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Assessment 1    BSBHRM501 Manage human resources services


Assessment 1: Develop a human resources strategy

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Assessment description

Using the case study provided complete a written report describing the HR strategy approach, two options for the delivery of HR services, a strategy for the delivery of one of the options and a written report detailing the analysis and decision making process involved in your recommendations.



Review the case study below for JKL Industries, and:


  1. Determine human resources requirements.


Analyse the strategic and operational plans to determine human resources requirements and develop options for the delivery of human resources services.


  1. Determine appropriate consultation mechanisms.


  1. How would you engage key stakeholders?


  1. Develop a HR strategy approach including requirements for:


  1. recruitment


  1. performance management


iii. remuneration and benefits


  1. education and training.


Document in a written report.


  1. Develop at least two options for the delivery of HR services and select two alternative models for the delivery of HR services.


For each option document:


  1. what the advantages of the model are


  1. what the risks to the organisation are


  1. what the costs to the organisation are


  1. how the models support the organisational goals


  1. how you would ensure the options comply with:


  1. award and enterprise agreements


  1. relevant industrial relations instruments


iii. relevant industry codes of practice


  1. legislation such as OHS, EEO, industrial relations and anti discrimination.


Document as a presentation to management using either a written report, PowerPoint presentation or a combination of methods.


  1. Develop strategies for the delivery of HR services for one of the options above.


  1. Document the hiring strategies.


  1. Document motivation, maintenance and retention strategies.


  1. Document separation strategies.


Document in a written report.


  1. Develop an action plan. Select one of the services from the HR strategy and document the action plan for implementation.


The action plan should include:


  1. the strategic goal


  1. all of the actions required to achieve that goal including:


  1. identifying third party service providers


  1. development of service agreements


iii. training needs


  1. communications


  1. review processes


  1. roles and responsibilities (internal and external).


  1. how you will communicate and gain agreement.


Document as a written report including a completed action plan.



You must submit:


  • three written reports, one including an action plan


  • a presentation.


Case study – JKL Industries


JKL Industries is an Australian owned company, selling forklifts, small trucks and spare parts to industry. They also have a division which leases forklifts and small trucks on long term leases over three months.


The company’s head office is in Sydney and JKL has branches in Brisbane, Melbourne, Perth, Adelaide and the ACT.


After 12 years in business, focusing on forklifts and small trucks, JKL has been offered the sales rights to a range of medium and large trucks from an overseas supplier. This opportunity will change the business goals and direction by providing JKL with an advantage in range over its competitors and will require significant changes to the current organisational structure.



Sales results over the past five years have indicated strong growth in forklift and truck sales which have averaged 10% sales growth per annum.


The rental market has been in decline for the past three years due to the reduced costs of these vehicles and some taxation benefits to industries who purchase these vehicles.


JKL management have developed strategic and operational plans to drive and direct the business over the next five years. They have requested that you, as the newly appointed Human Resources Manager, provide them with options for the delivery of human resources services which support the organisations’ plans.


Strategic plan

JKL Industries will be the leading supplier of forklifts, small, medium and large trucks in Australia.


Operational plans

  1. JKL will withdraw from the rental market and close the rental division within the next 18 months.


  1. JKL will expand existing branches to include the sale of medium and large trucks within 12 months.


  1. JKL will continue to sell and service forklifts and expand their market share by 7% within the next 12 months.



The organisation is currently using a HR business partner model with a human resources officer aligned to each of the three key business areas: Sales, fleet rentals, and service.


JKL employees over 300 staff in the following categories as demonstrated in the organisation chart below.


The Managing Director reports to a board of directors and is based in the Sydney corporate office, along with the Operations Manager and the Finance and Administration teams.


In each of the State-based sites there is a branch office consisting of an office building, warehouse, service department and sales office. Each state replicates the structure below.


Policies and procedures

JKL has a number of policies and procedures to support its core values and to ensure compliance with legislative requirements.


