Further information on Australian Hardware, including full business plan and financials can be accessed from IBSAs simulated business website: http://simulations.ibsa.org.au/
Business name: Australian Hardware Ltd Business structure: Public company since 1982. ABN: 4000000000 Business location: Australian Hardware is headquartered in Sydney, NSW. The business owns and operates 138 stores throughout Australia. Date established: 26 January 1921. Ownership and governance: The Greenwright family retains a controlling interest in Australian Hardware. Holden Greenwright serves as both chair of the Board of Directors and CEO. Products/services: Australian Hardware supplies hardware and home improvement products and provides expert advice and service.
Target market: The market has been divided into three target markets or segments: home improvers; DYIs; and tradespeople. Marketing strategy: Australian Hardware takes a two-pronged strategic approach, characterised by product and service differentiation along with select targeted marketing activities.
Vision statement: Within five years, Australian Hardware will lead the hardware and home improvement market in Australia.
Strategic directions: The Australian Hardware strategic directions are:
Key Personnel
Current staff
Position |
Name |
Chief Executive Officer (CEO) |
Holden Greenwright |
Chief Financial Officer (CFO) |
David Mifsud |
Chief Operating Officer (COO) |
Mary Chu |
Marketing General Manager |
Elizabeth Madden |
Human Resources General Manager |
Susan Black |
Store General Managers |
x 138 |
Required staff
Job title |
Quantity |
Expected staff turnover |
Necessary skills/experience |
Store General Manager |
3 |
3%/year |
Five years management experience running SME (small–medium enterprise). |
Timber Manager |
3 |
5%/year |
Trade-specific skills/ knowledge. Leadership skills. |
Plumbing and Electrical Products Manager |
3 |
5%/year |
Trade-specific skills/ knowledge. Leadership skills. |
Garden Products Manager |
3 |
5%/year |
Trade-specific skills/ knowledge. Leadership skills. |
Job title |
Quantity |
Expected staff turnover |
Necessary skills/experience |
Hardware and Home Products Manager |
3 |
5%/year |
Trade-specific skills/ knowledge. Leadership skills. |
General Store Operations Manager |
3 |
5%/year |
Trade-specific skills/ knowledge. Leadership skills. |
Sales Consultants |
TBC |
20%/year |
Product/trade-specific skill sets. Sales training. |
Cashiers |
TBC |
30%/year |
Some sales experience. |
Admin and office staff |
TBC |
10%/year |
Various accounting/clerical skill sets. |
Australian Hardware will deploy targeted advertising in trade magazines and online using organisations such as Seek.com.
Australian Hardware will undertake an investigation of competitor wages and seek to match or better.
Australian Hardware will offer a range of ongoing training options to meet business requirements and develop staff skills in the following areas:
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. |
Australian 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.
Australian Hardware will undertake investigation of competitor wages and seek to match or better if viable from a budgetary perspective.
Australian Hardware stores are located around Australia in all 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 Australian Hardware is considered likely to grow. These areas are targeted by Australian Hardware for either expansion of any existing stores or the building of a new store if none exists.
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. Specific targets are negotiated with employees.
Each Australian 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.
Current Australian Hardware preferred suppliers are:
Ace Consultants Action Marketing Australian Garden Furniture and Nursery Australian Timber Yards |
Australian Plumbing Supplies CoffeeVille National Homewares Train Your Way Up. |
Australian Hardware will endeavour to maintain good relations with suppliers through regular owner-level contacts as
Hardware suppliers provide credit terms of 30 days, to which Australian Hardware will strictly adhere.
In addition to maintaining good relations with current suppliers, Australian Hardware will continue to identify new sources of products that will appeal to the evolving needs of targeted segments.
All suppliers to Australian Hardware are subject to regular audit by quality assurance staff to ensure that they meet the standards outlined.
These standards include:
Product/ service |
Description |
Average Price/unit |
Timber |
A range of grades of timber for home or industrial use. For consumers and trades. Discount options for tradespeople. |
$25 |
Hardware |
A range of fittings, fixtures, etc. for consumers and trades. Discount options for tradespeople. |
$10 |
Tools |
A range of high quality Australian-made and imported tools. |
$30 |
Paint |
All major brands. For consumers and trades. Discount options for tradespeople. |
$30 |
Homewares |
Major Australian and international brands. Product line reviewed frequently. For consumers and trades. Discount options for tradespeople. |
$50 |
Outdoor |
Major Australian and international brands. Product line reviewed frequently. |
$100 |
Product/ service |
Description |
Average Price/unit |
Garden |
Seasonal plants and landscaping materials. For consumers and trades. Discount options for tradespeople. |
$25 |
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.
Australian 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 for each warehouse is the responsibility of the Operations General Manager and Store General Manager. Australian Hardware stock is tracked through its in-house enterprise resource management (ERM) system.
Australian Hardware trades 7 days a week, 6 am to 8 pm. Australian Hardware is closed on public holidays.
Customers are encouraged to contact us through email or Facebook. A telephone number is provided on our website.
Australian Hardware accepts cash and all major credit cards and debit cards. EFTPOS is available in all warehouses.
Australian Hardware has 30-day credit terms for approved tradespeople.
