BSBWHS605 Develop, Implement And Maintain WHS Management Systems

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BSBWHS605 Develop, implement and maintain WHS management systems– Assessment 1 Last Updated: October 2016, V. No. 1.1

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Task 1: (Role Play) Propose the WHS management system

Submission details

The Assessment Task is due on the date specified by your trainer. Any variations to this

arrangement must be approved in writing by your trainer.

Submit this document with any required evidence attached. See specifications below

for details.

You must submit both soft copies and printed copies of your answers.

Soft copies-

Upload on the eLearning to the specific submission folder with a cover page clearly indicating

your name, student id, assessment no and the unit name or put those information in the

header and footer of your documents.

Printed copies-

Submit to your Trainer with the “Assessment Cover Sheet” (Filled out and signed

appropriately) attached on top of your documents.

The Trainer/Assessor may further prompt and question in order to receive answers of

appropriate quality or if further clarification required and to validate authenticity of your

submitted work.

Assessment description

Using the scenario information supplied, you will conduct an initial review of the workplace.

You will then participate in a management meeting (a role-play), in which you will propose

the design of an appropriate WHSMS and consult with management. During the meeting, you

will present a draft WHS policy for consultation.

 

 

 

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Procedure

1. Review the simulated workplace information for Pitstop Pty Ltd (below).

2. Conduct an initial review of the simulated workplace, including core elements of the

system:

â—‹ organisational requirements for WHS management

â—‹ responsibilities and accountabilities for WHS

â—‹ WHS risk management and procedures

â—‹ documentation and record-keeping requirements for monitoring and review and

demonstration of compliance

â—‹ employee capability and need for training.

Note: some relevant information may be gathered from the simulated workplace

information provided below; some information may be gathered through the process of

consultation.

3. Review the summaries of consultation meetings with organisational stakeholders to gain

input into proposed WHSMS (you will need to address the stakeholder concerns in your

WHSMS).

4. Conduct any research necessary to support your proposal for the design of a WHSMS,

for example on:

â—‹ Victorian WHS legal framework

â—‹ NSW or Qld WHS Act, to support your proposal for the design of a WHSMS.

â—‹ relevant standards for WHS management systems, risk management and record-

keeping.

5. Develop a draft WHS policy for Pitstop Pty Ltd.

6. Develop a (1–2 page) written outline of core elements of your proposed WHS

management system and your response to issues raised by Amanda Kaisig and Pat Lee:

â—‹ Store Manager of flagship store, Amanda Kaisig needs to be reassured that the

new system will deal systematically with all health and safety problems, that the

board of directors is fully committed and will provide the required resources.

â—‹ Worker representative from former ISS stores, Pat Lee is willing to communicate

the importance and benefits of the new WHSMS to workers, but only if convinced

of the benefits to workers and that management has given its full commitment any

new WHSMS.

 

 

 

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7. Arrange a time with your assessor to complete management role-play in which you

propose design of your WHS management system and WHS policy to the board of

directors and CEO during a meeting.

8. In a 10–15 minute role-play presentation and consultation session, propose the design of

an appropriate WHS management system and WHS draft policy to the board of

directors and CEO. Ensure you lead the meeting and discuss:

â—‹ core elements of system and proposed changes or additions

â—‹ relevant standards

â—‹ relevant legislative requirements for WHS management, including those related to

record-keeping

â—‹ WHS policy requirements

â—‹ how policy will be communicated to employees

â—‹ how design of WHS management system and WHS policy meet internal and

external requirements

â—‹ possible certification option and process of certification.

Note that, during the presentation and consultation session, you will need to:

â—‹ answer questions

â—‹ ask for feedback and input into the system

â—‹ work to build support and ask for management commitment to policy and

WHSMS.

9. Incorporate necessary changes into your WHS policy draft and design of WHSMS based

on consultation.

10. Submit all documents to your assessor as per the specifications below. Ensure you keep

a copy of all work submitted for your records.

Specifications

You must:

â—Ź participate in presentation and consultation session (role-play) with board of directors

and CEO (your Trainer)

● submit 1–2 page written outline of WHSMS core elements (revised if needed) including

responses to:

â—‹ Store Manager, Amanda Kaisig

â—‹ worker representative, Pat Lee

 

 

 

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â—Ź submit a draft WHS policy (revised if needed).

Your assessor will be looking for:

â—Ź analytical skills to analyse relevant workplace information and data

â—Ź communication skills to conduct effective formal and informal meetings and

communicate effectively with personnel at all levels of the organisation

â—Ź consultation, facilitation and negotiation skills to gather input and build support for

plans

â—Ź information technology skills to conduct research, create documentation and present

information

â—Ź organisational skills to manage own tasks within a timeframe

â—Ź knowledge of standards relating to WHSMS

â—Ź knowledge of relevant commonwealth and state or territory WHS Acts, Regulations,

codes of practice, standards, guidance material and other relevant publications

â—Ź knowledge of requirements for record-keeping that address WHS, privacy and other

relevant legislation

â—Ź knowledge of WHS management systems

â—Ź knowledge of WHSMS certification and auditing standards, processes and requirements.

 

 

 

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Simulated workplace scenario – Pitstop Pty Ltd

Pitstop is a privately owned company that until recently operated one independent service

station in Melbourne’s north. The owner, chairman and CEO, Jim Murphy, has run the

company for the past five years. He has operated service stations for most of the last 25 years

and relies on his hands-on approach to monitor and instruct staff on what to do.

In the past eight months, Pitstop has raised sufficient finance to buy out the Independent

Service Station (ISS) chain of nine stores across Victoria, NSW and Queensland and rebrand

them all as Pitstop. Jim plans to continue the expansion until the optimum target of 30 service

stations is secured for the Victoria, NSW and Queensland market.

Pitstop service stations trade 24 hours. They typically include a vehicle access forecourt with

at least six pump stations, a retail shop, a food bar, Store Manager’s office and stockroom.

They sell fuel, oil, gas, supermarket goods, hot pies (heated from frozen on the premises) and

cold drinks.

Including the retained staff from the ISS buyout stores, Pitstop has a workforce of

approximately 60 employees. The employees come from a wide range of cultural and

linguistic backgrounds. A significant proportion has poor English literacy, including poor

reading comprehension. Most employees, but not all, have a high-school level of education.

All stores have computerised point-of-sale terminals that are linked to the company’s

enterprise resource planning and accounting systems. The flagship store has an attached office

space that accommodates the directors and senior management staff.

Pitstop service stations are currently located in:

â—Ź Victoria:

â—‹ Craigieburn

â—‹ Bendigo

â—‹ Shepparton

â—‹ Wodonga

â—Ź NSW:

â—‹ Ballina

â—‹ Wagga Wagga

â—‹ Wollongong

â—Ź Qld:

â—‹ Coolangatta

â—‹ Ipswich

 

 

 

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â—‹ Toowoomba.

Background to WHSMS

You have been employed by Pitstop as the General Manager – Retail. You have been asked to

design and develop a WHS Management System (WHSMS) to manage WHS for Pitstop as one

of your initial tasks.

