what tax policy you refer to). Focus on factors that may impact the workforce.
PESTLE Analysis
Political
Economic
Social
Technology
Legal
Environmental
SWOT Analysis
Perform a SWOT analysis with a focus on factors and issues related to the workforce). The SWOT builds on the analysis undertaken for the internal and external business environment in this document. Identify at least 4 factors/section.
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Workforce supply
Based on your research, list 4-5 factors that may affect the workforce supply.
Evaluation
Evaluate the workforce requirements of the organisation based on your analysis; include 3-5 identified workforce requirements in your evaluation summary.
Requirements must include:
• Needs for downsising and/or hire new personnel
• Skills and capabilities needs
• Changes to workforce profile such as location, labour mix, education, age, diversity mix
• Any other requirements relevant to achieve organisational strategic goals
(80-120 words)
Task 2.2 Develop a workforce plan
Develop a workforce plan (Template 2) to include:
• Objectives for modification or retention of the workforce
• Strategies to address unacceptable turnover
• Objective required for retaining skilled labour
• Objectives for workforce diversity and cross-cultural management
• Strategies to source skilled labour
• Communication plan
• Risk analysis and contingency plan
Use Template 2 and follow the instructions.
Template 2 -Workforce Plan
Executive Summary
Outline of the content of the plan.
(40-80 words)
Workforce plan overview
Key points
Workforce requirements
Summary of workforce requirements as identified in the report in Task 2.1
Scope
For what organisational level is the workforce plan being developed? (e.g. unit, section, branch, division, group, agency, department, etc.) Will the workforce plan cover all workforce segments or critical job roles only? What are the main inclusions and exclusions of plan? (e.g. due to data constraints a workforce profile will be excluded)
(30-50 words)
Alignment
Outline how the workforce plan will support the achievement of organisational strategic and operational objectives.
(40-80 words)
Objectives
What is the outcome you are seeking to achieve from the implementation of the workforce plan? Define 6 objectives of the workforce plan.
Determine 2-KPIs/objective.
Makes sure to include objectives about:
• Addressing unacceptable turnover (if required)
• Retain skilled labour
• Workforce diversity and cross-cultural management
• Source skilled labour
• Being an employer of choice
• Succession planning Objectives KPIs
Outputs
What will the outputs of the project be? (Example: number of new hires, training outcomes, % of a diverse workforce, decrease in turnover). 4-5 outputs.
Budget
Total budget to implement the workforce plan.
Timeline
When will the implementation of the workforce plan begin? When is it scheduled to finish (and be integrated into business as usual)? What are the timeframes associated with key components of the plan?
Identify 4-5 milestones. Timeline Start:
Finish:
Milestone 1:
Milestone 2:
Milestone 3:
Milestone 4:
Milestone 5:
Responsibility
Identify 4-5 key roles and responsibilities associated with major tasks for the implementation of the workforce plan.
Responsibility may include:
• Operations
• Reporting
• Admin support
• HR advice
• Training and Development
• Issue resolution
• Risk management
• Monitor and control
Etc… Major Tasks Role/Responsibility
Monitoring and control
Summarise how the implementation of the workforce plan will be monitored and controlled. (40-80 words)
Gap Analysis
Compare the current workforce analysis with the workforce requirements and document four gaps that you have identified (Add rows if needed).
Current Required Gap
Example:
2 receptionists in X office Example:
3 receptionists in X office Example:
1 receptionist role to fill
Strategies to support the achievement of key objectives
Develop and summarise key strategies to support the achievement of critical objectives. (30-50 words/strategy)
Strategy
Summary
Unacceptable turnover
Retain skilled labour
Workforce diversity and cross-cultural management
Skilled labour
Employer of choice
Succession planning
Staffing action plan
Review the staffing information FY2020-21 in Appendix 1 and develop a staffing action plan for each position.
Note:
• Review the org chart
• Review the number of staff/branch under the operational plan
• Consider the total of staffing needs/position. Example: Branch Managers in Sydney+ Melbourne +Perth +Adelaide + Canberra. This is a high-level exercise.
