BSBPMG522 Undertake project work1Housekeeping.docx

BSBPMG522 Undertake project work
1
Housekeeping
Emergency procedures
Mobiles and security Issues
Break times and smoking policy
This course is interactive – ask questions
Practise respect and confidentiality
Ground rules
2
Objectives
Know how to define project
Understand how to develop project plan
Learn how to administer and monitor project
Discover how to finalise and review project
Gain the skills and knowledge required for this unit
Define project

1.1. Access project scope and other relevant documentation
4
Project scope and other relevant documentation may include:
Contract or other agreement
Project brief
Project plan or summary.
The following areas define and form the scope of the project:
The outcomes / benefits
The customers / stakeholders
The work / tasks which are required
The resources (both human and financial)
Criteria by which the project’s success will be evaluated.
Define project
1.2. Define project stakeholders
7
Stakeholders may include:
Clients or customers (internal and external)
Funding bodies

Management, employees and relevant key personnel (internal
and external) with special responsibilities
Project sponsor.
Defining stakeholders
A person or organisation who is actively involved in the project
Those whose active interest in your project can exert positive or
negative work on the project or the outputs from the project
Those who exert influence over
the project or its deliverables.
Stakeholders who could exert influence include:
Customers
End users
Sponsors
Program managers
Portfolio managers
The project team
Other functional managers
Operation managers
Sellers
Legal department.
Activity 1A

11
Define project
1.3. Seek clarification from delegating authority of any issues
related to project and project parameters
12
Delegating authority may include:
Customer or client
Funding body
Manager or management representative
Project sponsor.
Project parameters may include:
Risks associated with project, including WHS
Procurement requirements associated with project
Project finances or budget
Integration of project within organisation
Legislative and quality standards
Physical, human and technical resources available or required
for project
Reporting requirements
Scope of project
Time lines.

Activity 1B
15
Define project
1.4. Identify limits of own responsibility and reporting
requirements
16
The project manager is responsible for:
Organising the project into one or more sub-projects
Managing the day-to-day aspects of the project
Resolving planning and implementation issues
Monitoring progress and budgets
Organise reporting requirements.
Monitoring budgets
It could be argued that the establishment of the human and
financial resources necessary to deliver the project is the most
crucial element for the success of the project.
This process must be established during the project definition
and scoping stage.

Notwithstanding this, it is critical to allow for contingencies
during the life of the project in areas such as timeframes,
budget and resourcing.
For larger or more complex projects
Advanced project management knowledge and experience are
essential
Detailed knowledge of the business area in which the project is
being run is needed
Project managers who don’t have this knowledge should seek to
obtain this
Effectively communicate with
project team members and clients
Address business issues to
ensure concerns are met
Avoiding Scope Creep
‘Scope creep' is a commonly used term to
describe the risk of stakeholders attempting to add
extras, such as activities / tasks or outcomes, during the
course of the project.
Define project
1.5. Clarify relationship of project to other projects and to the
organisation's objectives

21
How does your project relate to your organisation’s objectives?
What is the context in which your project will function within
the organisations objectives and is this project unique?
How will the project change or improve the organisations
objectives?
What are the strategic objectives this project intends to satisfy?
Who has the ultimate responsibility in the solution or outcome?
How do the other stakeholders meet these goals?
Are they also designed to meet the organisations objectives as
outlines above?
Activity 1C
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Define project
1.6. Determine and access available resources to undertake
project

25
Resources include:
Obtaining goods and services required to deliver the project
Appointing or recruiting staff
Appointing consultants.
Resource determination will include:
Cost
Management of the project
Lead time
Date resources are required
Specifications
Supplier or provider contact details
Procedure (e.g. by a formal tender)
Requirement for expert advice
Responsibility.
Activity 1D
28
Develop project plan
2.1 Develop project plan in line with the project parameters

29
Project plan may include:
Details of how the project will be managed
Roles and responsibilities
Time lines
Work breakdown structure.
2.2. Identify and access appropriate project management tools
31
Project management tools may include:
Cost schedule control system
Critical path method
Gantt and bar charts
Life cycle cost analysis
Logistics support analysis
Pert charts
Project management software
Risk and issues logs
Spread sheets
Technical resources required for the project, for example WHS
management-system tools.

Charts
Critical path method
Gantt and bar charts
Pert charts.
Life cycle cost analysis
Life cycle costing is a method of project evaluation, for which
all costs arising from owning, operating, maintaining and
disposing of a project are considered
Life cycle costing evaluates all relevant costs over a period of
time of a project
It takes into account the costs including capital, purchase,
energy cost, operating cost, maintenance cost, replacement cost,
financing cost and any resale for the disposal over a life time of
a project.
Considerations:
Licensing and costs
Migration
Collaborative
Platform independence
Usability
Maintainability.

Key changes
The primary duty holder will be a Person Conducting a Business
or Undertaking (PCBU)
The primary duty of care will be qualified by reasonable
practicability
Introduction of officer’s due diligence requirements
Broad nature of the definition of the term “worker”
Introduction of health and safety representatives
Requirement for cooperation, consultation and coordination
Right of entry for unions to enter workplaces
for WHS purposes
Activity 2A
37
2.3 Formulate risk management plan for project, including Work
Health and Safety (WHS)
38
Risk management

There are always risks associated with a project.
The purpose of risk management is to ensure levels of risk and
uncertainty are properly managed so that the project is
successfully completed
It enables those involved to identify possible risks, the manner
in which they can be contained and the likely cost of mitigation
strategies.
A filtering process should be used to determine which identified
risks:
Are best left, as the likelihood and seriousness would be so low
that mitigation strategies are not required
Need monitoring, but no proactive mitigation strategies are
required at this stage;
Are avoided by changing the scope of the project
Are moved to a third party by outsourcing
Need planned mitigation strategies as
detailed in the risk register.
Examples of possible risks include:
Budget blow-outs
Information security breaches
Loss of key project team members
Major milestone timeframes not being met.

The risk management plan
The process for identification, analysis evaluation and treatment
of risks both initially and throughout the life of the project.
How often the risk register will be reviewed, the process for
review and who will be involved.
How risk status will be reported and to whom.
Who will be responsible for which
aspects of risk management?
Why should a project director / manager be conscious of WHS?
Strategic and resource responsibilities
Operational responsibilities
Management tools use and reporting responsibilities
Behavioural Programme establishment.
Activity 2B
44
2.4. Develop and approve project budget

45
What is the goal of a project budget?
One of the key elements of any project proposal is the project
budget
The project manager will use a budget to determine whether the
project is on track
Project personnel will use it as a guideline to monitor certain
project milestones
The client will use it to determine the success of the effort.
Contingencies
Project’s unknowns or risks contingency
Cost estimating contingency
Design contingency
Bid contingency
Construction contingency
Cost escalation contingencies.
Link project budgets to key outcomes
Establish a set of reference baselines
Then, as work progresses, you monitor the work
Then analyse the findings
Forecast the end results and compare those with the reference
baselines
If the end results are not satisfactory then you make adjustments
as necessary to the
work in progress, and repeat the
cycle at suitable intervals.