In the employment interview, Jim explained that:

Pitstop has just gone through a tremendous transformation, from a single

hands-on operation to a multi-store enterprise with plans to triple in size in

the next five years. The board of directors has made me acutely aware that we

can’t manage the present and future operations the way I have in the past. We

want you to design and develop a WHSMS, as far as is practicable, to ensure

a workplace that is safe and without risks to the health of our employees,

customers, suppliers and visitors to the sites. You may need to create or

rewrite organisational policies as well as devise training schemes, implement

changes and develop reports.

I don’t want to pressure you, but it is imperative that this WHSMS be in

place in four months time when we meet with all key stakeholders of Pitstop.

When I managed the single store we never had the injuries and time off work

that we are having at the moment. I was always very careful to tell my staff

how to work safely and made sure any potential hazards were dealt with before

they caused injury. But I can’t be in ten places at once. We need a system that

can be effectively implemented and monitored without me having to be there.

Absenteeism has gone up and I believe that it is caused by low staff morale

connected to work health and safety. I believe that work should be a happy

place because a happy workplace is a productive one. Also, it tends to cultivate

long-term employees.

After the interview, Jim introduced you to key investor and board member, Alan Harvey who

explained that he leaves Jim to worry about the company operations while he concentrates on

strategic planning. Alan said:

With our expansion plans we have to be very concerned about our brand

image. We can’t afford to have it tarnished by bad press concerning the way

we care for our sites. We handle a lot of hazardous substances in our service

stations, and the board takes the legal responsibilities we have as company

directors in regard to WHS very seriously.

In developing the WHSMS, make sure you consult with and include the

board.

 

 

 

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Alan asked you about the way you intend to go about setting up the WHSMS for Pitstop and

whether you will be needing any help in achieving the task by the due date.

Your response was that you had been involved the rollout of a similar program with

Australian Petroleum. You had used WHS consultants in areas where the company

management required additional expertise. You also used the National Safety Council of

Australia (NSCA) to train the managers about WHS responsibilities and obligations. You think

NSCA may also be useful for training the Pitstop Store Managers on WHS compliance as

would St John’s Ambulance in certifying all managers with first aid competency.

Alan noted that, in the interest of efficiency, it would be a good idea to integrate existing

management systems with the new WHSMS. This may involve adapting policies from other

management systems at Pitstop or those legacy policies retained from the ISS buyout stores.

Alan went on to say:

This is a critical area for our short-term and long-term future. We don’t want

to set a budget, but would rather you come back to us with recommendations

on the resources required to do the WHSMS right.

 

 

 

 

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Pitstop Pty Ltd organisation

 

Pitstop organisational structure

 

Board of directors and CEO

Executive Assistant General Manager –

Finance and Operations

Senior Accountant

Records clerk

General Manager –

Retail

Store Managers

Shift Managers

and Cashiers

Pitstop WHS strategic plan 2014 excerpt

Mission statement

Pitstop aims to be the first-choice provider of fuel and snacks for Australian motorists.

Pitstop is committed to providing employees and customers with a healthy and safe

environment.

 

 

 

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Pitstop workplace operations

Store activities list

The following activities are carried out at Pitstop.

Employees

Ongoing activities

â—Ź Serve customers.

â—Ź Resolve issues associated with use of petrol or LPG pumps.

â—Ź Heat pies.

â—Ź Receive and store frozen and refrigerated food items.

â—Ź Banking notes and cash register balancing.

â—Ź Mop and clean floors.

Once-a-day activities

â—Ź Clean all forecourt pumps.

â—Ź Pick up all rubbish on the forecourt.

â—Ź Replace water and supplies on the forecourt.

â—Ź Change display board prices.

â—Ź Move stock from reserve to retail shelves.

Weekly activities

â—Ź Measure the fuel volumes in the underground storage tanks.

â—Ź Receive deliveries of LPG and petrol.

â—Ź Receive and store retail products.

â—Ź Reorganise reserve stock.

â—Ź Stocktake inventory items on forecourt, shop and reserve.

 

 

 

 

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Store managers

Ongoing activities

â—Ź Monitor employees under supervision.

â—Ź Aid employees where required.

â—Ź Coach/train employees.

â—Ź Induct new employees.

â—Ź Provide reports to senior management as requested.

Daily activities

â—Ź Sales, inventory and banking reports for General Managers.

Yearly activities

â—Ź Performance Review and Development Program (PRDP).

 

 

 

 

 

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WHS initial review and data gathering

One of the first tasks that the directors have asked you to perform was to review the existing

WHS situation at Pitstop. Pitstop’s most senior Store Manager, Amanda Kaisig, has compiled

an incident summary report. You have also conducted store visits to observe conditions and

conducted a review of record-keeping systems.

Incident summary report for previous 6 months

Incident type Number Who affected? Work

days lost

Fuel spill 33 3 customers with fuel on clothes

10 litre fuel spill into drains

0

Fire in rubbish bin 2 Staff with smoke inhalation 0.5

Slip on wet shop floor 3 2 employees

1 customer

6

Falling stock in reserve 6 6 employees 2

Trip 2 1 customer (cracks in concrete of forecourt)

1 employee (cluttered reserve corridor)

0

Burns (ovens) 42 employees 23

Fatigued legs 2 2 employees 2

Eye and breathing difficulties related to fumes from oven cleaner

3 1 employee 1

Store visits

Your visit of the stores identified the following points:

â—Ź Unwanted chemicals have been eliminated from the flagship store.

â—Ź Some goods are being supplied in quantities that make lifting them very difficult.

â—Ź Anti-glare screens have been installed on the computer and point-of-sale screens.

â—Ź No stress mats for the cashier who has to stand on concrete floors for 7.5 hour shift.

● No real training of staff – supervision more on sales and cost control, not WHS.

â—Ź Extensive Personal Protective Equipment including hearing or eye protection, safety

vests, hard hats. But not used all the time by staff.

â—Ź No emergency preparedness posters in the stores.

â—Ź Only a few safe working procedures clearly visible or available.

â—Ź No induction of new staff on WHS.

 

 

 

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â—Ź No staff noticeboard for safety information.

â—Ź Material safety data sheets seem to be available for most dangerous goods such as petrol

and LPG.

● First aid kits in every store – most fully stocked. Store managers have been given

authorisation to fully stock first aid kits.

â—Ź Register of hazardous substances and dangerous goods kept in store but not updated.

â—Ź No safety audits or inspections have been undertaken regularly. There is no planned

schedule.

â—Ź Contractors and subcontractors not informed about their duty of care on-site.

Records

You check with the Records Clerk, who is responsible for keeping all of Pitstop’s records. You

discover:

â—Ź No training records are kept of employees and subcontractors to provide evidence of

workplace competencies.

â—Ź No rehabilitation policy.

â—Ź No record-keeping policies.

â—Ź Records relating to workers compensation claims are kept in an unlocked cabinet.

â—Ź Missing incident reports.

â—Ź Paper record-keeping is hard to use to compile WHS performance data for individual

stores and the organisation.

â—Ź Archiving of records is practiced and appropriate.

â—Ź Electronic data is backed-up periodically.

â—Ź Insurance policies are in place but may not have been appropriately updated after the

buyout of the ISS service stations.