• In your review, consider current staff, required and exiting to calculate the staffing targets. Targets= Required – Current – Exiting.
• Consider that all staff in the rental customer service division will be made redundant and there is a preference to advertise job vacancies internally
• When planning activities to achieve the staffing targets, consider activities such as:
o Promotion
o Redeployment (move)
o New Hire
o Secondment
• For each position specify how many new hires, how many promotions etc…
• Identify key considerations. For example: positions offered internally first, training needs for secondment, vacancies caused by promotions etc..
Position Staffing target for FY 2020-21 Activity
Senior manager
Branch manager
Line manager (service, sales)
Sales force
Rental customer service (redundant)
Mechanic
Considerations
Communication Matrix
Develop a communication matrix to facilitate stakeholder engagement and communication for implementation and post-implementation of the workforce plan. (6-8 stakeholder groups and/or individuals)
Stakeholder
(Groups and or individual) Communication
Need/s Communication
Medium/media Frequency
Example:
Board of director, Managing Director, Departmental managers, teams, offices, government agencies etc… Example:
Reporting, news, information and data, surveys/feedback etc… Example:
Email, meetings, newsletter, social media platform, mobile app etc.. Example:
Weekly, ad hoc, fortnightly, monthly etc..
Risk assessment and contingency planning
Identify two risks for each workforce objective and develop a risk treatment strategy for each risk. If the risk is extreme, outline a contingency plan for that risk.
Example:
Objective Risk
Description Likelihood Consequences Risk Evaluation Risk Treatment or Contingency Plan
(20-50 words)
All staff to become proficient in the use of new IT system. Different pre-existing IT knowledge and skills in the workforce L Mo H Organise additional training session for staff with lack of IT knowledge and skills. Explore the opportunity to run this session online.
Productivity loss when scheduling training time for staff. L Mo H Plan training to ensure minimum function in each department is covered to minimise disruptions. Schedule training on Friday afternoon.
Objective Risk
Description Likelihood Consequences Risk Evaluation Risk Treatment or Contingency Plan
(20-50 words)
• Likelihood: Almost certain (A) Likely (L) Moderate (M) Unlikely (U) Rare (R)
• Consequence: Insignificant (I) Minor (Mi) Moderate (Mo) Major (Ma) Catastrophic (C)
• Evaluation: Extreme (E) High (H) Medium (M)
Task 2.3 Present and obtain approval for the workforce plan
Schedule a time with the trainer and assessor in week 4 of class to present and discuss the workforce planning report and the workforce plan.
The meeting aims to obtain agreement and endorsement of the workforce plan.
The trainer and assessor will play the role of the Managing Director, and a group of classmates will play the role of the Operation manager, the HR manager and the Finance and Administration Manager.
The trainer and assessor will evaluate your performance during the meeting.
If you are absent from class, it is your responsibility to make alternative arrangements with the trainer and assessor to perform the Role-Play.
Duration: 15 minutes.
Before the Role-Play
• Prepare the workforce planning report and the workforce plan
• Identify key talking points to justify the workforce plan
• Identify the non-negotiable
• Prepare to negotiate and respond to objections
During the Role-Play
• Explain the aim of the meeting
• Summarise the content of the workforce plan and explain why it is needed
• Outline workforce requirements
• Explain how the workforce plan will support the achievement of organisational strategic and operational goals
• Provide an overview of the plan (scope, objectives, timelines, risks, budget etc…)
• Answer questions and provide information as required
• Gather feedback and inputs from the stakeholders attending the meeting
• Discuss any change/adjustment/refinement to the workforce plan
• Use language, format and style appropriate to the audience
• Use communication techniques such as summarising, rephrasing, questioning and active listening
• Use negotiation techniques such as compromising, accepting, competing and collaborating.
After the Role-Play
• Document the changes to the workforce plan agreed on with the stakeholders during the meeting.
• Finalise the workforce plan based on the changes agreed on with the stakeholders.
