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Task 01: Communicate organisational mission and goals (Written Report and Presentation)
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 report & power point presentation slides with any required evidence attached. See specifications below for details.
You must submit both printed copy and soft copy of your answers in a word document.
Submit the printed copy of required evidences (your answers) to your Trainer with the “Assessment Cover Sheet” (Filled out and signed appropriately) attached on top of your documents.
Upload the softcopy on the link provide in the eLearning site.
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.
Word limit: Word limit for answering this task is minimum 500 words
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Assessment description
Using the workplace scenario information provided, you will address expectations of an organisation to investigate incidents in accordance with legal and organisational requirements. You will also address expectations to communicate organisational mission and goals to internal stakeholders.
Procedure
1. Review the simulated business documentation, including policies and procedures, in the Appendix 1
‘Max Lionel Realty’. Review templates contained in Appendix 2 ‘Templates’ for possible use or
adaptation in completing assessment task requirements.
2. Review the information in Scenario 1 below and fill out an incident report in connection with the WHS
incident. Complete a risk assessment based on the information provided by the HR Manager. Update
the organisational risk register.
3. Review the information in Scenario 2 below and prepare a presentation on the managers’ WHS
responsibilities. Ensure you:
○ explain the organisation’s mission, values and strategic directions
○ explain the link between the organisation’s objectives, standards, relevant legislation and the
responsibilities of managers and agents for a safe workplace
○ state expectations of managers in a way designed to build commitment and support by
managers; use persuasive language and deploy an appropriate leadership style
○ use appropriate media to achieve objectives of presentation.
4. Deliver presentation.
5. Submit documentation as per specifications below.
Scenario 1
You are the Operations General Manager at Max Lionel Realty (MLR). You are responsible for the day-to-day running of the company. You oversee the coordination of activities that occur within the Residential, Commercial, and Investments branches of the company. You are responsible for overseeing projects which affect operations of the organisation as a whole. You work with the HR manager to coordinate systems and projects to achieve cooperation and coordination across the company.
WHS Incident
A WHS incident recently occurred at the Commercial office of Max Lionel Realty. Although it is the Commercial Manager’s responsibility to investigate WHS incidents, they have not done so. You decide to step in. In accordance with the recently implemented WHS management system you must:
investigate incidents
complete an incident report
perform risk assessment
update risk register.
The records you create of the incident need to be submitted to the HR Manager (assessor) for storage as per records management policy.
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Details of the incident
Last Wednesday, a client, who was running late decided to leave through the emergency exit and stairwell, falling and breaking her wrist.
The exit door was blocked by boxes of paper.
One of the agents heard calls for help, managed to open the exit and help the client.
Not realising what had happened, or the seriousness of the accident, the agent criticised the client’s high heels, implying that such a thing would never happen to a man. ‘Any sensible woman would take the lift’.
The client was humiliated.
The client was taken to the Royal Women’s Hospital by ambulance.
She is threatening to sue MLR for injuries, loss of income and mental trauma.
Another agent noticed a strange odour and an oily substance on the stairwell.
This agent reported the incident verbally to the Commercial Realty Manager.
This incident has only just become known to the HR manager, who has been contacted by both the client’s lawyer and the Office of the Human Rights Ombudsman.
Several incidents in which managers have failed to undertake WHS management system responsibilities have occurred recently. For example, record-keeping has been incomplete.
Consultation with agents, WHS committee meetings not occurred.
The organisation’s original target was to reduce the number of WHS incidents by 25%; however, after initial success, enthusiasm for the system has worn off and incident rates are only just lower than they were when the system was initiated.
Scenario 2
You are the Operations General Manager at Max Lionel Realty. You have recently investigated a serious WHS incident.
You have determined that the incident may represent a systemic breakdown in compliance with the organisation’s WHS management system. This system has only recently been implemented and clearly the requisite practices have not been embedded.