â—Ź In the files you discover some other relevant documents including the current policy and

procedures that have been adopted from the buyout stores.

 

 

 

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Policy and procedures documents (retained from ISS buyout stores)

ISS work/life balance policy

ISS aims to provide a flexible and family-friendly workplace that reasonably accommodates external commitments and carer responsibilities.

As a flexible and family-friendly business, ISS recognises that its staff members have responsibilities and commitments extending beyond the working environment. ISS is aware that these responsibilities and commitments can have a significant impact on employment opportunities and is committed to providing an accessible, supportive and flexible environment for all staff.

In responding to requests for arrangements relating to work/life balance, management will need to consider work requirements and the current and potential needs of others in responding, keeping in mind that the ISS seeks:

â—Ź minimisation of disadvantage(s) that may result from competing commitments

â—Ź an environment that is supportive and accepting of the responsibilities of caregivers and staff with cultural obligations.

Promotion and support of the balance of work and personal needs for staff will position ISS as an employer of choice, initiate a high level of commitment from staff to the work and ideals of ISS, and provide high levels of job satisfaction and a strong collaborative and collegiate culture while at the same time reducing stress and turnover.

Staff will be provided with a positive work climate where supervisors strive to meet expectations in accommodating life and personal responsibilities.

 

ISS smoking policy

As an employer, ISS has a duty under WHS legislation, to provide a safe working environment and to protect the health of all employees from any illness and injury arising from the workplace. Areas other than those designated will be smoke-free to eliminate the hazards of environmental tobacco smoke.

A designated area will be available where smokers will be able to smoke during scheduled work breaks, as long as this does not cause harm or discomfort to other employees in the workplace. Employees may not, at any time, smoke inside buildings or premises or any enclosed workplaces. The designated areas will be away from flammable or other dangerous activities.

A breach of this policy will be dealt with in the same manner as a breach of any WHS Policy and standard disciplinary procedures will apply.

 

 

 

 

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ISS sexual harassment policy

ISS recognises that sexual harassment is a serious issue and is committed to providing a workplace free from sexual harassment.

What is sexual harassment?

Sexual harassment is any deliberate verbal or physical conduct that is unwelcome and uninvited, embarrassing, demeaning, offensive or compromising. It can be experienced anywhere in the workforce and by both men and women.

It has nothing to do with mutual attraction or genuine affection between people. Such friendships, whether sexual or not, are a private concern. It should not be confused with genuine compliments or behaving with common courtesy.

Sexual harassment may include such actions as:

â—Ź dirty jokes, derogatory comments, offensive written messages (email/text message), or offensive telephone calls

â—Ź leering, patting pinching, touching or unnecessary familiarity

â—Ź persistent demands for sexual favours or social outings

â—Ź displays of offensive posters, pictures or graffiti.

Behaviour is against the law if it makes you feel:

â—Ź offended and humiliated

â—Ź intimidated and frightened

â—Ź uncomfortable at work.

ISS considers sexual harassment an unacceptable form of behaviour which will not be tolerated under any circumstances.

ISS, undertakes to educate all employees on the issue of sexual harassment to avoid its incidence and to inform employees of procedures to deal with the problem should it occur.

 

ISS alcohol and drugs policy

ISS recognises the value of its employees and is committed to promoting and maintaining the health and wellbeing of every member of its work force. Alcohol and other drugs can influence an employee’s ability to maintain safe work practices and can endanger themselves and others. All employees, contractors and sub-contractors have a responsibility to present for work and remain not influenced by alcohol and other drugs.

 

 

 

 

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ISS bullying and harassment policy

ISS is committed to providing a working environment that is free from bullying. Working relationships and standards of behaviour between employees are important workplace issues. The ISS code of conduct sets out principles for behaviour required in the workplace, namely that:

â—Ź all people should be treated with respect

â—Ź all employees should develop an awareness about the impact of their behaviour on others

â—Ź there is agreement about what is appropriate behaviour at work.

ISS considers that bullying in the workplace is inappropriate and unacceptable behaviour and those employees found to have either committed or condoned such behaviour in the workplace may be subject to disciplinary action.

A bully is a person who uses strength or power to coerce others by fear. To bully is to oppress or persecute, physically or morally by (threat of) superior force. Bullying is physical or psychological behaviour or conduct where strength (including strength in personality) and/or a position of power is misused by a person in a position of authority or by a person who perceives that they are in a position of power or authority. While bullying is normally associated with unequal power relationships, peer-to-peer bullying is not uncommon and is an equally unacceptable behaviour at ISS.

A variety of behaviours and acts may constitute bullying which, over time, create a negative workplace environment. These may include:

â—Ź threats

â—Ź verbal abuse

â—Ź shouting

â—Ź constant unconstructive criticism

â—Ź blaming

â—Ź sarcasm and other forms of demeaning language

â—Ź coercion

â—Ź punitive behaviour

â—Ź isolation

â—Ź deliberately withholding information that a person needs to exercise her or his role or entitlements within the organisation

â—Ź repeated refusal of requests for leave or training without adequate explanation and suggestion of alternatives.

Bullying may be perpetrated by an individual who may be a work colleague, a supervisor or any person who is part of the work environment.

 

 

 

 

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ISS performance management policy

Purpose

To support ISS’s commitment to providing a high-performance and satisfying work environment. To describe ISS’s Performance Review and Development Program (PRDP).

Scope

This policy applies to all employees of ISS.

Policy

Each Store Manager at ISS should provide support and guidance to their employees. To this end, Store Managers should discuss performance and development. The PRDP has the following aims:

â—Ź encouraging and facilitating high performance among ISS employees

â—Ź recognition of achievement and training

â—Ź facilitating feedback and consultation between management and staff

â—Ź identifying employee development and training needs.

To facilitate the PRDP, all Store Managers will be trained in the principles and practice of PRDP to ensure effective implementation of the PRDP process.

Together, each employee and their supervisor will develop a performance plan and a professional development plan. Both will then negotiate how these plans will be implemented. PRDP should be repeated over a twelve month cycle.

PRDP will be implemented in accordance with the principles of fairness, equity and in accordance with relevant legislation and various ISS policies.

Responsibility

Managers are responsible for ensuring that PRDP is implemented for all employees for whom they are designated supervisors.

 

 

 

 

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ISS induction policy

Purpose

To support ISS’s commitment to induction of all new employees. To describe ISS’s induction process.

Scope

This policy applies to all employees of ISS.

Policy

Each employee should be systematically introduced to their job roles and should be provided with the information they require to succeed and develop. Inductions should:

â—Ź encourage commitment to the mission and strategic goals of ISS

â—Ź welcome and introduce staff members to the workplace

â—Ź provide any information necessary to enable new employees to perform their duties.

The induction process has two components

â—Ź ISS corporate induction

â—Ź local induction, for example, store induction.

Responsibility

Managers are responsible for ensuring that the induction process is implemented for all employees for whom they are designated supervisors.

 

 

 

 

 

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ISS emergency procedures

Fire emergency

All fire exits should be kept clear of obstacles.

Keep access corridors to emergency exits clear.