Use the space provided below to document the changes.
Please note that the trainer and assessor will check that the agreed-on changes have been applied to the workforce plan submitted with your assessment.
Appendix 1 – Scenario
JKL Industries is an Australian-owned company selling forklifts, small trucks and spare parts to industry, with a rental division leasing forklifts and small trucks.
The company’s head office is in Sydney and JKL has branches in Brisbane, Melbourne, Perth, Adelaide and Canberra.
After 12 years in business, focusing on forklifts and small trucks, JKL has been offered the sales rights to a range of medium and large trucks from an overseas supplier. This opportunity will provide JKL with an advantage in range over its competitors.
Sales results over the past five years have indicated strong growth in forklift and truck sales, which have averaged 10% sales growth per annum. The rental market has been in decline for the past three years due to the reduced costs of these vehicles and some taxation benefits for purchases of these vehicles.
Taking the sales opportunity will, however, entail some significant changes, including significant changes to company structure and operations. The company will reposition itself to focus solely on retail sales and service and exit the rentals market, in which forces such as competition and consumer choice reduce potential profitability.
The changes will necessarily impact workforce planning. The company will need to ensure it has the right people with the right skills at the right time to achieve objectives. JKL will need to closely monitor turnover and recruitment and implement strategies to retain skilled people and ensure critical roles are filled. In accordance with the organisation’s values, JKL intends (to the extent feasible) to recruit from within the company and up skill or re skill existing rentals employees who wish to remain with the company.
As an HR consultant, you have been contracted by JKL to review workforce requirements, develop and implement a workforce plan.
Mission
JKL Industries is an Australian owned company selling forklifts, small trucks and spare parts to industry. We deliver value to customers and investors through our highly trained, motivated, and expert workforce.
Vision
JKL Industries believes in developing and unlocking the potential of its people to allow the company to become the leading supplier of forklifts, small, medium and large trucks in Australia.
Company values
? Performance excellence
? Value for investors, customers and employees
? Personal and professional development
? Diversity
? Sustainability.
Organisational Chart
Business and strategic planning FY 2020-2021
Goals Strategic objectives Operational objectives
Provide value to investors and owners Increase overall profitability by 10% over next three years Reduce costs through negotiations with suppliers
Reduce costs through HR management efficiencies
Increase revenue by through providing increased customer value
Exit underperforming markets; JKL will withdraw from the rental market and close the rental division within the next 18 months
HR partners with business to help business achieve financial goals HR completes scan of external conditions and market/industry forces impacting competitiveness and capability development
Provide value to customers JKL will continue to sell and service forklifts and expand their market share by 7% within the next 12–18 months Provide quality customer service
JKL will expand existing branches to include the sale of medium and large trucks within 18 months
HR partners with business to help business meet customer needs HR partners with front line managers to help them meet the needs of customers through motivated, competent and well- equipped staff
Develop workforce potential Provide required training to meet workforce needs Deliver training to upskill rental employees
Recruit Conduct workforce planning through FY 2021–22
Complete implementation of staff planning for FY 2020–21
Conduct skills audits and needs analysis for all roles to be filled by recruitment strategy
Ensure all critical roles are filled to meet revenue targets
Become an Employer of Choice Provide personal development plans for all employees
Retain managerial talent through rewards, promotion and training
Provide best in industry programs incentives and HR services
Manage performance and adherence to organisational values Complete twice-yearly performance reviews
Communicate organisational values and code of conduct
Build culture of excellence: eliminate discrimination and promote diversity in workforce
Promote levels of diversity in workplace proportional to percentage of population
Continuously improve operations and management efficiency Monitor performance in all areas of strategy and operational efficiency Monitor management inputs, such as completion of reporting and coaching requirements
Monitor stock turns of forklifts, trucks, etc.
Monitor HR service delivery efficiency
Workforce Data
The following staff turnover and demographics data was gathered from the JKL accounting and payroll system and HR management system.
