This unit describes the skills and knowledge required to manage employee and industrial relations
matters in an organisation. It involves developing and implementing employee and industrial
relations policies and plans and managing conflict resolution negotiations.
It applies to those who are authorised to oversee industrial relations and manage conflict and
grievances in an organisation. They will have a sound theoretical knowledge base in human
resources management and industrial relations as well as current knowledge of industrial relations
trends and legislation
.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Unit Sector
Workforce Development – Workplace Relations
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Performance Criteria
Element
Elements describe the
essential outcomes.
Performance Criteria
Performance criteria describe the performance needed to
demonstrate achievement of the element.
1. Develop employee and
industrial relations
policies and plans
1.1 Analyse strategic plans and operational plans to determine
long term employee relations
1.2 Analyse existing employee relations performance in relation
to workforce objectives
1.3 Evaluate options in terms of cost-benefit, risk-analysis and
current legislative requirements
1.4 Work with the management team to develop industrial
relations policies and plans
1.5 Identify the skills and knowledge needed by
management
and the workforce to effectively implement these strategies
and policies
2. Implement employee
relations policies and
plans
2.1 Develop an implementation plan and a contingency plan for
the employee relations policies and strategies
2.2 Make arrangements for training and development for
identified needs to support the employee relations plan
2.3 Undertake associated employee relations activities to reach
agreement on changes required by the organisational
policies or implementation plan
2.4 Ensure procedures for addressing grievances and conflict to
stakeholders are properly documented
2.5 Communicate key issues about procedures for addressing
grievances and conflict to stakeholders
2.6 Review employee relations policies and plans to establish
whether they are meeting their intended outcomes
3. Manage negotiations
to resolve conflict
3.1 Train individuals in conflict-management techniques and
procedures
3.2 Identify, and where possible alleviate or eliminate, sources
of conflict or grievance according to legal requirements
3.3 Check documentation and other information sources to
clarify issues in dispute
3.4 Obtain expert or specialist advice and/or refer to
precedents, if required
3.5 Determine desired negotiation outcomes, negotiation
strategy and negotiation timeframes
3.6 Advocate the organisation’s position in negotiation to obtain
agreement
3.7 Document, and if necessary certify, the agreed outcomes
with the relevant jurisdiction
3.8 Implement agreements
3.9 Take remedial action where groups or individuals fail to
abide by agreements
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Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the
performance criteria that are required for competent performance.
strategies to construct meaning from complex texts
Writing
1.4, 2.1, 2.4, 2.5, 3.7 Displays knowledge of required structure and layout,
employing broad vocabulary, grammatical structure and
conventions appropriate to purpose and audience
Oral
communication
1,4, 2.5, 3.1, 3.6 Conveys information using language and non-verbal
features appropriate to the audience
Employs listening and questioning techniques to clarify and
confirm understanding
Numeracy
1.2, 1.3 Extracts and evaluates the mathematical information
embedded in a range of tasks and texts
Navigate the
world of work
1.3, 1.4, 2.3, 2.6, 3.2,
3.7
Modifies or develops organisational policies to achieve
organisational goals and comply with legislative
requirements
Keeps up to date on changes to legislation or regulations
relevant to own rights and responsibilities and considers
implications of these
Interact with
others
1.4, 2.3, 3.1, 3.2, 3.4,
3.6, 3.9
Collaborates with others to achieve joint outcomes, playing
an active role in facilitating effective group interaction,
influencing direction and taking a leadership role on
occasion
Actively builds networks that include key people with
expert skills and knowledge
Uses a range of strategies to facilitate an acceptable
outcome for all parties where conflicts occur
Sequences and schedules complex activities, monitors
implementation and manages relevant communication
Uses analytical techniques to identify issues and generate
possible solutions, seeking input from others as required,
before making decisions or implementing solutions
Draws on the diverse perspectives of others to gain insights
into current practices and opportunities for change
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Assessment Requirements
Performance Evidence
Evidence of the ability to:
Analyse organisational documentation to determine long-term employee relations objectives
and current employee relations performance
Collaborate with others to develop and review industrial relations policies and plans
Develop implementation and contingency plans for industrial relations policies
Identify the skills and knowledge needed to implement the plan and organise training and
development for self and staff
Document and communicate strategies and procedures for eliminating and dealing with
grievances and disputes
Train others in conflict-resolution techniques
Manage industrial relations conflicts, including advocating the organisation’s position during
negotiations and documenting, implementing and following up agreements.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
Explain relevant industrial relations legislation or regulations
Summarise enterprise and workplace bargaining processes
Summarise key entities in the current Australian industrial relations system, including courts and
tribunals, trade unions and employer bodies
Relevant industrial, workplace health and safety, equal employment opportunity and
anti-discrimination legislation in federal, state and territory jurisdictions.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates
consistent performance of typical activities experienced in the workforce development – workplace
relations field of work and include access to:
Awards and enterprise bargaining agreements
Relevant legislation, regulations, standards and codes
Relevant workplace documentation and resources
Case studies and, where possible, real situations
Interaction with others.
Assessors must satisfy NVR/AQTF assessor requirements.
Links
Companion volumes available from the IBSA website: http://www.ibsa.org.au/companion_volumes –
http://www.ibsa.org.au/companion_volumes
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Housekeeping Items
Your trainer will inform you of the following:
Where the toilets and fire exits are located, what the emergency procedures are
and where the breakout and refreshment areas are.
Any rules, for example asking that all mobile phones are set to silent and of any
security issues they need to be aware of.
What times the breaks will be held and what the smoking policy is.
That this is an interactive course and you should ask questions.
That to get the most out of this workshop, we must all work together, listen to each
other, explore new ideas, and make mistakes. After all, that’s how we learn.
Ground rules for participation:
o Smile
o Support and encourage other participants
o When someone is contributing everyone else is quiet
o Be patient with others who may not be grasping the ideas
o Be on time
o Focus discussion on the topic
o Speak to the trainer if you have any concerns
Objectives
Discover how to develop employee and industrial relations policies and plans
Know how to implement employee relations policies and plans
Learn how to manage negotiations to resolve conflict
Gain skills and knowledge required for this unit
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1. Develop employee and industrial relations policies and
plans
1.1 Analyse strategic plans and operational plans to determine long term employee relations
1.2 Analyse existing employee relations performance in relation to workforce objectives
1.3 Evaluate options in terms of cost-benefit, risk-analysis and current legislative requirements
1.4 Work with the management team to develop industrial relations policies and plans
1.5 Identify the skills and knowledge needed by management and the workforce to effectively
implement these strategies and policies
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1.1 – Analyse strategic plans and operational plans to determine long term
employee relations
Strategic Plans
The key elements of strategic planning are an organisation’s:
Vision statement – the vision outlines how the organisation wants to be; it is a long
term objective that concentrates on the future.
Values – this is a set of beliefs that are shared amongst the shareholders of the
organisation. This is the framework and basis on what all decisions should be made.
Mission – the mission defines the fundamental purpose of the organisation, why it
exists and what it does to achieve its vision.
Strategy – the strategy itself it how the organisation intends to meet its vision what
goals are set, what policies will they use.
Operational Plans
An operational plan can be described as the process of defining what steps a company will take in
order to achieve the organisational objectives.
It is also the plan that assists employees to work towards the achievement of the mission and vision
statement.
Planning in advance means that managers can:
Identify strengths and weaknesses
Resolve potential issues before they arise
Cater to employee needs and requirements
Take advantage of opportunities
Employee relations
Employee relations encompass all aspects of employment and workplace conditions and the
employee / employer relationship. In respect of strategic and operational plans it is essential for
organisations to ensure that when plans are made they factor in employee relations, for the
advancement and well being of the organisation’s future.
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Employee relations have four fundamental elements:
Employee communication
Employee communication is the process by which information is exchanged between the sender and
the receiver. It is the cohesive agent that holds organisations together.
In employee relations communication there are key issues related to communication in the
workplace, such as:
Communication is the fundamental process of organising
All management should be committed to open communication
Management should devise effective communication systems in the workplace
Information should be relevant to the employee
Messages should be consistent with actions
Cross cultural communication is contributing to a diverse workplace
Training in communication increases effectiveness of the organisation.
Employee
relations
Employee
communication
Employee
rights
Employee
involvement
Employee
discipline
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Within the organisation there will be three forms of communication used, these are:
Verbal – in the form of informal or formal speech. Face to face communication
combines the auditory and the non-verbal.
Non-verbal – communicating through gestures or facial expression used in
conjunction with verbal communication it can send much more information to the
receiver than just words.
Written – in the form of notes, memorandums, emails and letters.
Employee involvement
Management have the task of holding the organisation’s employee relations together and part of
that task involves keeping control and commitment in the workplace. One of the strategies used to
do this is employee involvement.
The Involvement-Commitment Cycle
(Adapted from Bratten and Gold pg 455)
Employee discipline
When all avenues of communication fail managers may have to resort to disciplinary action.
Disciplinary actions are important tools designed to help managers maintain an efficient and orderly
work environment. If these processes are used properly, they will assist employees in correcting
unacceptable behaviours.
Managers perceive the
need for involving
employees in decision
making
Introduce new forms,
employee involvement
and open communication
mechanisams
Greater autonomy and
input into decision making
Increased employee job
satisfaction, motivation
and commitment
Improved individual and
organisational
perfomance
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Failing to use disciplinary actions to correct inappropriate conduct and performance may lead to
more serious problems for the organisation and management. It may also harm the morale of those
employees who are working according to the rules and requirements of the workplace and are
meeting their required performance standards.
The time and effort you spend to correct problems early is a good investment. In dealing with
problems early you can avoid additional problems later, such as low morale, loss of productivity,
high turnover of staff, and loss of respect for
management.
Employee rights
Employee rights play a vital role in the protection of employees against unfair behaviours from
management and co-workers. Protecting employee rights ensures that employees have confidence
in management and that they will be fairly treated. It is important to the organisation both legally
and economically, as they are required to adhere to employment law and risk hefty fines if they do
not.
Employee satisfaction
Job satisfaction is a business term that refers to a person’s contentment with his or her job.
There are various factors that contribute to employee satisfaction, which may include:
Work environment
Employee relations
Salary.
Employers can measure employee satisfaction by undertaking surveys then implement measures
that nurture job satisfaction amongst workers.
Job satisfaction has been linked to increased work productivity and increased motivation which
typically leads to improved performance and reduces staff turnover.
Human resource management professionals often measure employees’ job satisfaction by assessing
workplace attitudes. This can take place informally through conversations between workers and
their supervisors or with human resources representatives.
Many organisations administer formal surveys and then use the results to amend workplace policies
and procedures. Some businesses work with outside consulting firms to analyse the results of their
employee satisfaction surveys. They might then hold workshops or training sessions to help their
employees determine the professional roles that suit them.
1.2 – Analyse existing employee relations performance in relation to
workforce objectives
Performance systems
There are also a number of reasons why performance systems should be monitored and a number of
ways in which employee relations performance can be monitored.
Managers need to identify what is going well and what needs to be improved within the
organisation. They also need to be able to monitor and measure effectiveness of resources, to
ensure that the organisation’s workforce objectives are being met.
Therefore, it is important to have some systems in place to report and record any specific
information related to the employee relations performance systems an organisation has in place.
It would be important for managers to monitor the following:
Workplace Health and Safety (WHS) issues such as accidents, incidents and near
misses
Absenteeism and sickness
Lateness
Productivity
Staff turnover
Performance appraisals and reviews
Staff training and development
Staff satisfaction, based on surveys and
feedback
Complaints and grievances.
Key Performance Indicators (KPIs) should be measured and maintained as part of a continuous
improvement process. If a training gap or a performance gap is determined using KPIs or other
methods, then the issues can be addressed.
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Performance of employees can be measured in any of the following ways:
Observation
Manager and supervisor
reports
Performance Management Plans
Annual reviews
Discussions
Informal meetings
Formal meetings
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Activity 1B
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1.3 – Evaluate options in terms of cost-benefit, risk-analysis and current
legislative requirements
Cost-benefit
Employee relations have a huge impact upon the success of a business. Good employee relations can
help organisations avoid conflicts and minimise negative impact. In terms of the costs of time and
money, it is an investment well spent.
Investing in training is the key to providing a harmonised organisation. Training may include:
Teamwork
Diversity
Conflict resolution.
Productivity
Creating a pleasant atmosphere in the workplace can increase employee motivation and morale,
which in turn will lead to increased production and an increase in profits for the organisation.
Training programs can also teach staff how to work as teams.
Employee loyalty
Creating a pleasant and productive atmosphere for employees can encourage a loyal workforce.
Workers that are loyal to the organisation are less likely to want to leave. Improving retention of
workers will decrease costs of recruiting and training new staff. Low turnover of staff ensures a
trained, skilled workforce.
Quality
When worker morale is high, their loyalty to the organisation increases, as does the quality of their
work. The reduction in staff turnover makes for an experienced workforce which produces higher
quality work.
Fair pay
It never hurts to pay an employee a fair wage for an honest day’s work. The less money problems
they have, the less likely they are to want to get a second job or look for work elsewhere.
Risk analysis
Assessing the risks in terms of employee relations should demonstrate an understanding of the
industrial relations environment. Taking into consideration lessons learned from previous issues, the
risk assessment should identify an employee’s ability to comply with policy guidelines towards
efficiency and productivity.
To provide accurate information and feedback to management on employee relations matters or to
inform those persons and groups of relevant matters, it is good management to conduct a risk
assessment once you have gathered your information from the feedback methods mentioned
previously.
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Developing risk management
When developing a risk management review for your employee climate or other human resource
management activities, there are a number of considerations which may include:
Likelihood – is the chance that something will happen. This can be represented
qualitatively as a word, quantitatively as a probability or frequency, or as both.
Consequence – is the impact that a risk may have and is measured in degrees of
severity, should the risk occur.
The risk management process involves a series of sequential steps which can be defined as:
The areas which are most likely to be flagged when conducting risk management assessment may
include:
Compensation and benefits
issues
Discriminatory practices
Hiring unsuitable employees
Wrongful
dismissal
Promises made to employees that cannot be honoured
Policies and contracts of employment
Establish the context
Identifying risks
Evaluate risks
Analyse risks
Treat risks
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Safe working conditions
Adequate training
Appropriate clothing and safety equipment
Adequate policies and procedures
Reputation in the community
Release of personal information
Adequate supervision
Exit interviews.
Providing information
There are two main ways of providing information and feedback, these are:
Via management
Directly to the relevant persons or groups.
As is suggested in all the better manuals on risk management, risk, in all its many forms is best
managed at the source; this may mean:
Including management or relevant persons and groups, whatever their role in your
organisation
It is more likely that attention will be focused on the actions required if somebody
takes responsibility for the risk
identified.
The methods and design of the information format will largely depend on organisational
preferences. The level of detailed information, feedback or advice should relate to the level of risk
identified.
Where an organisation operates similar industrial activities from several workplaces, they may
produce a generic assessment that addresses findings. Circumstances may exist however, that
require adapting or amending the information for each workplace or work activity.
Good feedback helps an individual improve their actions.
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Legislative requirements
Under Australian law, all organisations must abide to certain legislation. Getting this wrong can
jeopardise the organisation financially and threaten its reputation.
Fair Work Act
Australia introduced the new Fair Work Act on 1 July 2009. Key elements of the system include:
A legislated safety net of ten
National Employment Standards
New modern awards
Revised enterprise bargaining arrangements
Streamlined protections dealing with workplace and
industrial rights, including:
o Protection against discrimination and unfair
dismissal
o Two new organisations to regulate the system:
Fair Work Australia and the Fair Work Ombudsman.
The Workplace Authority only has responsibility for accepting lodgements of workplace agreements
and then assessing them against the No-Disadvantage Test (NDT).
Agreement types
Under the Fair Work Act there are three types of enterprise agreements:
1. Single-enterprise agreements: made between a single employer and a group of
employees. They can involve more than one employer in limited cases (e.g. where
two or more employers are engaged in a joint venture).
2. Multi-enterprise agreements: made between two or more employers and groups of
their employees.
3. Greenfields agreements: single-enterprise and multi-enterprise agreements relating
to a genuine new enterprise of the employer(s) and are made before any
employees to be covered by the agreement are employed.
Greenfields agreements
are made with one or more relevant unions.
All of these are collective agreements. Unions involved in bargaining for an enterprise agreement
may choose to be covered by the agreement.
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Updates 2014
A Fair Work Amendment Bill was introduced into Parliament in February 2014. The bill includes:
Further reforms to Greenfields agreements
Measures to provide clarity around workforce flexibility arrangements.
Measures for underpaid workers.
Repeal Day
Australia’s Coalition Government had a “Repeal Day” in March 2014,
during which a number of alterations were made to the Fair Work
Act’s principles, including:
Changes to the requirements for suppliers to the
Government
Changes in obligations for tenderers in the textile,
clothing and footwear industries
Prosecutions for underpaid wages.
Such changes only serve to highlight the ever changing process of legislation to which an
organisation must comply. It is in an organisation’s best interest to keep up to date with any
changes
that the Australian Government introduces.
National Employment Standards
The National Employment Standards (NES) ensure that all employees are protected by a strong
safety net of fair minimum conditions that can’t be stripped away. The NES apply to all employees in
the federal system regardless of industry, occupation or income.
The NES provide employers with the flexibility and simplicity they need while also ensuring an
employee’s key entitlements are protected. The NES include:
Maximum weekly hours of work
Request for flexible working arrangements
Parental leave and related entitlements
Annual leave
Personal/Carer’s leave and compassionate leave
Community service leave
Long service leave
Public holidays
Notice of termination and redundancy pay
Fair Work Information Statement.
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Further legal requirements and codes of practice may include:
Compliance with applicable laws and regulations
Compliance with accounting policies and financial reporting practices
Compliance with financial and internal control systems
Compliance with external and internal audit functions
Compliance with identification and management of risks.
WHS and environmental
issues
The Law: Australia
The Commonwealth Constitution does not give the
Commonwealth a general power to legislate for work health and
safety. Hence there are ten general statutes for work health and
safety (six state Acts, two territory Acts, a Commonwealth Act
covering Commonwealth employees and employees of certain
licensed corporations, and Commonwealth Acts covering the
maritime, and the offshore petroleum and gas industries). There
are also specialist statutes covering the mining industry in some
states.
Codes of practice Codes of practice are developed by all states and territories.
Anti-discrimination The Law: Australia
COMMONWEALTH RACIAL DISCRIMINATION ACT (1975) The
Racial Discrimination Act (RDA) is designed to ensure that all
Australians have human rights and freedoms in full equality
regardless of their race, colour, descent or national or ethnic
origin, being an immigrant, or being a relative or associate of
someone of a particular ethnicity. The RDA applies to everyone in
Australia including businesses, schools, local governments, State,
Territory and Commonwealth government agencies and
departments. It overrides racially discriminatory State or
Territory legislation.
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Discrimination – protected attributes
Discrimination based on protected attributes is illegal. The grounds vary between States and
Territories.
The following grounds summarise those across Australia:
Age
Physical features (VIC only)
Profession, trade, occupation or calling (ACT only)
Industrial/trade union activity
Political belief or activity
Transexuality, transgender and gender identity
Criminal record
HIV/AIDS
Medical record
Defence service
Pregnancy (including potential pregnancy)
Homosexuality, sexual orientation, sexuality, lawful sexual activity
Carers’ responsibilities, family responsibilities, parental status
Disability, including physical, mental and intellectual disability, medical record
Race (including colour, nationality, descent, ethnic, ethno-religious or national
origin).
Religious belief or activity
Sex
Marital status
Breastfeeding
Spent convictions.
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Unacceptable workplace behaviours
There are a number of behaviours that are legally unacceptable in the workplace and your
organisation or business is responsible for ensuring they don’t occur. Policies and training should be
in place to minimise the likelihood of these behaviours.
Bullying
The repeated less favourable treatment of a person by another or others in the workplace, which
may be considered unreasonable and inappropriate workplace practice. It includes behaviour that
intimidates, offends, degrades or humiliates a worker.
Harassment
Any unwelcomed action, behaviour, comment or physical contact that is objectionable or causes
offence. Harassment is often based on discrimination.
Sexual harassment
Sexual Harassment is the unwelcomed, unsolicited and unreciprocated behaviour of a sexual nature.
Workplace violence
Involves incidents where employee is physically attacked or threatened in the workplace.
Threat
Statements or behaviour where person believes they are in danger of being physically attacked.
Physical attack
Physical attack includes any direct or indirect application of force to the body of, or to the clothing or
equipment worn by another person, where that application creates a risk to health and safety.
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Activity 1C
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1.4 – Work with the management team to develop industrial relations
policies and plans
Policies and plans
As part of the management team your role will involve the development of policies and plans. To do
this you must have a good understanding of the organisation, its strategic and operational plans and
employment law. The following gives a guideline of what may need to be included and considered in
the development of the policies and plans.
Site, enterprise and statutory requirements
Site, enterprise and statutory requirements may include:
Award and enterprise agreements, and relevant industrial instruments
Dispute settlement procedures
Grievance mechanisms
Relevant industry codes of practice
Relevant legislation from all levels of
government that affects business operation,
including:
o WHS and environmental issues
o Equal opportunity
o Industrial relations and anti-discrimination
o Reporting channels and procedures.
Enterprise agreements
Enterprise agreements are agreements made at an enterprise level between employers and
employees about terms and conditions of employment. Fair Work Australia can assist in the process
of making such agreements and also deal with disputes.
Who can make an enterprise agreement?
An enterprise agreement is made between one or more employers and: employees and (in the case
of a Greenfield agreement) one or more relevant employee organisations or unions.
Why make an enterprise agreement?
Awards cover a whole industry or occupation and only provide a safety net of minimum pay rates
and employment conditions. Enterprise agreements can be tailored to meet the needs of particular
enterprises.
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What can an enterprise agreement include?
Enterprise agreements can include a broad range of matters such as:
Rates of pay
Employment conditions e.g. Hours of work, meal breaks, overtime
Consultative mechanisms
Dispute resolution procedures
Deductions from wages for any purpose authorised by an employee.
However, they cannot include unlawful content such as discriminatory or objectionable terms.
Single-enterprise agreements
Single-enterprise agreements involve one or more employers, such as in a joint venture, co-
operating in what is essentially a single enterprise. Such employers are known as single interest
employers.
Multi-enterprise agreements
Multi-enterprise agreements involve two or more employers that are not
all single interest employers.
Greenfields agreements
Greenfields agreements involve a genuinely new enterprise that one or
more employers are establishing or propose to establish and who have
not yet employed persons necessary for the normal conduct of the
enterprise. Such agreements may be either a single-enterprise
Policies and procedures will vary from organisation to organisation. Under the Fair Work Act 2009,
agreements continue to operate after their nominal expiry date until they are replaced or
terminated by application to Fair Work Australia. Through provisions in the Fair Work (Transitional
Provisions and Consequential Amendments) Act 2009, agreements made under previous legislation
continue to have effect as agreement-based transitional instruments.
.
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Some generic policy and procedure headings would likely include:
Agreement
principles
Title
Arrangement
Application of the Agreement
Date and period of operation
Status of this Agreement
Renegotiation of the Agreement
Posting of Agreement
Flexibility term
Definitions
Committees
Dispute resolution procedures.
Staffing Appointment
Full-time
Casual
Ongoing
Fixed-term
Multiple appointments.
Remuneration
Salary / wages schedules
Superannuation
Salary packaging
Bonuses
Allowances and penalty rates.
Hours of work Attendance
Meal breaks
Overtime
Flexible working hours arrangement
Shift work
Shift rosters.
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Performance
management
Reviews
Assessments
Rewarding performance
Appraisals
Staff development
Training assistance
Promotion
Unsatisfactory performance
Counselling and first warning
Misconduct
Workplace rehabilitation
Termination.
Leave Recreation leave
Sick leave
Carer’s leave
Bereavement / compassionate leave
Parental leave
Public holidays
Leave without pay
Long service leave
Special leave
Jury service
Trade union leave.
Termination Notice periods
Payment on cessation of employment
Exemptions
Provisions for completion of fixed-term appointments
Redundancy.
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1.5 – Identify the skills and knowledge needed by management and the
workforce to effectively implement these strategies and policies
Skills and knowledge required
Management and the workforce will require certain skills and knowledge to effectively implement
employee relations strategies and policies effectively these include:
Communication
Interpersonal understanding
Problem solving
Giving feedback
Communication
Strong communication skills are required of everyone, and especially of managers. The ability to
effective and efficiently communicate changes, plans, next steps, the direction of the organisation,
etc. is required to ensure that all employees understand where they need to head and how to get
there. Effective communication builds trust.
Interpersonal understanding
Managers and the workforce must understand
those around them; not just staff and colleagues,
but their managers and the other department
heads/employees. The ability to understand how
others think and what’s important to them helps
to ensure success in accomplishing your goals.
