BSBADM504 Plan and implement administrative systems Assessment Task 2

Assessment Task 2- Project Implement and monitor the modified administrative system

About this assessment

This assessment is about undertaking a project with analysis of a simulated business in order to implement and monitor the modified administrative system related to the unit BSBADM504 Plan and implement administrative systems and its elements and performance criteria.

Performance objective

Candidate is to demonstrate the skills and knowledge required to implement and monitor the modified administrative systems.

Assessment description

This assessment tool requires you to plan for or review the requirements of effective administrative systems and procedures for implementing, monitoring and reviewing the system.

During this activity, the student will have access to the simulated workplace policies/ procedures and documentation. These will be made available to the student by the assessor. The reports, documentation and simulated demonstration that the student develops and the practical activity they participate in will reflect the actual work.

The student will form a policy panel with 2 other students. You may select the students you wish to work with or your trainer/assessor can help form the groups of three students working together.

The practical assessment for this unit is divided into 3 parts. Part A to Part C. You must complete all parts of the assessment.

Assessment instructions

Review policies and procedures of Australian Hardware to analyse administrative systems processes and practices.
Read the following scenario (under assessment activities) and the administrative system you have planned during assessment task 1.
implement and monitor the administrative system completing the following assessment task activities during the allowed assessment time.
The assessment task is due on the date specified by your assessor.
Any variations to this arrangement must be approved in writing by your assessor.
Submit your work with any required evidence attached. See specifications below for details.
Time allowed for the assessment task is 3 hours that includes preparation time.

Assessment task activities

Using Appendix 1: Australian Hardware case study, or an organisation agreed upon with your assessor, you will implement and monitor the administrative system for the organisation. You may conduct any research necessary to complete this task, but any references must be accompanied by a link for verification by your assessor.

It requires you to devise an implementation plan for implementing the new quotation system. After conducting your research and having made recommendations to management about the system you believe the new system should be implemented, they have taken your advice and decided to implement the system you have recommended. They have given you the task to compile an implementation plan for this system.

Note: This assessment task is the second of three assessment tasks, in which you will complete implementation and monitor the modified administrative system for the organisation as the completion part of a total, integrated project.

Complete the steps outlined below.

Activity 1

Identify and develop implementation strategies in consultation with staff

You will need to identify the new procedures that need to be followed to make the system effective, highlighting possible problems that maybe encountered with implementation and putting in place a time line of implementation for the new system.

Activity 2

Encourage staff to participate in all stages of the implementation process

As part of this implementation plan you will be liaising with staff, identifying the involvement staff will play in implementing the new quotation system, assessing staff training needs, communicating the changes to staff about the new system.

Activity 3

Implement system in accordance with organisational and legislative requirements

Collate an implementation plan for the new quotation system that has been approved by management. Your report needs to be professionally presented and address all points listed below.

Activity 4

identify stakeholders regarding implementation and identify costs associated with implementation
explain methods used to consult stakeholders and explain why consultation is important
outline timeframes associated with implementing this system
detail when and how implementation will take place, who will direct this process’
create a timeline of events leading up to implementation including steps that need to be taken prior to implementation
detail staff involvement and staff support given during the process of change, identify the benefits of involving staff in process.

Activity 5

Provide training and support for staff on the use of the new or modified system

identify training requirements factoring in who needs to be involved in the training and the different training needs of staff
detail how and when training would be conducted, factoring in suitable times to train staff and implement the system
document the new procedures associated with the system, detailing step by step each component of the new system and staff member’s responsibilities
write a procedure for staff members on how to use the new system, clearly identifying their responsibility
detail two strategies that could be used to communicate system changes to staff.

Activity 6

Deal with contingencies to ensure minimal impact on users

detail how information will be transferred between the current administrative system and the new system
identify the people involved in the planning and their roles in the system changeover
conduct a risk assessment of the possible issues that maybe encountered with implementing this system and detail ways of dealing with these issues
Identify any Organisational or legislative policies may need to be considered when implementing this new system? (i.e. privacy laws, occupational health and safety, Organisational policies).