In the case of a fire:

1. Assess the danger.

2. Assist anyone in the vicinity of the fire away from danger.

3. Close door to the fire area if possible.

4. Call for assistance and call out “FIRE, FIRE, FIRE” in a loud and clear voice.

5. Attack the fire with the correct extinguisher or fire hose.

 

First aid

1. Supervisors and managers should endeavour to have a current first aid certificate.

2. Follow CPR procedure where appropriate:

â—‹ Check for DANGER; to you, to others, to the casualty.

â—‹ Check for a RESPONSE

â—‹ Check the AIRWAY

â—‹ Check for BREATHING

â—‹ Check for CIRCULATION

3. Call for assistance as soon as it is appropriate to do so.

 

Fuel spill

Fuel spills can happen when filling tanks.

When notified of a fuel spill:

1. Stop pump.

2. Wheel prepared fuel spill kit bin to the affected area.

3. Clear persons from area.

4. Place absorbent mats on the spill.

5. Clear soaked mats and place them in the discard bin.

 

 

 

 

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Armed holdup

1. Stay calm.

2. Talk in a calm voice.

3. Don’t argue.

4. Press hidden alarm.

5. Always give them what they want.

6. Note as many details as possible about the person.

7. Report details to police.

 

ISS hazard control procedures

All staff should be made aware of this policy and procedure within several months of commencing work at ISS.

New staff should be made aware of any hazards that exist within the workplace and the way ISS manages the potential risk from that hazard.

It is expected that each staff member will report and act upon potential workplace hazards.

Process for identification of new hazard:

1. Identify hazard.

2. Clear area.

3. Partition the hazard.

4. Clear hazard if safe to do so.

5. Report hazard to owner or manager.

6. Complete all documentation.

 

 

 

 

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ISS safe fuel handling – Instructions for customers

Car engines – By law you must switch off your engine before and during refuelling.

Refuelling petrol vehicles – Take care, static discharge from clothing may ignite vapours.

Mobile phones – Dropping a mobile phone can cause sparks, which may ignite vapours. Using a mobile phone while refuelling can cause a lapse in concentration.

Smoking – By law, you and your passengers are required to extinguish your cigarettes.

Children – ONLY adults (15 years or older) are permitted to fill fuel tanks.

Motorcycles – Always dismount your motorcycle prior to and during refuelling.

Autogas (LPG) – If you detect an LPG leak press the emergency stop button and advise staff immediately.

Caravans and food vans – By law you are required to extinguish all pilot lights.

Filling containers – Fill only properly labelled containers which have been stamped to say they are approved to carry flammable liquids.

Safe fuel handling – Please be careful when handling or storing fuel for any purpose:

â—Ź Contact with fuel can burn or irritate skin and eyes.

â—Ź If your clothing is splashed with fuel, saturate the area with water.

â—Ź If fuel splashes on your skin, wash immediately with soap and water.

â—Ź Prolonged exposure to vapours can adversely affect health.

● Always label and store fuel in a cool, well ventilated location out of children’s reach.

â—Ź It is illegal to pour fuel into drains or sumps.

Prevention of static electricity

â—Ź Discharge static electricity (e.g. by touching metal parts of your vehicle) before refuelling.

● Do not re-enter your vehicle during refuelling – stay outside.

Driveway safety

â—Ź Start your engine and move your vehicle only AFTER refuelling is completed and the nozzle has been returned to the pump.

â—Ź Pull-away of hose and nozzle may hurt people around you, damage your car, lead to fuel leakage and possibly cause a fire.

â—Ź Service station driveways are busy places. Reduce speed and be aware of moving vehicles and pedestrians.

 

 

 

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Consultation with stakeholders

Meeting with Store Manager – Flagship Store

Amanda Kaisig

Amanda is very concerned about the number of incidents since Pitstop’s buyout of ISS. Safety performance, because of poor and antiquated record-keeping practices, was very difficult to evaluate; however she was able to compile the summary report:

â—Ź Fuel spills could have catastrophic consequences. There is also a risk of failing to comply with environmental laws. There is also the risk of potential loss of customer good will.

We advertise our responsibility to the environment.

â—Ź The large number of burns is worrying and also symptomatic of the lack of procedures and training for all processes.

That was part of the buyout, when all stores were fitted with the new LG MP-9485S 34L Silver Colour Solar DOM (10amp) ovens and a pie warmer so that all the stores could sell Jim’s favourite multiple sale product – pies. We have not had any issues here, but the new stores had no training on the new oven. Managers were just given an instruction book that was translated from Japanese. The staff members need to be very careful when using the oven cleaner as well. It can give off some very caustic fumes.

Amanda is concerned that, since the Pitstop buyout of ISS, the system that worked on a small scale is inadequate to deal systematically with the present size of operations.

Jim was always keen to show new employees the dangers that were specific to this job and the ways he wanted the risks managed and actioned. I don’t think the new buyout stores concentrate on the induction phase with new employees. They tend to introduce the new staff to the potential hazards as they arise in the work activities. I know Jim looks at the WorkSafe Victoria website, but I have never accessed it and I know he keeps a copy of the WHS Act and Regulations in his files because I have seen them there. Jim never questions the money I spend to keep the personal safety equipment in full stock but I know they have been on a restricted budget in the buyout stores. As for training, well Jim did it all. He trained me, but I know that with all the increased activity he has not had the time to train the other managers as he would have liked. He authorised resources for my St John’s first-aid course and actually gave me time off work to do it. I know that only a few of the buyout managers have this qualification.

 

 

 

BSBWHS605 Develop, implement and maintain WHS management systems– Assessment 1 Last Updated: October 2016, V. No. 1.1

Page 22 of 22

 

Jim was always very attentive to WHS issues in this store but I’m not so confident about the buyout stores. They were not trading very well before Pitstop took them over and I don’t think WHS was a key focus of those stores. It hardly comes up in store meetings and agendas proposed by the managers of the buyout stores. As you can see, Jim did not have a lot of documented policy and procedures but he was very conscious of the importance of WHS for the staff.

Despite issues with buyout stores’ safety, because of time pressures, we have tended to adopt their policy and procedures until we can fully develop Pitstop’s own.

Meeting with workers’ representative former ISS stores – Pat Lee

Pat Lee

Pat Lee has met with 40 workers and managers from the former ISS stores. He has compiled a list of their concerns:

â—Ź Few health and safety issues have been raised by management in the buyout stores over the past two years.

â—Ź Store managers are unclear about reporting process and legal obligations.

â—Ź Jim (the CEO) seems to be appreciated as a great oral communicator but the workers complained that they had no real written instructions.

â—Ź The workers are unsure if the issues raised by them actually make it to the General Manager or the board of directors. They are not sure that their Shift Managers and Store Managers are that interested.

â—Ź Some of the workers have contacted their union representatives who have given their members information about WHS Act.

â—Ź Workers would like to be represented by an elected HSR.

â—Ź No one-on-one training was given by technical experts on how to operate the new pie oven and warmer safely.

â—Ź Few workers feel adequately trained to perform their role safely. WHS policy and procedures need to be included in induction or training.

â—Ź Workers that work in the late night and over night shifts complained most about not being informed about WHS issues.