Your legal and ethical responsibility is clear. You have a legal and ethical responsibility as a manager to minimise workplace hazards. Moreover, in accordance with organisational change management processes, you need to ensure organisational support by regularly reviewing compliance and acting immediately to intervene to ensure organisational objectives and minimise risk.
You need to ensure managers are aware of and comply with the following responsibilities under the WHS management system and WHS legislation:
consult with agents on WHS issues to continually identify any potential risks
regularly conduct WHS committee meetings to address risk across the organisation
regularly assess potential workplace hazards
act proactively to reduce risk
update the risk register.
You have decided to prepare a presentation to managers to ensure compliance.
Your objective is to ensure a smooth implementation of the WHS management system. Accordingly, you don’t want to single out or embarrass any one manager. Rather, you want to ensure enthusiastic support by underscoring the importance of implementation of the WHS management system with respect to Max Lionel’s mission and organisational goals.
You will need to ensure you demonstrate and support ethical attitudes and practices.
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Task Specifications
You must:
plan and deliver a presentation to managers (approx.. 10-15 slides)
submit:
o incident report, risk analysis and updated risk register (use the template provided)
o presentation notes, PowerPoint slides, etc.
Your assessor will be looking for:
interpersonal skills to communicate and inspire trust and confidence of others and to ensure their cooperation and support
risk management skills to analyse, identify and develop mitigation strategies for identified risks
knowledge of business ethics and their application
knowledge of leadership styles and their application
knowledge of legislation, codes and by laws relevant to the organisation’s operations
knowledge of organisation mission, purpose and values
knowledge of organisation objectives, plans and strategies
knowledge of organisational change processes.
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Appendix
Fast Track Couriers Pty Ltd
Task
It is the end of the 2011 financial year. You are an external change management consultant employed by Fast Track Couriers. You have been asked by the General Manager to prepare a report to identify opportunities and requirements for change for the organisation in the coming year.
You have been given some information about the organisation and the organisation’s strategic goals. Specific operational and human resources goals were developed to support the strategic goals.
The strategic goals were developed as a result of external market research indicating an opportunity for Fast Track Couriers to build market share in Sydney. The business has the opportunity to increase Sydney market share by 7.5% on the back increased efficiency and shorter delivery times from larger truck fleet and improved distribution systems.
You have also been given some information about employees and some background information regarding the organisation’s workforce relations.
Before submitting the final report, you will need to review your proposed changes with all relevant manager stakeholders. The General Manager is very concerned about identifying change requirements in close consultation with key management stakeholders within the organisation in order to ensure the least resistance to implementation.
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About Fast Track Couriers
Fast Track Couriers is a courier company that has been operating in New South Wales for the last 15 years. Its primary business function is delivering medium to large size packages across metropolitan Sydney.
Strategic plan goals
The organisation’s strategic goals are:
to expand business in the metropolitan area so that small to medium package deliveries market share increases by 7.5%
to develop an integrated approach to distribution management utilising technology such as PDA devices and GPS
to develop and maintain a cohesive and well-motivated workforce.
Strategic goals are supported by the following operational and human resources goals.
Operational plan goals
Testing of the distribution management system is to cease and allow implementation within the first quarter of the 2012 financial year.
The truck fleet will need to be expanded by 8 trucks within the 2012 financial year.
Human resources goals:
To incorporate a Human Resources function to facilitate the changes in workforce management in the first quarter of the 2012 financial year.
Introduce professional development and training to achieve organisational goals and promote understanding of organisation’s strategic goals in the first quarter of the 2012 financial year.
Eliminate industrial relations problems in the 2012 financial year. Conclude negotiations with employees and union.
Eliminate lifting injuries.
Employee profile
Fast Track Couriers employee the following people:
General manager (GM) – Generally on the road; never in office.
Chief financial officer (CFO) – Reports to GM and keeps office hours; 9–5, Mon–Fri.
Accountant – Reports to CFO and keeps office hours; 9–5, Mon–Fri.
Truck drivers (x20) – Report to office.
Office team manager – Reports to GM and keeps office hours; 9–5, Mon–Fri.