Activity 7

Provide solutions to the activity based on the following scenario. Scenario

requires you to monitor the new quotation system that was implemented above. Management have come back to you a 1 month after the new system was implemented with some training issues. You are required to review these issues and provide recommendations and suggestions on how to improve these areas as well as addressing the additional assessment information below.

The issues are:

Two consultants Tim and Jim are not using the new quotation system. They are reverting to the old system using a carbon book.
The office manager Dean has informed you that the owner Jeff feels the old system was better even though he hasn’t used the new system. Jeff trained in the new system a month ago
Several pricing errors have been made by Sarah and Chris when using the new system
Two new staff Sam and Jane have joined the company since training took place a month ago

Activity for scenario

Monitor system for usage, security and output in accordance with organisational requirements

a) First you are to provide appropriate strategies that will assist management to monitor the system and address the following points.

b) identify some strategies management could employ to monitor the use of this new system

determine some methods management could use to identify problems with the system
describe how management could ensure the system is being used properly and to its full potential
highlight methods that could be used to ensure that information collection via this system is secure and identify potential security risks f) detail how you can ensure new staff are trained properly on the system g) identify how new staff members should be trained in the new system h) identify methods of assessing if the system meets the needs of the organisation into the future i) recommend communication methods to inform staff of system changes
j) identify methods of identifying ongoing training needs.

Activity 8

Modify system to meet changing needs in accordance with organisational requirements

provide suggestions about understanding the issues Tim and Jim have with using the new system, and possible reasons why they may not want to use the new system
provide recommendations about overcoming Jeff’s attitude towards the system and outlining recommendations on how Jeff could be assisted to adopt the new system
identify strategies that could be used to modify the new system, decreasing the pricing errors being made by Sarah and Chris
explain your thoughts about how management should proceed after implementing the changes you recommended.

Activity 9

Clearly identify further modifications and notify users.

Activity 10

Monitor staff training needs and train new staff on administrative system.

Specifications to submit

You must:

present your findings in the form of a written report, your report must be presented professionally using a report format and covering all the points listed above
conduct a short presentation to either the assessor or another approved person to outline your findings so far
submit all documentation in the format and within the timeframe agreed with your assessor.

Your assessor will be looking for demonstration of your ability to:

work with relevant personnel and stakeholders to identify administrative system improvements
document necessary requirements or modifications
provide training and support for staff to use the new or modified system
monitor the new system and identify future improvements and staff training needs.
summarise relevant legislative and organisational policies and procedures for reviewing administrative systems

Appendix 1

Simulated workplace - Australian Hardware

Administration Systems

Your client is Australian Hardware Ltd, which has been established since 1921 and has a good reputation for quality in the home improvement and hardware markets. They have 138 stores nationally and employ over 10,000 staff in various roles.

Australian Hardware is now looking to introduce a revolutionary new service, offering to the home improvement and hardware industry, called Tradies to You. The plan is to hire out tradespeople to Australian Hardware customers to do the jobs which the customers may not be able to do, or to fix DIY jobs which went wrong. Having completed some further market and industry research, Australian Hardware believe they are ‘on a winner’ with this service and are very excited to get this off the ground as soon as possible.

You work as the Store Manager for Wollongong store with 5 managers as follows:

Huan Resources Manager – Samuel Gillard
Accountant – Jenny Bosh
Purchasing – Cheng Liew
Sales and Marketing Manager – Jim Smith
Operations Manager - Newton Boston

Given the many tasks required to perform for above sections administrative systems must be used to better manage the recording of information. Your consideration is document management which is the process of handling documents in such a way that information can be created, shared, organized and stored efficiently and appropriately.

There is a move within large organizations to use document management software to help them do this. With the increased storage capacity of servers, these systems may involve using document imaging. While document management software is designed to make handling electronic files more efficient, it doesn’t let you convert paper files into electronic files like document imaging systems do.