Problem solving
The workforce and managers should know how
to understand a situation completely – they plan,
they don’t react. Understanding the root cause
of a situation is necessary in order to effective
problem-solve the
issue.
Feedback
Learning how to give constructive feedback; provide those who report to you and work with you
with feedback on a regular basis about how they are doing, and identify if they have any issues or
areas that they can be assisted with.
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Management skills
The specific skills and knowledge of managers may include:
Team Leadership
Influence
Providing motivation
Planning
Monitoring.
Team leadership
This requires ensuring the team understands the mission, goals and objectives before them. A strong
team leader builds effective teams that can accomplish the goals of the organisation and enables the
team to move toward a common goal.
Influence
Effective managers can persuade others to accomplish the organisational goals; just telling someone
what to do doesn’t work, even if they report to you. The most successful managers are able to
influence others to move in the direction they need them to go.
Providing motivation
Learning how to motivate those around you is an important skill for managers – what’s important to
your staff? Not everyone is motivated by the same things and a good manager understands their
employees and what motivates them to come to work each day and do a good job.
Planning
The ability to effectively plan projects is important for any manager. This requires sharing the vision
with others, getting them on board, creating plans to implement the vision, and ensuring timelines
are met and budgets are managed.
Monitoring
As with all management practices, you would be well prepared if you first know what you are going
to be looking for before it happens.
It may be advisable to bear in mind that:
Communicating good news to employees is easy.
Communicating employee relations policies and procedures, although they may
very well be good policies, can be difficult.
A cautious approach is always good management.
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Activity 1D
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2. Implement employee relations policies and plans
2.1 Develop an implementation plan and a contingency plan for the employee relations policies
and strategies
2.2 Make arrangements for training and development for identified needs to support the
employee relations plan
2.3 Undertake associated employee relations activities to reach agreement on changes required
by the organisational policies or implementation plan
2.4 Ensure procedures for addressing grievances and conflict to stakeholders are properly
documented
2.5 Communicate key issues about procedures for addressing grievances and conflict to
stakeholders
2.6 Review employee relations policies and plans to establish whether they are meeting their
intended outcomes
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2.1 – Develop an implementation plan and a contingency plan for the
employee relations policies and strategies
Business plans
An organisation will have a performance or business plan in place in order to define the steps a
company plans on taking in order to achieve the organisational objectives set by management. It
also forms a blueprint for the provision of assisting employees to work in line with, and towards, the
achievement of the mission and vision statement.
Business Plans are usually externally focused and relate to the organisation as a whole, what
objectives it has and how it can work to continually improve processes and systems.
Operational plans are internally focussed so that employees understand what the company expects
from them in terms of working towards the desired objectives.
Implementation plans
An implementation plan will involve several parties or individuals these include:
Management and Senior Management teams
Employee relations specialist
Employees
Legal representatives
Representatives and unions
Stakeholders.
Communication
Managers need to communicate the overall implementation plan to relevant staff members so they
can work towards the achievement of the introduction of employee relations polices and strategies.
There will always be a number of risks and constraints that can apply to the implementation of
policies and strategies. However, staff members should usually be aware of any contingency plans
and back up options in the unlikely event that a risk should present itself to the business.
Planning is about looking towards what the company wants to achieve, therefore, implementing the
plan is about determining how it is going to achieve this. It should focus on what is going to happen
to the organisation as it moves towards achieving these objectives and milestones.
Actions that result directly from plans should be considered as part of the process of
implementation also. Past situations should be taken into account to determine what the future
implications are likely to be.
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Some of the ways in which policies and strategies information could be given include:
Posters in common areas
General staff meetings
Conferences
Informal staff discussions
Emails to staff
Annual performance review.
Information of policies and strategies should be accurate, valid and sufficient. It should relate
directly to the organisational objectives and should be easy to implement and follow.
Trends
Trends should be analysed according to the data available. It is a good opportunity to analyse
anything relating to the planning, review performance, compare with competitors, and improve
general company procedures.
Managers should be familiar with suitable ways of collecting and keeping track of information that is
collected to analyse these trends and understand how the company is progressing.
Failures
It is always an organisation’s intention to make change for the better; however, not all change is
successful.
Some examples of why changes fail are:
Misunderstanding what the change is and why it has to be changed
Change implemented without planning and preparation is doomed to fail
No clarity of the organisation’s mission or vision
Lack of communication with its employees and stakeholders can cause discontent
If previous change has not been successful its legacy can have an impact upon
future change
Change is not about a quick fix it’s about a long term vision for the future.
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Contingency planning
Contingency planning and risk management play a very big part in managing a business. However,
contingency planning is not always about doom and gloom. It is simply a matter of trying to identify
possible risks to the business and finding a solution in the unlikely event that something happens.
Sometimes history can also dictate the necessity for a contingency plan. For example, something
may not have been considered a risk until after it happened.
Risk management is an area that all managers need to take seriously. The possibility of something
happening that can impact on the organisational objectives is a matter that needs to be considered
and all options made available on the chance that it does.
Managers can often identify and determine the possible risks but sometimes they may need to
employ an expert in the field. Experts can include risk assessors, insurance assessors or someone
with prior knowledge of the risk. Contingency planning allows for these factors to be considered in
the event that a risk factor becomes a reality and should be flexible on the chance that a situation
requires adapting to.
Contingency plans can include the following aspects:
Description of the possible nature of the risk
How the risk is going to impact the organisation if it
occurs
Financial implications if the risk occurs
Options for response
Cost of response options
How the options chosen will affect team members.
In organisations, the main factors that need to be considered when making plans and contingency
plans for employee relations are causes of possible conflict, such as:
Ineffective or insufficiently trained staff
Unfair treatment
Unclear job roles
Poor communication
Poor work environment
Equal opportunities
Bullying and harassment
Unresolved historical issues
Increased workload on workers.
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Managers need to be given the authority to make decisions based on possibilities and other
scenarios presented on the chance that a risk occurs.
Plans should be as concise as possible and
should include:
A definition of the situation that could occur
An outline of how the organisation will continue to operate if the scenario or
situation does occur
Variable factors
Costing and suggested budgetary requirements
to implement the options
Timeframes and deadlines for the options to be
implemented.
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Activity 2A
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2.2 – Make arrangements for training and development for identified needs
to support the employee relations plan
Training can be the key to the success of the introduction of new employee policies and strategies.
Often among employees there will be some resistance to change, it is not necessarily the change
that employees resist it is the impact that the changes may have on them personally. This is where
training can help; it can inform employees, identify difficulties and provide solutions, enabling the
implementation processes to run as smoothly as is possible.
Training
What does the training involve?
Training will mean making sure that everybody is aware of the policies and procedures; this may
involve:
When devising training for staff, do so with care and
concern for the emotions that can occur when
discussing employee relations policy or procedural
changes
Face to face training is highly recommended rather
than online or virtual training as it evokes emotional
responses which cannot be monitored online or
virtually
Listening to the concerns of staff and be willing to
compromise if that is possible. Not all policies and
procedures are written in stone
Establishing an open line of communication to the Human Resources (HR)
department or whomever is authorised to handle training questions
Consulting with unions or staff representatives.
Formalise the acceptance of training
Upon communicating policy and procedures it is good practice to have each employee sign an
acknowledgement of having been trained on the relevant information. It should be part of this
acknowledgment that they also understand the new policy and procedure requirements and are in
agreement with the details.
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Possible conflicts
You should anticipate potential industrial relations conflicts and negative handling of the requested
actions if they occur. When issues do arise respecting the way an employee feels paves a much
better path for gaining full acceptance of the policies and procedures and any changes that may
directly affect the individual. Allow employees to express their concerns but promote the positive
attributes, particularly as they relate to employees and the how important these policies are to the
organisation
Ease of access
You should ensure that all policies and procedures are easily accessed to all employees after the
training.
Ways to do this may include:
Your website
Intranet
Company newsletters
Bulletin boards
Hard and electronic copies
A manual or document that is easily accessible.
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2.3 – Undertake associated employee relations activities to reach agreement
on changes required by the organisational policies or implementation plan
Involvement practices
When there is change there will always be some resistance, involving employees in the planning and
implementation of polices can assist in alleviating concerns of employees. Generally employees that
are better informed about their workplace are more likely to have higher performance. Ramsey
(1996 cited in Gennard and Judge 2006) argued that the improved economic performance stemming
from participation is the result of employers being able, on behalf of their employees, to change
employees’ attitude, to increase their business awareness, to improve their motivation, to enhance
their influence/ownership and to involve their trade unions.
Ways to alleviate the concerns of employees may include:
Communication practices
Workplace meetings
Problem solving practices
Financial practices.
Communication practices
Briefings
This form of involvement would usually be ‘cascaded’ down from management to the supervisors
and then on to the general workforce. This method of communication is not without its problems
often the information can become watered down and quickly become out of date by the time it
reaches the workers.
Workplace meetings
This method of communication can be effective in that it gives management at all levels the
opportunity to communicate, then allows the opportunity to have questions raised and answers
presented.
Staff newsletters
This is a good format to communicate as it is permanent record and cannot be watered down.
However, each member of staff must be given access to the newsletter. An efficient way of
distribution is needed, such as enclosing a newsletter with every employees pay slip, or posting on
staff notice boards and encouraging employees to take the time to read it.
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Problem solving practices
Suggestion schemes
This is a formal method of allowing employees to communicate their ideas to management so that
they can consider a wide range of areas and review work practices and operations.
Employee attitude surveys
These are used periodically to discover how employees feel about
particular aspects of their work.
Financial practices
Profit-related bonus schemes
This gives employees rewards for their contribution to the
organisation. It works by linking a percentage of employees’ pay
to the profits of the organisation.
Deferred profit schemes
This is where profits are put into trust funds to acquire shares in
the organisation for employees.
Employee shared ownership schemes
This gives employees a stake in the ownership of the organisation. It gives the employee shareholder
rights and encourages them to have a long term commitment to the organisation.
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Activity 2B
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2.4 – Ensure procedures for addressing grievances and conflict to
stakeholdersare properly documented
Grievances
A grievance is a complaint, problem or concern that an individual may want to take up with their
employer. Grievances usually arise when an employee feels that a decision or behaviour by another
individual or party is unfair or unjust. Not all grievances are justified and management can argue that
there is legitimate reasoning for the action or decision being taken. It is essential that all
management have adequate training to be able to deal with grievance situations and have the ability
to discern between legitimate and non-legitimate grievances.
The grievance procedure should be clarified as part of the induction
of all employees. Organisations will often include grievance
procedures in the employee handbook or display it on a notice
board.
The grievance procedure itself should set out clearly what an
employee needs to do if they have a complaint, problem or concern
and who they should discuss this with.
Documenting the process
Throughout the grievance management process, accurate documentation and records must be
prepared by the relevant parties, except when it is not appropriate such as when the grievance is
dealt with informally. However, keeping a log of the informally solved grievances may become useful
if the same employee raises a similar issue or complaint in the future.
If the grievance is to be formally investigated, the grievant and the respondent should each be asked
to document their position and the nominated supervisor or Executive Staff member conducting the
investigation should properly document the proceedings. Your organisation may already have record
forms for this purpose.
You may also need to complete other documents or records including items such as:
Confidentiality agreements
Investigation request
Witness statements
Actions taken documentation
Any signed or written agreements between the involved parties.
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2.5 – Communicate key issues about procedures for addressing grievances
and conflict to stakeholders
Dealing with grievances
The grievance procedure benefits the employees and gives them an understanding of how their
concerns may be dealt with.
The purpose of the grievance procedure is:
To ensure fair and consistent treatment of all employees
To reduce inconsistencies,
To clarify how each case will be dealt with
To maintain good employee-employer relations
To avoid disputes and possibility of legal action against
the employer.
Policy statement
The policy statement defines in advance how the organisation intends to deal with the grievance
and will include:
The stages of proceedings
Timeframe
Representation
The monitoring and reviewing processes.
Stages
These will state the typical stages of the procedure. The following is an example:
Stage One – A formal grievance should be raised with your supervisor or direct line manager either
orally or in written format, in the instance where the grievance is related to that individual you
should raise the concern with their supervisor. This should be dealt within five working days.
Stage Two – If the matter is not resolved within the agreed timeframe, you may refer it to the next
level management. You or your representative should clearly state your reason of complaint and on
what grounds you feel it is justified. A meeting should take place within seven days of the request.
Stage Three – If the matter is not resolved at stage 1 or 2 or within the agreed timeframe, you or
your representative may apply in writing to the next level of management. A meeting will normally
take place to consider the matter within ten days of the request being made. The decision of the
divisional executive is the final stage and a response will be given in writing.
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Timeframe
Employees will want their grievance settled as soon as possible and would consider their grievance
to be high priority; however, the manager will need to
take time to consider how to approach the grievance and
may need time to consult or investigate the grievance.
Representation
Employers must ensure that they remain fair and assist
employees to have representation, such as a union
representative or an individual who can advocate for the
employee. Often employees can find the grievance
process intimidating and lack confidence especially if the
grievance involves a member of the management team.
The representative will often be from an internal source
of the organisation with a good working knowledge of the
organisation’s policies and procedures, but the
representative must also be non-biased in order to ensure a fair resolution to the grievance.
Monitoring and reviewing
After the resolution of a grievance, the manager should ensure that measures are taken to try to
prevent the same or similar grievance occurring again. Monitoring and reviewing both organisational
practices and employee practices should highlight any issues arising so that managers can deal with
them before they become employee grievances.
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Activity 2C
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2.6 Review employee relations policies and plans to establish whether they
are meeting their intended outcomes
When policies and plans have been implemented it is necessary to review them. The review and
monitoring process will establish whether they are meeting their intended outcomes. There are
various ways in which these policies and plans can be reviewed one of these is the use of feedback.
Trial 360 degree feedback
Trial 360 degree feedback provides an organisation with constructive feedback on how their work-
based behaviour is seen by their colleagues.
It serves a number of functions including:
It is primarily for personal development but can be used for other purposes
Feedback is collected from employees who are asked to complete a questionnaire
that explores how the subject of review influences
their work.
Feedback is usually collected electronically via email or the
web.
The information received in the feedback is combined into a
report of charts, graphs, tables and written comments, that
are fed back to the review subject.
It is called a 360 review because responses will come from people all around the review
subject – their manager, peers and other co-workers, team members, even their clients and
customers can all play a constructive part in providing them with valuable feedback on how they feel
about change and the introduction of new policies and plans in the organisation.
Ask the staff
Common questions managers seek input on include:
How engaged are the employees with their job roles?
How satisfied are they working for the organisation under the new conditions?
What is the communication climate like with management?
Do they have the right tools to do the job?
How secure do they feel in the job?
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Conducting surveys
There are a number of ways to conduct surveys including:
Getting employee feedback – conducting employee surveys on working conditions
Conducting a full-scale employee survey is still the most recommended method for
gaining sound and measurable employee feedback.
Professionals recommend doing surveys on a regular basis, but do not overdo this
as employees will feel intimidated and not take the purpose seriously.
Conduct your employee surveys so that the right questions are asked in seeking the most
informative answers.
Other recommendations include:
Avoid leading questions. A leading question suggests to the employee that the
organisation may expect or desires a certain answer.
Don’t ask double barrelled questions such as more than one topic in a single
question. The survey questions should stick to one topic about the industrial
climate. Multiple answers are of no help in measurement.
Avoid loaded questions. A loaded question asks the employee to rely on their
emotions more than the facts.
Make sure that your employees can easily understand every survey question about
your industrial climate. You will know the level of detail you require first so replace
unusual words, technical words, or jargon with simple, common language that is
used in the workplace.
You should only ask your employees for feedback information on the industrial
climate that they are in a sound position to know firsthand and do not need to
speculate.
Although it is recommended to tailor the specific questions
to your industrial relations issues, most surveys also tend to
discover how connected the employee feels to the
organisation.
Most surveys of this nature can also address if employees
have a good work-life balance, whether they are proud to
work for the organisation and how much effort they put into
their work.
Questions on industrial climate in the workplace can also be
tailored to find out how long the employee plans to stay
with the company or what their feelings are about health
and safety issues.
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Professionals say a mix of quantitative questions — asking employees to rate their
satisfaction on a five-point scale, for instance — should be mixed with open-ended
questions to gain a mix of anecdotal and statistical information.
As for length, experts say a survey with between 35 and 55 questions is the ideal
length, and it should take no more than 15 to 25 minutes to complete.
You should allow sufficient time for employees to complete the survey.
Avoid busy or inappropriate times like holidays or free time.
Anonymity
If the employees are reluctant to complete open surveys or focus groups, provide anonymity. If
employees can be assured their responses won’t lead to any retribution, they are much more likely
to give honest answers.
Online surveys
Online surveys are considered the most efficient method for
surveys, but you’ll need to make sure everyone in the
organisation has access to a computer. This can be done by
setting up a dedicated computer station in the human
resources office or by scheduling time for workers to use a
certain computer terminal.
Encouragement from management
A successful push for employee engagement has to be believable. That’s why experts say if you really
want to hear from your employees, you should have your senior executives encourage feedback on
a regular basis or send out reminders.
Incentives
While experts discourage companies from offering direct incentives to individual employees who
participate in feedback opportunities, other methods are available such as offering an open style
raffle or monthly prize of something substantial like an iPad or iPod etc.
Offers of donating money per response to a charity if the surveys reach a certain response level is
not always regarded as an ‘incentive’ as typically the ‘out’ by the employee is they don’t agree with
the charity.
The worst thing for your organisation is to go to great lengths to solicit employee feedback and then
do nothing with it.
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Activity 2D
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3. Manage negotiations to resolve conflict
3.1 Train individuals in conflict-management techniques and procedures
3.2 Identify, and where possible alleviate or eliminate, sources of conflict or grievance
according to legal requirements
3.3 Check documentation and other information sources to clarify issues in dispute
3.4 Obtain expert or specialist advice and/or refer to precedents, if required
3.5 Determine desired negotiation outcomes, negotiation strategy and negotiation timeframes
3.6 Advocate the organisation’s position in negotiation to obtain agreement
3.7 Document, and if necessary certify, the agreed outcomes with the relevant jurisdiction
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3.1 – Train individuals in conflict management techniques and procedures
There are many ways to resolve conflicts – surrendering, running away, overpowering your
opponent with violence, filing a lawsuit, etc. Conflict resolution grew out of the belief that there are
better options than using violence or going to court. Today, conflict resolution is used in a wide
range of industries covering an array of different situations.
It is very easy to view all conflict as negative, but this is not true. We are all different and those
differences can sometimes emerge as conflict. Viewing conflict in this way can help us consider the
possible positive outcomes of the problem at hand.
Conflict
Wherever people live and work together there will be tensions and disagreements. Whilst some are
relatively minor skirmishes which soon blow over, others become entrenched and simmer away for
years. A few escalate and explode into serious strife.
Some examples of conflict can include:
Executives receive a 10 per cent pay increase whilst shop floor employees are laid
off.
An employee gains permission to work from home whilst other employees are
refused.
One department refuses to work with another due to a personality clash with
management.
One employee is bullied by their supervisor.
Conflict can also be healthy for an organisation. Conflict can sometimes increase motivation and
competitiveness in certain situations.
Two companies vie for the top market share.
Several sales people work to be the top salesperson.
Australia works towards winning the Rugby World Cup.
These examples of conflict can result in greater success, whether it means
a better product, better teamwork, better processes, lower prices,
trophies, or medals, etc.
Everyone experiences conflict – it’s how you deal with it that matters.
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Effective conflict resolution
Conflict resolution can be obtained in many different ways, from mutual agreement to completely
wiping out your opponent. Few of us can deny that the conflict of World War 2 was eventually
resolved, but at what cost? If Germany had won the war, this would also mark the resolution to the
conflict. This would imply that conflict resolution has no right or wrong outcome, only a subsidence
of the conflict. Effective conflict resolution implies a satisfactory outcome to the conflict which
satisfies all parties.
Some common conflict resolution terms include:
Mediation: a process to resolve differences, conducted by an impartial third party
Mediator: an impartial person who conducts a process to resolve differences
Dispute resolution: the name given to any process aimed at resolving differences
between two parties
Apparent conflict: a situation where the conflict is in the open
Hidden conflict: a situation where the conflict is not in the open
Destructive conflict: can result in heavy organisational and personal costs
Constructive conflict: can enhance problem solving, and decision making.
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Conflict comes in many forms, and our process will help you in any situation.
Below, you can find a brief overview of how we are going to spend most of this workshop:
Although we have outlined the various conflict resolution phases in a particular order and with a
particular grouping, that doesn’t mean that you have to use all the phases all the time.
Effective conflict resolution styles
As with many subjects that improve our working or personal environment, effective conflict
resolution has five widely accepted styles and processes. We will concentrate during this workshop
on the collaborative style. There may be some situations that require a different style so during this
section of the workshop we will touch on the other four styles.
Understanding all five styles and knowing when to use them is an important part of successful
effective conflict resolution.
• Defuse emotions
• Set ground rules
• Set the time and place
Create a
communicative
atmosphere
• What do I want?
• What do you want?
• What do we want?
Mutual
understanding
• Identify common ground
• Build positive energy and good will
• Strengthen the partnership
Individual and
shared needs
• Examine root causes
• Create a Fishbone diagram (for complex issues)
• Identify the benefits of resolution
Go to the root cause
• Generate, don’t evaluate
• Create mutual gain options and multiple option
solutions
• Dig deeper into the options
Create options
• Create criteria
• Create the shortlist
• Choose a solution
• Build a plan
Solution building
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The five styles include:
Collaborating
Competing
Compromising
Accommodating
Avoiding.
Collaborating
Collaborating is both assertive and cooperative — the complete opposite of avoiding. Collaborating
involves an attempt to work with others to find some solution that fully satisfies their concerns. It
means digging into an issue to pinpoint the underlying needs and wants of the two individuals.
Collaborating between two persons might take the form of exploring a disagreement to learn from
each other’s insights or trying to find a creative solution to an interpersonal problem. This is the
approach that we will use during this workshop.
The collaborative approach encourages parties in conflict to work together to develop a win-win
solution. This approach promotes assertiveness (rather than aggressiveness or passiveness).
This style is appropriate when:
The situation is not urgent.
An important decision needs to be made
The conflict involves a large number of people
Previous conflict resolution attempts have failed.
This style is not appropriate when:
A decision needs to be made urgently
The matter is trivial.
Competing
Competing is assertive and uncooperative — an individual pursues his own concerns at the other
person’s expense. This is a power-oriented mode in which you use whatever power seems
appropriate to win your own position — your ability to argue, your rank, or economic sanctions.
Competing means “standing up for your rights,” defending a position which you believe is correct, or
simply trying to win.
With a competitive approach, the person in conflict takes a firm stand. This style is often seen as
aggressive because it causes the other party to feel injured or stepped on.
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This style is appropriate when:
A decision needs to be made quickly
An unpopular decision needs to be made.
Someone is trying to take advantage of a situation.
This style is not appropriate when:
People are feeling sensitive about the
conflict.
The situation is not urgent.
Compromising
Compromising is moderate in both assertiveness and cooperativeness. The objective is to find some
expedient, mutually acceptable solution that partially satisfies both parties. It falls intermediate
between competing and accommodating. Compromising gives up more than competing but less
than accommodating. Likewise, it addresses an issue more directly than avoiding, but does not
explore it in as much depth as collaborating. In some situations, compromising might mean splitting
the difference between the two positions, exchanging concessions, or seeking a quick middle-ground
solution.
With the compromising approach, each person in the conflict gives up something that contributes
towards the conflict resolution.
This style is appropriate when:
A decision needs to be made sooner rather than later
Resolving the conflict is more important than having each individual “win”
Power between people in the conflict is equal.
This style is not appropriate when:
A wide variety of important needs must be met
The situation is extremely urgent
One person holds more power than another.
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Accommodating
Accommodating is unassertive and cooperative – the complete
opposite of competing. When accommodating, the individual neglects
his own concerns to satisfy the concerns of the other person; there is
an element of self-sacrifice in this mode. Accommodating might take
the form of selfless generosity or charity, obeying another person’s
order when you would prefer not to, or yielding to another’s point of
view.
This style is one of the most passive conflict resolution styles. With this
style, one of the parties in conflict gives up what they want so that the
other party can have what they want. In general, this style is not very
effective, but it is appropriate in certain scenarios.
This style is appropriate when:
Maintaining the relationship is more important than winning
The issue at hand is very important to the other person but is not important to you.
This style is not appropriate when:
The issue is important to you
Accommodating will not permanently solve the problem.
Avoiding
Avoiding is unassertive and uncooperative — the person neither pursues his own concerns nor those
of the other individual. Thus he does not deal with the conflict. Avoiding might take the form of
diplomatically side stepping an issue, postponing an issue until a better time or simply withdrawing
from a threatening situation.