Office team members (x5) – Perform administrative, sales, customer relationship management duties. Monitor truck drivers and handle enquiries. Report to office team manager.
Head office employees
Covered under individual contracts.
Salary range $32,000–$75,000 annum.
Small team of mainly female employees, ranging in age.
Lots of opportunity to participate in learning and development programs due to management support; however little desire to participate.
High employee engagement scores. Employees cite team work and opportunities as motivating factors affecting the business success.
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Drivers
Covered by an award.
Salary $45,000 per annum.
Heavily unionised.
Employee demographics are all male employees aged 25–65.
Little opportunity to participate in learning and development programs due to being on the road; however, little to no interest to participate in development opportunities.
Large number of workplace injuries due to heavy lifting.
Low employee engagement scores. Drivers cite pay as an issue.
Currently experiencing low turnover.
History of industrial disputes regarding pay and previous change initiatives.
Background to workforce management and relations
The company communicates with employees via email for head office employees and a printed monthly newsletter for drivers. The company provides information regarding policies procedures through documented manuals that are held in each truck as an employee manual. Office-based staff can access copies of these manuals at the office.
All trucks are fitted with a GPS system to assist drivers with navigating to each pick up and drop off location. Trucks are also assigned a PDA that provides drivers with the details of each pick up and drop off and records when a job starts and finishes. The data from this device is sent back to head office to monitor job progress but is not used to complete productivity reporting. When this device was introduced, drivers were not happy as they felt the organisation was saying that it did not trust the drivers to manually record the time spent on each job. Many of the drivers also resented having to learn how to use the device and thought it was a waste of time.
Head office employees work very closely together and are a very cohesive and motivated team. They are positive about the organisation’s direction and respond well to change.
Drivers have historically reacted negatively to change. Change implemented in the past has met with resistance and was therefore difficult to implement. Drivers have in the past done their best to block any changes from being implemented, even going to the lengths of threatening strike action and having the union involved to assist with resolving the issue.
Fast Track Couriers currently allocates two drivers per truck to ensure that drivers are able to load and unload heavy packages. The strategy going forward is to remove the need for having two drivers per truck by installing an automatic lift gate on the back of each gate at a cost of $10,000 per truck. This will mean that only one driver is needed per truck as no heavy lifting will be required.
It is Fast Track Couriers intention to use these surplus drivers to drive the new trucks that will be purchased to enable the company to extend its services to regional NSW.
Drivers are currently happy with the work environment as they enjoy working as part of a two-man team. The organisation typically leaves the drivers alone and lets them do their job as this is what seems to make them happy. Management has tried in the past to have drivers participate in organisational activities. These activities were not received positively and the drivers complained and asked not to be involved. The drivers’ view is that their preferred team is their two-man driver team and they only see the benefits of that specific working arrangement. There is a high value placed on communication with trucking team members.
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Appendix 1 – Stimulated Business
Max Lionel Realty
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Table of Contents
Chapter 1 – Business plan (excerpt) ………………………………………………………………………………. 3
Chapter 2 – Organisational chart and management profiles …………………………………………….. 4
Chapter 3 – Management responsibilities………………………………………………………………………. 5
Chapter 4 – Budget summary ……………………………………………………………………………………….. 6
Chapter 5 – Operational plan ……………………………………………………………………………………….. 7
Chapter 6 – Operational risk register …………………………………………………………………………….. 9
Chapter 7 – Work Health and Safety (WHS) Policy…………………………………………………………. 10
Chapter 8 – Anti-discrimination policy …………………………………………………………………………. 12
Chapter 9 – Procurement policy and procedures …………………………………………………………… 13
Chapter 10 – Max Lionel Realty current tenants list ………………………………………………………. 18
Chapter 11 – List of pre-approved suppliers …………………………………………………………………. 19
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Chapter 1 – Business plan (excerpt)
From Max Lionel Realty business plan FY 2012/13
About Max Lionel Realty
Max Lionel Realty (MLR) was founded in 2008 by property developer Max Lionel. The company currently employs approximately 100 people, 80 of whom are licensed real estate agents.