The task of determining document needs for an organisation is complex. It will require you to find out the requirements and capabilities of the organisation and to communicate with a wide range of people to:

identify the types of documents required
determine entry, storage and quality needs
determine information technology capability
establish standards

You have identified the types of administrative information and processes required for Australian hardware.

Human Resources – Employee records including start and end dates, wage rates, bank account details, pay runs, policy documents, rosters and attendance, training documents, appraisals
Accounting - The systematic recording, reporting, and analysis of financial transactions of a business. Also includes statistical analysis and measurement (management accounting) .
Purchasing – Supplier records, inventory levels and reports, stocktaking tools, purchase orders, invoices, catalogues
Sales & Marketing – Client databases, CRM, sales leads, market segmentation and geographic analysis, yield and revenue management, commissions
Operations – Daily sales and credit card transactions, customer records, appointments, bookings/reservations, frequency of visits, special requests

You have decided to identify the requirements of modifications to the administrative system through consultation with system users and other stakeholders in accordance with organisational and budgetary requirements

Appendix 2

Administrative systems Policies

Procurement Policy

Application & Scope

This policy shall apply to all Australian Hardware of Wollongong entities.
This policy does not apply to the sale or disposal of Organisation property, assets or services. The disposal of goods, property and assets is covered by a separate policy on the disposal of assets: Refer to the Asset Disposal Policy. Methods of Procurement

The Organisation uses a purchasing system called Basware for creating Purchase Orders and Payments. This system is the preferred method of ordering, except in those situations where it is deemed that petty cash or credit card is a more appropriate and cost-effective method of purchasing.
Goods or services shall be acquired through one of the following options. Refer to the flowchart at Appendix1 to determine the most appropriate method of purchase:
Direct purchase from a company/supplier using cash, credit card or

Basware purchase order; ii. Direct purchase from a company/supplier pursuant to a standing contract;

iii. Written quotations; iv. Call for Expressions of Interest (notify the Procurement Manager); v. Request for Proposal (notify the Procurement Manager); vi. Request for Tender (notify the Procurement Manager).

In deciding the most appropriate method of procurement, Units shall consider three factors:
1. The level of risk that the procurement process poses. Fundamentally, risk shall be understood to mean the extent to which the Organisation is unable to meet the policy purposes and outcomes as outlined in sections 1 and 4 as a consequence of an inappropriate choice of procurement process;
2. The value of the proposed purchase;
3. The possibility of achieving better value and quality by testing the market competitively.

Credit cards

Credit cards are a low-cost and efficient means of purchasing but are not intended as a substitute for the Basware system.

Examples of appropriate credit card use include the purchase of:
1. low value / low risk materials and consumables;
2. travel related expenses, e.g. accommodation, flights, hire cars, meals;
3. petrol for hire cars;
4. subscription renewals;
5. conference registration fees;
6. goods or services where immediate payment is required;
7. purchases over the internet.

PayPal

PayPal is a method of payment that permits a credit card to be attached to the PayPal account. Purchases on PayPal in this regard are effectively treated as a purchase on a credit card.
The Organisation does not maintain a central PayPal account for general use.
PayPal, like credit card purchases, should only be used where other procurement methods are not appropriate.
Where payment by PayPal is required the PayPal account must be set up in the name of the officer responsible for the Organisation credit card attached to the PayPal account.
The PayPal account must be set up with the Organisation officer’s official Organisation email address and not a personal address.
As the PayPal account will be attached to a Organisation credit card the use of the account is subject to the same terms and conditions and policy parameters as normal use of a corporate credit card.
PayPal purchases using corporate credit cards are monitored by Financial Services on a monthly basis. eBay Purchases
All purchases using eBay require the prior approval of the Procurement Manager.
The Organisation does not maintain a corporate eBay purchase account.
Any purchases on eBay will require an account and a Organisation corporate credit attached to that account. The eBay account must be set up in the name of the Organisation officer responsible for the credit card. No eBay account will have Organisation bank details attached to the account.
In determining whether eBay is an appropriate source of supply, the Procurement Manager shall consider factors such as price, insurance, freight, warranty, after sales support, seller’s location, alternative suppliers and any other relevant factors.