People who use this style tend to accept decisions without question, avoid confrontation, and
delegate difficult decisions and tasks. This is another passive approach that is typically not effective,
but it does have its uses.
This style is appropriate when:
The issue is trivial.
The conflict will resolve itself soon.
This style is not appropriate when:
The issue is important to you.
The conflict will continue or get worse without attention.
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Creating communicative atmospheres
Creating a communicative atmosphere is a very important step in the effective conflict resolution
process. The people involved in the conflict will typically be negative. With emotions like anger,
frustration, and disappointment being only a few roadblocks you will have to contend with. By
establishing a positive communicative atmosphere, you can begin to turn that negative energy
around, and create a powerful problem-solving force. This creates a sound foundation for the
effective conflict resolution process to start.
Defuse emotions
Before beginning the effective conflict resolution process, there must be a willingness by both
parties to resolve the conflict. This may seem a an obvious requirement but in some competing
conflicts one party may not wish to discuss if there is any hint they may need to give any ground.
Without buy-in from both sides, achieving a win-win solution is close to impossible.
Once participants have agreed that they do wish to resolve the conflict, it is important to defuse as
many negative emotions as possible. This requires you to allow the participants in the conflict time
to vent and work through the feelings associated with the conflict.
Key steps for the people in conflict include:
Accept that you have negative feelings and that these feelings are normal.
Acknowledge the feelings and their root causes. Example: “I feel very angry that
Marie never offers to make the tea.”
Identify how you might resolve your feelings. Example: “If Marie would offer to
make the tea occasionally instead waiting for me to make it.”
This can generate ideas about what the root cause of the conflict is, and how to resolve it. Example:
“Marie’s work may be heavier than mine. I wonder if she might be having some stress and anxiety
regarding her time.”
Setting ground rules
Ground rules provide a framework or a set of rules for people to resolve their conflict. Ground rules
should be set at the beginning of any effective conflict resolution process. They can be very brief or
very detailed – whatever the situation requires.
Ground rules should be:
Developed and agreed upon by both parties
Positive when possible
Fair to both parties
Enforceable
Adjustable
Distributed to both parties who agree to the rules prior to the meeting taking place.
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If the parties are using a mediator to help them resolve the conflict, it is important that the ground
rules are developed by the parties and not the mediator. The mediator’s role is to guide and mentor,
not to judge.
Some examples of ground rules include:
Keep interactions respectful, even when feeling frustrated or hurt. Avoiding put-
downs, name calling, interruptions, etc. This helps prevent conflict escalation
Maintain emotional control, even when feeling angry. Vent or redirect emotions to
avoid yelling or other intimidating behaviour. This helps provide a safe environment
for resolving differences
Keep interactions on “hot topics” within a structured process. Avoiding
spontaneous discussions on such issues helps prevent unintended “blowups.” Using
a planned negotiation or mediation helps focus and balance communication about
especially delicate issues
Show a willingness to understand. If others feel understood and acknowledged,
they are more likely to collaborate when problem solving. This requires focusing on
and empathising with what is being communicated by others rather just waiting for
a turn to respond
Communicate honestly and openly. Holding back on what the real concerns are will
only delay or complicate the resolution of differences
Be as objective as possible. Avoid speculation, rumours, and assumptions. Rely on
personal observations and experiences or what can be independently verified
through a credible witness or available documentation
Express concerns in a constructive manner. Each party describing which of his/her
needs are not being met is typically better received by others than accusations or
demands for change
Focus on future solutions rather than past blame. Emphasising what needs to be
changed rather than who is at fault takes less time and energy and increases the
chances of successful change
Look for solutions that meet everyone’s needs. Using an approach that tries to find
common ground or shared interests is the most effective way for each person to get
his/her own needs met. An approach that disregards a person’s needs is likely to
cause resentment in that individual, which can lead to future resistance or
retaliation.
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Participants can use the ground rules throughout the conflict resolution process to monitor and
modify their behaviours. Ground rules give participants an objective, logical way of addressing
personal attacks and emotional issues.
An example: “David, I feel like you have cut off my last statements. We agreed at the beginning of
this that we would listen to each other’s statements fully before answering.”
If the conflict is being mediated, this also gives the mediator a fair way to give participants feedback
and help them work with the conflict. Since the same rules are being applied to everyone, it can help
the mediator maintain fairness and avoid bias.
Choosing the time and place
Thoughtful consideration of the environment in which the discussions are to take place are very
important. The correct location enhances the parties’ commitment, supports quality decision-
making, and can enhance the appearance of the mediator’s neutrality. It could be the most
important decision made by the mediator.
The environment should include physical surroundings that affect people’s bodily comfort levels. It
also should include some less tangible elements: the parties’ relative levels of power, their feelings
of safety, and arrangements that convey respect.
You should remember to bring flip charts, markers, calculators, and
notepads for the parties. Make sure the facility has available phones,
fax machines, laptop computers, and printers. If you feel it necessary,
make tissues available. On-site issues relieve emotional parties of
embarrassment and tension. They communicate a clear nonverbal
message that crying is an acceptable and normal event that happens
during this stressful time.
Make sure that there is lots of time allowed. Minimise distractions if
possible: turn cell phones off, forward office phones to voice mail and
turn off computers.
If you are mediating a conflict resolution meeting, be conscious of the needs of both parties when
scheduling the meeting. Make sure that the time chosen works well for both of them. Choose a
location that is neutral (one that they are both comfortable with or that neither has visited before).
Removing distractions will enable both parties to concentrate on the matter at hand: resolving the
conflict.
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Activity 3A
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3.2 – Identify, and where possible alleviate or eliminate, sources of conflict or
grievance according to legal requirements
Alleviating conflict
Conflict in the work place should not always be viewed negatively, often out of conflict new
solutions can be conceived. However conflict can become destructive and quickly spiral out of
control. Identifying possible sources of conflict early can prevent them becoming major issues.
There may be signs in the organisation that difficulties are impending; these could include:
Staff absence increases – some employees find it difficult to cope with stress and
may feel the need to take sick leave
Decreased productivity – workers are less likely to be focused on their job and more
likely to make errors and do their work more slowly
Increase in resignations – some workers may not want to be confrontational and
rather resign and move to another job
Behavioural changes – employees may turn up for work late,
become more emotional, withdrawn or become aggressive
towards other members of staff or management
Increase in workplace injuries – employees under stress are
more likely to injure themselves
Increase in complaints and grievances – staff may be
approaching management with complaints a pattern may
emerge that the complaints or grievances may have a
common factor linking them
Bickering and backbiting – employees may bicker or form
cliques
Low morale – staff may become disenchanted or lack motivation
Increase in employees accessing support services – staff may seek advice or help
form support services within the organisation such as counselling services.
Negative feedback – employees may express their dissatisfaction with areas within
the organisation such as management, workload, decision making during annual
appraisals or when conduction staff surveys.
Part of your role as manager is to identify the above factors and investigate the root cause. There
are some measures you can implement to alleviate or even eliminate these issues before they
escalate.
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Communicate with employees
If it’s an interpersonal issue between two or more parties talk with those involved, ensuring that the
discussion remains private. Act as a mediator between the parties, remain unbiased and don’t take
sides allowing the parties involved to air their issues.
Be approachable
Become approachable to staff so they can come to you with their issues. Keep conversations
confidential except in circumstances were other parties may be at risk of harm. However if an
employee discloses that another party or
themselves may be at risk of harm, then you
must inform the individual that you intend to
disclose the information to either a specialist or
another party that may be able to help with the
issue.
Train employees
Train employees in conflict resolution skills and
how to communicate properly. The goal is that
your employees know how to discuss their
problems in an effective manner that prevents
conflicts from developing. Show them how to
communicate by using a respectful tone,
choosing the right words, actively listening, and
remaining nonthreatening towards coworkers.
Teach everyone conflict-resolution skills and
expect all employees to use them.
Encourage fun
Promote the benefits of humor at work. The workplace should be not only a challenging and creative
place; it should also be a place that employees enjoy. Add fun to meetings when you can. Start a
meeting with a funny story or joke. Bring fun things into the workplace. It should be stated that
inappropriate or offensive humor is off limits.
Establish expectations
Clearly state all of your expectations. People work best when they know what to expect at work and
what is expected of them. State expectations through positive directives and always follow through.
Employees need to know their responsibilities, the roles others play, and how these duties relate to
each other. Ensure employees know the codes of conduct they are expected to abide by.
Be positive
Be positive and give your employees praise and feedback. Take the time to offer words of approval.
Being positive will generate positive results. Show your employees that you appreciate their efforts
and accomplishments. Offer insight into how employees can improve, and always keep your
comments work related. People work best when they hear positive words. Encourage your
employees to talk about the positive aspects of their job as well.
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Be a role model
If you are seen taking a passive-aggressive approach when dealing with your own conflicts and
issues, your employees are more likely to behave passive-aggressively when involved in their own
quarrels. Model the behavior you want your employees to exhibit.
Establish boundaries
Without boundaries, there are more likely to be workplace conflict
and power struggles. Be professional while being empathetic and
compassionate towards your employees.
Implement behavioral consequences for employees who are
uncooperative – Despite all of these strategies, you could have an
employee who just won’t change, either because they are unwilling
or unable. Explain the consequences and follow through if the
employee still remains unresponsive.
Collective disputes
Often conflict and grievance can involve an employee collective often in cases of poor work
environment or increased workload. These situations are dealt with through the grievance
procedure, but can often lead to workplace disputes.
Increasingly alternative dispute resolution is being used to deal with disputes, this kind of
resolution process can be:
Facilitative
Advisory
Determinative.
Alternative dispute resolution can help individuals and parties through the following methods:
Conciliation – Requests for conciliation in collective disputes often come from the employer trade
unions or representatives. Conciliation is a voluntary process for all parties with no commitments,
only the willingness to discuss the issues. This is a process in which the parties, with the assistance of
the conciliator, identify the issues in dispute, develop options, consider alternatives and endeavour
to reach agreement. A conciliator will provide advice on the matters in dispute and/or options for
resolution, but does not make a determination. The conciliator is responsible for managing the
conciliation process.
Mediation – If the conciliation process is unsuccessful and no settlement can be reached then
mediation may be the answer. It is a voluntary process in which the parties to a dispute, with the
assistance of a neutral third party (the mediator) identify issues, consider alternatives, develop
options and endeavour to reach agreement. The mediator has no advisory or determinative role on
the content or outcome of the dispute but may offer advice on the process for resolving the dispute.
Mediation is usually conducted in private and the outcomes are confidential to the parties to the
mediation.
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Arbitration – This is a process in which the participants to a dispute present arguments and evidence
to a dispute resolution practitioner (the arbitrator) who makes a binding decision. Unlike in the
conciliation and mediation process the employer does not retain control all parties before the
arbitration process begins must agree by the arbitrator’s decision.
For more information on Alternative dispute Resolution go to The National Advisory Council on
Alternative Dispute resolution (NADRAC) website www.nadrac.gov.au.
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Activity 3B
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3.3 – Check documentation and other information sources to clarify issues in
disputes
Checking documentation
Management should keep up to date records regarding any complaints, concerns, disputes of
grievances. In some cases this may be HR’s responsibility if it is relating to an individual’s dispute; for
example in the case of an employee claiming discrimination. Often cases can be dealt with informally
without the need to go into grievance procedures, however all cases should be documented
Communicating with employees is one of the most important things you do in your job as a
manager. Your written communication must be clear, accurate and timely. When an employee has a
performance, conduct problem or dispute your documentation may be the tool that helps the
employee or employer identify and clarify the issues. A secondary benefit of documentation is that is
protects the organisation and employee from losing complaints, appeals and grievances.
Objectivity is the first step of effective communication. Effective organisational decisions and
effective documentation are based on an objective analysis of factual information. Your analysis
must consider all available information and be free of emotion and bias.
Getting the facts
Facts are the key to effective documentation. You must describe an employee’s conduct and / or
performance objectively. Effective documentation is factual and specific, so that the employee, your
manager and any third party will get a clear picture of situation.
Record all events as soon as possible. Contemporaneous evidence carries more weight in a
proceeding or court than a reconstruction of events from memory after time has passed.
In documenting the facts surrounding an incident, dispute or grievance, it is advisable to:
Be factual and specific, recording what people actually say and did. Answer the
questions:
o What happened? – was there a specific incident that triggered the
complaint?
o When did it happen? – be specific about dates, and timings
o Who was involved? – include all parties and individuals that were involved or
may have witnessed the incident
o How did it happen? – if it was a specific incident, or conversation what
occurred before and after the incident
Be sure the dates, times and places your list are accurate.
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Do not use subjective thoughts, assumptions, opinions, judgments, or conclusions.
They will not stand up to scrutiny by a third party unless objective facts are
provided to support them. Instead, describe your direct observations of the
employee’s behaviour or record the direct observation of others. An excellent way
to do this is to use words that describe your five senses:
o I heard…
o I touched…
o I smelled…
o I tasted…
If there was another witness to an incident, you should attempt to get a signed
statement from that person. When another person describes an employee’s
behaviour, you should ask questions to help the person use objective observations
to describe what they saw, heard, felt, tasted, and touched.
Always write for the benefit of a third party. Don’t assume the person reading the
documentation knows anything about the organisation or the duties performed in
your workplace.
In addition to witness statements, you should also collect any other reports or
records that exist (e.g., accident reports, police reports, time cards, computer
records, etc.) that can help you explain what happened. Also, you should take
photographs, videotape, etc. if they will help document the incident.
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Activity 3C
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3.4 – Obtain expert or specialist advice and/or refer to precedents, if
required
You may not always be able to resolve workplace grievances before escalation, but either way you
may need to contact employee relations experts to help with the situation. You may have had the
guidance of a supervisor or manager to deal with the grievance but they could possibly refer you to
an expert who you will need to contact for further advice.
Specialist advice
Employee relations expertise may include:
Employment relations consultants
Industrial relations and employment lawyers
Industry peak bodies or chambers of
commerce
HR officers and managers.
You will need to decide on the most appropriate expert with the supervision of a supervisor or
manager. Once you have decided who can help with the situation, you will need to contact them,
giving them details of the issue. There may be occasions when you seek an expert’s advice about
general issues rather than a specific case, so you should always be prepared to communicate with
such specialists. HR officers and managers will always be present within most organisations to aid in
KEY FEATURES OF RELEVANT INDUSTRIAL RELATIONS LEGISLATION OR REGULATIONS …………………………………… 24
Key sources of expert industrial relations advice …………………………………………………………………………………………………………. 24
Fair Work Ombudsman ………………………………………………………………………………………………………………………………………. 24
Employee entitlements …………………………………………………………………………………………………………………………………………… 24
Pay ……………………………………………………………………………………………………………………………………………………………………. 24
Awards and agreements ………………………………………………………………………………………………………………………………………… 25
Leave …………………………………………………………………………………………………………………………………………………………………. 25
Ending employment ………………………………………………………………………………………………………………………………………………. 25
Best practice for small business ……………………………………………………………………………………………………………………………….. 26
Employing people with a disability ………………………………………………………………………………………………………………………….. 26
Employing Indigenous Australians …………………………………………………………………………………………………………………………. 27
Paid parental leave ……………………………………………………………………………………………………………………………………………….. 27
The Fair Work Commission …………………………………………………………………………………………………………………………………. 27
The Fair Work system …………………………………………………………………………………………………………………………………………. 28
The Workplace Gender Equality Agency ………………………………………………………………………………………………………………… 29
Trade unions ……………………………………………………………………………………………………………………………………………………….. 30
Employer bodies/associations …………………………………………………………………………………………………………………………………. 30
IDENTIFY THE SKILLS AND KNOWLEDGE NEEDED BY MANAGEMENT AND THE
WORKFORCE TO EFFECTIVELY IMPLEMENT THESE STRATEGIES AND POLICIES ………….. 32
DEVELOP AN IMPLEMENTATION PLAN AND A CONTINGENCY PLAN FOR THE EMPLOYEE
RELATIONS POLICIES AND STRATEGIES ………………………………………………………………………………. 35
MAKE ARRANGEMENTS FOR TRAINING AND DEVELOPMENT FOR IDENTIFIED NEEDS TO
SUPPORT THE EMPLOYEE RELATIONS PLAN ………………………………………………………………………. 37
THE TRAINER ………………………………………………………………………………………………………………………………………………………… 37
TRAINING DELIVERY ……………………………………………………………………………………………………………………………………………. 38
TRAINING SCHEDULING ……………………………………………………………………………………………………………………………………….. 39
UNDERTAKE ASSOCIATED EMPLOYEE RELATIONS ACTIVITIES TO REACH AGREEMENT
ON CHANGES REQUIRED BY THE ORGANISATIONAL POLICIES OR IMPLEMENTATION
PLAN ………………………………………………………………………………………………………………………………………… 40
KEY FEATURES OF ENTERPRISE AND WORKPLACE BARGAINING PROCESSES ………………………………………………………. 41
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BSBWRK520 – Manage employee relations
REVIEW EMPLOYEE RELATIONS POLICIES AND PLANS TO ESTABLISH WHETHER THEY
ARE MEETING THEIR INTENDED OUTCOMES ……………………………………………………………………. 47
TOPIC 3 – MANAGE NEGOTIATIONS TO RESOLVE CONFLICT …………………………………………….. 49
IDENTIFY, AND WHERE POSSIBLE ALLEVIATE OR ELIMINATE, SOURCES OF CONFLICT OR
GRIEVANCE ACCORDING TO LEGAL REQUIREMENTS ……………………………………………………….. 52
OBTAIN EXPERT OR SPECIALIST ADVICE AND/OR REFER TO PRECEDENTS, IF REQUIRED
COURTS AND TRIBUNALS ……………………………………………………………………………………………………………………………………… 68
Australia’s workplace relations laws ……………………………………………………………………………………………………………………….. 68
Industrial Relations Australia ……………………………………………………………………………………………………………………………….. 69
Industrial Relations Court of Australia …………………………………………………………………………………………………………………… 70
Trade unions ……………………………………………………………………………………………………………………………………………………….. 70
Employer bodies/associations …………………………………………………………………………………………………………………………………. 70
KEY FEATURES OF RELEVANT ORGANISATIONAL POLICIES AND PROCEDURES ………………………………………………….. 71
KEY FEATURES OF ORGANISATIONAL OBJECTIVES ………………………………………………………………………………………………. 72
This resource covers the unit BSBWRK520 – Manage employee
relations.
This unit describes the skills and knowledge required to manage employee and
industrial relations
matters in an organisation. It involves developing and implementing employee and industrial
relations policies and plans and managing conflict resolution negotiations.
It applies to those who are authorised to oversee industrial relations and manage conflict and
grievances in an organisation. They will have a sound theoretical knowledge base in human
resources management and industrial relations as well as current knowledge of industrial relations
trends and legislation.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
About This Resource
This resource brings together information to develop your knowledge about this unit. The
information is designed to reflect the requirements of the unit and uses headings to makes it
easier to follow.
You should read through this resource to develop your knowledge in preparation for your
assessment. At the back of the resource are a list of references you may find useful to review.
As a student it is important to extend your learning and to search out textbooks, internet sites,
talk to people at work and read newspaper articles and journals which can provide additional
learning material.
Your trainer may include additional information and provide activities, PowerPoint slide
presentations, and assessments in class to support your learning.
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BSBWRK520 – Manage employee relations
About Assessment
Throughout your training we are committed to your learning by providing a training and
assessment framework that ensures the knowledge gained through training is translated into
practical on the job improvements.
You are going to be assessed for:
Your performance and knowledge using written and practical activities that apply to a
workplace environment.
Your ability to apply your learning to the workplace.
Your ability to recognise common principles and actively use these on the job.
You will receive an overall result of Competent or Not Yet Competent for the assessment of this
unit. The assessment is a competency based assessment, which has no pass or fail. You are either
competent or not yet competent. Not Yet Competent means that you still are in the process of
understanding and acquiring the skills and knowledge required to be marked competent.
The assessment process is made up of a number of assessment methods. You are required to
achieve a satisfactory result in each of these to be deemed competent overall.
All of your assessment and training is provided as a positive learning tool. Your trainer/assessor
will guide your learning and provide feedback on your responses to the assessment. For valid and
reliable assessment of this unit, a range of assessment methods will be used to assess practical
skills and knowledge.
Your assessment may be conducted through a combination of the following methods:
Written Activity
Case Study
Observation
Practical tasks
Short answer questions
Third Party Report
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BSBWRK520 – Manage employee relations
The assessment tool for this unit should be completed within the specified time period following
the delivery of the unit. If you feel you are not yet ready for assessment, discuss this with your
trainer/assessor.
To be successful in this unit, you will need to relate your learning to your workplace. You may be
required to demonstrate your skills and be observed by your assessor in your workplace
environment. Some units provide for a simulated work environment, and your trainer and
assessor will outline the requirements in these instances.
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BSBWRK520 – Manage employee relations
ELEMENTS AND PERFORMANCE
CRITERIA
1. Develop
employee and
industrial relations
policies and plans
1.1 Analyse strategic plans and operational plans to determine long term
employee relations in accordance with organisational objectives
1.2 Analyse existing employee relations performance in relation to
workforce objectives
1.3 Evaluate options in terms of cost-benefit, risk-analysis and current
legislative
requirements
1.4 Work with relevant internal stakeholders to develop industrial relations
policies and plans
1.5 Identify the skills and knowledge needed by management and the
workforce to effectively
implement these strategies and policies
2. Implement
employee relations
policies and plans
2.1 Develop an implementation plan and a contingency plan for the
employee relations policies and
strategies
2.2 Make arrangements for training and development for identified needs
to support the employee
relations plan
2.3 Undertake associated employee relations activities to reach
agreement
on changes required by the organisational policies or implementation plan
2.4 Document procedures for addressing grievances and conflict
2.5 Identify and communicate key procedures for addressing grievances
and conflict to stakeholders
2.6 Review employee relations policies and plans to establish whether they
are meeting their intended
outcomes
3. Manage
negotiations to
resolve conflict
3.1 Develop and deliver training to individuals in conflict-management
techniques and
procedures
3.2 Identify, and where possible alleviate or eliminate, sources of conflict or
grievance according to legal requirements
3.3 Evaluate documentation and other information sources to clarify issues
in dispute and ensure completeness, balance and relevance
3.4 Obtain expert or specialist advice and/or refer to precedents, if
required
3.5 Determine desired negotiation outcomes, negotiation strategy and
negotiation timeframes
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BSBWRK520 – Manage employee relations
3.6 Advocate the organisation s position in negotiation with the view to
reaching a resolution that aligns to organisational objectives
3.7 Document, and if necessary certify, the agreed outcomes with the
relevant
jurisdiction
3.8 Take remedial action where groups or individuals fail to abide by
agreements
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BSBWRK520 – Manage employee relations
PERFORMANCE AND KNOW LEDGE
EVIDENCE
This describes the essential knowledge and skills and their level required for this unit.
Performance Evidence
Evidence of the ability to:
Analyse organisational documentation to determine long-term employee relations
objectives and current employee relations performance
Collaborate with others to develop and review industrial relations policies and plans
Develop implementation and contingency plans for industrial relations policies
Identify the skills and knowledge needed to implement the plan and organise training
and development for self and staff
Document and communicate strategies and procedures for eliminating and dealing
with grievances and disputes
Train others in conflict-resolution techniques
Manage industrial relations conflicts, including advocating the organisation’s position
during negotiations and documenting, implementing and following up agreements.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least
once.
Knowledge Evidence
The candidate must be able to demonstrate the following knowledge to effectively complete the
tasks outlined in the elements and performance criteria of this unit, and to manage tasks and
reasonably foreseeable contingencies in the context of the work role:
Key features of relevant industrial relations legislation or
regulations
Key features of enterprise and workplace bargaining
processes
Key features of relevant entities in the current Australian industrial relations system,
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BSBWRK520 – Manage employee relations
including courts and tribunals, trade unions and employer
bodies
Key sources of expert industrial relations advice
Key features of relevant organisational policies and procedures
Key features of organisational objectives
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BSBWRK520 – Manage employee relations
ASSESSMENT CONDITION S
Assessment must be conducted in a safe environment where evidence gathered demonstrates
consistent performance of typical activities experienced in the workforce development workplace
relations field of work and include access to:
Awards and enterprise bargaining agreements
Relevant legislation, regulations, standards and codes
Relevant workplace documentation and resources
Case studies and, where possible, real situations
Interaction with others.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational
education and training legislation, frameworks and/or standards.
PRE-REQUISITES
This unit must be assessed after the following pre-requisite unit:
There are no pre-requisites for this unit.
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BSBWRK520 – Manage employee relations
TOPIC 1 – DEVELOP EMPLOYEE
AND INDUSTRIAL RELAT IONS
POLICIES AND PLANS
Welcome to the unit BSBWRK520 – Manage employee relations.
