BSBMGT517 - Manage Operational Plan

1
BSBMGT517 Manage operational plan
TRAINING MANUAL
© William Angliss Institute 2017

Training Manual
William Angliss Institute of TAFE
555 La Trobe Street
Melbourne 3000 Victoria
Telephone: (03) 9606 2111
Facsimile: (03) 9670 1330
Acknowledgements
Subject Writer: Nick Hyland
© William Angliss Institute 2017. All text and images unless otherwise stated.
All rights reserved. This booklet was produced by William Angliss Institute to be used as
resource material for its enrolled students only; and as such they have the authority to print
out this material. Any further copying or communicating of this material in any format or via
any means may only be done so with the prior documented permission of William Angliss
Institute. William Angliss Institute does not have the authority to give permission for third
party materials that may be included in this resource.
Disclaimer
Every effort has been made sure that this booklet is free from error or omissions. However,
you should conduct your own enquiries and seek professional advice before relying on any
fact, statement or matter contained in this book. William Angliss Institute is not responsible
for any injury, loss or damage as a result of material included or omitted from this course.
Information in this module is current at the time of publication. The time of publication is
indicated in the date stamp at the bottom of each page.
Images have been sourced from Shutterstock and are used under Creative Commons
licence.

Training Manual
Table of contents
William Angliss Institute ........................................................................................................ 1

Unit descriptor ....................................................................................................................... 3
Assessment matrix ................................................................................................................ 5
Glossary................................................................................................................................ 7
Element 1: Develop operational plan..................................................................................... 9
Element 2: Plan and manage resource acquisition .............................................................. 35
Element 3: Monitor and review operational performance ..................................................... 43
Presentation of written work ................................................................................................ 73
Recommended reading ....................................................................................................... 75
Trainee evaluation sheet ..................................................................................................... 77
Trainee self-assessment checklist....................................................................................... 79

Training Manual
This page is left intentionally blank for double-sided printing.

Training Manual
William Angliss Institute
William Angliss Institute

William Angliss Institute was named after the late Sir William Angliss, MLC, whose generous
donations and personal efforts were instrumental in the foundation of the Institute, which
opened as the William Angliss Food Trades School in 1940.
The Institute provided training in pastry cooking, retail butchery and smallgoods, bread-
making and baking, as well as cookery and waiting. In the late 1960s the school expanded
into training for the hospitality industry, and in the late 1980s into the broader tourism-related
courses.
Today, William Angliss Institute is a national and international provider of education and
training programs, consultancy services and human resource development solutions for the
tourism, hospitality and foods industries.
The Institute is the largest single-purpose government educational institute of its kind in
Australia, offering short courses, apprenticeship, certificate, diploma, advanced diploma,
degree and graduate courses. William Angliss Institute’s portfolio of skill and career
development programs spans a diverse range of hospitality, tourism and foods-related
disciplines. This includes generalist and specialist programs with options for delivery in the
workplace, on-campus and online.
Educational and industry expertise includes:
 Tourism  Coffee making and barista training
 Retail travel  Patisserie
 Hospitality management / operations  Bakery

 Hotel management  Butchery and meat retailing
 Ecotourism  Confectionery manufacturing
 Meeting and event management  Food science and technology
 Resort management  Business and retail management
 Professional cookery  Marketing and human resources
In addition to over 1000 international students enrolled at William Angliss Institute in

Melbourne and off-shore campuses, a comprehensive network of government, industry and
education partnerships provide students and Institute staff with a world of opportunities.
Recognition of Prior Learning (RPL)
If you’ve got previous qualifications or relevant work/life experience, you may be eligible for
exemptions in your course through our RPL process. For more information, check out our
RPL brochure available from the Information Centre.
For further information:
Phone: (03) 9606 2111

Fax: (03) 9670 0594
Web: www.angliss.edu.au

Training Manual 1
Introduction to trainee manual

2 Training Manual
Unit descriptor
Unit descriptor
This unit deals with the skills and knowledge required to manage an operational plan in a
range of settings within the tourism and hospitality industry.
Element 1: Develop operational plan

Performance Criteria
1.1. Research, analyse and document resource requirements and develop an operational
plan in consultation with relevant personnel, colleagues and specialist resource
managers.
1.2. Develop and/or implement consultation processes as an integral part of the
operational planning process.
1.3. Ensure the operational plan includes key performance indicators to measure
organisational performance.
1.4. Develop and implement contingency plans for the operational plan.
1.5. Ensure the development and presentation of proposals for resource requirements is
supported by a variety of information sources and seek specialist advice as required.
1.6. Obtain approval for the plan from relevant parties and explain the plan to relevant
work teams.
Element 2: Plan and manage resource acquisition

2.1. Develop and implement strategies to ensure that employees are recruited and/or
inducted within the organisation's human resources management policies, practices
and procedures.
2.2. Develop and implement strategies to ensure that physical resources and services are
acquired in accordance with the organisation's policies, practices and procedures.
2.3. Recognise and incorporate requirements for intellectual property rights and
responsibilities in recruitment and acquisition of resources and services.

Training Manual 3
Unit descriptor
Element 3: Monitor and review operational performance

3.1. Develop, monitor and review performance systems and processes to assess
progress in achieving profit and productivity plans and targets
3.2. Analyse and interpret budget and actual financial information to monitor and review
profit and productivity performance
3.3. Identify areas of under-performance, recommend solutions, and take prompt action to
rectify the situation
3.4. Plan and implement systems to ensure that mentoring and coaching are provided to
support individuals and teams to effectively, economically and safely use resources
3.5. Negotiate recommendations for variations to operational plans and gain approval
from designated persons/groups.
3.6. Develop and implement systems to ensure that procedures and records associated
with documenting performance are managed in accordance with organisational
requirements

4 Training Manual
Assessment matrix
Assessment matrix
Showing mapping of Performance Criteria against Work Projects, Written
Questions and Oral Questions
The Assessment Matrix indicates three of the most common assessment activities your
Assessor may use to assess your understanding of the content of this manual and your
performance - Work Projects, Written Questions and Oral Questions. It also indicates
where you can find the subject content related to these assessment activities in the
Trainee Manual (i.e. under which element or performance criteria). As explained in the
Introduction, however, the assessors are free to choose which assessment activities are
most suitable to best capture evidence of competency as they deem appropriate for
individual students.
Work Written Oral

Projects Questions Questions
1.1 Research, analyse and document 1.1 1,2 1
resource requirements and develop an
operational plan in consultation with
relevant personnel, colleagues and
specialist resource managers.
1.2 Develop and/or implement consultation 1.2 3,4 2
processes as an integral part of the
operational planning process.
1.3 Ensure the operational plan includes 1.3 5,6 3
key performance indicators to measure
organisational performance.
1.4 Develop and implement contingency 1.4 7 4
plans for the operational plan.
1.5 Ensure the development and 1.5 8 5
presentation of proposals for resource
requirements is supported by a variety
of information sources and seek
specialist advice as required.
1.6 Obtain approval for the plan from 1.6 9,10 6
relevant parties and explain the plan to
relevant work teams.

Training Manual 5
Assessment matrix
Work Written Oral

Projects Questions Questions
2.1 Develop and implement strategies to 2.1 11 7
ensure that employees are recruited
and/or inducted within the
organisation's human resources
management policies, practices and
procedures.
2.2 Develop and implement strategies to 2.2 12 8
ensure that physical resources and
services are acquired in accordance
with the organisation's policies,
practices and procedures.
2.3 Recognise and incorporate 2.3 13 9
requirements for intellectual property
rights and responsibilities in recruitment
and acquisition of resources and
services
3.1 Develop, monitor and review 3.1 14 10
performance systems and processes to
assess progress in achieving profit and
productivity plans and targets
3.2 Analyse and interpret budget and actual 3.2 15 11
financial information to monitor and
review profit and productivity
performance
3.3 Identify areas of under-performance, 3.3 16 12
recommend solutions, and take prompt
action to rectify the situation
3.4 Plan and implement systems to ensure 3.4 17,18 13
that mentoring and coaching are
provided to support individuals and
teams to effectively, economically and
safely use resources
3.5 Negotiate recommendations for 3.5 19 14
variations to operational plans and gain
approval from designated
persons/groups.
3.6 Develop and implement systems to 3.6 20 15
ensure that procedures and records
associated with documenting
performance are managed in
accordance with organisational
requirements

6 Training Manual
Glossary
Glossary
Term Definition
A set of planned activities or actions implemented for

Corrective actions the purpose of resolving problems.
CSISG Customer Satisfaction Index of Singapore
Intangible Something of value however cannot be ‘seen’
KPI Key Performance Indicator
Metric A target or measurement for performance comparison
A written statement expressing an organisation’s

Mission Statement
purpose
A blueprint for goal achievement and establishing an
Plan
overall strategy for achieving those goals
Pro forma Template document
A roadmap for an organisation that charts out the key

organisational functions and resources which are
Operation plans
required in order to meet, or exceed, the expectations
of customers
Stakeholder A person who is a part of service delivery
Standard Expected level of performance
Town-hall session An ‘open to all’ meeting to discuss a range of topics
Values Core principles that guide an organisation’s work
Vision Core ideology of a business

Training Manual 7
Glossary

8 Training Manual

1.1 Research, analyse and document resource
requirements and develop an operational plan
in consultation with relevant personnel,
colleagues and specialist resource managers
Introduction
Central to the operation of any successful business is the need to prepare for what lies
ahead and to plan what is going to happen.
No business can function effectively on an on-going basis unless it has sound plans in place
for the conduct of the business.
As they say ‘If you fail to plan, you plan to fail’.
Developing an operational plan

The Operations Manager needs to consider carefully the requirements of an organisation.
Key functions include:
 Planning
 Organising
 Acquiring
 Leading
 Monitoring
Importance of planning
A plan is defined as a blueprint for goal achievement and establishing an overall strategy for
achieving those goals.
Therefore an operations plan is vital in ensuring services are delivered as expected.
Planning establishes an integrated, coordinated effort and gives direction to people.
Planning also:
 Reduces the negative impact of change
 Minimises repetition and waste
 Reduces levels of uncertainty
 Focuses on specific targets and directs employee
effort toward outcomes
 Enables all decisions to be rationalised according to
the plan
 Sets standards of performance to enable evaluation and control

Training Manual 9
Customer focus
Customer focus is a concept that must be fundamental to all operational thinking, decision-
making and practice.
Customer focus is a marketing theory. It suggests that everything we do in a business must
concentrate on the customer and not on anything else. It means a business should not do
something because it is simpler or cheaper for the business.
Rather, the fundamental question must always be ‘What does
the customer want, need, prefer?’ and the answer to that
question is used to guide the service provided.
Customer focus also includes the idea of getting close to your
customer so that you get to know their individual needs, wants
and preferences and armed with that knowledge are in a better
position to provide exactly what they need, want or prefer.
Operational plans
An operational plan may be defined as a roadmap for an organisation that charts out the key
organisational functions and resources which are required in order to meet, or exceed, the
expectations of customers.
Developing operation plans

It is preferable for plans to be in writing because this:
 Provides a constant reference point
 Facilitates the sharing of the plan
 Forces all or more planning considerations to be undertaken
 Allows for informed feedback in relation to the plan.
An operational plan can relate to all manner of workplace activities, or it may focus on a
single topic. The driving force behind developing an operational plan is that there must be a
need for the plan.
For example, you may decide that your operational plan will detail the general activities of
staff for a day or a week, or you may elect to prepare a performance plan for a day, week or
month that focuses on:
 Staff performance and appraisals
 Customer service
 Obtaining customer feedback
 Creating new products and services
 Development of a range of new products or services

10 Training Manual
When putting an operational plan together you must also make sure that whatever is
contained in the plan:
 Aligns with the Mission of the business
 Supports the stated Vision of the organisation
 Reflects the public Value Statements made by the
business
 Helps achieve the desired image of the business
 Helps achieve the desired market position of the
business in the marketplace
Direction and goals for the organisation over the medium to long-term
Mission statement
This is a written statement expressing an organisation’s purpose. It identifies the business,
its aspirations and its desired culture.
Vision
An organisation’s vision may include:
• Core ideology which defines what the organization stands for and why the
organization exists
• Envisioned future which defines what the organization aspires to become
• Service vision
Values
An organisation’s values describe the core principles that guide an organisation’s work. An
organisation’s values may include:
• Teamwork
• Commitment
• Ownership
• Recognition
• Service excellence
• Personal development
Corporate goals
These are goals set by the board of directors or the shareholders. They are an
organisation’s blueprint stating its’ main objectives for the future. These goals are stated in
general terms and then strategically planned through the organisation’s hierarchy.
Strategic plans
These plans determine the future direction of an organisation. They are formal long-term
plans designed from the corporate goals and objectives. These plans set the agenda.

