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 Copyright © 2013 McGraw-Hill Education (Australia) Pty Ltd
Additional owners of copyright are acknowledged in on-page credits.
Every effort has been made to trace and acknowledge copyrighted material. The authors and publishers tender their
apologies should any infringement have occurred.

Reproduction and communication for educational purposes

The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this work, whichever
is the greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided
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(CAL) and been granted a licence. For details of statutory educational and other copyright licences contact: Copyright
Agency Limited, Level 15, 233 Castlereagh Street, Sydney NSW 2000. Telephone: (02) 9394 7600. Website: www.copyright
.com.au

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Reproduction and communication for other purposes

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Apart from any fair dealing for the purposes of study, research, criticism or review, as permitted under the Act, no part of

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this publication may be reproduced, distributed or transmitted in any form or by any means, or stored in a database or
retrieval system, without the written permission of McGraw-Hill Education (Australia) Pty Ltd, including, but not limited
to, any network or other electronic storage.
Enquiries should be made to the publisher via www.mcgraw-hill.com.au or marked for the attention of the permissions
editor at the address below.
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National Library of Australia Cataloguing-in-Publication Data
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Author: Dwyer, Judith, author.
Title: Management strategies and skills / Judith Dwyer and Nicole
Hopwood.
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Edition: 2 edition.
ISBN: 9781743077191 (paperback)
Notes: Includes bibliographical references and index.
Subjects: Management.
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Other Authors/Contributors:
Hopwood, Nicole, author.
Dewey Number: 658

Published in Australia by
McGraw-Hill Education (Australia) Pty Ltd
Level 2, 82 Waterloo Road, North Ryde NSW 2113
Publisher: Norma Angeloni Tomaras
Development editor: Alex Payne
Production editors: Marisa Rey Bulen, Lindsey Langston
Permissions editor: Haidi Bernhardt
Copyeditor: Nicole McKenzie
Proofreader: Anne Savage
Indexer: Frances Paterson
Design coordinator: Dominic Giustarini
Cover design: Christa Moffit, Christabella Designs
Internal design: Georgette Hall, George Creative
Typeset in Utopia Std 9.5/11.5 pt by diacriTech, India
Printed in China on 70 gsm matt art by 1010 Printing International

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 Foreword
I have been involved in vocational education and training for over 25 years. I have known Judith Dwyer for over 18
years while we all came to grips with changes to vocational education and training in Australia.
Judith has been an educator in both the large public institution and the private sector training environment.
Her management experience includes establishing and running a successful Registered Training Organisation in
Newcastle. Emanating from her background as an educator, her passion has been to write quality education and
training materials for use in the vocational sector.
With this book she has done an exceptional job of taking management concepts and making them readily
understandable and applicable to the management student or practitioner in today’s working environment. The book

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tackles contemporary issues such as the multigenerational workforce, sustainability and climate change, along with
the traditional concepts of management.

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I know from experience how hard it is to find an appropriate text to support vocational training. This book is ideal

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for any student in the field of management and an excellent reference book for any current manager.

Graeme Dick
Training professional in the Australian mining industry
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 Contents

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 v

Contents in brief
PART 1 UNDERSTANDING MANAGEMENT 1
CHAPTER 1: Foundations of management 2

PART 2 MANAGING INTERACTIONS 31

CHAPTER 2: Managerial communication 32
CHAPTER 3: Presentations, public speaking and meetings 68
CHAPTER 4: Managing personal work priorities and professional development 88

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CHAPTER 5: Managing effective workplace relationships 118

PART 3 UNDERSTANDING TEAMS 151

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CHAPTER 6: Ensure team effectiveness 152
CHAPTER 7: Non-traditional teams 184
CHAPTER 8: Develop teams and individuals in a workplace learning environment 204

PART 4 LEADING AND MANAGING OPERATIONS 229

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CHAPTER 9: Leadership 230
CHAPTER 10: Staff recruitment, selection, induction and termination 262
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CHAPTER 11: Assign duties and appraise performance 292
CHAPTER 12: Manage and implement operational plans 324
CHAPTER 13: Manage projects 354
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CHAPTER 14: Manage and monitor customer service 384

CHAPTER 15: Problem solving and decision making 414
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PART 5 IMPLEMENTING GOOD WORKPLACE PRACTICE 435

CHAPTER 16: Managing human resources and workforce planning 436
CHAPTER 17: Manage diversity in the workforce 464
CHAPTER 18: Ensure and monitor a safe workplace 488
CHAPTER 19: Risk management 522

PART 6 MANAGING FOR SUSTAINABILITY 541

CHAPTER 20: Sustainable development and policies 542
CHAPTER 21: Responding to change 572
CHAPTER 22: Manage quality and continuous improvement 600
CHAPTER 23: Strategic management 634

BONUS ONLINE CONTENT

Manage knowledge and team development in a learning organisation
Management in globalised economy

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 vi

Contents in full
About the authors xv
Preface xvi PART 2 Managing interactions
Acknowledgments xvi
What’s new in this edition? xvii CHAPTER 2: Managerial communication
Features of this book xviii
2.1 Interpersonal communication 34
Digital resources xx
Communication process 35
Competency grid xxii Listen and acknowledge 38

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Question and understand 39
Nonverbal communication 40
PART 1 Understanding

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Communication barriers 40

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management 2.2 Purpose of feedback 42

CHAPTER 1: Foundations of management 2.3 Feedback that works 45

Empathy 45
1.1 Levels of management 4 Assertiveness 46
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Private sector, public sector and not-for-profit Describe-outline-suggest model 48
organisations 5 Flag-example-benefit process 48
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1.2 Managerial functions 6 Benefits of feedback about performance 49
Management roles 6 2.4 Written communication 52
Writing guidelines 52
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1.3 Management skills 8

Technical skill 8 Common pitfalls in writing 53
Collaborate through technology 8 2.5 Workplace documents 54
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Interpersonal skill 9 Writing emails 54

Conceptual skill 9 Writing business letters 56
Adaptive resilience and commitment to Writing short reports 57
sustainable practices 10 Writing service agreements 59
Diagnostic skill 10
Political skill 10
CHAPTER 3: Presentations, public speaking and
Change management skills 11 meetings
Ethical behaviour 11
Influencing skills 12 3.1 Business presentations and public speaking 70
Motivate the audience 71
1.4 Organisational structures 13
Types of organisational structure 13 3.2 Public speaking formats 72
Plan and structure the presentation 73
1.5 Challenges facing managers 18 Create a presence and establish rapport 74
Flatter structures and increased use of teams 18
Downsizing, restructuring and outsourcing 18 3.3 Managing meetings 76
Changing patterns of employment 19 Features of effective meetings 76
Diversity 20 3.4 Formal, structured meetings 78
Innovation and sustainability 21 Standing orders 78
Globalisation 22 Constitution 78
Cultural environment 23 Agenda 78

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 Contents vii

The chairperson 80 Apply a process approach 135

The secretary 81 Implement processes promptly 136
Duties of the members 81
5.4 Managing grievances 136
Features of a good grievance procedure 137
CHAPTER 4: Managing personal work priorities Mediation 139
and professional development Conciliation and arbitration 139
4.1 Establish personal work goals 91
Focus on outcomes 91

4.2 Plan your own work schedule 91 PART 3 Understanding teams

Reflect organisational plans 91

4.3 Time management 92 CHAPTER 6: Ensure team effectiveness

Deal with the important 93 6.1 Types of teams 155
Estimate time accurately 94 The stages of team development 157
Plan and schedule 95 Team leadership and management roles 158

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Identify time wasters 96
6.2 Plan to achieve team outcomes 162
Establish priorities against responsibilities 98

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Work within a framework 163
Manage technology 99

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6.3 Facilitate and empower work teams 167
4.4 Monitor your own work performance 99
Facilitate team effectiveness and cohesion 167
Receive feedback 100
Empower, acknowledge and reward 169
4.5 Coordinate professional development 102 Encourage open communication 169
Career anchors 102 Encourage consultation 170
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Motivation and job satisfaction 104 Manage an effective team meeting 171
Styles of working 104 Respond to resistance, negativity or internal
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Identify required skills and knowledge 105 threats 172
Identify and access training and
6.4 Liaise with management 174
development opportunities 106
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Convey useful management information 174

4.6 Work–life balance 107 Effective liaison 174
Relationship between stress and
6.5 Enhance the organisation’s image 175
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performance 107
Ethical standards 175
Challenge unethical behaviour 176
CHAPTER 5: Managing effective workplace Positive role model 176
relationships

5.1 Behaviour influences relationships 121

CHAPTER 7: Non-traditional teams
Consultative approach 122
Develop trust and confidence 124 7.1 Trends changing work and the workplace 187
Employee engagement 126 Different kinds of workspaces 188
Deal with an issue or problem 126 Team identity and interdependence 188
Types of distributed teams 189
5.2 Negotiation methods 128
Positional bargaining approach—the issue 129 7.2 Supporting virtual and distributed teams 191
Principled negotiation—relationship and issue 130 Framework for high performance 191
Incorporate principled negotiation in the
7.3 Technologically mediated communication 195
10-step process 131
Matching communications technology with
5.3 Managing conflict 132 purpose, task and context 196
Views on conflict 133 Online team rooms 197
Levels of conflict 133 Virtual meetings 198

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 viii Contents

CHAPTER 8: Develop teams and individuals in a CHAPTER 10: Staff recruitment, selection, induction
workplace learning environment and termination

8.1 Determine development needs 206 10.1 Tools for recruitment and selection 265
Job analysis 265
8.2 Types of learning and development 208
Position description 265
Workplace training 208
Position specification 265
Action-based learning 211
10.2 EEO and diversity 267
8.3 Purpose of learning plans 212
Equal employment opportunity 268
Structure the learning plan 213
Characteristics of a diverse workplace 269
8.4 Support workplace learning 215
10.3 Employment interviews 269
Address equity issues 216
The interview process 270
Recognise workplace achievement 217
Validate the selection decision 275
8.5 Monitor and evaluate learning 219 Potential problems 275
Competency standards 219
10.4 The induction process 276

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Assess competence 220
Orientation 277
Achieve improvement 220
Diversity needs 278

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Induction training plan 278

10.5 Termination of employees 280

PART 4 Leading and managing Reasons for termination 280
operations Managing redundancy 281
Unproductive and disruptive employees 283
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CHAPTER 9: Leadership Dispute resolution or grievance procedure 284
Voluntary termination by employee 285
9.1 Leadership theories
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9.2 Leading across the generations 240 CHAPTER 11: Assign duties and appraise
Baby boomers 240 performance
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Gen X 240
11.1 Clarify roles and responsibilities 294
Gen Y 241
Types of work instructions 295
Implications for leaders 241
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11.2 Delegate for results 296

9.3 Leadership issues 242
Effective delegation 298
Positive role modelling 242
Dealing with negative responses to delegation 299
Emotional intelligence 242
Power and influence 243 11.3 Facilitate outcomes 300
Unlock the ability to perform well 300
9.4 Empowerment and motivation 244
Quiet words of management 245 11.4 Performance appraisals 302
Networking 246 Methods to appraise performance 303
Gender equity 246 The performance appraisal interview 304
Breaking through the glass ceiling 247 Phases of an appraisal interview 306
Valuing diversity 248 Give and receive feedback 307
Leading remote workers 248
11.5 Constructive solutions to problems 309
9.5 Mentoring and coaching 249 SCOOP model 309
Mentor to support development 249 Crucial conversations 310
Coach to improve performance 251 Coaching conversations 310
Permission statements 311

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 Contents ix

11.6 Value of individual performance plans 312 Stakeholder analysis 358

Performance plan guidelines 312 Stakeholder profile 359
Rating scales 314 Clarification of issues 360
Types of learning and career development 314
13.2 Developing a project plan 361
Requests for review 314
Work breakdown structure 361
Compliance with legislation 315
Work packages 362
Equal employment opportunity 315
Project network 362
Activity-on-node method 363
CHAPTER 12: Manage and implement
Establishing controls 366
operational plans
Estimating time and costs 367
12.1 Operational plans reflect corporate strategic plans 326 Estimating processes 367
Sample strategic plan 327 Project budget 367
The value of operational plans 327 Allocating resources and tasks 368
Organisational planning cycle 329 Managing risk 369
12.2 Develop an operational plan 330 Risk register 371

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Research and organise resource requirements 330 Developing a communication plan 371
Apply SMARTTA objectives 333 13.3 Administer and monitor the project 372

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Set key performance indicators (KPIs) 333 Communication and influence 373
Prepare a work breakdown structure 334 Monitor and control 374
Document resource requirements 335 Records and reports 374
Conduct a risk assessment 336
13.4 Finalise and review the project 375
Develop contingency plans 336
Review project 376
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Communicate with stakeholders 337
Lessons learnt 376
12.3 Acquire human resources 338 Project review report 376
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Induct employees 338
Supervise and empower 339 CHAPTER 14: Manage and monitor customer service
Confirm delegations, accountabilities and
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14.1 Customer value 387

responsibilities 339
Customer segments 387
12.4 Acquire physical resources 340 Types of customer interaction 388
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SIPOC analysis 340 Value proposition 389

Coordinate materials control cycle 341
14.2 A customer-centred approach 389
Select a supplier 341
Lifetime customer value 389
Record materials received 342
Voice of the customer 390
Maintain physical resource inventory 342
Collecting VOC information 391
12.5 Monitor and control operational performance 343 Providing sufficient information to respond 393
Correct unsatisfactory performance 343
14.3 Manage the delivery of quality service 395
Monitor profit, productivity, plans and objectives 344
Customer service charter 396
Monitor and control quality 345
Implementation strategies 397
Monitor and control costs 347
Customer service standards 398
Plan for process improvement 348
Coach and mentor to meet customer service
standards 399
CHAPTER 13: Manage projects
Providing customer satisfaction 401
13.1 The project management process 356 Develop an agreed communication plan 401
Scope definition 356 Provide advice and gain cooperation from others 401
Project documentation 358 Deal with customer complaints 402

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 x Contents

14.4 Monitor, adjust and review customer service 404 16.4 Current issues and HR trends 450
Monitor and review customer satisfaction 404 Talent management 450
Pareto analysis 404 Work–life balance 451
SIPOC diagrams 406 Workforce diversity 453
Adjust customer service practices 407 Equal employment opportunity 454
Report on customer service improvements 407
16.5 Enhance workforce capability 454
Environmental constraints on HR 457
CHAPTER 15: Problem solving and decision making Outcomes from HRM 457
15.1 Decision levels 417
Types of problems 417 CHAPTER 17: Manage diversity in the workforce

15.2 Productive thinking 418 17.1 Understanding diversity 466

Faster decision making 418 An inclusive workplace 467
Consensus, majority, authority 419 Diversity policies 467
Diversity awareness programs 467
15.3 Problem-solving process 419
Role of managers and supervisors 468

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Step 1: Identify and define the problem and analyse
the causes 420 17.2 Discrimination 469

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Step 2: Identify standards to assess possible Legal definition 470

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alternatives 421 Anti-discrimination legislation 470
Step 3: Develop and assess alternative solutions 422 Hiring and firing 471
Step 4: Select from the alternative solutions 423 17.3 Equal employment opportunity (EEO) 472
Step 5: Implement the decision (chosen solution) 424
Step 6: Monitor and evaluate effectiveness 425 17.4 Sexual harassment and bullying 476
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Common mistakes in problem solving 426 Sexual harassment 476
Workplace bullying 476
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15.4 Facilitate the group process 426 Complaint handling system 478
Role of the facilitator 426
Facilitation process 426 17.5 Diversity management 479
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Flexible work arrangements 479

Benefits of diversity 480
PART 5 Implementing good
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workplace practice CHAPTER 18: Ensure and monitor a safe workplace

18.1 Legal framework of WHS in the workplace 491

CHAPTER 16: Managing human resources and Commonwealth legislation 491
workforce planning Consultation with workers 492
Role of the HSR 493
16.1 Human resource management and strategy 439
Health and safety committees 493
Strategic alignment 439
Duty of care 494
Alignment models 440
Ethical processes 441 18.2 Purpose of a WHSMS 496
Human resource strategy 441 Develop policies and procedures 497
Develop a WHS plan 497
16.2 Develop a human resource strategic plan 444
Research HR requirements 444 18.3 WHS participative arrangements 499
Prepare the plan 444 Evaluate participative arrangements 501
Measure HR results 445
18.4 Identify hazards, assess and control risk 502
16.3 Workforce planning 446 A process approach 502
Workforce planning model 446 Identify hazards and treat risk 503
Succession planning 448 Types of hazards 503
Employee engagement and retention 449 Purpose of safety inspections 504

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 Contents xi

Rank the risk associated with a hazard 506 Drivers of sustainable practices 559
Investigate incidents and take corrective actions 507 Environmentally sustainable work practices 560
Benefits of sustainable business practices 562
18.5 WHS records and reporting 509
Cradle to cradle 563
Incident reporting 509
Audits and compliance 511 20.5 Sustainability reporting 563
National Greenhouse and Energy Reporting 563
CHAPTER 19: Risk management Purpose of sustainability reporting 564

19.1 What is risk? 524

Types of risk 524 CHAPTER 21: Responding to change
Threats and opportunities 525 21.1 Change 574
Risk culture 526 The constant cycle of change 575
19.2 Risk management process 526 Causes/sources of change 575
Communicate and consult 527 21.2 Change agent 576
Establish the context of risk 527 Internal change agent versus external change agent 576

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Identify the risk 527 Technical expert or process facilitator 577
Risk analysis 530 Essential skills of a change agent 578

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Risk evaluation 530

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Risk register 531 21.3 Diagnosis 582
Risk treatment 531 Importance of accurate diagnosis 582
Monitor and review 533 Diagnostic techniques 582

19.3 Benefits of risk management 533 21.4 Building commitment to change 584
Impact of change on individuals 584
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Corporate governance 533
Value added 534 Resistance to change and overcoming resistance 584
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Positive outcomes 534 21.5 Change interventions 586
Seven forces for change 587
Kotter’s eight steps of change 587
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PART 6 Managing for

sustainability CHAPTER 22: Manage quality and continuous
improvement
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CHAPTER 20: Sustainable development and policies 22.1 Understanding quality 602
The importance of quality 603
20.1 Global thinking and partnerships 545
Quality management systems 604
Rio 1992 545
Quality standards 604
2012 Rio+20 Conference 546
Greenhouse gas agreements 546 22.2 Quality and continuous improvement 605
Continuous improvement 605
20.2 Challenges to sustainability 547
The Deming cycle 606
Greenhouse gases 548
Six Sigma 607
Climate change 548
Managing innovation and continuous improvement 609
Depletion of the earth’s ecosystems and resources 549
Ecological footprint 550 22.3 Tools for continuous improvement 611
Benchmarking 611
20.3 Government priorities 551
Ishikawa fishbone diagram 612
Carbon pollution reduction 551
Pareto analysis 614
Clean energy strategy 553
Flowchart 615
Green-collar jobs 554
Histogram 616
Green buildings 556
Control chart 617
20.4 Sustainability policies and business practices 557 Check sheet 618
Sustainability policy 558 Scatter diagram 618

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 xii Contents

22.4 Case application: Continuous improvement 620 Analysis of the external environment 640
Identify the problem 620 Analysis of strengths, weaknesses, opportunities
Objective of the continuous improvement project 620 and threats (SWOT) 640
Analysis of the current process 620
23.3 Strategy and objectives 642
The continuous improvement team and
Objective setting 642
its responsibilities and objectives 621
Measures of success 642
Analysis of the current situation 623
Implementing and executing strategy 642
Insights 624
Assign responsibilities 643
Futher data 624
Set deadlines 643
Quality measure 625
Provide customer satisfaction 644
Recommendations 625
Continuous learning 644
Conclusion 626
Reviewing outcomes 645
Use performance indicators to monitor progress 645
CHAPTER 23: Strategic management Make necessary refinements to plan 645

23.1 Strategic management process 637 23.4 Writing a strategic plan 646

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Levels of strategy 637 Formatting a strategic plan 647

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Characteristics of good strategies 637 Align objectives across organisational levels 649

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Tasks of strategic management 638 Assign duties and accountability 649

23.2 Vision, mission statement and values 639 Glossary657

Analyse the internal and external environment 640
Index667
Strengths and weaknesses of existing and potential
competitors and allies 640
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 xiii

About the authors

Judith Dwyer holds a Master of Management (Public) from the University of Technology Sydney, Bachelor of
Economics from the University of Sydney, Diploma in Education from the University of Newcastle and membership
of the Australian Institute of Management (AIMM). She has worked extensively in vocational education and senior
management of organisations. Her senior management roles in both public and private organisations have provided
invaluable experience and support for the writing of Management Strategies and Skills 2nd edition. In her early
career Judith taught business students management, business and communication skills. She progressed to senior
management level within NSW Technical and Further Education (TAFE) and then worked as a chief executive officer
in a private sector organisation.

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Judith views the second edition of Management Strategies and Skills as a tool that enables managers, supervisors
and team leaders to assess critically their role within an organisation from three perspectives. The first perspective is

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an organisation’s vision, strategic objectives and internal business systems and processes. The second is innovation,

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learning, sustainable development and continuous improvement. The third and most important is the perspective of
the customer.
Judith has become a leading vocational education and training consultant. She has authored textbooks and
learning and assessment materials linked to the national Business Services and other training packages. Her
involvement in industry, reflected in this book, provides the essential knowledge, stimulus and innovative ideas for
today’s manager.
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Nicole Hopwood holds a Graduate Diploma of Management and a Bachelor of Economics and is a member of
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CPA Australia. Her professional experience includes working in various industries, including professional services,
banking and telecommunications. She has specialised in business reconstruction and insolvency in the professional
services industry. She has communicated the results of detailed analysis to decision makers in both investment and
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retail banking in the United Kingdom and Australia. Nicole has set up and maintained monitoring tools for use in
analysing whether customers are credit worthy in the telecommunications industry.
Nicole’s extensive professional experience in Australia and the United Kingdom has led her to the realisation that
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each member within an organisation has a responsibility for continuous improvement both personal and professional.
Her philosophy, reflected in this book, is that continuous improvement and learning are integral to improvement
in every aspect of an organisation’s activities. Linked to continuous improvement is ongoing organisational change
and deep insights can be gained from systematic collection and analysis of data. She believes the best decisions are
based on the correct analysis of quality data. Continuous improvement and effective management of change lead to
customer satisfaction, new customers, premium pricing, profitability, brand reputation, employee enagement and
high morale. The organised, systematic application of the knowledge, tools and resources of change management
provides organisations with a key process to involve stakeholders and achieve change successfully.

