Contract Performance Management of Woolworth

This study discusses the contract performance management of Woolworth, including the legal aspects and specifications of the project. It also explores the stakeholders involved and the project contract framework.

DEVELOP CONTRACTS AND MANAGE CONTRACTED
PERFORMANCES
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Table of Contents
Introduction:...............................................................................................................................3
1. Analysing the case study business and identifying the project:.............................................3
1.1 Brief summary of project and its relevance with organisation:........................................4
2. Developing the specifications of project:...............................................................................4
3. Identifying appropriate person to sign-off:............................................................................5
4. Project contract framework:...................................................................................................5
5. Draft contract:........................................................................................................................7
6. Developing a strategy for the implementation and monitoring of performance:...................7
Conclusion:................................................................................................................................8
Reference list:.............................................................................................................................9
Appendix 1: Project sign-off....................................................................................................10
Appendix 2: Feedback report:..................................................................................................11
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Introduction:
This study is based on contract and ongoing performance management of an organisation.
Towards the continuation of this study, the contract performance of Woolworth has been
evaluated. Moreover, this study has critically monitored and discussed the legal aspects of the
contract performance management of the chosen organisation. This study would be helpful
for understanding the necessity of contract performance management. In this regard,
specifications of this project have been discussed and a project contract framework has been
stated clearly. Along with this, objectives of contracts and stakeholders have been discussed
in this study.
1. Analysing the case study business and identifying the project:
Towards the continuation of this study, the contract performance of Woolworth has been
chosen. Throughout the case scenario it has found non-cooperation with legal commitment by
maintenance contractors at 90% of Woolworth’s retails stores. Therefore, the Australian
government wing Fair Work Ombudsman published this issue in their report and it has been
stated in this report that Woolworth’s approach is non-cooperation. According to the report of
Fair Work Ombudsman, almost all supermarkets of Woolworths and its Coles have this issue
of performance management. The other issue is, the supermarket implement outsourcing
contract for their cleaning activities (Aph.gov.au, 2019).
According to Noe et al. (2017), cleaning management is an important part of each
organisation and this can be considered as corporate social responsibility. This responsibility
is necessary to maintain for company’s goodwill and reputation in market. Along with this, it
is necessary to pay adequately to the cleaning staffs. However, in this case, Woolworth has
not maintained a prominent payslips for the cleaning staffs, as the staffs were outsourced and
that was against corporate social responsibility (Kallio, Tienari and Hyvönen, 2016). The
project would cover the following areas:
 Proper cleaning program in all retail stores of Woolworths
 Maintaining a proper record of cleaning as per law of FWO
 Payslips would be maintained properly by operation department
 Payment should be as per the company rule, but not as flat rate
 Providing a clear indication of the business
 Should not hire cleaners from overseas
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In this case, the involved stakeholders would be company’s operation department, human
resource department, management department and shareholders. As this is an issue of CSR,
this would be monitored under Fair Work Ombudsman of Australia (FWO).
1.1 Brief summary of project and its relevance with organisation:
The project is to set a cleaning team for all retail store of Woolworths. For those the event
situation it need discovered non-cooperation with legitimate dedication Eventually Tom's
perusing support contractors during 90% of Woolworth’s retails saves. Therefore, the
Australian legislature wing reasonable fill in ombudsman distributed this issue to their report
card Also it need been stated in this report card that Woolworth’s methodology is non-
cooperation. As stated by the report card from claiming reasonable worth of effort
Ombudsman, Practically constantly on supermarkets of Woolworths What's more its Coles
have this issue of execution oversaw economy. The opposite issue is, the store actualize all
the outsourcing agreement to their cleaning exercises.