Budget approval
Develop your detailed budget estimate and get it approved in
the organising and preparing stage after you specify your
project activities.
Check with your organisation to find out who must approve
project budgets. At a minimum, the budget is typically approved
by the project manager, the head of finance, and possibly the
project manager’s supervisor.
Activity 2C
50
2.5. Consult team members and take their views into account in
planning the project
51
Gathering views
Hold in-depth brainstorming sessions on a specific project issue

Make consultation with staff members part of the business
culture
Introduce weekly or monthly or as needed strategy meetings
with staff
Ask for ideas and feedback
Conduct round-table discussions
Check for these:
Is your team small or large?
Can you convene easily and frequently?
Can you communicate with all members easily and frequently?
Are your discussions open and interactive for all members?
Does each member understand the issues you are addressing?
Activity 2D
54
2.6. Finalise project plan and gain any necessary approvals to
commence project according to documented plan

55
Check your project finish date to determine whether it is
acceptable
As a project manager, you may need to reduce a project's total
duration at some point
The idea being to get the job done in an acceptable time frame
To adjust the total project duration you will need to identify
which project tasks affect the project end date and adjust your
critical path schedule.
Print a Project Summary Report
This will assist those who may need a summarised breakdown of
the project to issue appropriate approvals.
Produce a baseline plan for your project.
Generate and print a cost table or a cost report to distribute to
those who are reviewing the project for approvals.
Activity 2E
58
Administer and monitor project
3.1 Take action to ensure project team members are clear about

their responsibilities and the project requirements
3.2 Provide support for project team members, especially with
regard to specific needs, to ensure that the quality of the
expected outcomes of the project and documented time lines are
met
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Support for project team members may include:
Additional physical, human and technical resources (within
allocated budget) if and as required
Supervision, mentoring and coaching
Encouragement
Feedback
Learning and development
Regular project team meetings.
Assisting to identify team skills and skills gaps
Basic / fundamental skills: such as literacy, numeracy, using
technology
People-related skills: such as communication, interpersonal,
teamwork
Conceptual / thinking skills: such as collecting and organising
information

Ineffective patterns that can frequently develop in the team
Conflict between the team and others outside the team,
including management
Conflicts
Missed deadlines due to lack of communication
Individual interpersonal conflicts
"Them" and "us" attitudes between portions of the team
Department or divisions in the workplace
Activity 3A
63
3.3. Establish and maintain required record keeping systems
throughout the project
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Required record keeping may include systems for:
Correspondence
Financial data including costs, expenditure, income generated,
purchases
Project outcomes
Quality data including any test results
Recording of time spent on project and progress in completing

project
Samples, prototypes and models.
Project progress report
To generate a project status report for a project, the
project manager needs to produce or format a report
or use Project or other software showing:
Milestones in the last period, and if they are completed
Milestones due next period
Action items not completed by their due date
Action items due to be completed in the next period
Any commentary prepared by the project manager.
Basic project records would include:
Personnel involved in planning and executing the project
Minutes of meetings and discussions held
Project scope, objectives and relevant statement of the goals of
the project and the likely contingency plans
Work record plan showing dates and times
All communications via emails and letters relating to the
project
Financial budget.
Activity 3B

68
3.4 Implement and monitor plans for managing project finances,
resources and quality
69
Resources may include:
Human
Physical
Financial
Technical.
Project financial management is a process which requires:
Planning
Budgeting
Accounting
Financial reporting
Internal control
Auditing
Procurement of goods and services
Disbursement of payments

Achieving the project’s financial objectives.
Activity 3C
72
3.5. Complete and forward project reports as required to
stakeholders
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As the project manager, you will generally spend much of your
time communicating
You deliver information upward and downward, internally and
externally as the various sessions so far have addressed.
Daily, you make and receive numerous reports, e-mail
messages, phone calls, and other messages to keep your team
and your customers up to date about the status of your project.
Basic project records would include:
Team personnel involved in planning and executing

Minutes of meetings and discussions held for planning
Project scope, objectives and relevant statement of the goals
Work record plan showing dates, times and work done
Critical path schedule
All communications via emails and letters
Financial budget
Lists of specifications.
Identify:
The frequency of your reports
The details stakeholders actually need as opposed to general and
non-essential reporting
The methods you will use to deliver reports
Set up a central network for stakeholders to access online or
through an intranet
Create secure storage of all project reporting information.
Reporting formats
Create templates for presentation, status, meeting minutes, and
other important documents
Make sure these follow company-wide standards for all
stakeholders.
Provide these to stakeholders as required:
A shared project calendar
Collaboration software
Access to intranet web sites

Access to project databases.
Remember
Set up standard procedures
Prepare for the unexpected
Be flexible
You will also need to prepare for unplanned communications.
Language and global advice
Outsourcing and new technologies have made global project
teams more common place
This can create language barriers and cultural differences
between key stakeholders and teams
Be careful when reporting to stakeholders in different countries
to avoid misunderstandings
Avoid ‘localised’ slang or references to a specific cultures in
your messages
Avoid humour as it can be easily misunderstood across
certain cultures
Keep the quality of your reporting high
Maintain a consistent level of high quality reporting to
sponsors, steering committee members, and stakeholders
Every project team has people with different levels of written
and oral communication skills
As project manager, you need to review and approve all reports,
presentations, and other formal communications before they are

delivered to stakeholders.
3.6. Undertake risk management as required to ensure project
outcomes are met
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Risk management may include:
Changing roles and responsibilities within project team
Negotiating an extension of deadline, or redefining completion
or quantities or quality of outcomes
Outsourcing some aspects of the project
Reducing costs
Researching and applying more efficient methods
Seeking further resources to meet deadline
Sharing of ideas to gain improvements to work undertaken
within the project.
Likelihood and consequence
Risk management has two important elements: likelihood and
consequence.
In a mathematical sense, risk is most commonly represented as
the product of these two.
Risk = likelihood x consequence

Undertake risk management as required
Establish the context of the risk potential in your project
Identify those risks
Evaluate those risks
Analyse those risks
Treat those risks to ensure project outcomes are met.
Establishing the context of risk in a project example could
likely involves three parts:
External / strategic context
Internal / organisational context
Risk management context
Risk management context
The risk management context involves defining which risk
categories apply to the risk assessment.
There will not only be safety risks but other forms of
operational risk and organisation risk as we have discussed.
It is possible to conduct a higher level strategic risk assessment
as opposed to just focussing on a project or part of a project, so
the context can be different.
These risk categories need to documented
and then customised so they are
meaningful to your particular project.

