Assessment

Task 2

Manage workforce planning

BSBHRM513

Student Declaration

To be filled out and submitted with assessment responses

I declare that this task and any attached document related to the task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s)

I understand that if I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me

I have correctly referenced all resources and reference texts throughout these assessment tasks.

I have read and understood the assessment requirements for this unit

I understand the rights to re-assessment

I understand the right to appeal the decisions made in the assessment

Unit Title

Unit Code

Student name

Student ID number

Student signature

Date

Task Number

------OFFICE USE ONLY-----

For Trainer and Assessor to complete:

Student requested reasonable adjustment for the assessment

Completed successfully

Did the student satisfactorily:

Comments

Y

N

DNS

The student has satisfactorily completed and submitted the following:

Workforce Planning Report in Task 2.1

Workforce Plan in Task 2.2

Observation Checklist in Task 2.3

List of changes implemented in the workforce plan in Task 2.3

Demonstrated ability to:

Review current data on staff turnover and demographics

Assess factors that may affect workforce supply

Establish the organisation's requirements for a skilled and diverse workforce

This is evidenced by:

Workforce Planning Report in Task 2.1

Demonstrated ability to:

Establish the organisation's 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

Develop contingency plans to cope with extreme situations

This is evidenced by:

Workforce Plan in Task 2.2

Demonstrated ability to:

Communicate objectives and rationale to relevant stakeholders

Obtain agreement and endorsement for objectives and establish targets

This is evidenced by:

Observation Checklist in Task 2.3

List of changes implemented in the workforce plan in Task 2.3

Task Outcome:SatisfactoryNot Yet Satisfactory

Student Name:

Assessor Name:

Assessor Signature:

Date:

Table of Content

Student Declaration. 2

Task 2 - Research workforce requirements and develop a workforce plan. 7

Task 2.1 Research workforce requirements. 11

Task 2.2 Develop a workforce plan.. 13

Task 2.3 Present and obtain approval for the workforce plan.. 18

Appendix 1 - Scenario. 19

Organisational Chart 20

Business and strategic planning FY 2020-2021. 21

Workforce Data. 23

Operational Plan. 27

Office requirements. 28

Insurance requirements. 29

Operational workflow.. 29

Operating hours. 30

JKL risk management action plan. 30

Appendix 2 - Policies and Procedures. 31

Risk management strategy and plan. 31

Introduction. 31

Guiding principles. 32

Responsibility and authority. 32

Risk management framework. 32

Definitions. 32

JKL policies and procedures. 33

Code of conduct 33

Legislative requirements. 33

Health, safety and rehabilitation policy. 34

Workplace harassment, victimisation and bullying policy. 35

Anti-discrimination and equal opportunity policy. 35

Privacy Policy. 36

Recordkeeping Policy. 38

Recordkeeping procedures. 39

Vocational education and training, apprenticeships and traineeships policy. 39

Performance management policy. 40

Task 2 - Research workforce requirements and develop a workforce plan

Task 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 organisation's 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

• Develop workforce planning report

Task 2.2 Develop a workforce plan

• Develop a workforce plan

Task 2.3 Present and obtain approval for the workforce plan

• 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:

oResearch and summarise information

oAnalyse and evaluate data

oEvaluate factors that may affect workforce supply

oDefine the requirements for workforce

oDevelop a workforce plan

oStakeholder management

oCommunication

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:

oAppendix 1 - Scenario

oAppendix 2 - Policies and Procedures

at the end of this document

oTemplates:

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:

ointernal and external labour supply predictions

oexternal conditions, for example, government policy

oorganisational 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:

oPromotion

oRedeployment (move)

oNew Hire

oSecondment

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 FY2021-22

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 yearround 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,

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.