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 xiv

Preface
Throughout this book the term ‘organisation’ refers to private, public or not-for-profit businesses. All organisations
require managers, supervisors and team leaders with the ability to think through and define the vision, specific
purpose and objectives of the organisation. They need to plan, coordinate, monitor and control work productively and
manage and engage employees in sustainable, motivating processes and tasks to achieve organisational objectives
and ongoing customer value.
The focus throughout the book is on management practice and continuous improvement to provide customer
satisfaction. Managers, supervisors, team leaders and employees at all levels need to understand how the processes
within an organisation work, to analyse data about the process and to think and draw conclusions about how to

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improve the process. Proposed improvements to systems and processes must be able to be tested, validated and
incorporated into the organisation’s standard operating procedures. Communication with others in similar processes

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is required so learning happens across the organisation.

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Managing change and people is about defining the organisation’s vision and then achieving that vision through
the management of self and very importantly the efforts of teams, groups and other stakeholders. Change is viewed
from the perspective of stakeholders, the customer and sustainable development.
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Acknowledgments
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We especially wish to thank the case study contributors to this book: Will Baker, Liam Burns, Dave Grosvenor, John
Hunter, Amar Sood and Nav Sood. We would like to extend our sincere appreciation to Maria Saupin for the giving of
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her time to review and after the insightful comments that helped us to improve this new edition.
Thanks also to the many colleagues and individuals whose valuable suggestions and constructive comments
have contributed to the success of this book. In we thank John Burns for his wisdom, advice and generosity of spirit
throughout the writing process particular. John was an excellent sounding board and provided critical and stimulating
comments. We are deeply appreciative.
We wish to extend our appreciation to the professionals at McGraw-Hill. They include publisher Norma Angeloni-
Tomaras, development editor Alex Payne and production editors Marisa Rey Bulen and Lindsey Langston.

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 xv

What’s new in this edition?

This edition has six parts and three new chapters: Chapter 7 Non-traditional teams, Chapter 12 Manage and
implement operational, plans and Chapter 20 Sustainable development and policies. Chapter 19 Managing risk was
previously available online and it now included in the book.
Part 1 Understanding management introduces the student to management principles and practices. Part  2
Managing interactions highlights the dynamics of personal and group interactions, presentations and public
speaking, the management of personal work priorities, professional development and the management of workplace
relationships. Part 3 Understanding teams focuses on principles underpinning team effectiveness, features of
non-traditional teams and the development of teams and individuals in a workplace learning environment. Part 4

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Leading and managing operations addresses leadership theories, recruitment, selection, induction and termination
practices, how to assign duties and appraise performance, operational planning, managing projects, managing and

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monitoring customer service, problem solving and decision making. Part 5 Implementing good workplace practice

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presents practical strategies to manage human resources and workforce planning, manage diversity in the workplace,
ensure and monitor a safe workplace and manage risk. Part 6 Managing for sustainability focuses on sustainable
development, responding to change, quality and continuous improvement and strategic management. The online
content looks at knowledge management and learning organisations and management in a globalised economy.
The variety of features and learning activities throughout each chapter enables students to put their learning
into practice in their studies and workplace. The writing style is user-friendly and complemented with practical
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applications of management principles and concepts that provide value to both students and lecturers.
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 xvi

24 Features of this book

PART 1 Understanding management

Apply your knowledge 3

8 PART 1 Understanding management  Good1 practice

Work infeatures at the beginning of each chapter
small groups. Contents:
highlight current business practices or points of view and
1.1 Levels of management 4

a) Brainstorm to create a list

The findings of the Australia at Work Report (Van Wanrooy et al. 2008, p. 34) concur.
of the aspects common to every organisation. 1.2

1.3
Managerial functions

Management skills
6

helpthatstudents see
Create
b) PART 2thearelevance
checklist of the
of the chapter.
tasks who that face the management of every organisation.
34‘approachable’;
chapter
1.4 Organisational structures 13

There was special praise for management was Managing

communicatedInteractions
their expectations ‘clearly’; 1.5 Challenges facing managers 18

c) Discuss the challenges facing managers, supervisors and team leaders in the current environment.
recognised ‘prior learning’ and worker capacities; and were ‘supportive’ in moments of personal and emotional

1
upheaval … Conversely employees disliked management that lacked respect, sensitivity, or a willingness to consult
with the workforce. 2 One of the issues facing organisations is the rapid growth of data and knowledge. A response to the explosion of knowledge
andGood changepractice: in the economic Talking andthe socialtalkenvironments has been the increase in the number of organisations with knowledge
Ask yourself management structures,
Karalyn Brown’s article ‘Talking the Talk’boundaryless
quotes Liz Cassidy, from structures and network
Third Sigma International, structures.
and Andrew Rogers, Discuss each of these structures and give an
the national sales

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example
manager atof
Managers work hard to provide direction, guidance and support in achievement
each.
ofMaura
objectives and outcomes.
Fay Workshops, on Interpersonal
why managers need to be powerful communicators. Learning objectives
roles, information and decisional roles are undertaken to ensure operations are managed efficiently and effectively.
3
After studying this chapter you should be able to:

Write a short information report. In your report: LO 1.1 Identify the levels of management inherent in the private sector, public

Conversation basics sector and not-for-profit organisations

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ASK YOURSELF: How do you contribute in your area of operations? discuss
a) So,Whatwhat definesthe changing patterns
In what of employment and the impact on managers
LO 1.2 Identify five functions carried out by all managers and explain the
role(s) do you undertake to add value? importance of interpersonal, decisional and informational roles when

ways can you provide direction, guidance and support to your team or department?
a good business conversation? fulfilling managerial functions

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identify
b) ‘First, you needyoura point’,preferred pattern of employment
it’s simply a two-wayand provide reasons
foundations for ofyour choice
management
LO 1.3 Identify and explain the importance of managerial skills to improving
says Cassidy. ‘Without a purpose flow of something, and it may meander without a managerial effectiveness
LO 1.4 Discuss factors that impact on an organisation’s structure and define

c) useful outcome.’
explain the reasons organisations have for embracing flexible work arrangements
different types of organisational structures
LO 1.5 Describe the changing management environment and the challenges of

Rogers is careful to clarify the difference between an outcome and an objective. ‘A lot of issues occur when people get these being a manager

outlinehe says.
d) confused,’ the ‘Lots
skills managers
of people are not taughtwill increasingly
that an outcome is: what doneed toother
I need the manage distributed
person to do, andas avirtual teams.
think or experience
1.3 Management skills 4 Describe
a) result the outsourcing process.
of the conversation?’
Managers, supervisors and team leaders are He claims communication is not a joint responsibility. ‘We argue it’s not anyone’s responsibility to listen to a poorly-articulated
b) Create a two column table. List in column one the positive effects of outsourcing and in column two list the negative effects of
responsible for planning, organising, coordinating, message. If you acknowledge it is your responsibility for the outcome, then you take ownership of it’, he says. The classic response
monitoring and controlling the systems, processes outsourcing. Political Technical Chapter openers include a chapter outline to provide a framework for
from people who do not understand this premise is ‘Why don’t people listen to me?’ As easy asit sounds, quality listening is hard. ‘To
and tasks of their department or team. Their skills have really great conversation you need to suspend yourself. Step back and actively listen’, says Rogers.
Create
c) Source: a checklist
skill
that
skill
managers at all levels in an organisation reading can
April 2009,and
use to and
study minimise thelearning
chapter negativeobjectives
impacts of to
outsourcing
focus the and
reader on key
e
and abilities play an important role in managing Brown, Karalyn. ‘Talking the Talk’, Management Today, Australian Institute of Management, pp. 36–7.
performance and achievement of objectives. They set
goals, guide, give directions, make decisions, handle a
downsizing.
Change
management
Collaborate
through concepts.
5
variety of problems and act as role models on a daily Work in small
skills groups. technology
pl
basis. Regardless of their management level effective Management
managers have the critical skills shown in Figure 1.2.a) Brainstorm the skills tasks completed by a first-line manager.
Interaction
Identify and communication Interpersonal
skill the
b) management
Diagnostic
competencies
because
by managers, supervisors or team leaders 
it connects them required by a first-line manager. Ask
plays yourself
a key
skill with more senior managers, team members, staff, customers and
feature allows students to involve themselves in possible
role in workplace
Technical skill
Technical skill involves understanding and Create
c) others inside a profile
and outside of the
a good first-line
organisation. manager.
A brief survey of positions vacantchoices, assess
advertisements possible consequences and consider how they might respond.
for manager,
demonstrating competence to the level required in a supervisor or Conceptualteam leaderEthicalpositions in newspapers or on the internet shows many advertisements for
Compare positions
d) management your
skill profile with other groups. This12feature allows a pause for thought and reflection.
m

behaviour
require communication skills (e.g.‘… along with outstanding PART 1 Understanding
communication and management
particular workplace activity. Technical skills include
6 plantWork
accounting, engineering, heavy manufacturing, in a group of six. Form into
stakeholder management capabilities’). two
At all teams
stages of their to debate
career, the benefits
communication underpinsand costs
success and of globalisation.
operations, information technology skills, mining, the higher they rise in the organisation the more important communication becomes.
financial building and many others. A number of The communication process is deceptively simple, yet it has many factors and influences. Elements in
Figure 1.2 >  Management skills
technical skills are applied when, for example, using Figure 1.2 > Management skills
the process consist of the sender, message, channel, receiver, feedback, barriers and context. Gaining an Ask yourself
computer software packages, creating budgets, understanding of these is the first step in understanding the actions and behaviour of others.
Sa

operating machinery and equipment, and using personal information managers (PIMs) and personal digital
Effective interpersonal communication enables managers, supervisors and team leaders Major to control
causeswork
of illegal and unethical behaviour in the workplace include excessive emphasis on profits, misplaced corporate
assistants (PDAs).
Tables and figures provide a user-friendly visual
 in each industry and
The technical skills used will differ
systems and procedures, motivate others and balance the needs and goals of individuals and the
at each level of management. First-level managers
organisation.
loyalty, obsession with personal advancement and unwillingness to take a stand about what is right.
Anneed
understanding of the elements inproduction
the communication process enables them to plan and monitor their
reference throughout each chapter.
may engage in the actual operations of the organisation; they
and service occur in the organisation in order to direct and
to have an understanding
communication to ensure their
evaluate line employees.
of how
intendedfirst-line
Additionally, message gets through to the receivers. They use their communication
ASK YOURSELF: How does your organisation encourage ethical behaviour? How do you decide whether an action violates
managers need skills in scheduling workers and preparingskills, such
budgets. as listening,
Middle speaking,
managers use nonverbal
more technical skillscommunication, questioning and offering feedback as they
communicate expectations and objectives. Good interpersonal skills and techniques—such anyas
company or professional code of ethics? What options do you have to deal with unethical conduct in your workplace?
empathy,
related to planning and organising. Top managers need to have the skills to understand the complex financial
listening
workings of the organisation and the ability to innovate, adapt and and positive
facilitate feedback—create
the organisation’s a positive
resilience and working environment built on mutual respect.

KEY TErms
responsiveness to changing circumstances in the external environment.
The main objectives of written communication are to transmit instructions or requests, inform staff
on new policies, arrangements, developments and processes and request information to assist in decision CHAPTER 1 Foundations of management
Collaborate through technology making. Emails, letters, short reports and service agreements authorise actions, confirm decisions and pass skills
Influencing
information, suggestions, ideas and developments
The pace and global nature of modern business means managers, supervisors and team leaders have to upwards and downwards along the organisation’s chain of
Influential managers, supervisors and team leaders are able to express their views, ideas and requests with

SummARY
make effective decisions quickly and on occasions they command.
may be sent anywhere around the globe. They now
confidence. They use listening and questioning skills to understand others, overcome barriers and increase
adaptive resilience 10 interpersonal roles 6
the likelihood of successful outcomes. The key to persuasive communication and gaining others’ agreement
apps 9 2.1 Interpersonal communication joint isventures
to understand23 the needs of others. Influence is not about ingratiation or sycophancy to more senior people.
Managers, supervisors and team leaders form part of the network of influence in their organisation. Their
boundaryless
Communication is As well organisations
as being proficient11 knowledge
in their functional and technical areas of expertise effective managers, role management
supervisors
requires them to influence organisational structure
others. According to Barker16 and Coy (2005, preface): ‘Simply defined, power
8
any behaviour, verbal, and team leaders are able to communicate and work with6:55
11/02/13 others
PM LO 1.1 and
in a purposeful, supportive Identify
flexible thetolevels
manner.
is the ability
of management inherent in private sector, public sector and not-for-profit organisations.
change the behaviour, attitudes and beliefs of others. Influence is the exercise of that power. In
bureaucracy
nonverbal or graphic,
that is perceived by 14
Their communication with team members is effective because it achieves the intendedmanagers outcome
other and4 builds
words, power is something that you may
another. connections and ongoing relationships with others inside and outside the organisation.In Australia
Communicationorganisations
is an(2008, p.are classified as have or strive
private for; influence
sector, public is what you door
sector with it’.
not-for-profit. Organisations have
business ethics 11 matrixmission,
an overall structure
McInerney
a15 vision,
34) suggests: ‘The art of influence in management is less about beating up on someone
valuesandorusing
priorities and strategic objectives
else, than listening, being generous key interpersonal skills’. Influential managersdesigned toto:achieve several overall
have the ability
 Key terms are bolded in the text the first time they are
core workers 20 network■structure
accomplishments. They17have
communicate long-term
authoritatively strategies
with those inside andor approaches
outside to achieve the strategic objectives, systems,
the organisation
■ diffuse anger and deal with conflict effectively
used, defined in the margin at that point, and listed at the
corporate social responsibility (CSR) 10 sub-systems, processes,
not-for-profit policies,
organisation 6 procedures
■ give honest, timely and fair feedback confidently
and plans to enable departments, teams and individuals to achieve
end of each chapter. They also appear in the glossary at the
decisional roles 7 the organisation’s
organisation■ adapt
4purpose.
style to different levels of staff as appropriate
■ deliver presentations, chair meetings and lead activities to achieve the best possible outcome for
end of the book.
distributed team 16
Dwyer_Ch02.indd 34
LO 1.2organisational
Identify fivestructure
the team 13
or organisation.
16/01/13 6:56 PM
functions carried out by all managers and explain the importance of interpersonal, decisional
 Summaries provide a brief overview of the learning objectives.
downsizing 18 outsourcing 19 to communicate effectively across the diverse range of people both within and outside the
and informational roles when fulfilling managerial functions.
They are able
organisation. The increasing diversity as organisations interact with others at the national and global level
ethics 11 private
The functions sector
requires 5 to communicate
undertaken
managers
by all managers are planning, organising, leading, controlling and monitoring. The
and influence a variety of people with different perspectives and diverse
freelance worker 19 roles identified
publiclifesectorby 5Mintzberg
and career experiences. are interpersonal roles (figurehead, leadership and liaison), informational roles
Effective managers,
(monitor, disseminator and supervisors
spokesperson) and teamandleaders use their power
decisional rolesand influencing skills disturbance
(entrepreneur, to interact handler, resource
globalisation 22 restructuring
with others18 courteously and in accordance with the accepted norms of business behaviour. Ineffective
allocator and
managersnegotiator). Managers
dismiss the value undertake
of influence eachaggressive
and demonstrate of theseor roles andbehaviours
submissive functions that as they plan strategy, utilise
increase
hot desking 20 strategic
resources and alliance
misunderstandings 22
make decisions to achieve
and barriers the organisation’s
between people and organisations.vision, purpose and objectives.
hotelling 20 sustainability 22
LO 1.3 Identify and explain the importance of managerial skills to improving managerial effectiveness.
informational roles 7 team 18
innovation 21 Organisational behaviour is a direct or an indirect result of the organisation’s vision, values, systems, leadership and
Apply
management. your knowledge
A successful organisation has effective leadership and skilful management. Effective management
flows from the
1 skills
Create carried
a list of tips for by an organisation’s
managers under three headings: senior, middle and first-line managers. Skills include technical,
conceptual andb)a) diagnostic skills
planning and organising
leading
to make decisions, direct and guide operations towards required outcomes. They
also include ethical behaviour,
c) controlling and monitoring.change management, collaboration, political and interpersonal skills to provide
2 a) Describe Mintzberg’s managerial roles.
feedback, motivate and create a positive performance driven climate.
b) Consider your competence in each of these roles and create a two column table. In column one, identify your strengths and in
Dwyer_FM.indd 16 column two identify the role(s) in which you need further development. 15/03/13 1:36 PM
LO 1.4 Prepare an that
c) factors
Discuss action plan to improve
impact onthose
anroles that need for further development.
organisation’s structureIn the
andaction plan identify
define steps, actions,
different types of organisational
 nonverbal behaviour demonstrates competence, confidence and acceptance of others. Constru
on performance, both positive and negative, develops a team of people willing to work together to
objectives.

LO 2.3 Describe feedback methods and how feedback motivates, rewards and improves performanc
Feedback is the connecting and continuing link in the communication. Effective feedback helps
enables. Managers, supervisors and team leaders give and receive feedback, acknowledge and reco
feedback about performance and empower the receiver. The outcomes from ongoing constru

xvii
are employees who identify with the organisation and its purpose, a positive work environmen
communication and transparent decision-making processes.

LO 2.4 Discuss the features of good business writing and strategies to avoid common pitfalls.
Good business writing is clear and moves straight to the point with easy to understand, concr
enhance meaning. Sentences are kept to about 20 to 25 words in length and clustered into p
flow logically from one idea to the next. Effective business writing has a courteous, confident ton
information appropriate to the writing purpose and a professional layout.
Strategies to avoid common pitfalls in business writing are removing unnecessary words, am
Management: Strategies and Skills offers a variety of features to promote and
active learning,
clichés, avoiding astimulate critical
demanding tone, thinking
addressing concerns and complaints and taking the ti
an outline or dot points to plan an email, letter or report. Confident, courteous, organised and c
and develop management knowledge and skills. Each chapter of the book has the following features:
enhances understanding and hence efficient and effective action in the workplace.

LO 2.5 Adopt a structured approach to writing emails, business letters, short reports and service lev
As they plan, coordinate, monitor and review processes and tasks managers, supervisors and team
data and transform it into logical, structured information. They analyse information, draw conclu
findings, make recommendations and take action to inform ongoing planning, problem solving
making. A structured approach—planning, writing and editing—enables them to convey their m
and confidently in emails, letters, short reports, service agreements and other forms of written com
 Apply your knowledge exercises provide short practical activities that  Review questions allow students to test their learning.
reinforce theoretical content. Some are designed to allow students to engage
in group
24exercises.
PART These are practical
1 Understanding activities presented at strategic points
management review queSTionS
in the chapter.
1 a) Outline the relationship between effective communication and effective management.
b) Discuss the characteristics of effective management communication.

