BSBMGT517 Manage Operational Plan

ASSESSMENT

{`
    Unit description:
    Cluster Management 1
    Unit of Competency BSBMGT517 - Manage Operational Plan
    Qualification Title BSB51918 Diploma of Leadership and Management
    Training Package BSB
    Assessment Tool Case Study, Role Play, Project and Written Exam
    University of Canterbury
    `}

Assessment description:

  • This assessment is designed to assess how you manage the work of others and operate within the parameters of a broader strategic and/or business plan and management of systems and procedures that are to be developed and implemented to facilitate the organisation’s operational plan at a strategic level including performance, knowledge and skills that you have acquired throughout the unit.
  • To achieve competency in this unit you must complete task 1and 2.
  • All tasks must be submitted together.
  • Task 1: you will answer a series of question, complete a project work and perform a role play to demonstrate your knowledge and understanding about the unit including development of operational plan for resource requirement and efficient and effective work practices to monitor and review operational performance within parameters of broader strategic and/or business plan including productivity and profitability.
  • Task 2: you are required to demonstrate your knowledge and understanding about the unit including planning and managing resource acquisition and identify areas of under-performance, recommend solutions and take prompt action to rectify the situation.

Task 1 – Written Exam, Project and Role Play

Objective:

To provide you with an opportunity to demonstrate the required performance evidence and determine that you have the required skill and knowledge to develop and monitor implementation of the operational plan to provide efficient and effective workplace practices within the organisation’s productivity and profitability plans.

Requirement:

Referring to the Case Study Scenario and based on your research of various resources such as Internet, you are required to demonstrate your ability to facilitate development of operational plan for resource requirement and efficient and effective work practices and to monitor and review operational performance within parameters of broader strategic and/or business plan including productivity and profitability including developing and implementing systems and procedures.

Part A

Written Exam

Task Summary:

Referring to the Case Study Scenario 1, answer each question in as much detail as possible within 150 to 250 words, to demonstrate your knowledge and understanding of development of operational plan by describing models and methods of operational plan, performance indicators and budgeting process including outlining policies, practices and procedures.

Your answers should be based on the research you have conducted using various resources such as internet and information contained in the scenario and what you have learned in this study unit

Case Study Scenario 1 :

Superseeds is a small organization that has a core business of selling garden plant seeds by mail order. Orders are received by telephone or through the business web site. Supersedes competes with all businesses that sell the same products either through mail order or through shop front retail outlets. This includes large companies, nurseries and seed wholesalers.

Superseeds customers are mostly from small rural communities where there are few or no shop front retail outlets supplying seeds. Supersedes maintains a diverse range of seed varieties to provide customers with a wide selection.

A key customer service performance objective is to dispatch product within one working day of receiving the order. Orders are prepared and sent to the Post Office by 1:00 pm each day to ensure that overnight dispatch occurs.

Superseeds has a single CEO who has the responsibility to manage the overall business. There are two supervisors who report directly to the CEO. One supervisor manages orders and dispatch, while the other supervisor manages marketing, seed stock supplies and determines the product range that will be available for sale. At peak periods, there are three people working in dispatch, but in non-peak times there are only two people. There is one person working solely in marketing and sales catalogue production. The business manager is responsible for all other aspects of the business. Outsourcing is used for accounting, web page development and management, and recruitment.

Mission statement

Superseeds is committed to:

  • providing high quality garden seed products
  • providing a prompt mail order service
  • offering a diverse range of garden seeds
  • providing personalized service
  • employing enthusiastic staff
  • adopting sustainable work practices
  • undertaking continuous improvement processes.

Strategic objectives

Over the five year period from 2020 -2025 Superseeds has the following strategic objectives:

  • Consolidate and expand its niche position in the garden seed retail market for small rural communities
  • Improve operational efficiency
  • Increase cash reserves to better manage peaks and troughs in demand.