Legislative requirements

JKL Industries acknowledges it role as a responsible corporate citizen in the local and wider community. JKL’s success will result not simply from satisfying specific equipment needs for a quality product at reasonable prices, but from conducting its business with integrity. Integrity in our sales and services and with our employees relates to the maintenance of high ethical and moral standards that is essential and is not to be defamed for the sake of results.


It is company policy to comply in all respects with local/state/federal governments’ legislation. The relevant legislation that needs to be complied with is as follows.


Commonwealth – Legislation/Regulations

  • Competition and Consumer Act 2010


  • Disability Discrimination Act 1992


  • Equal Employment Opportunity Act 1987


  • Equal Employment Opportunity for Women in the Workplace Act 1999


  • Freedom of Information Act 1982


  • Privacy Act 1988


  • Racial Discrimination Act 1975


  • Safety, Rehabilitation and Compensation Act 1988


  • Sex Discrimination Act 1984


  • Vocational Education and Training Funding Act 1992


  • Work Health and Safety Act 2011


  • Workplace Relations Act 1996.


JKL’s policy of compliance with legislation requires each employee to understand the legislation relevant to their position in order to avoid violations, and to seek an explanation from the relevant company officer if there is any concern or uncertainty as to the propriety of any action or transaction.


Managers and employees of JKL are expected to conduct their operations in a manner consistent with all relevant legislation.


Relevant legislation is available for reference through senior management or via access to the internet. State legislation and summary notes are accessed on state government web sites.


A guide to accessing federal and state legislation, court decisions, key national and state bodies and research tools is available at:


  • Parliament of Australia, ‘Key internet links on Australian law’, viewed May 2012, <http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/Browse_by_Topic/Auslaw>.


Occupational Health and Safety

  • Safety, Rehabilitation and Compensation Act 1988 (Cth)


  • Work Health and Safety Act 2011 (Cth)


  • Work Health and Safety Act 2011 (NSW)


  • Workers’ Compensation Act 1987 (NSW)


  • Workplace Injury Management and Workers’ Compensation Act 1988 (NSW).


The JKL OH&S and Rehabilitation Policy are displayed in all work locations. JKLS’s commitment to the Occupational Health and Safety is further detailed as part of the JKL Occupational Health and Safety Management Standards.


This document outlines company management and employees’ responsibilities, managing OHS risks, workers’ compensation and rehabilitation and first aid.


Workplace harassment, victimisation and bullying

  • Disability Discrimination Act 1992


  • Equal Employment Opportunity Act 1987


  • Equal Employment Opportunity for Women in the Workplace Act 1999


  • Racial Discrimination Act 1975


  • Sex Discrimination Act 1984


  • Anti Discrimination Act 1977 (NSW).


Harassment, victimisation and bullying in the workplace is illegal and such actions are not tolerated by JKL.


Staff members found to be harassing or bullying other members of staff will face disciplinary action ranging from counselling and performance management to dismissal.


Anti-discrimination and equal opportunity

  • Disability Discrimination Act 1992


  • Equal Employment Opportunity Act 1987


  • Equal Employment Opportunity for Women in the Workplace Act 1999


  • Racial Discrimination Act 1975


  • Sex Discrimination Act 1984


  • Anti Discrimination Act 1977 (NSW).


JKL is committed to upholding affirmative action, equal opportunity and anti-discrimination legislation. This legislation is detailed at:


  • Australian Human Rights and Equal Opportunities Commission, viewed May 2012, <http://www.hreoc.gov.au>.


Vocational education and training, apprenticeships and traineeships (legislation)

  • Vocational Education and Training Funding Act 1992


  • Vocational Education and Training Act 2005 (NSW).


JKL is committed to upholding the Industrial and Commercial Training Act, the Apprenticeships and Traineeships Act 2001 and the Vocational Education and Training Act (2005). The act stipulates that within all sites of operation, all apprentices/trainees are rostered on each shift with at least one vocationally competent person who verses the apprentice/trainee’s work and performance of duties.