Apply your knowledge CHAPTER 1 Foundations of management 2 a) 27

Briefly explain the elements in the communication process.
b) 27

y
CHAPTER 1 Foundations of management Discuss barriers to communication.
1 Work in small groups.
WORKinG TOGEThER
a) Brainstorm to create a list of the aspects common to every organisation. 3 a) Describe the active listening process.
WORKinG TOGEThER b) How do verbal communication skills complement listening?

l
b) Create a checklist of the tasks that face the management of every organisation.
c) Discuss the challenges facing managers, supervisors and team leaders in the current environment.
Work in small groups. Your task is to:

on
2 One of the issues facing organisations is the rapid growth of data and knowledge. A response to the explosion of knowledge
Worka)inBrainstorm
small groups.theYour task is to: of managers in today’s organisations.
responsibilities CHAPTER 1 Foundations o
and change in the economic and social environments has been the increase in the number of organisations with knowledge
b) Brainstorm
Prioritise the responsibilities
a) the managementbystructures,
responsibilities oforder of importance.
managers in today’s organisations.
boundaryless structures and network structures. Discuss each of these structures and give an
c) Create a checklist of essential
b) Prioritise the responsibilities
example of each. and desirable qualities
by order of importance. for an effective manager in an organisation of your
choice.a checklist
c) Create
d) choice.
3 of
Compile a job description
essential
Write a shortand
and
a) discuss the
desirablereport.
information
a newspaper
qualities
recruitment
changing patterns
for anreport:
In your effective manager in an organisation
advertisement
of employment and thefor a person
impact
Dwyer_Ch02.indd
WORKinG TOGEThER
of your
62
with those qualities to fill
on managers
the position.
d) Compile b) identify
a job description andyour preferred pattern
a newspaper of employment
recruitment and provide
advertisement for a reasons for your
person with choice
those qualities to fill
e) the
Theposition.
person appointed to the position
c) explain the reasonshasorganisations
not held a management position
have for embracing before.
flexible workApart from inducting them Work in small groups. Your task is to:
arrangements
intoperson
the organisationd) and outline thedepartment,
their skills has
managers
notwhat willother
aincreasingly
types ofneed to manage
training youdistributed
dobefore. think and
thefrom virtual
person teams.
should
Exploring the web encourages students to research on the web and learn
 e) The appointed to the position held management position Apart inducting them a) Brainstorm the responsibilities of managers in today’s organisations.
e
receive?
into 4
Develop
the organisation Describe
aa)listand their the
of topic outsourcing
areas and give
department, process.
reasons
what otherfor yourofchoice.
types training do you think the person should b) Prioritise the responsibilities by order of importance.
more about relevant areas covered in the chapter.
receive? Develop ab)listCreate a two
of topic areascolumn table.
and give List in column
reasons for yourone the positive effects of outsourcing and in column two list the negative effects of
choice. c) Create a checklist of essential and desirable qualities for an effective manager in an organisation
outsourcing.
choice.
pl
c) Create a checklist that managers at all levels in an organisation can use to minimise the negative impacts of outsourcing and
ExpLORinG ThE WEb
downsizing. d) Compile a job description and a newspaper recruitment advertisement for a person with those q

ExpLORinG
5
ThE WEb
Work in small groups.
a) Brainstorm the tasks completed by a first-line manager.
the position.
e) The person appointed to the position has not held a management position before. Apart from in
1Complete the ‘How Good Are Your Management Skills?’ quiz at www.mindtools.com/pages/article/newTMM_28.
b) Identify the competencies required by a first-line manager. into the organisation and their department, what other types of training do you think the person
htm to learn
themore
‘Howabout your management skills.
m

1 Complete Good Are Your

c) Create Management
a profile of a good Skills?’
first-linequiz at www.mindtools.com/pages/article/newTMM_28.
manager.
htm to learn more about your management
receive? Develop a list of topic areas and give reasons for your choice.
2 a) Visit the ‘Complete Compare
d)Guide to Ethics profileskills.
your Management:
with otherAngroups.
Ethics Toolkit for Managers’ at http://managementhelp.
6 Work in a group of six. Form into two teams to debate the benefits and costs of globalisation.
org/ethics/ethxgde.htm.
Working together enables students to engage in
2 a) Visit the ‘Complete Guide to Ethics Management: An Ethics Toolkit for Managers’ at http://managementhelp.
org/ethics/ethxgde.htm.
b) Identify 10 myths about business ethics. group work.
c) Identify
b) Identify 10
10 myths
benefits of managing
businessethics
ethics.in the workplace. ExpLORinG ThE WEb
Sa

about
d) Identify
c) Prepare 10
a brief written
benefits description
of managing of a in
ethics highly ethical organisation.
the workplace.
e) Prepare
d) Developaan ethical
brief checklist
written that a of
description manager
a highlycould refer
ethical to when faced with an ethical dilemma.
organisation. 1 Complete the ‘How Good Are Your Management Skills?’ quiz at www.mindtools.com/pages/article
e) Develop an ethical checklist that a manager could refer to when faced with an ethical dilemma.
htm to learn more about your management skills.

KEY1:WORDS
CASE STuDY ThE mAnAGER’S ROLE 2 a) Visit the ‘Complete Guide to Ethics Management: An Ethics Toolkit for Managers’ at http://mana
org/ethics/ethxgde.htm.
CASE STuDY 1: ThE
adaptive resilience 10 mAnAGER’S ROLEinterpersonal roles 6 b) Identify 10 myths about business ethics.
(This case study continues the information provided in ‘Good practice: The manager’s role’ on page 4.)
apps 9 joint ventures 23
(This caseBaldwin
study continues the information provided c) Identify 10 benefits of managing ethics in the workplace.
Michael is a business development
boundaryless 11 inwith
manager
organisations ‘Good practice:
Total TheLtd.
Tools Pty manager’s role’knowledge
on he
In this capacity page 4.)management
investigates potential
organisational structure 16
businessBaldwin
opportunities and opportunities formanager
franchise expansion. d) Prepare a brief written description of a highly ethical organisation.
Michael is a business development
bureaucracy 14 with Total Tools Pty Ltd. In this capacity he investigates
managers 4 potential
business opportunities and e) Develop an ethical checklist that a manager could refer to when faced with an ethical dilemma.
When asked to describe theopportunities
business ethics 11 for
characteristics offranchise expansion.
a good manager Baldwin says, ‘good managers are natural
matrix structureorganisers
15 and
unafraid
When to back
asked themselves
core
to describe and their
theworkers 20 decisions’
characteristics .
of a good network
manager Baldwin says, ‘good managers structure
are natural 17
organisers and
unafraid
When thetonew backoutlet ofcorporate
themselvesTotaland social
Ptyresponsibility
their
Tools decisions’ (CSR) 10 Baldwin will undertake a newnot-for-profit
. completed
Ltd is fully organisation 6
role as the outlet’s
the new outlet ofdecisional roles
Pty7 Ltd is fully completed Baldwin will undertake a neworganisation 4
CASE STuDY 1: ThE mAnAGER’S ROLE
manager.
When Total Tools role as the outlet’s
manager.
In preparation for the opening distributedofteam 16 he has been concurrently planning a marketingorganisational
the outlet structure
initiative, a follow on 13
from the
downsizing 18 outlet outsourcing a19
Case studies help students to link management concepts to management
initial
In marketing
preparation forresearch
the openingcompleted
of the as partheofhas
thebeen
project approval toplanning
concurrently proceed.aHis tasks include
marketing ongoing
initiative, development
follow on from theof
the client base, ethics
identifying 11
client needs and developing retail and management systems andprivate sector
processes
initial marketing research completed as part of the project approval to proceed. His tasks include ongoing development 5
to meet those of (This case study continues the information provided in ‘Good practice: The manager’s role’ on page 4.)
needs.
practice. A scenario followed by questions allows for practical application of
His client
the attention
base, freelance
is identifying
also focused on worker
client needs19
ensuring staff
and are trained
developing in these
retail processes to be
and management andpublic
ready for
systems the sector to
opening.
processes 5 meet those needs.Michael Baldwin is a business development manager with Total Tools Pty Ltd. In this capacity he investigates
the chapter content.
His attention
All up is also
his vision globalisation
of afocused
good manager 22
on ensuring
is onestaff
whoare trainedassumes
willingly in theseresponsibility,
processes to beeven
ready for restructuring
when the opening.
things 18 be going to planbusiness opportunities and opportunities for franchise expansion.
may not
andup is his
clearly seen hotleading
deskingwith
20 enthusiasm. strategic alliance 22
All vision of atogood
be manager is one who willingly assumes responsibility, even when things may not be going to planWhen asked to describe the characteristics of a good manager Baldwin says, ‘good managers are natural orga
and is clearly
Baldwin’s behotelling
seen toprovides
employer leading 20with enthusiasm.
a sound
sustainability 22
supporting business structure which acts as a template or guide for outlet managers.unafraid to back themselves and their decisions’.
He believes
informationalbusiness,
that a well-structured
roles 7 with appropriate policies and procedures, helps team 18 the manager’s job easier
Baldwin’s employer provides a sound supporting business structure which acts as a templatemake or guide for outlet managers.
butbelieves
there also needs toinnovation 21 within that structure to allow for change, local variations and unforeseen events, all When the new outlet of Total Tools Pty Ltd is fully completed Baldwin will undertake a new role as the outlet
be flexibility
He that a well-structured business, with appropriate policies and procedures, helps make the manager’s job easier
prevalent forces in today’s volatile business environment. manager.
but there also needs to be flexibility within that structure to allow for change, local variations and unforeseen events, all
prevalent
A manager’s forces
role,inBaldwin
today’s volatile
believes,business
is mainlyenvironment.
concerned with the successful management of change. He notes that the In preparation for the opening of the outlet he has been concurrently planning a marketing initiative, a follow
manager’s
A manager’s environment
role, Baldwin changes
believes,every day with
is mainly shifts in with
concerned markettheand client emphasis,
successful staff of
management changes,
change.improvements to
He notes that the initial marketing research completed as part of the project approval to proceed. His tasks include ongoing de
manager’s environment changes every day with shifts in market and client emphasis, staff changes, improvements to the client base, identifying client needs and developing retail and management systems and processes to me
His attention is also focused on ensuring staff are trained in these processes to be ready for the opening.
All up his vision of a good manager is one who willingly assumes responsibility, even when things may not b
and is clearly seen to be leading with enthusiasm.
Baldwin’s employer provides a sound supporting business structure which acts as a template or guide for ou
He believes that a well-structured business, with appropriate policies and procedures, helps make the mana
Dwyer_Ch01.indd 27
Dwyer_Ch01.indd 24
but there also11/02/13
needs6:55
to be
PM flexibility within that structure to allow for change, local variations and unforeseen
11/02/13 6:55 PM
Dwyer_Ch01.indd 27 prevalent forces in today’s
11/02/13 6:55 PM volatile business environment.

A manager’s role, Baldwin believes, is mainly concerned with the successful management of change. He note
manager’s environment changes every day with shifts in market and client emphasis, staff changes, improve

Dwyer_FM.indd 17 15/03/13 1:36 PM

 Q Students...
Want to get better grades? (Who doesn’t?)

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 xx

Competency grid

Chapter Units of competence

Chapter 1 Foundations of management
Chapter 2 Managerial communication
Chapter 3 Presentations, public speaking and meetings BSBADM502B Manage meetings
Chapter 4 Managing personal work priorities and professional BSBWOR501B Manage personal work priorities and professional
development development

y
Chapter 5 Managing effective workplace relationships BSBWOR402A Promote team effectiveness

l
Chapter 6 Ensure team effectiveness BSBWOR502B Ensure team effectiveness

on
Chapter 7 Non-traditional teams
Chapter 8 Develop teams and individuals in a workplace BSBLED401A Develop teams and individuals
learning environment BSBLED501A Develop a workplace learning environment
Chapter 9 Leadership BSBMGT401A Show leadership in the workplace
BSBMGT605B Provide leadership across the organisation
e
Chapter 10 Staff recruitment, selection, induction and BSBHRM402A Recruit, select and induct staff
termination
pl
Chapter 11 Assign duties and appraise performance BSBMGT502B Manage people performance
Chapter 12 Manage and implement operational plans BSBMGT515A Manage operational plan
m

BSBMGT402A Implement operational plan

Chapter 13 Manage projects BSBPMG510A Manage projects
Chapter 14 Manage and monitor customer service BSBCUS501C Manage quality customer service
Sa

BSBCUS401B Coordinate implementation of customer service strategies

BSBCUS403B Implement customer service standards
Chapter 15 Problem solving and decision making BSBWOR401A Establish effective workplace relationships
Chapter 16 Managing human resources and workforce planning BSBHRM503B Manage performance management systems
BSBHRM504A Manage workforce planning
Chapter 17 Manage diversity in the workplace BSBDIV501A Manage diversity in the workplace
Chapter 18 Ensure and monitor a safe workplace BSBWHS501A Ensure a safe workplace
BSBWHS401A Implement and monitor WHS policies, procedures and
programs
Chapter 19 Risk management BSBRSK501B Manage risk
Chapter 20 Sustainable development and policies BSBINN501A Establish systems that support innovation
BSBSUS501A Develop workplace policy and procedures for sustainability
CPPCMN4001B Develop workplace policy and procedures for sustainability
Chapter 21 Responding to change BSBINN601B Manage organisational change
Chapter 22 Manage quality and continuous improvement BSBMGT516C Facilitate continuous improvement
BSBMGT406A Plan and monitor continuous improvement
Chapter 23 Strategic management BSBMGT608B Manage innovation and continuous improvement
BSBSUS501A Develop workplace policy and procedures for sustainability

Dwyer_FM.indd 20 15/03/13 1:36 PM

 CHAPTER

8 on
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develop teams and individuals in a

workplace learning environment

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 205

Contents
8.1 Determine development needs 206

8.2 Types of learning and development 208

8.3 Purpose of learning plans 212

8.4 Support workplace learning 215

8.5 Monitor and evaluate learning 219

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Learning objectives
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LO 8.1  Describe the strategies that managers, supervisors and team leaders can
use to determine team and individual development needs.
LO 8.2  Distinguish types of workplace learning and development.
LO 8.3  Develop a learning plan and explain its value for the learner.
LO 8.4  Outline strategies that sustain a workplace learning environment.
LO 8.5  Explain the value of monitoring and evaluating training and other learning
and development activities.

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 206 PART 3 Understanding teams

Good practice: Development is not the same as training

Development focuses as much on personal growth as skills that are directly related to the job. A development programme is designed
to make individuals more skilled, more flexible in their approach and better qualified for their chosen careers.
Through a development programme, employees can obtain transferable qualifications that benefit the individuals concerned as well
as the business. This can have disadvantages for the business, as it gives workers greater value in the job market. However, Aldi is
willing to take this risk as it believes in providing what is best for its staff. Development options for apprentices include working for
various qualifications. Aldi has a fast-track approach for graduates. Opportunities for graduate recruits at Aldi include secondments
to different international countries to develop all-round expertise.

Aldi retail placement scheme

The Aldi retail placement scheme takes university students
on a one-year placement. This allows the chosen individuals
to show what they can offer the business and to find out

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what the business can offer them. Aldi offers an excellent
reward package for students on a placement, but in return

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expects trainees to have enthusiasm, drive and ambition.

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Successful students get the opportunity to apply for a place
on Aldi’s Area Management training programme.
To support their development, managers help employees
to set personal goals. These are identified during an
appraisal process. This is when a member of staff sits
down with their line manager to evaluate past and current
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performance, to consider what skills are needed going
forward and to set targets for the future. This could involve
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© Bidgee, used under a Creative Commons Attribution License: http://
identifying further training or development opportunities. ­creativecommons.org/licenses/by/3.0/
Source: Extract from The Times 100. Business expansion through training and development, http://businesscasestudies.co.uk/aldi/
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business-expansion-through-training-and-development/development.html#ixzz242l9HjDF, accessed 12 January 2013.

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Managers, supervisors and team leaders operate in organisations ranging in size from large and highly
formal organisations to small and informal organisations. Whatever the size or structure of the organisation,
managers, supervisors and team leaders can facilitate team and individual development by:
■■ giving informal and formal feedback on performance of team members
■■ consulting with the team to review team performance in achieving goals and objectives
■■ identifying learning and development needs in line with organisational requirements
■■ developing learning plans in collaboration with teams and individuals
■■ encouraging individual team members to self-evaluate their performance to identify areas for
improvement.

The developmental aspect of a manager, supervisor or team leader’s role requires them to avoid, at all costs,
non-supportive actions such as criticism, blame and ridicule that demotivate individuals and teams, remove
the opportunity to learn from mistakes and prevent the opportunity to try something new.

8.1 Determine development needs

Any organisation’s effectiveness will increasingly depend on its ability to identify, collect and share knowledge
and information, store, retrieve and use knowledge and information, and innovate and adapt to changing
circumstances. Organisations need to learn.

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 207

A learning organisation can respond quickly to the needs of clients, changing market conditions and A learning
technological advances. Within a learning organisation it is the role of the manager, supervisor or team leader organisation
promotes learning
to ensure that the work team has the necessary skills and knowledge to achieve organisational goals and and exchange of
respond effectively to opportunities and threats in the changing environment. information among
Learning is often associated in our minds with training in a seminar or classroom. This is a narrow view. A its employees hence
creating a more
learning organisation shares skills, information and know-how by creating learning opportunities inside and
knowledgeable
outside the organisation. An organisation may support learning through: workplace.
■■ on-the-job workplace learning, as shown in Table 8.1
■■ off-site activities such as visits to other organisations or industries to observe areas of interest and
best practice
■■ university, TAFE, registered training organisations, professional associations and other external
programs.

Table 8.1 >  Workplace learning opportunities

Opportunities Achieved by

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Mentoring Providing support for high-potential staff, developmental opportunities for minorities in an
organisation and sharing corporate knowledge and business processes

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Work shadowing Observing how an experienced person does the job and being able to identify and discuss new and

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better ways of doing things on the job
Coaching Working with or being matched to someone with more experience so knowledge or skills may be
gained and applied
Training Trying out a new way of doing things on the job and evaluating the result with a mentor or a coach
Experiential learning Reflecting on experiences in the workplace and discussing these with a mentor or coach
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Job rotation Moving to a new position (short term) to learn new skills or to determine whether the job is suitable
for career move
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Project work (on the job) Learning to become part of a team or project to gain new knowledge for the purpose of learning
and development
Provide resources in an in-house Providing resources such as manuals, DVDs, blogs and books, and by making time available for
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learning environment discussion on what has been learned and how the learning may be applied

Table 8.2 distinguishes mandatory training, core training and developmental training. Training Mandatory
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sessions can vary from one- or two-hour induction sessions through to a university degree program for a training requires
organisations
trainee accountant employed in an accounting firm. to comply with
legislation to
provide training
Table 8.2 >  Requirement to provide training for employees,
contractors and
Mandatory training Core training Developmental training others.

RG146 Training for financial advisors Code of conduct for managers, supervisors Building client relationships Core training
and team leaders is training
Workplace health and safety site induction in Leadership development for all team leaders Team building considered valuable
construction industry and therefore
compulsory for all
Responsible service of alcohol (RSA) Strategic management for senior managers Manage and implement change regardless of their
functional specialty.
Manual handling Performance appraisal process Risk management
Fire and evacuation Food safety training Manage work priorities Developmental
Infection control Induction training Conflict management training improves
work performance
and opportunities for
Managers, supervisors and team leaders need the skills to operate in an environment of best practice, career development.
quality and benchmarking and be able to model action-based and participative learning. Managers,
supervisors and team leaders who work effectively in a learning organisation promote learning and innovation
and facilitate team development.

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 208 PART 3 Understanding teams

Ask yourself
An advertisement for a shift manager’s position highlights the linkage of management position to results, innovative solutions
and the development of teams and individuals.

The role of a shift manager is to manage and direct the operations and activities of the team so that statutory, safety
and production performance targets are achieved. The shift manager works with experienced staff; trains, mentors and
develops staff; develops and implements innovative solutions to challenging issues; and manages and implements
workplace change.

ASK YOURSELF:  What types of workplace learning and development do you prefer? What are some things you can do to
contribute to the development of your team? What are some of the things you should probably avoid doing?

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8.2 Types of learning and development

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The purpose of on-the-job training of any type is improved performance. Performance in the workplace is
affected by business processes and procedures, work environment (layout, machinery and equipment),
individuals’ capabilities, limitations of team members and their interactions, knowledge and skills base of
individuals, the team and organisation and their application.
Explicit knowledge Explicit and tacit knowledge is transferred through workplace learning. Explicit knowledge is relatively
is knowledge that easy to access because it is articulated in reports, notices, standard operating procedures and other workplace
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has been articulated
and stored and can documents; therefore, it is stored and can easily be transferred to others. Tacit knowledge is difficult to share
easily be transferred because it is only known by the individual who may not realise its value to anyone else. The tacit knowledge
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to others. carried within the mind of an individual or within an organisation can be learnt through personal experiences,
practice and facilitated activities such as coaching, mentoring, training and other learning activities.
Tacit knowledge
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is knowledge people
carry in their minds
Workplace training
and is hence difficult The progressive shift from technical expertise in one skill only to multi-skilling has created the need for ongoing
to access. training, learning and professional development of employees. The result is that organisations require more
Sa

than trade skills or professional expertise. Organisations are now investing in training, mentoring, coaching
and other learning activities to provide leadership, conflict management, customer service, negotiation and
problem solving.
Managers, supervisors and team leaders may need to provide training in induction sessions, workplace health
and safety (WHS), using new technologies and web-based communication and other areas that cross the boundaries
of job classifications and descriptions. Multi-skilled individuals are able to perform a number of tasks across a variety
of skill areas at a number of different levels. The opportunity to work on different tasks and functions increases
engagement, motivation and productivity because the variety of work makes the job more interesting.
In their training delivery role the manager, supervisor or team leader is the expert in the subject matter;
however, they must also be facilitators of adult learners and understand how adults learn. Figure 8.1 identifies
Adult learning the principles underpinning adult learning identified by Knowles (2005). Adult learning principles apply to
principles state training and learning in the workplace or any other context. The well-known maxim ‘I hear and I forget; I see
that adults are
internally motivated and I remember; I do and I understand’ applies to workplace learning.
and self-directed, Some of the types of training and learning delivered by managers, supervisors or team leaders are:
bring life experiences ■■ one-to-one training
and knowledge to
■■ small group training
learning experiences,
are goal oriented, ■■ demonstration of work skills
are oriented towards ■■ mentoring in the workplace
relevance, are ■■ on-the-job instruction or coaching
practical and like to
be respected. ■■ self-directed learning packages
■■ facilitated workshops and conferences.

Table 8.3 provides useful guidelines to follow in the delivery of workplace training.