Training Manual 11
Core elements of operational plans

Always looking for ways to improve the operational effectiveness is essential.
Operational areas that can be improved or enhanced include:
 The procedures or systems that exist – such as bar or restaurant procedures
 The workflow – that is the order in which things are done
 Whether or not there are gaps or overlaps in
service provision
 The workload of staff – that is whether they are
under-worked or over-worked at different times
 The time it takes to do a task or job
 Job design – that is whether jobs are challenging or
interesting enough for staff
 Level of customer satisfaction with the service or product provided.
This is not only the responsibility of management but by all staff within a department.
Nature of operational plans

These may relate to:
 Written work plans – these are normally established plans including procedures that
are to be followed in a normal day or event
 Verbal work plans – these are often variations to plans that
need to be made in response to specific actions or incidents
 Daily priorities – these may be set and consistent activities that
need to be done each and every day or to be completed on a
specific day in response to a specific event
 Weekly priorities – these will normally be set tasks including
ordering of stock, cleaning, stock taking etc
 Regular duties or work tasks – as assigned to the team as a
whole or individual team members

12 Training Manual
Types of operational plans

When managing a team, it may be necessary to prepare different types of operational plans.
Sometimes management will supply them, or provide them in some form that assists you in
formulating ones for your own use.
Workgroup plans can include any of the following:
 Sales plans
 Reporting plans
 Production plans
 Budgetary plans
 Team participation
 Work schedules
 Team and individual learning goals
Objectives of operational plans

There will be a range of objectives of operational plans which can include, but certainly not
limited to:
Targets, goals and objectives
Objectives may be short-term, mid-term or long-term, and can relate to areas such as:
 Sales targets – in terms of dollars, units, number of covers, specific market
demographics
 Performance targets for a particular project – such as date-linked budget figures for
sales, labour, cost of goods sold, advertising, profit
 Increased productivity – which may be set for individuals or an entire department or
property. In service industries there is always a potential down-side for productivity
increases in that service levels often drop when such a push is made
 Achieving KPIs – which may relate to satisfaction surveys,
compliance with policies and protocols, achieving budgeted
profit targets, reducing staffing levels to a predetermined
level, successfully introducing a new initiative.
 Meeting short, medium or long-term goals – whilst teams
will have a long term objective, there will be be more
immediate goals and milestones that must be achived.
 Organisational strategies
 Operational activities
 Task management
 Contingency management.

Training Manual 13
Reporting deadlines
All teams will have a time deadline in which to undertake different tasks and to achieve
different targets.
Meeting budgetary targets
Like with any aspect of an organisation, all teams will normally have to operate within
resource restrictions, with a key one being financial.
It is unlikely that teams will have unlimited funds at their disposal in which to operate. One of
the main reasons for organisations and teams existing in the first place, is to operationally
viable.
Team participation
A team is only as strong as its weakest link. If there is
any weakness in a team, it will affect the performance of
others.
It is expected that all team members contribute to the
best of their ability in the role in which they have been
selected.
Team and individual learning goals
Not only is a team developed for the completion of activities, it is a common aim for both the
team and the individuals within the team to learn and develop from the experience.
Professional development
Following on from the common desire to promote learning, this is one of the most effective
ways to develop an a group or an individual. Again this will be discussed in this manual.

14 Training Manual
1.2 Develop and/or implement consultation

processes as an integral part of the operational
planning process
Introduction
When people talk about planning they often use the term ‘stakeholders’. This simply refers to
the people, groups, organisations that may have an interest in the business or be directly
affected by the plan.
As you develop your plan you will think of its stakeholders. Every additional stakeholder is
someone else who has an interest in your business and can, therefore, be another source of
support or contribute information.
Types of stakeholders
Stakeholders may include:
 Customers
 Employees
 Government agencies
 Owners
 Suppliers
 Strategic alliance partners.
Importance of involving stakeholders

Communication throughout the planning, preparation and delivery of operational plans is
vital to ensure that all stakeholders:
 Are involved
 Had the chance to contribute
 Provide feedback on initial strategies and
approaches
 Understand how operational plans and strategies will
affect them
 How the operational plan will interrelate or impacts
other stakeholders.
All successful planning activities are a result of effective teamwork.
This highlights the need to involve others so that operational planning approaches are
thoughtfully explored.

Training Manual 15
Methods to encourage staff input

Encouraging teams and individuals to provide ongoing input into operational plans is another
aspect of the manager’s role in developing team commitment and cooperation.
Leaders should encourage team members to develop and contribute innovative ideas and
inputs into how operational plans can be implemented.
This signals management’s recognition of staff as valuable members of the organisation in
the overall work process, rather than just as operational staff.
It also underlines the importance of communication in the workplace. There is little point in
team members having great ideas or suggestions for improving operational plans or
operations relating to it if they are not shared, or if they believe their input will not be
appreciated or considered.
Examples of ways in which leaders can provide ongoing input into operational plans can be
implemented include:
 Asking for ideas – encouraging staff to make suggestions about better ways of doing
things
 Having an ‘open door’ policy regarding
suggestions
 Sharing ideas – encouraging others to alert team
members to the potential of new practices
 Being prepared to test new ideas – this
demonstrates management is prepared to try
new ideas as opposed to insisting the old ones
are adhered to
 Seeking information and ideas from non-traditional places – such as other departments
or other venues (including the competition)
 Thanking people for their contributions
 Taking the time and effort to explain to someone who contributed an idea why their idea
was not implemented – as opposed to appearing to simply ignore the suggestion
 Ensuring the person responsible for suggesting an effective new approach receives the
credit for doing so – rather than their manager taking the credit.
Seek assistance from experts

Before you start your business it is advisable to consult as many organisations and persons
that you believe can inform and assist you in your planning.
Whilst each organisation will have different requirements, it is wise to speak with a wide
selection of experts. Each of these will not only cover areas that you may not have in-depth
knowledge of expertise, but can also provide a different approach and alternate point of
view.

16 Training Manual
Types of assistance and advice

Assistance and advice from appropriate experts may be sought for:
 Collection and collation of facts and information
 Review or verification of facts
 Legal or financial advice
 Ensure compliance of regulations and laws
 Issuing of permits and licences
 Strategic planning
 Specialist skill sets.
Sources of assistance and advice
These can include, but are not limited to:
 Local government agencies
 Tourism associations
 Non-government organisations
 Media personnel including journalists
 Copy writer
 Professional research organisations
 Solicitors
 Family
 Existing employees
 Your existing bank
 Your accountant
 Financial adviser
 Your planning consultant
 Your architect
 Your local council
 Your potential financier
 Tourism agencies (local/regional/state)
 Tourism operators
 Shareholders and business partners
 Customers
 Suppliers
 Neighbours and the local community.

Training Manual 17
1.3 Ensure the operational plan includes key

performance indicators to measure
organisational performance
Introduction
Your organisation may have existing pro formas that are used for developing service
operation plan and where these exist you should use them. It is also a good idea to obtain a
few copies of similar plans that have already been developed by others in the organisation
and use these as models for your plans.
The operational plan

A service operations plan may include:
Key requirements
 Organisation’s short-term and long-term goals
 Workflow processes and standard operating procedures for implementation of
service operations
 Workflow processes and standard operating procedures for working with customer
service centres, which may include:
o call centres
o online sales and service centres
o mail order operations
o after sales service and repair centres
o technical support units
 Measures to manage high volume customer traffic
which may include:
o customer queue management systems
o technology to enable customers to independently access information and
services
 Budget and resources required to implement service operations
 Potential risks and mitigating actions to manage the risks
 Service recovery plans
 Contingency plans
 Operational performance standards

18 Training Manual
Premises, Plant & Equipment

In the Business Profile you have nominated the location of your business. At this time it
would be useful to give reasons for your choice of location. It could be that you have located
where there is a good flow of passing traffic who you hope will be attracted to your business.
Perhaps proximity to suppliers, or an available workforce were determining factors.
You will need to outline any arrangements that you need to
make re rental of premises, or lease, or purchase. Do you
require local government approval for the use of the
premises for your type of business? Will you need to pay
for a fit-out of the premises, or will you need only to
redecorate and can handle it yourself with the help of family
and friends?
What plant and equipment are you going to need? Will it be new or second-hand, and will
you purchase or lease it? Have you given thought to an efficient workflow when installing
fittings and plant and equipment?
Floor plan
It is a great idea to draw a floor plan of the premises and, to scale, show the position of all
work areas, equipment, etc.
Pace it out and make sure it flows and is comfortable. Would you enjoy working in this
layout, will your customers find it attractive and does it comply with all regulations?
Production
If your business will be manufacturing products, you will need to include information on:
 Production Capacity
 Output Levels
 Production Methods
 Production Quality Controls.
Purchasing/Suppliers
A vital part of any business’ operations is the sourcing and purchasing of goods, products
and services which it requires in order to operate.
This is especially true in the tourism industry where primarily you are selling other
organisation's products and services. Establishing a reliable, cost-effective supply chain is
essential to a small business. Your skills in identifying the most suitable products, then
achieving the best possible prices and supply terms will be very beneficial to your business.
Stock Levels
Again, in the tourism industry, many of your operations, is based around selling other
products and services. Therefore stock levels may not be a major consideration.
That said, if you offer your own travel related products and services, careful consideration
must be given to ensuring you have adequate stock.
The purchasing plan is dependent on information from the marketing plan and takes into
account production schedules and requirements. Remember the marketing plan was based
on the sales targets, so you can see the flow on effect from having relevant sales targets.

Training Manual 19
Think about what supplies your business will require. You will
need to shop around, and perhaps find more than one
supplier to avoid being let down if your preferred supplier
cannot satisfy your requirements from time to time. However,
if you use one supplier for a certain type of product will you
receive quantity discounts?
Consider:
 How frequently will you purchase supplies?
 How will you set and maintain stock levels? Will you use
the “Just-in-Time” practice?
 If you carry too much stock do you risk it becoming unusable, or obsolete?
Purchasing Policies and Controls
It is good practice to document the Purchasing Policies for your business. Consider:
 What will be the terms of payment for each supplier?
 What purchasing procedures will you use? Will you have written purchase orders, or
order by phone or emails? Will you match these and delivery dockets against invoices?
 What controls will you have in place to prevent or
detect theft, fraud?
 How will you pay your suppliers? Cash or bank
transfer. Is there any discount for prompt payment?
 What currencies will be used for payment?
 What commissions apply?
 How much of your funds do you want to tie up in stock?
 Analyse the gross profit margin – in dollar and percentage terms, compare sales against
purchases.
For each purchase item, draw up a table of suppliers, including their names, address, what
they supply and their terms. You may like to present this as a spread sheet.
Breakeven Analysis
A break-even analysis determines at which point sales begin to
cover costs. After that, sales revenue becomes profit. There are
several methods that can be used in this analysis.
You may have studied the unit Manage Financial Operations in
which the processes involved in break-even analysis are dealt
with in-depth.
To refresh your memory, the first steps were:
Identify:
 Fixed costs – those costs that remain even when there is no business activity e.g., rent,
insurances, manager’s salary
 Variable costs – those costs that vary directly with business activity, e.g., purchases,
electricity
 Contribution margin – the difference between variable cost and the sales price.