Through its client agents, the organisation manages property sales and rentals (both residential and commercial) on behalf of a range of clients. The organisation also separately engages in investment activities, such as property and land development.
Max Lionel Realty has been a member of the Real Estate Institute of Victoria (REIV) since 2008 and proudly follows the REIV Code of Conduct.
Mission:
to achieve the highest returns for our clients and to deliver a client experience that is second to none in the industry.
Vision:
to establish, within five years, the MLR brand — the highest ethical standards with best-in-breed performance for clients.
Values:
integrity
client-focus
active encouragement of excellence, innovation and continuous improvement
teamwork
recognition of the diversity and expertise of MLR employees and agents.
Strategic directions:
The strategic context in which Max Lionel Realty will achieve its mission and vision is through:
engaging with customers and clients
building goodwill and reputation for integrity
supporting innovative thinking, management and leadership skills.
creating a high-performing, highly profitable organisation.
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Chapter 2 – Organisational chart and management profiles
Max Lionel Realty organisational chart
Board of Directors and CEO
Max Lionel
Chief Financial Officer
Riz Mehra
Operations General Manager
Kim Sweeney
Human Resources Manager
Les Goodale
Manager Residential Realty
(Sales and Rentals)
Sam Lee
Manager Commercial Realty (Sales and Rentals)
Pat Mifsud
Manager Investments
Peter Mitchell
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Chapter 3 – Management responsibilities
Max Lionel, CEO
Max is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions.
Riz Mehra, Chief Financial Officer
Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz Is also responsible for overseeing budgets for cost centres and individual projects. At the completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections.
Kim Sweeney, Operations General Manager
Kim is responsible for the day-to-day running of the company. Kim oversees the coordination, as well as the structural separation, of the Residential, Commercial, and Investments centres. Kim is responsible for sponsoring projects which affect operations of the organisation as a whole. Kim works with the Human Resources Manager to coordinate systems and projects in order to achieve company-wide synergy.
Les Goodale, Human Resources Manager
Les is responsible for the productive capacity and welfare of people at MLR. With the
Operations General Manager, Kim works to coordinate projects and management systems such
as performance management, recruitment, and induction. Kim will need to ensure aspects of
the recently launched WHS management system, such as risk assessment, management,
consulting, reporting and continuous improvement, are coordinated with all subsequent
activities.
Sam Lee, Manager Residential Realty
Sam is responsible for the management of all aspects of residential realty. Sam manages the activities of residential agents.
Pat Misfud, Manager Commercial Realty
Pat is responsible for the management of all aspects commercial realty. Pat manages the activities of commercial agents.
Peter Mitchell, Manager Investments
Peter is responsible for the management of all aspects investment realty. Peter manages the activities of investment agents. Peter works with the Operations General Manager to ensure separation of investment from obligations to residential and commercial clients.
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Chapter 4 – Budget summary
Max Lionel Realty 2012–13 budget by activities to be undertaken
Income:
Commissions, fees from clients
$2,566,000 Commissions and agents’ fees for the period.
Investment income $1,567,000 Real estate investment income.
COGS $150,413 Cost of provision of services.
Total Income $3,982,587 Gross profit.
Expenses:
Wages, salaries and on costs $1,567,890 Wages, salaries, superannuation, work cover insurance, payroll tax.
Consultancy fees $50,000 Project management: WHS management system; AD awareness program.
Communication expenses $42,000 Telephone, ISP costs, IT support.
Staff travel, transport and accommodation.
$55,500 Cost of staff travel and associated costs for sales, etc.
Premises expenses $250,000 Rent, electricity, maintenance, cleaning.
Capital expenditure $120,000 Purchase of new office equipment (90%), vehicles; purchase of properties, land.
Depreciation and amortisation
$177,569 Computers and capital equipment that is depreciated.
Office supplies $65,068 Printing and stationery, postage, amenities.