Current HR workforce turnover and demographic data
Turnover FY 2019–20 (29%)
Position Number exits Number staff Reasons for leaving
Senior manager 1 4 1. Retirement
2. Other opportunities
Branch manager 2 6 1. Retirement
2. Other opportunities
Line manager 3 18 1. Lack of opportunity
2. Unhealthy work culture
3. Retirement
Sales force and customer service 25 80 1. Lack of opportunity
2. Lack of recognition
3. Unhealthy work culture
Mechanic 10 32 1. Better opportunities elsewhere
2. Lack of recognition
3. Unhealthy work culture
Demographics FY 2019–20
Position Number Number women Number Aboriginal or Torres Strait Islander
Senior manager 4 0 0
Branch manager 6 0 0
Line manager 12 2 0
Sales force and customer service 80 70 0
Mechanic 32 3 0
Staffing Information FY 2020-21
Role Sydney Melbourne Brisbane Perth Adelaide Canberra
Senior manager Current: 4
Required: 4
Exiting: 1 – – – – –
Branch manager Current: 1
Required: 1
Exiting: 0 Current: 1
Required: 1
Exiting: 0 Current: 1
Required: 1
Exiting: 1 Current: 1
Required: 1
Exiting: 0 Current: 1
Required: 1
Exiting: 0 Current: 1
Required: 1
Exiting: 1
Line manager
(service, sales) Current: 2
Required: 2
Exiting: 1 Current: 2
Required: 2
Exiting: 0 Current: 2
Required: 2
Exiting: 1 Current: 2
Required: 2
Exiting:1 Current: 2
Required: 2
Exiting: 0 Current: 2
Required: 2
Exiting: 0
Sales force Current: 10
Required: 15
Exiting: 3 Current: 9
Required: 15
Exiting: 3 Current: 9
Required: 15
Exiting: 2 Current: 9
Required: 13
Exiting: 3 Current: 9
Required: 13
Exiting: 3 Current: 9
Required: 13
Exiting: 3
Rental customer service (redundant) Current: 5
Required: 0
Exiting: 1 Current: 4
Required: 0
Exiting: 1 Current: 4
Required: 0
Exiting: 1 Current: 4
Required: 0
Exiting: 2 Current: 4
Required: 0
Exiting: 1 Current: 4
Required: 0
Exiting: 2
Mechanic Current: 7
Required: 8
Exiting: 2 Current: 5
Required: 6
Exiting: 2 Current: 5
Required: 6
Exiting: 1 Current: 5
Required: 6
Exiting: 2 Current: 5
Required: 6
Exiting: 1 Current: 5
Required: 6
Exiting: 2
Mechanic’s apprentice 0 1 1 1 0 0
Workforce requirements (historical data and projected data)
Sales force
The sales force is critical for achieving revenue targets. Revenue is closely correlated with average staff levels at each location (R2= 0.9782). Future staff requirements (x) have been calculated by substitution into the regression equation (y=0.3717x +0.2175)
Financial year Numbers of sales/customer service personnel Revenue
($ millions)
FY 2015–16 80 (5 locations) 32
FY 2016–17 85 (5 locations) 34
FY 2017–18 80 (5 locations) 32
FY 2018–19 80 36
FY 2019–20 78 29
FY 2020–21 84 required to support projected revenue across 6 locations 32*
FY 2021–22 90 required 35*
FY 2022–23 102 required 40*
*Projected sales
Mechanics
As the business expands, more mechanics will be needed to satisfy demand.
Financial year Numbers mechanics required
FY 2015–16 25
FY 2016–17 30
FY 2017–18 30
FY 2018–19 30
FY 2019–20 32
FY 2020–21 38*
FY 2021–22 42*
FY 2022–23 45*
*Projected requirements
The business has red-flagged sourcing skilled mechanics with advanced IT and technical skills as a potential risk area for the business.
Operational Plan
JKL intends to implement operational plans to realise strategic objectives. Key aspects to operations include human resources and workforce planning, performance management, physical and financial resources and workflow.
Human resources
The organisation is currently using a HR business partner model with a human resources officer aligned to each of the three key business areas: sales, fleet rentals, and service.
