ASSESSMENT TASK 1 - STUDENT INFORMATION

Assessment Activity 1.For this Activity, you will analyse information and data about JKL Industries (Attachment 1)and develop an organisation development plan.Your organisational development plan mustinclude: agreed objectives for JKL Industries, change management and communicationsstrategies and identified roles.o Show your draft organisational development plan to your Trainer for feedback,incorporate any changes you believe are required and then submit your finalisedorganisational development plan to your Assessor, as evidence for summativeassessment.During this Activity, you will be observed by your Assessor demonstrating the following:Develop organisation development plan by: Analysing strategic plans to determine organisation development needs andobjectives Consulting with relevant groups and individuals to profile the organisation'sculture and readiness for organisational development Determining who will take key roles in the organisational developmentprocess and confirm their commitment Collecting and analyse data on areas of the business experiencing problemsor that need realignment Determine and agree on objectives and strategies for organisationaldevelopment Considering change management techniques required to achieve theworkplace culture outcomes and build them into the organisationdevelopment plan Developing communication/education plans to achieve communicationobjectives in relation to the desired work environment and desired approachto problem solving and developmental activitiesAssessment Activity 2.You will now write notes to implement the development plan you developed for Activity 1.Notes must include: developing the team, managing conflict and solving problems at JKLIndustries.o Show your notes to your Trainer for feedback, incorporate any changes you believeare required and then submit your finalised notes to your Assessor for summativeevidence.During this Activity, you will be observed by your Assessor demonstrating the following:Implement organisation development activities by: Identifying and implement consultative processes to maximise participationin the organisation development process Undertaking team development and training activities to developcollaborative approaches to problem solving and development Facilitating groups to articulate problems and to propose means for resolvingthe problems Managing conflict between individuals and/or groups to achieve consensusor agreement Undertaking interventions in accordance with the organisation developmentplan Brainstorming alternative proposals and negotiate and agree on outcomes

BSBMGT615 Contribute to organisation development, Version COD, V1 SRAGILL Pty Ltd T/A AVETA - Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888

Assessment Activity 3.You will now, Consult and communicate effectively with relevant stakeholders to: determineagreed objectives and outcomes, manage conflict and monitor and promoteparticipation in and support for the development activities at JKL Industries. YourAssessor will roleplay the stakeholder of JKL Industries. You will then write notes onthe consultation you held with the stakeholder. You will the evaluate the development plan (from Activity 1) and make adjustmentsas appropriateo Show your notes and the adjusted development plan to your Trainer forfeedback, incorporate any changes you believe are required and then submityour finalised notes adjusted development plan to your Assessor, asevidence for summative assessment.During this Activity, you will be observed by your Assessor demonstrating the following:Maintain organisation development program by: Undertaking surveys to identify any loss of support for organisationaldevelopment programs and activities Maintaining regular team meetings and individual feedback in accordancewith communication plan Setting out activities and interventions in the organisation development planand maintain, evaluate and modify them as required Ensuring senior management reinforces organisation development programby ongoing messages of support and appropriate resource allocation Evaluating organisation development plans in terms of costs and benefits,including opportunity costs

Appendix 1: Scenario - JKL IndustriesJKL Industries overview

JKL Industries is an Australian-owned company, selling forklifts, small trucks and spare parts to industry. They also have a division that leases forklifts and small trucks. The company's head office is in Sydney and has branches in Brisbane, Melbourne, Perth, Adelaide and Canberra.

Change

After 12 years in business, focusing on forklifts and small trucks, JKL Industries has negotiated the sales rights to a range of medium and large trucks from an overseas supplier. This opportunity will provide JKL Industries 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 to industries who purchase these vehicles. Taking the sales rights opportunity will, however, entail some significant changes, including significant changes to the current organisational structure. 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.

In accordance with the organisation's values, JKL Industries intends (to the extent feasible) to recruit from within the company and up-skill or re-skill existing employees presently working in rentals who wish to remain with the company. Given the company's previous history of employee grievances over pay and conditions and current plans to restructure, JKL Industries has identified poor communications and an organisational climate of conflict as a risk to business goals.

Moving forward, the organisation intends to build and maintain a positive organisational culture, reduce risk and achieve organisational goals through: developing an effective policy framework for managing internal communications and consultation, in accordance with organisational objectives, business ethics, and compliance requirements communicating and building support for organisational initiatives and objectives

BSBMGT615 Contribute to organisation development, Version COD, V1 SRAGILL Pty Ltd T/A AVETA - Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888

managing information flow to: o provide managers and employees with at-hand information to perform their work responsibilities o communicate ideas for improvement (top-down and bottom-up) o facilitate feedback both to and from employees and management on relevant work performance and outcomes of consultation.

