Complete Assignment - RESEARCH, ANALYZE AND DOCUMENT RESOURCE REQUIREMENTS AND DEVELOP AN OPERATIONAL PDF

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TOPIC 11An Operational Plan is used to provide a clear picture of how a team, section or department of a business will contribute to the achievement of their organisation's strategic goals. The Operational Plan should align with the strategic plan of the organisation and should correlate with the ov...

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TOPIC 1 1 An Operational Plan is used to provide a clear picture of how a team, section or department of a business will contribute to the achievement of their organisation's strategic goals. The Operational Plan should align with the strategic plan of the organisation and should correlate with the overall objectives of the organisation. Operational plans are used to identify: •

The goals of the team, section or department

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How the goals will be achieved

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What resources are required to meet the goals

The Operational Plan can be subdivided into two basic forms which include the single use plan and the standing plans. A single-use plan is developed to carry out a course of action that is not likely to be repeated in the future. These plans are used once to achieve unique objectives for the business. The standing plan is developed for activities that occur repeatedly over a period of time in order for the business to help solve repetitive problems. Although there are no strict rules that relate to the format of an Operational Plan, they will normally contain the following information: •

Specific goals

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Actions required to achieve goals

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Human resources required

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Physical resources required

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Budget required

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An indication of how long goals will take to achieve

A Gantt chart, commonly used in project management, is one of the most popular and useful ways of showing activities (tasks or events) displayed against time. On the left of the chart is a list of the activities and along the top is a suitable time scale. Each activity is represented by a bar; the position and length of the bar reflects the start date, duration and end date of the activity. Resources are what your business uses to produce goods or perform services for your customers. There are many types of resources that a business will use and they will be categorised into two groups as 'physical' and 'human' resources. Physical resources Premises

Rent; rates; service costs (heating, lighting, cleaning, security) and structural alterations

Equipment

Costs of purchase, hire or lease; insurance, running costs (service, repair)

Vehicles

Costs of purchase, hire or lease; insurance, road tax; running costs (service, repair)

Raw Materials

Purchase cost (investigate discount for bulk orders), cost of storage (any special requirements for refrigeration or hazardous substances)

Human resources Human resources are your staff. They are the gears that drive the business and keep it running. And just like with gears they need to be oiled and maintained, which, in this case, means a wage. The majority of your expenditure for staffing will be wages and workplace insurance contributions. You can work out how much capital you will need to finance the operational plan by finding out your physical and human resource requirements. Capital is broken down into 2 categories: •

Fixed capital – 'One-off' payments to purchase physical resources like vehicles, equipment, office furniture, computers and telephone systems; items that will last for a long time and rarely need replacing.

•

Working capital – These are the expenses that your business will incur whilst attempting to make a profit. These are used for things such as wages, bills, etc.

This projection should be performed on a month-by-month basis. You will also need to take into account that some costs will be the same each month while others will vary. The success of your business depends above all on your ability to juggle your resources effectively, so it's essential to get this right. When developing an operational plan, it is important to consider the legislative and regulatory context relevant to the operational plan. The term ‘legislation’ refers to the laws a society agrees will govern it. ‘Regulations’ explain how to apply complex legislation in your day-to-day work context. It is essential that organisations comply with the legislation and regulations that apply to them – if they do not, significant professional, civil or even criminal repercussions may result. Depending on the type of operational plan you are developing, the nature of your organisation and the State/Territory in which you are working, there may be a variety of legislations and regulations to consider. •

Financial management acts

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Anti discrimination legislation

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Occupational health and safety (OHS)

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Consumer legislation

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Environment legislation

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Fraud control standards

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Privacy, confidentiality and disclosure

It is essential that you are familiar your organisation’s policies and procedures. These are important because they explain how to apply legislative, regulatory and organisational requirements in your day-to-day work, relevant to your work context: •

A policy is a written statement which explains why workers within an organisation should undertake a task in a certain way

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A procedure is a written statement which explains how workers within an organisation should undertake the task

2

The consultation process is an extremely important concept in the context of managing an organisation. Consultation is the process by which the management of an organisation aim to better understand the needs, wants and expectations of its stakeholders. Consultation with the organisation and its stakeholders can be conducted through management of open communication channels between the two parties. These can be formal or informal. These formal and informal communication channels might include: •

Open meetings - stakeholders are invited to attend one or more open meetings

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Surveys – management can request a survey (paper or online type) to be completed

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Focus group –similar to open meetings, however, the number of participants is smaller

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Invitation to send a written response - stakeholders are invited to submit comments in writing on a proposal or plan