Business objectives

Superseeds will focus on the following business goals in 2020 to support its five (5) year strategic plan:

1 Financial stability:

1.1 Increase sales income by 10% annually

1.2 Increase profit levels from 10% of sales income to 15% of sales income

1.3 Invest 10% of current profit into supporting business plan initiatives

2 Market position:

2.1 Expand product sales into one new rural region

2.2 Improve telephone and on-line ordering procedures to provide improved levels of customer service

2.3 Promote seed products on a seasonal basis to existing customers

3 Human resources:

3.1 Create greater flexibility in working hours and work location

3.2 Increase trading hours to accommodate after hour and weekend sales

4 Product range:

4.1 Undertake research to better match sales catalogue to region, climate and season

4.2 Remove products from range that make a net loss

Note: As this is a simulated activity you are allowed to make up additional information to complete your resource proposal and operational plan.

1. Operational planning is a yearly process routinely used in businesses to articulate their goals for the year”

  1. What is an operational plan and what is its purpose?
  2. Outline the information that is usually included in an Operational Plan.
  3. Explain the role of an operational plan in achieving the organisation’s objectives.
  4. List three legislation or regulation that will directly affect an operational plan of Superseeds.
  5. Give five examples of policies, practices, and procedures that may directly relate to the operational plan of Superseeds.
  6. State an operational goal of Superseeds aligned to the strategic objective provided in the case study.
  7. Identify at least one method and one model for operational plan.
  8. Outline the typical process for developing an operational plan that may be followed by Superseeds.

2. ”Key performance indicators act as benchmarks against which organizational goals and performance can be measured.”

  1. Define and explain the purpose of key performance indicators.
  2. Discuss four approaches for developing key performance indicators to meet business objectives that can be employed by Superseeds.
  3. Outline and list the steps of using KPI to measure organizational performance.
  4. Identify two performance criteria of Superseeds

3. “Budget a powerful tool for ensuring the success of business, is essentially the numerical representation of the annual operating plan”

  1. Explain the purpose of a budget.
  2. List what external factors and financial information is to be taken into considerations during budgeting processes to monitor and review profit and productivity performance.
  3. List the steps for analysing and interpreting budget.
  4. Outline a standard budgeting process that could be applied by Superseeds.

Part 2

Project

Task Summary:

Referring to the Case Study Scenario 1, answer each question in as much detail as possible within 150 to 250 words, to demonstrate your knowledge and understanding of development of operational plan, monitor and review operational performance systems, analyse and interpret budget, develop and implement system to record and document performance.

Your answers should be based on the research you have conducted using various resources such as internet and information contained in the scenario and what you have learned in this study unit

For the Strategic Objective : Expand its niche position in the garden seed retail market for small rural communities, create an operational Plan for Superseeds:

Operational Plan:

Strategies

(approaches taken to achieve the goal)

Actions/Tasks

(what you need to do to achieve goal)

Details of resources required to achieve actions

Timelines (when you need to complete the tasks)

Person responsible

Key Performance Indicator

Process for Monitoring

Budget

ContingencyPlans

1. Effective performance managementcreates a harmonious and productive workplace which is beneficial for both employees and employers.

  1. What is a performance management system?
  2. List the steps to establish a quality management system
  3. Give examples of performance standards that an organisation may use.
  4. Why is it important to develop monitor and review performance system and processes to assess progress in achieving profit and productivity plans and targets?

2. It important to regularly monitor productivity and measure the efficiency of your operations.

  1. Why is it important to note variations in “actual to budgeted” financial performance.
  2. Based on mathematical information provided in the Appendix 1:
    1. Calculate Profitability Index.
    2. Calculate the number of employee required if business manager decided to build a new web page in-house.
    3. Calculate at least 3 Performance benchmark.

3. Every business is impacted by events, and a poor response to those events could, in extreme cases, result in the loss of the business.