â—Ź Poor morale is leading to absenteeism and presenteeism. Presenteeism is particularly worrisome because it can mean workers are more susceptible to injuries when they are not fully committed.

 
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The Performance Management Process

/in /by

In one page:

Identifying or predicting positive and negative outcomes at Network Solutions, Inc.

 

may be aided by the information on page 22 of the text where the author identifies the characteristics of an ideal performance management system (PMS).

 

For this discussion, read Case Study 1-2: Performance Management at Network Solutions, Inc. on pages 31-32 in your textbook.

 

What do you think will be some of the advantages or positive outcomes resulting from the implementation of the system?

 

 

What do you anticipate will be some of the disadvantages or negative outcomes? Why?

Case Study 1-2CASE STUDY 1-2

Performance Management at Network Solutions, Inc.

 

 

 

Network Solutions, Inc., is a worldwide leader in hardware, software, and services essential to computer networking. Until recently, Network Solutions, Inc., used more than 50 different systems to measure performance within the company, many employees did not receive a review, fewer than 5% of all em- ployees received the lowest category of rating, and there was no recognition program in place to reward high achievers. Overall, it was recognized that performance problems were not being addressed, and tough pressure from competitors was increasing the costs of managing human performance ineffectively. In addition, quality initiatives were driving change in several areas of the business, and Network Solutions decided that these initiatives should also apply to “people quality.” Finally, Network Solutions wanted to improve its ability to meet its organizational goals and realized that one way of doing this would be to ensure that they were linked to each employee’s goals.

Given this situation, in 2001, Network Solutions’ CEO announced that he wanted to implement a forced distribution performance management system in which a set percentage of employees were classified in each of several categories (e.g., a rating of 1 to the top 20% of performers; a rating of 2 to the middle 70% of performers; and a rating of 3 to the bot- tom 10% of performers). A global cross-divisional HR team was put in place to design and implement the new system. The first task for the design team was to build a business case of the new system by showing that if organizational strategy was carried down to team contributions and team contribu- tions were translated into individual goals, then business goals would be met. Initially the program was rolled out as a year-round people management system that would raise the bar on performance management at Network Solutions by aligning individual performance objectives with organizational goals by focusing on the development of all employees. The desired outcomes of the new system included raising the performance level of all employees, identifying and retaining top talent, and identifying low performers and improving their performance. Network Solutions also wanted the performance expectations for all employees to be clear.

Before implementing the program, the design team received the support of senior leadership by communicating that the performance management system was the future of Network Solutions and by encouraging all senior leaders to ensure that those reporting directly to them understood the process and accepted it. In addition, they encouraged senior leaders to use the system with all of their direct subordinates and to demand and utilize output from the new system. Next, the design team encouraged the senior leaders to stop the development and use of any other performance management system and explained the need for standardization of performance management across all divisions. Finally, the team asked senior leaders to promote the new program by involving employees in training of talent management and by assessing any needs in their divisions that would not be addressed by the new system. The Network Solutions global performance management cycle consisted of the following process:

1. Goal cascading and team building 


2. Performance planning 


3. Development planning 


4. Ongoing discussions and updates between managers 
and employees 


5. Annual performance summary 


 

Training resources were made available on Network 
Solutions’ intranet for managers and individual contributors, including access to all necessary forms. In addition to the training available on the intranet, 1- to 2-hour conference calls took place before each phase of the program was begun.

Today, part of the training associated with the performance management system revolves around the idea that the development planning phase of the system is the joint year- round responsibility of managers and employees. Managers are responsible for scheduling meetings, guiding employees on preparing for meetings, and finalizing all development plans. Individual contributors are responsible for documenting the developmental plans. Both managers and employees are responsible for preparing for the meeting, filling out the development planning preparation forms, and attending the meeting.

With forced distribution systems, there is a set number of employees that have to fall into set rating classifications. As noted, in the Network Solutions system employees are given a rating of 1, 2, or 3. Individual ratings are determined by the execution of annual objectives and job requirements as well as by a comparison rating of others at a similar level at Network Solutions. Employees receiving a 3, the lowest rating, have a specified time period to improve their performance. If their performance does improve, then they are released from the plan, but they are not eligible for stock options or salary increases. If performance does not improve, they can take a severance package and leave the company or they can start on a performance improvement plan, which has more rigorous expectations and time lines than did the original action plan. If performance does not improve after the second period, they are terminated without a severance pack- age. Individuals with a rating of 2 receive average to high salary increases, stock options, and bonuses. Individuals receiving the highest rating of 1 receive the highest salary increases, stock options, and bonuses. These individuals are also treated as “high potential” employees and given extra development opportunities by their managers. The company also makes significant efforts to retain all individuals who receive a rating of 1.

Looking to the future, Network Solutions plans to continue reinforcing the needed cultural change to support forced distribution ratings. HR Centers of Expertise of Network Solutions continue to educate employees about the system to ensure that they understand that Network Solutions still rewards good performance; they are just measuring it in a different way than in the past. There is also a plan to monitor for and correct any unproductive practices and implement correcting policies and practices. To do this, Network Solutions plans on continued checks with all stakeholders to ensure that the performance management system is serving its intended purpose.

Consider Network Solutions’ performance manage- ment system in light of what we discussed as an ideal system. Then answer the following questions:

1. Overall, what is the overlap between Network Solutions’ system and an ideal system?

2. What are the features of the system implemented at Network Solutions that correspond to the features described in the chapter as ideal characteristics? Which of the ideal characteristics are missing? For which of the ideal characteristics do we need additional information to evaluate whether they are part of the system at Network Solutions?

3. Based on the description of the system at Network Solutions, what do you anticipate will be some advantages and positive outcomes resulting from the implementation of the system?

4. Based on the description of the system at Network Solutions, what do you anticipate will be some disadvantages and negative outcomes resulting from the implementation of the system?

 

 

Reference,

Aguinis, H. (2013). Performance management (3rd ed.). Upper Saddle, NJ: Prentice Hall. ISBN-13: 9780132556385

 

 

 

 

 

 

Requirements:

In one page:

Identifying or predicting positive and negative outcomes at Network Solutions, Inc.

 

may be aided by the information on page 22 of the text where the author identifies the characteristics of an ideal performance management system (PMS).

 

For this discussion, read Case Study 1-2: Performance Management at Network Solutions, Inc. on pages 31-32 in your textbook.

 

What do you think will be some of the advantages or positive outcomes resulting from the implementation of the system?

 

What do you anticipate will be some of the disadvantages or negative outcomes? Why?

