BBQfun: Comprehensive Analysis of Performance and Procurement Policies

This document presents an excerpt from BBQfun's business plan, specifically focusing on the company's performance management and procurement policies. It outlines the company's mission, vision, and values, along with its strategic directions. The document details the organizational structure, relevant legislation, and the performance management policy, including the procedures for conducting performance reviews, the use of the GROW model for coaching underperforming employees, and the documentation required. Furthermore, it covers the procurement policy, emphasizing principles such as probity, value for money, non-discrimination, risk management, and responsible financial management. The document provides a comprehensive overview of these key operational aspects within BBQfun, offering insights into how the company manages its employees and resources to achieve its goals.

Page 1 of 18
1 st edition version: 1
Simulated business: BBQfunBusiness plan excerpt
Simulated business: BBQfun
Business plan excerpt
From BBQfun business plan FY 2012–2013
Mission
● To provide our customers with great value outdoor lifestyle products
and second-to-none customer service.
Vision
● To be south-east Queensland’s leading outdoor lifestyle retailer within five years.
Values
● Quality.
● Customer value.
● People: Active encouragement of safety, teamwork, diversity, excellence,
innovation and continuous improvement.
Strategic directions
The strategic context in which BBQfun will achieve its mission and vision is through:
● engaging with customers through marketing, research and personalised service
● building a reputation for quality products and quality customer service
● supporting people to perform via training and performance management
● increasing sales revenue
● controlling costs through operational efficiency.
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan

Manager
Gold Coast
Alex Mitchell
Manager
Brisbane
Pat Sweeney
Manager
Marketing
Sam Lee
Operations
General Manager
Kim Chen
1 st edition version: 1
Page 2 of
18
BBQfun organisational chart
Board of Directors
and
CEO Pat Mifsud
Chief Financial
Officer
Riz Mehra
Human
Resources
Manager
Les Goodale
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan
BBQfun organisational chart
Simulated business: BBQfun
External
consultant
(you)

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1 st edition version: 1
Simulated business: BBQfunPerformance management policy and procedures
Performance management policy and procedures
BBQfun Performance Management Policy
Purpose The purpose of this policy is to ensure performance
management is carried out consistently, fairly and
transparently and in accordance with
organisational requirements.
Scope The scope of this policy covers the performance management
process by employees and contractors of BBQfun.
Resources Specific procedures for the implementation of this policy
are available below and on the company intranet.
Responsibility Managers will:
● carry out formal performance review discussions
twice annually
● monitor individual performance throughout the year,
recording key events, observations of importance which
relate to the performance, both positive and negative
● use the performance management documentation to
record formal and informal performance reviews
● provide employees with the opportunity to
participate and contribute to their professional and
personal development
● provide employees access to training and development,
as reflected in the individual’s development plan
● provide underperforming employees with coaching and
development throughout the review period, using the
GROW model to help structure their planning for formal
coaching sessions or informal, side-by-side sessions
● provide employees with opportunity to
communicate their career development goals.
Relevant legislation,
etc.
Updated/authorised
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan
10/2012 – Riz Mehra CFO
● Privacy Act 1988 (Cwlth)
● Queensland Anti-Discrimination Act 1991
(Qld)
● Fair Work Act 2009 (Cwlth)
● AS ISO 15489: 2002 Records management

Performance management policy and procedures
Procedure to conduct performance review
The employee’s performance will be monitored and evaluated regularly throughout the
year. The performance review encompasses three elements:
● an annual formal review discussion
● a six month follow-up discussion
● continuous monitoring of the employee’s performance.
1. Annual discussion
The annual discussion is a key step in the performance review process. Essentially,
this step involves compiling all the information collected and assessed throughout
the year relating to the employee’s performance.
The key elements of the annual discussion are to:
● reflect on performance during the year
● clarify key responsibilities of the role and review the job description
● discuss successes as well as areas for improvement
● set agreed targets and performance standards for the next six months
● agree on key areas of development for effective performance in the role.
2. Documentation
The performance review documentation provides an important guide to record the
standards expected of an individual, their targets (according to the job role) and
individual development plans. It is important to use the correct forms to maintain the
integrity of the information, and to help the manager and employee ensure the review is
completed correctly.
3. Timing
Employee performance is to be formally reviewed every 12 months with a follow-up
review in six months. A new plan should be completed at each annual appraisal
discussion.
4. Six month follow-up discussion
The follow-up review provides an opportunity for managers and employees to revisit
targets, standards and development plans to:
● establish that progress is on track
● identify changes impacting on the achievement of targets and standards set
● discuss development plan progress or establish development plan
● modify standards and targets, if required.
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan
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1 st edition version: 1
Simulated business: BBQfun

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1 st edition version: 1
Simulated business: BBQfunPerformance management policy and procedures
Implementation of performance review process
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan

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1 st edition version: 1
Simulated business: BBQfunPerformance management policy and procedures
Performance management plan template
Name/position: Manager: Review period:
Reference from
operational plan
Key result area Indicator of success/
performance
By
when
Status
report
Manager’s comments: Signature:
Date:
Staff member’s comments: Signature:
Date:
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan

Performance management policy and procedures
Principles of coaching underperforming employees
What do we coach?
Generally, most performance problems can be resolved through effective communication
between managers and employees. Most employees can benefit from coaching in some
way. Coaching applies to any skill at any time. It is a simple way to set, discuss, and
monitor goals in a collaborative way.
When do we coach?
Coaching is different to formal training. But how do you know when you should step in,
or let employees work through the problems for themselves?
● Observe the employee's work and be alert for certain triggers or signs. For
example, you may notice an attitude or behaviour creeping in, or you discover a
slump in the employee’s KPIs.
● Coach when you want to focus attention on any specific aspect of the
employee's performance.
● Don’t hesitate – do it now. Coaching is a process that is most effective when
it happens promptly.
How do we coach?
● Good coaches challenge employees and ask questions that help the employee to
discover how to improve.
● Coach when you wish to focus attention on any specific aspect of the
employee’s performance.
● A coaching meeting should focus on just one or two aspects of performance.
Any more than that and employees won’t remember the main impact of your
meeting.
● Keep coaching conversations brief and between 5 and 15 minutes long.
● Being an effective coach requires understanding of what motivates the members
of your team. Remember that people are motivated in different ways. Be sensitive
to the things that drive your people to perform.
● When things are performing well, take the time to understand what is working
and why.
● Good coaching is guiding, not telling or doing.
● Allow the employee to own the problem and its solutions. Ask them: ‘How do
you think we should handle this?’
● Be sure you document any key elements that come out of your coaching
sessions and store them in the employee’s file.
The GROW model
GROW is a simple but effective model for running coaching sessions. GROW is
an acronym that stands for: Goal – (current) Reality – Options – Will.
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan
Page 7 of 21
1 st edition version: 1
Simulated business: BBQfun

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1 st edition version: 1
Simulated business: BBQfunPerformance management policy and procedures
Goal
Things can change, and the employee’s goals may need to be revisited and reviewed.
Current Reality
Getting to the root cause of problems means asking the team member about what is
happening and how the problem is affecting them. Often managers can leap to a
conclusion about solving a performance problem. Important information that can help to
solve the problem is often missed.
Some useful coaching questions include:
● How is this change affecting your work?
● If things changed do we need to revisit how we planned to approach this?
Options
Once you and your team member have explored the current reality, it's time to start
exploring the alternatives for solving the problem. It should be a two-way process,
so encourage the team member for their ideas and views about what might be
done.
Ask questions like:
● What other options have you considered for how we might handle this?
● What are the alternatives?
● How else could we approach this? What risks are involved?
● What are the possible risks involved in these other options?
● What constraints exist?
Will
By this stage you will have examined the current reality and canvassed the options for
what could be done. The team member should now have a clear idea of how to deal
with the situation. The final step for you as a coach is to get them to commit to
taking action.
● How will you take this forward?
● How are you going to achieve this?
● What obstacles could prevent this happening?
● What else will you do?
Note: The coaching conversation does not need to rigidly follow the order above. Any
genuinely two-way conversation will develop in unplanned ways. Nevertheless, each
element of the GROW model should be addressed at some point in any coaching
session that is likely to be effective.
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan

Procurement policy and procedures
Procurement policy and procedures
BBQfun 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 BBQfun.
Resources Specific principles for the implementation of this policy
are available below.
Responsibility Responsibility for the implementation of this policy rests with
employees and management of BBQfun with responsibility for
purchasing resources.
Relevant
legislation, etc.
Updated/
authorised
Principles governing 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 while upholding
the highest standards of probity and integrity. In general, a competitive process carried
out in an open, objective and transparent manner can achieve best value for money in
procurement.
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan
6/2012 – Riz Mehra, CFO
● Privacy Act 1988 (Cwlth)
● Anti-Discrimination Act 1991 (Qld)
● A New Tax System (Goods and Services Tax) Act
1999 (Cwlth)
● Fair Work Act 2009 (Cwlth).
● AS ISO 15489: 2002 Records management
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Procurement policy and procedures
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 in
accordance with the delegations table on page and the completion of
the Expenditure Payment Approval Form
● 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 summary of procurement delegations (on page .
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
● that the initial purchase price may not be a reliable indicator of value
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan
Page 10 of 21
1 st edition version: 1
Simulated business: BBQfun

Procurement policy and procedures
● 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
BBQfun 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. BBQfun 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 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 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 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.
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan Page 11 of 21
1 st edition version: 1
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1 st edition version: 1
Simulated business: BBQfunProcurement policy and procedures
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 BBQfun’s pre-registered list of
preferred suppliers, if applicable.
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 of 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.
Summary of procurement policy delegations
Position 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 BBQfun
purchasing
procedures.
© 2015 Innovation and Business Industry Skills Council Ltd
BSBMGT517 Manage operational plan