  1. What is the purpose of a contingency plan?
  2. What sort of risks are likely to happen in an organisation?
  3. What may be the impact of these risks occurring?
  4. Identify three risks that are likely to be encountered by employees of Superseeds. Detail the possible impact of such events with contingency plans which might be implemented.

4. Accurate documentation is critical to good management and engaging employees.

  1. Why is it important to develop and implement systems to ensure that procedures and records associated with performance management are manged in accordance with organizational requirements?
  2. List the performance-related documentation that you need to collect and record?
  3. When you process performance-related information, why it is important to note acceptable performance limits, changes to measurements, and whether the quality level was correct?

Part 3

Role Play

Task Summary

Role play a discussion in which you act as the Supervisor and another individual acts as a CEO (Chief Executive Officer) and have a discussion about making measureable changes to reduce cost and increase effectiveness by communicating effectively and explain the plan and supporting information, seeking approval, negotiate variation and engage work teams.

Referring to the case scenario and reading the following information carefully perform a role play with a fellow student.

Efficient management of resources is often the greatest organizational challenge. Lack of visibility into resource constraints can be a major roadblock to completing work on-time and under budget. Hence setting the right expectations and accurately communicate what the organization can and cannot complete given resources constraints, dramatically increase the efficiency of the planning process.

There is a widespread view that if a plan is conceived without proper consultation with stakeholders then it has far less chance of successful implementation. There is a clear need for anyone responsible for the formulation of a plan to consult with all persons who will be affected by the plan. In fact there are significant benefits associated with implementing and maintaining a culture of consultation and cooperation in the workplace. Businesses working to best practice recognise the benefits of regularly seeking opinions and views from employees, whether that be through consultation with individuals or groups.

The ROLE PLAY is to be performed by working in pairs:

Get into pairs. Label yourselves Person A and Person B.

Person A : The Supervisor

Person B : Chief Executive Officer

Conduct a discussion with a class-member where you will present your development and monitoring processes to facilitate operational plan including developing and implementing effective consultation by:

1. Resource can mean many things when you are preparing an operational plan

  1. Outline what strategies the organization will use to research, analyses and document resource requirements for the development of an operational plan.
  2. List five relevant people who may be involved in the development of the operational plan of the organization.
  3. Identify four sources of information which might be referred to in relation to proposals for resource requirements as well four sources from which specialist advice may be sought.
  4. List five types of information in relation to development and presentation of proposals for resource requirements.
  5. Identify four strategies for resource management that will support the team to effectively, economically and safely use resources.

2. Best practice is about developing and implementing effective consultation mechanisms which encourage cooperation and engagement of employees and management.

  1. Explain why it is necessary to develop and/or implement consultation process as an integral part of the operating planning process.
  2. Specify five ways of carrying out a consultation process in the organization.
  3. List the relevant parties from whom would you need to gain agreement for the approval of the operational plan, and once approved how this information would be provided to work teams.
  4. List at least three types of negotiation that the organization may use including at least five strategies for negotiation that could be used to achieve goals. Additionally Identify designated person or groups within the organization you would need to gain agreement and or endorsement for variations to operational plans.

Task 2 – Written Exam and Project

Objective:

To provide you with an opportunity to demonstrate the required performance evidence and determine that you have the required skill and knowledge to facilitate development of operational plan for resource requirement and identify areas of under-performance, recommend solutions and take prompt action to rectify the situation.

Requirement:

Referring to the given below Case Study Scenario 2 and based on your research of various resources such as internet, your response should demonstrate planning and managing resource acquisition for developing and implementing strategies to achieve the operational plan within the organisation’s policies, practices and procedures including recruiting, inducting and developing personnel, protecting intellectual property and acquiring physical resources and services and monitoring and reviewing underperformance.

Task Summary:

Read the case study scenario 1 and answer each question in as much detail as possible within 150 to 250 words, to demonstrate your knowledge and understanding, developing and implementing strategies for recruiting and protecting intellectual property and acquiring physical resources and services, including identifying and recommending solutions for under performance and coaching and mentoring by monitoring and reviewing operational performance.