Australian Hardware is a member of the following organisations:
Revenue and market share (Wollongong)
Goals
Increase sales revenue and gross profit and maintain or increase market share |
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Operational objectives |
Performance measures |
|
Marketing objectives (national and Wollongong store): to position Australian Hardware as a provider of top quality, brand name hardware products 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. |
Marketing key performance indicators (KPIs) for the Wollongong store: numbers of customers per day (as recorded by automated systems) customer feedback rating on product quality, customer service and overall customer experience (as recorded on quarterly customer questionnaire) customer awareness of website (as recorded on quarterly customer questionnaire). |
Increase sales revenue and gross profit and maintain or increase market share |
||
Operational objectives |
Performance measures |
|
Sales training objectives (national and Wollongong store): staff are trained to competently perform all customer service related tasks staff are happy and motivated in their work staff are given pathways to learning and promotion. |
Sales training KPIs for the Wollongong store: various input (managerial) and output (sales performance) performance measures staff absenteeism ratio to total staff staff turnover ratio. |
Action plan
Increase sales revenue and gross profit and maintain or increase market share |
||||
Activity/strategy |
Approved resources |
Responsibility |
Timelines |
|
Marketing plan integration and coordination with store operations: provide direction to local marketing activities and coordinate with business plan induction and training of staff to include knowledge of campaigns and value propositions for segments. |
N/A |
National Chief Operating Officer (COO) Store General Manager Marketing General Manager Sales team leads Action Marketing external consultants |
30 June |
|
Paper flyers and catalogues: provide consumers with information on local store and products, drive sales in immediate geographic area. |
$75,000 per quarter |
Marketing General Manager |
Weekly |
|
Direct mail (email and paper) |
$50,000 per quarter |
Marketing General Manager |
Weekly |
Increase sales revenue and gross profit and maintain or increase market share |
||||
Activity/strategy |
Approved resources |
Responsibility |
Timelines |
|
Goodwill and sponsorships |
$75,000 per quarter |
Store General Manager Marketing General Manager |
Ad hoc |
|
Research local conditions |
$50,000 per year |
Marketing General Manager |
Quarterly |
|
Conduct customer questionnaire |
$25,000 per quarter |
Marketing General Manager Action Marketing external consultants |
Quarterly |
|
Staff sales training |
$100,000 per year |
Marketing General Manager Sales team leads |
Weekly and quarterly and ad hoc |
Control of direct and indirect operational costs (Wollongong)
Goals
Control direct and indirect operational costs |
||
Operational objectives |
Performance measures |
|
Financial objectives (national and Wollongong store): reduce the overhead per store through disciplined growth decrease the cost of sales. |
Financial KPIs for the Wollongong store: quarterly budget variation reports ($ variance and % variance) quarterly financial management reports. |
|
Training objectives (national and Wollongong store): staff are informed of performance targets with respect to budgetary control. |
Training KPIs (Wollongong store): various input (managerial) and output (sales performance) performance measures. |
Action plan
Control direct and indirect operational costs |
||||
Activity/strategy |
Approved resources |
Responsibility |
Timelines |
|
Review of Wollongong budget and monthly/quarterly financial management reports (remitted to Sydney head office FARM committee) |
N/A |
Store General Manager Store Financial Manager |
Monthly/quarterly |
|
Renegotiation with suppliers negotiate on basis of sales volume negotiate on basis of ability to purchase stock on a cash basis. |
N/A |
Store General Manager |
Monthly or as required |
|
Staff are informed of performance targets with respect to budgetary control occurs during biannual performance reviews as per company policy training costs per year/employee. |
N/A |
All managerial staff/ line managers |
Biannually for each staff member |
Goals
Maintain superior product and service quality standards |
||
Operational objectives |
Performance measures |
|
Quality objectives (national and Wollongong store): maintain superior product quality maintain superior service standards. |
Quality KPIs for the Wollongong store: supplier audit rating score on customer satisfaction survey on parameters of product and service excellence score on mystery shopper checklist customer feedback rating on product quality, customer service and overall customer experience (as recorded on quarterly customer questionnaire) customer awareness of website (as recorded on quarterly customer questionnaire). |
|
Sales training objectives (national and Wollongong store): staff are informed of performance targets with respect to service standards. |
Sales training KPIs for the Wollongong Store: individual employee balance scorecard ratings (linked to company strategic directions). |
Action plan
Maintain superior product and service quality standards (action plan) |
||||
Activity/strategy |
Approved resources |
Responsibility |
Timelines |
|
Conduct spot checks on quality of service: mystery shopper team leader observations. |
$50,000 per year (part of training budget) |
Mystery shopper (organised by Action Marketing external consultants) Team leaders/ line managers |