20 Training Manual
Prepare Key Performance Indicators (KPI’s)

Identifying a small number of key performance measures (KPI’s) that
can be regularly monitored is an important step in operational
planning. They provide an early warning system showing progress or
lack of it. Being able to graphically represent them is also helpful
since the results can be displayed for colleagues and staff to see at a
glance. KPI’s need to be directly linked to your objectives; you will
have to determine the ones most suitable to your business.
Types of KPI's
KPI’s can apply across a range of operational performance areas
within an organisation including:
 Quality control measures – to what extent are quality issues addressed within the
organisation and how is this reflected in operations
 Materials control measures – how is stock and capital assets managed and is this done
efficiently
 Human resources measures – this covers areas such as recruitment, training, job
mobility and other HR functions impacting on the
organisation
 Sales and marketing measures – the extent to which
sales and marketing supports the organisations plans
 Delivery performance measures – specifically in the
area of customer service and satisfaction and how this
is measured and monitored
 Financial measures – significant financial measures
which impact on the viability of the organisation
 Environmental sustainability – the indicators which show how sustainable the
organisation operations are

Training Manual 21
1.4 Develop and implement contingency plans for

the operational plan
Introduction
The best plans in the world are after all just plans. Whilst we can attempt to make allowance
for future events and developments, we must also accept that some significant events will
fundamentally challenge the plans we have made.
For this reason, contingency planning is an important part of any operational planning we
undertake.
A Contingency Plan is a course of action which is developed to be
used in case a certain event does or does not happen. Some
organisations refer to this as their “Plan B” and is a fall-back
position designed to protect them from further loss.
A Hotel for example may plan for a power interruption and how it
will deal with such an eventuality. The plan may include having
their own generators or a means to continue operation without
power.
Managing risks through the contingency plan

Contingency planning is an important part of Risk Management which is the process of
identifying threats to the organisation’s operations, assessing their likely impact and
developing appropriate controls.
There are a number of key areas which we need to plan in anticipation of:
 Unforeseen incidents – these may include significant natural disasters. From a
hospitality provider’s perspective this could include damage to premises, danger to
existing customers or a loss of patronage due to adverse publicity surrounding the
event.
 Personnel issues – this could cover loss of key staff due to resignation, illness or
transport disruptions. How well placed is the organisation to cope without these
people or how quickly could they be replaced. What impact on operations will their
absence have?
 Environmental factors – how is the business environment likely to affect us. Could a
slowdown in the economy lead to reduced numbers of customers and what if
anything can we do to offset this through our planning.
 Resource availability – can we obtain all the
resources both Human and Material when they are
needed. Can supply interruptions be handled via
alternative sources
 Budget constraints – has there been an unexpected
rise in costs or a one off major expenditure which has
affected the rest of the budget. What allowance has
been made for these sorts of financial impacts.

22 Training Manual
1.5 Ensure the development and presentation of

proposals for resource requirements is
supported by a variety of information sources
and seek specialist advice as required
Introduction
The key aspects of achieving business success are through the use of capabilities and
resources.
Whilst it is important to review the 'end results' as identified in previous sections, it is
important to identify the capabilities and resources used in providing products and services
to clients.
This section will explore in more detail the different types of capabilities and resources that
apply to hospitality and tourism operations.
Types of capabilities
Types of capabilities may include:
 Products and or services
 Capacity to produce goods or services
 Equipment capacity
 Skill level of staff, management and owners
 Hours of operation
 Communication capabilities
 Location of the agency
 E-business capacity
 Need for specialist assistance in certain areas
 Maintaining a competitive advantage.

Training Manual 23
Types of resources
The use of resources are important activities in any business, especially in hospitality and
tourism organisations
There is a need to make sure the organisation has the resources it needs to achieve its
identified business objectives, while at the same time, ensuring that money is not wasted on
resources that are not necessary or inappropriate to the task.
Resources can encompass:
 Physical resources
 Human resources
 Financial resources
 Intangible resources.
Physical resources
These types of resources are essential in performing basic operational activities.
They include:
 Equipment
 Raw materials
 Stock
 Technology
 Location.
Human resources
From an operational point of view, given that we are a ‘services industry’ the importance of
staff in delivering this service component is of upmost importance.
Human resources include:
 Physical number of staff
 Staff expertise
 Skills
 Knowledge.
These will be influenced by:
 Recruitment
 Probation periods
 Remuneration
 Incentive schemes
 Work environment
 Training and development
 Your leadership style.

24 Training Manual
Types of other human resources required for service operations may include:
 Customer databases
 Outsourced parties including third party service providers
 Service team members, which may include cross functional teams
 Other stakeholders which may be involved in an organisation’s service
 Value chain.
Financial resources
Whilst this is often not determined on an operational level, it is still important to recognise the
importance of this type of resource. In many cases budgets will have the greatest impact on
terms of financial resources available for operational managers.
Types of financial resources include:
 Cash
 Stock
 Equity
 Loans.
Intangible resources
Whilst these are not ‘seen’ they are certainly
important in the service industry.
These resources include:
 Reputation
 Good will
 Image
 Brand.

Training Manual 25
Factors affecting capabilities and resources

There are a number of factors that will need to be considered when determining capabilities
and resourcing needs.
Internal factors
 Directions the business wishes to take
 Target markets
 Nature and type of customers
 Service levels and standards
 Services and products provided.
 Equipment used
 The existing reputation and image of the business
 Budget
 Style of service
 Existing resources
 Volume of customers
 Promises made.
External factors
 The external business environment
 Customer expectations
 Emerging trends
 Changes in legislation and technology
 Availability of resources.

26 Training Manual
1.6 Obtain approval for the plan from relevant

parties and explain the plan to relevant work
teams
Introduction
An important aspect of the operational plan will cover the kinds of resources required in
order to make the plan effective and assist the organisation in achieving its objectives. The
plan will need to include proposals for these resources and these proposals will need to be
backed up with pertinent information and the contribution of specialists in relevant areas.
Within an organisation, most people are required to report to more senior managers, boards
or other authorities. In the case of people involved in developing operational plans, they will
be required to obtain approval from other staff members. This means the proposed plan
must be easily understood and able to be given wide distribution to all other staff members.
Development, presentation and approval of proposals

In the first instance the proposed plan should be submitted in draft form to the approving
personnel.
This should then lead to a consultation period where other staff
affected by the plan are given the opportunity to go through it
and make further suggestions. When this process has taken
place an agreement in principle can be achieved pending some
changes to the plan based on the received feedback.
How the organisation goes about doing this will have major
implications in terms of the quality of the feedback on the plan it receives. There should be
wide advertising of the fact that the draft plan is now available to view and that comments
and submissions on it should be directed in a clear and prescribed manner.
Once this process is complete, the draft plan can be formally signed off by the designated
authorities.
At this point the plan then becomes part of official policy and must be adhered to by all staff.
Communicating to operational team members

Once operational plans have been developed and approved, it
is vital that they are communicated to those who need to know
them.
Whilst most of the communication of operational plans will
come from departmental managers and supervisors, staff can
also communicate amongst themselves to ensure everyone
understands exactly what is required and the procedures to
follow to ensure the standards are met.

Training Manual 27
Whilst the intended audience of the communication process will vary depending on elements
of the operational plan that is being addressed and the respective roles and responsibilities
of staff, communicating the service operations plan to the team may include persons such
as:
 Management
 Supervisors
 Staff
 Other business units
 Suppliers
 Service coaches
 Service professionals
Elements of operational plan to communicate

Communicating the service operations plan may include communicating the organisation’s:
 Customer-focused strategy
 Operational guidelines
 Standards
 Policies and procedures
 Service recovery framework
 Work responsibilities and tasks
Communicating work responsibilities and tasks

One of the key aims of communicating operational plans is to detail how it will affect staff
members and other stakeholders, either as a collective or individually.
Whilst it is vital that staff have a clear picture of the overriding aims and strategies, it is
essential that they understand how they contribute towards the accomplishment of the
operational plan objectives.
Following are some areas that need to be explained to staff and other stakeholders.
Detail of the action to be taken
Firstly it is essential stakeholders understand the steps and activities that need to be
implemented for the operational plan to achieve the aim it intends attaining
These may set out in sequential fashion and contain a
varying degree of detail. Where the organisation allows
staff to use initiative and be self-directed, the detail will be
less than where the business adopts a highly prescriptive
approach towards what staff do, how they do it etc.

28 Training Manual
Resources available
This details the financial, human, physical and other
resources that have been allocated to this particular
plan.
Staff are expected to achieve the objectives of the
plan within these resource limitations
Allocation of work
This can include identifying specific individuals who
have particular responsibility for nominated tasks. This
allows each staff member to know with certainty what is expected of them
Timelines that apply
It is important to identify certain work has to be completed by, or identifies various progress
points for completion of sub-sets of work along the way to achieving a longer-term objective
KPIs
It is vital that goals that spell out how the team will determine the success of the plan are
identified and explained. They set out the criteria that will be used to judge success and
identify the dates and times when such as evaluation will occur.
Preparation for service operations
This includes all the activities required before the commencement of a service period. This
can include ordering procedures, set up techniques and general ‘mise-en-place’ activities.
Execution of service operations to customer
This is one of the most vital steps of a plan and will often be accompanied by specific SOP’s
(Standard Operating Procedures) that detail each step associated in the service cycle.
Roles and responsibilities of individual staff members
Each organisation will have different organisational requirements relating to the roles and
responsibilities of individual staff members which may include:
 Legal and organisational policy and procedures, including personnel practices and
guidelines
 Organisational goals, objectives, plans, systems and
processes
 Legislation relevant to the operation, incident or
response
 Employer and employee rights and responsibilities
 Business and performance plans
 Key Performance Indicators
 Policies and procedures relating to own role, responsibility and delegation
 Quality and continuous improvement processes and standards
 Client service standards defined resource parameters
Ongoing monitoring for adherence to organisation’s service standards
It is important to detail the manner in which quality assurance checks and monitoring
procedures will be conducted, either by staff members themselves as they execute activities
or by supervisors.