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 209

Adult learners need to know

and are motivated to
learn as they experience
Adults are
needs and interests that
Individual differences autonomous and
learning will satisfy
among people change with self-directing, and
age—make optimal provision have a readiness
for differences in style, to learn based on life-
time, place and related experiences
pace of learning and problem-centred activities
Adult learning
principles

Adults have a deep need ‘Adults’ orientation to learning

to be self-directing—the role is life-centred—the
of the trainer is to engage appropriate units for
in a process of organising adult learning
mutual inquiry are life situations,
Experience is the richest not subjects

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resource of adults’ learning—
the core methodology of adult

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education is the analysis

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of experience

Figure 8.1 >  Adult learning principles

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Competent trainers are confident trainers. They are willing to interact positively and use the participants
as a resource to facilitate and aid the learning process. On those occasions when a participant is more
knowledgeable, trainers are able to ask them to contribute and share that knowledge. They gather feedback
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from participants, both during and at the end of the training session to improve training performance.
Table 8.3 >  Guidelines for the delivery of workplace training
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Steps for the training What needs to be done

Knowing your audience •  Access existing training needs analysis (TNA) within the organisation
and their capability •  Survey team to determine training needs
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•  Conduct informal chats prior to the session

•  Ask participants what they know about the topic immediately after presenting the aims of the training session
Planning for the •  Identify clear objective(s) for the session or series of sessions
training •  Prepare a flexible schedule of activities (learner centred) for the session
•  Prepare handouts, visual aids early, check the venue beforehand—chairs and tables arranged as required, proper
equipment, no distractions
Delivering the training •  Present objective(s) at the outset in written format and expressed in terms of behavioural outcomes
session(s) •  Undertake an ‘ice breaking’ activity very early in the session, e.g. provide information (short) about yourself and
ask people their names and one sentence about themselves
•  Use a variety of delivery methods to stimulate active involvement of the participant—discussion groups, exercises,
role plays and brainstorming
•  Involve learners as active participants in their own learning
•  Respond positively and promptly to questions/queries
•  Provide feedback and reinforcement to enhance learning
•  Present information in chunked discrete, logical pieces
•  Provide ‘hands-on’ opportunity to practise the application of the information
•  Allow time for people to digest information
•  Provide a reasonable level of repetition to enhance learning
•  Monitor the progress of participants by observing and asking open-ended questions that let them show
understanding
Concluding the training •  Review and summarise information covered in the session
session •  Provide encouraging feedback to individuals and the group to motivate for future learning
•  Link the learning to organisational and team objectives
•  Point the way ahead

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 210 PART 3 Understanding teams

The transfer of learning into the workplace completes the cycle of learning. Arrangements for the transfer
of learning into the workplace can be made through the use of mentors, partnering more experienced learners
with the less experienced, conducting follow-up sessions, or setting action-based projects or tasks to apply the
learning.

Mentoring
Mentoring programs develop the mentees’ organisational knowledge and career paths. A mentor is
a person who takes an interest in another person’s career and provides positive support, help, advice
and encouragement either formally or informally. People learn from their mentor in a developmental
relationship.
Mentors are often selected from the organisation’s leaders or senior managers. They share corporate
knowledge, organisational values and business processes, and help the mentee build relationships across
the organisation. Examples of successful people who have benefited from having a mentor include business
people (Freddie Laker mentored Richard Branson), politicians (Robert Menzies mentored Malcolm Fraser)
and athletes (golfer Charlie Earp mentored Greg Norman).

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Mentoring provides support for high-potential staff and developmental opportunities for minorities within
the organisation. The advantages for individuals and the organisation are improved motivation, performance

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and career development. Refer to Chapter 9 for more information about mentoring.

Ask yourself
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Mentors provide their expertise to less-experienced individuals in order to help them advance their careers, enhance their
education and build their networks. A mentor provides counsel, insight and guidance.
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ASK YOURSELF:  What would you like a mentor to do for you? Give specific examples. What options do you have to find a
mentor at work?
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Coaching
A coach is a person who helps another to learn, perform and achieve a specific work task or skill. A person
learns with their coach. Coaching is often a formalised process that follows six phases, as shown in Table 8.4.
Refer to Chapter 9 for more information about coaching.
As part of the coaching process managers can delegate specific learning tasks to complete as self-
directed learning. Any delegation of tasks for ongoing learning should happen early rather than at the
last minute and gain mutual agreement. The delegation should include clear, brief instructions about
objectives, resources, priorities and review dates. The manager, supervisor or team leader accepts that
others do things differently, avoids hovering, reviews together in private and on completion praises in
public.

Table 8.4 >  Phases in the coaching process

Phases What to do
1 Determine the training need and Identify and document the problem:
the desired outcome •  Observe the team member on the job
•  Look through the team member’s performance records
•  Consider the outcomes of a formal performance appraisal program
•  Decide what records should be kept, who is to keep them, who is to have access to them
and how confidentiality will be maintained.
State the desired outcome clearly

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 211

Phases What to do
2 Prepare a coaching action plan Prepare a step-by step process:
•  Include specific objective(s) preferably in behavioural terms
•  Identify the necessary resources
•  Identify rights and responsibilities of the respective parties
•  Identify time lines for the attainment of the objective(s) and duration of the coaching
relationship
•  Identify nature and extent of the contact between the coach and the person being
coached
•  Adjust plan in response to ongoing feedback (if required)
3 Explain the process Describe clearly to the team member:
•  What the coaching process will involve
•  What it is designed to achieve and why
•  When coaching will take place
•  How long each session will last
•  What resources will be required
4 Demonstrate the desired Do it fast:
behaviour or task •  Do the task or demonstrate the behaviour at the usual pace expected on the job

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Do it slow:
•  Break the task or the behaviour down into small sections

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•  Carefully demonstrate each section

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•  Clearly explain what you are doing and why
5 Practise Do it with them:
•  The team member should practise the task or behaviour with you at their side or assisting
Let them go:
•  Arrange to observe only
•  Encourage the team member to practise the task or behaviour as frequently as possible
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by themselves
6 Feedback Monitor the team member’s performance
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Correct any variations from the expected standard
Avoid destructive criticism, encourage and motivate
Listen to problems the team member may want to talk about, or any suggestions they have
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Reinforce positively
Acknowledge the team member’s progress and achievements

Action-based
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learning enables
Action-based learning people to learn
Action-based learning is shared learning in the workplace about specific work issues. An integral part of from workplace
learning tasks
the process is team involvement in real work, discussion, reflection, review and sharing learning. As well as or projects and
building task competency, team learning improves communication, teamwork, problem solving and decision their interactions
making. Examples of action-based learning methods are shown in Table 8.5. with each other
as they identify
and implement
Table 8.5 >  Action-based learning solutions to any
problems, issues or
Type Purpose opportunities.
After action reviews To enable the team to reflect on what worked and what needs improvement
After action
On-the-job projects To enable all team members to participate, gain and share new knowledge review is a
Problem solving To help team members work together to develop processes to solve problems systematic process
to extract the
Quality circles To encourage team members to improve processes as well as individual performance continuously learning from an
event or activity. The
process addresses
the questions
After action review ‘what should have
The after action review is a powerful learning tool because it lets those involved learn about what is happening happened?’, ‘what
now in order to improve performance and increase their pool of knowledge. The after action review has actually happened?’
and ‘what lessons
sequential steps as outlined in Table 8.6. It is important to plan well for the review and gain the participation are there for the
of all stakeholders. future?’.

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 212 PART 3 Understanding teams

Table 8.6 >  Seven-step process in an after action review

Step Description
1 Identify the intended outcome
2 Identify what actually happened
3 Compare what happened with what was intended to happen
4 Identify the variations
5 Decide why there were differences
6 Document what was learnt from the review
7 Decide who should be told and distribute the after action review to them

Self-directed learning
A motivated, self-directed team member with skills in self-reflection views the workplace as a continual
learning experience. They select and carry out their own learning objectives and methods of learning, and
Self-directed evaluate how well they met their objectives. Self-directed learning can be formalised by approaching the

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learning means manager, supervisor or team leader to:
the learner initiates
the learning, ■■ discuss the purpose, objectives, appropriateness of the learning methods and intended outcomes

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makes the decisions ■■ gain the manager’s support, approval and sign-off

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about what learning ■■ prepare a learning plan together at a performance appraisal or at any time throughout the year.
and development
experiences will
occur, and how. A manager’s, supervisor’s or team leader’s awareness of self-directed learning allows them to accommodate
the demands of productivity while enabling self-directed learners to pursue their learning, and to apply and
share it with others in real-time workplace tasks. A participative approach and an atmosphere of openness and
trust promote both learning and performance.
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Opportunities for self-directed learners to reflect on their learning in after action reviews and learning
exchanges with other team members broaden the opportunities for learning and sharing experiences. Effective
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self-directed learning enhances individual and team accomplishments, continuous learning and ongoing
improvements.
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Ask yourself
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Professor Eve Mitleton-Kelly (2009) suggests:

During the learning process, individuals will influence each other and their ideas will ‘co-evolve’; that is each idea will
adapt and change in the context of other ideas, and once changed, it will, in turn, have an influence on what happens
next … Learning organisations encourage ‘self organisation’, so that groups can come together to explore new ideas
without being directed to do so by a manager outside that group.

ASK YOURSELF:  How do you learn at work? Who influences your ideas and learning? How might you learn more at work?
After completing this chapter reconsider your answer.

A learning plan is
an agreement that 8.3 Purpose of learning plans
identifies what will be
learnt, how and when A learning plan facilitates workplace learning, structures the learning and guides all stakeholders through
it will happen, who the process. Learning plans provide a useful mechanism for the learner and the mentor, coach, trainer, team
will be involved and
how performance will leader and other stakeholders to clarify how the planned learning will happen, support the learning, and
be assessed. monitor and evaluate its outcomes.

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 213

Learning plans are an integral part of individual or team performance plans. A learning plan can be
prepared, for example, to fill a gap in performance identified in an after action review, a performance appraisal
or by any other means. Learning plans may accompany each employee’s goals or objectives for the upcoming
year. They structure and promote learning by identifying:
■■ what people need to do as they learn
■■ why they need to learn (the reason for learning)
■■ how to initiate the learning
■■ what time, resources and opportunities are available to allow them to learn
■■ how they will be facilitated, supported, mentored or coached as they learn
■■ how they will know when learning has been achieved
■■ how successful the learning was in meeting the goals of the learning plan.

Structure the learning plan

An effective learning plan helps to remove confusion caused by the increasing range and availability of
knowledge and information and focuses the learner, mentor, coach and manager on the purpose of the
learning or development activity. A learning plan should document clearly opportunities for the learner and

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mentor, coach or other team members to discuss, give and receive feedback on, and reflect on and apply the
new learning.

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Managers, supervisors and team leaders need to:

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■■ develop an overall strategy or plan to meet the learning requirements of the work team and the
organisation
■■ facilitate individual learning plans to satisfy both the team’s work goals and the professional
development needs of individuals.
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An individual or team learning plan communicates and structures the learning activities. The sequence in
Figure 8.2 is a useful guide to follow in the development of a learning plan.
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Monitor learning against Set realistic objectives

the learning plan and targets in the learning plan

List all the activities that

Implement the
need to happen to achieve
learning plan
the objectives

Communicate the learning Order the activities

plan to stakeholders sequentially

Figure 8.2 >  Follow a sequence to develop a learning plan

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 214 PART 3 Understanding teams

Negotiate learning plans

Negotiate learning plans to improve the commitment to and effectiveness of learning by:
■■ identifying and confirming the learning or professional development need with the individual,
team or other relevant stakeholder in the learning
■■ setting and clarifying realistic objectives and targets
■■ negotiating an appropriate type and mix of learning strategies
■■ confirming convenience of time and place, and availability of learner, coaches, mentors or other
relevant stakeholders
■■ establishing feedback processes and how progress will be monitored
■■ identifying standards against which performance is measured, and identifying how and when
evaluation will happen
■■ documenting the learning plan and obtaining sign-off from the mentor, coach, subject-matter
expert and the person undertaking the learning.

As the plan is created identify the needs of the learners, the team and the organisation.

Sample team learning plan

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A sample learning and assessment plan for a team of newly appointed supervisors is shown in Table 8.7.

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A learning plan can be either a short-term or long-term plan.

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Table 8.7 >  Learning and assessment plan—new supervisors

BSBLED401A ‘Develop teams and individuals’

This is a generic learning and assessment plan that you should refine to suit your organisation’s requirements.
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Objectives Learning activity weeks 1 and 2 Assessment activities
Supervisors to determine development needs Presentation and discussion by senior Question and answer
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of team against: manager Case study (end of week 1)
•  team objectives and results Group activity—performance appraisals, Supervisor to discuss their skills assessment
•  organisational objectives workplace skills assessment and with a more senior staff member and decide
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By conducting: learning plans how to fill any skills gaps (end of week 2)

•  skills audit Conduct an individual skills assessment on
•  bi-annual performance appraisal their own competence in developing and
leading teams
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(end of week 1)
Supervisors to develop individuals and teams Presentation and discussion about on-the-job Participation as a group of six in an action-
by supporting opportunities for: coaching, mentoring, work shadowing, action- based work project in which they create
•  on-the-job training based learning and self-directed learning together learning plans to match their skill
•  off-the-job training Group analysis of case studies to compare needs in developing teams and individuals
•  workplace learning the advantages and disadvantages of on-the- (weeks 3 and 4)
•  coaching and mentoring job and off-the-job training Question and answer (week 3)
Group work to identify mentoring skills Prepare a best practice checklist for coaches
Work shadowing a manager experienced in (week 4)
coaching Prepare a best practice checklist for mentors
(end of week 4) (week 5)
Supervisors to monitor and evaluate Each supervisor to be individually coached, on Questioning and demonstration in a coaching
workplace learning: the job, in giving and receiving feedback from session
•  through feedback from team members team members that encourages participation After action review, questions, answers and
•  against standards of performance and commitment improvement plans
identified in national, industry and Group reflection on learning from participation Demonstration of coaching skills on the job
organisational standard operating in the coaching session—thinking, (end of week 6)
procedures questioning, reflecting and planning for
•  from observing and acknowledging improvements in next coaching session
improvements Work-based application by coaching a team
•  from training records and reports member in a work task
(end of week 6)

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 215

Consultation within your organisation

The learning and assessment plan was prepared in consultation with the major stakeholders including training manager, supervisors, team
leaders and experienced staff who are willing to act as coaches. Three meetings were held to discuss the appropriate learning and development
mix. The stakeholders requested that the:
•  off-the-job training be held in meeting room 2 as the facilities were appropriate to group learning
•  on-the-job coaches provide support in the workplace
•  learning, development and assessment take place within a six-week period
•  action learning and demonstration of knowledge and skills in discussion, work-based project and application in coaching sessions
Learning and development mix
Two days off the job
Four on-the-job coaching sessions by two hours
Work-based project and application over six weeks
Signatures
Supervisor Date
Participant Date
Trainer/facilitator/coach Date
Assessor Date

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8.4 Support workplace learning
Workplace learning must be appropriate to the workplace roles, tasks and targets, and appropriate to the
needs of the team and individual team members. As participation in these learning opportunities takes time
and resources, benefits should flow to the organisation as well as the individual.
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Key principles that facilitate implementation of learning and development across an organisation include:
■■ an organisation-wide training and development plan based on the results of skills analysis
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■■ a series of coherent learning pathways to support organisation-wide initiatives
■■ training and development aligned to operational priorities and the development needs of teams
and individuals
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■■ adequate budget and resources

■■ ongoing monitoring and evaluation of outcomes
■■ equality of opportunity to undertake training, learning and development.
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Managers, supervisors and team leaders facilitate and promote a positive learning culture in the workplace by:
■■ providing direction, knowledge and constructive feedback such as talks, reports and informal
contact
■■ supporting their team, peers and other stakeholders in ongoing learning and personal mastery of
processes, tasks and change
■■ giving and receiving constructive, objective feedback about performance and taking action to
achieve improvement
■■ creating a shared plan of action to improve unsatisfactory performance and mistakes
■■ orienting the team’s vision towards the long term as well as immediate short-term success.

Two critical aspects of workplace learning are self-evaluation and feedback. Self-evaluation should enable the
individual to take responsibility for their own learning and professional development. It will also encourage
the individual to continually improve performance and competency.
Any self-evaluation should be measured against appropriate and known standards and benchmarks.
Some examples are:
■■ national competency standards (refer to http://training.gov.au)
■■ standard operating procedures
■■ safe work method statements
■■ legislative requirements
■■ benchmarked process activities.

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 216 PART 3 Understanding teams

People closest to the work are those who should know most about the processes. When a gap exists, learning
must take place to improve performance in the job tasks. While managers, supervisors and team leaders may
be closest to where the training and learning is needed they must consult and gain commitment from relevant
stakeholders for the workplace learning and development. Table 8.8 identifies strategies used as the learning
opportunities are planned.
Table 8.8 >  Organise workplace learning

Strategy Description
Gain approval for resources •  Identify and gain approval for learning activities in accordance with your organisation’s requirements
and time lines •  Allocate resources in accordance with assigned responsibilities and accountabilities
•  Gain sign-off for cost budgets
•  Negotiate time lines to take into account the needs and responsibilities of the job (e.g. a shift worker
accessing training)
•  Inform managers because they may have to adjust shifts and times
Gain stakeholder approval •  Involve stakeholders from the planning stage because aims, agendas and preferred outcomes may be
and ownership of the type of distinctly different
learning •  Consider the needs of three groups—those representing the company, those representing the workers,

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those with responsibility and accountability for any associated costs and outcomes
•  Gain sign-off and approval to enhance implementation and avoid resistance to learning methods

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Organise activities as learning •  Facilitate learning in the workplace by organising work activities in ways that provide opportunities to learn

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opportunities •  Plan, resource, implement and review tasks to be effective workplace learning opportunities
•  Identify specific learning objectives to achieve results from these opportunities
•  Keep the workplace learning learner-centred
•  Make the learning performance-based and ensure it demonstrates results
Interact with individual •  Interact positively with learners as they participate in workplace learning opportunities
learners •  Demonstrate supportive and encouraging behaviour, which creates a positive learning environment
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•  Provide support and reinforcement to build confidence
•  Recognise skills and knowledge acquisition
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•  Celebrate greater productivity and reduced errors and accidents
Support learning by doing •  Encourage questioning and practise
•  Let team members explore one another’s point of view
•  Give and receive feedback
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•  Encourage problem solving and decision making

•  Focus on specific issues
•  Encourage teamwork and sharing of information, ideas and knowledge
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Address equity issues

Equity issues Equity issues refers to fairness or impartiality in access to opportunities in the workplace. In New South
involve fairness Wales, an organisation has a requirement under the Anti-Discrimination Act 1977 to provide fair and equitable
or impartiality
in access to access to training and promotion for all staff. (Refer to www.austlii.edu.au/au/legis/nsw/consol_act for more
opportunities in the information regarding the legislative requirements for employers.) This legislation requires employers to make
workplace. allowances for staff with special needs to ensure they are not disadvantaged in any way. The location, timing,
entry requirements or content of a workplace training initiative may need to be adjusted to meet particular
needs if the criteria discriminate on the basis of race, sex, religion, political opinion, national extraction, social
origin, marital status, age or disability.
Some of the main issues regarding access to, and equity of, workplace learning initiatives are:
■■ Who is eligible to attend?
■■ Are there any prerequisites?
■■ Do the times/dates of learning sessions prohibit some participants from attending?
■■ Does the location of learning sessions prohibit some participants from attending?
■■ Are there facilities for employees with special needs?
■■ Does the home life of some staff prohibit them from undertaking learning sessions in their
own time?
■■ Is there a financial cost to employees?
■■ Will there be a social cost to employees who attend?
■■ Do any employees have language/literacy/numeracy issues?

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 217

If some employees are excluded from learning, the manager, supervisor or team leader should clarify the
reasons and criteria for inclusion or exclusion. Access considerations will depend on the type of workplace,
the profile of the workforce and the type of learning.

Ask yourself
Implementing workplace learning develops employee capabilities and ability to handle new challenges, adapt to change
and act in more senior positions. Benefits include higher job satisfaction and productivity, employee engagement and
increased retention of staff.

ASK YOURSELF:  What kinds of learning do you enjoy? What might an organisation do to attract and retain you as an
employee? What can you contribute to a learning organisation?

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Recognise workplace achievement
Team members who receive information and appropriate recognition are likely to perform and contribute
positively to achieve better outcomes. Managers, supervisors and team leaders need to take a positive
leadership role and acknowledge workplace achievement either formally or informally. Formal recognition of
achievement may be an award, a commendation or a promotion. Informal recognition could be as simple as a
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positive comment about a job well done or a reward such as a celebratory lunch.
Best practice in the development of teams and individuals incorporates the following guidelines:
■■ Orient the team to the long-term vision as well as the short term.
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■■ Provide clear information to guide work processes and tasks.
■■ Set realistic targets that are both challenging and achievable.
■■ Use participative leadership styles and encourage shared responsibility.
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■■ Retain coordination, control and accountability.

■■ Delegate responsibility appropriately.
■■ Give constructive feedback, encourage openness and share decision making.
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■■ Solve problems rather than entering cycles of blame and self-defence.

■■ Recognise achievement, and foster enthusiasm and genuine commitment.
■■ Support performance, ongoing learning and continuous improvement.

Motivation is enhanced when people know what to do, how to do it and have the opportunity to perform well.
Refer to Table 8.9. Psychological rewards like knowing your work is worthwhile, achieving goals, receiving
recognition, developing talent and potential career opportunities are the motivators from Herzberg’s theory.
(Refer to Chapter 6 for more information.)

Table 8.9 >  Performance expectation and opportunity

Know what to do Know how to do it Have the opportunity to do it

Understand job purpose Have experience and qualifications Leadership and sound management
Understand key result areas Understand job purpose and responsibilities Clear objectives, high expectations and
standards of performance
Understand operating procedures Understand significance of job Clear work systems and procedures
Have SMARTTA measures of success Gain knowledge from learning culture and Adequate equipment, tools and technology
environment
Apply teamwork and perform maintenance roles Access to training, mentoring and coaching Appropriate resources, time and information
Know how the hot stove principle applies Participate in action-based learning, after Clear communication, teamwork, and
action reviews and self-directed learning recognition and support

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 218 PART 3 Understanding teams

Good practice focuses the ongoing learning and development on the needs of the team and individual
members. People know what to do, how to do it and have the opportunity to do it. The learning and development:
■■ has relevance to workplace practices, routines and challenges
■■ enhances competence and acquisition of up-to-date skills
■■ promotes performance to the required standard
■■ supports quality service provision to satisfy the expectations of internal and external customers
■■ has the support of the organisation, acknowledges and celebrates achievement.

Apply your knowledge

1 Work individually.

Scenario: After action review reflective learning

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At the handover of a project’s major deliverables, Mario the manager called together those involved and said, ‘I’m glad that one is over. You
all did very well, but I think we should learn from it. Can you stay for half an hour or so to do an after action review to see if we can do it

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better next time?’ As it was the end of the day he had arranged a few drinks, cheese and biscuits.