JKL directs all clients to the relevant guide to apprenticeships and traineeships and the relevant government websites.


  • TGA, viewed May 2012, <http://www.training.gov.au/>.


Access and equity policy (diversity and anti-discrimination)


JKL Industries values the diversity of its team, clients and communities and respects the rights of individuals and groups to operate in an environment free of discrimination.


Access and equity (diversity and anti-discrimination) is fundamental to the operations of JKL. It is embedded in policies, practices and forward planning.


JKL recognises the importance of diversity in achieving our vision.


JKL understands the business environment and actively assists customers to reach their optimum potential. Our primary objective is to be solution-oriented and focused on customer needs. JKL recognises that valuing diversity is pivotal to achieving its vision.


A welcoming, supportive environment will be provided and barriers broken down leading to positive learning and employment, and individuals having the opportunity to reach their optimum potential.


At JKL anyone engaged in employment or the provision or receipt of training and/or services has the right to operate in an environment that is free from discrimination on the grounds of:


age; breastfeeding; disability; industrial activity; lawful sexual activity; marital status; physical features; political belief or activity; pregnancy; race; religious belief or activity; gender; gender identity and sexual orientation; parental or career status or personal association; sexual/sexist or other forms of harassment.


Procedures are in place for handling any grievances including complaints of discrimination, unfair treatment or harassment. Complaints will be taken seriously and every effort will be made to resolve them quickly, impartially, empathically and with appropriate confidentiality. Victimisation of complainant/s and witness/es is illegal. Complaints may also be lodged with the Equal Opportunity Commission.


Privacy statement

JKL takes care to respect your right to privacy and fully complies with our obligations under the Privacy Amendment (Private Sector) Act 2000. JKL uses any information we collect in accordance with our Privacy Policy and to provide a more customised service experience.



The following information should be taken into consideration when developing strategies for HR services.


  • JKL is highly unionised, particularly in the service department.


  • Mechanical apprentices have been employed under contract in each State.


  • JKL currently remunerates non award-based employees slightly below industry median salaries.


  • JKL has a high turnover of sales consultants, in excess of the industry norm.


  • JKL has no defined succession planning programs in place.


  • There are some inconsistencies in behaviours and performance levels between states, possibly due to poorly documented procedures and ineffective communication and supervision.


  • There are concerns about the turnover levels of more experienced and competent staff, particularly mechanics and senior sales managers.


  • There is a high demand in the market place for experienced mechanics.


  • Medium and large trucks will require qualified mechanics who are in short supply across all states.


  • Line managers are focussed on sales and operations and have little skill, knowledge or experience in HR functions, such as recruitment and performance management.


  • JKL is aware of the need to increase spending in order to attract and retain qualified personnel and has committed funds to implement HR strategies.


  • The JKL board of directors is cost conscious and will need to see links to organisational goals prior to agreeing to any increased spending.


Impacts of rental department closure

  • 75 people will be impacted by the closure of the rental department, including five managers, five HR officers and 65 team members.


  • It is anticipated that up to 45% of this number will be absorbed by expansion into medium and large truck sales.


  • JKL management are concerned that morale may be impacted by large scale redundancies of long term team members and would like the process to be managed sensitively and with as little impact on the business as possible.


  • New branches to sell and service large trucks will be opening within 12 months.


  • The rental division will be gradually closed over an 18 month period.


  • Management are concerned that service for existing clients be maintained to a high standard during that period as many rental customers may become purchasers of equipment in the future.


  • Performance levels of team members and managers in the rental department vary. There are some high performers and some sub standard performers.


  • Because management have not traditionally managed performance concerns effectively, some of the poor performers have been there for many years.


Industrial relations history

JKL Industries has not had a clear industrial relations policy or strategies in the past. There has been a tendency to manage issues on an ad hoc basis rather than drive the business through long term industrial relations objectives.


