Question 1

a. List the resources requirements needed to develop an operational plan.

Resource requirements needed to develop an operational plan include production and

manufacturing raw material, processes/infrastructure, technology, distribution, location
and facilities, equipment and human resources.

b. Explain the consultation process and whom you must consult while researching and
documenting the requirements of an operational plan.

The consultation processes is an integral part of the operational planning process. It is

important to research analyse and document resource requirements and develop an
operational plan in consultation with relevant personnel, colleagues and specialist resource
managers (more examples include WHS committees, supervisors, unions, other
employees).

To consult with relevant personnel in developing the plan you must develop a consultation
process. An effective consultation plan encourages people to give ideas and feedback on
the operational requirements and possible contingencies. Acknowledge their feedbacks
and ideas and they will be happy to keep contributing their views about the system.

Question 2

What are key performance indicators, how they are developed within the operational
plan and how they can help in measuring overall organisational performance?

A performance indicator or key performance indicator (KPI) is a type of performance

measurement. KPIs evaluate the success of an organization or of a particular activity in
which it engages.

The setting of KPI’s is an important aspect of the strategic planning process and plays a
major role in the measurement of progress of the organisation towards the attainment of
its planned goals. This measurement of progress is an essential feature of strategic plan
implementation; focusing on continuous improvement through tracking the KPI
percentage of staff who have gone through training/quality improvement over a
timeframe, can provide management with a performance measure that is relevant, timely
and purposeful.
Knowing that KPI’s are tools to measure performance, progress and accomplishments of
the practices’ operational objectives: it will enable staff to identify results and areas
needing improvements.

Employees are able to track their department’s progress then align all departments to work
together with other areas to support the practices’ overall plan.
Initiating KPI’s into a practice’s objectives can be an indication of growth, productivity, cost
effectiveness and shows the overall value of the organisation. Employees can see from
KPI’s, how they fit into meeting the practice’s objectives, their part in achieving them and
also enables a shared responsibility. Quality indicators measure excellence and
effectiveness in meeting expectations and providing a service to clients and stakeholders.

Question 3

When planning there is a need to include a ‘contingency plan’. Explain why it is

important for a health care practice to develop and implement contingency plan for
each appropriate stage of their operational plan.

Contingency plans are drawn up during the planning process of an operational plan
following discussions, analysis and then importantly making the necessary decisions to
address unexpected problems when they occur. Contingency plans are developed to
provide a response to anything that may impact normal operations of a practice. The
‘contingency plan’ in a health care practice is very vital to keep the business going through
times there are operational issues.

The plan defines the risk that a particular disruption may occur by first performing a risk
analysis, then prioritising/identifying availability of resources, the organisations’ capability
and how ready the practice will be to deal with any type of disruption for example, ‘short
staffing’; the contingency plan of the organization includes hiring replacement workers
who are experienced in doing the job in the facility.

Having a contingency plan helps the organization in many ways such as the following: (1)
Plan Development – That provide a structure and strategies as well as tactics in situations
where there staff strikes for example, that will affect the business operation. (2) Plan
Facilitation – The entire management team will be available to answer questions and
address any issues that is related to short staffing and how this affects the business
operation.

The contingency plan maximises resources, human, financial and physical, ensures
coordination and defines the where and when these resources will be used to. A good
contingency plan also takes into account costs both in preparedness and actual response
expenses and develops a budget to meet all stages of the process.

Question 4

a. What methods you will undertake to obtain the approval of the operational plan
and who should be involved in the process?
 Obtaining stakeholder input into the operational plan from various areas of interest can
generate insights into potential impacts that key performance indicators may have on the
drawing up and implementing of objectives.

Consultation with stakeholders and formally presenting plans provides an opportunity for
stakeholders to understand the key issues and impacts and to provide feedback for
adjustment prior to final submission.

To develop an effective proposal, we must first:

 Identify gaps between organisational needs and current organisational capacity

 Research options
 Consider delegation policy and authority to make purchase
 Consider all relevant policies and procedures
 Consider cost analysis
 Content of operational plan is supported by variety of information resources

You can obtain approval for your operational plan by sending an invitation to relevant
stakeholders to attend the meeting in which operational plans will be discussed.
Stakeholders, including all employees also are provided with a copy of the draft plan to give
them the opportunity to provide feedback or advice on adjustments before final
submission. The signing off of the plan is obtained by the Board of Directors or senior
management, the CEO. These relevant members have the opportunity then to make any
final modifications, discuss/view goals against strategies, and agree on priorities/resource
allocation and then formally endorsing the plan.

b. Why it is important to obtain necessary approval for operational plan from relevant
stakeholders.

Mutually agreed on solutions and collaborating together to achieve consensus on

outcomes has the potential to lead to improved organisational efficiency, satisfaction and
productivity to all concerned across the organisation, clients and all stakeholders.

Question 5

Managing resource acquisition is crucial in the process of operational planning. Explain

how you will plan and manage acquisition of physical and human resources in the
planning process.
To plan and manage the acquisition of physical and human resources in the planning
processes, I would have to secure the right people at my organisation which include the
following steps:

Step 1: Analyse business operational needs.