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Mario had prepared the following flip chart headings for his after action review:
• What was supposed to happen?
• What actually happened?
• Why were there differences?
• What can you learn from this?
a) Comment on the effectiveness of Mario’s approach.
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b) Prepare a list of the advantages for teams of reflective learning.
c) Decide how you would build team learning and trust into the after action review process.
2 a) Consider the following quote: ‘The ability to learn faster than your competitors may be the only sustainable competitive
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advantage.’ Brainstorm the benefits of learning to the organisation.
b) Explain how the ability to determine the development needs of their team benefits a manager, supervisor or
team leader.
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c) Brainstorm strategies managers can use to develop teams and individuals.

3 a) Think of one mandatory training program, one core and one developmental training program in your organisation.
b) Who delivers this training and how is it delivered?
c) Identify other workplace learning and development opportunities and describe who delivers it and how.
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d) How is the learning translated into the workplace procedures and tasks?
4 Work individually or in small groups.

Scenario: Brett’s learning plan

During a department store’s monthly WHS committee meetings it was obvious to Jan, chair of the WHS committee, that one of the team
leaders, Brett, had no skills in report writing. Jan decided to chat with Brett and encourage him to prepare an effective report on one
of the current WHS issues. Jan knew that Brett had some good ideas about the topic. Jan suggested to the meeting that she and Brett
work together on the report for the next meeting. After the meeting Jan worked with Brett to prepare a learning plan titled ‘WHS report
writing’.
a) Prepare a learning plan for Brett. In the learning plan identify the learning strategies, the activities Brett will undertake,
the activities Jan will undertake, and any resources available to Brett and the dates by which each activity will be
completed.
b) How does negotiating the plan together advantage Jan and Brett?
5 a) Workplace learning requires managers, coaches and mentors to provide direction, knowledge and constructive feedback.
Choose an example where you have been involved in workplace learning as the learner and describe the:
• direction
• knowledge
• constructive feedback you received in the learning situation.
b) Describe what you would do differently if you were providing the workplace training to a member of your team.

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 219

8.5 Monitor and evaluate learning

Whether learning takes place formally in a training program or continuing professional development program,
or informally through learning opportunities such as on-the-job projects, after action reviews or quality
circles, managers, supervisors and team leaders need to evaluate its effectiveness and on occasions suggest
improvements.

Competency standards
National competency standards provide a nationally recognised benchmark against which workplace
performance can be measured. Other documented workplace performance standards include:
■■ standard operating procedures
■■ safety legislative requirements
■■ customer service standards
■■ industry benchmarks.

A competent person is able to perform their work to the standard required in their workplace. A competency
standard identifies what is to be done, to what standard and under what conditions. The elements of

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competence for the national unit of competence, BSBLED401A ‘Develop teams and individuals’ (Innovation

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and Business Skills Australia 2012) are:

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1. Determine development needs
2. Develop teams and individuals
3. Monitor and evaluate workplace learning.

Competency in developing teams and individuals includes the skills to complete each of the tasks required
to perform the element of competence to the standard identified in the performance criteria. A competent
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person also has the ability to respond to unexpected events and other factors in the environment.
The performance criteria in the BSBLED401A national unit of competency (Innovation and Business
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Skills Australia 2012) identifies the standard of performance required of a manager, coach or subject-matter
expert with responsibility to develop teams and individuals in the workplace. Performance criteria are the Performance
standards against which performance is measured. It is critical to ensure performance is measured against an criteria are the
standards used to
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objective and transparent performance criteria or standard. evaluate a person or

Table 8.10 is an example of one element from the national unit of competence HLTFA301C – Apply first team’s performance.
aid. The three performance criteria (standards of performance) in column two must be demonstrated before
a student is classified as competent to assess the situation before applying first aid. Refer to the website http://
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training.gov.au/Training/Details/HLTFA301C for the other three elements and performance criteria.

Table 8.10 >  Example of element and performance criteria

Element Performance criteria

1. Assess the situation 1.1 Identify, assess and minimise hazards in the situation that may pose a risk of injury or illness to
self and others
1.2 Minimise immediate risk to self and casualty’s health and safety by controlling any hazard in
accordance with occupational health and safety requirements
1.3 Assess casualty and identify injuries, illnesses and conditions

Ask yourself
Performance-based competency standards describe what people can be expected to do in their working roles, as well as the
knowledge and understanding of their occupation that is needed to underpin these roles at a specific level of competence.
Performance criteria are detailed and specific statements about what people are expected to do, to achieve.

ASK YOURSELF:  Consider one of your routine work tasks. Write a statement to describe the task. How do you know you
have achieved the required standard of performance? Write three or four specific statements about what you are expected to
achieve and to what standard. How do written competency standards help you?

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 220 PART 3 Understanding teams

Assess competence
Principles of The assessment process uses the principles of assessment—validity, reliability, fairness and flexibility—
assessment are although each assessor assesses in a manner that best suits the circumstances, individuals and needs of the
validity, reliability,
fairness and
organisation. Competency assessment involves assessing the ability of the person being assessed to:
flexibility. ■■ do the job
■■ transfer learning
■■ cope with problems
■■ communicate effectively.

All assessments of competence should comply with the four technical principles of assessment shown in
Table 8.11. Correct application of these principles ensures people have the same opportunity to demonstrate
competence.

Table 8.11 >  Technical principles of assessment

Principle Purpose
Validity A valid assessment will assess against objective standards those competencies that are part of

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the performance required in the workplace
Reliability The same result will occur no matter who does the assessment

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Fairness No person should be disadvantaged and assessors should use the same approach with each
learner
Flexibility The assessment must be valid, reliable, and fair and flexible in order to:
•  deal with formal or informal learning opportunities
•  accommodate any disability, for example, deafness
•  ensure familiarity with necessary equipment or work methods
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•  allow varying time periods for assessment to give learners the opportunity to demonstrate
their skills
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In the case of national management competencies two things are fixed:
1. the competencies themselves (which are related to industry competencies)
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2. the requirement that the same process and evidence of competence must apply regardless of who
conducts the assessment or where it takes place.
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Competence may be assessed in the workplace through:

■■ observation of the performance of a task or of the product from a task
■■ spoken or written answers to questions
■■ information from competency log books
■■ information from colleagues, managers or others
■■ previous qualifications such as certificates or licences.

Achieve improvement
Evaluation and review are essential parts of continual improvement. The learning process within any
organisation needs to be viewed from the perspective of quality outcomes. This justifies the investment in
learning and promotes the ideal of a learning organisation.
A review that is participatory encourages team members, both individually and collectively, to provide
feedback on their learning experience. Evaluating and analysing what worked and what did not and for what
reasons is the basis for planned improvements.

Procedure
A problem-solving approach or an after action review are two processes that can effectively review and
improve learning. These approaches will work better when they follow the seven-step problem solving process
in Table 8.12.

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 221

Table 8.12 >  Seven-step problem-solving process

Step Process
1 Write a clear definition of the problem
2 Think about the result you want
3 Identify the cause(s) of the problem
4 List any solutions to the problem
5 Select the solution that will give you the result you want
6 Put the solution into practice
7 Check that the solution works

Record results of learning

Records provide an organisation with:
■■ evidence to show how it meets its legal responsibilities and accountabilities in areas of mandatory

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training such as responsible service of alcohol (RSA)
■■ information about the number and type of skills and any skills gaps in the organisation

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■■ a historical record of the learning, development and assessments undertaken within the

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organisation
■■ information for personnel records and evidence for remuneration and reward.

Records of performance and learning are essential to allow any organisation to meet the requirements shown
in Table 8.13.
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Table 8.13 >  Performance records
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Type of requirement Reason
Legislative requirement To document and record that all staff have received mandatory training before
being allowed to advise customers (e.g. banking and insurance industry)
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Human resource (HR) requirement To document all personnel details, superannuation, bank account details or next
of kin
Performance review system requirement To record individual targets and achievements, skills and work-performance
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rating
Pay system requirement To record individual and team targets for bonus payments
Training system requirement To document and record all training activities undertaken by individuals

The record-keeping system in an organisation needs to integrate data from each of the specific requirements
so that reports can be generated from the data. For example, a report is required at the end of the year that
details each individual’s:
■■ targets and bonus payments
■■ learning and development activities completed
■■ work-performance rating by their manager, supervisor or team leader.

Recording the results of learning is an important part of any manager, supervisor or team leader’s job. Records
of learning are useful, for example, in a performance appraisal. They:
■■ allow the manager conducting the appraisal and the person being appraised to understand the
range and number of skills
■■ give a benchmark against which improvements can be measured in the future.

The information and reports may be used to prepare for the individual’s performance review or to estimate
a pay increase, if appropriate. Most organisations will use a variety of record-keeping systems to handle this
information, but integration of systems is a crucial component of selecting an appropriate system.

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 222 PART 3 Understanding teams

Apply your knowledge

1 Read the scenario and answer the questions that follow.

Scenario: Positive interaction

Mathew is a workplace coach. Whenever he was involved in a coaching session he made sure that he felt confident about his material.
Mathew was relaxed, he smiled a lot, maintained eye contact and spoke in a friendly manner. As he provided information he would explain
what he intended to do and what the learner had to do. He would always break the activities into stages and explain the process step by
step and encourage questions.
Whenever the learner tried the task he added positive suggestions in a friendly manner and kept his coaching focused on what the learner
needed to know. Mathew would also take the time to meet with the learner several times in order to give the learner the time to learn,
reflect and practise the new knowledge and skills gained in the learning.
a) Identify the skills Mathew applies in his workplace coaching role.
b) How does he engage in a process of mutual inquiry and encourage the learner to be self-directing?

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c) What benefits are derived from coaching based on work-related experiences and problem-centred activities?
2 a) Identify six of your work team’s activities and for each activity determine the standards of performance.
b) Describe how these performance standards are or will be communicated.

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c) For one of the work activities you identified in (a), produce a learning plan. In your learning plan identify how you would evaluate

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and assess the performance of your team members against your identified performance standards.
d) How would you record the results?
e) Assume you will be assessing your team’s performance next week. Prepare a short presentation for your team on how learning
will be evaluated and recognised. Include the principles of assessment in your presentation. The purpose of the presentation is
to minimise the fears of your team members.
3 Prepare a short report for your manager on the actions you will take to promote learning in your work team. Include in your
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report:
a) the action plan you intend to follow in the next three months
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b) how your actions will facilitate improvements to team performance
c) a set of questions to be used as a checklist to help you evaluate and assess your work team’s learning
d) how you will monitor your action plan.
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Key terms
action-based learning 211 learning organisation 207
adult learning principles 208 learning plan 212
after action review 211 mandatory training 207
core training 207 performance criteria 219
developmental training 207 principles of assessment 220
equity issues 216 self-directed learning 212
explicit knowledge 208 tacit knowledge 208

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 223

Summary
LO 8.1  escribe the strategies that managers, supervisors and team leaders can use to determine team and
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individual development needs.
Managers, supervisors and team leaders encourage and support training and other learning and development
opportunities. They coach teams and individuals in new and improved processes and systems and mentor
individuals to develop new skills, acquire organisational knowledge and promote career development. They
provide opportunities for job rotation and acting positions and encourage team members to assess their own
competence against required standards. They use leadership and communication skills to channel skills
development to improve the individual’s performance and career opportunities, and extend the organisation’s
knowledge base and capability to meet current and future needs.

LO 8.2 Distinguish types of workplace learning and development.

Different types of workplace learning and development include mentoring, work shadowing, coaching, training,
experiential learning, job rotation and on-the-job project work.

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LO 8.3 Develop a learning plan and explain its value for the learner.

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Learning plans identify what will be learnt, how and when it will happen, who will be involved and how

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performance will be assessed. An effective learning plan provides a clear, agreed process.

LO 8.4 Outline strategies that sustain a workplace learning environment.

Strategies that sustain a workplace learning environment include, in the planning stage, gaining approval for
resources and time lines, stakeholder approval and ownership of the type of learning. Organise learning activities
as opportunities to both learn and practice through mutual inquiry, feedback and problem solving. Ensure
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impartiality in access to training, learning and development opportunities. Verify the learning and development
has relevance to workplace practices, routines and challenges, and promotes improvement in individual and
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team performance across the organisation.

LO 8.5 Explain the value of monitoring and evaluating training and other learning and development activities.
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Competence may be evaluated and assessed in the workplace through observation of the performance of a task
or the product from a task, spoken or written answers to questions, information from competency log books, and
information from colleagues, managers or others. Participatory evaluation and review enables learners to give and
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receive feedback, recognition and encouragement. Any planned improvements should be implemented. Results
should be documented as they provide the evidence needed to meet the requirements of relevant legislation, HR
departments, performance reviews, pay systems, training, and learning and development records.

Review questions
1  andatory and core training are determined by the organisation. How can managers, supervisors and team
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leaders determine their team’s need for developmental training and learning?

2 Identify at least six types of workplace training and development delivered by managers, supervisors or team
leaders.

3 Briefly explain the adult learning principles.

4 a)  Describe the sequence to follow as you develop a team learning plan.
b) What are the major components in a team learning plan?
c) Why should a learning plan be agreed and signed before the learning and development begins?

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 224 PART 3 Understanding teams

5 a)  How can managers, supervisors and team leaders facilitate and promote a positive learning environment?
b) How do they address equity issues? Give examples.
c) What type of workplace recognition for your achievements do you appreciate?
d) How do you recognise the achievements of your work team?

6 a) 
Why should relevant stakeholders be involved from the planning stage of workplace training or
development?
b) Choose an area of learning for your team. Identify the stakeholders you would involve and explain why.

7 High performance standards and expectations and the opportunity to perform to, or above, expectations are
motivating. How can a manager, supervisor or team leader ensure their team:
a) knows what to do
b) knows how to do it
c) has the opportunity to do it?

8 a)  Define the terms ‘competence’ and ‘performance criteria’.

b) Identify three standards against which the performance of your team can be evaluated.
c) Briefly explain the principles of assessment and their purpose.

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9 a)  What is the purpose of evaluation and review of learning and development?

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b) Briefly describe a procedure to follow in the review process.

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10 a)  Discuss the reasons for recording the results of learning and development.
b) Give examples of how results of learning and development are used within an organisation.
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Working together
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Work in small groups.
a) Discuss and provide examples of the types of learning and development offered in an organisation of your
choice.
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b) Choose one of the types of learning and prepare a set of guidelines for team leaders to use as they plan, deliver
and evaluate the learning.
c) A member of your team is highly skilled, experienced and personable. The person would make an ideal coach.
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Prepare a convincing case to motivate and empower the person to accept the role.
d) Present the case as a group oral presentation.

Exploring the web

1 Learn more about David Kolb’s experiential learning cycle by visiting ‘The Experiential Learning Cycle’ website at
www.learningandteaching.info/learning/experience.htm.
a) List the four stages in the learning cycle.
b) ‘The four quadrants of the cycle are associated with four different forms of knowledge, in Kolb’s view. Each of
these forms is paired with its diagonal opposite.’ Discuss the styles of thinking associated with each form of
knowledge.
2 Learn more about self-directed learning by visiting www-distance.syr.edu/sdltools.html.
a) What is the purpose of a learning contract?
b) Answer the questions at www-distance.syr.edu/sdlcompetence.html to evaluate your competence for carrying out
self-directed projects.
c) Rate your self-directed learning skills by completing the self-rating at www-distance.syr.edu/sdlskills.html.

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 225

Case study 1: Group learning and

­development
Erik knew that there were different techniques to use when conducting learning activities for groups rather than
individuals. Occasionally he had to assist on a course, but usually he conducted learning activities during meetings or in
other informal settings.
Erik was aware of the strengths and weaknesses of the project work group. Apart from Brook (inquisitive), Chris (experienced
but secretive) and Charley (after advancement) there were two other people in the group who had vast experience but said
little, unless requested. Then there was Jack who was good at summing up what had been discussed, and there were a couple
in the group who always had something to contribute although it was not always relevant to the topic.
It had been agreed that on Friday, after lunch, work on the project would cease while they conducted an after action
review. This would take two hours. It was important enough to make the time available because there had been a very
nasty environmental near miss: the holding pond had been badly contaminated on a job site when an open drum of highly
volatile and flammable chemicals had been tipped into it by mistake. In addition, the standpipe had broken on a cement
truck when it was being flushed out. It was stopped just before the holding pond overflowed into the offsite storm water

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drains.
Erik wanted to ensure that there was a constructive learning session about the contaminated pond. Before the learning

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session Erik said to Brook: ‘From time to time I’ll ask you if you have any questions. You just might note something that we

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missed.’ He invited Chris to find out all he could and to present a report to the meeting.

Questions
1 Review Erik’s approach to the after action review. What advantages are gained by involving the whole group?
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2 List what other things he might do before and during the meeting to encourage productive involvement by as
many of the project work group as possible.
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3 Identify the potential positive and negative impacts group dynamics will have on the group learning process.
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Case study 2: Lucille’s problem

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Lucille sat at her desk in deep panic. She had to conduct a training session in a week and there was nothing in the whole
world she dreaded more than public speaking. Just thinking about it made her break out in a cold sweat. Standing up in
front of her work colleagues—some of whom were quite close friends—petrified her.
Her recent experience did nothing to help how she was feeling, if anything it made matters worse. Just yesterday she had
completed a workshop that went over four straight days. It was horrible—a huge waste of time and money.
The workshop was about the introduction of new financial procedures and systems. The senior financial officer, Melinda,
conducted the daily sessions.
The first problem was that nobody knew each other and nothing was done to break down the barriers. Further, after a
time, Lucille realised that of the 25 participants, about half of them need not have been there at all. Except for a few minor
matters, this group was well aware of the new procedures and systems. Some of them had even played a part in designing
them and knew more about them than Melinda. The others were much less experienced staff members. These poor souls
had spent four days totally confused; most of the time they just sat there in a daze.
There was no clear aim or purpose set out, neither at the start of the workshop, nor for any of the four day-long sessions. It
was all theory, with Melinda standing up there ‘preaching’ at them. She used PowerPoint and had nice pretty pictures, but
that was about all—it looked good, but it was all for and show with terribly confused content! There was no variation from
this format and the boredom at times was just awful.

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 226 PART 3 Understanding teams

Given Melinda’s approach and manner, very few questions were asked. When someone dared to speak and asked one, it got
one of two responses: either the person was ignored or received a curt ‘yes’ or ‘no’ along with a sneer, which seemed to say
‘Are you dumb, or what?’.
Each session started off on a new topic and there was no opportunity to go over what had been done the day before. So
what precious little you did learn was quickly lost. Melinda covered large pieces of information and it was unrelenting—one
big complex procedure after the next, delivered rapid fire.
Another thing that Lucille experienced troubled her. When the workshop started she seemed to be a bit slow to catch on
to the few ideas that she was able sift out of all the confusion. For a while her understanding seemed to speed up a bit, but
then she hit a ‘flat spot’ where she seemed to be taking just ‘small steps’ in terms of her grasp of things. She could not work
out why her learning, what little of it there was, seemed to bounce up and down and was so uneven.
Just to add to the catastrophe, handouts and notes were never available on time and building work was going on in the next
room for three of the four days of the workshop—what great planning!
At the end of the torturous four days, no one was asked what they thought of it all and there was no arrangement to make
sure that what you did manage to glean from the ‘workshop classroom’ was actually applied back in the office—things were
just left hanging.
Luckily Lucille has a good friend, Kate, who works part time and is studying to be a teacher. Kate has mentioned that she

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has studied learning theory in her course and she has done some practice presentations. Lucille sent Kate an email telling
her of her disastrous experiences and asking if Kate could help her prepare for the session she has to deliver. Kate replied

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almost immediately and they set up a day and time for a meeting.
Kate also indicated that, in anticipation of their get-together, she would prepare a checklist of ‘dos and dont’s’ when
conducting a learning/training session. Kate suggested that they could discuss the list when they met and Lucille could use
it as a guide to avoid problems in her own, upcoming session.
Lucille was much relieved and thanked her lucky stars she had a friend like Kate.
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Source: John Hunter, Program Coordinator, Management Studies, TAFESA Adelaide City TAFE.
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Questions
1 Assume you are Kate and prepare a checklist of ‘dos and don’ts’ Lucille can use when conducting a training
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session.

2 Assume Lucille has decided to deliver the learning and development in coaching sessions rather than small group
training sessions. Prepare a checklist of the phases in the coaching process Lucille could use to guide her through
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the process.

3 Compare the advantages and disadvantages of small group training sessions and coaching sessions.

In your answers draw on the concepts presented in this chapter.

Bibliography
Blanchard, P. Nick & Thacker, James W. Effective Training—Systems, Strategies and Practices, 3rd edn, Prentice Hall,
New Jersey, 2007.
Fuller, Alison, Munro, Anne & Rainbird, Helen (eds). Workplace Learning in Context, Routledge, London, 2004.
Garvey, Bob, Stokes, Paul & Megginson, David. Coaching and Mentoring: Theory and Practice, Sage Publications,
London, 2009.
Illeris, Knud. The Fundamentals of Workplace Learning: Understanding How People Learn in Working Life, Routledge,
USA, 2010.
Industry Task Force on Leadership and Management Skills (Chair David Karpin). Enterprising Nation: Renewing Australia’s
Managers to Meet the Challenges of the Asia-Pacific Century, AGPS, Commonwealth of Australia, 1995.
Innovation and Business Skills Australia. HLTFA301C – Apply first aid, http://training.gov.au/Training/Details/HLTFA301C,
accessed 12 January 2013.