Petty cash

Petty cash shall only be used for small value purchases where it is not appropriate to use either Basware or a Corporate Credit Card. Staff member should refer to the Petty Cash Procedures for further guidance.
a) Direct Purchase
Goods/services of low risk, costing less than $5,000 shall be purchased to best advantage without formal written quotations subject to the following conditions:
rates being considered reasonable and consistent with normal market rates for items of a like nature; and,
requirements not being split into components (or a succession of orders for the same goods or service) for the purpose of enabling the goods or service to be obtained under the $5,000 limit.

Direct purchase under a standing contract

Standing contracts shall be used to allocate all or most work of a given type to a dedicated provider for a fixed period, usually two to three years. This usually occurs where the good or service is repeatedly or regularly used and often incorporates bulk discounts for volume and streamlined payment arrangements. The renewal of any standing contract shall be re-considered at the end of the contract period.
For regularly used goods, a standing contract for supply may already exist. It is inefficient to let a new contract where one already exists unless there are significant savings to be gained. Units should check for the existence of such contracts when purchasing a type of item for the first time.
All staff members are encouraged to use Organisation-preferred suppliers in the first instance. If a staff member decides to purchase goods and services from a supplier other than a Organisation preferred supplier, they are required to demonstrate to the satisfaction of the Organisation’s Procurement Manager that either:
1. the alternate supplier can provide the goods or services at a significantly lower cost than the Organisation preferred supplier (written quote required); or
2. the goods or services available from the Organisation preferred supplier are not fit for the purpose required (the decision shall be supported by evidence).

Direct purchase under Government contract:

Where purchases are made under a State Government contract, quotes are not compulsory. However, for comparison purposes it is advisable to obtain

alternative quotations. Pricing for the goods or services must be verified against the State contract price list.

Where the goods or services are not listed on the State Government contract, quotes must be obtained in accordance with the requirements of this policy.

Non-order payments

Staff members are discouraged from making non-order payments without prior approval. The Organisation is not obliged to pay suppliers where a purchase order or prior approval has not been raised.
Non-order payments should only be used in instances where a corporate credit card or purchase order is not practical, and the goods or services are of low value and there is no inherit risk due to safety or supply requirements. Non-order payments should be used for payments of regular services such as utilities (electricity, water, phone, etc.).
Where a non-order purchase needs to be made, a manual invoice entry must be processed using the Basware system immediately after the purchase/receipt of invoice.

Written quotation

For purchases greater than $5,000 but less than $20,000, where practical at least three written quotations should be obtained subject to the following conditions:
1. rates being considered reasonable and consistent with normal market rates for items of a like nature; and
2. requirements not being split into components or a succession of orders, for the same goods or services for the purpose of enabling the goods/service to be obtained under the $20,000 limit.
For purchases greater than $20,000 but less than $100,000, a minimum of three written quotes shall be obtained and shall be based on a written outline of specifications which has been provided to the suppliers.
Three written quotations do not have to be obtained where the goods or services are proprietary (held under patent, trademark or copyright), or are only obtainable from fewer than three suppliers.
For purchases that are considered medium to high risk and/or over $100,000, consideration shall be given to undertaking a Competitive Tendering and Contracting (CTC) process. This shall include documentation of a written brief or an outline of specifications for the purchase.

Expressions of Interest /Request for Proposals (Competitive Tendering and Contracting) Procedures

Expressions of Interest (EOI) and Requests for Proposals (RFP) consist of procedures that are intermediate between obtaining written quotations and seeking tenders. EOI and RFP are generally used to cull an initial field of probable competitors who can provide innovative solutions to leading-edge or emerging issues within a given industry (e.g. a creative or technological solution).
In the case of RFP or EOI, a detailed overview of the product or service concept that is required is prepared and forwarded, usually with a covering letter, to a number of identified suppliers who are invited to submit written proposals. RFP and EOI can be announced in a variety of advertising mediums to achieve greatest exposure to potential contractors and tenderers. Unlike tenders, in this model the Organisation is subsequently able to negotiate variations to the specification with a preferred supplier.
Requests for Proposals and Expressions of Interest shall be used for medium to high risk purchases.