Professional fees (consultants, legal and audit), insurances, taxes and charges, subscriptions and memberships.
$62,187 Audit fees, external accounting costs, bank charges, insurance except workers compensation.
Total Expenses $2,390,214
Surplus $1,592,373 Net income before tax.
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Chapter 5 – Operational plan
Max Lionel Realty operational plan (summary) FY 2012/2013
Objectives: Performance measures Tasks:
1 Engage with customers/build ethical profile:
raise organisational profile by 20%
improve client satisfaction performance by 25%.
Percentage of brand
recognition in sought-after
categories in periodic
customer surveys.
Percentage of customers
with positive view of
organisational
responsiveness,
innovation, quality.
Number of client/tenant
complaints.
Project to raise awareness of anti-
discrimination, WHS and other
legislation/codes of conduct among agents,
clients, tenants.
Conduct of quarterly surveys: clients and
tenants.
Training needs analysis and training of
agents.
Ensure agents disclose potential conflict of
interest to clients, tenants.
Development of ethical charter, including
principles all agents must follow.
2 Increase revenues by 20% within the third quarter.
Total income.
Agent income.
Investment income.
Investigate resourcing needs: number of
agents; personnel; office equipment, cars,
etc.
Fulfil resourcing needs in accordance with
policies and procedures.
3 Reduce direct and indirect costs of operations by 10%.
General ledger accounts;
financial statements:
wages
cost of agent services
consultancy fees
wastage and associated
expenses.
Renegotiate with suppliers.
Research potential new suppliers.
Management engagement with employees to
achieve greater employee support of
organisational goals.
Include explanation of how activities work
with organisational strategic goals in all
communications to internal personnel.
Greater use by managers of budgets to
encourage restraint.
Greater focus on budget restraint in
management of projects.
4 Engage workers with strategic goals of business and support professional development in line with strategic goals. (Targets to be set by individual managers.)
Percentage completion of
performance plans and
performance management
process.
Numbers of coaching
sessions completed.
Numbers of operational –
related training programs
completed.
Management engagement with employees to
achieve greater buy in of organisational
goals.
Include explanation of how activities work
with organisational strategic goals in all
communications to internal personnel.
Regular coaching.
Training needs analysis and training.
Strategic goals included in induction program
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Max Lionel Realty operational plan (summary) FY 2012/2013
Objectives: Performance measures Tasks:
for estate agents.
Employee incentives for performance in all
areas relevant to operational and strategic
goals.
5 Improve health of employees (range of specific areas).
Numbers of injuries (Target
= 0).
Numbers of absentees
(Target = <3% of total
hours).
Training needs analysis and training on WHS
and implementation of recently launched
MLR WHS management system.
Research incentives for: safe work
achievement and healthy lifestyle.
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Chapter 6 – Operational risk register
Max Lionel Realty risk register FY 2012/2013
Identified risk Probability Impact Current controls Future actions
Failure to recruit qualified real estate agents due to increased competition.
Medium High All office equipment regularly reviewed and updated as required; IT security monitored and maintained.
Appropriate insurances held and coverage reviewed annually.
Managers encouraged and incentivised to follow performance management policy.
Employee performance plans align with business plan and six- monthly review process in place.
Project to raise awareness of anti- discrimination, WHS and other legislation/codes of conduct among agents, clients, tenants
Appropriate HR policies and procedures in place.
WHS management system in place.
Industry benchmarking in all areas of organisational performance
Conduct periodic reviews of agent performance to ensure professional conduct
Staff trained in use of technology as needed.
Keep abreast of changes in potential liabilities.
Review and develop HR related policies where required.
Development of ethical charter, including principles all agents must follow.
Failure to realise revenue gains due to recent slump in real estate prices.
High High
Inadequate insurance cover. Low High
Non-compliance on anti- discrimination.
Medium High
Perception of discriminatory practice reducing client and tenant base.
Medium High
Poor organisational culture; low level of staff engagement and morale.
Medium Medium
Loss of knowledge and capability through departing staff.