The list of stakeholders is:
a) Operation manager
b) Human resource manager
c) Finance manager
d) Managing director
e) Personnel of FWO
2. Developing the specifications of project:
Project specification is essential to have a clear idea and steps to complete the projected
work. In the words of Van Dooren, Bouckaert and Halligan (2015), project guidelines are
important for making strategies to execute the projected work of organisation. On the other
hand, project specifications or guidelines are important for allocating resources to complete
the project. The project co-ordinator should be responsible for this. However, Buckingham
and Goodall (2015), stated that involvement of team members are also necessary for making
project guidelines or specifications, because ultimately team members would perform the
field work or actual task; so, they would know well whether those guidelines would be
appropriate or not. The project specifications of Woolworths are as follows:
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i. Recruiting local cleaners for all supermarket stores, instead of outsourcing from other
countries or territory
ii. Pay perceived payments to the cleaning team members, that would maintain the
corporate social responsibility
iii. Set a monitoring team to observe the cleaning activity in retail stores of Woolworths
and preparing report on that
iv. Maintaining record of everyday cleaning task and payment details and avoiding fake
records
v. Providing security and insurance coverage to the cleaners
vi. Providing proper training for any specific cleaning task to avoid hazardous situation
3. Identifying appropriate person to sign-off:
As it has been found that Woolworth has outsourced labour for cleaning tasks at low rate and
not recorded payment details to avoid taxes, the inspector of Fair Work Ombudsman would
be the sign-off person here. According to Kearney (2018), sign-off is necessary to have
evidence for a particular task; along with this, sign-off justifies that a particular projected
work is done under proper observation. On the other hand, Mone and London (2018) stated
that contract is also important as sign-off paper to show the evidence of any projected work.
In this case, Woolworth’s cleaning activity was against FWO law, that’s why the inspector of
Fair Work Ombudsman would be the sign-off person. The inspector would monitor and
observe the above mentioned specifications for cleaning project. The feedback and sign-off
sheet in attached in appendix 1.
4. Project contract framework:
The project contract framework would reflect all the specifications necessary to maintain
during the continuation of the project. Along with this, the project contract framework would
create an agreement between the company and third party regarding a particular project,
where the company would pay as per rule and third party would complete the task by
allocated time (Gerrish, 2016). In this support, Arnaboldi, Lapsley and Steccolini, (2015)
stated that project contract is necessary to have proof and to avoid fraudulence. In this case,
Woolworth outsourced labour for cleaning purpose by not considering local cleaners. The
contract framework will be consisting of objectives of the contract, boundaries of the
contracts, objectives of stakeholders, measurement tools in project performance.
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CONTRACT FRAMEWORK
THIS FRAMEWORK CONTRACT ("Agreement"), entered into on _________ 2019, by and between:
WITNESS:
Project manager
Head of operation department
Head of HR department
External inspector (FWO)
NOW, THEREFORE, the Parties hereby agree as follows:
Objectives of the contract:
Recruiting local cleaners for all supermarket stores, instead of outsourcing from other countries or
territory
Pay perceived payments @ $17/hour to the cleaning team members, that would maintain the corporate
social responsibility
Set a monitoring team to observe the cleaning activity in retail stores of Woolworths and preparing
report on that
Maintaining record of everyday cleaning task and payment details and avoiding fake records
Providing security and insurance coverage to the cleaners
Providing proper training for any specific cleaning task to avoid hazardous situation
Objectives of the stakeholders:
To monitor all activities within organisation
To analyse each activity within the cleaning project
To check record of daily activities and payment
To measure additional areas like safety, insurance, timeframe etcetera
Contract boundaries and implementation process:
The organisation or managers should not reduce the pay-off for cleaning team
The organisation or managers should not outsource for cleaning
The organisation or managers should not avoid record maintenance
The organisation or managers should provide timely payment
Measurement tools to monitor performance:
Key performance indicator analysis
360O feedback form
This contract is produced in three original copies, whereby the Seller shall keep one and the Buyer shall
keep two original copies after signature.
This agreement comes into force with signature and stamps of all parties.
Reporting schedule:
Weekly basis report system
Tally weekly report with monthly final report
Signatures:
_________________
_________________
_________________
_________________
_________________
The contract framework is given below:
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Here, the involved stakeholders are
 Project manager
 Head of operation department
 Head of HR department
 External inspector (FWO)
5. Draft contract:
The contract has been framed in previous option. The organisational guidelines towards this
project are as follows:
 noteworthy payment system to the cleaners and payment would be timely
 breach of contract should not take place until and unless the projected work is
completed
 all types of necessary benefits and safety or insurance would be provided to cleaners
 no bogus record would be kept or considered
 proper monitoring and observation process would be performed
In this case, KPI analysis and 360O feedback process would be considered. According to
DeNisi and Murphy (2017), Key Performance Indicator (KPI) is necessary to evaluate the
progress of projected tasks within organisation. In this process, the gap area can be measured.