Your answers should be based on the research you have conducted using various resources such as internet and information contained in the scenario and what you have learned in this study unit.

Case Study Scenario 2: Responding strategically to changes in Healthcare

The Chief Financial Officer at a large, complex healthcare organization approached Wellesley Partners while preparing for an annual planning retreat. Based on the hospital’s goal to reduce cost of services and increase effectiveness and efficacy of care, the CFO was focused on improving the ability of his organization to enable organization-wide success.

Added to the goals for change, three major barriers presented themselves in addressing these goals.

  • Lack of a long-term strategy
  • Management is unsure that the team has the right skill set
  • Lack of teamwork and collaboration

Wellesley Partners worked with the Finance management team to build a strategy with measurable goals and a roadmap while improving teamwork within the department. Execution of the plan will lead to improved efficiency within the department and improved teamwork.

The Wellesley Partners process revolves around aligning teams to clear values, effective processes and roles that are aligned with organization-wide goals. In this case, Wellesley Partners focused on two of the three major barriers: lack of strategy and lack of teamwork. The skill set required would be based on strategy.

Wellesley Partners created a program consisting of the following component:

Joint Planning: Workshop

The workshop will address team functioning, strategic context, implications and challenges as well as concrete action planning. Over the course of the day, the team will accomplish the following:

  • Identify tactics to improve as a team
  • Review the high level challenges facing Finance for the following 2-3 years
  • Identify implications and responses to these challenges
  • Define next steps

In this case not only will the team feel as though they have a plan to move forward with, but they will also be actively engaged in creating the plan, which will lead to improved motivation, teamwork and commitment to the success of upcoming initiatives.

https://wellesleypartners.com/consulting-services/case-study-strategic-planning/

1. “Attracting the right calibre of people is essential for the success of any organisation in reaching their strategic and operational goals.”

  1. Why is it important to develop and implement strategies to ensure that employees are recruited and/or inducted within the organisation’s human resources management policies, practices and procedures
  2. List key areas, functions or topics that an organisation’s Human Resource policies and procedures should address.
  3. Identify four recruitment process and HR polices that the Healthcare Organization must ensure following during recruitment.
  4. Identify and list at least two advantages and disadvantages of outsourcing recruitment.
  5. What is purpose of induction and what information should be included in induction.
  6. What strategies could you use to ensure team members are clear about their roles and responsibilities as well as the requirements of the operational plan?

2. “Requirements and responsibilities for intellectual property rights is an important part of the business environment, an organisations are wise to take steps to protect their own intellectual property.”

  1. Explain how you would incorporate requirements for intellectual property rights and responsibilities within an organisation in recruitment and acquisition of resources and services.
  2. Identify at least three resources and services that may have intellectual property rights and responsibilities attached to them. What measures do you need to take in order to prevent non-compliance with these?
  3. Give three different examples of intellectual property and explain how would enforce your rights for each one.

3. Read the following information carefully:

Speed of service is measured in average time to resolve a customer enquiry. The target is <10 minutes. Currently, the average time to complete an enquiry is 20 minutes. In addition a number of risks has been identified that needs immediate action:

The training program has not been adequate to cover required skills and knowledge. Training has been too short and insufficient to be effective.

Staff are unable to perform roles due to lack of support in job roles and ongoing training, coaching.

Thus a gap has been identified between accepted and desired performance. Based on information that you have received when you spoke to staff, there seems to be a mixture of performance and lack of skills with staff to be the problem.”