Consideration should also be given as to how risk will be
analysed
What constitutes a high, medium, low and negligible risk?
What will you do when you identify a high risk?
Who will it be reported to?
What level of risk is unacceptable?
Identifying risks
This is the most important phase of risk management.
If you have not identified the risk, then you cannot assess it and
you most certainly cannot effectively control it
This is the phase where you may draw on historical data and the
experience of ‘project’ experts in your organisation, (or from
outside), to identify risks, causes, effects and controls.
Document any assumptions that relate to each risk
For example:
Is the analysis focussed on the most foreseeable risks and/or
worst case scenarios?
The likelihood of the most foreseeable risks will be higher than
the worst case scenario.
Conversely, the worst case scenario should, in theory, have a
very low likelihood and a much higher consequence. They will
therefore sit in different locations on the risk matrix and may
result in being of different priorities.

Treating risks
Depending upon the level of risk and evaluation, one of four
treatment strategies may suit your project assessment.
Terminate – do not undertake the activity or part that has been
risk assessed
Transfer – pass risk on to others through contracts, insurance
outsourcing etc
Treat–reduce the likelihood or consequence
Tolerate – monitor the risk for changes but implement no
additional control measures
Activity 3D
93
3.7. Achieve project deliverables

94
Deliverable
A deliverable is a tangible and measurable result, outcome, or
item that must be produced to complete a project or part of a
project.
Typically, the project team and project stakeholders agree on
project deliverables before the project begins.
Management of deliverables, like most
project requirements, are best recorded and documented
for reporting purposes in your
software program such as project manager.
Know what your deliverables are!
All projects produce deliverables
You shouldn’t have any objectives that are not aligned to one or
more deliverables
Assign each deliverable
Group similar deliverables
Group deliverables spanning a time period
Activity 3E

97
Finalise project
4.1 Complete financial record keeping associated with project
and check for accuracy
98
Finalise a project
A project plan is generally deemed finalised when it is formally
accepted and approved by the project sponsor and other
designated stakeholders.
Formal approval acknowledges that all the deliverables
produced during the various stages are complete, reviewed and
accepted.
Signatures on the project plan document indicate final approval.
This sign-off marks the plan as the go-forward agreement and
can be viewed as a project management milestone.
Finalise project
4.2 Ensure transition of staff involved in project to new roles or
reassignment to previous roles

101
Roles
Each new project starts with a default set of roles.
They may be the most basic roles that you can assign to staff
but each one has a specific purpose.
The basic roles should be created with each new project or, as
suggested, reassigned.
Choose and select
First:
Choose the project which you will assign roles for
Second:
Select the staff member(s) to whom you will assign the role(s)
Finalise project
4.3 Complete project documentation and obtain necessary sign-
offs for concluding project
104
Necessary sign-offs may be required by:

Clients
Funding body
Management
Project sponsor.
Activity 4A
106
Review project
5.1 Review project outcomes and processes
107
Why conduct project reviews and evaluations?
Monitoring versus evaluation
Post-project evaluation
Pre-project evaluation
Ongoing project evaluation
Project completion evaluation
Lessons learned.

Simple steps to take for a post project review
Create an agenda
Select participants
Prepare for a workshop environment (participation is the key)
Conduct the workshop/review
Present the results
Adopt recommendations
Review project
5.2 Involve team members
110
Who?
At least one person should be selected from each stakeholder
area or the person themselves need to be included.
The final selection if some people are unavailable should
always include those who have a strong knowledge of the
processes that were undertaken in the project.
The best candidates are team leaders.
Review project
5.1 Review project outcomes and processes
5.2 Involve team members

5.3 Document lessons learnt
112
Practical aspects
A workshop should be conducted as a working meeting
Ideally, the agenda should be covered in a half day time frame.
If more time is needed because of a complex project, schedule
another meeting a few days later.
Each stakeholder should present responses to the topics that
were previously distributed.
Set a time limit for each person
Although the workshop/meeting must encourage full
participation from all attendees, a time limit is
necessary or otherwise those with the personality to
stand and talk endlessly will overrun your agenda.
Document lessons learnt
Complete a post-project review report
The real benefit of the documented report will be the lessons
learned and circulated within the organisation
As part of the next project evaluation and scoping all reports
generated at this review meeting should be mandatory reading

for any new projects.
A project review concept has great value to
an organisation and ultimately to the
acceptance of the organisations ability by
its clients.
Activity 5A
116
Skills and Knowledge Activity
117
Major Activity
This activity should take anywhere between an 1-2 hours to
complete and can be found at the end of your workbook.
Your instructor will let you know whether they wish for you to
complete it in session time or your own time.
Summary and Feedback
Did we meet our objectives?

How did you find this session?
Any questions?
119
Congratulations
You have now finished the unit…
‘Undertake project work’
Scanned with CamScanner
Assessment 1 – Appendix A: Australian Hardware Simulated
Business
Business Plan Excerpt
The Business
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.
The Market
Target market: The market has been divided into three target
markets or segments: home improvers; DYIs; tradespeople.
Marketing strategy: Australian 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, Australian Hardware will
lead the hardware and home-improvement market in Australia.
Strategic directions: The Australian 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 Australian Hardware’s reputation as a socially and
environmentally responsible company.
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
Skills/experience necessary
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
Leadership skills.
Garden Products Manager
3
5%/year
Leadership skills.
Hardware and Home Products Manager

3
5%/year
Leadership skills.
General Store Operations Manager
3
5%/year
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.
Recruitment options
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.
Training programs
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.
Skill retention strategies
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.
Assessment 1 – Appendix A: Australian Hardware Simulated
Business
Organisational Chart
(
Sales Consultant
Sales Consultant
Sales Consultant
General Sales Assistants
Checkout Staff
Administration Staff
Sales Consultant
Hardware and Home Products Manager
Garden Products Manager
Plumbing and Electrical Manager
Timber Manager
General Operations Manager
Store Managers x138
COO
Human Resources
Marketing
CFO
Board of Directors
CEO
)

Operational Plan
Business locations
Australian 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 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.
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 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.
Suppliers
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 required.
Australian 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:
financial viability
control and continual improvement of processes to restrain costs
a well-documented and traceable quality system
respect for the environment
responsible control of remuneration for own employees and any
sub-contractor employees.
Products and services
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
Housewares
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
Garden
Seasonal plants and landscaping materials. For consumers and
trades. Discount options for tradespeople.
$25
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.
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
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.
Trading hours
Australian Hardware trades 7 days a week, 6 am to 8 pm.
Australian Hardware is closed on public holidays.
Communication channels
Customers are encouraged to contact us through email or
Facebook. A telephone number is provided on our website.
Payment types accepted
Australian Hardware accepts cash and all major credit cards and
debit cards. EFTPOS is available in all warehouses.