Low High
Failure to meet occupational health and safety requirements.
Low High
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Chapter 7 – Work Health and Safety (WHS) Policy
Max Lionel Realty WHS policy
Max Lionel Realty recognises its responsibility to provide a healthy and safe working environment for employees, contractors, clients and visitors. Max Lionel Realty is committed to the continued wellbeing of its employees and to ensuring that all employees are safe from injury and health risks whilst undertaking work- related duties, including home-based work.
Purpose The purpose of this policy is to ensure the acquisition of resources is carried out consistently, fairly and transparently and in accordance with organisational requirements.
In order to ensure a healthy and safe working environment, Max Lionel Realty will (in accordance with the WHS management system):
undertake risk assessments and implement procedures to adequately manage any risks in the working environment
provide written procedures and instructions for safe working practices
ensure compliance with all relevant legislation
maintain safe systems of work including the work premises and environment
provide appropriate support, instruction, training and supervision to employees to ensure safe working practices.
Scope The scope of this policy covers employees and contractors of Max Lionel Realty (MLR).
Resources Specific procedures for the implementation of this policy are available below and on the company intranet.
Responsibility Max Lionel Realty management and employees are ultimately responsible for ensuring that safe systems of work are established, implemented and maintained.
Management is responsible for:
the effective implementation and regular review of WHS procedures
consultation with employees regarding health and safety issues and changes to legislation and/or working practices which may affect the health, safety or welfare of employee
providing and maintaining a safe system of working practices
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providing support, training, and supervision to employees to
ensure safe and healthy workplace practices are carried out, including relevant first aid training where appropriate
the provision of adequate resources for employees to meet the WHS commitment, including an up-to-date first aid kit.
Individual employees are responsible for:
following all WHS policies and procedures
ensuring they report all potential and actual risks to partners or managers/supervisors
taking care to protect their own health and safety and that of their colleagues at work
ensuring their own or others health and safety is not adversely affected by the consumption of drugs or alcohol
encouraging others to follow healthy and safe working practices in the workplace.
Policy Implementation and Review
This policy has been established and implemented through the human resource functions of the organisation and will be reviewed regularly in consultation with MLR management and employees to ensure compliance with legislation, industry standards and organisational changes.
Relevant legislation, etc.
Privacy Act 1998 (Cwlth)
Estate Agents Act 1980
Equal Opportunity Act 2010 (Vic)
Occupational Health and Safety Act 2004
Dangerous Goods Act 1985
AS/NZS 4804:2001 Occupational health and safety management systems – General guidelines on principles, systems and supporting techniques
Updated/ authorised
10/2012 – Riz Mehra, CFO
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Chapter 8 – Anti-discrimination policy
Max Lionel Realty Anti-discrimination Policy
Purpose The purpose of this policy is to ensure transactions with clients, tenants and other employees is handled fairly and transparently and in accordance with organisational and legal requirements. Generally it is unlawful to discriminate on the basis of the following 16 characteristics:
sex
relationship status
pregnancy
parental status
breastfeeding
age
race
impairment
religious belief or religious activity
political belief or activity
trade union activity
lawful sexual activity
gender identity
sexuality
family responsibilities
association with, or relation to, a person identified on the basis of the above.
Scope The scope of this policy covers all employees and contractors of Max Lionel Realty (MLR).
Resources Specific procedures for the implementation of this policy are available below and on the company intranet.
Responsibility Responsibility for the implementation of this policy rests with all employees, contractors and management of Max Lionel Realty.
Relevant legislation, etc.
Privacy Act 1998 (Cwlth)
Equal Opportunity Act 2010 (Vic)
Age Discrimination Act 2004
Australian Human Rights Commission Act 1986
Disability Discrimination Act 1992
Racial Discrimination Act 1975
Sex Discrimination Act 1984.