Biweekly |
|
Supplier audit |
N/A – national budget |
Store General Manager |
Quarterly |
|
Conduct customer questionnaire |
$25,000 per quarter (part of marketing budget) |
Marketing General Manager Action Marketing external consultants |
Quarterly |
|
Staff are informed of performance targets with respect to service quality: occurs during biannual performance reviews as per company policy. |
N/A |
All managerial staff/ line managers |
Biannually for each staff member |
Establish reputation of Australian Hardware as socially and environmentally responsible company |
||
Operational objectives |
Performance measures |
|
Environmental/social objectives (national and Wollongong store): source and use ethically produced and environmentally sustainable products operate environmentally sustainable business reduce water consumption reduce energy consumption. |
Environmental/social KPIs for Wollongong store: score on rating table of supplier reliability score on spot-check checklist reduce water usage by 10% per year reduce power usage by 7% per year. |
|
Sales training objectives (national and Wollongong store): staff are trained to competently perform all tasks staff are happy and motivated in their work. |
Sales training KPIs for Wollongong store: individual employee balanced scorecard ratings (linked to company strategic directions) 100% staff trained two performance management sessions per year per staff member, including environmental KPIs. |
Action plan
Establish reputation of Australian Hardware as socially and environmentally responsible |
||||
Activity/strategy |
Approved resources |
Responsibility |
Timelines |
|
Conduct spot checks on environmental practices at stores. |
N/A – national budget |
All managerial staff/ line managers with responsibility for training and performance management |
Biweekly |
|
Sustainability practices: use of rainwater tanks to collect water from large roofs and grey water usage use of skylights use of solar arrays on roof. |
N/A – national budget |
Store General Manager |
Fourth quarter 2013 |
|
Conduct quarterly environmental audit: audits conducted quarterly to ensure targets met and to take appropriate action to remedy poor performance. |
N/A – national budget |
External consultants |
Quarterly, 2013 |
Establish reputation of Australian Hardware as socially and environmentally responsible |
||||
Activity/strategy |
Approved resources |
Responsibility |
Timelines |
|
Complete environmental training: environmental training part of induction environmental targets count towards performance targets for each employee. |
N/A – national budget |
All managerial staff/ line managers with responsibility for training and performance management |
On each induction; performance management sessions for each employee held biannually |
|
Conduct environmental review of suppliers: audit conducted as part of monthly and quarterly supplier quality audits review of supplier credentials and preparation of report with supplier ratings tables. |
N/A – national budget |
Store General Manager |
First monthly/quarterly audit starting August 1 Review of suppliers; fourth quarter, 2013 |
Establish reputation of Australian Hardware as socially and environmentally responsible |
||||
Activity/strategy |
Approved resources |
Responsibility |
Timelines |
|
Conduct survey of local market environmental concerns via internet and social media: survey conducted as part of market and marketing research undertaken by Action Marketing in course of normal market research local customer complaints data analysed for environmental concerns. |
N/A – national budget |
Action Marketing external consultants |
Quarterly, 2013 |
|
Yearly environmental audit |
N/A – national budget |
Line managers for each product area and general operations and administration |
30 June 2013 |
Australian Hardware recognises that risk management is an essential component of good management practice and is committed to the proactive management of risks across the organisation. The strategy is designed to:
Australian Hardware is committed to achieving its vision, business objectives and quality objectives. This will be achieved through the proactive management of risk at all levels of the organisation. Australian Hardware acknowledges that embracing innovative ideas and practices carries with it risks, but that these are identifiable and measurable and therefore capable of being subject to realistic risk mitigation processes.
Store managers have responsibility for ensuring that risk management is in place.
Managers have the responsibility of reviewing the Risk Action Plan (outlined in the table at the end of this document) on a monthly basis.
Staff are to support and implement policies approved by the store managers.
Key risk indicators will be identified, closely monitored and action taken, where necessary, by all employees of Australian Hardware.
This framework encompasses a number of elements that together facilitate an effective and efficient operation, enabling Australian Hardware to respond to a variety of operational, financial, commercial and strategic risks. These elements include:
Risks are identified on a scale of likelihood of occurring in the next 12 months and assigned an impact or consequence of the risk as high, medium or low. High includes either a significant shortfall of around 40% in achieving budget or a significant reduction in ability to function. Medium includes either a shortfall of budget of between 10% and 20% or some reduction in function, and low indicates minor reductions in achieving budget or minimal reduction in performance.