Requests for Tendering (RFT) (Competitive Tendering and Contracting)

For all high-risk purchases over $100,000, Units should use an RFT process unless a case can be made to the approving officer that there is no more than one single provider available or that the risk is so low that an alternative procurement process could be adopted. Exemptions to this requirement shall be sought in writing, with a detailed explanation to the Procurement Manager.
The details of procedures to be followed for Competitive Tendering and Contracting are set out in the Tender Procedure.
All purchase orders, non-order payments and contracts are to be approved in accordance with the Delegations of Authority Policy.

Use of Personal Funds to Buy Goods and Services

The Organisation discourages the use of personal funds to buy goods and services for work, study and research purposes. Staff members, and other individuals who have recourse to Organisation funds, may only use personal funds to buy goods and services if it can be shown that there is no alternative method of purchase, e.g. Basware or corporate credit card.
Staff members and other individuals using personal funds to purchase goods and services for Organisation business shall first seek approval from the appropriate delegated officer before making the purchase. If prior approval is not given, the Organisation is not obligated to reimburse the claimant.
Travel expenses such as air fares and accommodation shall be arranged through the preferred travel supplier (refer to the Travel and Entertainment Policy) and shall be booked and paid for using either the Basware system or corporate credit card. Other incidental expenses shall be purchased in accordance with the Travel and Entertainment Policy.
The purchase of equipment, consumables and other work-related items shall be made using the Basware system, unless a valid reason can be given for an alternative method of purchase.
In the event that use of personal funds cannot be avoided, notwithstanding Point 1 above, reimbursements to staff members and other individuals shall be claimed within two months of the date of the expense, and claims shall not be stockpiled for bulk reimbursement.

Use of Corporate Credit Cards

Corporate Credit Card holders shall adhere to the Corporate Credit Card Policy available on the Intranet.
Purchase order is the preferred method of procurement; however, Corporate Credit Card may be used in appropriate circumstances, e.g. travel, meals when travelling on Organisation business, low value/low risk goods, and to pay for goods and services where immediate payment is required at the point of sale.
Where a Corporate Credit Card is used to purchase goods and services that should have been ordered using the Basware system, the person incurring the expense may be asked to substantiate the reason for the choice of purchase method.
Corporate Credit Card purchases over the internet are acceptable for services such as subscriptions, memberships, licenses and conferences, subject to approval in accordance with the manual of delegations. Other internet purchase requests must be referred to the Procurement Manager for approval, where the following will be taken into consideration:
1. The type of purchase
2. The value
3. The risk
4. Warranty requirements
5. Total cost of transaction e.g. insurance, freight
The Corporate Credit Card shall not be used for cash advances or to purchase assets without prior approval from the Procurement Manager.
Controlled Practices in accordance with this policy apply to the use of credit cards.

Preferred Suppliers

The Organisation has a list of preferred suppliers for the provision of certain goods and services; the Preferred Supplier list is located on the Financial Services intranet site. Where there is a requirement for goods and/or services to be procured from an alternative supplier, the staff member shall substantiate the reason for the decision. Documented evidence, such as a substantially cheaper quote or details of better service provided, shall be attached to the purchase order within Basware or within the Organisation Records Management System.