This unit describes the skills and knowledge required to manage employee and industrial relations
matters in an organisation. It involves developing and implementing employee and industrial
relations policies and plans and managing conflict resolution negotiations.
It applies to those who are authorised to oversee industrial relations and manage conflict and
grievances in an organisation. They will have a sound theoretical knowledge base in human
resources management and industrial relations as well as current knowledge of industrial relations
trends and legislation.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
In this unit you will learn how to:
Develop employee and industrial relations policies and plans
Implement employee relations policies and plans
Manage negotiations to resolve conflict
Let’s begin!
Developed by Enhance Your Future Pty Ltd 14
BSBWRK520 – Manage employee relations
Analyse strategic plans and operational plans to
determine long term employee relations in
accordance with
organisational objectives
Industrial relations is the balance between people feeling nurtured and capable of doing their jobs
and people performing to meet strategic and operational objectives. Every business thrives on
the strength of its employee base so taking a long-term approach to developing, managing and
retaining employees, provides more reliability and stability and reduces risks. In order to do this,
you will need to analyse both the strategic and operational plans to determine the long-term
employee relations that have existed in the past. This will help you to identify where changes
need to be made and where things can stay the same. If previous employee relations have been
good, then there may be little change required, but, if there have been issues, they may need to be
changed.
There are two approaches to determining long-term employee objectives – firstly setting the
goals and integrating or adding these to other strategic and operational plans. Alternatively, you
can set the plans and identify the industry relations goals and workforce need to support these
plans.
Some of the objectives you might aim to develop through targeting industrial relations
management
include:
Developing culture
Improving employee satisfaction, commitment retention and re-engagement
Working in line with unions and employer representative bodies
Developing workforce knowledge, skills and innovation
Design of position descriptions, individual employee roles, responsibilities and the
benefits and bonuses that may accompany these
Restructure or workplace reform
In order for these goals to be successful, they need to be aligned with the businesses goals,
objectives, values, mission and general approach to business so that the people that fill the roles
and conduct the business do so with appropriate training, support and consistency. It might help
to think of industrial relations as being independent with the goals of the business.
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BSBWRK520 – Manage employee relations
There are many business problem-solving and planning tools that can be used to analyse the
goals for industrial relations and you may have heard of or used these in the past. These tools
and their approach is about incremental change on evolving basis and over a long period of time.
You might consider:
TOOL What is it? PROs CONs LEARN
MORE
SWOT
Analysis
Strengths,
Weaknesses,
Opportunities and
Threats. Some
businesses also
analyse
opportunities
from weaknesses
and threats to
strength.
Can be used on
multiple
business
areas
Quick – can be
brainstormed in a
few minutes and
added to with time
You don’t need
any special skills to
contribute
Can be used one-
to-one, in small
and big teams
Can be too
broad in some
applications
Can be difficult
to use with
people who
find self-
criticism
difficult
Political,
Environmental,
Socio-Cultural and
Technological –
investigates four
areas of the
business and the
impact of and
opportunity for
change in each
area
Quick to use
across the four
core functions of
every business
Can be integrated
into triple-bottom
line reporting and
evaluation
Can be used to
strengthen SWOT
analysis
Particularly useful
for
transformational
change as it looks
at the areas of
influence and
conflict
Some skills of
analysis are
needed to
unpack changes
and
improvements
and embed
across the four
areas
Occurs
infrequently
Some
preparation
required
Needs a leader
or team
directing the
collection of
evidence
A strong approach to analysis involves both types of data – the quantitative identifies that there
is a problem, and the qualitative is often used to explain ‘Why’.
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BSBWRK520 – Manage employee relations
It is important to determine first whether numbers are significant enough to warrant action.
There are a number of ways of doing this involving statistics and probability. It is important to
look at the big picture and patterns also. One person who experiences stress and associated
absenteeism is significant, but it is not a pattern. On the other hand, a decrease in production and
quality and a high level of absenteeism is more significant in regards to the need for change.
Once you have established an area of concern, it is important that either the analysis of the data
you have already collected or a new analytical process is started to determine the possible root
cause of the concern.
Root cause means you that is not always the problem that is the problem! This sounds confusing,
so it can help to think about all of the times you’ve experienced frustration and anger over
something small. Often the problem that has triggered your emotional reaction is just one of a
series of
problems.
For example, the bin overflowing bothers you because you’ve had a bad day, you’ve had a bad
day because you didn’t sleep well, and you didn’t sleep well because the bed is broken in a
number of places. This means that the problem is the broken bed. Someone can empty the bin
for you, but it’s not going to solve the problem.
There is no one tool that works effectively to get to the root cause which means multiple levels
of exploration may need to be applied.
Tools that can help to explain root problem, however, include:
The Five Whys
Cause and Effect
Issues Tables
Initially, narrowing down the area, the type of absenteeism, the types of work and any patterns of
dispute and conflict are enough to move forward with planning.
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BSBWRK520 – Manage employee relations
Evaluate options in terms of cost-benefit, risk-
analysis and current legislative requirements
All options for change, development and restructure must comply with both the needs of the
company at the time and legislation, regulations and industry codes of practice. This should not
stifle innovation or progression, but rather provide for risk mitigation sustainably throughout the
lifecycle of change.
Your options, when it comes to change, should first deal with the obvious and then deal with the
larger problem. This means that, using the example in the previous chapter, if the bed is broken
– fix it first!
Ideation for change is a whole other subject in itself. But consider the following methods when it
comes to tackling problems in your workplace:
Use basic controls – consider the hierarchy of risk control when considering the
types of options. This includes personal protective equipment, administration,
engineered controls, isolation and elimination
Brainstorm – this brings together the collective knowledge of a number of people
who possibly already know how to implement the solution.
Ask the employees – consider holding a consultation meeting or series of meetings to
find out what the employees need or want
Turn to your industry – consult industry groups, networks, peers in other businesses,
specialists and industry web sources
Get expert help – engage specialist HR representatives, experts in the particular
problem, members of other businesses, agencies or unions
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BSBWRK520 – Manage employee relations
Here is what you need to consider:
Consideration What to Consider Where to Learn More
Legislation,
Fair Working
Conditions
inclusive of
The National
Employment
Standards
What are the
current
requirements, how
are you protected,
how are employees
protected, what
resources are
needed/available
http://www.fairwork.gov.au
Health and
Safety
What are the
impacts to health
and wellbeing?
What are the
changes to the work
environment? Will
there be stress
during change and
how will you
manage this? What
will be the business
response to this?
http://www.worksafe.vic.gov.au
Cost vs.
Benefit
What are costs to
the employer and to
the employee and
how does this
compare to the
benefits?
What is the cost of
losing staff with
their knowledge of
the business and
experience in
comparison to the
gain?
Change
Management
What are the risks,
what are the
benefits, what are
the rewards, how
will this affect an
employee’s pay or
hours, what is the
impact on an
employee’s home
life, how does it
change the physical
aspects of the work,
are their new
The Fair Work Commission (FWC), until 2013 known as Fair Work Australia (FWA), is the
Australian industrial relations tribunal created by the Fair Work Act 2009 as part of the Rudd
Government’s reforms to industrial relations in Australia. Operations commenced on 1 July
2009.
The Commission is Australia’s national workplace relations tribunal. It was established by the
Fair Work Act 2009 (Fair Work Act) and is responsible for administering the provisions of the
Fair Work Act.
The Commission’s powers and functions include:
Dealing with unfair dismissal claims
Dealing with anti-bullying claims
Dealing with general protections and unlawful termination claims
Setting the national minimum wage and minimum wages in modern awards
Making, reviewing and varying modern awards
Assisting the bargaining process for enterprise agreements
Approving, varying and terminating enterprise agreements
Making orders to stop or suspend industrial action
Dealing with disputes brought to the commission under the dispute resolution
procedures of modern awards and enterprise agreements
Determining applications for right of entry permits
Promoting cooperative and productive workplace relations and preventing disputes
The Commission and General Manager also have responsibilities in relation to the registration,
amalgamation and cancellation of registered organisations and the making and alteration of their
rules under the Fair Work (Registered Organisations) Act 2009.8
8 https://www.fwc.gov.au/about-us
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BSBWRK520 – Manage employee relations
Industrial Relations Court of Australia
The Industrial Relations Court of Australia (IRCA) is a superior court of law and equity, established by the
Australian Parliament under the Industrial Relations Reform Act 1993 which amended the Industrial Relations
Act 1988. It is equal in status to other national superior courts such as the Federal Court of Australia and the
Family Court of Australia. It consists of a Chief Justice and as many other Judges as hold office under the
Industrial Relations Act 1988. As a consequence of the Workplace Relations and other Legislation Amendment
Act 1996, the Court’s jurisdiction has been transferred to other Courts, mainly the Federal Court of Australia.
On 25 May 1997 the staff and resources of the Industrial Relations Court of Australia were transferred to the
Federal Court of Australia.
Despite the transfer of jurisdiction, the Industrial Relations Court of Australia continues to exist at law until the
last of its judges resigns or retires from office. 9
Trade unions
A trade union is an organisation whose membership consists of workers and union leaders,
united to protect and promote their common interests.
The principal purposes of a labour union are to:
Negotiate wages and working condition terms
Regulate relations between workers (its members) and the employer
Take collective action to enforce the terms of collective bargaining
Raise new demands on behalf of its members
Help settle their grievances10
In order to identify the trade union that meets the needs of your business type you can contact
the ACTU Workers’ Line on 1300 362 223 or check out their website: http://www.actu.asn.au/
Employer bodies/associations
There is a range of employer bodies/associations that you can contact in relation to employee
relations. These include:
Peak organisations
o Australian Council of Trade Unions
o Australian Chamber of Commerce and Industry
o Australian Industry Group
National
o Australian Workers’ Union
o United Voice
State and territory based
o Australian Business Industrial (NSW)
o Union of Christmas Island Worker
o Victorian Employers’ Chamber of Commerce and Industry
There may be other employer bodies or associations that may relate directly to your organisation.
These could be more industry related rather than overarching. You will need to check for the
ones that relate to you.
Key features of relevant organisational policies and
procedures
Industrial relations, often called labour-management relations or labour relations, is the human
resources discipline most often associated with matters involving union workers. Employee
relations is the companion discipline that HR experts typically use when defining the HR
responsibilities for a non-union employee base. Policy development for industrial relations
generally is formed by the employer’s HR department leader; however, if an HR leader is not on
staff, industrial relations policies become the responsibility of the employer’s highest-ranking
manager, such as the company president.
Organisational policies that relate to long-term employee relations objectives may include:
Effective management of grievances, conflict situations and dispute-resolution
procedures
Employee commitment
Employee satisfaction
Job design
Negotiation outcomes
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BSBWRK520 – Manage employee relations
Organisational culture
Relations with unions and other peak bodies
Restructuring
Salary, remuneration, benefits and bonuses
Workforce planning
Workplace reform
Your organisation will have policies and procedures in place so you should identify them and
read them to ensure you are aware of the features of each.
Key features of organisational objectives
Every organisation has objectives. In this case we are talking about the objectives of an
organisation relating to employee relations. Some objectives an organisation may have could
include:
Establish and foster sound relationship between workers and management by safeguarding their
interests.
Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned
parties.
Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic status of
workers.
Provide an opportunity to the workers to participate in management and decision making process.
Raise productivity in the organisation to curb the employee turnover and absenteeism.
Avoid unnecessary interference of the government, as far as possible and practicable, in the matters of
relationship between workers and management.
Establish and nurse industrial democracy based on labour partnership in the sharing of profits and
of managerial decisions.
Developed by Enhance Your Future Pty Ltd 73
BSBWRK520 – Manage employee relations
Socialise industrial activity by involving the government participation as an employer. 11
Discuss the organisations objectives with relevant people to ensure you are aware of them and
can focus on them whilst working. Unless you understand the objectives of an organisation you
cannot become part of the team nor contribute to the implementation any procedures effectively.
2 Are you satisfied with how our sales are processed in terms of speed,
accuracy and the handling of credit or debit cards?
If No, please suggest some changes you would like to see in the future.
_______________________________________________________
_______________________________________________________
_______________________________________________________
Yes
No
3 Are you impressed with the store’s presentation in terms of access in
aisles and at stands, cleanliness, lighting and signage?
Yes
No
4 Are you satisfied with our range of merchandise? Yes
No
5 How many times have you visited this store before today? 1-5
6-10
11-15
More
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6 Which age group do you belong to? 15-25
26-35
36-45
Over 45
Thank you for taking the time to help us to try and improve our service to you.
Your name (Optional): ___________________________________ Postcode: _______
Male
Female
Customer service standards
Customer service policy
Excellent customer service is our number one priority and we expect customers to be
treated with respect. Staff members at all times should do whatever it takes to create a
happy and satisfied customer.
Remember the first impression is very powerful.
Once this has been formed, it takes a long time to change it.
Greeting the
customer
Welcome all customers with “Good morning/afternoon” and with a genuine smile and a
spontaneous approach. Call customers by their name wherever
possible.
Always use eye
contact, good body language and use facial expressions. Then leave the customer to view
store merchandise for a short while before re-approaching.
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Making the customer welcome
In a friendly professional manner, always let the customer know you are there to help. If
you are busy with another customer, advise the customer you will attend to them shortly or
ask another staff member to assist them. By starting a genuine conversation with a
customer you are showing an interest in them and their needs. Asking open questions is a
positive way to keep the conversation flowing.
Product knowledge
All staff members will be correctly trained in all product knowledge, as customers expect us
to educate them and inform them. It is crucial to understand the features and benefits of
each garment and explain to the customer how to care for the item e.g. dry clean only, hand
wash, the need for a water proofing spray.
Farewell the customer
Your farewell statement should be warm, friendly and genuine. You should always include
the words “Thank you. Let me know how the outfit went. Enjoy your day.”
Always invite the customer back to the store. Your excellent customer service will always
make a difference. If you reinforce the customer’s purchase and make the customer feel
good about the item they have purchased, then the customer will leave feeling satisfied
with their purchase instead of wondering did they really need it.
Good customer service is about doing a lot of little things better and about providing
something different and fun to experience.
Dealing with customer complaints
It is a challenge to convert an unhappy customer to a satisfied customer. Most customer
complaints can be resolved at store level, and by following our Company’s three step
procedure, it can be done.
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Step 1: Manage the emotion
Listen to the customer
Show that you are listening by using eye contact. If need be, take notes. Never interrupt the
customer while they are explaining the problem. Assure the customer you can help them.
Empathise with the customer. Put yourself in the customer’s shoes and show you
understand and support them. Use statements such as “I understand your frustration
sir/madam and I am sure we can resolve the problem.”
Apologise
Always apologise for any inconvenience and assure the customer that you or another staff
member can help them. If you do not feel confident, call for your Supervisor. Do not make a
scene.
Step 2: Negotiate a solution
Identify the problem by agreeing with the customer’s complaint. It is paramount all staff
members are correctly trained and have a sound knowledge of store policies and
procedures, specifically the returns and refund policy.
Assist the customer or refer the matter to the Supervisor, who will take the customer to the
Supervisor’s desk. Ask what they would like to see happen, rather than what they want you
to do about it. Don’t let the customer force you into a quick decision.
Step 3: Commit to action
Be positive when resolving a customer’s complaint. Focus on the problem and don’t dwell
on what went wrong. Determine a solution which is acceptable to both customer and the
Company.
Some solutions available are refund, exchange or a credit note. If a resolution cannot be
found at your level, it is Company Policy that a Supervisor attends to the customer.
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Points to remember when dealing with angry customers are:
The customer is always right
Always remain objective while a customer is being abusive
An angry customer should be dealt with quickly and quietly and away from other
B Processing of sales transactions and procedures Employee Supervisor
Follows procedures for all transactions O H S N O H S N
Operates register correctly O H S N O H S N
Maintains cash security and follows cash handling
procedures
O H S N O H S N
Comment: _______________________________________________________________
________________________________________________________________________
C Complaint handling Employee Supervisor
48 | P a g e
Handles complaints confidently and effectively O H S N O H S N
Supervisors are accountable for the working environment under their control and for
ensuring all staff members are given equipment, information and instructions necessary to
ensure a healthy and safe work environment. Supervisors should ensure that individuals
maintain a high level of awareness when it comes to health and safety issues and encourage
all staff to carry out safe work practices by reporting any faulty equipment immediately.
Employees’ responsibility
Employees are expected to take reasonable care with regard to the health and safety of
others at the work place and to co-operate with the employer in ensuring a safe and healthy
work environment. Employees must report potential or health and safety hazards to their
Supervisor using the correct reporting procedures.
The store aims to provide both our staff members and our customers with a safe and
healthy environment. A safe working environment is not something that just happens: you
have to make it happen!
Accident prevention
All employees are to be conscious of the factors that contribute to store accidents.
These factors include such things as:
Slippery floors from oil, chemical or other dripping substances
Electrical equipment with frayed cords
Using ladders incorrectly by not having three limbs on the ladder at all times.
The key to accident prevention is for all staff and management to always maintain:
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Safe environment: inspect your work area regularly for dangerous objects that people could
trip or fall over
Safe equipment: check equipment for faults before use and always use the correct tool for
the job
Safe behaviour: perform your duties in a safe manner and only use equipment you have
been trained to use.
Always remember Prevention is better than cure and you should:
Constantly be on the look out for potential hazards
Never endanger yourself or others for any reason
If you identify a potential hazard take immediate action to prevent an accident occurring
First aid treatment
The store’s safety policy is for all Supervisors to be trained in First Aid Procedures and be
able to remain calm and deal with any emergency situation if it arises.
First Aid boxes are located in every department behind the Supervisor’s desk, cashier’s
office and staff room.
If an accident does occur, and medical attention is needed, you must advise the Supervisor
as soon as possible. Furthermore, if a customer or non-employee has an accident, it is very
important that they are happy with the attention and first aid treatment they are receiving.
Be sympathetic and caring to the person involved, but most importantly, do not admit fault.
For information on recording an accident, refer to your Induction Handbook.
It is extremely important that you make sure after using any medical equipment that it is
cleaned and you have told the Supervisor on duty what was used, so he or she can restock
the First Aid kit. If you can handle the problem, do so, but if not, see your First Aid Officer in
the workplace.
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If an emergency situation arises, the following steps should be followed:
Remain calm and assess the situation
Ensure the scene is safe for you, others and the casualty
Work as a team
Delegate a responsible staff member to keep other customers away from the
incident
First aid treatment for non-electrical burns
Remain calm and assess the situation
Put out the flame
Use plenty of cold water for at least ten minutes or until the ambulance arrives, if
needed
Call 000 for an ambulance
Do not apply creams, ointment or lotions
Do not break blisters
If the patient is in shock, place him or her in the recovery position
First aid treatment for cuts (incisions and lacerations)
Remain calm and assess the situation
Ensure you do not come into contact with the patient’s blood; wherever possible,
use gloves
Check the wound for any foreign matter
Apply pressure to stop any bleeding
If necessary, call 000 for an ambulance
Do not use adhesive dressing
Immobilise and elevate the injured limbs if injuries permit
Do not apply creams or lotions; only use saline lotion if it is available
First aid treatment for sprains
Remain calm and assess the situation
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Ask a responsible staff member to keep the area clear so no one else slips
For the pain:
Use an ice pack
Elevate the sprain
Arrange for someone to assist the customer in getting any further medical treatment
if required
Spillages
Our Company has provided a non-slip floor surface to help minimise the risk of slipping or
falling. There are two main types of spillage: liquid or dry. When you cause or note a
spillage, your responsibility is to prevent an accident occurring by attending to the area in
the appropriate manner until the floor is safe to walk on again.
Guard the spillage to prevent staff members or customers slipping
Ask a nearby staff member to obtain Caution Wet Floor signs and place one at each
end of the spillage
If no one is close by, place a carton or trolley over the spillage
Check to see if the spillage is chemical, which may require special cleaning
Obtain cleaning equipment and clean the floor ensuring every trace of the hazard is
removed
Dry any wet areas
When the floor is completely dry, remove the signs and place them back in to
storage
If a staff member cannot deal with a hazard, you should immediately report to the
Supervisor on duty.
Safe work practices
Always remember with safe work practices: Prevention is better than cure. You should never
endanger yourself or others.
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It is every staff member’s responsibility to play their role in ensuring their work place is a
safe and healthy place to work, and that set standards are met in accordance with
Occupational Health and Safety issues and store policy. All staff members in our store are
responsible to bring work place hazards to the Supervisor’s attention if you cannot deal with
it yourself.
Employees who follow in safe work practices will dramatically reduce the risk of an accident
occurring. Should you have any concerns with safety issues, it is a good idea to report them
to the Store Safety Committee.
Safe manual handling
It is essential that all staff members follow the Manual Handling Code of Practice.
Any manual handling which requires a staff member to exert force to lift, lower, push, pull,
carry or otherwise move, can be at a potential risk of injury. Retail staff will be involved in
manual handling tasks every day. It is important to be aware of the potential for accidents
and know how to prevent them. Being aware and practicing the correct manual handling
techniques will enable you to work accident and injury free.
To prevent or reduce injuries, we need to identify, assess and control manual handling risks.
In our store, these risks relate to our work methods as well as the design of our work areas.
Refer to the Safe Manual Handling manual for more guidelines to assist you in maintaining a
safe work environment. Supervisors are to encourage staff members to follow the
guidelines for safe manual handling as well as attend regular training sessions held by an OH
and S representative.
Broken glass
Broken glass should not be picked up by hand. Always use a dustpan and brush and dispose
of in a safe manner. If there is no recycling bin, then wrap the broken glass in newspaper.
88 | P a g e
Hair
Hair must always be tied back securely and the hairnets and caps supplied are to be worn at
all times when handling food.
Footwear
Suitable footwear helps prevent slips and falls by providing better grip on floors. So, for your
safety, closed in rubber sole shoes are a must in case of an accident.
Protective clothing
Always use all supplied protective equipment and clothing. This equipment is provided for
not only your protection, but for your safety as well. This includes wearing suitable footwear
and uniform for your particular job. Where required, protective clothing is supplied and
must be worn to protect yourself against injury.
This clothing was designed with staff safety in mind, does not restrict movement, and allows
loads to be carried close to the body. If you are spending a long time in the freezer and cold
rooms, use the freezer jackets provided, which are on the hook outside the door of the
freezer.
Gloves
Protective gloves are supplied to protect your hands from cuts, abrasions and extreme
temperatures. To ensure safe handling of food from the oven or freezer, gloves must be well
fitting and not worn through. Mesh gloves are to be worn on your non-dominant hand when
slicing or cutting meat and using the slicing machine.
Aisles and passageways
Always ensure aisles and passageways are free of rubbish, boxes and merchandise, as we
must provide a safe and convenient environment for our customers and staff members at all
times. Never leave cleaning equipment in aisles. Always remember to tidy as you go.
89 | P a g e
Use of equipment
Some of the equipment in your department may be dangerous if used incorrectly. Do not
use equipment until your department Supervisor has shown you how to use it effectively
and safely.
You must sign an acknowledgment form that you have read The Work Safe Practices for
your department. It is your responsibility to use equipment correctly.
If you notice any damaged or faulty equipment, report it to your Supervisor so a tag can be
placed on the item. Never put yourself or others at risk by trying to fix faults. If you see a
piece of equipment with a tag, do not attempt to use it.
Carton cutters
The most common piece of equipment used in all departments is the carton cutter. Carton
cutters are also one of the major sources of injury.
When using a carton cutter, follow these simple rules:
Always keep the blade sharp and cut away from your body
Make sure fingers or other body parts are not in harm’s way
Be careful to avoid damage to yourself or stock – always keep your eyes on your
work
Always retract the blade after use
Do not leave carton cutters unattended in the selling area
Ladders
Safety steps and ladders should be used whenever you have to reach above head height to
perform any of your tasks:
Check the steps and ladders are in good condition before use
All ladders should be adequately supported at the base
Do not use a ladder on a wet, slippery, or uneven surface
90 | P a g e
The person using the ladder must always have 3 limbs on the ladder at all times
A second person should support the ladder
Never climb higher than the third rung from the top of the ladder
Always work within easy arms reach from the ladder
Ladders should be stored away when not in use
Dangerous goods and hazardous substances
Dangerous goods and hazardous substances are goods and chemicals that can cause harm
or injury to one’s health. Our store provides Material Safety Data Sheets (MSDS). These
contain information describing the product’s safe handling instructions, health hazards and
first aid procedures.
Dangerous goods are items, which are explosive, flammable, corrosive, chemical reactive,
combustible, toxic, radioactive or infectious. These substances come in many forms, for
example cigarette lighters, pool chlorine and fire lighters. A coloured diamond on the
packaging can usually identify these products.
Hazardous substances are liquids, solids, vapours, gas, fumes and dust. These all have the
potential to cause harm or injury to one’s health. Some dangerous goods are also hazardous
substances, for example oven cleaner. Colourful writing and warning pictures can identify
these goods.