Credit policy
Australian Hardware has 30 day credit terms for approved
tradespeople.
Memberships and affiliations
Australian 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).
Policies and Procedures
Anti-discrimination Policy
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 16 characteristics:
sex
relationship status
pregnancy
parental status
breastfeeding
age
race
impairment
religious belief or religious activity
political belief or activity
trade union activity
lawful sexual activity
gender identity
sexuality
family responsibilities
association with, or relation to, a person identified on the basis
of the above.

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)
Disability Discrimination Act 1992 (Cwlth)
Racial Discrimination Act 1975 (Cwlth)
Sex Discrimination Act 1984 (Cwlth).
Updated/
authorised
09/2013 – Mary Chu (COO)
Reasonable adjustments
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:
applies for a job, is offered employment, or is an employee
requires the adjustments in order to participate in the
recruitment process or perform the genuine and reasonable
requirements of the job.
Examples of reasonable adjustments can include:
reviewing and, if necessary, adjusting the performance
requirements of the job
arranging flexibility in work hours
providing telephone typewriter (TTY) phone access for
employees with hearing or speech impairments
purchasing screen reading software for employees with a vision
impairment
approving more regular breaks for people with chronic pain or
fatigue

buying desks with adjustable heights for people using a
wheelchair.
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:
the adjustments needed are not reasonable
the person with the disability could not perform the genuine and
reasonable requirements of the job even if the adjustments were
made.
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 business policy and should stop (only if you feel
comfortable enough to approach them directly, otherwise speak
to your manager or supervisor). 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.
Procedure: To receive a complaint
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.
1. Listen to the complaint seriously and treat the complaint

confidentially. Allow the complainant to bring another person to
the interview if they choose to.
2. Ask the complainant for the full story, including what
happened, step by step.
3. Take notes, using the complainant’s own words.
4. Ask the complainant to check your notes to ensure your
record of the conversation is accurate.
5. Explain and agree on the next action with the complainant.
6. If investigation is not requested (and the manager is satisfied
that the conduct complained is not in breach of Australian
Hardware EEO policies) then the manager should:
· act promptly
· maintain confidentiality
· pass any notes on to the other managing staff.
If an investigation is requested or is appropriate, follow the
next procedure.
Procedure: To investigate a complaint
When a manager investigates a complaint, they should follow
this procedure.
1. Do not assume guilt or innocence.
2. Advise the alleged harasser about the potential outcomes of
the investigation if the allegations are substantiated.
3. Interview all directly concerned, separately.
4. Interview witnesses, separately.
5. Keep records of interviews and the investigation.
6. Interview the alleged harasser, separately and confidentially
and let the alleged harasser know exactly what they are being
accused of. Give them a chance to respond to the accusation.
Make it clear they do not have to answer any questions;
however, the manager will still make a decision regardless.
7. Listen carefully and record details.
8. Ensure confidentiality; minimise disclosure.
9. Decide on appropriate action based on investigation and
evidence collected.
10. Check to ensure that the action meets the needs of the
complainant and Australian Hardware.

11. If resolution is not immediately possible, refer the
complainant to more senior management. If the resolution needs
a more senior manager’s authority, refer the complainant to this
manager.
12. Discuss any outcomes affecting the complainant with them
to make sure you meet their needs where appropriate.
Possible outcomes
Following the investigation, if management finds the complaint
is justified, then management will discuss with appropriate
outcomes with the complainant 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).
Remuneration and Performance Appraisal Policy
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
human resources staff and relevant managers of hiring
departments.
Fair Work Act 2009 (Cwlth)
Updated/
authorised
Definitions
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.
Underlying modern award
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.
Determining base salary levels
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:
salary levels will be paid no less than the rate of pay set out in
the relevant underlying award
salary levels are to be benchmarked on an annual basis (as part

of the annual budgeting process) against the external market
using salary surveys to establish competitiveness with similar
positions in the external market
if the job changes as determined by a job evaluation, the base
level remuneration should be altered to reflect the change in the
employee’s role and responsibilities
decisions on broad salary increases (those that apply to all
employees), such as CPI or cost-of-living based increases will
be made on an annual basis in consultation with partners
staff will have the opportunity to raise remuneration issues at
six-monthly performance review meetings with their manager.
Staff performance plans
Staff will be provided with individual performance
plans/workplans 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, workplans are agreed upon after the July/August
performance review has been conducted.
The performance plans/workplans 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 workplans will include
specific project and personal development goals.
For sales staff, the performance plans will detail the sales
targets for the period.
Performance appraisals
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.
Performance Management Policy
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
managers of employees at Australian Hardware. Further
information on roles and responsibilities is discussed within this
policy.

This policy is guided by the procedures set by industrial law,
awards and employment agreements that apply to Australian
Hardware. Among others they include:
Fair Work Act 2009 (Cwlth).
Updated/
authorised
Roles and responsibilities
Managers will:
carry out biannual formal performance review discussions
monitor individual performance throughout the year, recording
key events, observations of importance which relate to the
performance, both positive and negative
refer to the performance management guidelines when carrying
out tasks related to performance management
use the performance management documentation to record
formal and informal performance reviews
provide employees with the opportunity to participate and
contribute to their professional and personal development
provide employees with access to training and development, as
reflected in the individual’s development plan
provide employees with coaching throughout the review period
allow employees to communicate their career development goals
ensure employees complete their responsibilities in accordance
with the performance management policy and process.
Employees will:
participate in the formal review discussions openly and honestly
complete their personal assessment and provide it to the
manager as requested
contribute their thoughts on both positive and negative
performance as assessed by their manager
participate in identified training and development plans as
agreed with their manager
provide information and documentation as requested by their

manager relating to their performance and activities throughout
the assessment period.
To conduct performance review
The employee’s performance will be monitored and evaluated
regularly throughout the year. The performance review
encompasses three elements:
an annual formal review discussion
a six month follow-up discussion
continuous monitoring of the employee’s performance.
1. Annual discussion
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:
reflect on performance during the year
clarify key responsibilities of the role and review the job
description
discuss successes as well as areas for improvement
set agreed targets and performance standards for the next six
months
agree on key areas of development for effective performance in
the role.
2. Documentation
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.
3. Timing
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.
4. Six month follow-up discussion
The follow-up review provides an opportunity for managers and
employees to re-visit targets, standards and development plans
to:
establish that progress is on track
identify changes impacting on the achievement of targets and
standards
discuss development plan progress or establish development
plan
modify standards and targets, if required.
Flow chart of the performance review process
Performance management plan template
Name and position:
Manager:
Review period:
Reference from operational plan
Key result area
Indicator of success/ performance
By when
Status report
Achievements:

Areas of Opportunity:
Manager’s comments:
Signature:
Date:
Staff member’s comments:
Signature:
Date:
Disciplinary Policy
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
policy.
Updated/
authorised
Procedure
1. Australian Hardware will advise the employee of any
shortfall in their performance. The manager will advise the
employee in clear terms what they see as the performance
problem or the unacceptable conduct. To highlight the
deficiency the manager should use specific examples, and refer
to the correct policy or procedure. The employee should be
given an opportunity to respond.
2. Once the employee has responded, the manager will consider
their response and decide if performance improvement action
should be taken. Australian Hardware will provide support such
as training where appropriate.
3. If the employee is given a verbal warning, the manager
should make a note of it, date it and sign it.
4. The manager will allow the employee to respond before
making a decision and consider the employee’s responses. The
manager should determine whether the issue requires a written
warning or a performance management meeting. The employee

may have a support person present at such meetings.
5. If a written warning is to follow, the manager is to:
· document it and give the employee a copy
· give the employee the opportunity (and their support person
the opportunity) to sign the warning
· keep a copy on file.
6. The warning (written or discussed in a meeting) must clearly
define:
· the deficiency
· a clear explanation of the expected standard
· by when the employee needs to achieve the standard
· how the business will help the employee achieve the
improvement required
· consequences of failing to improve.
7. The manager concerned will keep a record of all meetings,
training and/or coaching given and a summary of discussions,
and put a copy on the employee’s personnel file. This should
include date, location and time of discussion.
8. They will continue to support the employee and note the
support they give, for example, training or counselling.
9. If the employee’s performance or conduct doesn’t improve,
the manager will give the employee a final written warning and
follow steps 4–10 above. This document needs to warn the
employee, in clear terms, that Australian Hardware will
terminate their employment if there is not enough (sustained)
improvement in their performance.
Note: some circumstances justify going straight to a second or
final warning.
Serious misconduct
Summary (instant) dismissal for gross or very serious
misconduct may be necessary, depending on the circumstances.
Management should seek advice before taking this step.
Allegation of serious misconduct – procedure
1. The manager is to investigate the alleged offence thoroughly,
including talking to witnesses, if any.
2. The manager should ask the employee for their response to

the allegation (taking notes of this discussion) and allow them
to have representation. The manager should also have a witness
present. The manager shall give genuine consideration to the
employee’s response and circumstances.
3. If still appropriate, following a thorough investigation, the
manager can terminate/dismiss the employee.
4. The manager should keep a file of all evidence collected and
action taken in these circumstances.
5. Australian Hardware will send the employee a letter of
termination noting brief details.
Updated/
authorised
09/2013 – Lynn Lee (Finance Manager Wollongong)
Grievance Policy
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.
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.
Recordkeeping Policy
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
policy.
international standard for recordkeeping, AS ISO 15489: 2002
Records Management.
Updated/
authorised
Recordkeeping procedures
Employee records management
Employee records include, for example:
payroll records
tax records
recruitment records
all human resources records, for example:
· personal scorecard information
· requests for HR services or information
· performance management records such as performance
appraisals and performance management planning
all other records which may record identifying details of an
employee.
Although, not a legislative requirement, Australian Hardware

employees, officers and agents are expected to take all
reasonable steps to abide by the National 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.
1. Collection
Australian Hardware employees, officers or agents must ensure
that individuals are aware their personal information is being
collected, why, who it might be passed on to and that they can
ask Australian Hardware what personal information it holds
about them.
1. Use
Personal information may not be collected unless it is necessary
for Australian Hardware business activities and may only be
used for legitimate purposes. Legitimate uses include, for
example, using information for the purpose of improving
operations, strategic planning, or recruitment. Non-legitimate
uses would involve direct marketing to friends and families on
the basis of employee information.
1. Data quality
Australian Hardware employees, officers or agents must take
reasonable steps to ensure personal information they collect is
accurate, complete and up-to-date.
1. Data security
Australian Hardware employees, officers or agents must take
reasonable steps to protect the personal information it holds
from misuse and loss and from unauthorised access,
modification or disclosure.
1. Openness
Australian Hardware employees, officers or agents must have a
policy document outlining its information handling practices
and make this available to anyone who asks for it (this
document).
1. Access and correction
Generally, Australian Hardware employees, officers or agents

must give an individual access to personal information it holds
about the individual on request. Note that some exceptions may
apply, such as in cases of misconduct, fraud, criminal
behaviour, or dismissal procedures.
1. Identifiers
Generally, Australian Hardware employees, officers or agents
must not adopt, use or disclose an identifier that has been
assigned by a Commonwealth government agency unless for a
legitimate business or operational reason, such as the processing
of payroll, where tax file numbers may need to be shared, for
example.
1. Anonymity
Australian Hardware employees, officers or agents must give
people the option to interact anonymously whenever it is
practicable to do so. Note this principle would not apply to
many internal records; nevertheless, where this principle can be
applied without adverse effect to legitimate business interests,
such as in employee satisfaction surveys undertaken by HR, it
should be.
1. Transborder data flows
Australian Hardware employees, officers or agents can only
transfer personal information to a recipient in a foreign country
in circumstances where the information will have appropriate
protection. This principle applies to foreign subsidiaries and
strategic partners of Australian Hardware. ‘Appropriate
protections’ include but are not limited to stipulations in this
policy.
1. Sensitive information
Sensitive information (such as about someone’s health, political
opinions or sexual preference), may only be collected with the
consent of the individual.
File management
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 (local computer hard
drive) on your computer 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 offsite, 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.
Filenames:
Filename should include the author’s last name, short
description or abbreviated title of report or document, and date
of completion.
Back-ups:
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.
Procurement and Preferred Suppliers Policy
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
employees and management of Australian Hardware’s stores
with responsibility for purchasing resources.

State anti-discrimination legislation
State work health and safety legislation
Australian Securities and Investments Commission Act 2001
(Cwlth)
Corporations Act 2001 (Cwlth)
Income Tax Assessment Act 1997 (Cwlth)
Updated/
authorised
09/2013 – Lynn Lee (Finance Manager Wollongong)
Principles governing procurement process
1. Probity and ethical behaviour
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.
2. Sustainability
Follow the sustainability policy and principles outlined in the
sustainability policy when procuring supplies.
3. Value for money
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 whilst 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.
4. Non-discrimination
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.
5. Risk management
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.
6. Responsible financial management
The principle of responsible financial management must be
applied to all procurement activities. Factors that must be
considered include:
the availability of funds within an existing approved budget
staff approving the expenditure of funds strictly within their
delegations
measures to contain costs of the procurement without
compromising any procurement principles.
7. Procurement planning
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 which:
encourages competition
ensures that rules do not operate to limit competition by
unnecessarily discriminating against particular suppliers
recognises any industry regulation and licensing requirements
secures and maintains contractual and related documentation for
the procurement which best protects the organisation
complies with the organisation’s delegations policy.
8. Buy Australian made/support for Australian industry

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 judgment between locally made and overseas
sourced goods, employees are to take into account:
whole of life costs associated with the good or service
that the initial purchase price may not be a reliable indicator of
value
the quality of locally made products
the record of performance and delivery of local suppliers
the flexibility, convenience and capacity of local suppliers to
take on larger orders and meet fluctuations in order numbers
the scope for improvements to the goods and ‘add-ons’ from
local industry.
9. Pre-registered list of suppliers and contractors
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 interest 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.
10. Avoid conflict of interest
Employees and directors are not permitted to personally gain
from any aspect of a 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.
11. Report collusive tendering
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.
12. Competitive process
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.
13. Direct invitation (selective or restricted tendering)
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.
14. Evaluation and contract award
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.
15. Results of tendering process
All tender respondents should be informed in writing of the
result of a tendering process immediately after a contract has
been awarded.
Summary of procurement policy delegations
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.
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.