Risk |
Risk impact |
Controls |
Monitoring |
Timelines |
Responsible |
|
Difficulty sourcing or training skilled and experienced staff. |
Medium |
High |
Targeted advertising in trade magazines and online. Promotional focus on training and development opportunities. Regular training for existing staff. |
Regular investigation of competitor wages, seeking to match or better if viable from budgetary perspective. |
Monthly and quarterly |
Human Resources General Manager, Store General Managers and General Operations Manager. |
Wastage or unsaleable stock from poor inventory maintenance and sales monitoring. |
Medium |
High |
Continuous monitoring using in-house ERM system Daily contact with suppliers. |
Daily automated monitoring (with alerts for issues) and anticipation of demand through ongoing research and analysis in consultation with market research consultants. |
Daily monitoring Monthly and quarterly sales and demand analysis |
Store General Managers, General Operations Manager, COO, and Marketing General Manager. |
Risk |
Risk |
Risk impact |
Controls |
Monitoring |
Timelines |
Responsible |
Emergence of a competitor. |
Low |
High |
Continuous implementation of marketing strategy to highlight key points of difference between Australian Hardware and competitors. Increased frequency of promotional campaigns. Selective discounting. Adjustment of marketing strategy to ensure differentiation and appropriate positioning of Australian Hardware in order to compete effectively. |
Continuous monitoring of competitors’ campaigns. |
Monthly |
Marketing General Manager. |
<tdMonitoring
Risk |
Risk |
Risk impact |
Controls |
Timelines |
Responsible |
|
Poor product quality from suppliers. |
Low |
Medium to high |
Continual audits of product quality. |
Audit of supplier quality. Customer complaints monitoring. |
Monthly |
Store General Managers, General Operations Manager, COO, and Marketing General Manager. |
Environmental risk due to operations of Australian Hardware. |
Low |
Medium to high |
Staff training (at all levels) on sustainable practices at Australian Hardware. |
Continual audits of supplier environmental responsibility with regard to sustainability principles. Continual auditing of environmental performance against sustainability plan and external benchmarking. |
Monthly |
Store General Managers, General Operations Manager, COO. |
Risk |
Risk |
Risk impact |
Controls |
Monitoring |
Timelines |
Responsible |
Risks to community due to operations of Australian Hardware. |
Low |
Medium to high |
Community consultation. Media campaigns, for example, to encourage proposals for sponsorship of community events. |
Community consultation. Marketing questionaries. External benchmarking. Triple bottom line reporting at the individual store level and corporate level. |
Monthly |
Store General Managers, General Operations Manager, COO, and Marketing General Manager. |
Failure to comply with legislation in jurisdictions across Australia. |
Low |
High |
Regular maintenance of legislation register. Regular update of policies and procedures. |
Monthly monitoring of legislative environment. Triple bottom line reporting at the individual store level and corporate level. |
Monthly |
Store General Managers, General Operations Manager, CFO and legal team. |
Australian Hardware acknowledges its role as a responsible corporate citizen. Australian Hardware’s success will result not simply from satisfying specific equipment needs for a quality product at reasonable prices, but from conducting its business with integrity and in accordance with the core values of the organisation.
Employees and officers of Australian Hardware are expected to:
Purpose |
The purpose of this policy is to ensure transactions with customers of Australian Hardware and other employees are handled fairly and transparently and in accordance with organisational and legal requirements. Generally, it is unlawful to discriminate on the basis of the following 19 characteristics: age physical features breastfeeding - political belief or activity employment - activity pregnancy gender identity - race impairment or - religious belief or activity disability - sex industrial activity - sexuality irrelevant medical or- social origin or migration criminal record - status lawful sexual activity - personal association with marital status - someone who has, or is parental or carer - assumed to have, any of status the above characteristics. |
Scope |
The scope of this policy covers all employees and contractors of Australian Hardware. |
Responsibility |
Responsibility for the implementation of this policy rests with all employees, contractors and management of Australian Hardware. |
Relevant legislation |
Privacy Act 1988 (Cwlth) Anti-discrimination Act 1977 (NSW) Age Discrimination Act 2004 (Cwlth) Australian Human Rights Commission Act 1986 (Cwlth) Disability Discrimination Act 1992 (Cwlth) Racial Discrimination Act 1975 (Cwlth) Sex Discrimination Act 1984 (Cwlth). |
Updated/ authorised |
20/09/2013 – Mary Chu (COO) |
Reasonable adjustments are changes that allow people with a disability to work safely and productively.
Australian Hardware will make reasonable adjustments for a person with a disability who both:
Examples of reasonable adjustments can include:
When thinking about reasonable adjustments, Australian Hardware will weigh up the need for change with the expense or effort involved in making it. If making the adjustment means a very high cost or great disruption to the workplace, it is not likely to be reasonable.
In some cases, Australian Hardware can discriminate on the basis of disability, if either:
If you believe you are being, or have been, discriminated against, sexually harassed or bullied, you should follow this procedure:
Employees should feel confident that any complaint they make is to be treated as confidential as far as possible.
When a manager receives a complaint or becomes aware of an incident that may contravene Australian Hardware equal employment opportunity (EEO) policies, then they should follow this procedure:
If an investigation is requested or is appropriate, follow the next procedure.
When a manager investigates a complaint, they should follow this procedure:
Following the investigation, if management finds the complaint is justified, then management will discuss with appropriate outcomes with the complainant which may include:
Purpose |
This policy establishes the framework and guidelines to be used by Australian Hardware in determining remuneration arrangements for its employees and to assist staff in understanding the organisation’s position on staff remuneration. The purpose of the policy is to: attract and retain employees of the required quality ensure that staff are appropriately compensated for the services they provide to the organisation ensure that remuneration levels are competitive with the external market encourage and motivate staff to achieve the organisation’s strategic business objectives promote and reinforce the organisation’s key values and appropriate employee behaviours ensure a level of equity, consistency and transparency in employee remuneration. |
Scope |
The staff remuneration policy covers all employees at all levels of the organisation. |
Responsibility |
Responsibility for the implementation of this policy rests with human resources staff and relevant managers of hiring departments. |
Relevant legislation |
Fair Work Act 2009 (Cwlth) Privacy Act 1988 (Cwlth) Anti-discrimination Act 1977 (NSW) |
Updated/ authorised |
20/09/2013 – Mary Chu (COO) |
Remuneration will comprise base salary, an ‘at risk’ performance pay component, employer guarantee superannuation, and motor vehicle allowance where this is included in an employee’s employment package. The total of these components make up the employee’s remuneration package.