Safety audits
It is a requirement of our store to carry out regular safety audits to assess any possible
problems or hazards in the workplace. These audits are carried out on a weekly basis.
Employees should inform their Supervisor or Manager of any hazard or safety issue they
have come across. When recognising a hazard, Supervisors are to carry out inspections of all
areas in their specific department with employees identifying everything that could possibly
be harmful. Information gained from carrying out an inspection is essential for ensuring the
workplace is safe and assists in recognising training needs.
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By using a checklist to identify risks, Supervisors will be able to recognise safety factors such
as:
What moves
What substances you work with
What equipment you use
How and where you use these things
The way you do things
Cleaning, maintenance and repairs.
Potential hazards
Avoiding hazards, such as the following, will not only eliminate potential risk, but also
ensure that in case of a more serious problem, quick and safe evacuation can be carried out
in an emergency:
Floor hazard in spills and boxes left lying around
Bad lighting, damaged equipment, fixtures and fittings
Trolleys, ladders or shelving not put back in correct place
Stock that has been packed away or stacked incorrectly
Risk control
To be able to provide a healthy and safe work environment, our store must have the
following process:
Identify hazards in the workplace
Assess risks that may result from a hazard
Control those risks
For more information on risk control, please refer to the Maintain Store Safety brochure.
OH and S issue resolution
What procedures should you follow if you notice an OH&S issue in your store?
92 | P a g e
Communication is important, and staff should be trained in the following procedures:
Advise customers of hazards by using signs for example, an Out of Service tag)
Whenever possible remove the hazard completely
Know who to approach to repair the hazard
In any case the supervisor or Store Manager must be informed
Some OH and S issues are a spill of a chemical, faulty piece of equipment, faulty playing
equipment or broken furniture. Remember to always follow safe work practices as
Prevention is better than cure, and never attempt to use any piece of equipment with an
Out of Service tag.
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Store Security Policy and Procedures
Our aim
The Store insists on the highest level of security to prevent theft and insure a safe working
environment for staff members and customers alike.
Staff general security
Giving away products
You may be asked by customers and friends to give away merchandise but at no time can
you give away products. Giving away products is a very serious offence and a breach of store
policy and will lead to disciplinary action.
Procedures for staff purchases
After three months of employment a discount card will be supplied to all staff members.
This will entitle you to a 12% discount on all goods. This is for employee use only and not to
be abused and will be monitored.
All staff purchases must be made before or after your shift. If you wish to make a staff
purchase see your Supervisor who will document the purchase. A check seal sticker must be
placed on all items purchased before your shift.
Staff holds: are permitted for 24hours and will be kept at the supervisors counter.
Staff lay-bys: are permitted with the same conditions as customer lay-buys.
Property
It is company policy that all bags must be available for inspection by the security officer or
Manager if requested. Staff are permitted to enter and exit the store only through
designated staff entrances. All emergency exits are alarmed and employees must only enter
if there is an emergency.
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Lockers
Lockers are provided for all staff to keep their personal effects in while at work. It is each
individual’s responsibility to make sure their locker is locked
Valuables
Do not bring valuables to the store, as the store will not be responsible if they go missing
Equipment security
Our store has bought equipment to make our company more efficient and professional.
Equipment is a valuable asset and it is the Supervisor’s responsibility to ensure the following
rules are adhered to:
Equipment must be serviced on a regular basis
Staff member must treat the equipment with respect
All staff must be appropriately trained in the use of equipment and associated
occupational health and safety issues
Equipment must be used in an appropriate manner and not for personal use
All equipment should be stored in a locked cupboard
Keys are to be held by the Supervisor at all times
Equipment must not be left lying around as theft could occur
Visitors and contractors access
For insurance purposes all visitors and contractors must fill out their details in the Visitors
Register before carrying out their business in the store. They must report to the office on
arrival where they will sign the Visitors Register, be issued with a security badge and
informed of their access to various locations within the store. Security will be notified to
escort visitor to required location.
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Deliveries
The receiving bay must be locked at all times. All deliveries are received through the
receiving bay and never the front entrance. All goods must be received either by the store
person or a department Supervisor and signed for after checking the delivery. This is one of
the main places where theft can occur so extra vigilance is called for.
Armed robbery procedures
Our company policy is to provide a safe and healthy working environment. Do not attempt
to be heroic: your life is worth more than any amount of money.
However, in the event of a hold up the following procedures must be followed:
Remain calm and quiet
Stand still and do not make any sudden movements
Obey the offender’s instructions
Do not draw attention to yourself, and speak only when spoken to
Avoid direct eye contact and do not stare at the offender
What to do immediately after the offender has left the scene:
Arrange first aid assistance if required
If possible note direction and means of departure, not putting your self at risk.
When safe to do so advise security and the Manager who will ring the police 000 and
contact head office
The Manager will seal off the area where the event took place
The Manager in charge will ask all witnesses to remain until the police arrive and you will be
allowed to your notify parents and family, should you be required to remain in the store
The Manager will complete the appropriate forms
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Store safety tips
Do not chase offenders.
Observe the dress and physical appearance of the offender but only if it is safe to do
so.
Assess the offender’s height against a display stand, post or doorway.
Do not attempt to answer a ringing telephone
Do not attempt to delay the departure of the offenders because the sooner they
leave, the sooner you are safe.
Do not discuss the incident with other employees until you have spoken with the
police.
Do not drive a vehicle immediately after a hold up as it is possible that you could be
affected by shock.
Do not touch anything as important evidence could be destroyed.
We recommend that you take up any company offers of trauma counselling.
Opening and closing the premises
For the safety of yourself and others please follow these opening and closing procedures.
Opening the store
On arrival, enter through staff entrance and sign in.
Secure your belongings in your locker.
Sign for keys and count your float in the cash office.
Secure your float in the cash register.
Make sure all windows and doors are open and that customer entrances are open
and clear of obstacles.
Vacuum the floor if needed
Turn on all equipment such as radios and air conditioning
Turn on lighting
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Closing the store
All staff must leave before closing procedure is started.No friends or relatives are allowed
during closing procedure.
Ensure that only appropriate lighting is left on.
Check all toilets, fitting rooms and do a quick run around to ensure no one is left in
the store.
Make sure all doors and windows are closed.
Make sure all equipment such as radios and air conditioning are turned off.
Ensure that all registers are cleared and the cash is taken to the cash office.
Alarms are to be activated by the Supervisor and security officer and all keys are to be
handed to the security officer and signed off in the key register
Note: If your car is parked in a dark place ensure that a security officer accompanies you to
your vehicle.
Cash office security
After hours security is responsible for managing and maintaining building security.
Keys to the office are provided to all executive staff and to other staff members, as the
occasion requires.
Doors must be kept locked at all times.
Two people must always be present when opening the safe and counting money.
Policy for dealing with cash, credit, cheques and EFTPOS
Correct handling of payments during sales transactions (cash, cheques, credit cards and
EFTPOS) is important to minimise losses through fraud or theft. Errors by staff can include
giving the wrong change, pricing, discounting incorrectly, not checking goods properly.
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We realise that occasionally people make mistakes and the possibility of a shortage in our
cash registers does exist. For this reason you will not be required to make up shortages.
However, it is a serious matter if you frequently have significant cash shortages. You will be
notified and your knowledge of cash register procedures will be reviewed.
Cash register procedures
Always count your float in the cash office.
Never use another staff member’s cash register.
Total the sale and advise the customer the total amount.
It is paramount to enter the amount the customer gives you to ensure the change required is
recorded and shown on your register
Place the notes or cheques on the cash drawer; do not put it in the register at this
stage.
Make up the change.
Count the change back to the customer.
Place the amount tendered into the appropriate compartments of the drawer.
Close the cash drawer.
Failure to follow cash register procedures will result in disciplinary action
Always cash up your own register
Cash handling security procedures
Supervisors need to watch for signs of cash theft. Some signs are staff that use the no-sale
button often or are working out of the drawer and have excessive over-rings.
Store policy is never open the drawer and give change. If a customer complains about
change given, record the customer’s details. At the end of the day, if the till does not
balance, the supervisors will contact the customer. Never take the customer’s word alone.
No unauthorised person is permitted behind the counter for any reason.
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Never leave your cash drawer or the register open for any reason. Notify the cash
office when you require a cash pick up.
Cash is never to be counted in view of the public. Office staff and a security member
will collect cash and it will be counted in the cash office
Security measures and procedures should never be discussed with anyone other
than the Manager
Cheque transaction procedures
Bounced cheques cost our company valuable profits. A cost is incurred to the company when
a cheque is returned.
The following procedures are important for our store and must be used:
Ensure that the correct company name is written on the cheque.
All corrections are initialled by the customer.
Cheques should be signed in front of the Supervisor
Make sure cheques are marked Not Negotiable with the correct date and amount.
Ensure writing is in black or blue pen never RED.
Our store does not except post-dated or cash cheques
Telephone for authorisation for cheques over $100.
All interstate and overseas cheques must be authorised by telephone
Verify that words and figures match
Verify that the signature on the cheque matches the identification used
Identification can be either passport or drivers license. On the reverse of the cheque record
the customer’s address, phone number, license number and identification used.
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Credit card transaction procedures
The risk of credit card fraud is on the rise, as over half the store transactions are paid for
with a credit card. Although we have an electronic system in our store, sometimes there
might be a system failure or a damaged card. Manual procedures must then be used.
Manual credit card procedures
Ensure the sales voucher is filled in correctly
Check that the card has not expired
Check the name matches the person using the card
Verify the signature
Ensure all information has been indented on all copies of the sales voucher
Correct amount on docket
Purchases must be over $20.00
No cash can be given on credit card transactions
For all transactions over the $150.00 floor limit, please phone for authorisation
Check card against stolen card list, if the number appears on the list, retain the card and ring
the bank (The bank will advise what to do)
Electronic EFTPOS /Credit Card Procedures
Check card has not expired
Verify correct amount and circle approved
Initial credit card slip
Check signature
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Ensure customer receives the correct copy
Cash out can be given on EFTPOS
Cash cannot exceed $200.00
Purchases must be over $20.00
End of Shift Procedures
Fifteen minutes before your shift ends a Supervisor will complete a reading on your register
and EFTPOS machine.
At the end of each shift it is the staff member’s responsibility to take the cash draw to the
cash office
In the presence of cash office staff or a Manager the sales assistant will count and reconcile
taking
The float amount will be left in the cash drawer
All takings and reconciliation from register are to be placed in a security pouch with a seal a
signed by the sales assistant
All taking / float will then be deposited into the safe
Cash office staff will re-count all takings and float
Cash Holding – Security Procedures
Access to the safe is only available to Manager (the combination is confidential), for security
reasons the following must be adhered to:
All cash is kept in the safe at all times
A Manager and a staff member must be present to open the safe. (Always two people
present)
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Then safe register must be completed whenever opening or closing the safe. Ensure the safe
register is filled in correctly with date, time, and reason
To open the safe enter the combination and insert Manager key
All money placed in the safe must be in pouches with reconciliation forms or banking slips
Banking Procedures
Cash office staff handle all banking procedures
Safe is opened by the Manager and all cash is counted
A banking deposit slip is then completed
A security firm will collect all money three times per week
Policies dealing with Theft
Preventing Theft
Shop lifting is a huge cost to our business and must be reduced where possible. It is our
company policy that with the proper training you can prevent shoplifting before it happens.
Keep an eye on anyone acting suspicious, be alert and watch out for the signs. All staff must
be on the lookout for all acts of dishonesty and all incidents must be reported to the
Manager.
Our company policy is to prevent theft by the RGD method
R Recognise suspicious behaviour
G Good customer services
D Danger spots/times
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Recognising Suspicious Behaviour.
Shoppers who loiter in an area for a long time
Persons shopping in a group who split up but maintain eye contact
Groups of school children with large bags
Shoppers who avoid staff member’s attention
Shoppers who wear unusual or bulk clothing
Good Customer Service Prevents Theft
Through good customer service there are ways to reduce the risk of shoplifting. The
preventative measures our company follows are:
Always count the number of items customers take into the change room (company policy is
no more than three items)
Always count the number of items when the customer is leaving the change rooms
Check customer and staff bags
Acknowledge customers on entering and leaving the store
Always offer customers assistance if they are wandering around
Look for customers watching you, ask if you can help them
Check that all lighting is turned on and working
Ask customers holding goods if they would like to pay for them
Top up counter displays so they are fully stocked
Always keep cupboards locked that should be locked
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Always keep the staff room door closed
Always keep your staff lockers locked
Danger Spots
Always maintain a clear view across the shop and have no hidden areas that may provide an
easy opportunity to conceal merchandise. Areas of the store, which are most likely to
attract thieves, are:
Displays near exits
Change rooms
Toilets
Unlocked doors
End of aisles
Danger Times for theft
Shoplifters are most likely to steal during danger times so be alert and remember RDG. Keep
your mind on the job during these times:
Late night/Saturday mornings
Holidays periods when store has busy peak times
Opening and closing times of the store
Staff changeovers
While attending to fitting room, laybuys, changing displays, restocking and while using a
ladder
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As a preventative measure Store safety policy states 3 limbs must be on the ladder at all
times and a second person must support the ladder, that way they can also be keeping an
eye out for any suspicious behaviour.
Apprehension of Shoplifters
Be aware as shoplifting can happen unexpectedly. Apprehension of shoplifters should be the
last resort. Our store policy is prevention is easy and a far more effective approach.
Approaches to avoid apprehension
False accusation or wrong apprehensions may leave our store open to charges.
If you suspect a customer of stealing, try to encourage them to purchase the item by using
statements such as:
Would you like to purchase that item,(use name if you know what they have taken)
You can pay for that item at the register when ready, eg basketball
Do you know we have a lay-buy system
If the customer has left the store and has not paid for the goods, use the following
statements:
I am sorry but you have forgotten to pay for that item eg basketball
Did you know you have not paid for the item in your possession, eg pram, bag, basket
Procedure if apprehension must occur
Alert another staff member to contact security by calling extension 71
Inconspicuously follow the accused if safe to do so
Never accuse the customer of stealing or touch them in any way
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Ask the customer to accompany you to the security office
If customer refuses to wait for security to arrive, then inform security of the following
details:
In which direction they went
Description, what they wearing, nationality, anything that stands out, eg tattoos, facial
markings, hair colour and length
What they were carrying
What you suspect they stole
A note of where the goods were concealed
If they drove away, give a good description of the car, egcolour or registration if possible
Inform your Manager of all the details of the event and fill out a loss/apprehension report
immediately
Reporting of theft.
Our company policy is to follow all legal obligations so remember when filling in a report
never exaggerate. Never accuse or use discriminatory language (age, race, sex, etc) and
don’t make judgements about why they have stolen or the situation they are in. Shoplifting
is a criminal offence and has to be dealt with according to the law.
When filling in the report, stick to the facts and keep all answers simple and clear.
Describe the facts, what you saw, where it happened, when it happened, what you did,
what happened then and what was said.
Customer’s Property
What is the Bag Check Code of Practice?
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The Bag Check Code of Practice is a joint initiative of Retailers and the Department of
Consumer Affairs and has been developed as a compromise between the interests of
privacy, retail and consumer groups. The purpose of the code is to provide principles and
practices in relation to property checks so that shoppers and retailers can approach the
situation with knowledge of their rights and obligations. Our customer property policy
adheres to the principles of the code of practice.
Our Policy
Our store conducts property/bag checks in an attempt to control theft. All staff are to be
trained in the Property/Bag check procedures and aware of the stores legal position
regarding this matter.
Legal Position – The store must notify customers of its intention to conduct property checks.
A prominent notice that clearly sets this out must be displayed at a point where customers
can see it prior to entry.
Store Policy – Signage is prominently displayed at entrances to our stores establishing entry
conditions, which includes:
All bags and property will be checked when leaving the store
All school bags will be checked when leaving the store; (Staff are encouraged to ask students
to leave their school bags with security at the front entrances.)
All shopping trolleys and prams will be checked upon leaving the store
The Store’s Right to Conduct Property/Bag Checks
Legal Position – A customer who enters our store does so under licence. The shopkeeper
may make that entry conditional upon showing bags, trolleys, prams, cartons, parcels and
containers for checking.
Store Policy – Personal handbags will not be checked unless larger than a sheet of foolscap
paper.
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Legal Position – Staff members who forcibly conduct a property/bag check against a
customer’s will, may be liable for assault.
Store Procedures
All customers upon leaving the store should be requested to open their bags/property for
inspection either at the register or the customer exit point
Requests should be courteously made so as to minimise the degree of intrusion
The employee should request that the customer personally open the bag
There should be no direct physical interference by the employee
Where a view of the bag is obstructed by a large parcel, trolley, pram, coat or similar item,
the employee may request the customer to remove the obstruction but should not touch
the obstructing item
Dispute Procedures
Legal Position – A Shopper can refuse to allow a property/bag check. Employee’s needs to be
absolutely certain that the shopper has committed an offence in order to detain or search
the shopper’s processions.
Store Procedures
The employee should not under any circumstances enter into a dispute with the customer
over a request to check bags or a suspected theft
Under no circumstances will the employee attempt to forcibly restrain the customer or
interfere with bags or property
If any dispute arises the employee should immediately summon the store Supervisor
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The Supervisor will explain the conditions under which the customer entered the store. If
the customer again refuses to offer the bags and property for checking, the Manager may
ask the customer to leave the store and not return or summon a Police Officer
In summary, it is paramount that all Supervisors understand the rights and obligations of
customer’s property.
Rights and Obligations of Customers
Rights
Customers have the right to know before entry that the store conducts property/bag checks
Right to refuse interference with your person, property or with your bags. Checking means
that staff can look and not touch.
Under the Property Code the store has agreed not to check a personal handbag unless it is
larger than the size of a sheet of foolscap paper
Obligations
Having entered the store knowing that property/bag checks are conducted, customers have
accepted the store’s right to ask you to open you bags for checking.
IMPORTANT NOTES
Customers whom refuse inspection of their property/bags can be asked to leave the store
and not return.
The Supervisor/Security Officer will only hold a customer and call the police where the
employee is sure that an offence has been committed.
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If an employee forcibly detain you or forcibly searches your goods, and you have not
committed an offence, you are entitled to complain to the management or the police or
consult your solicitor to determine what legal rights you have.
If you feel that the Property Code has been breached, you should contact the Retail Traders
Association in your state.
Returns Policy
Our returns policy means customers can shop at our store, knowing that with a receipt, we
can offer convenient repairs, exchanges and refunds, provided goods are:
Returned within six week from date of purchase
Goods must be in new order and condition
Identification must be supplied. (acceptable ID includes any document or card with your
name, address, signature and preferably a photo, eg a drivers licence)
With a receipt
Customer can easily bring the goods back with a receipt to the service desk for a repair,
exchange or refund.
Without a receipt
If a customer has misplaced the receipt, the store can offer a repair or exchange if the goods
were purchased in-store, with acceptable ID. However, the store is not obligated to give a
refund if proof of purchase cannot be provided.
This service is in addition to customer’s statutory rights to return faulty merchandise for
repair, exchange or refund.
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When can a Supervisor refuse a refund?
In these cases we do not refund or exchange:
Where a customer wants to change good because they are cheaper elsewhere.
When a fault was made known to the customer at the time of sale.
When the customer has caused the item to fail.
.
The service desk is to complete a refund form and refer all refunds to their supervisors for
approval.
Supervisor’s Responsibilities
Check that all requirements of the refund policy are met.
Establish with the customer why goods are not required or satisfactory.
Check date of purchase with receipt and condition of goods.
Check the refund form is completed correctly and sign the Supervisor’s section.
Identification is to be checked by the Supervisor.
Supervisors then present customer a cash or credit refund.
Supervisor’s Audit Roles
In summary, Supervisors play an important part in implementing store security. The three
main areas of concern are: vendor theft, customer theft and employee theft. It is the
Supervisor’s responsibility to carry out regular audits to help prevent loss. The types of
audits required are random spot checks of cash, stock, employees and regularly perform
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follow-up phone calls for refunds to customers. Further, to discourage visitors or friends
visiting staff members during work times, restrict access to the stock room, and always
make sure the back door is locked.
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Staff Induction Checklist
This checklist is used to guide the induction process for new employees. Once the induction
checklist is completed, both the supervisor and new employee should sign-off as it is
completed. The completed checklist will form part of the new employee’s training records.
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Recruitment and Selection Policy
This Recruitment and Selection Policy establishes guidelines for the recruitment and
selection of Sim’s Hardware staff.
Sim’s Hardware aims to attract and employ the most suitable person for the position who
will support the organisation’s values, culture and goals in order to achieve its strategic
directions. Recruitment and selection of staff at Sim’s Hardware will comply with all legal
requirements, and with relevant equal opportunity, human resource management
principles, policies and guidelines adopted by the organisation.
This policy applies to all fixed-term, part-time and full-time appointments.
Principles
The following principles guide decision-making in relation to recruitment and selection of
staff to work at Sim’s Hardware.
● The aim of the recruitment and selection process is to appoint the most suitable person to
the position.
● Recruitment and selection will be informed by Sim’s Hardware’s
strategic directions and priorities and will take place following an evaluation of the need for
the role given the staffing requirements to achieve these directions and priorities.
● Recruitment and selection will be guided by requirements of relevant legislation and other
relevant human resource management policies in use by Sim’sHardwaresuch as equal
opportunity and anti-discrimination policies.
● Recruitment and selection processes will be conducted on the basis of fair, equitable and
respectful treatment of all
applicants.
● Positions will be advertised on a range of sites including print and web media (where
appropriate), which are most likely to maximise the field of suitably qualified applicants.
● Appointments will be made in open competition from the widest field of applicants
attracted by both internal and external advertising.
● All appointments will be made on the basis of careful and consistent application of the
principle of merit and adherence to the key selection criteria and requirements of the
position as outlined in the position description.
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● Recruitment and selection processes will be transparent, consistent, professional and
timely. Accountability will be achieved by recruitment and selection processes being open
and subject to appropriate scrutiny and review, having regard to the confidentiality of the
applicants.
● All recruitment and selection processes will be conducted so as to ensure the
confidentiality of the applicants and to preserve the integrity of the process.
● Decision-making is the responsibility of the store general manager or as delegated.
Responsibilities relating to this policy
Offers of employment are made by the store manager or a person delegated by the owners
to make the decision of employment.
The Store General Manager is responsible for the operation, development and continuous
improvement of this policy and for providing information about all legal aspects of the
contract.
Procedure: To make a complaint
If you believe you are being, or have been, discriminated against, sexually harassed or
bullied, you should follow this procedure.
1. Tell the offender the behaviour is offensive, unwelcome, and against company policy and
should stop (only if you feel comfortable enough to approach them directly, otherwise
speak to your manager). Keep a written record of the incident/s.
2. If the unwelcome behaviour continues, contact your supervisor or manager for support.
3.If this is inappropriate, you feel uncomfortable, or the behaviour persists, contact another
relevant senior manager. Employees may also lodge a complaint with the Australian Human
Rights Commission, or the Fair Work Ombudsman.
Employees should feel confident that any complaint they make is to be treated as
confidential as far as possible.
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When a complaint is received by a manager/owner, the manager/owner will listen to both
sides of the story separately, taking written notes for documentation purposes. You should
check these notes carefully, where required, before agreeing on the accuracy of the notes. A
further investigation will only take place if agreed upon by the manager and complainant.
If, after investigation, management finds the complaint is justified, management will discuss
with the complainant theappropriate outcomes which may include:
●disciplinary action to be taken against the perpetrator (counselling, warning or dismissal)
●staff training
●additional training for the perpetrator or all staff, as appropriate
●counselling for the complainant
●an apology (the particulars of such an apology to be agreed between all involved).
Grievance Policy
Sim’s Hardware supports the right of every employee to lodge a grievance with their
manager if they believe a decision, behaviour or action affecting their employment is unfair.
An employee may raise a grievance about any performance improvement action taken
against them.
Where a grievance may contravene Sim’s Hardware’s equal employment and opportunity
(EEO) policy or where the grievance constitutes bullying, discrimination or harassment, the
grievance should be resolved in accordance with the procedures outlined in the Anti-
discrimination policy outlined in the Wollongong General Operations Manual.
We aim to resolve problems and grievances promptly and as close to the source as possible.
When necessary, Sim’s Hardware will escalate a grievance to the next higher level of
authority for more discussion and resolution, and continue escalating it to the level above
until it is resolved.
Managers will do their utmost to action grievances objectively, discreetly and promptly. Be
aware that grievances that are misconceived, vexatious, and lacking substance may result in
disciplinary action being taken against the employee lodging the grievance.