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 CHAPTER 8 Develop teams and individuals in a workplace learning environment 227

Innovation and Business Skills Australia. BSBLED401A – Develop teams and individuals, http://training.gov.au/Training/
Details/BSBLED401A, accessed 20 August 2012.
Knowles, Malcolm S., Holton III, Edward F. & Swanson, Richard A. The Adult Learner: The Definitive Classic in Adult
Education and Human Resource Development, 6th edn, Elsevier Butterworth-Heinemann, USA, 2005.
Kolb, D. A. Experiential Learning Experience as a Source of Learning and Development, Prentice Hall, New Jersey, 1984.
Malloch, Margaret, Cairns, Len, Evans, Karen & O’Connor, Bridget N. The SAGE Handbook of Workplace Learning, SAGE
Publications Ltd, London, 2011.
McNamara, Carter. Strong Value of Self-Directed Learning in the Workplace: How Supervisors and Learners Gain Leaps in
Learning, www-distance.syr.edu/sdltools.html, accessed 1 September 2011.
New South Wales Government Department of Premier and Cabinet. Equal Employment Opportunity in the NSW Public
Sector, NSW Government, www.eeo.nsw.gov.au/home, accessed 1 September 2012.
New South Wales Consolidated Acts. Anti-Discrimination Act 1977, www.austlii.edu.au/au/legis/nsw/consol_act/
aa1977204/notes.html, accessed 1 September 2012.
The Times 100. Business expansion through training and development, http://businesscasestudies.co.uk/aldi/business-
expansion-through-training-and-development/development.html#ixzz242l9HjDF, accessed 12 January 2013.

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Tovey, Michael D. & Lawlor, Diane R. Training in Australia, 4th edn, Pearson Education Australia, Sydney, 2011.

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 chapter

13 on
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manage projects

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 355

Contents
13.1 The project management process 356

13.2 Developing a project plan 361

13.3 Administer and monitor the project 372

13.4 Finalise and review the project 375

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Learning objectives
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LO 13.1  Discuss the value of careful project scope and stakeholder definition.
LO 13.2  Develop project plans to determine what a project will entail, when it will
be scheduled, who will be involved, what quality level will be maintained
and what the budget will be.
LO 13.3  Outline the steps to administering and monitoring a project effectively.
LO 13.4  Explain the importance of finalising deliverables and reviewing project
processes, outcomes and lessons learnt from the project.

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 356 PART 4 Leading and managing operations

Good practice: Stakeholder management

Stakeholder analysis is the technique used to identify the key people who have to be won over. The benefits of using a stakeholder-
based approach are that:
• you can use the opinions of the most powerful stakeholders to shape your projects at an early stage; not only does this make
it more likely that they will support you, their input can also improve the quality of your project
• gaining support from powerful stakeholders can help you to win more resources—this makes it more likely that your projects
will be successful
• by communicating with stakeholders early and frequently, you can ensure that they fully understand what you are doing and
understand the benefits of your project—this means they can support you actively when necessary
• you can anticipate what people’s reaction to your project may be and build into your plan the actions that will win people’s
support
• by engaging the right people in the right way in your project, you can make a big difference to its success—and to your career.
Source: Extract from Thompson, Rachel. Stakeholder Analysis: Winning Support for Your Projects, www.mindtools.com/pages/article/

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newPPM_07.htm, Mind Tools Ltd, accessed 23 January 2013.

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Project managers undertake a range of activities including defining stakeholder expectations, scoping project
deliverables, developing work breakdown structures and network schedules, minimising project risk, developing
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the project plan and schedule, and ensuring project quality by aligning objectives, processes and improvements.
They monitor and control time, cost, quality and project scope over the life of a project.
Project managers lead and work with project teams to sustain commitment, motivation and urgency. They
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report project performance, communicate intent, monitor performance, take corrective action as required,
finalise the project handover, and review project processes and outcomes against the project scope and plan.
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13.1 The project management process

A project is a temporary, planned and organised activity with a defined beginning and ending. It usually exists
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within the framework of a larger organisation and may be dependent on the larger organisation for finance,
Project life cycle
describes the phases
resources or guidance.
in all projects: Confirmation of the level of support and involvement the organisation or sponsor will offer the project is
definition, planning, crucial. Ask the following questions: ‘Will the project be needing to use resources from the organisation and
executing and how will resources be approved? Does the outcome for the project fit with the organisation’s objectives? Does
closing.
the organisation have the funds and resources to complete the project? Does the organisation expect status
The scope
reports? If so, how often?
statement, Consultation with the sponsor and their delegating authority from the outset decreases the likelihood
sometimes referred of problems midway through the project life cycle illustrated in Figure 13.1. Information collected through
to as the statement consultation is documented in the project’s terms of reference.
of work (SOW), is a
definition of the end
result or mission of a Scope definition
project. Scope statements typically include project objectives, deliverables, milestones, specifications, limits and
exclusions. The specification for a project is a brief, clear and complete one- to two-page document. A clear
Scope creep is written definition of what is required and by when increases the likelihood of the project’s success.
the tendency of the
scope of a project The scope statement focuses the project manager, team and other stakeholders on the project purpose
to expand once it and provides evidence of what has been agreed. It identifies deliverables clearly and becomes part of the
has started because project plan. Scope definition provides focus, clarifies the end item(s) of the project, mitigates the risk of scope
the project has
creep and describes what will be delivered in specific, measurable terms.
been inadequately
documented, defined Typical steps in the project scoping phase are shown in Figure 13.2. Each of the six steps in the figure can
or controlled. be used as headings in the written scope statement.

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 CHAPTER 13 Manage projects 357

Defining—clarify scope,
establish objectives, form
teams, assign
responsibilities

Closing—deliver project,
redeploy project Planning—determine
resources and review what, when, whom,
performance and capture quality levels and budget
lessons learned

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Executing—administer

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and monitor project

Figure 13.1 >  Project life cycle

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Step 6.
Review Step 1.
understanding Define overall
and agreement project objective
with customer

Step 5. Step 2.
Define limits of Scope definition Define major
scope of work deliverables
and exclusions

Step 3.
Develop milestone
Step 4.
schedule (major
Detail technical
segments
requirements
of work and
control points)

Figure 13.2 >  Project scoping phase

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 358 PART 4 Leading and managing operations

Figure 13.3 is a typical statement of responsibilities of the project manager’s role.

The project manager is responsible for:

ensuring the scope of the project details
• planned target outcomes and performance measures
• customers who will utilise the outcomes
• resources required to complete the project
• timeframe and cost estimates
• uncertainty and risk to the project’s scope, budget and schedule.
monitoring the project to detect and correct any deviations that may affect
the final outcomes
• leading the project team to successful completion and delivery
• communicating information to stakeholders as per the communication plan
• finalising and reviewing project outcomes with project team and relevant
stakeholders.

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Figure 13.3 >  Statement of responsibilities

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Project documentation
Documents will include the contract agreement, project plan or summary, and documents outlining the
expected outcomes of the project, inclusions and exclusions from project, time frames for project, required
resources, risk(s), and target activities and result indicators.
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The documents in Table 13.1 are utilised in the project definition stage. This list is not exhaustive and will
vary according to the organisation.
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Table 13.1 >  Project information documents

Document Description
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Project brief Documents facts about the project, including the rationale, benefits, budget and time lines
Terms of reference A contractual agreement setting out information that includes a statement detailing the project expectations, the
managerial directions, the assistance required from other bodies, and the tools and methods that will be used
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throughout the project; it clarifies the project position, directions and specific methods, and determines the roles
and responsibilities of team members in a project organisational structure
Project scope statement Identifies the boundaries of the project, defines the objectives and specifications for the project, and identifies the
or scope of work (SOW) deliverables as well as any limits or exclusions (see Figure 13.2). Clear project scope statements link the project
and client to facilitate planning and control
Risk assessment Records risks to a project’s scope, budget and schedules, and contingency plans to deal with anticipated risk(s)
Feasibility study A detailed investigation and analysis conducted before a project is approved to determine the financial, economic,
technical or other advisability of a proposed project
Cost–benefit analysis Calculates and compares the costs and benefits of a project
Project proposal Recommends or rejects the project—it is usually quite detailed, with information on the stakeholders, the desired
outcome, deliverables, management issues and various strategies

Stakeholder analysis
Stakeholders are Defining the project in consultation with stakeholders ensures it meets their requirements and expectations.
individuals or groups Stakeholders might include:
who will be affected
by a project or who ■■ the project sponsor, alliance partners or funding bodies
can influence the ■■ senior executives, management and the project team
project. ■■ relevant key personnel (internal and external) with special responsibilities such as suppliers,
lenders and analysts

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 CHAPTER 13 Manage projects 359

■■ clients or customers (internal and external)

■■ interest groups, the press, the public and community groups, trade associations and government
authorities.

Effective stakeholder analysis follows three steps. Step 1 involves identifying those affected, those with influence Stakeholder
or power over the project and those who have an interest in its successful or unsuccessful conclusion. Step 2 analysis is
the process of
involves prioritising stakeholders in terms of those who have an interest in the project and either the power or systematically
influence to block or advance the project. Step 3 involves understanding key stakeholders’ requirements and gathering and
expectations. Management and engagement of stakeholders is critical to the success of any project. analysing qualitative
Ask the following key questions to understand stakeholder interests and expectations. information to
determine the
■■ What does this stakeholder need from the project? interests and
■■ What financial or emotional interest does the stakeholder have in the project outcome? expectations of
■■ What role or responsibility does the stakeholder have, if any? those who have
power and influence
■■ What pressures is the stakeholder experiencing?
over a project and
■■ What information will the stakeholder require, and in what form? those who will be
■■ What power and influence does the stakeholder have? affected by the
■■ What special requirements does each stakeholder have (such as reporting and consultation project.

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arrangements)?

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Developing a detailed profile of each stakeholder in a stakeholder analysis is a useful way to answer the

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questions.

Stakeholder profile
Classify stakeholders in terms of their power over the project and their interest in the work on the power/
interest grid shown in Figure 13.4. Analyse the power/interest grid to determine the importance of each
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stakeholder and understand key stakeholders’ perceptions and likely reactions to the project. Decide how best
to engage and communicate with them over the life of the project.
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High Keep satisfied Manage closely

(Stakeholder B) (Stakeholder A)
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(High power, less interested people: (High power, interested people:

require enough effort to keep them these are the people to fully
satisfied but not so much that they engage and require the greatest
become bored with the message.) efforts to satisfy.)
POWER
Minimum effort (Stakeholder C) Keep informed
(Low power, less interested people: (Stakeholder D)
require monitoring without too (Low power, interested people:
much communication.) should be adequately informed
to stay engaged as these
stakeholders are often very
Low helpful with project details.)
Low INTEREST High

Figure 13.4 >  Stakeholder prioritisation—power/interest grid

Stakeholder A in the ‘manage closely’ grid has high power and high interest, so communication should
be regular and informative. Stakeholder B has high power and low interest so they must be kept satisfied.
Stakeholder C has low power and low interest and requires minimum effort. Stakeholder D has high interest
and low power and should be kept informed.

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 360 PART 4 Leading and managing operations

The information on the power/interest grid can then be entered into a table, such as the sample in
Table 13.2, included in the project plan and used throughout the project to meet stakeholders’ needs.
Table 13.2 >  Stakeholder analysis

Stakeholders Description Primary need (stake) Information needs Other

Residents, Users of the Need effective waste disposal Quarterly updates via Council Have no direct role or
landlords, waste service services, as invisible as possible, newsletter responsibility other than placing
commercial with extra services such as recycling, their waste for disposal as per
green waste removal and pick up of instructions
large waste

The benefits of stakeholder analysis are using the opinions of the most powerful stakeholders to shape the
project, gain their support and win more resources. Regular communication with stakeholders ensures they
understand the project’s purpose, benefits and relationship to other organisational activities. Anticipating the
various stakeholders’ likely reactions to the project and identifying potential misunderstandings helps to win
and maintain stakeholder support over the project life cycle.

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Ask yourself

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As the work you do and the projects you run become more important, you will affect more and more people. Some may be
strong supporters of your work. Others may have the power to undermine your projects and your position.
Create your own example of stakeholder analysis at work—whether for a task in your current role or a new project.
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ASK YOURSELF:  What motivates your stakeholders? Are you communicating as effectively as you should be with your
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stakeholders? What actions can you take to get more from your supporters or win over your critics?
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Clarification of issues
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Before the project begins seek clarification from the project sponsor, manager or management representative,
funding body, customer or client on any issues related to the project and the project parameters. This minimises
the risk of misunderstandings or problems later on.
Issues may relate to project parameters such as:
■■ the scope of the project
■■ timelines, finances and any specific procurement requirements associated with the project
■■ integration of the project within the organisation
■■ physical, human and technical resources required
■■ risks associated with the project, including workplace health and safety
■■ reporting and any legislative or industry requirements.

Establish who has the authority or power to make final decisions, who has the responsibility or the obligation
to perform tasks, and who has accountability—the state of being answerable for the completion of tasks,
milestones and the project deliverables. In the project definition stage ensure clarity upfront to enable the
client to understand what will be done and to recognise the need for compensation for major variations or
changes in direction.
Issues arise when:
■■ stakeholders are slow with communication—waiting for responses to queries and approval can
impact on the flow of work and achievement of milestones
■■ the point of contact sees the project as a low priority and is slow to respond to queries
■■ a stakeholder is dissatisfied with the way the project is progressing.

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 CHAPTER 13 Manage projects 361

When a client is unsure of what they want, ensure the schedule has identified milestones, maps a path from start
to finish clearly, and shows how much leeway is available for any variations. As well as showing the sequence
and interdependencies between project activities, a clear project plan and schedule forces the client to be
specific with their requirements and keeps the project on track. Establish guidelines and explicit boundaries
at the beginning of a project to show stakeholders major deliverables, their milestones, and the date of project
finalisation and handover.

Apply your knowledge

1 Outline the major phases of a project’s life cycle.
2 Assume you are to fit out a floor of new building as office space for the organisation you work for or an organisation of your
choice.
a) Develop a project scope statement.
b) Identify the stakeholders in a stakeholder analysis table.

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c) Write a statement of responsibilities for the project manager position.
d) Develop a list of project parameters.

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13.2 Developing a project plan
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Project plans build on the information collected in the scoping (defining) stage of the project. They allow The project plan
the project manager and stakeholders to monitor progress and compare actual to predicted outcomes and is the tool used for
planning, scheduling
take corrective actions as necessary. A project organisational chart identifies roles, responsibilities and
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and monitoring
accountabilities, and describes reporting arrangements. project progress and
The project plan must include project goals and objectives, a work breakdown structure and network finalisation.
schedule to show the sequence and interdependence of activities, tasks and responsibilities, evaluation
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criteria and communication plan. The plan will show how risks will be managed, identify required resources,
budget, timelines, milestones and project deliverables.
The work
Every project represents a fine balance of tasks, time, quality, resources and cost. Consider any breakdown
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uncertainties and constraints that exist now or are likely to arise over the project life cycle, and then prepare structure (WBS)
the work breakdown structure (WBS). divides the work
of the project
into a framework
Work breakdown structure or hierarchy of
major deliverables,
A work breakdown structure (WBS) is a hierarchical breakdown of a project into successive levels. Each subdeliverables and
level contains more detail and shows how the elements of work to be accomplished relate to each other and work packages. As
the end product. WBSs usually require only three levels; however, very large projects may require up to six well as identifying
what needs to be
levels. The major groupings in a WBS are identified in Figure 13.5. done, when and
The project manager consults with team members and other specialist stakeholders to create the WBS. by whom, the
The WBS integrates all tasks into a system of work that links tasks, task decision points and milestones. Each WBS provides the
task is assigned a duration, resources and costs. The WBS must be approved by the project manager and the project manager
and team members
client. with information
The purpose of the WBS is to enable the project manager and team to undertake the activities in an to convey to
organised way. The WBS determines: stakeholders
appropriate to
■■ what tasks need to be completed to reach the major outcome
the stakeholder’s
■■ a unique ID number for each task level of power
■■ the expected duration for the task and interest in the
■■ which tasks depend on other tasks project.
■■ the resources for each task
■■ the direct and indirect costs for each task.

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 362 PART 4 Leading and managing operations

Level Hierarchical breakdown Description

1 Project Complete project

2 Deliverable Major deliverables

3 Subdeliverable Supporting deliverables

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Lowest management
4 Lowest subdeliverable
responsibility level

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Grouping of work
packages for
5 Cost account
monitoring progress
and responsibility
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Identifiable work
Work package
activities
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Figure 13.5 >  Hierarchical breakdown of the work breakdown structure

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A project activity
is an element or Source: Larson, Erik W. & Gray, Clifford F. Project Management the Management Process, 5th edn, McGraw-Hill, USA,
specific event of 2011, p. 108.
the project that
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requires time and

may or may not An effective WBS breaks the project activities into a set of simpler tasks that together achieve the desired
require resources, for result and provide a sufficient description of the activity to use as clear instructions for the person who will do
example, purchase
materials. the work. You can make a task a milestone. A milestone is a significant point in the project and has no duration,
cost or resources assigned to it.
A work package
defines at the lowest Work packages
level of the WBS the Each work package is a portion of the WBS that identifies essential steps involved in the completion of the
steps and a deadline
by which each of work. Larson and Gray (2011, p. 110) explain: ‘Work packages are short duration tasks that gave definite start
the steps must be and stop points, consume resources, and represent cost. Each work package is a control point.’ Multiple teams
completed in order may complete work packages simultaneously.
for the project to stay
on track.
A work package:
■■ defines the work and how long it will take in a schedule
Schedules ■■ identifies who is responsible for the work
convey information ■■ identifies resources and budget required to complete the work package
concerning the ■■ identifies monitoring points to measure progress.
project activities
or tasks to be
accomplished over Project network
a period of time and
The network is a graphic flow chart of the project job plan. It is a logic diagram developed from the information
events or milestones
that take place at a collected for the WBS. The project network depicts the start and end dates, the sequence and interrelationships,
point in time. and accurate time estimates for project activities.

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 CHAPTER 13 Manage projects 363

The network provides project managers with an information system from which to make decisions
concerning project time, cost, and performance. Other stakeholders can view the network schedule to verify
the status of the project plan, analyse progress and evaluate alternatives.
Network scheduling is integral to the project’s risk management, financial and technical management
Network
processes. It is an essential element of organising, leading, assigning tasks, controlling, finalising and scheduling
reviewing a project. An effective schedule provides a baseline for project monitoring, reporting and controlling shows a depth of
the  project.  A properly executed schedule opens communication among the project team and other detail about when
each activity is
stakeholders, as well as supporting time and cost estimates and establishing commitment to project tasks and scheduled to begin
milestones. and end, highlights
A four-step process to follow for schedule preparation is: interdependencies,
1. Define the activities. identifies a critical
path for activities
2. Sequence the activities. that must be
3. Estimate the duration of the activities. finished to avoid
4. Develop the schedule and schedule controls. missing the
milestones and
completion date,
Common methods to develop network schedules are PERT charts, critical path method, and Gantt or mile­ and identifies slack
stone charts. (if any).

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Ask yourself

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The components in network development are sequencing and estimating the duration of activities, determining resource
requirements and availability, preparing calendars to show when the work will be performed, identifying assumptions,
constraints and risks. The challenge in project management is to develop a project network that balances schedule, risk, cost
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and performance.
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ASK YOURSELF:  Which stakeholders would you involve in defining and sequencing the activities in a network schedule? How
would you identify the schedule controls?
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Activity-on-node method
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Activity-on-node (AON) (sometimes called the precedence diagram method) is an activity sequencing tool that
uses nodes to represent the project activities. Nodes are portrayed as boxes or rectangles connected with other Nodes are
nodes by arrows to show how the activities are connected and the sequence in which things must be done. predetermined
points in the
Three basic relationships must be established for a project’s activities before a visual representation of the project’s schedule
sequence and logical interdependencies of the activities can be constructed. network that
1. Predecessor activities must be completed immediately before an activity. typically represent
2. Successor activities immediately follow an activity. meeting points of
some or all of a
3. Concurrent activities or parallel activities occur as other activities take place. series of specific
dependency lines
AON diagrams are designed to show and/or significant
occurrences that
the sequence and interdependencies B may take place
A C
between activities. The AON diagram during the course of
in Figure 13.6 shows a ‘finish-to- the project.
start’ precedence—one activity must BEGIN D END
E
be finished before the next can start.
Activities A and D must be done before
activity E can begin; activity F must be F G
done before G; activities A, D and F are
concurrent; A is a predecessor to B; B is
a successor to A and a predecessor to C. Figure 13.6 >  Activity-on-node diagram

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 364 PART 4 Leading and managing operations

PERT charts
The Program Evaluation Review Technique (PERT) chart follows on naturally from the WBS. It takes the tasks
from the WBS and charts them graphically, whereby the tasks are connected by arrows that illustrate their
relationships. The timeline is less important in a PERT chart: the sequence of tasks is the highlight. Figure 13.7
illustrates a basic PERT chart. The critical path (longest path) is from the start to F to G to C to the end
(6 + 12 + 4 + 6 = 28).

F 12 G

6 4

Start 6 A 4 B 5 C 6 End

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Figure 13.7 >  PERT chart

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To draw a basic PERT chart, take the tasks from the WBS and place them in boxes (nodes). Connect each
task using arrows, reflecting their dependencies (each task has a predecessor and is a predecessor for another
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task, unless it is the start or finish task).
One of the primary advantages of a PERT chart is its ability to highlight errors in the schedule or task flow.
A PERT chart also shows paths through the project—sometimes just one, sometimes several. It also identifies
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which path is the most critical. PERT facilitates determination of the critical path for the individual tasks and
allows the project to meet its deadline.