Communication and consultation issues

An internal management review of the organisation has uncovered the following issues: A lack of an overarching approach to information management that helps to promote common understanding of team goals and organisational values and to build strategic relationships. Slow responses to internal and external customer needs. Slow and ineffective communication of and implementation of ideas for improved processes. Ineffective or no use of modern communication technologies and social platforms. Inadequate consultation, resulting in risks to compliance (particularly WHS consultation requirements) and too little bottom-up information flow from employees to management. This latter results in poor organisational take-up of improvement ideas identified by teams and individuals at lower levels of the organisation and by customer-facing managers and employees. Inconsistent application by managers of grievance procedures posing a risk to employee relations. Poor sense of employee engagement, empowerment and accountability for work performance. Poor general awareness of (and therefore poor support of) organisational goals, ethics, values. Your roleYou are a communications consultant. You have been engaged by JKL Industries to revise and update strategies and processes to manage communications and information flow within the organisation.

Note that the senior management team may be resistant to changes to communication strategies, policies and procedures. In particular, they are concerned that a new approach to communications may result in a less cohesive organisation.

You will need to ensure your communications strategy and processes address organisational issues, while using your highly developed interpersonal skills to

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engage and motivate the senior management team to embrace your proposed changes.

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 Strategic planning

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 providing increased customer value. Exit underperforming markets; JKL Industries 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 Industries will continue to sell and service forklifts and expand their market share by 7% within the next 12 to 18 months. Provide quality customer service. JKL Industries will expand existing branches to include the sale of medium and large trucks within 18 months.

BSBMGT615 Contribute to organisation development, Version COD, V1 SRAGILL Pty Ltd T/A AVETA - Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888

Goals Strategic objectives Operational objectives HR partners with business to help business meet customer needs. HR partners with frontline 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 up-skill rental employees. Deliver ongoing training for employees. Deliver leadership training for future generation of leadership. Recruit. Conduct workforce planning through FY 2016-2017. Complete implementation of staff planning for FY 2014-2015. Conduct skills audits and needs analysis for all roles to be filled by recruitment strategy. Ensure that 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. Enhance employee and industrial relations. Implement new grievance and dispute resolution procedures. Complete enterprise bargaining. Manage performance and adherence to organisational values. Complete twice-yearly performance reviews. Communicate organisational values and code of conduct. Build a culture of excellence; eliminate discrimination and promote diversity in the workforce. Promote levels of diversity in workplace proportional to percentage of the 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.

BSBMGT615 Contribute to organisation development, Version COD, V1 SRAGILL Pty Ltd T/A AVETA - Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888

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 an HR business partner model, with a human resources officer aligned to each of the three key business areas: sales, fleet rentals, and service.

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 teams. The HR Manager reports to the Operations Manager and heads up the HR centres 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. JKL employs over 190 personnel in the following categories (see organisational chart on the following page).

A summary of human resources at each location in FY 2013-2014 appears below. Sydney head office

Personnel: full-time and casual sales and customer service people (10 sales consultants; 5 rental sales 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: full-time and casual sales and customer service people (9 sales consultants; 4 rental sales 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.

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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 requirementsJKL 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 Industries 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).

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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 Industries accepts cash, EFTPOS and major credit cards. Credit terms are available for trades.

Operating hours

JKL Industries 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).

Risk management strategy and plan

Introduction

JKL Industries 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 that 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.

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Guiding principles

JKL Industries 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 Industries 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 management 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 Industries.

Risk management framework

This framework encompasses a number of elements that together facilitate an effective and efficient operation, enabling JKL Industries to respond to a variety of operational, financial, commercial and strategic risks.These elements include the following.

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.

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Low indicates minor reductions in achieving budget or minimal reduction in performance.

Risk management action plan

Risk

Risk likelihoo d

Risk impact Controls Monitoring Timelines Responsible

JKL fails to meet revenue goals

Medium High 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

Medium High 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)

Medium High 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 goals (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

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Risk

Risk likelihoo d

Risk impact Controls Monitoring Timelines Responsible

JKL fails to comply with legislative requirements

Low High Manage performance and adherence to organisational values Regular review of legislative environment and relevant policies Complete enterprise agreements Implement grievance and dispute resolution processes

HRMS statistics: demographics audit results organisational climate survey results

Monthly and quarterly reporting

Managers at each level Individualstaff and contractors