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Procedure
1.The employee should try to resolve the grievance as close to the source as possible. This
can be informal and verbal. At this stage, every possible effort should be made to settle a
grievance before the formal grievance process starts. If the matter still can’t be resolved,
the process continues and becomes formal.
2.To start the formal grievance, the complainants must fully describe their grievance in
writing, with dates and locations wherever possible and how they have already tried to
settle the grievance.
3.The person/s against whom the grievance/complaint is made should be given the full
details of the allegation/s against them. They should have the opportunity and a reasonable
time to respond in writing before the process continues.
4.A manager should have a discussion with both parties in an effort to resolve the grievance
at the workplace level.
5.If the grievance still can’t be resolved, refer the matter to the most senior manager for
consideration and a final decision. A grievance taken to this level must be in writing from
the employee.
Should the issue recur, a review may be undertaken at any stage thereafter by the most
senior manager or owner. Further reviews may be held if required.
System to monitor sales performance
It is the Supervisor’s role to promote excellence in customer service, achieve sales targets
and monitor performance of their Department. Supervisors should ensure data is recorded
correctly so customers receive quality service and your store makes a profit. Supervisors
need to monitor and evaluate selling systems in order to see the big picture and improve
the strategy where necessary.
A supervisor’s three key functions are:
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Implementation of store sales policies and procedures
Monitor the achievement of sales targets
Provide feedback and rewards
Step 1: Implementation of store sales policies and procedures
Identify store policies and procedures related to selling
It is the Supervisor’s responsibility to ensure all policies and procedures which relate to
selling are understood and followed. All staff members are to be trained accordingly. Our
store manuals which relate to selling are:
Customer Service Standards, which include dealing with customer complaints and
greeting the customer.
Selling, which includes approaching the customers, establishing the customers
needs, presenting of merchandise, dealing with objection, selling related items (add
on sales), closing the sale.
Store Security Procedures, dealing with preventing theft and apprehension of
shoplifters, point of sale transactions dealing with cash register procedures, credit,
cheques and EFTPOS, refunds, returns, exchanges and repairs.
Monitoring staff selling performance
To ensure customers are satisfied with our service, and sales targets are met, in accordance
with store policy and procedures, it is essential that the Supervisor monitors staff members
at point of sale area for:
Implementation of store sales policies and procedures.
Accurate data entry (incorrect information put into the system can affect the stock
processes such as ordering and stocktake results, as well as lead to poor sales and
adverse customer perception)
Efficient sale processing of goods through the point of sale area (service and selling
quality is essential)
Appropriately matching customer needs to product and services.
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Processing returns should include the reason for the return to determine whether
the problem is with the stock (faulty), or staff member sold the inappropriate stock
to the customer.
Store customer service and selling techniques are implemented.
Monitoring customer service is a critical factor in identifying deficiencies and making
improvements.
Evaluating staff selling performance
Our store has devised two ways to evaluate staff selling performance. The evaluation needs
to look beyond the sales result and into the area of procedural performance. The Supervisor
should regularly monitor performance in this area and provide necessary feedback to staff.
Point of Sale Questionnaire: to be completed by the Supervisor on individual staff
members at least once a month (see attached)
Customer Satisfaction Questionnaire: is an informative way of measuring service
quality. Place at information stands throughout the store and encourage customers
to complete and return to the store.
Remember the Point of Sale area is often the last contact a customer has with our store and
last impressions count. The Point of Sale area provides opportunities to reinforce our store
image, advertise services, sell add ons and display coordinates.
Just because the store is achieving sales targets, it doesn’t necessarily mean that everything
is working well. The target may have been achieved because of a hard sell approach by
some staff members. The impact of this can be detrimental on return custom and sales will
reflect this in future months.
Step 2: Monitor the achievement of sales targets
Monitor sales staff
It is the Supervisor’s role to report staff performance, evaluate areas and identify where
further training is required to maximise profit. A sense of balance is required to keep staff
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members happy, customers satisfied, reaching sales targets and achieving required profit
margins. To carry out the above, procedures must be followed.
Setting sales targets
It is the responsibility of an accountant to allocate sales targets, which are then approved by
Store Manager and passed onto Department Supervisors. Department sales targets are
formulated based on previous trading patterns of the store. Each Department is given a
monthly sales target and it is the Supervisor’s responsibility, on a daily level, to ensure
targets are being met.
Recording of sales targets
Supervisors need to evaluate sales results as well as selling systems. Our store has a
computerised system which updates all sales information based on daily sales. Supervisors
have computer password to assess the Department sales targets and any individual sales
targets. Sales results should be circulated by superiors during staff meetings. It is the
Supervisor’s responsibility to print out daily sale sheet, file in appropriate folder and
complete store sales target sheet. A Sales Performance Chart is updated daily and displayed
on a staff noticeboard. (see Department Sales Report attached)
Measuring sales performance
Our store measures sales performance in dollar terms and customer satisfaction. An
indication of dissatisfied customers could be from returns and complaints.
Our Company’s procedure for informing staff members of their sales performance are as
follows:
Performance Reviews: carried out on a monthly basis. Supervisors will complete Point of
Sale Questionnaire.
Performance Appraisals: carried out every three months.
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Staff Meetings: Supervisors are to hold monthly staff meetings to improve communication
with staff members and reinforce sales targets and achievements. Recognising and
monitoring good service performance reinforces their behaviour. Good individual
performance should be discussed with all staff members at these meetings. Further staff
meetings can provide a forum for open and positive discussion of grievance.
Training Sessions: Our Personnel Department provides monthly training sessions to enhance
sales performance. Supervisors must attend as an opportunity of being able to refine and
improve any changes with staff members. The advantage of monthly training sessions is to
practise changes by using role plays, ensure understanding of revised or new policies and
procedures.
If sales targets are not being met by staff members, personnel will offer and carry out
Workplace coaching (one on one)
Individual counselling
To improve sales performance, staff members are encouraged to improve their customer
service skills with signage posted in various locations in the store.
Step 3: Providing feedback
Feedback to management
Supervisors are required to report to Management as follows:
Daily: Department Sales Sheet (takings)
Weekly: Sales Performance Report
Monthly: Sales Performance Report
It is of paramount importance that these reports are completed correctly and indicate:
The Sales targets for the month
Reason for not achieving sales targets or reason for exceeding sales targets
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Action you plan to take if an individual or your department’s sales targets were not
achieved.
Feed back and rewards to be provided to staff for exceeding targets.
The reasons for achieving or not achieving sales targets need to be indicated. Take
appropriate action if staff member or Department sales targets were not achieved and
provide feedback to staff members for exceeded targets.
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Providing feedback to staff members on sales performance
Supervisors must review results staff members are achieving and give appropriate feedback.
Recognising excellence in achievement of sales targets is motivating for staff members, and
provides incentive to continue enhancing their sales performance in the future.
Recognising achievements can take a number of forms. The simplest is by personally
congratulating individuals and teams on their performance. The biggest reward one can
sometimes get is a pat on the back for a job well done. Tangible forms of reward our
Company offers are bonuses, team dinners or gift vouchers.
Our Company offers a number of incentives for staff members who achieve sales target.
They are:
Sales Employee of the Month
Team Member of the Month
Award for Outstanding Customer Service.
As a Supervisor, please nominate your staff member for these awards to the Personnel
Department. Please see bonus schemes for more
information.
Poor performance
Giving feedback on poor performance is sometimes harder to do than giving positive
feedback. We need to look not only at why sales targets were not met, but what remedies
we can apply to improve performance. There are a number of strategies we can implement
to support sales staff that are experiencing performance problems. Some ideas are:
Counselling
Training
Coaching
Job aids
Remember, when giving feedback to enhance a staff member’s performance, wherever
possible, give them an opportunity to improve.
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Furthermore, as a Supervisor, the Personnel Department’s Human Resources Manager is
your support. For any staffing matters, please do not hesitate to contact them for assistance
regarding any staff member especially in the area of poor performance.
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COMPANY DOCUMENTS
Head Office Financial Management Policies and Procedures Manual
Sim’s Hardware Financial Management Policies
Financial Management Policy
Sim’s Hardware promotes a best practice approach to all aspects of its operations.
Sim’s Hardware values ethical and compliant practices and the highest level of service to all
stakeholders.
All facets of financial management will reflect the
following:
● all activities will be conducted ethically
● all activities will reflect the company’s strategic goals
● all activities will be undertaken to achieve the key goals and financial benchmarks
identified in the annual business plan.
All activities will comply with the following where applicable:
● Australian Securities and Investments Commission (ASIC) operating and reporting
requirements
● Australian Accounting Standards (AAS)
● relevant state and federal
legislation
● relevant state or federal government contractual requirements.
All procedures will be designed to support the successful operation of Sim’s Hardware’s
operation and services.
Financial Reporting Policy
Reports should provide analysis of all income and expenditure, balance sheet and cashflow
items in relation to the endorsed budget by the board of directors.
Budgeting Policy
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All budgets are prepared at the direction of the Finance, Audit and Risk Management
(FARM) Committee (chaired by Chief Financial Officer) and must respond to business and
strategic goals.
Cash Control and Investment Policy
All investments must be endorsed by the board of directors and be subject to reviews and
recommendations from the Finance, Audit & Risk Management (FARM) Committee.
All money received is to be banked by the Chief Financial Officer (CFO) or delegated
authority in a timely manner.
Bank accounts are to be monitored by the CFO to ensure there are sufficient funds to meet
daily operational requirements. If there is excess money in the Business Operating Account
the CFO is to arrange for this to be transferred to the Investment Account.
If funds are low in the Business Operating Account the CFO is to transfer an amount from
the Investment Account into the Business Operating Account.
Credit Policy
All activities undertaken in collection must endeavour to minimise bad debt.
All activities undertaken must comply with federal and state legislative requirements
relating to PAYG employees, WorkCover and modern award conditions.
Fixed Asset Policy
Management of assets must comply with Australian Accounting Standards. The assets of the
company must be maintained to ensure maximum usage.
Taxation Policy
All activities must comply with taxation law including maintaining tax exemption status.
Insurance Policy
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Insurance coverage must protect the company against any loss or liability in relation to the
following:
● business assets
● public liability
● workers’ compensation
● professional indemnity
● director and officer liability.
Invoice Policy
Accounts receivable
● Invoices need to be in the accounting system by the end of each month to provide
accurate accounting information.
Accounts payable
Sim’s Hardware’s terms of payment are 30 days from date of invoice.
All invoices need to be verified, job numbered and approved by the authorising staff
member and the CEO. The assistant accountant is responsible for inputting all invoices for
the month into Sim’s Hardware’s accounting system to ensure accurate accounting
information.
Cash Receipts Policy
Payment for a product or service can be made in the following way:
● electronic funds transfer
(EFT)
● credit card
● cheque.
The payment terms for all products and services are 14 days from date of invoice.
Project Expenditure Policy
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● Project funding must cover all project costs including fixed costs, management,
administration, coordination costs and direct project costs.
● All project activity must be reported upon bimonthly by the CFO for reporting to the
FARM Committee and board.
● All project contracts are signed in accordance with the procurement policy.
● All projects, upon signing of contract, will be formally established in the Sim’s Hardware
accounting system by the assistant accountant through completion of the project number
and budget.
● All expenses related to projects will be job and account coded by the project managers
and then entered by the assistant accountant into the Sim’s Hardware accounting system.
● The project manager will verify and approve all projects under their responsibility. The
CEO, CFO and or Director will sign all payments and requisitions to ensure the amounts
reconcile prior to payment.
● Project managers must operate within project budgets at all times.
● Project managers must confirm all verbal commitments in writing and have it approved by
the CEO and
CFO.
Sim’s Hardware Financial Management Procedures
Full disclosure of the processes and procedures are essential to the financial report’s
credibility. Information should be disclosed in a way that enables the Finance, Audit and Risk
Management (FARM) Committee and external auditors to attest to its reliability.
Management Accounts
● The CFO has the overall responsibility for preparing the monthly and quarterly
management accounts for the FARM Committee and the board of directors. The CFO has
responsibility for compiling quarterly management reports from stores (currently 138
stores).
● The management accounts are to be available for review by the FARM
Committee and board members prior to board meetings.
● The management accounts are to be prepared using Australian Accounting Standards and
with regard to the Australian Income Tax Act 1986 and Corporations Act 2001.
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● The management accounts are to be prepared from the Sim’s Hardware accounting
system Accounting package with detailed working papers of reconciliation.
This includes a reconciliation of all balance sheet items and ensuring the accuracy of these
items.
● Accrual accounting is used throughout the reports except for the cash
flow
statements.
● Monthly and quarterly management accounts should include an operating statement with
year to date results, a detailed balance sheet and cash flow statement.
● The profit and loss account should detail the budget year to date, actual results year to
date and variances year to date.
● Notes should explain any significant variances that the board should be aware of for
decision-making.
● The CFO needs to ensure the end of month reports are completed by the 15th of the
subsequent month.
End of Month/Quarter Checklist
Note: Management accounts are given to CEO and FARM Committee monthly and
quarterly.
1. Adjust all previous month’s/ quarter’s accruals where required.
2. Update depreciation schedule and record journal in Sim’s Hardware accounting system.
3. Prepare all standing journals for accrued income, amortised expenses and liabilities.
4. Ensure all project-related income/expenses are reconciled.
5. Analyse prepayments and record expenses accordingly.
6. Ensure all payroll is finalised and reconciles for month prior to closing quarter end
accounts.
7. Check that all invoices for payment have been entered into the creditors sub-ledger for
the period.
8. Review creditors to ensure no adjustments required.
9. Review debtors sub-ledger to ensure no adjustments required.
10. Ensure that bank statements reconcile to general ledger.
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11. Ensure that all payroll clearing accounts are reconciled, e.g. PAYG, EFTs, superannuation
and salary sacrificing payments.
12. Annual leave liability entries to be reconciled and journalised.
13. For projects that have not been completed, the unexpended funds are recorded in the
balance sheet as liabilities.
14. Reconcile all balance sheet items.
15. Reconcile GST reports to the balance sheet and quarterly BAS returns.
16. Prepare operating accounts, including actual results and YTD (year to date) budget.
17.Material unfavourable variances and abnormal items should be noted in the accounts
and reasons noted for FARM Committee.
18.Ensure that all working papers are clear and concise for audit. File to be labelled clearly
with a copy of the operating accounts, balancesheet, profit and loss account and cash flow
statements.
19.Deliver and discuss company’s results with FARM Committee. Should budget not be
expected to be achieved in any area, this must be highlighted to the FARM Committee.
Budgeting Procedures
● The annual budget should be finalised prior to the commencement of the new financial
year. If considered necessary, the budget may be subsequently adjusted.
● The annual budget (1 July –30 June) must be prepared as directed by the FARM
Committee, board of directors and CEO.
● It is the responsibility of the CFO to prepare annual budget parameters including revenue
and expenditure, staffing, administration and resource implications.
● The initial annual budget estimates should be based on the current expenditure
projections to end of year plus relevant wage increases, revisions to employment awards
and contracts, and an assessment of the projected increase in operating expenses.
● Expected interest rates and investment options should be evaluated and projections
prepared.
● All fixed costs should be reviewed and projected for the twelve month period including
rental premises, insurance, cleaning, office equipment etc.
● All taxes and legislative costs to operate, must be considered including audit costs.
● All annual budget working papers must be documented, including:
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○ assumptions
○ papers from the board advising strategic plan and business plan
○ papers from the CEO to support projected numbers and costs.
● The annual budget will be finalised and submitted to the FARM Committee and board of
directors for approval.
● The annual budget for the next financial year should be presented to the board of
directors.
● The CFO is responsible for monitoring the organisation’s expenditure, reviewing the actual
and budgeted expenditures, and reporting on the progress of such expenditure.
Project Budgeting
● All project budgets must be developed by project managers in collaboration with, and
approved by, the CFO before finalisation of the annual budget.
● The CFO will allocate each approved project budget a number code, and this will also
become the project identification code across all Sim’s Hardware systems.
● Project managers are responsible for ensuring projects do not run over budget; that
deliverables meet contractual obligations;
that the sign-off of invoices, and the provision of the signed invoice to the assistant
accountant for processing.
Preparation for Annual Audit
● A review of all year end balances in the balance sheet and operating statement must be
undertaken.
● All balance sheet general ledger accounts are reconciled. This would
include examining in detail:
○ The bank reconciliation –including sighting a copy of the bank statement.
○ Petty cash reconciliation – ensuring the amounts reimbursed balance with the nominal
balance to be held.
○ The debtors accounts – including any amounts not contained in aged debtors report. This
will also include analysis of amounts outstanding greater than 30 days with reports on
action taken.
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○ Examine asset register to ensure there are no obsolete items being depreciated (e.g.
○ Ensure that pre-paid expenses relate to future periods and are recorded in the balance
sheet.
○ Review the creditors report to ensure all expenses are current and credit notes have been
processed where applicable.
○ Ensure that all expenses are included as accrued expenses if the amounts have not been
included in the accounts payable ledger.
Examine accrued expenses to ensure liability had arisen at balance date (i.e. sight
documentation).
○ Ensure that all contingent liabilities are raised.
○ Examine payroll reports to ensure wages/deductions/superannuation and taxation
balances in the clearing accounts.
○ Examine leave liability reports to ensure provisions are correct and current for period
including long service leave which is accrued after five years
service.
○ Ensure that a liability is raised for any net project funds which have not been expended at
closing date. A net result should not appear in the general profit and loss.
● The following financial management systems should be checked in particular:
○ Payroll – Check the direct payments report to ensure no additional employees or collusion
between staff members.
○ Payroll– Check that amounts paid are recorded in payroll system correctly.
○ Payroll– Ensure that PAYG reconciles.
○ Payroll – Ensure that all third party payments for packaged employees are currently
recorded for fringe benefits tax (FBT) liability where applicable. The FBT incurred by this
expense, should reduce the cash residual of the package payable to the employee (if stated
in the employment contract).
○ Payroll – Ensure that no terminated employees are on current payroll, excepting
employees who have been subsequently re-engaged on a casual basis.
○ Accounts payable – Ensure that the authorisation procedure is being followed. Ensure that
all goods and services paid have been received.
○ Accounts payable – Test data to ensure expense classifications are correct.
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○ Accounts receivable – Ensure that invoices are being raised correctly, sight source data.
○ Accounts receivable – Ensure that all payments are being matched correctly and banked
promptly – ensure no delays to cash flow.
○ Accounts receivable – Examine unpaid accounts and action taken – give advice and assist
where necessary. Attempt to identify any clients who show signs of becoming slow payers
(e.g. timing between payments becoming greater or unwilling to be bound to terms of
payment).
Potential bad debt cases should be identified as soon as possible to minimise the amounts
that could be lost.
○ Ensure that all asset registers are up-to-date by comparing the written down values with
the general ledger.
○ Ensure all accrued interest on term deposits or interest on loans is reflected in the
accounting records.
○ Ensure taxation and statutory compliance is being met.
● A review of WorkCover policies will be made by examining the working papers supported
by source documentation such as payroll reports, contractors creditors file (if applicable)
and FBT returns (if applicable) – estimates for future periods.
● A review of the annual payroll will be made by examining the working papers supported
by source documentation such as payroll reports and cash/EFT entries to staff, payments to
the ATO, payments to superannuation funds and other deductions made.
● A review of the FBT return will be made by examining the working papers supported by
source documentation such as payroll reports and salary packaging arrangements, and
general ledger reports.
● All internal audit checks should be applied at year end to ensure information presented to
external auditors follows the Australian Accounting Standards. A detailed working paper file
of all reconciliations and copies of source documentation (where applicable) are included.
● The end of month checklist should be examined to ensure all month end work is being
reviewed.
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Accounts Receivable Procedure
● Cheques and cash should be deposited in a timely manner by the assistant accountant or
CFO.
● Ensure that all credit card payments are processed within 24 hours of receipt.
An invoice/receipt with the EFT Machine payment receipt needs to be mailed to the client.
● Monies received needs to be recorded in the deposit master file and reconciled with the
bank statement on a bimonthly basis.
● Follow the collections procedure(below) to obtain any overdue funds.
Collections Procedures for Tradespeople
● Ensure that all credit terms are printed clearly on all invoices and agree with the
customers’ contract for terms of business.
● The collection procedure is:
○ Net payment is required with 14 days from invoice date. Beyond 14 days, further
collections procedures are enacted.
○After 30 days –issue a duplicate invoice with a reminder notice
○After 45 days –contact the debtor by telephone and record on
the Sim’s Hardware collections database all relevant information such as the person spoken
with and any agreed action
○After 60 days –issue a letter of demand and retain a copy.
Ensure that the following items are included in the correspondence:
–Claim the debt owed by the debtor.
–Give the debtor sufficient details to identify the debt.
–Allow the debtor a reasonable time to respond (14 days).
–Indicate that if the payment is not received within the time stated that the debt will be
passed onto Sim’s Hardwaredebt collection agency for further demand and/or possible legal
action.
–After90 days –All debtors are passed onto the debt collection agency and no sales orders
will be accepted by the sales officersuntil the debt has been paid.
–All accounts at 90 days and over are to be kept at a maximum of 5% of total receivables.
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●The FARM Committeehave authority to approve write-off on any one debt.
●Any changes to the procedures outlined above must be authorised by the FARM
Committee.
Accounts Payable Procedures
●Payments will be made for invoices authorised by the appropriate project manager or
senior manager.
●Statements are not to be paid; they are to be used for reconciliation purposes only, except
where a statement and invoice are combined.
● Allcheques will show the payee’s name in full and be crossed (except petty cash) and will
be signed by two signatories.
● All EFT payments will be authorised by the CEO and CFO.
● Petty cash will be reconciled whenever a cheque is required to be drawn or each month. A
receipt must be present for each and every disbursement.
● All payments should be made under terms of business and the credit time utilised to the
company’s advantage.
● All invoices must be job coded and approved by the appropriate manager.
● All current month invoices must be entered into the system prior to end of month to allow
for the expense to be captured for end of month reporting and cash flow calculations by the
CFO.
● The cut-off date for month end processing is as advised by the CFO.
● All corrections to invoices entered in a previous month (e.g. incorrect amount, GST code,
account allocation, invoice cancellation) must be brought to the attention of the assistant
accountant, prior to processing.
● The accounts payable is to be reconciled each month end.
Payroll Procedures
● It is the responsibility of the CFO or delegated authority to confirm all conditions of
employment including:
○ basis of employment (full-time, part-time, casual)
○ annual remuneration
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○basis remuneration calculated, i.e. inclusive of superannuation, leave loading, other
benefits
○ leave entitlements including loading provisions applicable/not applicable
○ choices available in packaging –if any
○ terms of notice required
○ superannuation
○ Date of commencement.
●It is the responsibility of the CFO to ensure that all employment declarations,
superannuation forms and trainee indentures are completed and lodged.
● All payments are to be made by EFT to the employee’s nominated bank account on a
fortnightly basis.
● Requests by terminating employees for group and/or separation certificates must be
provided promptly.
● All payroll transactions are to be entered into Sim’s Hardware accounting system. No
wages are to be paid in cash and all payments must be recorded.
The payroll payments report is to be reconciled to ensure that all group certificates agree
with wages paid for the year.
● Should a payroll amount not be received by an employee, firstly check payments
deducted on payroll reports.
Request a copy of the employee’s bank statement as evidence the payment has not been
deposited. Ensure that the pay has not been returned to the
company.
Contact the bank to report the error and to run a trace on the lost funds.
Pay employee again as soon as possible. Ensure that the credit for pay when it is located is
recorded to ensure cash paid agrees with wages recorded.
● The payroll area is not to disclose to other parties information of a private nature. Should
a lending organisation require income information, the CFO may only confirm the amount
paid as wages or other details where the lending organisation has already been supplied
with this information by the employee.
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Fixed Assets Procedures
● All fixed asset expenditure must be within the board’s annual budget.
● Any additional expenditure over $200,000 must have authorisation from the FARM
Committee.
● All assets must be recorded in the fixed asset register and financial accounts.
● All disposals must be at a fair market price.
Discounts on disposal must be approved by the Chairperson and FBT must be paid.
● All assets are recorded in the asset register with a code relating to the assets’ location and
description.
● An audit of fixed assets must take place annually by the CFO.
● All assets must be kept in good condition and be productive. Non-productive fixed assets
could be reducing funds that could be earning interest.
● A copy of the fixed asset register must be kept offsite.
● The level of insurance cover should be reviewed annually.
● A depreciation schedule must be maintained monthly using the straight line method to
expense depreciation over each asset’s expected useful life.
Tendering and Purchasing Procedures
All employees must adhere to Sim’sHardware ’s procurement policy and procedures.
Insurance Procedures
● The CFO is responsible for ensuring the following insurance policies are current:
○ business assets
○ public liability
○ indemnity cover for directors and employees
○ WorkCover for employees and paid Directors.