  1. How would you handle any under-performance issues in regards to the skills and the level of performance?
  2. Identify the factors that affects output and quality of performance in an organization.
  3. What are the three major barriers presented in addressing the goal ‘reduce cost of services and increase effectiveness and efficacy of care’ for the health care organization?
  4. What steps were recommended by Wellesley Partners to support the team to achieve the goal?
  5. What is Continuous Improvement? Identify three benefits of adopting continuous improvement to address under performance.
  6. Define an effective mentoring or coaching relationship.
  7. Referring to the Principles of coaching underperforming employees in Appendix 2, Create a coaching plan to address under performance and support an individuals to achieve performance target.(you may use or modify the template provided in the Appendix 2)

4. “While there is no set rule for defining resource acquisition strategies, most organizations will have policies and procedures that govern the way resources are obtained?

  1. List two strategies which might be used to ensure that physical resources and services are acquired in accordance with the organizational policies, practices and procedures.
  2. What is a supplier relationship and what are some of the factors that influence an organization’s choice of supplier?
  3. Why is it important to consider the relationship costs when you build relationships with suppliers?
  4. What impact does Just In Time and Total Quality Management had on organizations in supplier relationships?
    Who are inter suppliers and what are the barriers to maintaining effective supplier relationships:

Appendix 1:

Resourcing strategy

After consulting with the management team it was determined:

  • 3 Additional employees will be needed to manage increased customers
  • A new delivery vehicle is needed to dispatch order
  • An new e-commerce website will take 5 days to develop.
  • Office space will need to be reconfigured.

The following operational costs are associated with business strategy.

Costs: Initial Investment

Resources

Costs

Plant and equipment

Delivery vehicle = $40,000

Promotional costs

$30,000

Website developers

$120,000

Recruitment costs

$30,000

Staff training

Employee training $3,000 per staff member = $9000

Office reconfiguration

$60,000

Total

$289,000

Profitability Index:

Profitability index (PI) =

Present value (PV) of future cash flows

Present value (PV) of initial investment

PI>1 indicates project should be undertaken

Present value of future cash flows

$400,000

Present value of initial investment

$289,000

How Many Employees Does a Project Need?

Man days (MD) is a figure that measures the effort of a project. This key figure indicates the number of days a person would need to complete the respective task. If you know this and the project duration, it is very easy to calculate how many employees you have to use in this case:

Number of Employees = Effort in man days / Time period in working days

Assumptions: Estimated 15 MD for the creation of the new website that requires five working days

Garden supplies retailing – Performance Benchmark

Businesses in this industry sell garden supplies, including plants, seeds, soil, pots, potting mixtures, fertilisers, pest controls, garden tools, garden furniture and other garden products and accessories.

Key benchmark range

Cost of sales to turnover is the key benchmark range for this industry – it is likely to be the most accurate when predicting business turnover. Generally, you should fall within the key benchmark range for particular annual turnover. Falling outside the key benchmarks may indicate business has room for improvement.

Key Benchmark Range

Annual turnover range

$250000 - $750000

More than $750000

Cost of Sales/turnover

39% - 53%

47% - 56%

Labour/turnover

13% - 22%

14% - 20%

Labour/turnover

13% - 22%

14% - 20%

Vehicle expense/turnover

2% - 4%

1% - 4%

The basic formula is Benchmark figure ÷ turnover × 100 = benchmark percentage.

Risks to implementation

After consulting with stakeholders it was determined:

  • medium risk of poor online sales
  • high risk of customer service quality problems for online customers leading to a breach of consumer law
  • high risk of staff misunderstanding changes and considering online sales as threat to jobs
  • medium risk of not being able to recruit fully trained staff
  • low risk of loss of Intellectual Property relating to confidential information contained within strategy when employees leave the organisation
  • medium risk of loss of Intellectual Property ownership if a relationship with the website developer contract ceases
  • low level risk of not complying with WHS legislation through lack of risk assessment
  • medium risk of wastage due to overstocking product in anticipation of increased sales.

Appendix 2:

Principles of coaching underperforming employees

What do we coach?