 

 

 

Information from the book need to be addressed in the paper:

Acceptability and fairness. A good system is acceptable and is perceived as fair by all participants. Perceptions of fairness are subjective and the only way to know if a system is seen as fair is to ask the participants about the system. Such perceptions include four distinct components. First, we can ask about distributive justice, which includes perceptions of the performance evaluation received relative to the work performed, and perceptions of the rewards received relative to the evaluation received, particularly when the system is implemented across countries. For exam- ple, differences in perceptions may be found in comparing employees from more individualistic (e.g., United States) to more collectivistic (e.g., Korea) cultures.49 If a discrepancy is perceived between work and evaluation or between evaluation and rewards, then the system is likely to be seen as unfair.50 Second, we can ask about procedural justice, which includes perceptions of the procedures used to determine the ratings as well as the procedures used to link ratings with rewards. Third, we can assess perceptions regarding interpersonal justice, which refers to the quality of the design and implementation of the performance management system. For ex- ample, what are employees’ perceptions regarding how they are treated by their supervisors during the performance review meeting? Do they feel that supervisors are empathic and helpful? Finally, informational justice refers to fairness perceptions about performance expectations and goals, feedback received, and the information given to justify administrative decisions. For example, are explanations perceived to be honest, sincere, and logical? Because a good system is inherently discriminatory, some employees will receive ratings that are lower than those received by other employees. However, we should strive to develop systems that are regarded as fair from the distributive, procedural, interpersonal, and informational perspectives because each type of justice perception leads to different outcomes.51 For example, a perception that the system is not fair from a distributive point of view is likely to lead to a poor relationship between employee and supervisor and lowered satisfaction of the employee with the supervisor. On the other hand, a perception that the system is unfair from a procedural point of view is likely to lead to de- creased employee commitment toward the organization and increased intentions to leave.52 One way to improve all four justice dimensions is to set clear rules that are applied consistently by all supervisors.

• Inclusiveness. Good systems include input from multiple sources on an ongoing basis. First, the evaluation process must represent the concerns of all the people who will be affected by the outcome. Consequently, employees must participate in the process of creating the system by providing input regarding what behaviors or results will be measured and how. This is particularly important in today’s diverse and global organizations including individuals from different cultural backgrounds, which may lead to different views regarding what is performance and how it should be measured.53 Second, input about employee performance should be gathered from the employees themselves before the appraisal meeting.54 In short, all participants must be given a voice in the process of designing and implementing the system. Such inclusive systems are likely to lead to more successful systems including less employee resistance, improved performance, and fewer legal challenges

Openness. Good systems have no secrets. First, performance is evaluated frequently and performance feedback is provided on an ongoing basis. Therefore, employees are continually informed of the quality of their performance. Second, the appraisal meeting consists of a two-way communication process during which information is exchanged, not delivered from the supervisor to the employee without his or her input. Third, standards should be clear and communicated on an ongoing basis. Finally, communications are factual, open, and honest.

• Correctability. The process of assigning ratings should minimize subjective aspects; however, it is virtually impossible to create a system that is completely objective because human judgment is an important component of the evaluation process. When employees perceive an error has been made, there should be a mechanism through which this error can be corrected. Establishing an appeals process, through which employees can challenge what may be unjust decisions, is an important aspect of a good performance management system.

• Standardization. As noted earlier, good systems are standardized. This means that performance is evaluated consistently across people and time. To achieve this goal, the ongoing training of the individuals in charge of appraisals, usually man- agers, is a must.

• Ethicality. Good systems comply with ethical standards. This means that the supervisor suppresses her personal self-interest in providing evaluations. In addition, the supervisor evaluates only performance dimensions for which she has sufficient information, and the privacy of the employee is respected.56

Table 1.5 lists the characteristics of an ideal performance management system. Think about the performance management system implemented in your organization or the last organization for which you worked. Which of the features listed in Table 1.5 included in the system you are considering? How far is your system from the ideal?

TABLE 1.5 Characteristics of an Ideal Performance Management System

Strategic congruence

Context congruence

Thoroughness

Practicality

Meaningfulness

Specificity

Identification of effective and ineffective performance

Reliability

Validity

Acceptability and fairness

Inclusiveness

Openness

Correctability

Standardization

Ethicality

Case Study 1-2CASE STUDY 1-2

Performance Management at Network Solutions, Inc.

 

 

 

Network Solutions, Inc., is a worldwide leader in hardware, software, and services essential to computer networking. Until recently, Network Solutions, Inc., used more than 50 different systems to measure performance within the company, many employees did not receive a review, fewer than 5% of all em- ployees received the lowest category of rating, and there was no recognition program in place to reward high achievers. Overall, it was recognized that performance problems were not being addressed, and tough pressure from competitors was increasing the costs of managing human performance ineffectively. In addition, quality initiatives were driving change in several areas of the business, and Network Solutions decided that these initiatives should also apply to “people quality.” Finally, Network Solutions wanted to improve its ability to meet its organizational goals and realized that one way of doing this would be to ensure that they were linked to each employee’s goals.

Given this situation, in 2001, Network Solutions’ CEO announced that he wanted to implement a forced distribution performance management system in which a set percentage of employees were classified in each of several categories (e.g., a rating of 1 to the top 20% of performers; a rating of 2 to the middle 70% of performers; and a rating of 3 to the bot- tom 10% of performers). A global cross-divisional HR team was put in place to design and implement the new system. The first task for the design team was to build a business case of the new system by showing that if organizational strategy was carried down to team contributions and team contribu- tions were translated into individual goals, then business goals would be met. Initially the program was rolled out as a year-round people management system that would raise the bar on performance management at Network Solutions by aligning individual performance objectives with organizational goals by focusing on the development of all employees. The desired outcomes of the new system included raising the performance level of all employees, identifying and retaining top talent, and identifying low performers and improving their performance. Network Solutions also wanted the performance expectations for all employees to be clear.

Before implementing the program, the design team received the support of senior leadership by communicating that the performance management system was the future of Network Solutions and by encouraging all senior leaders to ensure that those reporting directly to them understood the process and accepted it. In addition, they encouraged senior leaders to use the system with all of their direct subordinates and to demand and utilize output from the new system. Next, the design team encouraged the senior leaders to stop the development and use of any other performance management system and explained the need for standardization of performance management across all divisions. Finally, the team asked senior leaders to promote the new program by involving employees in training of talent management and by assessing any needs in their divisions that would not be addressed by the new system. The Network Solutions global performance management cycle consisted of the following process:

1. Goal cascading and team building 


2. Performance planning 


3. Development planning 


4. Ongoing discussions and updates between managers 
and employees 


5. Annual performance summary 


 

Training resources were made available on Network 
Solutions’ intranet for managers and individual contributors, including access to all necessary forms. In addition to the training available on the intranet, 1- to 2-hour conference calls took place before each phase of the program was begun.

Today, part of the training associated with the performance management system revolves around the idea that the development planning phase of the system is the joint year- round responsibility of managers and employees. Managers are responsible for scheduling meetings, guiding employees on preparing for meetings, and finalizing all development plans. Individual contributors are responsible for documenting the developmental plans. Both managers and employees are responsible for preparing for the meeting, filling out the development planning preparation forms, and attending the meeting.

With forced distribution systems, there is a set number of employees that have to fall into set rating classifications. As noted, in the Network Solutions system employees are given a rating of 1, 2, or 3. Individual ratings are determined by the execution of annual objectives and job requirements as well as by a comparison rating of others at a similar level at Network Solutions. Employees receiving a 3, the lowest rating, have a specified time period to improve their performance. If their performance does improve, then they are released from the plan, but they are not eligible for stock options or salary increases. If performance does not improve, they can take a severance package and leave the company or they can start on a performance improvement plan, which has more rigorous expectations and time lines than did the original action plan. If performance does not improve after the second period, they are terminated without a severance pack- age. Individuals with a rating of 2 receive average to high salary increases, stock options, and bonuses. Individuals receiving the highest rating of 1 receive the highest salary increases, stock options, and bonuses. These individuals are also treated as “high potential” employees and given extra development opportunities by their managers. The company also makes significant efforts to retain all individuals who receive a rating of 1.