Estate Agents Act 1980
Updated/ authorised
10/2012 – Riz Mehra, CFO
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Chapter 9 – Procurement policy and procedures
Max Lionel Realty procurement policy
Purpose The purpose of this policy is to ensure the acquisition of resources is carried out consistently, fairly and transparently and in accordance with organisational requirements.
Scope The scope of this policy covers the purchasing and acquisition of resources by employees and contractors of Max Lionel Realty (MLR).
Resources Specific procedures for the implementation of this policy are available below and on the company intranet.
Responsibility Responsibility for the implementation of this policy rests with employees and management of Max Lionel Realty with responsibility for purchasing resources.
Relevant legislation etc.
Privacy Act 1998 (Cwlth)
Estate Agents Act 1980
Equal Opportunity Act 2010 (Vic)
Australian Securities and Investments Commission Act 2001 (Cwlth)
Corporations Act 2001 (Cwlth)
A New Tax System (Goods and Services Tax Administration) Act 1999 (Cwlth)
A New Tax System (Goods and Services Tax) Act 1999 (Cwlth)
Income Tax Assessment Act 1997 (Cwlth)
Fair Work Act 2009 (Cwlth)
Occupational Health and Safety Act 2004 (Vic)
Updated/ authorised
10/2012 – Riz Mehra, CFO
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14 Principles governing the Max Lionel Realty procurement process
1. Probity and ethical behaviour
The principle of probity and ethical behaviour governs the conduct of all procurement activities. Employees who have authority to procure goods and services must comply with the standards of integrity, probity, professional conduct and ethical behaviour. Employees or directors must not seek to benefit from supplier practices that may be dishonest or unethical.
2. Value for money
Value for money is the core principle underpinning procurement. Contracted organisations must be cost effective and efficient in the use of resources whilst upholding the highest standards of probity and integrity. In general, a competitive process carried out in an open, objective and transparent manner can achieve the best value for money in procurement.
3. Non-discrimination
This procurement policy is non-discriminatory. All potential contracted suppliers should have the same opportunities to compete for business and must be treated equitably based on their suitability for the intended purpose.
4. Risk management
Risk management involves the systematic identification, analysis, treatment and, where possible, the implementation of appropriate risk-mitigation strategies. It is integral to efficiency and effectiveness to proactively identify, evaluate, and manage risks arising out of procurement related activities. The risks associated with procurement activity must be managed in accordance with the organisation’s risk management policy.
5. Responsible financial management
The principle of responsible financial management must be applied to all procurement activities. Factors that must be considered include:
the availability of funds within an existing approved budget
staff approving the expenditure of funds strictly within their delegations
measures to contain costs of the procurement without compromising any procurement principles.
6. Procurement planning
In order to achieve value for money, each procurement process must be well planned and conducted in accordance with the principles contained in this document and comply with all of the organisation’s policies and relevant legal and regulatory requirements.
When planning appropriate procurement processes consideration should be given to adopting an approach that:
encourages competition
ensures that rules do not operate to limit competition by discriminating against particular suppliers
recognises any industry regulation and licensing requirements
secures and maintains contractual and related documentation for the procurement which best protects the organisation
complies with the organisation’s delegations policy.
7. Buy Australian Made/support for Australian industry
Employees who are involved in procurement activities must make a conscious effort to maximise opportunities for Australian manufacturers and suppliers to provide products where there is practicable and economic value. In making a value for money judgement between locally-made and overseas-sourced goods, employees are to take into account:
whole-of-life costs associated with the good or service
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that the initial purchase price may not be a reliable indicator of value
the quality of locally made products
the record of performance and delivery of local suppliers
the flexibility, convenience and capacity of local suppliers for follow on orders
the scope for improvements to the goods and ‘add-ons’ from local industry.
8. Pre-registered list of preferred suppliers
Max Lionel Realty shall maintain a pre-registered list of preferred suppliers, following a request for expressions of interest and an evaluation of the submissions. Suppliers can request to be evaluated for inclusion on the existing pre-register list at any time.
All purchases under $5,000 may be made from preferred suppliers without undertaking a competitive process. Purchases above $5,000 where a preferred supplier exists should include a competitive process if practicable.