Staff covered by the relevant underlying modern award, will be paid no less than the rate of pay set out in that award for the relevant position.
Base salary levels will be determined by job evaluation. Job evaluation is the evaluation of the position based on the information in the relevant position description, in terms of the level of required skills, competencies and knowledge, and criteria, such as the level and impact of decision- making and authority to act.
Job evaluation will be carried out by the relevant store manager. The underlying principles of job evaluation include:
Staff will be provided with individual performance plans/work plans for the subsequent financial year. For new employees, a performance plan will be provided at the end of the probation period (first three months of employment). In further years, work plans are agreed upon after the July/August performance review has been conducted.
The performance plans/work plans set out the contribution expected of the role in supporting the achievement of the organisation’s strategic plans and objectives: the actions or activities required to achieve those objectives; and the criteria or standards used to assess the achievement of the objectives. In addition to business plans outcomes, the work plans will include specific project and personal development goals. For sales staff, the performance plans will detail the sales targets for the period.
Performance appraisals will be conducted on a six-monthly (biannual) basis: in late July/early August, and in late January/early February.
Further information on performance appraisals can be found in the next policy: Performance Management Policy.
The outcomes of this review will be the finalisation of the performance outcomes for the previous financial year period ending June. This review will also include discussion and sign-off of the performance plan for the coming financial year commencing July 1.
The January/February review is to assess progress towards the achievement of the employee’s performance plan targets.
The appraisals also provide a formal avenue for employees and their managers/supervisors to discuss issues relating to or affecting the employee’s job performance and to discuss and clarify the manager’s/supervisor’s expectations of the employee and vice versa. It is also an opportunity to discuss remuneration and employee training and development needs and opportunities.
Purpose |
The development and progress of individual employees is fundamental to Australian Hardware’s future performance. In addition to providing the opportunities for professional development, Australian Hardware aims to help individuals by monitoring and supporting them in their personal growth and development. The aims of this policy are to ensure: employee development opportunities are recognised and implemented efficiently and effectively consistent employee development practices and principles are applied across the organisation employees are developed systematically on the basis of defined needs and that development undetaken is cost-effective and meets agreed standards. |
Scope |
The scope of this policy covers the performance management process by employees and contractors of Australian Hardware. |
Responsibility |
Responsibility for the implementation of this policy rests with managers of employees at Australian Hardware. Further information on roles and responsibilities is discussed within this policy. |
Relevant legislation |
This policy is guided by the procedures set by industrial law, awards and employment agreements that apply to Australian Hardware. Among others, they include: Privacy Act 1988 (Cwlth) Anti-discrimination Act 1977 (NSW) Fair Work Act 2009 (Cwlth). |
Updated/ authorised |
20/09/2013 – Mary Chu (COO) |
Managers will:
Employees will:
The employee’s performance will be monitored and evaluated regularly throughout the year. The performance review encompasses three elements:
Goal setting and work planning is to be undertaken in consultation with affected managers, teams and individuals on the following basis:
The annual discussion is a key step in the performance review process. Essentially, this step involves compiling all the information collected and assessed throughout the year relating to the employee’s performance.
However, there should be no surprises in this discussion; it is merely a summary and review of the informal and formal reviews conducted throughout the year.
The key elements of the annual discussion are to:
The performance review documentation is important for recording the standards, targets and development plans that are agreed upon during the performance review process. It is important to use the correct forms to
maintain the integrity of the information, and to help the manager and employee ensure that the review is completed correctly.
Employee performance is to be formally reviewed every 12 months with a follow-up review six months into the financial year. A new plan should be completed at each annual appraisal discussion.
The follow-up review provides an opportunity for managers and employees to re-visit targets, standards and development plans to:
Flow chart of the performance review process
Performance management plan template
Name and position: |
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Manager: |
Review period: |
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Reference from operational plan |
Key result area |
Indicator of success/ performance |
Status report/results |
|
Next review period: |
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Achievements: |
Areas of opportunity: |
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Manager’s comments: |
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Signature: |
Date: |
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Staff member’s comments: |
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Signature: |
Date: |
Purpose |
The purpose of this policy is to outline Australian Hardware’s approach to disciplinary action in cases of underperformance or misconduct. Where warranted, Australian Hardware will use improvement processes to improve performance. Should such improvement processes be unsuccessful in improving an employee’s performance, Australian Hardware may decide to end an employee’s employment. Depending on the circumstances, performance improvement action may include verbal or written warnings, counselling or re-training. Australian Hardware requires a minimum standard of conduct and performance which will be made clear to employees at induction and in performance reviews. If an employee does not meet this standard, Australian Hardware will take appropriate corrective action, such as training. Formal performance improvement procedures will generally only start when other corrective action fails. If an employee deliberately breaches business policy or procedure, or engages in misconduct, Australian Hardware may start improvement procedures, or, in cases of serious misconduct or breach of policy, may dismiss an employee. Each employee must understand their responsibilities, be counselled and given the opportunity to reach the standards expected of them. Australian Hardware will give an employee the opportunity to defend themselves before management takes further action. |
Scope |
The scope of this policy covers the performance management process by employees and contractors of Australian Hardware. |
Responsibility |
Responsibility for the implementation of this policy rests with managers of employees at Australian Hardware. Further information on roles and responsibilities is discussed within this policy. |
Relevant legislation |
This policy is guided by the procedures set by industrial law, awards and employment agreements that apply to Australian Hardware. Among others, they include: Privacy Act 1988 (Cwlth) Anti-discrimination Act 1977 (NSW) Fair Work Act 2009 (Cwlth). |
Updated/ authorised |
20/09/2013 – Mary Chu (COO) |
Procedure
Note: Some circumstances justify going straight to a second or final warning.