Step 2: Work out current capabilities of the available workforce.

Step 3: Work out the needs for future requirements - extra skills needed in staff.

Step 4: Conduct a gap analysis to identify surplus and shortages, noting implications for
organisation.

Step 5: Initiate HR planning for recruitment, selection and induction of required skilled staff
as per the organisational urgent priorities. Prepare recruitment schedule based on priorities
and operational planning, for example:
- Job analysis
- Advertising
- Interviewing and assessment
- Induction or training

Step 6: Set up a system of performance management, award and recognition and training.

Importantly prepare a communication plan then communicate and consult with

stakeholders.

Question 6

List the performance measures that will assess the operational performance of the
organisation in achieving profit and productivity plans and targets?

Some performance measures are customer satisfactory, financial, growth, innovation and
learning, operations and people commitment.

Question 7

a. Name all the financial supportive documents that your practice would use to
monitor and review profit and productivity performance of the operational plan

Progress reports, Management reports, team and individual scorecards, Gantt charts,
critical path analysis, financial planning and control mechanisms, administration and
production controls.

b. Interpret below mentioned budget variance report for BIG APPLE GROCERY STORE
Answer the following questions:

1. Has the store met its sales target for the quarter?

No

2. Indicate the areas where expense has gone over the budgeted figures

Stock, power, postage and wages

3. Is the store making profit? How much is the difference in percentage in the profit?

Yes, a $55,000 profit. The difference between the budget and actual is 30%

4. What strategies would you implement to improve the profit margins for next
quarter?

I would re-evaluate purchasing of stock, wages (cut down on overtime) and electricity
usage (equipment to be switched off when not in use and end of day

Question 8

Provide “steps” on how your practice identifies the following:

 Non-performance
 Recommending solutions
 Actions implemented to rectify non-performance

Step 1 – Identify the problem

- It is important to understand the key drivers of performance or underperformance

within the workforce.
- It is also important to correctly and specifically identify the problem. Some common
reasons for underperformance are identified later in this guide.

Step 2 – Assess and analyse the problem

- Determine how serious the problem is, how long it has existed, how wide the gap is
between what is expected and what is delivered.
- Once these things have been identified, organise a meeting with the employee
- Let the employee know in advance so they are prepared for the meeting
- The employee should be allowed to bring a support person of their choice or a union
representative to the meeting. Employers working at best practice will inform the
employee that they can bring a support person as a matter of process.
Step 3 – Meet with the employee to discuss the problem

It is important that the meeting takes place in private and in an environment that is
comfortable and non-threatening, away from distractions and interruptions.

The employer should begin by holding a discussion with the employee to explain the
problem in specific terms. From this conversation, the employee should be able to clearly
understand:
- What the problem is
- Why it is a problem
- How it impacts on the workplace, and
- Why there is a concern.

The employer should discuss the outcomes they wish to achieve from the meeting.

The meeting should be an open discussion and the employee should have an opportunity to
have their point of view heard and duly considered. The employer should listen to the
explanation of why the problem has occurred or to any other comments the employee
makes.

When having this type of meeting, it may be useful in facilitating discussion to refer to
recent positive things that the employee has done to show them that you also recognise
and appreciate their strengths.

Key points for employers to remember when holding the meeting are to:
- Talk about the issue and not the person
- Explore the reasons why there is an issue
- Clarify details
- Stay relaxed and encouraging, and
- Summarise to check your understanding of the situation.

And, when discussing shortfalls in any area, it is important to check that the employee:
- Is aware that it is a task that is required of them
- Has been shown what is required,
- Understands the gap between what is happening and what is required.

Step 4 – Jointly devise a solution

Where possible, it is important that a solution is jointly devised with the employee. An
employee who has contributed to the solution will be more likely to accept and act on it.
Question 9

How you can setup a system of mentoring and coaching to provide support to the team
members in using the acquired resources in effectively, economically and safely
manner?

Coaching has a focus on performance expectations at work, developing specific skills for the
task and assessing and monitoring progress. It can be used as an identified follow up action
by an individual to facilitate learning in a particular area. It looks at improvement in behaviour
and maintains goal/objectives or set agenda in discussions.
Mentoring focuses on individual ability, growth/maturity in an informal relationship
allowing for the individual to discover and to learn for themselves, most times with a long
term approach. An employee is enabled through mentoring, to manage their own potential,
develop skills, improve performance and discover their own direction/agenda.

Mentoring helps develop personal insight/resourcefulness and facilitates challenges in the

individual to realise their potential in achieving something they care about. Career
development is facilitated by providing support and guidance in preparation for the
employee’s future. The mentoring process has helped the employee meet her objective and
at the same time has aligned it with the practice’s objective, proving mutual benefits.

Question 10

Provide three (3) examples of records used to document organisational overall

operational performance.

1. Cash flow – one of the most important tools in managing business finances. It tracks all
the money flowing in and out of business.
2. Profit and loss statement – lists sales and expenses on a monthly, quarterly and yearly
basis
3. Budget – most effective way to control cash flow , and is a vital tool in ensuring that we
stay in control of expenditure.