Training Manual 29
Communicating operational plan and work tasks

As can be seen above, both the operational plans and work tasks need to be shared with
those on whom they impact and those who have responsibilities under the plans.
Having written plans facilitates this process as each person can have their own copy of the
plan and this provides a consistency across all stakeholders in relation to what is needed
etc.
Opportunities to share these plans may include:
 A specific staff meeting to present and discuss the plan
 Regular staff briefings and roll call sessions
 Staff notice board
 Provision of electronic or hard copies of the plan.
 Town-hall sessions
Face-to-face presentation of the plan is the preferred option
ensuring that time is taken to:
 Explain all the requirements of the plan
 Explain why the plan needs to be achieved
 Explain the impact of not achieving the plan
 Putting required actions as described in the plan into their correct workplace context
 Soliciting questions
 Responding to questions and concerns
Communicating customer service standards

Communicating customer service standards can come in many different ways including:
 SOP’s
 Job Descriptions
 Task Sheets
 Orientation programs
 Formal meetings
 Staff briefings at the start and end of shifts
 Training sessions
 Observation and mentoring
 Informal communication during a shift

30 Training Manual
Giving colleagues access to information on standards

This aspect of the management of the delivery of quality service requires staff members
have ready and easy access to the standards on service and service delivery, that have
developed.
In some cases the establishment may have decided to also make these protocols public and
make them available to customers too.
Common methods of enabling such access include:
Mention of service standards at job interview
This should be standard operating procedure at all
interviews where people are being interviewed for a
customer contact position, that the organisation’s
customer service standards are mentioned, described and
explained.
Attention should be paid to highlighting the centrality of
this aspect of the job to applicants, leaving them under no
illusion about our orientation to service
Documentation of service standards
All the protocols agreed to must be ‘reduced to writing’. This means they have to be
entrenched in the establishment’s operations by being enshrined as part of the
organisation’s policies and procedures and operations manual.
Induction and orientation
All successful applicants must be given copies of all relevant
customer service expectations, standards and protocols as part
of their induction into the organisation.
This will involve supplying each new staff member with a copy
of our customer service policies, procedures and practices.
The person responsible for conducting the orientation must allocate sufficient time to this
aspect of the induction to enable full explanations, illustrations and demonstrations of
identified service levels and practices. In effect, this will underline the customer service
principles stated and outlined at the interview.
Office computer system
Most establishments will have a networked computer system (intranet), and it is usual to find
the full range of Policies and Procedures on this under some shared drive arrangement, so
all staff may access all information freely whenever required.
Printed copies in staff areas
Some properties also have a collection of policies and procedures in common staff areas.
This may be a staff room or in each of the Department Manager’s offices.

Training Manual 31
Holding regular team meetings

The term meeting refers to ‘a bringing together’. In business terms this generally means
bringing together different people with the common goal of reaching some type of objective
or outcome.
Most businesses will have meetings, using a range of meeting types and styles.
Regardless of the meeting, it is important that every meeting has a purpose and provides
value. It is not productive to have meetings for the sake of having a meeting, if there is no
need for it.
Traditionally meetings take place using direct face to face communication; however with a
range of communication technology becoming available every day, meetings can take
between people who are physically located in all corners of the world.

32 Training Manual
Work Projects
It is a requirement of this Unit you complete Work Projects as advised by your Trainer. You
must submit documentation, suitable evidence or other relevant proof of completion of the
project to your Trainer by the agreed date.
For all Learner Guide Assessment Activities identified in this Training Manual, you are
to prepare an operational plan for a hospitality or tourism organisation of your choice.
1.1. You are required to:
 Provide an introduction of the organisation you have selected including:
o Outline of the business
o Key products and services provided
o Prepare a Mission Statement for your organisation
o Identify key objectives for developing an operational plan
1.2 You are required to:

 Write down a list of the organisations and people that you consider would be
stakeholders in your organisation
 Briefly list the procedures you will use to encourage staff to continue to contribute
to the Business Plan.
 Explore the internet and other resources for organisations that you believe may be
of benefit to you in running your organisation
 Identify what information can be sought by these 'experts'

 Prepare an operational plan for your proposed organisation
1.4. You are required to:

 Identify possible risks that may impact on your operational plan
 Prepare a Contingency Plan to address these risks

 Identify the capabilities that impact your organisation
 Identify the resources that impact your organisation
 Identify factors that may impact the use of these capabilities and resources

 Identify the process of seeking approval for your operational plan
 Identify the tasks associated with discussing the operational plan with staff

Training Manual 33

34 Training Manual
Element 2: Plan and manage resource

acquisition
2.1 Develop and implement strategies to ensure
that employees are recruited and/or inducted
within the organisation's human resources
management policies, practices and procedures
Introduction
Of all the resources that an organisation acquires, none is more important than its people.
These Human Resources play a pivotal role in ensuring that an organisation has the
necessary talent to properly utilise all its other resources. In order to achieve this, the
organisation must have effective strategies in place to ensure that the very best people are
attracted to the organisation and they are given a proper induction which enables them to
become a productive part of the workplace.
Staff members involved in the management of operational planning need to be aware of
where these functions are covered within the Human Resources section and the prevailing
policies and procedures which cover them. This is important as any planning related to the
acquisition and development of human capital must be carried out with the parameters this
will impose.
If for example, if the operational plan says that as part of the organisations expansion 100
new staff must be recruited, then the planner needs to appreciate how long this is likely to
take and what resources will be required to carry it out.
Develop Human Resources strategy

Key elements of a Human Resources strategy to be determined include:
 Organisational Chart and Structure of the business
 Key Personnel
 Labour Requirements and Skills
 Staffing Strategies
 Professional Advisers
 Staffing Controls.
One of the most important “ingredients” in a successful business is the management and
staff. In a start-up business you have the advantage of a clean slate without carry over staff
from the existing business who may find change difficult or who may have workplace
practices that do not conform to your new operation.

Training Manual 35
Organisational Chart and Structure of the business/Key Personnel

A good starting point is to analyse the tasks required to complete the activities of the
business. From this you can identify the number of staff required, key personnel, job roles,
and whether one employee can undertake one or more of the required roles. In small
business, it is quite a normal occurrence to find one person “wearing several hats”.
A diagram is a useful tool to depict the roles and hierarchy of within the organisation. Key
personnel can be identified on the chart. When new employees commence later, a copy of
the Organisational Chart of the business is a valuable induction tool. Many large
organisations clearly display the Chart in their foyer or other public place within the business.
For each management position you will need to write a summary of their background, skills
and experience, specifying any skill gaps or weaknesses and how you plan to overcome
these deficiencies.
Labour Requirements and Skills
It is necessary to prepare a Job Description for each job, listing the duties of the position,
who the person reports to, and the remuneration to be offered. Are the jobs full or part-time?
Could they undertaken by contractors rather than employees?
You will need to research the regulations and awards which apply to your staff. Consider the
following:
 How to attract quality, skilled, experienced people, recognising that these people will
expect a higher payment?
 Is it preferable to employ younger, inexperienced staff and train them to suit your
business?
 What people skills and customer service skills are
we looking for in our employees?
 Why would staff want to work in your business?
 What can we offer them?
 How will we offer career paths and further
development?
Staffing Strategies
It is important that the business recruit the best persons to fulfil the positions within the
business. A successful business will have staff that are productive, co-operative, take
responsibility for their own efforts and work as a team.
Your Business Plan should reflect decisions that you have made in respect to:
 Recruitment – will you rely on media advertising, referrals, educational institutions, and
friends of current employees or your family?
 Probation periods – a trial work period may last from one day to six months
 Remuneration – will you pay hourly, weekly? Are you offering casual or ongoing
employment? Are your rates competitive so that you select the right employees? Make
sure you allow for legal required entitlements

36 Training Manual
 Incentive schemes – would you consider a sales bonus, or

some other form of incentive?
 Work environment – both physical and social environments
need to be considered. Physical must comply with
regulations for OH&S and other government legislation. A
friendly, co-operative workplace where teamwork is
practiced can lead to greater productivity and loyalty
 Training and development – what induction and regular ongoing training activities will
your business provide?
 Your leadership style – will it be autocratic or democratic?
Professional Advisers
Your Business Plan should also name any external advisers and how they will assist you
that you will consult with initially then day-by-day.
These can include:
 Accountant
 Lawyer
 Bank
 Insurance agent or broker
 Industry organisations.
Staffing Controls
It is advisable to regularly measure and review labour costs in dollar terms and as a
percentage of sales revenue.
Labour costs may include on-costs such as:
 Superannuation / retirement pension
 Holiday leave loading
 Medical insurance premiums
 Long service leave
 Training costs
 Other incentives and benefits.
There are normally increases in wage rates with inflation that will increase the dollars paid to
employees each year, but sales revenue should increase similarly. To show a more accurate
picture than just using dollar amounts, calculate the percentage of labour costs to sales
revenue. This reflects a truer indication. The formula is:
Total Labour costs x 100
Sales revenue
If the percentage is increasing, you may need to evaluate the performance and productivity
of each of your employees.
Formal, documented Performance reviews are common practice in government and large
organisations. Traditionally, small business has used verbal on-the-spot reviews, particularly
when praising or rebuking an employee. Gradually small businesses are moving towards
more formal practices.

Training Manual 37
2.2 Develop and implement strategies to ensure

that physical resources and services are
acquired in accordance with the organisation's
policies, practices and procedures
Introduction
As well as Human Resources, the organisation also need to carefully consider the physical
resources which will be required to ensure the vision within its operational plan is attainable.
hospitality and tourism organisations require significant physical resources to operate and
these need to be acquired in a manner which is efficient to the organisation, results in quality
products/services and is done in accordance with correct policies and procedures.
This function is usually referred to as the purchasing or procurement process.
The purchasing process

In the same way that human capital is sourced via careful planning so too should the
procurement process. Some organisations have their own discrete sections which are
responsible for this function, whilst others rely on individual staff in their own functional areas
to acquire resources.
Policy and procedures
An organisational policy covering physical resource acquisition will apply to all Directors,
Managers and employees of an organisation and may also include contractors operating on
behalf of the organisation.
Policy details will vary from organisation to organisation but will bind members of the
organisation to ensure that their purchasing activities are:
 Legal and adhere to legislative requirements
 Accountable and subject to regular audit
 Ethical, environmentally sustainable and socially
responsible
 Financially effective for the organisation
 Able to maintain the organisation’s ability to
exploit technological, commercial and
organisational changes as they arise
 Capable of identifying and managing risks in the
purchasing environment
 Open to ongoing continuous improvement via input from all staff
 Carried out by staff with the correct delegations or authorisations.

38 Training Manual
The purchasing process

Within an organisation, purchasing activities will be carried out within the following steps:
 Need identification – what is the resource required for? A hotel may need to replace
bed linen periodically and this forms a need which must be satisfied.
 Product identification - what product currently available on the market best suits the
need identified above. Who are the linen suppliers and what is the cost versus quality
issues that need to be considered?
 Identify purchasing team – who will be making the purchase. This should already be
stated within the Purchasing Policy.
 Specify technical specifications – what are the required technical specifications to
meet organisational standards.
 Ensure budget available – all purchases must be made within the correct financial
delegations and be drawn from authorised allocations.
 Research potential suppliers – after establishing the
required product and its corresponding specifications,
suppliers within the market need to be identified. At
this point, costs and conditions can also be
considered.
 Solicit bids – in the case of high value purchases,
suppliers can be invited to supply bids. This may not be necessary for lower value
purchases, where standing offers with suppliers may be utilised or purchases made
without a competitive bidding process.
 Award contract – where competitive bidding is undertaken the final contract for
supply of the physical resources is awarded.

Training Manual 39
2.3 Recognise and incorporate requirements for

intellectual property rights and responsibilities
in recruitment and acquisition of resources and
services
Introduction
In the process of acquiring human and physical capital, an organisation needs to be aware
of the importance of its responsibilities in dealing with intellectual property rights.
What is Intellectual Property?

Intellectual property refers to creations of the mind such as inventions, literary and artistic
works; designs; and symbols, names and images used in commerce.
Intellectual property generally falls into one of five main
categories:
 Copyright - this describes the right that a creator has
over their own works. Included within copyright are
books, music, paintings, sculptures, films, computer
programs, data bases, advertisements, maps and
technical drawings.
 Patents – these are the rights granted for an invention.
The Patent owner can decide who uses this invention
and will make technical information available in the
patent document.
 Trademarks – this is a sign which distinguishes the goods and services of one
organisation from another. An example would be the McDonalds golden arches or
Hungry Jack’s burger symbol.
 Industrial designs – which may cover the aesthetic or ornamental features of an item
such as its shape, colour or patterns upon it. Motor car designs might be covered in
this way.
 Geographical indications – these are used on
products which have a specific origin based on a
region or have characteristics or qualities which are
based on the region. An example is Champagne
which as a sparkling wine, originates from a
particular wine growing region in France and this is
synonymous with the product.