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Informal meetings - organisation management might mingle with people at an event and canvass certain ideas and see what response they get

The purpose of consultation is three-fold: •

To procure information on the wants, needs and expectations of the stakeholders

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To invite stakeholders to comment on plans that have been created by organisation management that directly affect them

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To quell any criticism towards organisation management about not taking account of, or not listening to the needs of stakeholders in developing strategic and operational plans

3 Key Performance Indicators (KPI), or Key Success Indicators (KSI), are designed to assist an organisation define and measure its progress toward organisational goals. Implementing these Key Performance Indicators will occur after the organisation has analysed and identified its mission, stakeholders and goals. KPIs are significant measurements that reflect and establish the critical success factors of an organisation. Key Performance Indicators allow you to ensure that you are reaching your overall business goals and objectives. There are eight areas of a business organisation in which performance and results should be set and reported, these are: • Market standing • Innovation • Productivity • Use of resources • Profitability • Performance and development of managers • Performance and attitude of employees • Public responsibility

Each of these broad areas would have a number of key performance indicators which would be designed to ensure the organisation meets its objectives and that day to day operations are conducted to achieve this aim. There are a number of approaches to developing KPIs and some suggestions appear below. • Statutory & Regulatory • Lifecycle • Risk • Causes • Levels

4 A contingency plan is a plan devised for an outcome other than in the usual, expected plan. A few unusual states are listed below. RISK MANAGEMENT Risk management is concerned with how each organisation deals with its risks. An organisation which has formal risk management approaches would incorporate them into its strategic and operational plans. Such an approach may include the following: •

Identification of the broad areas of risk faced by the organisation

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The development of a risk management plan and documentation

CHANGED IN FUNDING The management of the organisation’s operational plans can be affected by funding changes including: •

Refinancing arrangements

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Sale of assets and leasing them back

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Factoring

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Obtaining new lines of credit

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Acquiring assets on hire purchase

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Leasing

DISASTER RECOVERY Businesses may suffer disruptions to operations following some form of disaster, natural or otherwise, as well as other problems such as power failures. Organisations should plan to cope with these sorts of incidents and have disaster recovery procedures in place to minimise the disruption. These procedures may include: •

Availability and use of alternative premises

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Sources of equipment and ability to acquire these at short notice

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Use of backup data stored offsite

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Redirection of telephone and fax lines

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Obtaining new stationery/documentation

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Notification to customers, suppliers and other relevant parties of any changes that have occurred in regards to normal operation

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Backup suppliers and services if main sources become unavailable

Contingency planning challenges There are two common obstacles that you should be aware as you begin your contingency planning process. These are: •

Due to such a strong, emotional investment and desire to see it succeed, with their Plan A, many people will be reluctant to develop a strong Plan B

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Because of the low chance of a disaster actually occurring many people will procrastinate when it comes to contingency planning and push it to the bottom of task lists

Developing the plan Here are some general guidelines to follow that will assist you when you are preparing your organisation’s contingency plan: •

Your main goal is to maintain business operations

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Define time periods

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Identify the trigger

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Keep the plan simple

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Consider related resource

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Identify everyone's needs

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Define 'success'

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Include contingency plans in standard operating procedures

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Manage your risks – Look for opportunities to reduce risk

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Identify operational inefficiencies

Maintaining the plan As your business grows and changes, you'll need to review and update your contingency plans accordingly. You will need to keep the document updated and relevant. Here are some key steps in the contingency plan maintenance process: •

Communicate the plan to everyone in the organisation

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Inform people of their roles and responsibilities related to the plan

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Provide necessary training for people to fulfil these roles and responsibilities

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Conduct disaster drills where practical

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Assess the results of training and drills, and make any necessary changes

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Review the plan on a regular basis

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Distribute revised plans throughout the company and make sure that old plans are discarded

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Keep copies of the plan off-site, and in a place where they can be accessed quickly

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Audit the plan periodically

5 You may need to consult with relevant personnel, colleagues and specialist resource managers to identify the needs of the work environment that you are concerned with. To identify the resources required, you might: • Review similar projects and understand resources used • Estimate time required based on your personal experience • Use external resources for information • Research any constraints on available resources You might involve the following people to help them identify resources: • Internal specialists including HR, purchasing, OHS, finance, etc. • Other managers or supervisors affected by the proposal • Team members In any case, you will need to develop and present proposals that are professional and comprehensive in order to meet the resource requirements of the business.