Responsibility for industrial relations issues has been spread between various levels of management including the Operations Manager, Sales Manager, Service Manager and Human Resources Officers for each division. This has led to issues of inconsistency and allegations of unfair work practices with team members confused as to their entitlements and unsure of how to resolve grievances and conflict appropriately.


On several occasions the union has become involved in disputes when team members have been unable to resolve issues with their line managers.


Morale in the workplace fluctuates and is often dependent on the division manager’s management style and skill level. There have been instances of workplace conflict which have not been satisfactorily resolved and have led to complaints of discrimination and unfair dismissal.


Employees have heard rumours of the forthcoming changes in the structure of the organisation and the move into medium and large truck sales. There are concerns about possible redundancies but no information from management has been forthcoming.


There has been a history of dissatisfaction within the organisation relating to pay and conditions with some employees complaining they are not receiving the entitlements they should be.


Conflict situations

Some examples of industrial relations issues are detailed below.


Case 1

An apprentice mechanic complained to the union that he was left unsupervised for up to five hours several days per week.


The union investigated the matter and found it to be substantiated. Management claimed it was a temporary rostering issue caused by the resignation of senior mechanics and would be rectified. The apprentice was satisfied with the response and the rosters were adjusted.


Case 2

Five sales consultants claimed their annual bonus was calculated incorrectly. Management asked the payroll department to review the payments and was advised it was correct. The sales consultants felt they had been mislead by confusing contracts detailing the bonus arrangements and had, in fact earned their bonuses. Management refused to respond. Three sales consultants resigned as a result.


Case 3

The mechanics and apprentices in the NSW branch complained to management about excessive hours of work. They were told that the business did not have the resources to hire extra staff and they would have to work the overtime. The mechanics continued to do the overtime for two months and then complained again. One mechanic refused to work any more overtime and was terminated on the spot by the Service Manager, Norm Johnston. He lodged an unfair dismissal claim and was reinstated and back paid. No action was taken by the company with regards to the Service Manager’s performance or behaviours.


Case 4

An administration assistant in the finance division complained to the HR Officer that she felt uncomfortable working around one of the male accountants as he had asked her out on several occasions. When she said no she felt like he singled her out for the worst jobs in the office, was rude to her in front of other staff and made comments in public about her weight. The HR officer told her she was being overly sensitive and should be flattered to have been asked out. She was told to be more of a team player. The administrative assistant then complained to the Finance and Administration Manager and was told there was nothing he could do. She resigned from the company.


Case 5

Management decided to restructure the sales department which involved redundancies. They did not involve the union or offer any type of counselling or personal meetings. Staff were informed by letter and were paid the minimum payouts they were entitled to. There was no discussion with remaining staff and morale became extremely low. Within two months, management had replaced the team members made redundant with new workers.


Management skills and knowledge

The current management team have little understanding of industrial relations matters and have been appointed to their current positions based on their abilities in sales or their technical skills. They have limited understanding of Australian workplace agreements and a tendency to refer any problems to the HR officers. This has led to conflict and dissatisfaction within the work teams and is felt to be a contributing factor to the high turnover of staff in some departments. Management tend to be ‘operations’ focussed and have little understanding of people management, performance management or leadership skills.


The HR officers have experience in understanding and interpreting Australian Workplace Agreements from an administrative perspective. They have limited knowledge of strategic management and have little control over or influence in implementing industrial relations policy. As they report directly to the Division Manager, they are functioning more as administration assistants than as a strategic HR resource.


While JKL Industries has policies and procedures relating to workplace behaviours and values, employees are not provided with written copies of procedures nor are they trained in values, behaviours, codes of practice or workplace cultural issues. Many employees are confused about their rights and entitlements at work and are not clear on who they should speak to if they have a problem.


Managing Director


Operations Manager


Sales Manager


Rentals Manager


Service Manager


Sales Consultants


Administrative Assistants


Finance and Administration Manager


Sales Consultatnts


Human Resources Officer


Human Resources Officer


Administrative Assistants




Accounts Manager


Human Resources Officer


Administrative Assistants






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