40 Training Manual
The implications for resource acquisition

Organisations need to be aware of intellectual property issues in terms of acquiring their own
human and physical resources.
In the case of recruitment, we need to ensure that this process is conducted in a manner
consistent with intellectual property laws and we do not infringe on this either through our
advertising or communications with potential staff.
When purchasing products and services we need to
understand the limitations that intellectual property laws
place on us. This may relate to the use of something like
software which may require us to continue showing a
trademark, or acknowledging copyright on documents we
use. In the case of recruitment, new staff may still be bound
by intellectual property considerations to share information
from a previous employer or be able to work within certain
areas due to these restrictions.

Training Manual 41
Work Projects
For all Learner Guide Assessment Activities identified in this Training Manual, you are to
prepare an operational plan for a hospitality or tourism organisation of your choice.
 Detail a Human Resources strategy you would require to support your operational
plan including:
o Organisational Chart and Structure of the business
o Key Personnel
o Labour Requirements and Skills
o Staffing Strategies
o Professional Advisers
o Staffing Controls.

 Outline a purchasing strategy you would implement to purchase resources to support
your operational plan

 Identify any intellectual property issues/concerns you may need to address

42 Training Manual
Element 3: Monitor and review operational
performance
Element 3: Element 3: Monitor and

review operational performance
3.1 Develop, monitor and review performance
systems and processes to assess progress in
achieving profit and productivity plans and targets
Introduction
In order for a hospitality organization to be successful in being able to provide the highest
quality of service whilst still making an adequate financial return for investors, it is vital that
every aspect of the operation is operating to the best of its ability.
Therefore management must constantly assess and evaluate the performance of all areas
that contribute to the functioning of the business.
Given that staff are the greatest contributor of service in a
hospitality organization, it is essential that management must
ensure staff are performing to the best of their ability.
In order to do this, staff performance must be assessed and
evaluated to find out:
 What is being done correctly
 What needs improvement, by identifying causes and remedy
Aim of evaluating performance

It is important to note, monitoring and evaluation performance is not about ‘telling people off’.
It is about trying to improve all areas of an operation.
Aims of monitoring and evaluating performance include:
 Identifying areas which are being done well and rewarding accordingly
 Identifying where areas of operations can be improved through:
o Identification of problems
o Understanding the cause
o Finding suitable solutions
o Selecting the correct solution
o Implementing and monitoring the solution

Training Manual 43
performance
Features of a performance management system

A performance management system embraces a set of monitoring activities which can be
used in organisations to achieve business goals and objectives.
Performance management systems rely on the following key features to be effective:
 A clear link with goals and objectives in the operational plan
 Supported by a positive work culture and staff support and training
 Monitoring performance via ongoing observation, discussion, measurement and
analysis
 Effective leadership which creates and communicates expectations.
An organisation needs to develop a system which will effectively measure each of these
outcomes and enable early intervention where required. This can be done through
consideration of three levels:
Level 1
This is the inputs we are employing to deliver the organisation’s service. These include the
human and physical resources employed along with any other assets employed. These are
the enablers which enable outputs to be produced.
Level 2
This represents the processes and activities of the
organisation which are our outputs and can be
measured against:
 Financial performance
 Staff performance
 Quality standards
 Service delivery
 Productivity.
Level 3
This is the outcomes and represents the mission and business critical results and the extent
to which they are supported or hindered by what is happening at level’s 1 and 2.
There are a number of different tools which can be used to measure the above.

44 Training Manual
performance
Steps in evaluate performance of operations

The following are the basic steps when evaluating performance of operations:
Work out what needs to be evaluated
Not everything can or should be monitored and evaluated all the time.
Some things will have been recently reviewed and are progressing well. Some systems
generated reports will show that goals are being achieved according to plan and therefore no
further investigation is required.
Generally, things to be monitored include:
 Areas showing early warning signs things are not
going according to plan
 Areas of critical activity to the organisation – high
revenue raising streams, areas subject to intense
legal scrutiny
 Areas due for scheduled review.
Select monitoring and evaluation methods
The methods chosen for monitoring and evaluating performance are generally built into the
planning process. It is a good idea when planning to keep in mind the reporting on the
success or otherwise of goals. It is frustrating to set a goal but not be able to say whether or
not it has been achieved.
There are many tools or methods available to monitor progress or outcomes of work
operations.
Some examples are:
This is where you decide how to measure your progress including:
 Reports – statistical, financial, written or verbal
 Obtaining customer feedback – verbal or written, individual or focus groups,
structured or unstructured in format
 Using a pretend customer – getting someone to pretend to be a customer in your
premises and then critically feeding back what it was like, what could be improved
etc.
 Walking about the premises and observing what takes
place and how it could be improved, what could be
improved
 Use of checklists to tick off whether or not required
service points are being adhered to by front line staff
when they interact with customers
 Brainstorming sessions where staff are asked to contribute any thoughts or ideas
they may have about improving a particular aspect of service, or about introducing a
new initiative
 Staff input and review – obtaining ‘grass roots’ input to potential and actual problems,
and asking those directly concerned about how the situation can be resolved.
 Observation
 Surveys

Training Manual 45
performance
 Checklists
 Flowcharts
 Benchmarking.
Professional monitoring tools
Tools that may be used to examine performance issues may
include:
QC 7 Tools
• Cause and Effect Analysis
• Flow Chart Check Sheet
• Control Charts
Management and Planning Tools
• Root Cause Analysis
• Plan-Do-Check-Action (PDCA)
• Priorities Matrix
• Process Decision
• Activity Network Diagram
• Affinity Diagram
• Matrix Diagram
• Program Chart
Tree Diagram Problem Solving Models
• Five Whys
• Process Improvement Models
RATER model
This model consists of the following areas that customers generally consider to be important
when they use a service :
• Reliability – ability to provide the service promised consistently, accurately, and on
time.
• Assurance – the knowledge, skills, and credibility of staff; and their ability to use this
expertise to inspire trust and confidence.
• Tangibles – the physical evidence of the service provided. This could be offices,
equipment, employees and the communication and marketing materials that are
used.
• Empathy – the relationship between employees and customers.
• Responsiveness – ability to provide quick, high quality service to customers.

46 Training Manual
performance
Compare what is happening with what should be happening

Here you review and analyse what’s actually happening against some benchmark.
Quite simply this includes:
 Comparing actual performance against key
performance indicators and/or service standards set
 Comparing actual performance against benchmark
indicators, which can include industry indicators or
performance levels of other branches
Organisation’s key performance indicators
Organisation’s key performance indicators are a set of metrics which organisations can use
to measure their performance of service operations.
Key performance indicators may include:
 Turnaround times
 Output rates
 Quality rates
 Customer feedback
 Equipment usage rates
 Lead times and down times
 Compliments-complaints ratio
 Benchmark indices
Take appropriate action
This involves making the necessary adjustments to improve the level of service, productivity
or customer satisfaction.
Depending on what is being monitored, involving staff in all or some stages of the monitoring
process is likely to achieve better results.
The different types of corrective action will be explained in more detail in the next section.

Training Manual 47
performance
Obtain feedback from key stakeholders, customers and team

We have seen ‘customer-focus’ is critical to any successful business.
On a regular basis it is important to review customer satisfaction with your service delivery.
Where there is some ‘emergency’ in relation to service such as frequent and animated
complaints about service, reviews should be more regular.
This should be done, as far as possible, using verifiable data, rather than relying on
subjective impressions and hearsay from other staff.
To obtain the information on which to base our customer-focus we need to:
 Undertake market research – to actively seek out what
customers want
 Actively ask for feedback from customers who have
experienced what it is our venue has to offer.
 Asking customers for their feedback is a brilliant thing
to do. It is relatively cheap to do and it enables input
from actual customers and is immediate.
The critical thing about this feedback is it must be fed back to
be incorporated into future plans and standards.
Objectives of collecting and reviewing customer feedback
Reviews of customer service strategies should seek to achieve the following objectives:
 Identify the extent to which customers and others are satisfied with service delivery
 Identify the departments or areas in which there is satisfaction with service delivery
 Identify the precise areas within departments or areas where there is dissatisfaction.
It is always easier to identify dissatisfaction more precisely than it is to identify areas
of satisfaction
 Identify the precise nature of any dissatisfaction. It may be with product, services,
facilities, timing, access or information
 Identify the staff involved in both superior and inferior levels of service
 Identify if there is a certain time of the day/week
when service levels are reduced or at their best
 Discover what can be done to improve a less than
optimum situation
 Identify what needs to be done to maintain the
present satisfactory level of service delivery.
It is especially important to look for trends – one-off complaints or dissatisfaction may not be
indicative of anything whereas a series of complaints is likely to be more instructive.

48 Training Manual
performance
The review should be as wide-ranging as possible, meaning it should involve:

 Regular customers
 New customers
 Customers who are one-off customers
 Corporate customers
 Staff
 Management.
The review also means you will need to actively solicit input.
Methods of collecting customer feedback

There are a variety of methods management and staff can use to collect feedback from
customers.
Regardless of the method used to collect information, it is vital:
 The form is designed to gather important information about all aspects of service
delivery
 The format is easy to use for the customer
 The form is presented to the customer when it is
going to cause the less inconvenience
 The customer is thanked for their feedback, whether
in the form of a gift or other suitable reward.
There are several ways to seek feedback which will be
explored.
Direct communication from customer to staff
This method is the most effective method to collect customer feedback about their
experiences because:
 It demonstrates to customers that staff value them and any feedback or suggestions
they many have
 It builds relationships between staff and customers
 Verbal communication enables large amounts of
feedback to be exchanged
 Follow up questions can be asked for further
information or to ensure they understand the customer
comments
 It is the easiest method for customers as it does not require them to write answers on
forms
 If the customer feedback is negative, it allows staff to apologise, understand the
complaint, find a mutually agreeable solution for action can be taken.
The best time to undertake this method of collecting feedback is normally at the end of a
‘service activity’.

Training Manual 49
performance
Collecting feedback does not always have to be conducted by management. Most

organisations will utilise line staff to also perform this function as they have the greatest
contact with customers throughout their ‘experience’.
This requires front-line staff to inquire about the customer experience by being proactive in
ascertaining how they enjoyed their service experience. The types of questions asked
should use a variety of open and closed questions to gather information.
Where possible information collected should be done in a manner which appears informal
and where the customer is at ease. By introducing questions in general conversation, the
customer is more likely to give truthful answers as opposed to when they feel like they are
‘under the spotlight’.
Observations
Whilst the best form of collecting information is from direct conversations with customers,
valuable information can be also collected by watching or listening to customers.
Watching people and their body language can give very accurate information which they
might not otherwise get through direct interaction.
Normally customers, like all people, like to avoid
confrontational or uneasy situations and therefore will be
less inclined to provide negative feedback using direct
communication.
By observing body language and listening to comments
that customers show or say to others, is a good way to
get accurate information which they would feel
uncomfortable sharing with management or staff.
Guest comment cards
These are traditionally given to customers at the end of the service activity for them to
complete before they leave the premises.
It is also acceptable to offer these cards to customers and ask them to complete them and
return them.
These cards should be designed with a balance between customer ease of use and quantity
and quality of information sought.
Online feedback
This is a good method to use after the customer has left the
premises and has time to complete the form.
This can include a ‘Tell us what you think’ facility or some
other ‘Customer Comment or Feedback’ option.
Where this is used it is important someone checks this on a
regular basis and responds to the complaint or feedback etc.
Simply using an automatic response message is not enough.