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Financial Performance 2015, 2016 and
2017
2015
(
Figures in $
millions)
2016
(Figures in $
millions)
2017
(Figures in $
millions)
Sales
Less COGS
3,600
(1,800)
3,800
(1,900)
3,500
(1,750)
Gross Profit 1,800 1,900 1,750
Less SG&A
expenses
(1,080) (1,140) (1,050)
Less depreciation (100) (100) (100)
Earnings before
interest and tax
620 660 600
Less interest expense (23) (26) (28)
Pre-Tax Income 597 634 572
Cumulative Pre-Tax
Income (NOL)
597 1,230 1,802
Taxes 239 253 229
Pre-Tax Income 597 634 572
Less taxes (239) (253) (229)
Net Income 358 380 343
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Statement of Financial Position Ending FY2017
Balance at the end of
reporting period
(Figures in $ millions)
Cash 958
Inventory 110
Accounts receivable 264
Total Current Assets 1,332
Gross property, plant & equipment 700
Less accumulated depreciation (300)
Total Assets 1,732
Accounts Payable 88
Bank notes payable 62
Total Current Liabilities 150
Long term debt 200
Shareholder’s equity 1,382
Total long-term debt and shareholder’s equity 1,582
Total Liabilities 1,732
Sales 3,500
Less COGS (1,750)
Gross Profit 1,750
Less SG&A expenses (1,050)
Less depreciation (1,050)
Earnings before interest and tax 600
Less interest expense (28)
Pre-tax income 572
Cumulative pretax income 1,802
Taxes 229
Pretax income 572
Less taxes (229)
Net Income 343
Plus depreciation 100
Less increase in inventory 73
Less increase in accounts receivable 174
Plus increase in accounts payable (58)
Cash flow from operations 632
Less investment (100)
Cash flow from operations and investments 532
Plus net new equity capital raised –
Less dividends paid –
Plus net new long term debt –
Plus net new borrowings (7)
Cash flow from operations, investments and finance 525
Beginning cash balance 432
Ending Cash balance 957
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Sim’s Hardware Marketing Plan 2017
1.0 Executive Summary
Sim’s Hardware was founded by Percy Greenwright in 1921 and was known as Sim’s Home
Goods until 1952. In 1982, Sim’s Hardware, seeing expansion opportunities but requiring
investment capital, restructured and relaunched as a public company. It was floated on the
Australian Stock Exchange in September of that
year.
The Greenwright family has retained a controlling interest in the company since its
founding. At present, Percy Greenwright’s great grandson, Holden Greenwright, performs
dual functions of chair of the board of directors and CEO.
Sim’s Hardware owns and operates 138 warehouses throughout Australia, with plans to
continue expanding at the rate of 2–3 stores per
year.
At a Glance –Sim’s Hardware
●Location: Sim’s Hardware stores are located all around Australia in
themajor cities and in the larger regional centres.
●Design: (Has been described as having a ‘Bunnings feel’crossed with elements of
international home design show). Large, open-plan warehouse, but suggesting excitement
of trade fair containing displays of latest and best Australia and the world has to offer in
home design; realistic and interactive, mock-up displays of installed products to provide
visual and tactile sense of design quality, aesthetics and luxury attainable for customer’s
home; product experts at every display or booth; otherwise, no-frills, no-nonsense decor
exhibiting sustainability features, such as water tanks, recycling bins, and solar arrays, for
example, in plain sight.
● Size: 15–20,000 m each location on 2–4 hectare sites.
● Employees: Approximately 10,000 across Australia.
● Types of transactions: Retail (point-of-sale) and account (trades customers).
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According to the company mission, Sim’s Hardware provides the best of Australia and the
world in quality hardware, homewares, garden supplies and building materials to Australian
consumers and tradespeople. Sim’s Hardware is committed to providing customer value
through everyday low prices, product quality, expert service, community engagement and
environmental responsibility. According to the Sim’s Hardware vision, within five years,
Sim’s Hardware will lead the hardware and home –
improvement market in Australia.
Key strategic directions:
● increase sales revenue and gross profit
● maintain or increase market share
● control direct and indirect operational costs
● maintain superior product and service quality standards
● establish reputation of Sim’s Hardware as socially and environmentally responsible
company.
Marketing objectives include:
● to position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points
● increase foot traffic to 1,000 people per day per store (from 800)
● increase website traffic to 20,000 visits per day
● drive sales and revenue growth in line with financial goals
● establish good will within our target market so that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
This marketing plan has been prepared to ensure marketing activities are coordinated with
company strategic directions to achieve company mission, vision and values.
This marketing plan comprises of:
● a situation analysis to identify market characteristics and key strengths and weaknesses of
the business relating to meeting consumer demand
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● a marketing strategy to identify marketing objectives, leverage strengths, target key
segments effectively, and position Sim’s Hardware to achieve the company mission and
vision
● a detailed budget of marketing expenditure for the year
● a section on control of marketing activity, which includes milestones for achievement of
marketing objectives and contingency planning.
The 2013 financial year represents an important opportunity for Sim’s Hardware to refocus
on core market segments and differentiate its product and service offering, setting the
foundation for future revenue growth.
2.0 Situation Analysis
2.1 Market Summary
Sim’s Hardware has undertaken extensive market research.
Information on the market and the attributes of targeted customers has been sourced
through:
● market research purchased from private consultancies (Action
Marketing, IBISWorld)
● marketing research undertaken by Sim’s Hardware and Action Marketing on targeted
customer groups –information collected at point-of-sale; through website traffic
monitoring; social media monitoring; interviews; focus groups; and surveys.
2.1.1 Market Analysis
The profile for anSim’s Hardware customer consists of the following geographic,
demographic, and behaviour factors:
● Geographic
○ our customers live in Australia, generally within 50 km of a major city or regional
population centre.
● Demographic
○ male and female, ages 20–60
○ full-time employment
○ an average income of $60,000.
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● Behaviour factors
○ own home/mortgage or long-term rent and/or own or manage trade business
○ tech literate
○ moderately price sensitive
○ value style and luxury
○ value convenience
○ value quality
○ value customer service
○ value customer experience
○ value ethical and sustainable practices.
Numbers of customers estimated to be up to seven million people.
See target market segments
for more detailed information on specific attributes.
2.1.2 Market Needs
The basic market need is for an extensive range of quality hardware and homeware s at
reasonable prices able to be accessed conveniently.
Consumers also demand expert and efficient service and socially and environmentally sound
business practices.
According to market research, Sim’s Hardware seeks to provide the following benefits to
represent value to their customers.
● Selection: A choice of popular national brands.
● Convenience: Conveniently located warehouses; e-commerce options.
● Accessibility: Street-level premises, wheelchair accessible. All reasonable accommodation
made for persons with disability or special cultural needs.
● Customer service: Sales employees need to be knowledgeable or expert or able to locate
such sales staff quickly and efficiently.
● Competitive and appropriate pricing: All products/services will be competitively priced
relative to our hardware/home-improvement
competition.
● Ethical and environmentally responsible business practices: Sim’s Hardware products are
sourced through sustainable sources.
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Packaging is kept to minimum. Advertising is electronic, or if printed, printed on recyclable
material where possible. Triple bottom line reporting is publicised and available to
customers.
2.1.3 Market Trends
The following market trends exist for Sim’s Hardware’s target market:
● Demand for product quality: Customers expect products to be of the highest quality
and be fault-free and fit for purpose.
● Demand for product innovation: Customers expect new products with innovative features
such as, for example, easy -peel wallpaper or paint that indicates coverage. Information on
new products introduced into European and North American markets is readily available
and Sim’s Hardware is expected to keep up with a world-class product range.
● Demand for service quality: Customers are increasingly aware of products and highly
critical of inexpert advice or service. Customers expect efficient, expert service.
●Demand for environmental sustainability: Customers are increasingly aware of the
environmental impact of consumer goods and expect companies like Sim’s Hardware to
conduct business operations in an environmentally responsible manner and to stock green
options where possible.
● Demand for social responsibility: In addition to environmental responsibility, consumers
are increasingly demanding that the activities of businesses such as Sim’s Hardware should
contribute positively to local community and also promote social equity both within
Australia and within source countries for products.
● Expectation of immediate access to information on products, services, promotions,
discounts, company practices and policies: Customers have expectations that information
should be readily available to potential customers through internet sources such as websites
and social media.
● Distrust or scepticism towards more traditional, wide-casting media such as newspapers,
television and radio: Delivering promotional messages through electronic social media and
word-of-mouth to specific groups of consumers –represents an increasingly popular,
effective and cost-effective method of reaching specific target markets. Consumers targeted
in this way are more likely to identify Sim’s Hardware products and services with positive
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qualities they attribute to electronic social media such as trustworthiness, personalisation,
responsiveness, immediacy, and ‘coolness’.
2.1.4 Market Growth
Market research indicates that the hardware/home -improvement market will continue to
grow. According to IBISWorld market research, in 2012, the average Australian household
was expected to spend $2,554 on home renovations and improvements . This figure was
expected to increase by 4% over the next few years to reach $2,651 per household by 2017–
18.
2.1.5 PEST Analysis
Political environment
The political environment includes legislation and government legislative direction.
Relevant legislation may include, for example:
● Privacy Act 1988 (Cwlth)
● state-based anti-discrimination Acts
● Australian Securities and Investments Commission Act 2001 (Cwlth)
● Competition and Consumer Act 2010, including the Australian Consumer Law (ACL)
●Corporations Act 2001(Cwlth)
●A New Tax System (Goods and Services Tax Administration) Act 1999(Cwlth)
●Income Tax Assessment Act 1997(Cwlth)
●Fair Work Act 2009(Cwlth)
●state-based OHS (occupational health and safety)/WHS (work health and safety) legislation
●packaging and labelling laws
●increasingly stringent environmental laws.
The last two types of legislation may be particularly important for Sim’s Hardware’s business
and marketing activities. As noted, sustainable business practices are becoming more
important to customers. More stringent packaging laws may allow Sim’s Hardware to
highlight its environmentally sustainable approach to business.
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In a similar way, environmental legislation may allow Sim’s Hardware to promote its low-
impact approach to advertising while also disadvantaging the competition, which may need
to alter their practices to comply.
Finally, Sim’s Hardware anticipates that the Australian Government’s focus in future
legislative direction and fiscal policy will be centred on promoting growth in the face of the
continuing international debt crisis, poor growth and subdued consumer confidence.
Economic environment
Interestingly, sluggish growth and moderate increases in the Australian unemployment
figures may present an opportunity for hardware and home-improvement retailers such as
Sim’s Hardware. This opportunity exists despite other retailers suffering from low consumer
confidence, poor sales and overseas competition,
particularly through e-commerce.
Hardware retailers have benefitted from the sense among homeowners that now is the
time to choose renovation and home improvement rather than selling and moving to a
renovated house.
According to IBISWorld, the trend towards home improvements is linked to the increase in
residential housing prices, which is due to the housing shortage, easier access to finance and
government incentives, amongst other factors. If current trends continue, the industry is
expected to grow by 23% over the next five years to reach $14.2 billion in 2016–17
Social environment
Consumers are increasingly aware of the impact of business activity on local community.
Consumers demand that the business consider the impact of its activities and work to
promote healthy community involvement.
Moreover, consumers are increasingly aware of working conditions in other countries and
increasingly want to contribute to better social and economic outcomes globally.
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Consumers are also concerned about the environment. Sim’s Hardware will endeavour to
promote itself as environmentally and socially responsible and conduct business operations
accordingly. In this way, Sim’s Hardware will offer value to the socially and environmentally
aware consumer and position itself as a leader in social
and environmental responsibility.
Technological environment
Internet, information, and social networking technologies continue to evolve and provide
new challenges and opportunities for marketing. Sim’s Hardware will continue with its
effective use of its website to promote and sell products and social networking to reach its
target markets.
2.2 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses of the company,
and describes the opportunities and threats facing Sim’s Hardware.
Strengths
● excellent staff, highly skilled at sales, product demonstrations and explaining product
features
● great locations
● product offerings that meet or exceed competitors’ offerings in quality and innovation
● strong marketing budget
● consistent brand recognition across Australia
● 8% market share
● secured real estate to limit growth of competitors
● e-commerce developed with online store for most products.
Weaknesses
● high cost of sales associated with environmental and socially responsible choices
●low customer loyalty to brands.
Opportunities
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●strong market potential. A significant percentage of the target market still not visiting
Sim’s Hardware on a daily basis
● extension of business hours
● expansion of e-commerce
● new partnerships with suppliers of innovative suppliers
● opportunity to bulk buy and reduce prices through economies of scale
● opportunities to market and differentiate Sim’s Hardware on the basis of training, product
range, product innovation.
Threats
● competition from new entrants into market, especially e-commerce
● uncertainty of worldwide economic climate and impact on Australian spending
● growth of international e-commerce (exacerbated by strong Australian dollar)
● potential lack of prime locations for large warehouses where Bunnings has already
secured prime real estate.
2.3 Competition
Competition
Note: Sim’s Hardware currently enjoys an 8% market share
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2.4 Service Offering
Sim’s Hardware will endeavour to recruit service staff with a proven record of customer
service.
Where skills and knowledge are inadequate, Sim’s Hardware will commit to training and
retraining staff to achieve a level of customer service which distinguishes us from the
competition.
In addition, Sim’s Hardware will provide ongoing training to hone customer service skills,
develop staff and promote retention of skilled staff.
As service is seen to be an important expectation across targeted market segments,
promotional activities will highlight the skill and knowledge of our staff.
2.5 Keys to Success
From a marketing perspective, it will be important to work to maximise the promotional
impact of Sim’s Hardware strengths, while seizing the opportunity to increase custom and
market share.
Sim’s Hardware will need to effectively position itself as distinct from the competition, or,
where directly comparable, as offering better value.
Key differentiators will be:
● service and staff product knowledge
● product range
● product innovation
● retail space and experience.
Promotional activity will need to highlight our value proposition and be distributed in a way
that both appeals to our target market and underscores our stated commitment to social
and environmental responsibility.
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On the other hand, resources will need to be utilised in the most cost-effective way to reach
customers given cost pressures. Threats may be minimised through positioning Sim’s
Hardware correctly to offset the impact of competitors’ marketing activities.
3.0 Marketing Strategy
Sim’s Hardware takes a two -pronged strategic approach to marketing characterised by
product and service differentiation along with select targeted marketing activities. Market
research has indicated a growing hardware and home improvement market, particularly for
our unique offering. Consequently, Sim’s Hardware does not need to capture market share
from competitors to grow; we focus on underscoring our difference and growing our
customer base within our specific target markets.
Sim’s Hardware does not actually compete on price and simply ensures that its prices are
not undercut severely by competitors. As former CEO and Chairman Eric Greenwright once
remarked: ‘We don’t sell really cheap hammers. You can by a cheaper hammer elsewhere.
We sell the singular experience of buying just the right tool for today’s needs’. Sim’s
Hardware’s approach may be described as a hybrid of a differentiation strategy and a
segmentation strategy. Because Sim’s Hardware’s strategies have evolved over time, to
arrive at our present, mixed approach, Henry Mintzberg’s emergent model may also be seen
to
apply.
Because of Sim’s Hardware’s unique customer experience, we are different from our
competitors: we sell better, more innovative products; we know more about our products;
we showcase our products’ lifestyle benefits. Sim’s Hardware perceives its target markets to
be most, but not all, Australians. Our customers are slightly more affluent, slightly more
demanding, or have their
own trade customers with these attributes.
Marketing activities within our marketing mix will continue to set the foundations for
achieving the company vision of building and maintaining the Sim’s Hardware brand and,
within five years, leading the hardware and home-improvement market in Australia. Sim’s
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Hardware will lead not so much by directly capturing market share from competitors but by
exploiting a large market which is not catered to by our competitors.
To this end, marketing budget has increased to $100 million. This money will be spent in
targeted campaigns to achieve business and marketing objectives.
3.1 Mission
Sim’s Hardware provides top-quality hardware, homewares, garden supplies and building
materials to Australian consumers and tradespeople. Sim’s Hardware is committed to
providing customer value through everyday low prices, product quality, expert service,
community engagement and environmental responsibility.
3.2 Marketing Objectives
● to position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points
●increase foot traffic to 1,000 people per day per store (from 800)
●increase website traffic to 20,000 visits per day
●drive sales and revenue growth in line with financial goals
●establish good will within our target marketso that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
3.3 Financial Objectives
●generate at least $300 million in sales per month
●minimum 10% increase in gross profit income each year
●reduce the overhead per store through cost control
●decrease the cost of sales.
3.4 Target Marketing
To meet the needs of all segments, Sim’s Hardware offers top-quality products, everyday
low prices, expert
service, community engagement and environmental responsibility.
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The market has been divided into three target markets or segments: Home improvers; DYIs;
tradespersons (owners and managers of small to medium sized businesses and individual
contractors).
Attributes of target segments as well as specific value propositions appear under the
headings that follow.
Home improvers: ‘I’m on the move up’
According to market research undertaken by Action Marketing, the estimated size of this
segment is potentially as much as 3 million people.
The profile of a customer within this segment is:
● aged between 20 and 40
● fun and active
● fashion and trend conscious
● travel internationally and domestically
● luxury moderately important
● single or young family (increasingly may be single-parent, or gay couple)
● single, professional female
● income over $50,000
● moderately price-sensitive but may see higher price as indicator of quality
● moderately sensitive to service quality
● sensitive to peer influences
● consider themselves socially and environmentally responsible
● Prefers local and Australian products but will not compromise on price or design quality: ‘I
like to see Australian leading the world in design quality!’
● very concerned about rising energy prices; worried about impact of carbon tax
● moderately to highly concerned about the environment
● technologically literate: users of online social media
● read home improvement magazines occasionally
● watch free-to-air TV and, increasingly, Pay TV.
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Value proposition: Sim’s Hardware helps you save money with the best of Australia and the
world in quality hardware and home improvement products. Let our experts show you how
smart, sustainable living can enhance your active lifestyle.
DYIs: ‘I’ve arrived’
According to market research carried out by Action Marketing, the estimated size of this
segment is potentially as much as 2 million people.
The profile of a customer within this segment is:
● aged between 35 and 60
● fashion and trend conscious
● young to established family (increasingly may be single-parent, or gay couple)
● single professional female
● family activity, holidays and education highly important
● travel internationally and domestically
● luxury moderately to highly important
● income over $70,000
● highly sensitive to product quality
● moderately price sensitive
● sensitive to peer influences
● may consider themselves socially and environmentally responsible
● prefers local and Australian products but will not compromise on price or design quality: ‘I
want my kids to feel proud of quality Aussie design!’
● very concerned about rising energy prices; worried about impact of carbon tax
● moderately to highly concerned about the environment
● technologically literate: users of online social media
● read home improvement magazines occasionally
● watch free-to-air TV and increasingly Pay TV.
Value proposition: Sim’s Hardware gives you access to the best of Australia and the world in
quality, sustainable hardware and home improvement products. Let our experts show you
how you can provide your family with the benefits of green, resort-style living.
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Tradespersons
According to market research undertaken by Action Marketing and Sim’s Hardware, the
estimated total potential size of this market is 1.5–2 million people, including independent
contractors and small to medium sized business owners.
The profile of a customer within this segment is:
● aged between 35 and 60
● owner or operator of trade business
● highly sensitive to product range and product quality
● sensitive to price
● income over $60,000
● prefers local and Australian products but will not compromise on price or design quality to
suit clients: ‘My clients prefer Aussie products, but not at any cost’
● customers and clients are very concerned about rising energy prices
● moderately to highly concerned about the environment
● technologically literate: users of online social media
● read trade magazines
● watch free-to-air TV and, increasingly, Pay TV.
Value proposition: Sim’s Hardware lets you offer your clients the best of Australia and the
world in quality, sustainable renovations and home improvements on any budget. Let our
experts show you how we can support you as you grow your business.
3.5 Positioning
Sim’s Hardware is a competitively priced hardware and home-improvement supplier. Sim’s
Hardware consumers who appreciate high-quality, innovative products will recognise the
value and unique offerings of Sim’s Hardware.
For target segments, Sim’s Hardware positions its product offering as per the following:
● Product: Sim’s Hardware supplies consumers and trades with high quality and world class
innovative products. To differentiate on product, Sim’s Hardware actively seeks Australian
and
international suppliers who can fulfil requirements for both consistent quality and
exceptionally innovative solutions. Our competition, on the other hand, focuses on a more
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mass appeal. The competition’s customers expect a level of quality consistent with the
lowest prices possible.
●Price: Sim’s Hardware prices its products to stay within the range of prices offered by
competitors. Sim’s Hardware offers a range of discounts and incentives for trade customers.
Sim’s Hardware does not collude with competitors on pricing but does not seek to undercut
competitors. Such a pricing strategy is intended to maintain margins and signify higher
quality and brand prestige. While not seeking to pay more, our customers will generally risk
paying a little more for truly unique offerings and to ensure quality and expert service.
● Service and customer experience: Consistently high level of fast and friendly service
provided by skilled and experienced staff in an exciting and interactive environment. Service
is a key differentiator of Sim’s Hardware’s offering.
Onsite and offsite service will be delivered as per customer needs and expectations in line
with the Sim’s Hardware market positioning as a premier service. For
details see Sim’s Hardware customer service policy and charter.
● Social and environmental responsibility: Social and environmental responsibility is also a
key differentiator of Sim’s Hardware’s offering.
As with some competition, Sim’s Hardware stores use recycled rainwater collected in tanks
for use on plants. Sim’s Hardware also recycles extensively. Sim’s Hardware also sponsors
community and sports events and provides support for charities. The business actively
promotes awareness of the social and environmental activities of Sim’s Hardware thorough
media campaigns.
Unlike our competition, however, Sim’s Hardware promotes its active research into
improving its environmental and social performance. Sim’s Hardware has committed to
public and detailed triple bottom line reporting and associated performance goals.
See business plan for sustainability plan.
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In addition, our products reflect our commitment to the environment and Sim’s Hardware
customers can expect to find our product range includes world-class green technology.
Where our competition has ‘hedged their bets’, Sim’s Hardware has fully committed to
supporting environmentally responsible living. Marketing to specific segments will broadly
follow the positioning strategy outlined above, but will be tailored, where needed and
applicable, to meet the specific requirements of those segments.
3.6 Strategy Pyramids
All marketing activities are coordinated with company strategic directions to achieve
company mission, vision and values. Sim’s Hardware’s key strategic directions (from
business plan) are:
● increase sales revenue and gross profit
● maintain or increase market share
● control direct and indirect operational costs
● maintain superior product and service quality standards
● establish reputation of Sim’s Hardware as socially and
environmentally responsible company.
Sim’s Hardware marketing objectives and operational tactics have been developed to
support the key strategic directions. The marketing objectives are:
● to position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points
● increase foot traffic to 1,000 people per day per store (from 800)
● increase brand recognition and awareness of value proposition
● drive sales and revenue growth in line with financial goals
● establish good will within our target market so that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
Marketing activities are intended to provide the most benefit (in terms of achieving
strategic directions) for the least cost. See marketing expenditure section for details on
marketing costs.
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See the marketing mix section below for specific tactical/operational approaches to achieve
marketing objectives.
3.7 Marketing Mix
In general, through an integrated marketing mix, the marketing strategy will seek to
maintain and build customer loyalty and brand recognition. The marketing strategy will also
aim to demonstrate the value of shopping at Sim’s Hardware to each target market.
Sim’s Hardware’s marketing mix is comprised of the following approaches to pricing,
distribution (place), advertising/promotion, product and people.
Pricing
Pricing is intended to position Sim’s Hardware as similarly priced to its competitors. This
pricing strategy is intended to both increase revenue and underpin Sim’s Hardware’s
message of higher quality. Our target market should feel confident that they would not be
able to get the same combination of customer service and quality product for a lower price
from competitors through any channel.
Place
Sim’s Hardware warehouses are bright and functional. Warehouses are designed to
facilitate easy location of products and services. No-frills, no-nonsense decor exhibits Sim’s
Hardware’s sustainability features, such as water tanks, recycling bins, and solar arrays, for
example, in plain sight.
Coming to our warehouses is a unique experience for customers. Warehouses are designed
to capture the excitement of an international trade show containing displays of latest and
best Australia and the world has to offer in home design. Enticing mock-up displays of
installed products provide visual and tactile sense of design quality, aesthetics and luxury
attainable for customer’s home. Local and Australian products feature strongly in the mix of
displays. Displays are updated monthly.
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Sim’s Hardware also actively promotes e-commerce and distributes a range of products
through its partnership with Australia Post. Sim’s Hardware positions itself as the easiest
and most convenient access to the products our target markets need or expect in the least
amount of time possible.
Promotion
The core message that Sim’s Hardware will seek to communicate to potential and existing
customers is that Sim’s Hardware offers a superior customer experience and superior
products. Sim’s Hardware is committed to providing customer value through everyday low
prices, product quality, expert service, community engagement and environmental
responsibility. For any inaccurate trend predictions, promotions will be required to move
stock that is at risk of becoming obsolete.