JKL employees over 190 personnel in the following categories (see organisation chart).
The Managing Director reports to a Board of Directors and is based in the Sydney head office, along with the Operations Manager, HR Department and the Finance and Administration team. The HR Manager reports to the Operations Manager and heads up the HR centers of excellence that include recruitment, learning and development, and employee relations and services. At each of the state-based sites there is a branch office consisting of an office building, warehouse, service department and sales office. The HR officers (Business Partners) report to both the HR Manager at head office and their respective managers in the branches.
A summary of human resources at each location in FY 2019–20 appears below:
Sydney head office
Personnel:
? 30 full-time and casual sales and customer service people (10 sales consultants; 5 rental consultants; 5 mechanics; 3 apprentices, 3 HR officers; 3 administrative assistants
? accounts manager and 2 accountants
? senior management team (3) + 1 branch manager (operations manager, HR manager, finance and administration manager)
? CEO and managing directors.
Branches
Each branch employs the following personnel:
? 30 full-time and casual sales and customer service people (9 sales consultants; 4 rental consultants; 5 mechanics; 3 apprentices, 3 HR officers; 3 administrative assistants
? branch manager.
Office requirements
Sydney Head office
? size: 15,000 square metres (~70% space available for sales and rentals; ~25 available for servicing)
? large mezzanine office space (occupied by Senior Management Team)
? loading bay with large capacity.
Branches
? average size: 12,000 square metres (~70% space available for sales and rentals; ~25 available for servicing)
? large mezzanine open-plan office space with separate access (was previously rented out to a telemarketing company)
? loading bay with large capacity.
Operating capital requirements
JKL requires approximately $13 million in working capital to sustain the business and ensure it meets all opening and ongoing financial obligations.
Operational expenses
Wages, salaries $6,000,000
Consultancy fees $150,000
Communication expenses $120,000
Marketing $2,400,000
Premises expenses $3,000,000
Insurance $356,000
Depreciation and amortisation $540,000
Office supplies $180,000
Training $180,000
Total expenses $12,926,000
Insurance requirements
JKL will have to incur costs for business liability insurance. The estimated cost for this requirement is $356,000 per year.
Operational workflow
Sales
1. Negotiate with suppliers.
2. Receive and warehouse products.
3. Provide service and information to customers.
4. Receive payment.
5. Arrange delivery of items (if required).
Rentals
1. Conduct market research to determine needs.
2. Negotiate with suppliers.
3. Receive and warehouse rental products.
4. Provide service and information to rental customers.
5. Receive payment.
6. Arrange delivery of items (if required).
Service
1. Conduct market research to determine needs.
2. Negotiate with suppliers.
3. Receive and warehouse service supplies.
4. Provide service and information to service customers.
5. Receive payment.
JKL accepts cash, EFTPOS and major credit cards. Credit terms are available for trades.
Operating hours
JKL operates Monday to Friday from 9 am to 5 pm. JKL will be operational year round except federal and state holidays (as they apply to each branch).
JKL risk management action plan
Risk Risk likelihood Risk impact Controls Monitoring Timelines Responsible
JKL fails to meet revenue goals M H Tightly plan and manage skills and capability Scorecard results
Financial statements Monthly and quarterly reporting Managers at each level
JKL fails to expand market share M H Manage performance and adherence to organisational values
Regular training Revenue figures
Customer Monthly and quarterly reporting Managers at each level
JKL fails to recruit and retain staff in areas of critical need (management, salesforce, mechanics)
M H Manage performance and adherence to organisational values
Take steps to become an Employer of Choice (steps TBD)
Plan strategic approach to workforce and staffing for three years in alignment with organisational goals
Consult to complete shorter term (yearly staffing plans in business partnership with relevant managers in alignment with workforce strategic planning) HRMS statistics:
? training numbers
? recruitment figures
? turnover
Internal climate survey results Monthly and quarterly reporting Managers at each level
JKL fails to comply with legislative requirements L H Manage performance and adherence to organisational values
Regular review of legislative environment and relevant policies HRMS statistics:
? demographics
Audit results
Internal climate survey results Monthly and quarterly reporting Managers at each level
Individual staff and contractors
Appendix 2 – Policies and Procedures
Risk management strategy and plan
Introduction
JKL recognises that risk management is an essential component of good management practice and is committed to the proactive management of risks across the organisation. The strategy is designed to:
? identify, evaluate, control and manage risks, including environmental risks
? ensure potential threats and opportunities are identified and managed
? inform store management, partners and staff members about their roles, responsibilities and reporting procedures with regards to risk management
? ensure risk management is an integral part of planning at all levels of the organisation.