50 Training Manual
performance
Meetings
Whilst the information collected in this method, does not directly relate to customer
feedback, this feedback is extremely vital to identifying strategies for operational
improvement.
Most departments will have regular meetings, whether formally scheduled at a specific time
each week or in the form of staff briefings and reviews for each shift. In addition managers
will participate in meetings involving all departments within a hotel.
During these meetings, detailed feedback will be given to identify both positive and negative
aspects of their performance and areas for improvement will be addressed.

Training Manual 51
performance
3.2 Analyse and interpret budget and actual

financial information to monitor and review
profit and productivity performance
Introduction
Financial performance is a critical part of assessing the overall success of our plans. Every
aspect of the organisations performance will be reflected in financial terms and this is a
critical thing to monitor.
We need to consider the information that can be provided by our budgets and financial
statements and how we interpret this to assist us in our planning processes
Interpretation of financial information is required to measure the success or otherwise of
trade for the period in question and to plan future action.
Monitoring financial performance

Financial analysis is also referred to as:
 Financial statement analysis
 Accounting analysis
 Analysis of finance.
It refers to an assessment of a company’s, business unit’s or project’s viability, stability and
profitability.
Financial analysis is usually performed by professionals who prepare reports using ratios
calculated using the information extracted from financial statements and other reports.
Categories for monitoring financial performance

Financial performance exists at different levels of the organisation. This page is mostly
concerned with measuring the financial performance of the
organisation as a whole, and of measuring the performance of
key projects.
Traditionally, financial performance measures are split into the
following categories:
 Profitability
 Liquidity / working capital
 Gearing
 Investor ratios.

52 Training Manual
performance
Steps to monitor financial performance

To monitor actual and planned financial results for a given time period, department manager,
general managers and owners depending on the size of the organisation will be provided
with appropriate reports from the financial system that summarise both the actual and
planned financial information.
The steps commonly associated with financial analysis include:
 Select financial analysis method
 Conduct financial analysis
 Identify significant variances
 Determine the cause of significant variances
 Take corrective action as required.
Methods to monitor financial performance

The methods chosen for monitoring financial performance are generally built into the
planning process. It is a good idea when planning to keep in mind the reporting on the
success or otherwise of goals. It is frustrating to set a goal but not be able to say whether or
not it has been achieved.
There are many tools or methods available to monitor financial performance including, but
not limited to the following financial analysis methods:
 Horizontal
 Vertical
 Ratios

Training Manual 53
performance
3.3 Identify areas of under-performance,

recommend solutions, and take prompt action
to rectify the situation
Introduction
Regardless of the nature of the business or the strength of the people within it, problems will
arise at some stage. It doesn’t matter how well you may prepare for any eventuality,
problems will arise at unexpected times and caused by a variety of reasons or
circumstances.
Regardless of the type of problem that arises, it is the role of a manager or supervisor to
ensure that they are solved where possible in a timely manner, causing minimal impact on
staff and customers or to ensure any negative effects are minimalised and contained.
The management of problems is one of the key and most important requirements of
managers.
It is all well and good for staff to have roles and responsibilities
which they know about, and to receive all the motivation, support
and assistance in the world, but if they are not able to effectively
and safely complete what is expected of them, it not only leads to
disappointment for the customer, but can greatly impact other
team members who may be relying on them.
Therefore it is essential some mechanisms are put into place to monitor the progress of staff
performance towards individual and team objectives.
It is important to note that it is not just the responsibility of managers and supervisors to
check the progress of staff. In many cases individual staff members themselves will need to
monitor and track their progress, as it will often impact others in the team.
Corrective actions
Corrective actions are a set of planned activities or actions implemented for the purpose of
resolving problems.
The different types of corrective actions will be discussed in this section.
Before we look at various corrective actions, it is firstly important to:
 Identify problems that exist
 Understand reasons for the problems occurring

54 Training Manual
performance
Identify types of problems requiring corrective actions

The types of problems that may arise in an organisation are endless but common problems
may relate to:
Performance problems related to service operations may include:
 Product or service failures
 Long wait times for service
 High volume of customer traffic
 Inaccurate or conflicting information provided to customers
 Lack of follow-up action by customer care representatives
 Aggressive cross-selling or up-selling by customer service
representatives or sales persons
 Lack of resources required to implement service operations
 Resource constraints
 Conflicts in priorities
 Lack of information
 Supplier delays
 Differences in opinion
 Interpersonal conflict
 Hazardous events
 Time constraints
 Electricity shortages
 Bad weather
 Shortfalls in expected outcomes
 Poor staff performance
Sources of ineffective performance

Before any corrective action can take place it is worth considering the likely causes of work
problems.
In particular, reason tells us that an employee who has been performing well for some time
does not simply ‘turn bad’. There must be a reason for the decline in performance.
We need to consider the source of ineffective work performance because in some instances
the reason might lie within our organisation (such as harassment), in which case, legally, it is
the organisations responsibility to fix it.
Similarly, management can’t hope to resolve the ineffective performance problem if they
don’t understand its many sources.

Training Manual 55
performance
Employee qualities
These sources stem from the employee themselves and can include:
 Problems of capacity, where the employee does not have the required aptitude or
orientation for the tasks involved in the job, defects of judgement or memory
 Family related problems, such as marital problems, children, elderly dependant
relatives, money problems, isolation from family
 Psychological problems, such as drug abuse,
gambling, irrational fears, depression, aggressive
behaviour stemming from self image problems
 Physical problems, such as lack of energy, restricted
movement, pain or illness.
Organisational sources
The origin of poor performance in the employee can sometimes be attributed to the
organisation. These could include:
 Problems with higher decisions and policies, such as a person placed in the wrong
position, insufficient organisational action over a grievance, organisational over-
permissiveness
 Impact of supervisors, such as leadership style, bad communication or instruction,
inappropriate managerial standards or criteria, discrimination and a lack of managing
diversity
 Problems with peers, such as harassment, bullying,
problems with team cohesion and acceptance,
discrimination and hazing
 Problems from the work context, such as geographic
location, bad physical work environment, unsafe
conditions and work processes, problems with the way
the job is performed.
External sources
These are problems an employee can have that stem from society and its values. These
include situations where society’s values clash with the job:
 Clashes with moral or religious issues - working on certain days, assisting guests
with certain unsavoury requests
 Changing economic conditions - economic uncertainty of
rising interest rates or impending legislation that appears
to create job insecurity.

56 Training Manual
performance
Considering corrective action options

Once the problem has been identified you need to:
 Identify your desired outcomes.
For example, if you decide the problem is one of staff absenteeism through low
morale, then your desired outcome will be to reduce the level of absenteeism to a
level you specify and to increase morale.
 Also consider outcomes from an operational and a customer service perspective.
Look at what alternative options you have for solving the problem.
Sometimes there will only be one real option, whilst at other times there are a variety
of options to pick from.
Options can be canvassed by:
 Meeting with staff to jointly come up with a solution
 Researching options
 Seeking expert advice
 Speaking to your supervisor
 Evaluating the alternatives and selecting the most
suitable option.
Types of corrective actions

Quite simply, types of corrective actions taken to improve service operations may include:
 Improvements in the design of products or services
 Reviewing the allocation of resources for service operations
 Tweaking standard operating procedures to improve efficiency
Initiate corrective action

Corrective actions taken within an operation workplace context
can be seen as either short term action or long term action.
Where service is paramount, it is sometimes necessary to take
short term action to solve a problem until it can be looked at
more closely and the problem dealt with more thoroughly.
Short term corrective action
Reasons for this include:

 Pressure of work often means there just isn’t time to stop and analyse the problem
more carefully and in more detail
 To provide the necessary or expected services to the customer
 To meet OHS requirements
 To deal with a complaint
 To get staff working together again

Training Manual 57
performance
 To give you time to analyse and work through the problem at a later date.
Usually these stop-gap measures are not satisfactory in the long term as they are often more
costly and they do not prevent the problem from recurring.
As the manager of an area, it is important you consciously decide when to take short term
action and when this would be inappropriate.
If you decide to take the short term approach, then it is a good idea to:
 Make a definite time to look at it more thoroughly later on and to decide who to
involve in further problem solving
 Inform staff and management it is a short term solution which will be dealt with more
thoroughly at a specified time
 Cost the implications of tackling the problem this way.
Long-term corrective action
There may be a number of corrective changes to be made including, but certainly not limited
to:
Management changes
 New management
 Change in orientation to service
 Setting of some new directions in relation to several
other factors
 New management focus.
Organisational re-structures
 Change of personnel structure
 Elimination of positions
 New job roles
 Changes in job roles
 New knowledge or skills.
Introduction of new equipment
New equipment means:
 Possible interruptions to operations for installation
 Training for staff
 Requires that staff can explain the new equipment to
customers
 Changes in job roles
 Changes in procedures
 Changes to workflow.

58 Training Manual
performance
Recruitment practices
 Need to establish comprehensive job descriptions and job specifications
 Seeking of new knowledge and skills
 Change advertising strategy
 Revised interviewing and selection process
 Revised selection criteria.

Training Manual 59
performance
3.4 Plan and implement systems to ensure that

mentoring and coaching are provided to
support individuals and teams to effectively,
economically and safely use resources
Introduction
Where groups of individuals are underperforming there are a number of avenues that
must be considered to improve and correct any issues and make staff become more
productive.
Signs of identifying the need for training, mentoring or

coaching
 Observation – viewing an inability of a person to undertake job tasks or constantly
making mistakes
 Staff behaviour – they may be reluctant, frustrated, stressed or
not motivated in starting or completing a task
 Direct request from a person – whether a direct request or
repeating asking for help
 Customer complaints – customers may have complained about a
person’s behaviour or performance
 Productivity reports – reports may show that a person is unable
to perform tasks to a set quality or quantity standard
 New tasks or job role – new tasks and responsibilities may
require staff to receive additional resources or training.
Types of training
The range of possible training opportunities is endless. However there are a large number of
common options that are available including:
 Internal training and professional development
 External training and professional development
 Coaching
 Mentoring
 Supervision
 Formal or informal learning programs
 Work experience and exchange opportunities
 Personal study
 Career planning and development
 Performance appraisals
 Workplace skills assessment

60 Training Manual
performance
 Quality assurance assessments and recommendations

 Change in job responsibilities
 Opportunity for greater autonomy or responsibility
 Formal promotion
 Chance to perform in a higher position in a caretaker mode whilst the incumbent is away
 Becoming a mentor for someone
 Leading a training session for another department or group of new staff
 Being sent to a conference or similar as the establishment’s representative.
Mentoring
It is a relationship between two people where a more experienced person works in
collaboration with a less experienced person to give the less experienced person the benefit
of their knowledge, experience, perspective, contacts, insight and wisdom.
The person providing the mentoring is called ‘the mentor’.
The other person in the relationship may be called ‘the mentee’, ‘the mentoree’, ‘the learner’
or ‘the person being mentored’.
Purpose of mentoring
The exact nature and scope of the mentoring arrangement will emerge as the relationship
between mentor and learner develops, however there is no doubt mentoring is a valuable,
effective and powerful learning strategy.
Traditional reasons why organisations support mentoring include:
 To facilitate the provision of advice to the learner
 To enable personal development and growth
 To optimise staff retention
 To give the learner a sounding board for ideas
 To save the mentoree from having to make the
same mistakes others have made
 To initiate a network for personal learning and
contact
 To assist people in their career planning within the business
 To empower the learner through the self-confidence, knowledge etc gained as part of the
mentoring arrangement
 To encourage the ultimate independence of the learner
 To demonstrate support for those in the organisation who have responsibilities.
Looking at the above it should be obvious ‘mentoring is not telling’. The nature of the
relationship is such:
 The mentor provides advice, insight, suggestions, options, identification of unknown
factors and information drawn from their experience
 The mentor tries to explain impacts, effects, outcomes, rationale for decision making and
relevant considerations

Training Manual 61
performance
 The learner is responsible for the ultimate decision

 The learner is responsible for implementation
 The learner can contact the mentor for input and advice at any time.
Duration of mentoring
There is no set time for a mentoring relationship.
It is usually gaol-based to the extent that when the identified goals have been achieved, the
relationship ends.
Common timeframes for mentoring relationships are 6 – 12 months with some stretching out
to 3 years plus. In these longer relationships there are usually multiple goals to be worked on
and both parties ‘roll over’ their relationship into the next set of goals because they enjoy the
relationship, find it rewarding and see benefits from it.
Coaching
This is where you deliver on-the-job training to individuals and groups using a wide range of
training options including demonstration, discussion, lectures, case studies, role plays,
games, exercises, excursions, guest speakers, presentations, provision of explanations,
problem solving and job rotation.
It is important to remember that these strategies must be focussed on the learner and their
needs.
Supervisors can often fall into the trap of using delivery methods that suit them rather than
ones that suit or will benefit the learner.
Demonstrations
Demonstration is a very common and popular coaching technique.
When demonstration is required, the following rules provide an effective series of guidelines:
 Go through the tasks slowly and accurately
 Get it right first time
 Provide verbal explanation when and where
necessary
 Ensure all procedures used in demonstrations
adhere to organisational policies and procedures
 Ensure all demonstration of equipment complies
with the manufacturer’s instructions.
Discussion
This can be a useful technique where some new attitude needs to be explained, it is deemed
important for learners to draw conclusions, or where information-sharing is required.