Summary (instant) dismissal for gross or very serious misconduct may be necessary, depending on the circumstances. Management should seek advice before taking this step.
Updated/ authorised |
20/09/2013 – Lynn Lee (Finance Manager Wollongong) |
Australian 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 Australian 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.
We aim to resolve problems and grievances promptly and as close to the source as possible. When necessary, Australian 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.
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.
Purpose |
The purpose of this policy is to outline the organisation’s approach to recordkeeping. At Australian Hardware, records management systems are based on developing and implementing recordkeeping policies, procedures, and practices to meet the operational needs of the organisation and that comply with externally imposed standards such as legislation. Implementation strategies for recordkeeping systems include: ensuring the system meets all operational and strategic needs of needs Australian Hardware documenting the system (see procedures) training personnel to create and store records setting standards for recordkeeping and monitoring use of systems ensuring all legislative requirements are met, including for retention periods. |
Scope |
This policy applies to all officers, employees and contractors of Australian Hardware. |
Responsibility |
Responsibility for the implementation of this policy rests with managers of employees at Australian Hardware. Further information on roles and responsibilities is discussed within this policy. |
Relevant legislation |
This policy is guided by the procedures set by industrial law, awards and employment agreements that apply to Australian Hardware. Among others, they include: the international standard for recordkeeping: AS ISO 15489.1-2002 Records management - general. Privacy Act 1988 (Cwlth) Anti-discrimination Act 1977 (NSW) |
Updated/ authorised |
20/09/2013 – Mary Chu (COO) |
Employee records include, for example:
Although not a legislative requirement, Australian Hardware employees, officers and agents are expected to take all reasonable steps to abide by the Australian Privacy Principles, as set out in the Privacy Act 1988.
The following is an adaptation of the principles to provide guidance to individuals responsible for collecting or using employee information.
13. Correction of personal information
Australian Hardware employees, officers or agents must take all reasonable steps to correct the personal information it holds about individual when requested by that individual, in a timely manner, and at no cost to the individual.
Create a personal subfolder within the server (using your name as the subfolder name) to hold your day-to-day working files.
Do not store company data in the C: drive on your computer (your computer’s in-built hard drive) unless absolutely necessary. Company data should be stored in the appropriate server drive. Unlike the servers, which are backed up automatically, data on your computer’s hard drive is not backed up and your work may be lost if you experience a system crash.
If you use a laptop and require access to files off-site, you will be set up with offline files allowing remote access to server files away from the office.
‘Move’ completed files to the appropriate folder in your department.
Filename should include the author’s last name, short description or abbreviated title of report or document, and date of completion.
Back-up copies of all electronic files on the server are made twice weekly.
If you spend an extended time away from the office network using a laptop, it is your responsibility to ensure local copies of company files are backed up.
Purpose |
Procurement is also called ‘supply management’ or ‘purchasing’. The procurement policy is concerned with processes that control incoming products and materials. The purpose of this policy is to ensure the purchase of resources is carried out consistently, fairly and transparently and in accordance with Australian Hardware requirements. |
Scope |
The scope of this policy covers the purchasing and acquisition of resources by employees and contractors of Australian Hardware. |
Responsibility |
Responsibility for the implementation of this policy rests with employees and management of Australian Hardware’s stores with responsibility for purchasing resources. |
Relevant legislation |
Privacy Act 1988 (Cwlth) state anti-discrimination legislation state health and safety legislation Australian Securities and Investments Commission Act 2001 (Cwlth) 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). |
Updated/ authorised |
20/09/2013 – Lynn Lee (Finance Manager Wollongong) |
The principle of probity (which means to have strong moral principles, honesty and decency) and ethical behaviour governs the conduct of all procurement activities. Employees who have authority to procure goods and services must comply with the standards of integrity, probity, professional conduct and ethical behaviour. Employees or directors must not seek to benefit from supplier practices that may be dishonest or unethical.
Follow the sustainability policy and principles outlined in the sustainability policy when procuring supplies.
Value for money is the core principle underpinning procurement. Organisations contracted to do work for Australian Hardware must be cost- effective and efficient in the use of resources while upholding the highest standards of probity and integrity.
In general, a competitive procurement process that is carried out in an open, objective and transparent manner can achieve best value for money in procurement.
This procurement policy requires that the procurement process is non- discriminatory. All potential contracted suppliers should have the same opportunities to compete for business and must be treated equitably based on their suitability for the intended purpose.