Critical path method

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The critical path The critical path method identifies which task, series of tasks or milestones are crucial to the completion on
method (CPM) time of the project. If a task, or tasks, must be completed at their place in the schedule for the project to be
identifies the longest
path(s) (start to finish
successful, their completion is critical. Critical paths are those that are:
date) through the ■■ the longest from the start of the project to the finish
network of project ■■ contain tasks that cannot be started later than scheduled without endangering the project’s
activities that must completion date.
be completed on
schedule.
The critical path method identifies constraints and/or relationships among tasks and establishes the order
Milestones are in which the tasks will be accomplished. Determine the critical tasks or milestones within the schedule by
significant points identifying the:
or project events
■■ longest paths, that is, tasks joined together by predecessor relationships
that mark major
accomplishment in ■■ tasks with zero float, that is, cannot be started later than the scheduled start date without delaying
the life cycle of the the project’s scheduled completion time
project. ■■ tasks or milestones driving the end date of the project
■■ shortest completion time of the project.

A critical activity can be:

■■ a single task—known as a critical task
■■ multiple (independent) tasks—known as critical tasks
■■ multiple (dependent) tasks—known as the critical path(s)
■■ a milestone—known as the critical milestone.

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 CHAPTER 13 Manage projects 365

The longest path through a network is critical because delays or non-completion of its tasks will prevent the
project from meeting its deadline. The critical path is important because it helps to ensure the final outcome
happens on time and within agreed budgets. By considering the critical path in the planning stage, project
managers are able to verify if the project schedule is achievable.

Gantt or milestone charts

Gantt charts are a combination of the WBS and PERT networks. Gantt and milestone charts display the actual
versus the planned progress of a project and draw attention to any variation from the planned schedule. The
Gannt chart plots tasks graphically against the timeline and identifies milestones.
However, it is typically helpful in attempting to ensure that the project is moving effectively as well as to
allow points in time for the project team to pause and look back on what has occurred.
Milestones identify accomplishments as points in time or significant events that allow the project team to
verify progress is on track. Milestones can occur at any significant point throughout the project and typically
refer to completion points for large schedule events and the beginning of the next series of events.
As well as communicating progress against tangible measures, milestones provide evidence of progress
towards the project’s completion for senior management or the project sponsor. Milestone accomplishment
allows the project team to celebrate their shared responsibility and accomplishment.

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Figure 13.8 illustrates a Gantt chart from Microsoft Project.

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Figure 13.8 >  Gantt chart

A Gantt chart plots each task on a vertical axis and shows the tasks ahead as well as the work already
Sa

completed. An effective Gantt chart defines the critical path, allows the assigning of resources and information
to the task and clearly displays task dependencies, milestones and tasks with lead or lag time assigned.
In Figure 13.8, the second task has a significant lead-time into the first task and the chart shows which
task follows on from which. The timeline is clearly displayed across the top and non-working hours such as
weekends are omitted.
In addition to the availability of computer software packages to develop a Gantt chart it is possible to pin
strips of paper to a noticeboard or whiteboard, or use pen and paper, depending on the complexity of the
project and the skill of the users. In general, follow these guidelines:
■■ List tasks down the left-hand side.
■■ Place the timeline across the top.
■■ Indicate predecessors and successors with arrows.
■■ Shade the portions of activities accomplished to track progress.
■■ Use the Gantt chart for reporting project status.

The use of computer software to draw Gantt charts allows the entry of progress information about each task
such as resource and cost data, and the mark off of the percentage of task(s) completed.
Gantt charts are also useful for schedule simulation. In a simulation, the project manager and/or team can
try out different combinations of time, cost and resources to see what effects this will have on the schedule. The
preferred schedule is then chosen. Schedule stimulation is a form of contingency planning for any variations
in time, resources or budget that may occur during the project. If any of the contingencies identified in the
schedule simulations occur, strategies to deal with them have already been considered. By consulting with

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 366 PART 4 Leading and managing operations

subject matter experts and asking those with project experience to check the project activities, tasks and
schedule, it is possible to identify gaps in the project plan and discuss options to fill the gaps. The Gantt chart
becomes a valuable monitoring tool.

Establishing controls
Controls are the means to monitor and influence a project’s progress. Cost, time and budget estimates are
the standards against which actual costs, time and budgets are monitored. An effective project plan identifies
controls to ensure project tasks are implemented and enhances monitoring and identification of any time-
based variations, cost-based variations, specification-based variations and resource-driven variations.

Project control steps

The baseline is The project baseline refers to the cost, schedule and resource allocation in the approved project plans. The
the planned cost, project’s baseline is used to measure how performance deviates from the plan. The project baseline allows
schedule and
resource allocation the project manager to measure and manage project time and costs. Performance measurement is only
against which actual meaningful if the baseline—the original scope, cost and schedule—is defined and documented accurately in
cost and schedule the project plan.
performance are Table 13.3 describes the four-step process for measuring and evaluating project performance.

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measured.

Table 13.3 >  Four-step process for measuring and evaluating project performance

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Step Description
1. Setting a baseline Derived from:
•  cost and duration data in the work breakdown structure
•  time-sequence information in the network schedule
2. Measuring progress and performance Involves:
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•  determining critical path is on schedule
•  comparing actual against budget and ensuring budgeted cost of the work performed is on track
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3. Comparing plan against actual Measures deviations from plan to:
•  determine if corrective action is necessary
•  monitor and measure status of project against expectations in project plan
•  create status reports and allow for proactive correction before major deviations occur
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4. Taking action Corrects deviations by:

•  taking action to align project to original or revised plan
•  incorporating new information and/or change into the baseline plan
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Effective control is dependent on information. Control requires the project manager and team to use
information in the WBS, the project network and the Gantt and control charts to compare what is happening
with what should be happening. Timely action to correct deviations can remove the cause, minimise the
impact of problems and enhance the opportunity for successful project completion.

Ask yourself
The Project Management Institute (2012) offers the following definitions:

A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and resources …
Project management then is the application of knowledge, skills and techniques to execute projects effectively and
efficiently.

ASK YOURSELF:  What are your strongest skills in project management? What skills in project planning do you need to
strengthen? What other areas of your work can benefit from capabilities in project management?

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 CHAPTER 13 Manage projects 367

Estimating time and costs

Cost estimating is the process of developing an estimate of the costs and resources needed to complete a Estimating is
project. Accurate cost and time estimates reduce the uncertainty inherent in all projects. The size of deliverables, the process of
predicting or
effort or number of people times the number of days, weeks or months, and the project duration, productivity approximating the
and quality have an impact on the magnitude of costs of a project. time and cost of
completing project
Estimating processes deliverables.
Table 13.4 identifies methods in two common estimating processes—top-down estimates and bottom-up
estimates. Senior management usually create the top-down estimation on the basis of their experience,
information and mathematical relationships. People who are doing the work and have experience with the
activities, tasks and procedures usually create the bottom-up estimates from the WBS. Estimates are created
for all tasks at the lowest level of the WBS and accumulated to determine the estimates for the whole project.
Table 13.4 >  Two approaches to estimating

Top-down approach Bottom-up approach

Consensus methods utilise the combined experience of senior Template methods use costs from similar past projects as guidelines to

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and middle managers to estimate time, costs and resources estimate time, costs and resources—adjustments are made to cater for any
differences from previous projects

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Ratio methods use a statistical relationship between historical Parametric procedures applied to specific tasks determine the amount of

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data and other variables, for example, square metres of an effort for the task either from a standard that has been established from
office multiplied by cost of refurbishment per square metre— previous experience or by undertaking a sample activity if no standard
reliant on collection and analysis of previous project cost data exists—also known as the object-based method
to develop the cost estimating relationships
Apportion methods use the work breakdown structure to Work breakdown structure packages estimate for each lowest level work
estimate costs—useful when a project closely parallels a past package direct labour costs, direct costs such as materials and equipment
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project’s features and costs and indirect costs
Function point methods use weighted macro variables called Range estimates from highest to lowest are used when the time and cost to
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function points, usually for software and system projects complete work packages are uncertain
Learning curves draw from historic experience to determine patterns of improvement when the same tasks or product are repeated
several times
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Project budget
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Three types of project costs are:

1. direct costs, which are costs that are clearly chargeable to a specific work package, such as labour,
materials, equipment and other
2. direct project overhead costs, which are directly tied to an identifiable project deliverable or work
package, such as rents and specialised machinery
3. general and administrative overhead costs, which are organisation costs indirectly linked to a
specific package that are incurred over the project life cycle.

The project budget is derived from the estimate of each work package and predicts how much will be required
to integrate the project scope, schedule and resourcing for accomplishing the project and when it will be spent.
The budget should estimate all of the expenses including the direct, indirect and overhead costs of resources,
equipment, materials, facilities and other items.
The key term in project management is accountability. The purpose of the project budget is to:
■■ predict and estimate costs
■■ measure and record actual costs
■■ compare actual to estimated costs
■■ communicate information gathered to stakeholders
■■ learn from the review and apply the learning to the next project.

The information provided in the budget can be used to make informed judgments and decisions in the next
project. In the review process, the actual costs are compared to the projected costs and the reasons for any
variations analysed.

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 368 PART 4 Leading and managing operations

A budget is a forecast. In the finalisation stage the actual expenditure and revenue (if any) are compared to
the initial projections contained in the budget, hence when preparing the budget evidence should be provided
in writing to defend any variations in the initial estimates. Always:
■■ state in writing the assumptions underpinning the budgets
■■ show the level of tolerance stakeholders accept
■■ show how the estimates were derived.

Typical reasons for any discrepancies between the budgeted forecasts and actual financials are:
■■ unexpected rises in costs over the life of the project
■■ errors when calculating the costs against project activities
■■ errors when transcribing figures into reports
■■ too little or too much time in the approved project schedules
■■ changes in the client’s requirements that lead to changes in the project’s scope
■■ insufficient qualified and competent skilled workers for the project
■■ inaccurate allocation of technical resources and equipment
■■ unexpected contingencies in the market; for example, supplier goes out of business.

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Guesstimation
Guesstimation is another of the recognised project management techniques for estimating time. Note the

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A guesstimate is guesstimate is unlikely to be exactly right; it must, however, be reasonable.

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a working estimate Experienced project managers have the advantage of their experience to help them make the guesstimate.
of time.
Defensive scheduling is built into the guesstimate to avoid being too optimistic and unrealistic about timelines.
Unexpected difficulties may arise so a little extra time or slack may provide the team with some tolerance
against mistakes.
The WBS, PERT chart and Gantt chart enable an estimate of cost and time against each activity or work
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package. A guesstimate of the time each task will take is usually included at the bottom of the WBS in a sequence
diagram. This keeps the information in the one document and the project manager, team members and other
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stakeholders can access information that is simple, clear and found in one place.

Allocating resources and tasks

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Six resource types typically used in a project are human resources, plant and equipment, materials, working
capital and finances, information and technology. These resources may come from within or outside the
organisation.
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Determining and accessing resources is split into three parts: determining resource needs, determining
where resources will come from and gaining approval to use the resources.
The focus of resource allocation is on meeting the project’s time, cost and specifications in the best possible
way. Two main types of resource allocation are:
1. time-limited resource allocation—time overruns cannot be tolerated
2. resource-limited resource allocation—no more resources than those allocated can be used.

Three useful formulae to calculate work, duration and resources are:

1. work = duration multiplied by resource units
2. duration = work divided by resource units
3. resource units = work divided by duration.

If the time allocated is insufficient, the size of the project will have to be reduced or more resources allocated to
complete it within the limited time. If there are insufficient resources, the scope of the project may have to be
reduced to fit the resource limitations. A project manager should ensure available resources are:
■■ adequate to resource the project through the whole cycle
■■ prioritised and determine any risks for the project
■■ supported by commitment from management to provide adequate resources.

The various tasks on the WBS and schedule are allocated to different people in the project team. The existing
skills and experience of each member of the project team and how to group together dependent tasks that use
common ideas, information and skills should be considered in order to minimise start-up times.

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 CHAPTER 13 Manage projects 369

The sequencing and allocation of the tasks must complement task relationships. Table 13.5 identifies four
types of task relationships. Monitoring the start and finish relationships helps to avoid time overruns.

Table 13.5 >  Task relationships

Type Description
Finish–Start relationships Exist where Task B cannot start before its predecessor Task A has finished, for example, passing the baton
in a relay race
Finish–Finish relationships Exist where Task B cannot finish until its predecessor Task A has finished
Start–Start relationships Exist where Task B cannot start until its predecessor Task A starts. The emphasis is on Task A starting; for
example, the car ahead of you that is stopped at the traffic lights—the finishing line or time doesn’t impact
Start–Finish relationships Exist where Task B cannot finish until its predecessor Task A starts. Task A must have started for B to finish

Risk management
Managing risk is the process of
using risk analysis to
Risk management attempts to recognise and manage potential and unforeseen difficulties or threats that devise management
may arise over the life of a project. The AS/NZS ISO 31000:2009, Risk management—Principles and guidelines strategies to reduce

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standard identifies the following steps in the risk management process: (1) establishing the context, or ameliorate risk.
(2) identifying the risks, (3) analysing the risks, (4) assessing and prioritising the risks, (5) treating the risks,

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Risk in the
(6)  monitoring and reviewing, communicating and consulting. Refer to Figure 19.1 on page 527 for an

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context of project
illustration of the risk management process. management is
Risk is inherent in any project and includes an error in time or cost estimates or a misallocation of the chance an
undesirable event
resources. Risk management minimises the consequences of uncertainty and deviations from what is planned will occur and if it
or expected by identifying what can go wrong, what can be done about the possible risk before the project occurs the possible
begins,  how to handle the event if it does happen (contingency planning) and how to source contingency consequences on
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funds. Project managers and other stakeholders are concerned with uncertainty and the potential impact of project outcomes.
deviations from the project plan.
A risk breakdown
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structure (RBS) is
Risk breakdown structure a hierarchical list of
The risk breakdown structure (RBS) identifies the various areas and causes of potential risks. The RBS shown the identified project
risks arranged by
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in Figure 13.9 identifies three categories of risk—technical, cost and external. The RBS facilitates understanding risk category and
of the areas of a project that might require special attention to reduce the likelihood of any undesirable events. subcategory.
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PROJECT

TECHNICAL EXTERNAL
COST RISKS
RISKS RISKS

Increasing price Regulatory

Technology
of supplies changes

Overruns due to
Performance Suppliers and
inexperienced
and reliability subcontractors
estimators

Insufficient
Complexity and
contingency Weather
interfaces
funds

Figure 13.9 >  Risk breakdown structure (RBS)

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 370 PART 4 Leading and managing operations

The insights gained from identifying and categorising risks in a RBS reveal root causes of risk and expose
the most significant sources of risk to the project. When a risk is identified, it is assessed to determine how to
treat the risk. Five alternative ways of treating risk are shown in Table 13.6.

Table 13.6 >  Responses to risk

Response Description
Mitigate risk Reduce the likelihood of the undesirable event, for example, by testing on a sample
Reduce the impact of the adverse event on the project, for example, by installing a back-up process
Avoid risk Eliminate the risk or condition, for example, by changing the project plan
Transfer risk Pass the risk to another party, for example, fixed-price contract or by insuring against risk
Retain risk Accept the risk of an untoward event occurring, for example, an unexpected cost over-run
Share risk Ameliorate risk and/or capture opportunities, for example, by sharing with a specialist team

Contingency planning

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Risk assessment focuses on risks that can impact on the whole or significant parts of the project. High-risk
areas are critically evaluated and contingency plans for responding to an identified risk event are developed

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first. Then contingency plans are developed for less consequential risks.

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Contingency planning involves identifying risks, estimating the effects they may have and formulating a
plan to deal with them. The tolerance for risk and the treatment alternative chosen—mitigate, avoid, transfer,
retain or share the risk—will depend on the likely impact of the risk on the project’s scope, budget and schedule.
Three tolerance levels are described in Table 13.7. The amount of exposure to risk informs decision making
about how to treat the risk.
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Table 13.7 >  Tolerance levels
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Level Description
Averse Risky events avoided, with an emphasis on caution
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Neutral Risky events managed, with an emphasis on balance

Seeking Risky events managed, with an emphasis on experimentation
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A contingency plan A contingency plan indicates what to do if unplanned events occur. They may be as simple as asking and
is an alternative plan recording the responses to ‘What if …?’ questions or be a formal alternative plan to be used if a possible risk
that will be used if a
possible anticipated event becomes a reality.
risk event becomes A contingency plan answers the questions of what, where, when and how much action to take when
a reality. contingencies occur. The keys to effective contingency planning are:
■■ recognising the key points in the project plan where alternative courses of action are possible and
thinking through the possible scenarios for each one
■■ learning from experience and the risk profile about patterns of unpredictable peaks and troughs
in activity
■■ identifying in advance those milestones which if missed will significantly impact on the project
■■ keeping all stakeholders informed and up to date on progress so that remedies or work-around
plans can be applied to events before they cause significant disruption.

The purpose of contingency planning is to pre-empt many of the problems caused by uncertainty about
how to deal with anticipated or new risks. Contingency planning evaluates alternative remedies for possible
anticipated events before the event occurs. Clear documentation of the contingency plan facilitates
communication, coordination and action should the risk event happen.
Documenting and integrating into the WBS every approved change caused by contingencies maintains
the currency and accuracy of the WBS. As well as tracking the allocation of contingency funds and the cost of
changes, recording approved changes shows who is responsible for implementing and monitoring the change.
The response and treatment of a risk event is visible to all relevant stakeholders.

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 CHAPTER 13 Manage projects 371

Risk register
Identified risks should be documented in a risk register. A risk register identifies each risk and its category, the
probability of occurrence, responses or treatment plans, owners of the treatment actions and the current status.
Refer to Table 19.2, on page 531, for an example of a risk register showing the consequences and likelihood of risk.

Ask yourself
Risk control involves executing the risk treatment strategy, monitoring trigger events, initiating contingency plans and
watching for new risks.

ASK YOURSELF: What is the purpose of contingency planning? If a contingency occurs, how will you determine the
appropriate risk treatment alternative?

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Developing a communication plan A risk register is

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the formal record
Communication is a key driver in project management. The coordination and tracking of project schedules, issues

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of identified risks,
and action items depends on the flows of information between different stakeholders. The advantages flowing to an assessment of
a project manager from the development of a project communication plan are engagement with stakeholders potential risks and
their likely impact
due to the ongoing, purposeful flow of information. The power/interest grid developed during the stakeholder on the project, and
analysis (see Figure 13.4) provides valuable information about who needs what information, and when. how the risks will be
Planning and developing the communication plan requires completion of the following: treated if they occur.
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■■ Identify what information needs to be collected and when.
■■ Determine who will need the information and when. A communication
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■■ Decide how to collect, store and disseminate the information. plan defines for
each target group
■■ Decide if there are restrictions on who has access to information. what message and
■■ Determine time frames and reporting channels. methods will be
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■■ Choose templates and version control method(s). use to reach them

■■ Choose channels of communication appropriate to the communication purpose and and the frequency
of the different
stakeholder need(s). communication
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activities for each

Table 13.8 identifies the communication needs, preferred channel, format, when and responsibility in a target group.
communication plan for three stakeholders—the client or project sponsor, project team members and
senior management. An effective project communication plan identifies the variety of stakeholders, their
communication needs and a list of possible project documentation, such as meeting minutes and records of
monitoring processes required over the project life cycle.

Table 13.8 >  Sample communication plan

Stakeholder Communication Preferred channel Format When Person responsible

needs
Client (Sponsor) Status reporting— Email and hard copy Progress report—one Fortnightly following Project manager
schedule, budget, page summary including project team meeting
variances, issues table for scope status and
issues and spreadsheet for
schedule and budget status
Project team Assigning and Online shared Schedules, task lists, Ongoing Project manager and
members tracking tasks workspace specifications team members
Face-to-face toolbox Gantt charts
meetings Group calendars
Senior Communicating Email and hard copy Milestone report Bi-monthly Project manager
management progress of project

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 372 PART 4 Leading and managing operations

Established methods of communication such as written progress reports, email, interaction via social
media, meetings, team briefings, problem-solving groups and face-to-face discussion are essential. Effective
communication promotes teamwork and enables the project team to monitor progress, receive early warning
of problems and acknowledge achievement of milestones.
An effective communication plan defines who will carry out the planned communication activities,
coordinate and follow up to verify that activities have been implemented in the way foreseen in the
communication plan, and identifies activity and result indicators.

Apply your knowledge

1 a) For the fitout of a floor of a new building you scoped in question 2 of the Apply your knowledge on page 361, develop the project
plan including:
• a work breakdown structure
• a project schedule
• a contingency plan

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• a communication plan.
b) Identify strategies you could use to:

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• consult with project team members

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• provide support to project team members
• involve project team members in the project review process
• reassign project members on project completion.
2 Write a short information report. In your report:
• list the major groupings found in a WBS
• identify the features of a work package
• discuss the purpose of a PERT schedule
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• discuss how to establish the time, cost and quality standards of performance.
3 a) Explain the relationship between the work breakdown structure and project scheduling.
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b) How is the critical path determined?
c) Why should project managers consider the critical path in the planning phase?
4 Work in small groups.
a) Discuss how to identify and anticipate potential sources of risk.
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b) Brainstorm the kinds of risks that may occur in projects.

c) Develop a list of strategies for mitigating project risk.
5 a) What is the purpose of a project budget?
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a) From whom would you seek approval for a project budget in your work area?
b) What are the advantages you gain by documenting the budget for a project?
c) Create a list of common reasons for discrepancies between budget forecasts and actual financials.

13.3 Administer and monitor the project

Project management requires implementation of the project plan. It also requires controls that enable those
administering and implementing the project to maintain task flow and stay on the critical path. ‘Staying on the
critical path’ means the project is being managed according to the plan.
There are two dimensions to project implementation. The first is the technical dimension—planning,
scheduling and controlling. The technical dimension includes stakeholder analysis, scoping project
deliverables, developing the project plan, mitigating project risk, development of the WBS, resource allocation,
reporting and other technical tasks. The technical dimension is the formal, logical part of the project
management process.
The second dimension is the sociocultural side of project management. Larson and Gray (2011, pp. 15–16)
explain:
In contrast to the orderly world of project planning, this dimension involves the much messier, often contradictory
and paradoxical world of implementation. It centers on creating a temporary social system within a larger
organisational environment that combines the talents of a divergent set of professionals working to complete

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 CHAPTER 13 Manage projects 373

the project … Overall the manager must build a cooperative social network among a divergent set of allies with
different standards, commitments and perspectives.