Addition of New Suppliers

Establishment of a new Preferred Supplier

Where a unit identifies a need for the establishment of a standing agreement with a preferred supplier, the unit should contact the Procurement Manager, Financial Services, requesting consideration to establish such an agreement and to seek confirmation that a preferred supplier arrangement does not already exist for the specific goods and services required.
The method of selection for a new preferred supplier shall be through either Expressions of Interest (EOI), Request for Tender (RFT) or quotations. In deciding the most appropriate method of procurement, units shall have regard to the factors identified in Section 5 above.
Long standing suppliers of goods and services to the Organisation maybe considered for preferred supplier status given the supply history, and approval by the Procurement Manager.
A standing agreement shall include the following terms and conditions: – The preferred supplier shall provide the Organisation with a specified minimum discount for all goods or services purchased;
- Preferential terms of trade, such as net 40 days on a single consolidated invoice and where appropriate the ability to receive orders and send invoices in electronic format;
- Payment via Electronic Funds Transfer;
- Value for money provisions such as the ability to return faulty goods or services, appropriate warranty terms and the provision of adequate service or repair backup.
- All proposed contracts with preferred suppliers shall be reviewed and approved by the Organisation’s Legal Counsel and/or Procurement Manager, prior to execution of the same.

Addition of New Suppliers for one-off purchases

New suppliers may be added to the Organisation Supplier Address Book by submitting to Financial Services a completed New Supplier Form for approval.
In granting approval for such a request, the following factors shall be considered:
The availability of the goods or services from a Organisation preferred supplier or other existing supplier;
The specific purpose for which the goods or services are required.
Under no circumstances shall orders be placed with a supplier prior to the establishment of the supplier in the Organisation’s Supplier Address Book. The Organisation accepts no liability for orders placed in such circumstances.

Engaging Consultants & Contractors

When engaging a consultant or contractor, staff members shall:
1. Comply with this policy;
2. Clearly determine the nature of the services required and justify the requirement;
3. Have the proposal to engage a consultant or contractor approved in accordance with the Delegations of Authority Policy;
4. If applicable, invite and evaluate quotes from suitable providers; and
5. Implement an appropriate contract or agreement.
Where it is likely that there will be a recurring need for consulting or contract services, staff members shall consider the merits of establishing a panel of suitable providers, or a strategic partnership with a preferred provider.
Notwithstanding the previous point, to ensure fairness, transparency and probity, where a strategic relationship with a single or multiple provider/s is established, the arrangement / agreement shall be subject to review on a regular basis, preferably every one to two years during the term. Reviews should also take place prior to extending or renewing the arrangement.
A record of the review must be maintained with contract where possible, this can be in the form of a file note, minutes or other written communication.
All persons engaged in the sourcing of consulting or contractor services shall comply with the Conflict of Interest Policy and complete the Conflict of Interest Declaration form.
Where a consultant is engaged to make recommendations on a course of action that will result in the subsequent procurement of goods or services from a supplier, the consultant shall comply with the Conflict of Interest Policy and complete the Conflict of Interest Declaration form.

Electronic Transactions

As far as is feasible, Units are encouraged to utilise electronic commerce for the transacting of their financial business. In addition to being efficient, electronic transactions provide good audit trails and suppliers can expect reduced turnaround time in the processing of invoices when electronic transactions are the norm.
Units shall strive to place increasing responsibility on suppliers to consolidate invoices for several services into one invoice. The consolidated invoice shall also detail particulars of what goods/services have been supplied, when and to whom.
Units shall make the most use of available information technology to establish a profile of regular purchases in an effort to consolidate a list of potential suppliers of these same goods and services.

Trading Assets

The trading of assets is also an issue to be addressed in providing for "best value" processes; monetary costs may not be the only measure of 'value', staff need to consider the value of any benefit (e.g. association with the Organisation) that the Organisation 'confers' via its association, membership, etc.

Prohibited Practices

Multiple orders, each within verbal quotation limits, which collectively amount to a substantial figure or contract, are not permissible. This is considered to be “order splitting”. Units shall forecast their needs for given services/goods and plan accordingly. Should repeat orders be required that amount to a substantial figure, a properly advertised Competitive Tendering and Contracting process shall be required.
The purchase of goods and services from relatives, business associates or close personal friends is prohibited without the prior approval of the Executive Dean, Head or Director. Refer to section regarding conflict of interest.