Generally, most performance problems can be resolved through effective communication between managers and employees. Most employees can benefit from coaching in some way. Coaching applies to any skill at any time. It is a simple way to set, discuss, and monitor goals in a collaborative way.

When do we coach?

Coaching is different to formal training. But how do you know when you should step in, or let employees work through the problems for themselves?

  • Observe the employee's work and be alert for certain triggers or signs. For example, you may notice an attitude or behaviour creeping in, or you discover a slump in the employee’s KPIs.
  • Coach when you want to focus attention on any specific aspect of the employee's performance.
  • Don’t hesitate – do it now. Coaching is a process that is most effective when it happens promptly.

How do we coach?

  • Good coaches challenge employees and ask questions that help the employee to discover how to improve.
  • Coach when you wish to focus attention on any specific aspect of the employee’s performance.
  • A coaching meeting should focus on just one or two aspects of performance. Any more than that and employees won’t remember the main impact of your meeting.
  • Keep coaching conversations brief and between 5 and 15 minutes long.
  • Being an effective coach requires understanding of what motivates the members of your team. Remember that people are motivated in different ways. Be sensitive to the things that drive your people to perform.
  • When things are performing well, take the time to understand what is working and why.
  • Good coaching is guiding, not telling or doing.
  • Allow the employee to own the problem and its solutions. Ask them: ‘How do you think we should handle this?’
  • Be sure you document any key elements that come out of your coaching sessions and store them in the employee’s file.

The GROW model

GROW is a simple but effective model for running coaching sessions. GROW is an acronym that stands for: Goal – (current) Reality – Options – Will.

Goal

Things can change, and the employee’s goals may need to be revisited and reviewed.

Current Reality

Getting to the root cause of problems means asking the team member about what is happening and how the problem is affecting them. Often managers can leap to a conclusion about solving a performance problem. Important information that can help to solve the problem is often missed.

Some useful coaching questions include:

  • How is this change affecting your work?
  • If things changed do we need to revisit how we planned to approach this?

Options

Once you and your team member have explored the current reality, it's time to start exploring the alternatives for solving the problem. It should be a two-way process, so encourage the team member for their ideas and views about what might be done.

Ask questions like:

  • What other options have you considered for how we might handle this?
  • What are the alternatives?
  • How else could we approach this? What risks are involved?
  • What are the possible risks involved in these other options?
  • What constraints exist?

Will

By this stage you will have examined the current reality and canvassed the options for what could be done. The team member should now have a clear idea of how to deal with the situation. The final step for you as a coach is to get them to commit to taking action.

  • How will you take this forward?
  • How are you going to achieve this?
  • What obstacles could prevent this happening?
  • What else will you do?

Note: The coaching conversation does not need to rigidly follow the order above. Any genuinely two-way conversation will develop in unplanned ways. Nevertheless, each element of the GROW model should be addressed at some point in any coaching session that is likely to be effective.

Coaching plan template

QuestionsGoalRealityOptionsWill

Employee:

Coach/Manager:

Date of session:

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Griffith University

Holmes Institute

James Cook University

La Trobe University

Macquarie University

Monash University

Murdoch University

Queensland University of Technology

RMIT University

Southern Cross University

Swinburne University of Technology

University of Adelaide

University of Ballarat

University of Canberra

University of Melbourne

University of Newcastle

University of New England

University of New South Wales

University of Notre Dame Australia

University of Queensland

University of South Australia

University of Southern Queensland

University of Sydney

University of Tasmania

University of Technology Sydney

University of the Sunshine Coast

University of Western Australia

University of Wollongong

Victoria University

Western Sydney University

Year 11 - 12 Certification Assignment

Australian Capital Territory Year 12 Certificate

HSC - Higher School Certificate

NTCE - Northern Territory Certificate of Education

QCE - Queensland Certificate of Education

SACE - South Australian Certificate of Education

TCE - Tasmanian Certificate of Education

VCE - Victorian Certificate of Education

WACE - Western Australia Certificate of Education