Risk management involves the systematic identification, analysis, treatment of risk as well as, where possible, the implementation of appropriate risk mitigation strategies. It is integral to efficiency and effectiveness to proactively identify, evaluate, and manage risks arising out of procurement related activities. The risks associated with procurement activity must be managed in accordance with the organisation’s risk management policy.
The principle of responsible financial management must be applied to all procurement activities. Factors that must be considered include:
In order to achieve value for money, each procurement process must be well planned and conducted in accordance with the principles contained in this document. The process must also comply with all of the organisation’s policies and relevant legal and regulatory requirements.
When planning appropriate procurement processes, consideration should be given to adopting an approach that:
Employees who are involved in procurement activities must make a conscious effort to maximise opportunities for Australian manufacturers and suppliers to provide products where there is practicable and economic value. In making a value-for-money judgement between locally made and overseas-sourced goods, employees are to take into account:
Australian Hardware shall maintain a pre-registered list of preferred suppliers and contractors.
This list is reviewed at regular intervals with admission of interested parties on a rolling basis. Care should be taken to ensure that such lists are used in an open and non-discriminatory manner. The list should be maintained in accordance with the sustainability policy. Suppliers must be audited once per year with regard to sustainable practices. It is in the interests of the organisation that the pool of potential suppliers is actively maintained and updated. Employees should provide reports of their experiences in working with each supplier/contractor to assist future decisions concerning the list.
Employees and directors are not permitted to personally gain from any aspect of the procurement process. Employees and directors are required to be free of interests or relationships in all aspects of the procurement process.
For those individuals who are involved in procurements, any investment in, or close relationship with, a contractor represents a conflict of interest. This individual must disclose the conflict of interest to the Store Manager or Finance Manager to allow sufficient time for a review.
Employees and directors shall ensure that to the best of their knowledge, information and belief, that at the date of engaging a supplier or contractor that no conflict of interest exists or is likely to arise in the performance of the supplier/contractor’s obligations under their contract.
Should employees or directors become aware of potential conflicts of interest, they must advise the Store Manager or Finance Manager and directors immediately.
Employees should be aware of anti-competitive practices such as collusive tendering.
Collusive tender would occur if an employee of Australian Hardware were to secretly share information or arrange a situation that would control the result of tendering to favour or discriminate against particular applicants.
Any evidence of suspected collusion in tendering should be brought to the attention of the Store Manager or Finance Manager.
It is a basic principle of procurement that a competitive process should be used unless there are justifiably exceptional circumstances. The type of competitive process can vary depending on the size and characteristics of the contract to be awarded.
A process of direct sourcing to tender may be used. This may involve an invitation to organisations deemed appropriately qualified for a particular product or service (this may be appropriate for specialised requirements in markets where there is a limited number of suppliers or service providers).
The selection process should have particular regard to the need for equal treatment and reasonable distribution of opportunities.
For projects being awarded, consideration will be given not only to the most economically advantageous tender, but also to the track record of the
tender respondent and the degree of confidence that the panel has in the quality if the bid. It will be the normal practice to have the evaluation of tenders carried out by a team with the requisite competency.
All tender respondents should be informed in writing of the result of a tendering process immediately after a contract has been awarded.
Role |
Purchase amount |
Required number of quotes |
Comment |
Store General Manager |
Authority to sign contracts for products and services up to $200,000. Must seek approval from national Chief Operating Officer (COO) for amounts above $200,000. |
Two or more competitive quotes for contracts over $75,000. |
Must be within the approved budget and consistent with business/ operational and strategic planning. Detailed services contract required. |
Finance Manager |
Authority to sign contracts for products and services up to $75,000. |
Two or more competitive quotes. |
Must be within the approved budget and consistent with business/ operational and strategic planning. Detailed services contract required for contracts over $20,000. |
Product managers |
Authority to sign contracts for products and services under $30,000. |
One or more competitive quotes preferred. |
Must be within the approved budget and consistent with business/ operational and strategic planning. Detailed services contract required for contracts over $20,000. |
Expenditure payment approval form
For completion by person verifying payment |
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Date: |
Invoice date: |
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Payee name: |
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Job/project number: |
Project title: |
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Description of payment: |
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Payment amount: $ |
☐ ex. GST inc. GST |
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Signatures: |
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Person verifying payment |
Delegated manager |
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For completion by Finance: |
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Account number |
Account name |
Amount |
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Total Payable: |
$ |
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Approved: |
Date: |
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Store General Manager: |
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Finance Manager: |
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Product Manager: |
Purpose |
The purpose of this policy is to explain Australian Hardware’s approach to sustainability. Australian Hardware takes its commitment to the sustainable and socially responsible use of resources seriously. |
Scope |
The scope of this policy covers all employees and contractors of Australian Hardware in ensuring that sustainable practices are adopted and maintained at the Wollongong Store. |
Responsibility |