Detailed services contract required for contracts over $20,000.
Expenditure payment approval form
For completion by person verifying payment
Date
Invoice date
Payee name:
Job/project number:
Project title:
Description of payment:
Payment amount: $
ex GST inc GST
Signature of person verifying payment
Signature of delegated manager

For Completion by Finance:
Account number
Account name
Amount
Total Payable:
$
Approved:
Date:
Store GM:
Finance manager:
Product manager:

Appendix 1 – Performance management planning template
Performance objectives
Performance management objectives
Action plan
Action
Resources
Strategy/tactics
Timelines

Page | 105
BSBPMG522
Undertake project work
Learner Guide
Table of Contents
Table of Contents2
Unit of Competency5
Performance Criteria6
7
Foundation Skills8
Assessment Requirements9
Housekeeping Items11
Objectives11
1. Define project12
1.1 - Access project scope and other relevant documentation13
Project scope13

1.2 - Define project stakeholders16
Stakeholders16
Activity 1A18
1.3 - Seek clarification from delegating authority of issues
related to project and project parameters19
Delegating authority19
Activity 1B21
1.4 - Identify limits of own responsibility and reporting
requirements22
Responsibility and reporting22
1.5 - Clarify relationship of project to other projects and to the
organisation's objectives24
Project relationships24
Activity 1C25
1.6 - Determine and access available resources to undertake
project26
Resources26
Human resources27
Activity 1D28
2. Develop project plan29
2.1 - Develop project plan in line with the project parameters30
Project plans30
Timelines31
Work breakdown structure31
2.2 - Identify and access appropriate project management
tools33
Project management skills33
Activity 2A39
2.3 - Formulate risk management plan for project, including
Work Health and Safety (WHS)40
Risk Management40
Activity 2B43
2.4 - Develop and approve project budget44
Project budgets44
Activity 2C47
2.5 - Consult team members and take their views into account in

planning the project48
Consulting with teams48
Activity 2D50
2.6 - Finalise project plan and gain necessary approvals to
commence project according to documented plan51
Finalising plans51
Activity 2E53
3. Administer and monitor project54
3.1 - Take action to ensure project team members are clear
about their responsibilities and the project requirements55
3.2 - Provide support for project team members, especially with
met55
Supporting team members55
Activity 3A60
3.3 - Establish and maintain required record keeping systems
throughout the project61
Record keeping61
Project Status Report63
Activity 3B68
3.4 - Implement and monitor plans for managing project
finances, resources and quality69
Monitoring the project69
Activity 3C70
3.5 - Complete and forward project reports as required to
stakeholders71
Project reports71
3.6 - Undertake risk management as required to ensure project
outcomes are met75
Risk management75
Treating risks82
Activity 3D83
3.7 - Achieve project deliverables84
Project deliverables84
Activity 3E88

4. Finalise project89
4.1 - Complete financial record keeping associated with project
and check for accuracy90
Complete records90
Project closing90
4.2 - Ensure transition of staff involved in project to new roles
or reassignment to previous roles93
Staff assignments93
4.3 - Complete project documentation and obtain necessary
sign-offs for concluding project94
Sign-offs94
Activity 4A96
5. Review project97
5.1 - Review project outcomes and processes against the project
scope and plan98
Reviewing the project98
5.2 - Involve team members in the project review99
5.3 - Document lessons learnt from the project and report within
the organisation101
Lessons learned101
Activity 5A102
Skills and Knowledge Activity103
Major Activity – An opportunity to revise the unit104
References105
Unit of Competency
Application
This unit describes the skills and knowledge required to
undertake a straightforward project or a section of a larger
project. It covers developing a project plan, administering and
monitoring the project, finalising the project and reviewing the
project to identify lessons learned for application to future
projects.

This unit applies to individuals who play a significant role in
ensuring a project meets timelines, quality standards, budgetary
limits and other requirements set for the project.
The unit does not apply to specialist project managers. For
specialist project managers, the other units of competency in the
project management field (BSBPMG) will be applicable.
No licensing, legislative or certification requirements apply to
this unit at the time of publication.
Unit Sector
Management and Leadership – Project Management
Performance Criteria
Element
Elements describe the essential outcomes.
Performance criteria describe the performance needed to
demonstrate achievement of the element.
1. Define project
1.1 Access project scope and other relevant documentation
1.2 Define project stakeholders
1.3 Seek clarification from delegating authority of issues related
to project and project parameters
1.4 Identify limits of own responsibility and reporting
requirements
1.5 Clarify relationship of project to other projects and to the
1.6 Determine and access available resources to undertake
project
2. Develop project plan

2.1 Develop project plan in line with the project parameters
2.2 Identify and access appropriate project management tools
2.3 Formulate risk management plan for project, including Work
Health and Safety (WHS)
2.4 Develop and approve project budget
2.5 Consult team members and take their views into account in
planning the project according to documented plan
2.6 Finalise project plan and gain necessary approvals to
commence project
3. Administer and monitor project
3.1 Take action to ensure project team members are clear about
their responsibilities and the project requirements
3.2 Provide support for project team members, especially with
met
3.3 Establish and maintain required recordkeeping systems
throughout the project
3.4 Implement and monitor plans for managing project finances,
resources and quality
3.5 Complete and forward project reports as required to
stakeholders
3.6 Undertake risk management as required to ensure project
outcomes are met
3.7 Achieve project deliverables
4. Finalise project
4.1 Complete financial recordkeeping associated with project
and check for accuracy
4.2 Ensure transition of staff involved in project to new roles or
reassignment to previous roles
4.3 Complete project documentation and obtain necessary sign-
offs for concluding project
5. Review project