62 Training Manual
performance
Lectures
Also known as ‘chalk and talk’ this method has little place in a
workplace context. It is an ‘inactive’ method of conveying
information that sees learners as passive recipients. It has
some limited use in the provision of ‘need to know’
information such as safety information, and compliance
information. Where it is used it should be supplemented by
other methods such as exercises, or some form of practical
application.
Case studies
This is where you prepare a written scenario depicting a set of
circumstances and ask learners to respond to them. You ask them to describe and defend
what would they do, why, when, where, etc.
It is not essential for there to be one right answer – there may be a number of suitable
responses and, as the supervisor, you must be able to determine which ones are acceptable
and which ones aren’t).
Role-plays
These can be useful in learning related to customer service.
The roles must be fully described and explained to those participating, and those who are
not involved must be given the role of observers.
After the role-play has been finalised a debriefing should take place to identify what went
well, what needs to be changed etc. The observers function is to feedback their impressions
of what they observed.
Games
Supervisors may elect to play a game with their learners in order to get a point across, or to
add something different to the training. Games can be especially useful when seeking to
improve communication skills, to create teamwork and to hone thinking skills and ability.
Exercises
As the supervisor, you will need to prepare these written
exercises. They are especially useful in applying
information to specific workplace issues, problems and
activities. Make sure that any terminology used is
workplace specific, and you use appropriate workplace
forms and documentation in all instances.
Excursions
It can be hugely beneficial to take staff out of the workplace to do something, somewhere
else. The excursion may be to head office, another venue in your chain, a competitor,
supplier or some government authority.
All excursions should have a definite purpose with learners having questions they need to
answer and certain information they must obtain. A debriefing after the excursion is also a
necessity.

Training Manual 63
performance
Guest speakers
These are often overlooked by but they are a great source of learning. Guest speakers add
a new face to learning, provide another point-of-view, and provide up-to-date information.
You will need to arrange these people and must ensure they are given an outline of the
topics you want them to cover, the amount of time they’ve got Guest speakers can include
representatives from government authorities, suppliers, head office, other venues, subject
specialists including other staff. Ensure you stay for the entire period the person is speaking
so that you know what they said.
Presentations
This can be especially useful where staff are required to interact with customers and others.
Presentations require staff to deliver a presentation to others who play the role of customers,
etc.
The presentation may be, for example, a sales presentation
involving greeting the customer, determining their needs,
providing product information, selling the benefits of the
product and closing the sale.
Providing explanations
This is similar to ‘Presentations’ but commonly targets staff
with roles requiring them to explain things to customers.
An example would be requiring a waiter to provide practice explanations to customers about
the dishes on the menus; front office staff might be required to explain the in-room facilities;
spa staff would be asked to describe the treatments available.
Problem-solving
These are variations on ‘exercises’ and require you to set a
realistic workplace problem for staff to work on.
A great benefit of this approach is new solutions never before
considered can be revealed or generated. It is important to make
these problem-solving exercises as realistic as possible or they
lose their effect.

64 Training Manual
performance
3.5 Negotiate recommendations for variations to

operational plans and gain approval from
designated persons/groups
Introduction
Continuous improvement aims to explore and identify ways in which to improve the business
for the benefit of managers, staff and most importantly, customers. Continuous improvement
means changes are taking place, whether big or small.
Continuous improvement means to actively seek ways to improve, each and every day.
Frontline managers have an active role in implementing the continuous improvement
process to achieve the organisation’s objectives.
Their position, closely associated with the creation and delivery of products and services,
means that they have an important role in influencing the ongoing development of the
organisation.
At this level, work will normally be carried out within routine and non–routine methods and
procedures, which require planning and evaluation, and leadership and guidance of others.
The concept of continuous improvement (CI) has taken hold in many businesses across the
world and has been seen as an extension of the Total Quality Management (TQM) concept
to the extent that the focus is on ‘improvement’ as opposed to ‘cost containment’ as the
strategy for maintaining the ongoing viability and success of
the business.
Total Quality Management aimed to achieve a situation
where all products and services supplied by an organisation
were free of defects.
This section will outline continuous improvement and
provide some background against which continuous
improvement thinking needs to occur.
What is continuous improvement?

Continuous improvement is a way of thinking and acting in a business environment that
seeks, as the name implies, to continually improve the way the business operates.
Continuous improvement has roots in the Japanese term ‘kaizen’ which translates as
‘change for the better’ (‘kai’ meaning ‘change’ and ‘zen’ meaning ‘good’).
Continuous improvement has a number of different focuses that depend on the way the
business is currently operating and the problems and issues it faces.
In essence, it seeks to make incremental improvements to these problems and issues that
compound over time to deliver substantial and tangible benefits to the organisation. In this
way Continuous improvement is not a quick fix but more an ongoing philosophy that believes
the business can never achieve optimum performance because the business environment is
always changing and the business itself needs to change to match those changes.
Continuous improvement is therefore seen as a never-ending search or a ‘striving’ for
perfection that can never be realised.

Training Manual 65
performance
Focus of continuous improvement

In practice, continuous improvement may be focussed on many things such as:
 Reducing or eliminating waste
 Shortening response times
 Simplifying work processes
 Enhancing customer service
 Improving product and service quality
 Removing unnecessary procedures
 Introducing new activities.
You will note that all the above points are aimed at improving business performance and not
targeted at reducing cost. While it is true that continuous improvement may result in some
cost–saving, this is seen as a beneficial side effect rather than the primary focus of the
endeavour.
Continuous improvement processes

There are no firm ‘rules and regulations’ about continuous improvement processes.
The key to them is that they must be tailor-made to accommodate the identified needs of the
business.
The following is a sample of what processes may be applied. You may feel the need to use
some of these, all of these or to develop new ones to suit your specific continuous
improvement needs.
Continuous improvement processes may include:
 Benchmarking activities – against organisational or industry standards
 Quality management - to ensure all aspects of the business operations are scrutinised
to identify ways to improve efficiency
 Re-engineering – making changes to reflect opportunities or need for improvement
 Cyclical audits and reviews of the workplace – including audits and reviews of team
performance and individual performance
 Evaluations and monitoring of workplace effectiveness
of nominated workplace procedures – such as
preparing drinks, serving customers, accepting
payment, ordering, stock, recruiting staff, training staff,
etc.
 Implementation of quality systems – such as
International Standardization for Organization (ISO),
especially the ISO series 9000 documents. ISO series
9000 provides a set of standards for quality management systems
 These standards are well-regarded internationally and form the basis of operations for
many businesses.

66 Training Manual
performance
Areas for continuous improvement

There are a number of common areas that will be the focus for continuous improvement
including:
 Staff performance
 Team performance
 Personal performance
 Customer service management
 Contributing to and participating in higher-level,
organisational continuous improvement programs.
The following table looks at these areas and suggests how these areas can be monitored,
evaluated and assessed and what actions can be taken to address the need for identified
improvement.
Area Measured by Improvement methods

Staff performance Productivity Performance appraisals
Adherence to standards Coaching
Training
Team performance Customer feedback Sharing information
(including interdepartmental Management/other feedback Sharing results
teams) Budgetary achievement Setting goals
Standard operating
procedures
Personal performance Management feedback Planning
Rate of change Questioning/discussion
Quality of change Experiencing
Staff feedback
Customer service Customer feedback Customer service audit/
management Staff feedback planning
Productivity
Contribution to management Management feedback Mentoring
and programs Staff feedback Coaching
Rate of learning Training

Training Manual 67
performance
Negotiate recommendations for variations to operational plans and

gain approval from designated persons/groups
Whilst the operational plan is a significant document which provides a framework for the
operations of the whole organisation, it is still a living document which must be subject to
change if circumstances warrant this.
The process of varying operational plans must be carefully considered as the plan affects so
many functions and people within the organisation. Any variation needs to be done via a
process of consultation and negotiation in order to gain appropriate approvals.
Why might the plan vary?
There may be a number of reasons why an operational plan may need to be varied
including:
 Large scale changes in the external environment such as a change in government
policy or significant alterations in the economic environment
 Legislative changes meaning new rules of operation which necessitate changes to
the plan
 Social changes which affect the operations of the organisation
 New technology which rapidly alters the nature of the organisation’s operations
 Significant internal changes to the organisation such as a reorganization or new
management which alters its goals.
The variation process
As in the original process of developing the plan, variations need to be conducted via open
channels of communication between all affected stakeholders. It is critical that this process
gives all these stakeholders the chance to provide comment on how any proposed changes
to the plan will affect them.
As mentioned, these stakeholders will include:
 Customers
 Employees
 Sub-contractors
 Suppliers
 Regulatory authorities
 Industry Association representatives.
Whilst not all these people will necessarily be affected by the changes, any proposed
change should as a matter of courtesy be passed on to them. In cases where there is
significant impact on an area, then stakeholders need to be involved in any proposed
changes at an early stage.

68 Training Manual
performance
3.6 Develop and implement systems to ensure that

procedures and records associated with
documenting performance are managed in
accordance with organisational requirements
Introduction
At the heart of the operational plan is a comprehensive set of procedures which govern how
the plan is developed and maintained. All parts of the planning process must be recorded
and stored in a manner which makes them easily located and which can be used as part of
future planning activities.
For this reason, the organisation must ensure that the management of such records is
clearly understood and all staff involved in planning understand the required protocols.
Basic requirements for procedures and records

All planning procedures and reports must be kept so that they are:
 Accurate
 Current
 Legible
 Easily accessible
 Secure.
Generally, a paper-based or electronic system can be used to establish and maintain these
records.
Many authorities provide electronic sample of documentation/records that can and must be
kept by stores.
What records and procedures are required?

The notes that follow are indicative of what requirements apply to the establishment and
maintenance of planning procedures records, but it is vital you investigate exactly what the
legal compliance requirements are.
Planning records and information may relate to:
 Proposals and minutes of meetings convened for
the purpose of establishing plans and
accompanying procedures
 Copies of all plans along with amendments and
supporting documentation
 Records relating to the health and safety of the
employees – including the results of monitoring
activities where legislation (or organisational policies) require such records to be kept
 Recruitment documentation including organisational establishment planning along
with approvals to create new positions and records of applications and interviews

Training Manual 69
performance
 Physical resourcing policies and procedures along with records of purchases made
and established supplier lists and tenderers
 Induction procedures along with records of sessions run
 Training action plans – which set out the courses topics to
be covered by workplace training/coaching/mentoring and
when and where these courses will be conducted
 Training records – indicating the specific training that has
been provided (and is intended) for individual staff
 The health and safety of the employees.