Responsibility for the implementation of this policy rests with employees and management of Australian Hardware. Management and the Board of Directors are responsible for: following and improving the implementation of the sustainability plan and sustainability principles the effective implementation and regular review of sustainability procedures, including yearly environmental audit consultation with employees regarding sustainability issues and changes to legislation and/or working practices that may affect the workplace providing and maintaining a sustainable system of working practices providing support, training and supervision to employees to ensure sustainable practices are carried out, including relevant training where appropriate the provision of adequate resources for employees to meet the sustainability commitment. Individual employees are responsible for: following all sustainability policies and procedures ensuring that they report all potential and actual risks to their managers/supervisors; risk management must consider triple bottom line related risk |
following the sustainability principles and alerting management to breaches of the principles or opportunities to improve performance encouraging others to follow sustainable working practices in the workplace where relevant, purchasing from suppliers in accordance with sustainability principles where relevant, auditing suppliers with respect to sustainability. |
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Relevant legislation and standards |
Environment Protection and Biodiversity Conservation Act 1999 (Cwlth)(the EPBC Act) National Environment Protection Council Act 1995 (NSW) AS/NZS ISO 14001:2004 environmental management systems - requirements with guidance for use. |
Updated/ authorised |
06/2012 – Lynn Lee (Finance Manager Wollongong) |
Sustainability principles
Australian Hardware adheres to the following six sustainability principles:
Taking action now to reduce environmental risk |
Consider the risk to the environment as part of risk management at Australian Hardware. Take action immediately to reduce environmental risk, as you would with any other risk such as health and safety or financial risk. |
Intergenerational fairness |
Consider whether the actions of Australian Hardware deplete or use up resources that could be used by later generations. Is your business or workplace activity fair to people who will live tomorrow as well as those who live today? Ensure the next generation is fairly treated by Australian Hardware! |
Sustainable use of natural resources |
Consider whether Australian Hardware uses natural resources at the rate they are naturally replenished. If not, how will Australian Hardware compensate for unsustainable use? Compare like businesses to Australian Hardware. Does Australian Hardware use resources more sustainably than all other comparable businesses? |
Maintenance of biological diversity |
Consider how Australian Hardware contributes to or diminishes the variety of life on the planet. Biological diversity is important for maintaining ecosystems that contribute to the overall health of the planet. What ecosystems are disturbed by the location of the hardware store and associated car park? How can this be prevented/offset? What ecosystems are disturbed by production and distribution of purchased products? How can this be prevented/offset? |
Enhanced economic and social wellbeing |
Consider how Australian Hardware attributes value or cost to business activity. Is wastage considered (and calculated) as a cost to the environment (which has to be paid by someone), or only as a cost in relation to the narrower financial interests of the business (only the cost of disposal)? Consider how Australian Hardware’s use of resources contributes to social wellbeing. Are people in your community better-off or happier as a result of Australian Hardware business activities? Ensure the community is better off because of Australian Hardware! |
Strengthened community |
Consider how Australian Hardware’s use of resources contributes to community. Are people in your community more connected with their community as a result of Australian Hardware’s business activities? Ensure the community is stronger and more cohesive because of Australian Hardware! |
The waste hierarchy is an effective approach to waste management, which should be applied by all employees of Australian Hardware with direct or indirect responsibility for waste management. The diagram below demonstrates the stages.
An environmental audit should be performed yearly by each line manager at Wollongong Australian Hardware. General operations and administration staff should use the sustainable office checklists provided by the Department of Environment Climate Change and Water:
Assessment instructions
You have been employed by Australian Hardware, which is a start-up homeware/hardware business. You role is to help develop and implement strategic plans that support the direction and aspirations of the business.
You are to obtain a copy of the business plan from your employer (who will be role-played by your assessor), and read it carefully. Once understood, you are to arrange a time to meet with your employer (your assessor) to
identify company goals and aspirations, and to clarify the business plan where required.
Next, you are to develop a detailed operational plan that ensures the objectives and strategies outlined are met by work teams. As a minimum, your operational plan must outline:
It is important that you also include details on how the plan will be implemented, monitored and reviewed!
Along with your operational plan, you are to develop and provide all relevant policies and procedures relating to:
It is important that you:
Once developed, you are to arrange a meeting with your assessor, who will role-play your supervisor. The purpose of this meeting is to explain and gain approval for the implementation of your plan. You must be well prepared for this meeting, as your supervisor will be asking you detailed questions, and reasons for your proposal.
Assessment Summary
You are to submit the following
Submission - Evidence you are to submit the following evidence for each assessment process:
Assessment instructions
Follow in g Final Assessment Task 1, you are to prepare for and implement your operational plan in part. Your implementation will encompass running a meeting for your team in which you:
recruitment
resource allocation
intellectual property
It is important that you are prepared for this session, ensuring you:
Your assessor will observe you running the meeting.
Meeting Context
Things to consider whilst performing this task:
Things to consider whilst role -playing an employee:
Remember, you will be required to both run the meeting, and role-play an employee (during another students assessment), so be sure to perform at your best at all times.
Assessment Summary
You are to submit the following
Assessment Summary
You are to submit the following
Submission- Evidence you are to submit the following evidence for each assessment process:
For this assessment, you are to interview your assessor and gather the required data to review the implementation of your operational plan. To perform this task satisfactorily,you must be prepared, as your assessor will only provide you with answers to questions asked.
In performing this task, you should:
Once you have gathered this information, you are to provide a written report that:
You are to submit the following
Submission- Evidence you are to submit the following evidence for each assessment process:
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