6 You will need to have your plan approved by the appropriate person/people. Relevant parties involved in obtaining approval for an operational plan can be as followed: • Stakeholders • Management • Work team You must first obtain the approval of your team or the team members involved in implementing and executing the operational plan. This is a vital step as without their input and approval the operational plan may have a higher chance of failure. You should review any and all suggestions from all parties involved in the implementation of the plan before applying for approval from executive management. The personnel who are responsible for the formulation of a plan must consult with all persons/stakeholders who will be affected by said plan.

TOPIC 2 1 Recruiting and selecting the right staff to perform the activities within your operational plan is crucial to the successful implementation of the operational plan. You will need to check

your workplace policies and procedures to identify whether there are specific procedures and policies that you are required to follow. Your organisation will have developed policies and procedures that are designed to ensure that the best candidate is selected and that relevant legislation is complied with. It is unlawful to discriminate against an individual on the grounds of: • Age • Disability • Marital status • Nationality, race, colour, ethnic background • Parental status • Pregnancy/potential pregnancy • Religion • Sexuality/sexual preference The first step in the recruitment process is to gain approval for the new position. Approval may need to be sought from your senior manager or the Human Resources Manager. You will need to refer to the Job Description for the position that you are recruiting for and assess whether it accurately describes the role, responsibility and authority of the position. A wellwritten job description should include the following information: • Duties and tasks expected to be performed. • Standard of performance expected. • Reporting arrangements for the position The Human Resources team will usually have responsibility for placing an advertisement to attract candidates. It is essential that the advertisement is designed to attract suitable candidates and is free from any discriminatory language. The advertisement will typically require candidates to forward a job application which describes their: • Work background and experience • Personal qualities and skills • Special skills and or knowledge • Formal educational qualifications or work certifications Increasingly, job advertisements are posted online. Vacancies may also be advertised in national or local newspapers or through one of the many internet career websites. Human resource requirements need to be analysed to determine what is required in the way of quality, quantity, time when needed and cost. Each resource also needs to be researched to find the best source. Human resource sources may include: Consultants, Head-hunters, Universities/colleges and Professional bodies. The Human Resources team may have developed a bank of questions and pre-screening processes that you may be able to use. Many organisations now conduct telephone interviews to cull applicants and then only invite a short-list of candidates to attend a face-to-face interview. You will also need to comply with your organisation's requirements in terms of the format of the job interview. This format helps to ensure that the interview is free of bias and

discrimination and brings a greater experience to bear on the process of selecting the successful candidate. You will need to confer with members of the panel to prepare questions and specimen answers so that each panel member can openly judge the applicant's responses and attributes for the position. These questions must: •

Refer only to the specific requirements of the position

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Be presented to each candidate for response

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Be designed to ensure that any bias cannot be implied

Various styles of questions may be used. Unless you specifically want the candidate to answer yes or no make sure you ask open ended questions Induction training may last for a number of days but a typical checklist for the first day of work might include the following: •

Welcome

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Confirm hours of work, leave, medical, sickness and breaks

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Confirm wage and superannuation arrangements

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Review job description

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Introduction to other staff

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Outline the job and how it fits into the team/department

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Physical tour of work environment

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Employee workstation supplies and equipment

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Emergency procedures

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Signing of documents such as confidentiality, tax, contracts

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Evaluation of the induction program

2 and 3 Organisations use resources to achieve their objectives. There are many types of resources and not all organisations use all of them. There are 7 types of resources to utilise, as follows: Physical resources Land, buildings, equipment and stock comprise the physical resources of a business which need to be used properly in the management of operational plans. Stock to the manufacturer comprises raw materials, work in progress being the part complete production and finished goods awaiting sale. Stock control necessitates having the correct levels of raw material on hand so that production is not interrupted but not having too much so that money is being tied up unnecessarily and where wastage may arise due to damage, loss or other problem. Production processes should ensure as little wastage as possible. Financial resources Financial resources need to be planned carefully and managed on a day to day basis. Paying too much for other resources such as raw materials, stock and equipment or wasting resources will cause a drain on existing financial resources and other sources of finance may not be available. Some organisations may also lose money by extending credit to customers without carrying out adequate credit checks on the customer. Policies such as obtaining personal or

director guarantees may also need to be implemented and the debt recovery process should work including the use of debt collection agents or solicitors if necessary. Time Time is a form of the resource; doing things late or at the wrong time may be a total waste for an organization. The following aspects may have a detrimental impact on the use of time if not handled correctly: • No follow-up procedures • Number and type of customer complaints • Telephone interruptions • Mee...