5.1 Review project outcomes and processes against the project
scope and plan
5.2 Involve team members in the project review
5.3 Document lessons learned from the project and report within
the organisation
Foundation Skills
This section describes language, literacy, numeracy and
employment skills incorporated in the performance criteria that
are required for competent performance.
Skill
Description
Reading
1.1, 3.4, 3.5, 4.1, 4.3, 5.1
· Organises, evaluates and critiques ideas and information from
a range of complex texts
Writing
2.1, 2.3, 2.6, 3.3, 3.5, 4.1, 4.3, 5.3
· Develops plans, reports and recommendations using
vocabulary, structure and conventions appropriate to text
· Establishes and maintains records according to organisational
requirements
Numeracy
1.6, 2.4, 3.4, 4.1
· Uses formal and some informal, oral and written mathematical
language and representation to prepare and communicate
budgetary and financial information
Oral communication
2.5, 5.2
· Participates in verbal discussions using clear language and
appropriate features to present or seek information

· Using listening and questioning skills to seek information and
confirm understanding
Navigate the world of work
1.3, 1.4, 2.3, 3.1, 4.3
· Recognises and responds to organisational and
legislative/regulatory requirements
Interact with others
2.5, 3.1, 3.2, 4.2, 5.2
· Selects and uses appropriate communication protocols and
practices to ensure shared understanding of project roles and
expectations
· Uses collaborative techniques to engage stakeholders in
consultations and negotiations
Get the work done
1.2, 1.5, 1.6, 2.1, 2.2, 2.3, 2.6, 3.1-3.7, 4.1, 4.2, 4.3, 5.1, 5.3
· Develops and implements plans to manage projects that
involve diverse stakeholders with potentially competing
demands
· Systematically gathers and analyses all relevant information
and evaluates options to make informed decisions
· Evaluates outcomes of decisions to identify opportunities for
improvement
· Uses digital technologies and applications to access, organise
and share information
Assessment Requirements
Performance Evidence
· Define the parameters of the project including:
· Project scope
· Project stakeholders, including own responsibilities
· Relationship of project to organisational objectives and other
projects
· Reporting requirements

· Resource requirements
· Use project management tools to develop and implement a
project plan including:
· Deliverables
· Work breakdown
· Budget and allocation of resources
· Timelines
· Risk management
· Recordkeeping and reporting
· Consult and communicate with relevant stakeholders to
generate input and engagement in planning, implementing and
reviewing the project
· Provide support to team members to enable them to achieve
deliverables and to transition them as appropriate at completion
of the project
· Finalise the project including documentation, sign-offs and
reporting
· Review and document the project outcomes.
Knowledge Evidence
To complete the unit requirements safely and effectively, the
individual must:
· Give examples of project management tools and how they
contribute to a project
· Outline types of documents and other sources of information
commonly used in defining the parameters of a project
· Explain processes for identifying and managing risk in a
project
· Outline the organisation’s mission, goals, objectives and
operations and how the project relates to them
· Explain the organisation’s procedures and processes that are
relevant to managing a project including:
· Lines of authority and approvals
· Quality assurance

· Human resources
· Budgets and finance
· Recordkeeping
· Reporting
· Outline the legislative and regulatory context of the
organisation in relation to project work, including Work Health
and Safety (WHS) requirements.
Assessment Conditions
Assessment must be conducted in a safe environment where
evidence gathered demonstrates consistent performance of
typical activities experienced in the management and leadership
– project management field of work and include access to:
· 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
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;
· Smile
· Support and encourage other participants
· When someone is contributing everyone else is quiet
· Be patient with others who may not be grasping the ideas
· Be on time
· Focus discussion on the topic
· Speak to the trainer if you have any concerns.
Objectives
Know how to define project
Understand how to develop project plan
Learn how to administer and monitor project
Discover how to finalise and review project
Gain the skills and knowledge required for this unit.
1. Define project
1.1 Access project scope and other relevant documentation
1.2 Define project stakeholders
1.3 Seek clarification from delegating authority of issues
1.4 Identify limits of own responsibility and reporting
requirements
1.5 Clarify relationship of project to other projects and to the
1.6 Determine and access available resources to undertake
project
1.1 - Access project scope and other relevant documentation

Project scope
Project scope and other relevant documentation may include:
Project brief
Other documents outlining:
Expected outcomes of the project
Inclusions and exclusions from project
Project resources
Quality standards for project
Timeframes for project.
Projects are, by definition, delivering a once-off outcome,
involving a group of interrelated activities, with a team of
people, within a specific timeframe.
Project definition and project scope
One of the first tasks of a project manager is to determine the
scale of the project as the size will determine the level of detail
and discipline of project management activities to be applied
No matter how small the project, a clear definition and
statement of the areas and boundaries of the project need to be
established. The scope of the project includes the outcomes,
stakeholders, output work and resources (both human and
financial).
The scoping and definition stage is essential for later project
success.
If the project is unfeasibly defined and scoped, and not properly
linked with the organisational goals and objectives of the
business, there is a high risk the project will not be successfully
completed
The success of every project is measured differently depending
on the organisation’s goals and objectives and can be different
for varying members within the one organisation.
For example; the construction of a sports facility - whilst
important to be built on time and within budget needs to be also
measured by its operational and venue management

functionality once constructed and commissioned.
As a start, the following areas define and form the scope of the
project:
The outcomes/benefits
The customers/stakeholders
The work/tasks which are required
The resources (both human and financial)
Criteria by which the project’s success will be evaluated.
Once the scope has been defined and agreed upon, the details
can be documented in the project business plan/project schedule
or, in the case of smaller projects, a project proposal/brief may
be all that is required.
Once documented, sign off by the project sponsor/senior
manager should be obtained so that a formal agreement exists as
to the scope of the project.
Project scope, brief and schedule:
Project brief
Template example:
Suggested Headings
Comments
Title
Background / context
A brief explanation of the background and/or context of the
project
Objective
Why are you doing the project? What is the aim of this project?
Target outcomes
Maybe things that are to be improved, increased, enhanced or
reduced and showing the benefits that the project intends to
achieve
Project activities, output and milestones
What things will be delivered by the project? Outputs are used

by the project’s customers to achieve the outcomes. Detail
milestones and chart the success or failure.
Measured
How will the success of the project be measured? Measurements
are linked to one or more target outcomes which can then
answer such questions as 'what have we achieved' and 'how do
we know?'
Governance
Briefly describe the accountabilities of each party. Detail the
name and title of the project manager and project sponsor.
Reporting frequency, format and to whom?
Resources
Human resources, internal, external, consultants and/or working
groups will be required for the project? Budget, funding and
details of the proposed expenditures.
Stakeholders and communication strategy
List the key stakeholders or stakeholder groups who will impact
on the project. How will they be engaged?
Assumptions and constraints
List any underlying assumptions and / or constraints.
Risks and minimisation strategies
Identify barriers to achieving the project success. For each of
these risks, what steps will be undertaken to minimise them?
Risk management
The process used to manage risks throughout the project.
Identification, review and reporting.
Issues management
The process used to manage issues throughout the project.
Identification, review and reporting.
Related projects
Projects which are dependent on this project, or projects that are
interdependent on this project. Describe the relationship.
Guidelines / standards
Guidelines, standards or methodologies that will be applied
manage the project.