On the other hand, Bititci, Cocca and Ates (2016) stated that 360O feedback process helps to
identify the working process or environment; this also helps to measure the understanding
and co-operation level of workers. The feedback report is attached in appendix 2.
In this case, feedback form would be helpful for collecting necessary opinion of all
employees and stakeholders. Based on the collected information key performance indicator
will be evaluated.
6. Developing a strategy for the implementation and monitoring of performance:
In this case, implementation of strategy is also important; where the workers would need to
have the following knowledge:
 Proper idea of the projected work and necessary information
 Need to have necessary training for any specific task
 Need to have proper guideline towards the completion of projected work
 Set a team for observation and recording progress of tasks
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 Marking the gap areas in implemented strategy and apply alternate plan
On the other hand, Key Performance Indicator (KPI) and 360O feedback process are chosen
as monitoring process. These two processes are interlinked to each other. With 360O feedback
process the observer would know the knowledge level of workers; on the other hand, KPI
would reflect the progress of projected works (Ewenstein, Hancock and Komm, 2016).
Conclusion:
In this study, a business issue of Woolworths has been discussed and that was legally
engaged. Towards the mitigation of the issue, the company made a plan with the
collaboration of FWO. The specific areas have been covered in this study and contract
framework has made. The structured sign-off document is also necessary towards the
completion of the project.
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Reference list:
Aph.gov.au (2019), Parliament of Australia, Available from:
https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Education_and_Employ
ment/ExploitationofCleaners/Report/section?id=committees%2freportsen
%2f024233%2f26721 [Accessed on 15 March 2019]
Arnaboldi, M., Lapsley, I. and Steccolini, I., (2015). Performance management in the public
sector: The ultimate challenge. Financial Accountability & Management, 31(1), pp.1-22.
Bititci, U., Cocca, P. and Ates, A., (2016). Impact of visual performance management
systems on the performance management practices of organisations. International Journal of
Production Research, 54(6), pp.1571-1593.
Buckingham, M. and Goodall, A., (2015). Reinventing performance management. Harvard
Business Review, 93(4), pp.40-50.
DeNisi, A.S. and Murphy, K.R., (2017). Performance appraisal and performance
management: 100 years of progress?. Journal of Applied Psychology, 102(3), pp.421-437
Ewenstein, B., Hancock, B. and Komm, A., (2016). Ahead of the curve: The future of
performance management. McKinsey Quarterly, 2, pp.64-73.
Gerrish, E., (2016). The impact of performance management on performance in public
organizations: A meta‐analysis. Public Administration Review, 76(1), pp.48-66.
Kallio, K.M., Kallio, T.J., Tienari, J. and Hyvönen, T., (2016). Ethos at stake: Performance
management and academic work in universities. Human Relations, 69(3), pp.685-709.
Kearney, R., (2018). Public sector performance: management, motivation, and measurement.
Routledge.
Mone, E.M. and London, M., (2018). Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Van Dooren, W., Bouckaert, G. and Halligan, J., (2015). Performance management in the
public sector. Routledge, London
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Appendix 1: Project sign-off
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YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
Appendix 2: Feedback report:
Feedback report
Woolworths’ Group
This feedback form and report will be supportive as evidence for the ongoing project work in
Woolworths’ group. The projected work is about cleaning tasks. The cleaners will be
recruited from local area and pay-off will be $17 per hour.
Reporting person: Project manager
Project examiner: FWO personnel
Name of participant __________________________________________________
Designation _________________________________________________________
Organisation ________________________________________________________
Department _________________________________________________________
Q1. Are all cleaners locally recruited?
Q2. Is the organisation providing @ $17 per hour to cleaners?
Q3. Was the project examiner present during the continuation of project work?
Q4. Was the working environment friendly to all workers?
Q5. Was there any outsourced cleaner in work place?
Q6. Were there all necessary safety precautions for cleaners?
Q7. Are the stakeholders involved in projected work?
Q8. Does the project manager maintain record on daily basis?
Q9. Do you think the payment process takes on time?
Q10. Is the company maintaining all legal aspects towards the project?
We believe your answers are correct and intentionally picked the correct option. Your
feedback will be helpful for final report of this projected work.
Thank you,
Woolworths’ Group
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