Guiding principles
JKL is committed to achieving its vision, business objectives and quality objectives. This will be achieved through the proactive management of risk at all levels of the organisation. JKL acknowledges that embracing innovative ideas and practices carries with it risks, but that these are identifiable and measurable and therefore capable of being subject to realistic risk mitigation processes.
Responsibility and authority
Store managers/partners have responsibility for ensuring that risk management is in place.
Managers/partners have the responsibility of reviewing the Risk Action Plan (outlined in the table at the end of this document) on a monthly basis.
Staff support and implement policies approved by the partners.
Key risk indicators will be identified, closely monitored and action taken where necessary, by all employees of JKL.
Risk management framework
This framework encompasses a number of elements that together facilitate an effective and efficient operation, enabling JKL to respond to a variety of operational, financial, commercial and strategic risks. These elements include:
? Policies and procedures: A series of policies underpin the internal control process.
? Reporting: Decisions to rectify problems are made at regular meetings of the partners and management.
? Business planning and budgeting: The business planning and budgeting process is used to set objectives, agree on action plans and allocate resources. Progress towards meeting business plan objectives is monitored regularly by the partners. Contingency planning is undertaken as required.
? Risk management review: The partners are required to report monthly.
? External audit: The final audit of financial statements is controlled by an external chartered accountant who provides feedback to the partners.
Definitions
Risks are identified on a scale of likelihood of occurring in the next 12 months and assigned an impact or consequence of the risk as high, medium or low. High includes either a significant shortfall of around 40% in achieving budget or a significant reduction in ability to function in such a way as to achieve company goals. Medium includes either a shortfall of budget of between 10% and 20% or some reduction in function, and low indicates minor reductions in achieving budget or minimal reduction in performance.
JKL policies and procedures
JKL has a number of policies and procedures to support its core values and to ensure compliance with legislative requirements.
Code of conduct
JKL Industries acknowledges its role as a responsible corporate citizen. JKL’s success will result not simply from satisfying specific equipment needs for a quality product at reasonable prices, but from conducting its business with integrity and in accordance with the core values of the organisation.
Employees and officers of JKL are expected to:
? respect and support the core values of the organisation:
? performance excellence
? value for investors, customers and employees
? personal and professional development
? diversity
? sustainability
? respect others and treat others (colleagues, managers, reports, clients, customers and organisational stakeholders) with fairness
? act in accordance with relevant legislation, standards and industry codes of practice
? act honestly to protect the reputation of JKL; avoid the fact or appearance of conflict of interest
? protect the privacy of others in accordance with organisational privacy and recordkeeping policies.
Legislative requirements
It is company policy to comply in all respects with local, state/territory, and federal government legislation. The relevant legislation that needs to be complied with includes:
? Competition and Consumer Act 2010
? Disability Discrimination Act 1992
? Workplace Gender Equality Act 2012 (Cwth)
? Fair Work Act 2009
? Freedom of Information Act 1982
? Privacy Act 1988
? Racial Discrimination Act 1975
? Safety, Rehabilitation and Compensation Act 1988
? Sex Discrimination Act 1984
? state and territory health and safety legislation.
JKL’s policy of compliance with legislation requires each employee to understand the legislation relevant to their position.
Managers and employees of JKL are expected to conduct their operations in a manner consistent with all relevant legislation.