Quality control
Levels of review that will be undertaken. The development of
the project outputs. How the reviews will be conducted and who
will be involved.
Capturing the lessons learnt
Review the entire process (internal or external) to capture the
lessons learnt throughout the project.
1.2 - Define project stakeholders
Stakeholders
Stakeholders may include:
Clients or customers (internal and external)
Funding bodies
Management, employees and relevant key personnel (internal
and external) with special responsibilities
Project sponsor.
A stakeholder is everybody who is involved in the project or
whose work or interest might be affected by the project.
Stakeholders once were regarded more as investors, but the
modern or current meaning expands this to include everyone
who has some form of vested interest.
Sometimes it does include those who may ‘perceive’ they have
an interest, and it now more important for the project manager
to filter those perceptions so as not to waste time and energy on
those who are more an inquisitive stakeholder than a person
with a real vested interest in the project and its outcomes.
Stakeholders may have varied level of interest, involvement,
and influence on the project.
It is extremely important to identify all the stakeholders and
manage them as Stakeholders can have negative and positive
influence on the project.

A broad definition to assist you in filtering stakeholders could
include:
A person or organisation who are actively involved in the
project
Those whose active interest in your project can exert positive or
negative work on the project or the outputs from the project
Those who exert influence over the project or its deliverables.
These stakeholders who could exert those influences include:
Customers
End users
Sponsors
Program managers
Portfolio managers
The project manager
The project team
Other functional managers
Operation managers
Sellers
Vendors
Legal department.
Customers / end users
People who will be using the project output
Sponsor
Person or a Group, who generally provide financial support and
act as the advocate of the project. Sponsors act as escalation
path for the issues that a project manager cannot handle.
Sponsors provide a key input to the scope and project charter
Portfolio manager
Portfolio Manager might increase or decrease the priority of the
project and might be involved in the selection of project by
looking at ROI (Return On Investment)
Program manager
Provides support and oversight to the project.
Project management office
Might provide support and guidance to project management
team

Project manager
Key person responsible for achieving project objectives by
managing key constraints
Project team
All team members involved in the project including project
manager, project management team members, and other team
members
Functional managers
Provide functional resources for various functional expertise in
the project
Operational manager
Includes key business area in the organisation. After closing,
project outcome is handed over to operational manager
Sellers / vendors
Provides external service or expertise to the project.
Activity 1A
1.3 - Seek clarification from delegating authority of issues
Delegating authority
Delegating authority may include:
Customer or client
Funding body
Manager or management representative
Project sponsor.
Project parameters may include:
Project finances or budget
Integration of project within organisation
Legislative and quality standards
Physical, human and technical resources available or required
for project

Procurement requirements associated with project
Risks associated with project, including WHS
Scope of project
Time lines.
Although there is much written about project management and
the processes that support it, there are still many issues that we
need to consider in the delivery of successful projects.
There are many frameworks and a great deal of information
about project management, however, project delivery is still
heavily influenced by the environment in which the project
manager is working
The application of any general project management
methodology requires an appropriate consideration of the
corporate and business culture that forms a particular project’s
environment
This is especially important in an environment where there is a
dynamic industry and where flexibility, attention to detail and
risk management strategies are crucial components for
successful delivery.
Seek clarification from delegating authority of any issues
It may not be appropriate to undertake all project management
activities to the same level of detail and with the same level of
discipline:
For successful project management it is critical to seek
clarification from the delegating authority and identify any
issues using and following a structured and stringent process
However, it is of paramount importance to balance the process
requirements so as to not outweigh the outcome, which can be
an issue in some organisations such as government bodies or
heavily regulated industries
Project teams must keep the desired outcome in mind when
applying their time and efforts to process requirements such as
reporting, planning and documentation.

Activity 1B
1.4 - Identify limits of own responsibility and reporting
requirements
Responsibility and reporting
Ultimate responsibility and accountability for the project must
be articulated and accepted at an appropriately high level within
the organisation.
This involves commitment of organisational management and a
willingness to be aware of concerns identified by the project
team.
The project manager is the key person around which the project
will ultimately revolve.
The project manager is responsible for:
Organising the project into one or more sub-projects
Managing the day-to-day aspects of the project
Resolving planning and implementation issues
Monitoring progress and budgets
Organise reporting requirements.
Monitoring budgets:
It could be argued that establishment of the human and financial
resources necessary to deliver the project is the most crucial
element for the success of the project
This process must be established during the project definition
and scoping stage
Notwithstanding this, it is critical to allow for contingencies
during the life of the project in areas such as timeframes,
budget and resourcing.
For larger or more complex projects:
Advanced project management knowledge and experience are
essential
Detailed knowledge of the business area in which the project is
being run is needed
Those project managers who don’t have this knowledge should
seek to obtain this
effectively communicate with project team members and clients

Address business issues to ensure concerns are met.
Avoiding scope creep:
Avoiding ‘scope creep' a commonly used term to describe the
risk of stakeholders attempting to add extras, such as
activities/tasks or outcomes, during the course of the project
If scope creep does occur, the scoping of the project needs to be
revisited in order to clearly show your organisation the impact
these 'extras' will have on the resources, time, cost, and quality
of the project
As the pace of change is constantly increasing and business
processes embrace flexibility and ability to change the customer
and the project team are often on a learning curve and will only
know what the scope should be as they progress through stages
of the project.
1.5 - Clarify relationship of project to other projects and to the
Project relationships
Prior knowledge management:
A single project rarely exists in a vacuum, even in a small
organisation
You can establish links between projects and accurately model
the relationship between the different project components
When you have a task that relies on or drives a series of tasks
some of which may have been addressed in another project, you
can create a task dependency to link the tasks in different
projects
A project manager should look at all similar projects that have
been undertaken before, or consider re-using documents and
processes of a previous project
A great deal of time can be saved doing this and the project can
have a greater degree of predictability
Project managers can learn critical success factors and/or
problem issues to assist with their immediate planning.

How does your project relate to your organisation’s objectives?
What is the context in which your project will function within
the organisations objectives and is this project unique?
Is there a similarity or ‘connection’ between past projects and
this project?
Are those connections of benefit or not?
Clarify relationship of past projects to the organisations
objectives to see if they match yours?
How will the project change or improve the organisations
objectives?
What are the strategic objectives this project is intended to
satisfy?
Who has the ultimate responsibility in the solution or outcome?
How do the other stakeholders meet these goals? Do the
stakeholder’s goals align with the strategic goals you are trying
to achieve through this project?
Are they also designed to meet the organisations objectives as
outlines above?
Activity 1C
1.6 - Determine and access available resources to undertake
project
Resources
Resources include:
Obtaining goods and services required to deliver the project
Appointing or recruiting staff
Appointing consultants.
Resource determination will include:
Cost
Management of the project
Lead time
Date resources are required
Specifications

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