70 Training Manual
performance
Work Projects
 Provide a description and examples of the performance management tools you will
use to monitor and the features of these
 Identify consideration of the three levels of a performance management system that
are discussed

 Identify methods you can use to analyse financial and budget performance against
operational plans

 Identify possible areas of under-performance and outline short and long term
corrective actions that may be taken

 Identify the benefits of coaching and mentoring
 Identify situations where they may be used
 Outline a strategy for using coaching and mentoring to improve performance

 Identify the importance of continuous improvement
 Identify a strategy that can be implemented to aid continuous improvement
 Identify the process required to negotiate recommendations for variations to
operational plans

 Describe the records are kept on the operational plan and provide relevant examples
where appropriate

Training Manual 71
performance
This page is left intentionally blank for double-sided printing .

72 Training Manual
Presentation of written work

1. Introduction
It is important for students to present carefully prepared written work. Written presentation
in industry must be professional in appearance and accurate in content. If students
develop good writing skills whilst studying, they are able to easily transfer those skills to
the workplace.
2. Style
Students should write in a style that is simple and concise.
Short sentences and paragraphs are easier to read and
understand. It helps to write a plan and at least one draft of
the written work so that the final product will be well
organised. The points presented will then follow a logical
sequence and be relevant. Students should frequently refer to
the question asked, to keep ‘on track’. Teachers recognise
and are critical of work that does not answer the question, or is ‘padded’ with irrelevant
material. In summary, remember to:
 Plan ahead
 Be clear and concise
 Answer the question
 Proofread the final draft.
3. Presenting Written Work

Types of written work
Students may be asked to write:
 Short and long reports
 Essays
 Records of interviews
 Questionnaires
 Business letters
 Resumes.
Format
All written work should be presented on A4 paper, single-sided with a left-hand margin. If
work is word-processed, one-and-a-half or double spacing should be used. Handwritten
work must be legible and should also be well spaced to allow for ease of reading. New
paragraphs should not be indented but should be separated by a space. Pages must be
numbered. If headings are also to be numbered, students should use a logical and
sequential system of numbering.

Training Manual 73
Cover Sheet
All written work should be submitted with a cover sheet stapled to the front that contains:
 The student’s name and student number
 The name of the class/unit
 The due date of the work
 The title of the work
 The teacher’s name
 A signed declaration that the work does not involve plagiarism.
Keeping a Copy
Students must keep a copy of the written work in case it is lost. This rarely happens but it
can be disastrous if a copy has not been kept.
Inclusive language
This means language that includes every section of the population. For instance, if a
student were to write ‘A nurse is responsible for the patients in her care at all times’ it
would be implying that all nurses are female and would be excluding male nurses.
Examples of appropriate language are shown on the right:
Mankind Humankind
Barman/maid Bar attendant
Host/hostess Host
Waiter/waitress Waiter or waiting staff

74 Training Manual
Recommended reading
Recommended reading
Abranhs, Rhonda; 2014 (6th edition); Successful Business Plan: Secrets & Strategies;
Planning Shop
Bangs, David; 2002 (9th edition); The Business Planning Guide; Kaplan Publishing
Davidoff, Donald M; 1993 (1st edition); Contact: Customer Service In The Hospitality and
Tourism Industry; Prentice Hall
DeThomas, Arthur; 2008 (3rd edition); Writing a Convincing Business Plan; Barron's
Educational Series
Friend, Graham; 2010 (Kindle 2nd edition); The Economist Guide to Business Planning;
Economist Books
Ford, Robert; 1999 (1st edition); Managing the Guest Experience in Hospitality; Delmar
Cengage Learning
Ford, Robert C, Sturman, Michael C, Heaton, Cherrill P; 2011 (1st edition); Managing Quality
Service in Hospitality: How Organizations Achieve Excellence In The Guest Experience;
Delmar Cengage Learning
Gillen, Terry; 2001 (Lslf edition); The Performance Management Activity Pack: Tools for
Building Appraisal and Performance Development Skills; AMACOM
Johnston, R & Clark G, 2008 (3rd Edition); Service Operations Management; Pearson
Education
Kusluvan Salih; 2003 (1st edition); Managing employee attitudes and behaviours in the
tourism and hospitality; Nove Science Publishers, New York
Lashley, Conrad, Morrison, Alison; 2001 (1st edition); In Search of Hospitality (Hospitality,
Leisure and Tourism); Butterworth-Heinemann
Maynard, Therese H; 2010 (1st edition); Business Planning; Aspen Publishers
Martin, William B: 2001 (1st edition); Quality Service: What Every Hospitality Manager Needs
to Know; Prentice Hall
Mill, Robert Christie; 2011 (3rd edition); Resorts: Management and Operation; Wiley
Mohinder, Chand; 2009 (1st edition); Managing Hospitality Operations; Anmol Publications
Pvt Ltd
Noe, Francis P; 2010 (1st edition); Tourist Customer Service Satisfaction: An Encounter
Approach (Advances in Tourism); Routledge
Ninemeier, Jack; 2005 (1st edition); Restaurant Operations Management: Principles and
Practices; Prentice Hall
O'Fallon, Michael J.; 2010 (5th edition); Hotel Management and Operations; Wiley
Peterson, Steven; 2010 (3rd edition); Business Plans Kit for Dummies; For Dummies
Pinson, Linda; 2007 (7th edition); Anatomy of a Business Plan; Out Of Your Mind . . . And
into the Mark

Training Manual 75
Recommended reading
Sturman, Michael C; 2011 (1st edition); The Cornell School of Hotel Administration on
Hospitality: Cutting Edge Thinking and Practice; Wiley
Tiffany, Paul & Peterson, Steven; 2004 (2nd edition); Business Plans for Dummies; For
Dummies
Tokan, Boomy; 2013 (1st edition); How to Write Your First Business Plan; CreateSpace
Independent Publishing Platform
Walker, John R; 2008 (5th Edition); Introduction to Hospitality; Prentice Hall
Williams, R.T; 2013 (Kindle edition); How to Write a Business Plan - A Complete Outline to
Create a Concise and Profitable Business; Williams, R.T
Vallen, Jerome & Gary; 2010 (8th edition); Check-In Check-Out: Managing Hotel Operations;
Prentice Hall
Zeithaml, Valarie A; 2009 (1st edition); Delivering Quality Service; Free Press

76 Training Manual
Trainee evaluation sheet

The following statements are about the competency you have just completed.
Don’t Do Not Does

Please tick the appropriate box Agree Know Agree Not
Apply
There was too much in this competency to

cover without rushing.
Most of the competency seemed relevant to me.
The competency was at the right level for me.
I got enough help from my trainer.
The amount of activities was sufficient.
The competency allowed me to use my own

initiative.
My training was well-organised.
My trainer had time to answer my questions.
I understood how I was going to be assessed.
I was given enough time to practice.
My trainer feedback was useful.
Enough equipment was available and it worked

well.
The activities were too hard for me.

Training Manual 77
The best things about this unit were:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
The worst things about this unit were:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
The things you should change in this unit are:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

78 Training Manual
Trainee self-assessment checklist

As an indicator to your Trainer/Assessor of your readiness for assessment in this unit
please complete the following and hand to your Trainer/Assessor.
Yes No*
1.1 Research, analyse and document resource requirements and
develop an operational plan in consultation with relevant
personnel, colleagues and specialist resource managers.
1.2 Develop and/or implement consultation processes as an integral
part of the operational planning process.
1.3 Ensure the operational plan includes key performance indicators
to measure organisational performance.
1.4 Develop and implement contingency plans for the operational
plan.
1.5 Ensure the development and presentation of proposals for
resource requirements is supported by a variety of information
sources and seek specialist advice as required.
1.6 Obtain approval for the plan from relevant parties and explain the
plan to relevant work teams.
2.1 Develop and implement strategies to ensure that employees are
recruited and/or inducted within the organisation's human
resources management policies, practices and procedures.
2.2 Develop and implement strategies to ensure that physical
resources and services are acquired in accordance with the
organisation's policies, practices and procedures.
2.3 Recognise and incorporate requirements for intellectual property
rights and responsibilities in recruitment and acquisition of
resources and services.

Training Manual 79
Yes No*
3.1 Develop, monitor and review performance systems and
processes to assess progress in achieving profit and productivity
plans and targets
3.2 Analyse and interpret budget and actual financial information to
monitor and review profit and productivity performance
3.3 Identify areas of under-performance, recommend solutions, and
take prompt action to rectify the situation
3.4 Plan and implement systems to ensure that mentoring and
coaching are provided to support individuals and teams to
effectively, economically and safely use resources
3.5 Negotiate recommendations for variations to operational plans
and gain approval from designated persons/groups.
3.6 Develop and implement systems to ensure that procedures and
records associated with documenting performance are managed
in accordance with organisational requirements
Statement by Trainee:
I believe I am ready to be assessed on the following as indicated above:
Signed: _____________________________ Date: ____________
Note:
For all boxes where a No* is ticked, please provide details of the extra steps or work you
need to do to become ready for assessment.

80 Training Manual

Training Manual 81
SITXHRM001A Coach others in job skills

BSBMGT517 - Manage Operational Plan

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BSBMGT517 - Manage Operational Plan

Uploaded by

Copyright:

Available Formats

1

BSBMGT517 Manage operational plan

© William Angliss Institute 2017

© William Angliss Institute 2017

William Angliss Institute ........................................................................................................ 1

© William Angliss Institute 2017

© William Angliss Institute 2017

William Angliss Institute

 Tourism  Coffee making and barista training

 Retail travel  Patisserie

 Hospitality management / operations  Bakery

 Ecotourism  Confectionery manufacturing

 Meeting and event management  Food science and technology

 Resort management  Business and retail management

 Professional cookery  Marketing and human resources

In addition to over 1000 international students enrolled at William Angliss Institute in

Phone: (03) 9606 2111

© William Angliss Institute 2017

This page is left intentionally blank for double-sided printing.

© William Angliss Institute 2017

Element 1: Develop operational plan

Element 2: Plan and manage resource acquisition

© William Angliss Institute 2017

Element 3: Monitor and review operational performance

© William Angliss Institute 2017

Work Written Oral

© William Angliss Institute 2017

Work Written Oral

© William Angliss Institute 2017

A set of planned activities or actions implemented for

CSISG Customer Satisfaction Index of Singapore

Intangible Something of value however cannot be ‘seen’

KPI Key Performance Indicator

Metric A target or measurement for performance comparison

A written statement expressing an organisation’s

Pro forma Template document

A roadmap for an organisation that charts out the key

Stakeholder A person who is a part of service delivery

Standard Expected level of performance

Town-hall session An ‘open to all’ meeting to discuss a range of topics

Values Core principles that guide an organisation’s work

Vision Core ideology of a business

© William Angliss Institute 2017

This page is left intentionally blank for double-sided printing.

© William Angliss Institute 2017

Element 1: Develop operational plan

Developing an operational plan

© William Angliss Institute 2017

Developing operation plans

© William Angliss Institute 2017

© William Angliss Institute 2017

Core elements of operational plans

Nature of operational plans

© William Angliss Institute 2017

Types of operational plans

Objectives of operational plans

© William Angliss Institute 2017

© William Angliss Institute 2017

1.2 Develop and/or implement consultation

Importance of involving stakeholders

© William Angliss Institute 2017

Methods to encourage staff input

Seek assistance from experts