Looking to the future, Network Solutions plans to continue reinforcing the needed cultural change to support forced distribution ratings. HR Centers of Expertise of Network Solutions continue to educate employees about the system to ensure that they understand that Network Solutions still rewards good performance; they are just measuring it in a different way than in the past. There is also a plan to monitor for and correct any unproductive practices and implement correcting policies and practices. To do this, Network Solutions plans on continued checks with all stakeholders to ensure that the performance management system is serving its intended purpose.

Consider Network Solutions’ performance manage- ment system in light of what we discussed as an ideal system. Then answer the following questions:

1. Overall, what is the overlap between Network Solutions’ system and an ideal system?

2. What are the features of the system implemented at Network Solutions that correspond to the features described in the chapter as ideal characteristics? Which of the ideal characteristics are missing? For which of the ideal characteristics do we need additional information to evaluate whether they are part of the system at Network Solutions?

3. Based on the description of the system at Network Solutions, what do you anticipate will be some advantages and positive outcomes resulting from the implementation of the system?

4. Based on the description of the system at Network Solutions, what do you anticipate will be some disadvantages and negative outcomes resulting from the implementation of the system?

 

 

Reference,

Aguinis, H. (2013). Performance management (3rd ed.). Upper Saddle, NJ: Prentice Hall. ISBN-13: 9780132556385

 

 

 

 

 

 

Requirements:

In one page:

Identifying or predicting positive and negative outcomes at Network Solutions, Inc.

 

may be aided by the information on page 22 of the text where the author identifies the characteristics of an ideal performance management system (PMS).

 

For this discussion, read Case Study 1-2: Performance Management at Network Solutions, Inc. on pages 31-32 in your textbook.

 

What do you think will be some of the advantages or positive outcomes resulting from the implementation of the system?

 

What do you anticipate will be some of the disadvantages or negative outcomes? Why?

 

 

 

Information from the book need to be addressed in the paper:

Acceptability and fairness. A good system is acceptable and is perceived as fair by all participants. Perceptions of fairness are subjective and the only way to know if a system is seen as fair is to ask the participants about the system. Such perceptions include four distinct components. First, we can ask about distributive justice, which includes perceptions of the performance evaluation received relative to the work performed, and perceptions of the rewards received relative to the evaluation received, particularly when the system is implemented across countries. For exam- ple, differences in perceptions may be found in comparing employees from more individualistic (e.g., United States) to more collectivistic (e.g., Korea) cultures.49 If a discrepancy is perceived between work and evaluation or between evaluation and rewards, then the system is likely to be seen as unfair.50 Second, we can ask about procedural justice, which includes perceptions of the procedures used to determine the ratings as well as the procedures used to link ratings with rewards. Third, we can assess perceptions regarding interpersonal justice, which refers to the quality of the design and implementation of the performance management system. For ex- ample, what are employees’ perceptions regarding how they are treated by their supervisors during the performance review meeting? Do they feel that supervisors are empathic and helpful? Finally, informational justice refers to fairness perceptions about performance expectations and goals, feedback received, and the information given to justify administrative decisions. For example, are explanations perceived to be honest, sincere, and logical? Because a good system is inherently discriminatory, some employees will receive ratings that are lower than those received by other employees. However, we should strive to develop systems that are regarded as fair from the distributive, procedural, interpersonal, and informational perspectives because each type of justice perception leads to different outcomes.51 For example, a perception that the system is not fair from a distributive point of view is likely to lead to a poor relationship between employee and supervisor and lowered satisfaction of the employee with the supervisor. On the other hand, a perception that the system is unfair from a procedural point of view is likely to lead to de- creased employee commitment toward the organization and increased intentions to leave.52 One way to improve all four justice dimensions is to set clear rules that are applied consistently by all supervisors.

• Inclusiveness. Good systems include input from multiple sources on an ongoing basis. First, the evaluation process must represent the concerns of all the people who will be affected by the outcome. Consequently, employees must participate in the process of creating the system by providing input regarding what behaviors or results will be measured and how. This is particularly important in today’s diverse and global organizations including individuals from different cultural backgrounds, which may lead to different views regarding what is performance and how it should be measured.53 Second, input about employee performance should be gathered from the employees themselves before the appraisal meeting.54 In short, all participants must be given a voice in the process of designing and implementing the system. Such inclusive systems are likely to lead to more successful systems including less employee resistance, improved performance, and fewer legal challenges

Openness. Good systems have no secrets. First, performance is evaluated frequently and performance feedback is provided on an ongoing basis. Therefore, employees are continually informed of the quality of their performance. Second, the appraisal meeting consists of a two-way communication process during which information is exchanged, not delivered from the supervisor to the employee without his or her input. Third, standards should be clear and communicated on an ongoing basis. Finally, communications are factual, open, and honest.

• Correctability. The process of assigning ratings should minimize subjective aspects; however, it is virtually impossible to create a system that is completely objective because human judgment is an important component of the evaluation process. When employees perceive an error has been made, there should be a mechanism through which this error can be corrected. Establishing an appeals process, through which employees can challenge what may be unjust decisions, is an important aspect of a good performance management system.

• Standardization. As noted earlier, good systems are standardized. This means that performance is evaluated consistently across people and time. To achieve this goal, the ongoing training of the individuals in charge of appraisals, usually man- agers, is a must.

• Ethicality. Good systems comply with ethical standards. This means that the supervisor suppresses her personal self-interest in providing evaluations. In addition, the supervisor evaluates only performance dimensions for which she has sufficient information, and the privacy of the employee is respected.56

Table 1.5 lists the characteristics of an ideal performance management system. Think about the performance management system implemented in your organization or the last organization for which you worked. Which of the features listed in Table 1.5 included in the system you are considering? How far is your system from the ideal?

TABLE 1.5 Characteristics of an Ideal Performance Management System

Strategic congruence

Context congruence

Thoroughness

Practicality

Meaningfulness

Specificity

Identification of effective and ineffective performance

Reliability

Validity

Acceptability and fairness

Inclusiveness

Openness

Correctability

Standardization

Ethicality

 
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0518_68_DS – Management Accounting

/in /by

UK College of Business and Computing

Marking Scheme

Unit Name MANAGEMENT ACCOUNTING (RQF)
Unit Level 4
Unit Code H/508/0489
Module Leader Khalid Karim

 

ASSESSMENT CRITERIA LEARNING OUTCOME ASSIGNMENT QUESTION  
Task 1

 

      
P1 LO1 Explanation of management accounting and the essential requirements of management accounting system which entails:

I. Distinguishing Management Accounting from Financial Accounting.

 

 This must start as a report format. You are to respond as an Apprentice or Trainee Management accountant. Provide an explanation or the rationale for having a management accounting system. A good definition of management accounting would cover the essential functions of management accounting. Then, distinguish management accounting from financial accounting by stating major differences and similarities between management accounting and financial accounting
    II. The importance of management accounting information as a decision-making tool for department managers.