This list is reviewed at regular intervals with admission of interested parties on a rolling basis. Care should be taken to ensure that such lists are used in an open and non-discriminatory manner. Max Lionel Realty encourages new contractors to provide information on their experience, expertise, capabilities, pricing, fees, and current availability. It is in the interest of the organisation that the pool of potential suppliers is actively maintained and updated. Employees should be encouraged to provide reports of their experiences in working with each contractor/consultant to assist future decisions concerning commissioning suitable contractors and consultants.
9. Avoid conflict of interest
Employees and directors are required to be free of interests or relationships in all aspects of the procurement process. Employees and directors are not permitted to personally gain from any aspect of a procurement process.
Employees and directors shall ensure that to the best of their knowledge, information and belief, that at the date of engaging a contractor no conflict of interest exists or is likely to arise in the performance of the contractor’s obligations under their contract.
Should employees or directors become aware of potential conflicts of interest during the contract period, they must advise the CEO and the Board of Directors immediately.
Prior to any situation arising with potential for a conflict of interest, complete disclosure shall be made to the CEO and the Board of Directors to allow sufficient time for a review.
10. Report collusive tendering
Employees should be aware of anti-competitive practices such as collusive tendering. Any evidence of suspected collusion in tendering should be brought to the attention of the CEO and the Board of Directors.
11. Competitive process
It is a basic principle of procurement that a competitive process should be used unless there are justifiable circumstances. For purchases under $5,000, the list of preferred suppliers may be used. The type of competitive process can vary depending on the size and characteristics of the contract to be awarded.
12. Direct invitation (selective or restricted tendering)
A process of direct sourcing to tender may be used. This may involve:
an invitation to organisations deemed appropriately qualified for a particular product or service (this may be appropriate for specialised requirements in markets where there is a limited number of suppliers or service providers)
an invitation to tender to organisations on MLR’s pre-registered list of preferred suppliers if applicable.
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13. Evaluation and contract award
For projects being awarded, consideration will be given not only to the most economically advantageous tender, but also to the track record of the tender respondent and the degree of confidence that the panel has in the quality if the bid. It will be the normal practice to have the evaluation of tenders carried out by a team with the requisite competency.
14. Results of tendering process
All tender respondents should be informed in writing of the result of a tendering process immediately after a contract has been awarded.
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Summary of procurement policy delegations
Authority Purchase amount Required number of quotes
Comment
CEO and one Director Authority to sign contracts for products and services over $75,000.
Two or more competitive quotes for contracts over $75,000.
Detailed services contract required.
CEO Authority to sign contracts for products and services up to $75,000.
Two or more competitive quotes.
Detailed services contract required for contracts over $20,000.
General Managers
Delegated authority only through CEO
Authority to sign contracts for products and services under $30,000.
One or more competitive quotes preferred.
Provided they are within the approved budget and consistent with business/operational and strategic planning.
Managers Authority to sign contracts for products and services under $10,000.
One or more competitive quotes preferred.
Follow MLR purchasing procedures.
Agents Authority to sign contracts for products and services under $5,000.
Must use preferred suppliers list.
Follow MLR purchasing procedures.
Contractors and external consultants
No authority. One or more competitive quotes preferred.
Must use preferred suppliers list.
Contractors and external consultants must follow MLR purchasing procedures and must seek approval for purchases from person holding relevant authority.
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Chapter 10 – Max Lionel Realty current tenants list
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Chapter 11 – List of pre-approved suppliers
Max Lionel Realty List of preferred suppliers and contractors
● Ace Consultants: Project managers, IT technicians, technical writers, marketers, subject
matter experts for short or long term human resourcing needs.
● Innovative Travel: Business travel bookings
● Melbourne Car World: Fleet sales and service
● Ready Office Supplies: Computers, photocopiers, etc.
● Coffeeville: Business function catering
○ Catering menu: <http://simulations.ibsa.org.au/coffeeville/menu.php>.
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