This basic message will be communicated through a variety of methods.
● Trade publications
Sim’s Hardware will advertise in a range of national and local trade publications, including
Landscape Manager Magazine, Plumbing Connection Magazine, Australian National
Construction Review,and The Australian Woodworker magazine.
●Paper flyers
Despite concern for the environment amongst target groups, paper flyers remain an
important way to reach our customer. Sim’s Hardware will continue to use paper flyers until
alternative electronic methods such as direct email and digital catalogues are customers’
preferred method of receiving information. Sim’s Hardware will continue to monitor
customer response to this method. Meanwhile, flyers will be printed on recycled material as
per the Sim’s Hardware environmental policy.
● Advertising in local magazines
A common attribute of all target market segments is that they value their local community.
Sim’s Hardware will therefore place regular advertising in local magazines deemed to appeal
to target segments.
Sim’s Hardware will also advertise in national publications such as,
Home and Garden, Grand Designs Australia, and Renovate.
●Encouraging articles and reviews in local media
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Sim’s Hardware will attempt to get articles and reviews in local magazines. These can
include information on new products and design trends and environmental practices, etc.
Sim’s Hardware will regularly provide local media with press releases to encourage use of
our content.
●Direct mail/email to local businesses
Sim’s Hardware uses direct email/mail campaigns to local businesses to communicate
directly with the trade segment. Additionally, marketing research undertaken by Sim’s
Hardware indicates that trades prefer flyers delivered to their business mailing address/
inbox.
● TV (Free-to -air and pay) According to Action Marketing, TV remains an important method
of reaching our customers. However, wide-casting TV advertising is diminishing in
importance and so Sim’s Hardware will focus advertising on lifestyle shows and dedicated
Pay TV lifestyle channels.
● E-commerce/website
Sim’s Hardware will continue to build its online presence through regular updating and
review of its website. It is anticipated that as expansion plans proceed, the ability of
potential customers from a wider geographic area to access online information and perform
transactions will become increasingly important. Promotional messages may include
discounts and information on special promotional days.
● Online presence, advertising and social networking
Sim’s Hardware will encourage existing customers to interact with Sim’s Hardware and
other potential customers to receive loyalty rewards and discounts. As marketing research
indicates, consumers targeted through online social media are more likely to identify Sim’s
Hardware with the positive qualities they attribute to electronic social media such as
trustworthiness, personalisation, responsiveness, immediacy, and ‘coolness’.
Sim’s Hardware will ensure that promotional messages are prominent and accessible online.
Sim’s Hardware will also use YouTube to place positive messages with the potential for viral
marketing.
Sim’s Hardware will continue to place targeted, search-related advertising with
advertising
platforms such as Google, Facebook, etc.
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Product and service
Despite the temptation to lower costs through sourcing lower-quality products, Sim’s
Hardware must always ensure the highest possible quality products to remain consistent
with our brand. Word of mouth on slipping quality or service standards may severely
undermine the marketing strategy.
People
A key aspect of Sim’s Hardware’s marketing strategy is its people. Sim’s Hardware will
continue to train its staff so they both offer the service expected by the market and become
effective good will ambassadors for Sim’s Hardware.
3.8 Product Sourcing
As market research identifies unmet customer needs, Sim’s Hardware will continue to offer
new and innovative offerings to position the company as being responsive to customer
requirements. Sim’s Hardware will actively seek new suppliers and form partnerships to
deliver innovative, top-quality products.
Product sales are monitored to gauge market response to menu items.
3.9 Market Research
Market trends need to be accurately predicted to ensure that stores stock the most desired
product range for the evolving needs of customers. Service needs and other needs relating
to components of the marketing mix will also need to be anticipated. Product life cycle
needs to be predicted so that stock in stores is sufficient to support sales initially but over-
stocking – which would give rise to a large accumulation of outdated product – is avoided.
Access to ongoing market research will be achieved through regular research activities
carried out by Action Marketing and Sim’s Hardware.
See the implementation milestones section for specific research activities.
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The Marketing General Manager, Elizabeth Madden, will manage market and marketing
research and liaise with Action Marketing. Customer feedback and suggestions are readily
sought for
improvement of marketing activities.
4.0 Marketing Expenditure
This section will provide information on budget expenditure for the current and previous
financial years.
4.1 Marketing Budget Compared by Year
Expenses 2015
Figures in $
millions
2016
Figures in $
millions
2017
Figures in $
millions
Paper flyers 12 11 10
Magazine and trade
publication
advertising
14 12 10
Media promotions 5 5 5
Free to air TV 15 20 15
Pay TV 10 15 20
Social media 1 3 5
Emails, e-catalogues 1 2 3
Website advertising
and maintenance
3 5 10
Online advertising 3 5 10
Goodwill and
sponsorships
3 4 5
Research 3 5 7
Total 70 87 100
5.0 Controls
5.1 Implementation
Milestones
The following milestones identify the key marketing activities.
Milestones
Marketing General Manager, Elizabeth Madden, will manage most marketing activities,
including market and marketing research and liaise with Action Marketing.
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5.2 Contingency Planning
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Business Plan
Business Plan Summary
The Business
Business name: Sim’s Hardware Ltd
Business structure: Public company since 1982
ABN: 4000000000
Business location: Sim’s Hardware is headquartered in Melbourne, Victoria.
The business owns and operates 138 stores throughout Australia.
Date established: 26 January 1921.
Products/services: Sim’s Hardware supplies hardware and home improvement products and
provide expert advice and service.
The Market
Target market: The market has been divided into three target markets or segments: Home
improvers; DYIs; tradespersons.
Marketing strategy: Sim’s Hardware takes a two-pronged strategic approach characterised
by product and service differentiation along with select targeted marketing activities.
The Future
Vision statement: within five years, Sim’s Hardware will lead the hardware and home-
improvement market in Australia.
Strategic directions for FY2015: The Sim’s Hardware strategic directions are:
● increase sales revenue and gross profit
● maintain or increase market share
● control direct and indirect operational costs
● maintain superior product and service quality standards
● establish Sim’s Hardware’s reputation as a socially and environmentally responsible
company.
The Finances
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Sim’s Hardware operations and investment activity are financed through reinvested profits
from previous years’ operational activities and investments.
Business details/history
Sim’s Hardware was founded by Percy Greenwright in 1921 and was known as Sim’s Home
Goods until 1952.
In 1982, Sim’s Hardware became a public company and was floated on the Australian Stock
Exchange.
Sim’s Hardware owns and operates 138 stores throughout Australia, with plans to continue
expanding at the rate of 2–3 stores per year.
Product and service offering
Sim’s Hardware supplies products in the following categories to general and trade
customers:
● timber
● hardware
● tools
● paint
● housewares
● outdoor
● garden.
Wherever possible, a number of different models and brand names will be available to
ensure that customers will find a product of choice.
Service offered will include expert advice from suitably qualified sales staff.
Registration details
Business name: Sim’s Hardware Ltd
Trading name(s): Sim’s Hardware Ltd
Date registered: 1 July 1982
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Location registered: Melbourne, Victoria
Business structure: Sim’s Hardware is a public company, listed on the Australian Stock
Exchange. As such, it is bound by relevant company law under the Corporations Act 2001.
ABN: 4000000000
GST: Registered for GST
Organisational Chart
Business premises
Business location/s
Sim’s Hardware stores are located around Australia in the major cities and in the larger
regional centres. In areas experiencing growth in population and significant growth in
residential building, the demand for products sold by Sim’s Hardware is considered likely to
grow. These areas are targeted by Sim’s Hardware for either expansion of any existing
stores or the building of a new store if none exists.
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Key personnel
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Recruitment options
Sim’s Hardware will deploy targeted advertising in trade magazines and online using
organisation such as Seek. Sim’s Hardware will undertake an investigation of competitor
wages and seek to match or better.
Training programs
Sim’s Hardware will offer a range of ongoing training options to meet business requirements
and develop staff skills:
● sales training
● technical training in product areas
● managerial and leadership training
● environmental training
● community sensitivity training
●health and safety training
●support or subsidies for external training, including TAFE and tertiary education.
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Skill retention strategies
Sim’s Hardware will focus on training and development opportunities for existing staff.
Performance management will focus on individually tailored development goals in line with
business expectations Sim’s Hardware will undertake investigation of competitor wages and
seek to match or better if viable from a budgetary perspective.
Products/services
Market position
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Sim’s Hardware is a competitively priced hardware and home-improvement s supplier. Sim’s
Hardware consumers who appreciate high-quality, innovative products will recognise the
value and unique offerings of Sim’s Hardware.
Product
Sim’s Hardware supplies consumers and trades with high quality and world class innovative
products. To differentiate on product, Sim’s Hardware actively seeks Australian and
international suppliers who can fulfil requirements for both consistent quality and
exceptionally innovative solutions. Our competition, on the other hand focuses on a more
mass appeal for ‘tried and true’ products. Their customers expect a level of quality but will
compromise for the lowest prices possible.
Price
Sim’s Hardware prices its products to stay within the range of prices offered by competitors.
Sim’s Hardware offers a lowest price guarantee to consumers and a range of discounts and
incentives for trade customers.
Sim’s Hardware does not collude with competitors on pricing but does not seek to undercut
competitors. Such a pricing strategy is intended to maintain margins and signify higher
quality and brand prestige. While not seeking to pay more, our customers will generally risk
paying a little more for truly unique offerings and to ensure quality and expert service.
Service and customer experience
Sim’s Hardware offers a consistently high level of fast and friendly service provided by
skilled and experienced staff in an exciting and interactive environment. Service is a key
differentiator of Sim’s Hardware’s offering. On-site and off-site service will be delivered as
per customer needs and expectations in line with the Sim’s Hardware market positioning as
a premier service. For details see Sim’s Hardware customer service policy and charter.
Social and environmental responsibility
Social and environmental responsibility is also a key differentiator of Sim’s Hardware’s
offerings.
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As with some competition, Sim’s Hardware stores use recycled rainwater collected in tanks
for use on plants. Sim’s Hardware also recycles extensively. Sim’s Hardware also sponsors
community and sports events and provides support for charities. The business actively
promotes awareness of the social and environmental activities of Sim’s Hardware thorough
media campaigns.
Unlike our competition, however, Sim’s Hardware promotes its active research into
improving its environmental and social performance. Sim’s Hardware has committed to
public and detailed triple bottom line reporting and associated performance goals.
In addition, our products reflect our commitment to the environment and Sim’s Hardware
customers can expect to find our product range includes world-class green technology.
Where our competition has ‘hedged their bets’, Sim’s Hardware has fully committed to
supporting environmentally responsible living.
Anticipated demand
Market research indicates the demand for hardware and home improvement products will
continue to grow. According to IBISWorld market research, in 2012, the average Australian
household was expected to spend $2,554 on home renovations and improvements. This
figure was expected to increase by 4% over the next few years to reach $2,651 per
household by 2017–18.
Pricing strategy
Sim’s Hardware will maintain an average mark-up on purchase price of 35%. A review of this
strategy will be undertaken every six months to assure that gross profit remains within
target parameters set by the organisation.
In addition, if Sim’s Hardware price is identified by a customer to be above a competitor’s
price then price will be reduced to match the price offered by the competitor. Customers
are encouraged to offer documented proof in the form of competitors’ advertising material
or written quotes.
Value to customer
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To meet the needs of all segments, Sim’s Hardware offers top-quality products, everyday
low prices, expert service, community engagement and environmental responsibility.
Growth potential
Sim’s Hardware sees opportunity for growth through capture of market share and
increasing revenue through targeted marketing to Desired segments. According to
IBISWorld market research, if current trends continue, then revenue in the areas of
hardware and home -improvement is expected to grow by 23% over the next few years to
reach $14.2 billion in 2017–18.
Insurance
Even if current market share is maintained, Sim’s Hardware expects to capitalise on the
general growth of the market with the opening of 2–3 warehouses per year over the coming
four years.
Workers compensation
Sim’s Hardware provides workers compensation for employees in accordance with
legislative requirements.
Product liability
Sim’s Hardware has product liability insurance to $15 million.
Business assets
Sim’s Hardware fixed and current assets are insured to current value.
Legal considerations
Relevant legislation may include, for example:
● Privacy Act 1988 (Cwlth)
● state-based anti-discrimination Acts
● Australian Securities and Investments Commission Act 2001 (Cwlth)
● Competition and Consumer Act 2010, including the Australian Consumer Law (ACL)
● Corporations Act 2001(Cwlth)
● A New Tax System (Goods and Services Tax Administration) Act 1999 (Cwlth)
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● Income Tax Assessment Act 1997 (Cwlth)
● Fair Work Act 2009 (Cwlth)
● state-based OHS (occupational health and safety)/WHS (work health and safety)
legislation
● packaging and labelling laws
● increasingly stringent environmental laws.
Operations
Process
National marketing campaigns, warehouse look and feel, marketing mix, policy, preferred
suppliers and strategic directions are set by the board of directors and senior management.
Strategic directions set at the national level cascade to individual warehouses and are
reinterpreted by general managers to match local conditions at the store level. All staff KPIs
and targets for performance management reflect national and store strategic directions.
Each Sim’s Hardware store is run in most operational respects as an independent business.
Each store generally buys stock from approved suppliers; however, where appropriate,
store general managers have discretion to buy products to suit local market conditions.
Store general managers hire and train local staff and have wide discretion to participate in
community events and sponsorships.
Suppliers
Current Sim’s Hardware preferred suppliers are:
● Ace Consultants
● Action Marketing
● Australian Garden Furniture and Nursery
● Australian Timber Yards
● Australian Plumbing Supplies
● CoffeeVille
● National Homewares.
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Sim’s Hardware will endeavour to maintain good relations with suppliers through regular
owner level contacts as required.
Sim’s Hardware suppliers provide credit terms of 30 days, to which Sim’s Hardware will
strictly adhere.
In addition to maintaining good relations with current suppliers, Sim’s Hardware will
continue to identify new sources of products that will appeal to the evolving needs of
targeted segments. All suppliers to Sim’s Hardware are subject to regular audit by quality
assurance staff to ensure that they meet the standards outlined:
These standards include:
● financial viability
● control and continual improvement of processes to restrain costs
● awell documented and traceable quality system
● respect for the environment
● responsible control of remuneration for own employees and any sub-contractor
employees.
Plant and equipment
A detailed asset register of plant and equipment purchased and maintained by each
individual warehouse is maintained by the Operations General Manager and Store General
Manager.
Sim’s Hardware also maintains a detailed registry of fixed assets such as real estate held by
the company. This registry is the responsibility of the Chief Financial Officer of the company.
Inventory
Inventory for each warehouse is the responsibility of the Operations General Manager and
Store General Manager. Sim’s Hardware stock is tracked through its in-house enterprise
resource management (ERM) system.
Trading hours
Sim’s Hardware trades 7 days a week, 6am to 8pm.
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Communication channels
Customers are encouraged to contact us through email or Facebook. A telephone number is
provided on our website.
Payment types accepted
Sim’s Hardware accepts cash and all major credit cards and debit cards. EFTPOS is available
in all warehouses.
Credit policy
Sim’s Hardware has 30 day credit terms for approved tradespersons.
Memberships and affiliations
Sim’s Hardware is a member of the following organisations:
● Hardware Industry Working Group (HIWG)
● The Hardware Association of New South Wales (HANSW)
● The Housing Industry Association (HIA)
● The Master Builders Association (MBA).
Sustainability plan
Environmental/resource impacts
Sim’s Hardware packaging, waste and use of resources may impact the environment.
Community impact and engagement
A key component of the Sim’s Hardwaremarketing strategy is to communicate our
commitment to the environment and community.
Sim’s Hardwarewill engage with the community through our website and Facebook
campaigns to raise awareness and seek feedback.
Risks/constraints
Risks include high cost of sustainable packaging and potential opportunity cost of
environmental practices such as energy reduction. Staff may also be unaware of Sim’s
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Hardware strategic directions with regard to economic and social responsibility and may
need additional training.
Strategies
Sim’s Hardware will conduct monthly environmental audits and review. Sim’s Hardware will
also seek community engagement and feedback through media channels such as our
website and Facebook page.
Action plan
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The Market and Strategic Approach
Sim’s Hardware takes a two -pronged strategic approach to marketing characterised by
product and service differentiation along with select targeted marketing activities. Market
research has indicated a growing hardware and home improvement market within Sim’s
Hardware’s target markets. Consequently, Sim’s Hardware does not need to capture
competitors’ market share to grow; we focus on emphasizing our difference and growing
our customer base within our target markets.
Sim’s Hardware does not compete on price and simply ensures that its prices are not
undercut severely by competitors. As former CEO and
Chairman Eric Greenwright once remarked:
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‘We don’t sell really cheap hammers, you can by a cheaper hammer elsewhere. We sell the
singular experience of buying just the right tool for today’s needs’.
Sim’s Hardware’s approach may be described as a mix of a differentiation strategy and a
segmentation strategy. Sim’sHardware’s strategies have evolved over time, so to arrive at
our present, mixed approach, Henry Mintzberg’s emergent model may also be seen to
apply.
Because of Sim’s Hardware’s unique customer experience, we are different from our
competitors: we sell more innovative products; we know more about our products; we
showcase our products’ lifestyle benefits.
Sim’s Hardware customers are slightly more affluent, slightly more demanding, or have their
own trade customers with these attributes.
Market research
Market trends need to be accurately predicted to ensure that stores stock the most desired
product range for the evolving needs of customers.
Service needs and other needs relating to components of the marketing mix will also need
to be anticipated. Product life cycle needs to be predicted so that stock in stores is sufficient
to support sales initially but over-stocking does not give rise to a large accumulation of
outdated product.
Access to ongoing market research will be achieved through regular research activities
carried out by Action Marketing and Sim’s Hardware.
See the implementation milestones section for specific research activities. Marketing
General Manager, Elizabeth Madden,will manage market and marketing research and liaise
with Action Marketing. Customer feedback and suggestions are readily sought for
improvement of marketing activities.
Marketing objectives and sales targets
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Marketing objectives are:
● to position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points
● increase foot traffic to 1 ,000 people per day per store (from 800)
● increase website traffic to 20,000 visits per day
● drive sales and revenue growth in line with financial goals
● establish good will within our target market so that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
Sim’s Hardware sales targets are:
● $3 .7 billion annual sales
● Average $27 million per store.
The macro environment
Political environment
The political environment includes legislation and government legislative direction.
Relevant legislation may include, for example:
● Privacy Act 1988 (Cwlth)
● state-based anti-discrimination Acts
● Australian Securities and Investments Commission Act 2001 (Cwlth)
● Competition and Consumer Act 2010, including the Australian Consumer Law (ACL)
● Corporations Act 2001(Cwlth)
● A New Tax System (Goods and Services Tax Administration) Act 1999 (Cwlth)
● Income Tax Assessment Act 1997 (Cwlth)
● Fair Work Act 2009 (Cwlth)
● state-based OHS (occupational health and safety)/WHS (work health and safety)
legislation
● packaging and labelling laws
● increasingly stringent environmental laws.
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The last two types of legislation may be particularly important for Sim’s Hardware’s business
and marketing activities. As noted, sustainable business practices are becoming more
important to customers. More stringent packaging laws may allow Sim’s Hardware to
highlight its environmentally sustainable approach to business.
In a similar way, environmental legislation may allow Sim’s Hardware to promote its low-
impact approach to advertising while also disadvantaging the competition, which may need
to alter their practices to comply.
Finally, Sim’s Hardware anticipates that the Australian Government’s focus in future
legislative direction and fiscal policy will be centred on promoting growth in the face of the
continuing international debt crisis, poor growth and subdued consumer confidence.
Economic environment
Interestingly, sluggish growth and moderate increase
in the Australian unemployment figures may present an opportunity for hardware and
home-improvement retailers such as Sim’s Hardware. This opportunity exists despite other
retailers suffering from low consumer confidence, poor sales and overseas competition
particularly through e-commerce.
Hardware retailers have benefitted from the sense among homeowners that now is the
time to choose renovation and home improvements rather than selling and moving to an
already renovated house.
According to IBISWorld, the trend towards home improvements is linked to the increase in
residential housing prices, which is due to the housing
shortage and easier access to finance and government incentives, amongst other factors. If
current trends continue, the industry is expected to grow by 23% over the next five years to
reach $14.2 billion in 2016–17 .
Social environment
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Consumers are increasingly aware of the impact of business activity on the local community.
Consumers demand that businesses consider the impact of their activities and work to
promote healthy community involvement.
Consumers are also becoming more aware of working conditions in other countries want to
contribute to better global social and economic outcomes.
Consumers are also concerned about the environment. Sim’s Hardware will endeavour to
promote itself as environmentally and socially responsible and conduct business operations
accordingly. In this way, Sim’s Hardware will offer value to the socially and environmentally
aware consumer and position itself as a leader in social and environmental responsibility.
Technological environment
Internet, information, and social networking technologies continue to evolve and provide
new challenges and opportunities for marketing. Sim’s Hardware will continue with its
effective use of its website to promote and sell products and social networking to reach its
target markets.
Our customers
Sim’s Hardware’s customers span a wide range of the community and include tradespeople
and the general public. Many of these require little assistance, if any, to purchase product
whereas others rely heavily on the advice they can get to purchase product. Sim’s Hardware
encourage customers to come to their stores to take advantage of the service offered and
ensure that they will purchase all the items and equipment needed for a particular job.
In addition there is a growing number of online customers who are able to determine their
needs from the information they obtain from the Sim’s Hardware website. Continual
upgrade of Sim’s Hardware’s web site is required to counter existing and emerging
competitors. Some of these competitors most certainly will begin to sell online as a major
strategy to attract customers.
Key differences between our customers and customers of the competition:
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● our customers value quality more than price
● our customers require expert, knowledgeable service
● our customers are tech literate
● our customers demand sustainability
● our customers dream style and luxury.
Customer demographics
The profile for anSim’s Hardware customer consists of the following geographic,
demographic, and behaviour factors:
● Geographic
○ Our customers live in Australia, generally within 50Km of a major city or regional
population centre.
● Demographic
○ male and female, ages 20–60
○ full -time employment
○ an average income of $60,000.
● Behaviour factors
○ own home/mortgage or long-term rent and/or own or manage trade business
○tech literate
○moderately price sensitive
○value style and luxury
○value convenience
○value quality
○value customer service
○value customer experience
○value ethical and sustainable practices.
Numbers of customers estimated to be up to 7million people. See target market segments
for more detailed information on specific attributes.
Target segments
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The market has been divided into three target markets or segments: home improvers (3
million); DYIs (2 million); tradespersons – owners and managers of small to medium sized
businesses and individual contractors(up to 2 million).
Customer management
Sim’s Hardwarewill communicate with customers through mass media TV and magazines;
trade magazines; targeted direct mail; and social media campaigns. The company will
encourage feedback through email and social media and will highlight positive company
responses to feedback in marketing messages.
Sim’s Hardwarewill work to develop its strict customer service and product quality
standards and incorporate these into employee handbooks.
The micro environment: S.W.O.T. analysis
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Our competitors
Competitor details
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Advertising and sales
Sales and marketing objectives
● To position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points.
● Increase foot traffic to 1,000 people per day per store (from 800).
● Increase brand recognition and awareness of value proposition.
● Establish good will within our target market so that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
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Sales and distribution channels
The Future
Vision statement
Within five years, Sim’s Hardware will lead the hardware and home-improvement market in
Australia.
Mission statement
Sim’s Hardware provides the best quality hardware, homewares, garden supplies and
building materials from Australia and the world. Sim’s Hardware is committed to providing
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customers and tradespeople with value through everyday low prices, product quality, expert
service, community engagement and environmental responsibility.
Strategic directions for FY2018
● Increase sales revenue and gross profit.
● Maintain or increase market share.
● Control direct and indirect operational costs.
● Maintain superior product and service quality standards.
● Establish reputation of Sim’s Hardware as socially and environmentally responsible
company.
Action plan
Please note: This table does not include sustainability or marketing activities as they are
listed in the sections above.
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The Finances
Key objectives and financial review Financial objectives
1. Generate at least $300 million in sales per month.
2. Minimum 10–15 % increase in gross profit income each year.
3. Control fixed costs through disciplined growth.
4. Maintain COGS (cost of goods sold) at 50% of gross revenue.
Finance
Sim’s Hardware operations and investment in fixed assets are financed through reinvested
profits from previous years’ operational activities and investments.
Assumptions
The financial tables on the subsequent pages are based on the assumptions listed below:
● The unemployment rate in Australia remains at under 6%.
● Steady or moderately falling interest rates continue to underpin business and consumer
confidence.
● Growth across the economy proceeds at a modest 2–3%.
● Demographic and immigration trends for Australia continue.
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