 

 Provide a definition of information as being processed data and link this to management accounting informational as being management accounting data processed for decision making. Explain management accounting tools and provide examples. Benefits of management accounting tools in the review of product performance; make or buy decision; contract costing; pricing decisions should be discussed
    III. Cost accounting systems (actual, normal and standard costing)

 

 Provide definitions and examples of Actual, Normal, Standard costing
    IV. Inventory management systems

 

 Provide an explanation of Inventory management systems LIFO; FIFO & AVCO
    V. Job costing systems. Provide an explanation of Job costing systems such as Batch Costing; Contract costing; Process Costing; and Service costing
P2 LO1 Presenting financial information.

I. Different types of managerial accounting reports

II. Why it is important for the information to be presented in manner that must be understandable.

 A learner is expected to;

· Provide an explanation of managerial accounting reports different types of managerial accounting reports. Examples such as Scheduled report; Exception report; Demand report etc.

· Explain why it is important for information presented to management to be in a format that can easily understood
M1 LO1 To achieve M1 You will need to build on P1 & P2 to evaluate the benefits of management accounting systems and their application within the context of Tech (UK) Limited. For example-

· Highlight the benefits a company like Tech (UK) will enjoy by using different management accounting systems that s/he has mentioned in P1.

 
D1 LO1 To achieve D1. You will need to develop M1 to include critically evaluation of how management accounting systems and management accounting reporting is integrated within organisational processes :

· Emphasise more on critical review on HOW, management accounting systems and management accounting reporting is integrated within the system.

· Learners should find points in favour and against the integration itself.
Task 2      
P3 LO2 You are required to prepare income statements for the month of September (based on the example given in the assignment brief) using;

I. absorption costing and

II. marginal costing methods

 Learners are expected to;

· This is a pure mathematical problem. However, not necessarily all the learners should have the same answer, but the process and steps of the calculation should be assessed to get a pass.

· You will need to show calculation of profits using Absorption costing method

· You will need to show calculation of profits using Marginal costing method
M2 LO2 To achieve M2 In addition to calculation of profits using both methods in P3 you will need to accurately reconcile the profits for both methods to produce appropriate financial reporting document.

 
D2 LO2 To achieve D2 you will need to accurate apply and interpret the data for the business activities. To achieve D2 you will need to accurate apply and interpret the data for the business activities.
Task 3      
P4 LO3 In your report you should cover;

a) Different kinds of budgets and their advantages and disadvantages

b) The budget preparation process including determination of pricing and different costing systems that can be used.

c) The importance of budget as a tool for planning and control purposes.

 Learners are expected to;

· Learners should provide different types of budgeting systems such as; roll over budget, static budget, cash flow budget etc. The advantages and disadvantages of each types of budget need to be added.

· Process of budgeting needs to be added. A list of processes will be better but not essential.

· Learners should explain pricing strategies based on MA not marketing pricing strategies.

 
M3 LO3 To achieve M3 You will need to analyse the use of the different planning tools and their application for preparing and forecasting budgets.

Example of planning tools can include PEST, SWOT, Balance scorecard, Porter’s five forces analysis to financial position of Tech Ltd.

 
D3 LO3 To achieve D3 You will need to evaluate how planning tools for accounting respond appropriately to solving financial problems to lead to sustainable success.;

· Evaluate planning tools that has mentioned in M3 and highlight HOW these will solve financial problems.
Task 4      
P5 LO4

 

 Referring to Tech’s current financial situation, explain ways by which the Balanced Scorecard approach suggested by the auditors can be used to respond its financial problem and compare this approach to another management accounting approach used in another organisation of your choice. You must provide relevant financial information about the other organisation you have selected for comparison. A learner is expected to;

· Define Balance Score Card.

· Learners should provide thorough analysis of Balance Score Card which will lead to identifying and responding to the financial problems. Learners should link the answer with Tech (UK).

· Suggestions around financial perspective such as use of ratios to analyse financial performance will be a strong answer.

· Learners should be able to write how this BSC can be used to improve the financial governance and development strategies. Learners should have a clear idea about BSC so that they can relate it to the financial governance for the company.

· Utilising input from all the four perspectives giving examples will be a good answer.
M4 LO4

 

 To achieve M4 You will need to analyse how, in responding to financial problems, management accounting can lead organisations to sustainable success.

· Analyse the link between solving financial problems through management accounting for sustainable success.

 
D3 LO4 To achieve D3 You will need to evaluate how planning tools for accounting respond appropriately to solving financial problems to lead to sustainable success.

· Evaluate the usage of planning tools for organisational success.
 
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Organizational Comm For Leaders

/in /by

MINI-ASSIGNMENT #1: The Pillow Method

The Pillow Method was developed by a group of Japanese school children; the pillow method gets its name from the fact that a problem has four sides and middle, just like a pillow.

image1

Position 1–I’m right and you’re wrong

This is the perspective that we usually take when viewing an issue. We immediately see the virtues in our position and find fault with anyone who happens to disagree with us.

Position 2–You’re right and I’m wrong

At this point you switch perspectives and build the strongest possible arguments to explain how another person can view the issue differently from you. Besides identifying the strengths in the other’s position, this is the time to play the devil’s advocate and find flaws in yours.

The goal of position 2 is to find some way of comprehending how anyone could think or behave in a way that you originally found hard to understand.

Position 3–We’re both right, both wrong

From this position you acknowledge the strengths and weaknesses of each person’s arguments. Taking a more evenhanded look at the issue can lead you to be less critical and more understanding of another’s point of view.

The perspective of position 3 should help you see that the issue isn’t as much a matter of complete right and wrong as it first appeared to be.

Position 4–This issue isn’t as important as it seems

This is where you pick and choose your battles. Of course, some things you can just let go. If the issue is really important to you, you should openly discuss it with the other person. Just keep in mind that the importance of a dispute can fade when you realize that it may not be as important as you originally thought.

Position 5–There is truth in all four perspectives

After completing the first four positions, a final step is to recognize that each of them has some merit. It is almost certain that you will gain new insights. These insights may not cause you to change your mind or even solve the problem, but they can increase your tolerance for the other person’s position and thus improve the communication climate.

Written Assignment: Shifting Perspectives: The Pillow Method

Select a disagreement that may be affecting a relationship at home or work. Record enough background information for an outsider to understand the issue. Who is involved? How long has the disagreement been going on? What are the basic issues involved? Describe the issue from each of the four positions listed below. Record your conclusions at the end of the exercise.

Background Information

Position 1: Explain how you are right and the other person is wrong.

Position 2: Explain how the other person’s position is correct, or at least understandable.

Position 3: Show that there are both correct (or understandable) and mistaken (or unreasonable) parts of both positions.

Position 4: Describe at least two ways in which the elements developed in positions 1-3 might affect your relationship. Describe at least one way in which the issue might be seen as more important than it was originally.

Conclusion: Explain how there is some truth in each of the preceding positions. Also explain how viewing the issue from each side has changed your perception of the issue and how it may change your behavior in the future. Explain how this issue and your understanding of it may affect your relationship.

 
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