Relevant legislation is available for reference through senior management, HR or via access to the internet. State legislation and summary notes are accessed on state government websites.
A guide to accessing federal and state legislation, court decisions, key national and state bodies and research tools is available at:
? Parliament of Australia, ‘Key internet links on Australian law’, viewed March 2014, http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/
Parliamentary_Library/Browse_by_Topic/Auslaw .
Health, safety and rehabilitation policy
The purpose of this policy is to state the organisation’s commitment to reducing and managing health and safety risks, and delivering workers’ compensation and rehabilitation and first aid training.
This policy applies to all officers, employees and contractors of JKL.
Applicable legislation includes:
? Safety, Rehabilitation and Compensation Act 1988 (Cwlth)
? Work Health and Safety Act 2011 (NSW)
? state health and safety Acts that apply to each branch (check your state’s legislation)
? Workers’ Compensation Act 1987 (NSW)
? Workplace Injury Management and Workers’ Compensation Act 1988 (NSW).
The JKL health, safety and rehabilitation policy are displayed in all work locations. JKL’s commitment to the work health and safety is further detailed as part of the JKL Work Health and Safety Management Standards.
Workplace harassment, victimisation and bullying policy
The purpose of this policy is to underscore the organisation’s commitment to the elimination of all forms of bullying and harassment in the workplace. All employees have the right to conduct their work within a fair, supportive, high-performance environment.
Harassment, victimisation and bullying in the workplace are illegal and such actions are not tolerated by JKL.
Staff members found to be harassing or bullying other members of staff or customers will face disciplinary action ranging from counselling and performance management to summary dismissal.
This policy applies to all officers, employees and contractors of JKL.
Relevant legislation may include, but is not limited to:
? Disability Discrimination Act 1992
? Workplace Gender Equality Act 2012 (Cwth)
? Racial Discrimination Act 1975
? Sex Discrimination Act 1984
? Anti-Discrimination Act 1977 (NSW).
Anti-discrimination and equal opportunity policy
The purpose of this policy is to underscore the organisation’s commitment to the fair treatment of all personnel and customers.
JKL Industries values the diversity of its team, clients and communities and respects the rights of individuals and groups to operate in an environment free of discrimination.
Access and equity (diversity and anti-discrimination) is fundamental to the operations of JKL. It is embedded in policies, practices and forward planning.
JKL recognises the importance of diversity in achieving our vision.
JKL understands the business environment and actively assists customers to reach their optimum potential. Our primary objective is to be solution-oriented and focused on customer needs. JKL recognises that valuing diversity is pivotal to achieving its vision.
A welcoming, supportive environment will be provided leading to positive learning and employment, and individuals having the opportunity to reach their optimum potential.
At JKL, anyone engaged in employment or the provision or receipt of training and/or services has the right to operate in an environment that is free from discrimination on the grounds of:
age; breastfeeding; disability; industrial activity; lawful sexual activity; marital status; physical features; political belief or activity; pregnancy; race; religious belief or activity; sex; gender identity; sexual orientation; parental or carer status; employment activity; or personal association with any individuals with these characteristics.
Procedures are in place for handling any grievances including complaints of discrimination, unfair treatment or harassment. Complaints will be taken seriously and every effort will be made to resolve them quickly, impartially, empathically and with appropriate confidentiality. Victimisation of complainant/s and witness/es is illegal. Complaints may also be lodged with a relevant government agency or regulatory body.
This policy applies to all officers, employees and contractors of JKL.
Relevant legislation may include, but is not limited to:
? Disability Discrimination Act 1992
? Workplace Gender Equality Act 2012 (Cwth)
? Racial Discrimination Act 1975
? Sex Discrimination Act 1984
? Anti-Discrimination Act 1977 (NSW).
JKL is committed to upholding affirmative action, equal opportunity and anti-discrimination legislation. This legislation is detailed at:
? ‘Legislation’, Australian Human Rights and Equal Opportunities Commission, viewed March 2014, http://www.humanrights.gov.au/our-work/legal/
legislation .