Figure 13.10 illustrates the two dimensions of project implementation.

Sociocultural
Leadership
Problem solving
Teamwork
Negotiation
Politics
Customer expectations

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Technical

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Scope
WBS
Schedules
Resource allocation
Baseline budgets
Status reports
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Figure 13.10 >  The technical and sociocultural dimensions of the project management process.
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Source: Larson, E. W. and Gray, C. F. Project management the managerial process, 5th edn, McGraw-Hill USA, 2011, p. 15.

Communication and influence

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Project managers must lead and manage the project team and other stakeholders across the range of
project activities. They initiate contact with key stakeholders, reinforce project objectives, provide feedback
and  problem solve. They are able to adapt as circumstances change and build sustainable, cooperative
relationships.
Project managers exercise leadership, facilitate teamwork and manage and control resources, costs
and time. The people skills required in the implementation phase are as essential to the project’s success as
those in the planning phase. Negotiation, conflict management, problem solving and meeting stakeholder
expectations are all keys to successful implementation. (Refer to Chapters 5, 6 and 15 for more information.)
Effective communication is essential for maintaining the support, commitment and engagement of
all  stakeholders. Appropriate channels of communication include project meetings, formal presentations,
informal discussions, project reports, project online shared workspaces and instant messaging. Communication
builds and maintains relationships.
The temporary nature of a project and the interdependencies among different groups of stakeholders
means the project manager must exercise personal power as well as positional and expertise power to influence
stakeholders. Managing the relationships both within and around the project across a range of stakeholders
such as project sponsors, top management, the project team, administrative support groups, contractors,
government agencies and customers requires a project manager to exercise influence upwards, downwards
and sideways.
The communication plan is enacted and used in project meetings to report on progress and keep other
stakeholders informed and engaged. As well as keeping stakeholders informed, good, accurate and timely
communication motivates and enhances an understanding of the project’s direction and status.

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 374 PART 4 Leading and managing operations

Monitor and control

The purpose of monitoring and controlling project work is to maintain an efficient and effective workflow over
the project life cycle. Monitoring and control processes measure performance against the project baseline.
Time performance is measured against the critical path; actual costs are measured against the budget. Periodic
monitoring of planned against actual performance holds people accountable and prevents small problems
from escalating into large problems.
Effective monitoring and control ensures the project activities conform to the benchmarks and
performance standards defined in the project scope statement and in the project plan (WBS, network schedule
and budget). Control of cost, schedule and specifications throughout project execution and follow-up activities
ensures performance and outcomes adhere to the predefined standards, target values, activity  and result
indicators.
During monitoring project managers pay particular attention to costs, time and budget. Six examples of
Per cent complete loose per cent complete rules used in measuring project progress are shown in Table 13.9.
rules are applied
in the monitoring
phase as checkpoints Table 13.9 >  Per cent complete rules
against which
progress is Rule Description

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measured.
0/100 Measurement only happens and is recorded after the project is fully competed

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Milestone Measurement and monitoring happens when the control point or milestone is reached

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Standard dollar expenses The percentage of costs (say 20%) are assigned to an equal percentage of time interval (say 20% of
project life)
50/50 rule Records half the achievement for each task when the work is scheduled to begin and the other half when
the schedule is completed
Equivalent units Measures achievement against number of completed project tasks
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Level of effort Measures the resources used over a given period of time
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Performance is measured to compare what is happening with what should be happening and to take
corrective actions to correct any deviations from performance measures and standards. The project manager
and members of the project collect predefined project performance data identified in the project plan.
m

The project manager monitors responsibilities and the carrying out of the planned activities in the way
foreseen in the WBS and network schedule. A contingency response is implemented when control information
gathered through observation, discussions, meetings and analytical tools identifies variances from planned
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progress. A risk response is initiated when any variance reaches an identified level of tolerance. Responsibility
for treatment of the risk lies with the risk’s owner, as set out in the project risk register.

Records and reports

Clear and concise records confirm the activities undertaken across the four phases—definition, planning,
execution and closing—of a project. The records show achievements against project scope, schedules, critical
paths, milestones and deliverables.
Records substantiate claimed expenditure for the project activities to which the expenditure relates.
For example, claims for salary, materials and other costs must be supported by documentation. A record
of transactions enables them to be traced and verified through the project’s or organisation’s accounting or
finance system.
A good project record-keeping system will detail project performance, achievements, expenditure and
outcomes in accordance with organisational and legal requirements. The records enable the verification and
timing of expenditure and establish that the amounts claimed are directly attributable to particular activities
and deliverables.

Project reports
Project reports should convey complete, accurate, concise and objective information to stakeholders. Data
should be collected and actual activity duration times, resource usage, rates and costs compared against
planned times, resources, budgets and quality specifications. The purpose of four types of project reporting is
shown in Table 13.10.

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 CHAPTER 13 Manage projects 375

Table 13.10 >  Types of project report

Type Purpose
Formal progress reports of what Convey information (often in short report format) about:
has happened, how, when and •  project commencement—on time, behind or ahead of time against task schedules and milestones
by whom •  progress against schedule and milestones
•  actual financial performance against budget and cash flow forecasts in project plans
•  conformance of project outcomes with project specifications
•  work-in-progress conformance with resource allocations in project plans
•  completion of deliverables—on time, behind or ahead of time against task schedules and milestones
Status reports are required at Convey information about conformance to specifications, resource availability and budget at status date.
regular intervals throughout Summarise (often in table format) the:
a project •  schedule—activity, work completed, approved milestone date, revised date(s) and current estimated
completion date
•  activity—budgeted cost, revised actual cost
•  budget—original approved budget, authorised changes and current estimated budget
•  issues or risks that have resulted in approved changes to scope, schedule, budget, quality or
functionality and who is responsible for implementing corrections

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Variance request is a formal Identifies (often in table format):
process that documents changes •  item of scope affected

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to scope time, cost or quality •  requested change and reason for change

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•  impact on scope, budget and schedule
A completion report evaluates a Provides a brief background and a short description of a project’s performance—what happened, what
project’s outcomes for the benefit was learned, what went well and did not go so well. Refer to Figure 13.11, page 377, for the components
of subsequent projects in a completion report
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Ask yourself
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Project reports and records fulfil legal and accountability responsibilities, maintain historical records of a project’s activities
and provide lessons for future projects.
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ASK YOURSELF:  What sort of information would you require before approving a claim for expenditure on a project work
package? What problems are likely to arise if an expenditure claim is not supported with appropriate evidence?

13.4 Finalise and review the project

Three essential components of the project closure are wrap-up, evaluation and lessons learnt. Wrap-up
involves closing accounts, paying bills, reassigning people and equipment, closing facilities and the final
report. Evaluation involves a review of performance against the project’s predefined standards, target values
and activity indicators. Lessons learnt—successes and failures—are captured in reviews conducted by either
an independent facilitator or the project manager with the project team. Lessons learnt inform future projects.
A final report is prepared to document the progress through the project, its achievements and final outcomes.
Closure of the project is communicated to the project team and other project stakeholders. They must also
be informed of follow-on activities such as assignment to a new project or reassignment to previous duties.
By providing recognition of achievements and initial and ongoing support and guidance as the project team
members are assigned to new projects or roles, the project manager will reduce the risk of the project member
becoming demotivated and disengaged from the organisation.

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 376 PART 4 Leading and managing operations

Formal closure should be recorded in writing. Always gain sign-off from the client. Some of the typical
items to include in a written formal closure are:
■■ a completion checklist
■■ an agreement that the project conforms with the specifications
■■ an agreement that the project meets the terms of reference and fulfils the scope
■■ an agreement for final payment and client sign-off.

At the close-out stage provide the client with completion certificates, warranties (if any), maintenance
contracts and operational documentation.
The contract and other relevant documentation such as progress reports, status reports, financial records,
invoices and payment records are stored in the project file.

Review project
Review meetings provide the opportunity for project stakeholders to voice issues or seek clarification on
budgets, schedules, objectives and milestones. Guidelines for encouraging participation in project review
meetings include:
■■ setting aside a fixed time and schedule for meetings with the project stakeholders, and keeping

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the commitment
■■ setting guidelines for expected response times from project team members

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■■ ensuring that you respond to emails and voice mail messages promptly
■■ using available technology such as instant messaging and the telephone to get immediate
feedback
■■ replacing or augmenting traditional noticeboards with intranets and shared online workspaces to
keep project team involved
■■ conducting regular status reports to make formal objective review of achievements across project
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activities and time lines more effective
■■ ensuring emails, online and written communication is clear, concise and complete.
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Lessons learnt
Learning about what went well and not so well over the project life cycle requires facts and information to
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uncover the causes of failures and successes. Projects are evaluated according to accomplishment, cost and
time spent.
Positive and negative lessons are learnt from evaluation of the following aspects of a project:
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■■ quality of initial project definition—scope, stakeholder analysis and identification of deliverables

■■ accuracy of project plans, budget and schedules
■■ appropriateness of interventions to manage change
■■ problem solving—timing, diagnosis of causes and implementation of corrective action
■■ communication within team and with other stakeholders
■■ teamwork—sharing knowledge and skills, commitment to team processes and success
■■ performance against schedule, resource use, budget and quality of deliverables
■■ control of uncertainty and response to risk
■■ factors underpinning accomplishments or causing problems
■■ quality of documentation—adequate, informative, clear, complete and easy to access.

Typical barriers to implementing the lessons learned are lack of time, inadequate reporting, people blaming
one another and an unwillingness to accept constructive feedback. Lessons learnt should be shared across the
organisation to help in the planning and implementation of other projects.

Project review report

The project review assesses the success of the project and informs future projects. The report documents
how well the project fulfilled its objectives by comparing the project outcomes against the original project
definition and plan. The level of detail provided will depend on the project and the organisation or project
sponsor’s requirements.
Figure 13.11 identifies the typical sections of a project review report.

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 CHAPTER 13 Manage projects 377

Title page

Introduction including:
Project scope including expected outcomes of the project
Initial consultation
Project brief and objective
Agreed changes to project objectives from variance requests

Main body
Project plan or summary including deliverables, milestones, quality
standards, budgeted cost, scheduled date
Final actual cost and final date
Summary of risks and issues and the action(s) taken to resolve them
Lessons learned—analysis of what worked and what did not work for
each phase of the project and relevant supporting objective evidence

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Conclusions

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Summary of lessons learnt based on analysis in the main body

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Recommended improvements
To avoid the same mistakes and apply key lessons learnt to improve
management of future projects

Appendices
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Contain documents such as contract agreement and other documents
relevant to the review
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Figure 13.11 >  Sections in a review report

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Apply your knowledge

1 Monitoring and control ensures the project activities conform to the benchmarks and performance standards identified in
the project scope and plan.
a) Develop a list of controls used to manage a project and explain how controls help the project manager and project team
members
b) Identify three factors project managers must pay particular attention to as they monitor a project.
c) Identify two variances from planned progress that would initiate a risk response.
d) Where would treatment of the risk be recorded?
2 Write a short description of:
• the technical dimension and sociocultural dimension of project implementation
• how knowledge of the two dimensions helps a project manager build a cooperative social network among stakeholders
• the types of power exercised by a project manager.
3 For your project—fit out a floor of a new building as office space:
a) describe and explain the reports you would prepare over the life of the project.
b) prepare a document for completion and sign-off of the project.
4 Imagine you are holding a start-of-project information session for staff. In your presentation:
• Explain what risk management is about, and why it is essential for the project.
• Discuss at what point should a risk response be initiated.
• How would you respond to this question from one of the staff: ‘Would you be happy to change a project objective if a risk
threatened it?’
• Explain the reasons for gaining agreement from stakeholders to change an objective because of a risk threat.

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 378 PART 4 Leading and managing operations

5 Create a checklist of the activities you should complete in the handover or completion stage of the project. Next time you
participate in a project use the checklist to verify each of the activities has been completed.
6 a) Briefly discuss three benefits gained from identifying responsibilities and providing assistance when assigning project staff to new roles.
b) Why should you report and close the project formally?
7 a) What are the benefits of having an independent facilitator lead a review meeting?
b) Develop a list of guidelines for encouraging participation in review meetings.
8 Lessons learnt are an analysis of what worked and what did not work.
a) Identify at least three aspects of a project you would review.
b) Lessons learnt and passed on to future projects are ‘worth their weight in gold’. Identify typical barriers to implementing the
lessons learnt in future projects.
c) Choose one of these barriers and suggest how to overcome the barrier.

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Key TerMS

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baseline 366 project plan 361
communication plan 371 risk 369
contingency plan 370 risk breakdown structure (RBS) 369
critical path method (CPM) 364 risk management 369
estimating 367 risk register 371
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guesstimate 368 schedules 362
milestones 364 scope creep 356
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network scheduling 363 scope statement 356
nodes 363 stakeholder analysis 359
per cent complete rules 374 stakeholders 358
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project activity 362 work breakdown structure (WBS) 361

project life cycle 356 work package 362
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Summary
LO 13.1 Discuss the value of careful project scope and stakeholder definition.
Scope definition identifies the project scope, stakeholders, the limit of the project manager’s responsibilities,
reporting requirements, the relationship of the project to other projects, and the availability of resources. Clear
scope definition, stakeholder analysis and project documentation enhances understanding by all stakeholders
of their roles, responsibilities and project start and end dates.

LO 13.2 Develop project plans to determine what a project will entail, when it will be scheduled, who will be
involved, what quality level will be maintained and what the budget will be.
Effective project planning clearly defines the project, determines the work breakdown structure, develops
the project network schedule, identifies resources, develops a budget, identifies risk and creates a project
communication plan. Good planning enables the person(s) approving the project and those undertaking the
work to understand the planned approach to each phase of the project life cycle.

LO 13.3 Outline the steps to administering and monitoring a project effectively.

Project managers must initiate contact, collaborate, facilitate teamwork and adapt to changing circumstances.
They communicate responsibilities and project requirements in face-to-face contact, written reports and records.

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 CHAPTER 13 Manage projects 379

They implement and monitor plans and controls for managing finances, resources and quality. Controls facilitate
work in accordance with the overall project plan and assure deliverables meet expectations.

LO 13.4 Explain the importance of finalising deliverables and reviewing project processes, outcomes and lessons
learnt from the project.
The closing phase of a project confirms completion of the deliverables and transfer of them to the project sponsor.
Closure-related activities and deliverables such as review, lessons learnt, completion report and training must be
finalised before a project is deemed closed. A project is complete after all project plan activities are completed,
consistent with established success criteria, approved and accepted to the satisfaction of the project sponsor.

Review questions
1 List the major phases of project life cycle.

2 a) Why is it necessary to identify all stakeholders in the project definition stage?

b) Detail three steps to follow as you analyse project stakeholders.

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c) What are the benefits of stakeholder analysis?

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3 Explain how determination of guidelines and explicit boundaries at the beginning of a project can minimise

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and/or resolve issues over the project life cycle.

4 List the elements in a project plan.

5 a)  How does a work breakdown structure aid a project manager?

b) What is a work package?
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6 a)  What is the purpose of network scheduling?
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b) Differentiate predecessor, successor and concurrent activities.

7 What is the purpose of a PERT chart?

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8 What is the purpose of the critical path method?

9 What are the benefits of using Gantt or milestone charts in project scheduling?
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10 Define the term ‘project baseline’ and briefly explain its purpose.

11 Briefly outline a four-step process for measuring and evaluating project performance.

12 a)  Identify three types of project costs.

b) Identify typical reasons for discrepancies between budgeted forecasts and actual costs.

13 Compare the benefits of top-down and bottom-up approaches to estimating.

14 Identify two types of resource allocation.

15 a)  What types of risks are identified in a risk breakdown structure?

b) Identify five alternative ways of treating risk.
c) Why should a risk register be included in a project plan?

16 Why is the communication plan a key component of the project plan?

17 Distinguish the technical and sociocultural dimensions involved in the execution of projects.

18 a)  What factors must project managers pay particular attention to when monitoring a project?
b) What advantages does a project manager gain from defining reporting requirements and maintaining records
consistently throughout a project?
c) Differentiate four types of project reports.

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 380 PART 4 Leading and managing operations

19 a)  What are project outcomes reviewed against?

b) What are the reasons for documenting and reporting lessons learnt in the review process?
c) Why is involvement of the project team members and other key stakeholders a key component of the project
review process?

20 Identify typical sections in a project review report.

Working together
Work in small groups.
1 Briefly discuss the factors that enable you to administer and monitor a project effectively.

2 Brainstorm a range of strategies you can use to communicate with and support project team members.

3  xplain why project standards and benchmarks are established and why project performance, achievements
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and outcomes must be recorded.

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4 Develop a briefing paper titled ‘Managing project risk’ for members of a project team. In the briefing paper:

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• define and give examples of risk to a project

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• explain the purpose of the risk breakdown structure
• outline the contingency planning process
• explain the reasons for keeping a risk register.
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Exploring the web
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1 Assess your project management skills by visiting the Mind Tools website at www.mindtools.com/pages/article/
newPPM_60.htm and complete the quiz ‘How Good Are Your Project Management Skills?’.
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2 a)  Visit the website ‘Lessons Learned Purpose and Agenda’ at www.cmu.edu/computing/ppmo/
project-management/life-cycle/closing/lessons/index.html.
b) Develop an agenda for a meeting of the project team and other relevant stakeholders. The purpose of the meeting
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is to capture and report lessons learnt across the project’s life cycle.

Case study 1: Schedule inputs

Bernard has been appointed manager of his company’s new project, ‘Designing a social media marketing campaign’.
Six people have been assigned to the team. Two of the team work flexibly—two days in the company office and three days
of e-work from their home office.
Bernard has completed the project definition phase and is now scheduling the project’s inputs. As he plans the project
schedule he realises he must:
■■ access personal and project calendars to understand working days, shifts and resource availability
■■ refer to the project scope to determine key start and end dates, stakeholder expectations and any constraints
and restrictions
■■ understand the WBS and work packages before he can determine major milestones
■■ identify risks to allocate contingency time to deal with uncertainties
■■ understand resource requirements, available capabilities, experience and constraints, such as public holidays
and vacations, when developing the schedule.

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 CHAPTER 13 Manage projects 381

Bernard is aware he must discuss and consult the scheduling with the team members. He knows the team is busy and
does not want to overwhelm them with emails. Instead he decides to complement regular meetings with face-to-face
discussions on Skype and use instant messaging to deal with quick questions and answers. He also sets up an internal
project blog for sharing ideas, information and feedback.
He has also established a web-based project management system for ongoing project administration and monitoring. The
project team and stakeholders can check the project progress online. Team members can update their tasks online, so the
project plan is always up to date. Everyone is aware of deadlines and resource availability issues can be addressed before
they become major problems.

Questions
1 Critique Bernard’s approach to planning the project schedule. What, if anything, should he have done differently?

2 Evaluate the effectiveness of Bernard’s approach to project communication. What are the likely benefits or costs
of the approach?

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Case study 2: The importance of the project

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review and report

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Gemma, a project manager, will deliver a 10-minute presentation at the monthly meeting. The title is ‘The importance of
reviewing a project and reporting lessons learnt’. The department head has requested she explain the reasons for reviewing
against criteria and detailing lessons learnt.
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The week before the meeting Gemma has Monday and Tuesday off work sick. On her return she is busy ‘catching up’
but realises she has to deliver her presentation the next day. As Gemma has little time to prepare her presentation, she
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decides to speak using the outline from a previous presentation on project planning. This outline provides a summary
about what a project is trying to achieve, a detailed project description of the what, who, why, when and how of the project,
task summaries, and detailed task outlines of task, dates, responsibilities, milestones, checkpoints and the priority (high,
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medium or low) of each action.

After the meeting Gemma’s department head suggests her presentation ‘missed the point’ because it did not cover the
importance of reviewing the project and reporting lessons learnt.
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Questions
 rawing upon the theory you have read about and considered in this chapter, develop an outline Gemma could have
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used for her presentation.

Bibliography
Carnegie Mellon. Lessons Learned Purpose and Agenda, www.cmu.edu/computing/ppmo/project-management/life-cycle/
closing/lessons/index.html, Planning and Project Management Office, PA, n.d., accessed 1 September 2012.
Hartley, Stephen. Project Management: Principles, Processes and Practice, 2nd edn, Pearson Australia, 2008.
Kerzner, Harold. Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 10th edn,
John Wiley & Sons, USA, 2009.
Larson, Erik W. & Gray, Clifford F. Project Management: The Managerial Process, 5th edn, McGraw-Hill Irwin, USA, 2011.
Mind Tools. Critical Path Analysis and PERT Charts, www.mindtools.com/critpath.html, Mind Tools Ltd, 2012, accessed
1 September 2012.

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 382 PART 4 Leading and managing operations

Mind Tools. How Good Are Your Project Management Skills?, www.mindtools.com/pages/article/newPPM_60.htm, Mind
Tools Ltd, 2012, accessed 22 January 2013.
Project Management Institute. What is Project Management?, www.pmi.org/About-Us/About-Us-What-is-Project-
Management.aspx, Project Management Institute, 2012, accessed 17 July 2012.
Tasmanian Government. Getting Started in Project Management, www.egovernment.tas.gov.au/project_management/
getting_started_in_project_management, The Department of Premier and Cabinet, 2010, accessed 1 September 2012.
Thompson, Rachel. Stakeholder Analysis: Winning Support for Your Projects, www.mindtools.com/pages/article/
newPPM_07.htm, Mind Tools Ltd, 2012, accessed 1 September 2012.
Wills, Jerry. Essential Project Management Skills, Taylor & Francis Group, USA, 2010.

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