Privacy Policy
The purpose of this policy is to outline JKL’s commitment to protecting the right to privacy of both employees and customers.
Customer information is treated under the following rules.
Collection Organisations 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 the organisation what personal information it holds about them.
Use Personal information may not be collected unless it is necessary for an organisation’s activities and must only be used for the purpose it was collected.
Data
quality Organisations must take steps to ensure that the personal information they collect is accurate, complete and up-to-date.
Data
security An organisation must take reasonable steps to protect the personal information it holds from misuse and loss and from unauthorised access, modification or disclosure.
Openness An organisation must have a policy document outlining its information handling practices and make this available to anyone who asks.
Access and correction Generally, an organisation must give an individual access to personal information it holds about the individual on request.
Identifiers Generally, an organisation must not adopt, use or disclose an identifier that has been assigned by a Commonwealth government agency.
Anonymity Organisations must give people the option to interact anonymously whenever it is lawful and practicable to do so
Transborder
data flows An organisation can only transfer personal information to a recipient in a foreign country in circumstances where the information will have appropriate protection.
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 (unless a public interest exception applies).
JKL takes care to respect employees to privacy and fully complies with our obligations under relevant legislation. Employee records are exempt from the Privacy Act. Records include:
? employee records and personnel files
? referee reports
? workplace surveillance and monitoring.
Although such records are exempt from the Privacy Act, JKL commits to protecting the privacy of employees through:
? providing access to own records where available or practicable for correction
? undertaking not to pass on data to others or external parties except for the strict purposes of undertaking JKL business or without express permission.
This policy applies to all officers, employees and contractors of JKL.
Relevant legislation may include, but is not limited to:
? Privacy Act 1988
? Privacy Amendment (Private Sector) Act 2000.
Recordkeeping Policy
The purpose of this policy is to outline the organisation’s approach to recordkeeping.
At JKL, 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 to meets all of the operational and strategic needs of JKL
? documenting the system (see procedures)
? training personnel to create and store records
? setting standards for recordkeeping and monitoring the use of systems
? ensuring all legislative requirements are met, including for retention periods.
JKL adheres to the Australian and international standard for recordkeeping, AS ISO 15489: 2002 Records Management.
This policy applies to all officers, employees and contractors of JKL.
Relevant legislation may include, but is not limited to:
? Privacy Act 1988
? anti-discrimination legislation.
Recordkeeping procedures
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 on your C: drive (i.e. do not save work only to your computer, rather than to the network) unless absolutely necessary. Company data should be stored in the appropriate server drive. Unlike the servers which are backed up automatically, data on your own computer 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 remote access to server files away from the office.
When documents are completed, they should be saved to the appropriate ‘completed work’ folder in your department.
To ensure privacy, all employee records and information gathered from employees must only be used for the stated purpose of collection and must be kept on a secure HRMS server.
Filenames
Filename should include authors last name, title of report (or abbreviated title of report), and date of submission.
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.
Vocational education and training, apprenticeships and traineeships policy
The purpose of this policy is to underscore JKL’s commitment to developing workforce capability and developing its people.
JKL is committed to providing young and new graduates in gaining employment in the industry. Apprentices and trainees are rostered on each shift with at least one vocationally competent person who supervises the apprentice/trainee’s work and performance of duties.
JKL directs all clients to the relevant guide to apprenticeships and traineeships and the relevant government websites.
? Australian Apprenticeships, viewed March 2014, http://www.australianapprenticeships.gov.au/ .
This policy applies to all officers, employees and contractors of JKL.
Performance management policy
The purpose of this policy is to underscore JKL’s commitment to monitoring performance, developing workforce capability and developing its people.
Performance reviews should be held twice yearly by managers. Performance should be monitored against agreed KPIs and feedback provided on a regular basis.
This policy applies to all officers, employees and contractors of JKL.
Relevant legislation may include, but is not limited to:
? Privacy Act 1988
? anti-discrimination legislation
? equal employment opportunity legislation.