Simulated business: JKL Industries Essay

Business and strategic planning Mission JKL Industries is an Australian owned company selling forklifts, small trucks and spare parts to industry. We deliver value to customers and investors through our highly trained, motivated, and expert workforce. Vision JKL Industries believes in developing and unlocking the potential of its people to allow the company to become the leading supplier of forklifts, small, medium and large trucks in Australia. Company values Performance excellence Value for investors, customers and employees Personal and professional development Diversity Sustainability. Strategic planning Goals Strategic objectives Operational objectives Provide value to investors and owners Increase overall profitability by 10% over next three years Reduce costs through negotiations with suppliers Reduce costs through HR management efficiencies Increase revenue through providing increased customer value Exit underperforming markets; JKL will withdraw from the rental market and close the rental division within the next 18 months HR partners with business to help business achieve financial goals HR completes scan of external conditions and market/industry forces impacting competitiveness and capability development Provide value to customers JKL will continue to sell and service forklifts and expand their market share by 7% within the next 12–18 months Provide quality customer service JKL will expand existing branches to include the sale of medium and large trucks within 18 months HR partners with business to help business meet customer needs HR partners with front line managers to help them meet the needs of customers through motivated, competent and well- equipped staff Develop human potential Provide required training Deliver training to upskill rental employees Recruit Conduct skills audits and needs analysis for all roles to be filled by recruitment strategy Become an employer of choice Provide personal development plans for all employees Provide best in industry programs incentives and HR services Manage performance and adherence to organisational values Complete twice-yearly performance reviews Communicate organisational values and code of conduct Continuously improve operations and management efficiency Monitor performance in all areas of strategy and operational efficiency Monitor management inputs such as completion of reporting and coaching requirements Monitor stock turns of forklifts, trucks, etc. Monitor HR service delivery efficiency Operational plan JKL intends to implement operational plans to realise strategic objectives. Key aspects to operations include human resources, performance management, physical and financial resources and workflow. Human resources The organisation is currently using a HR business partner model with a human resources officer aligned to each of the three key business areas: Sales, fleet rentals, and service. JKL employees over 190 personnel in the following categories as demonstrated in the organisation chart below. The Managing Director reports to a board of directors and is based in the Sydney corporate office, along with the Operations Manager, HR Department and the Finance and Administration team. The HR Manager reports to the operations manager and heads up the HR centres of excellence that include recruitment, learning and development, and employee relations and services. In each of the state-based sites there is a branch office consisting of an office building, warehouse, service department and sales office. The Human Resources Officers (Business Partners) report to both the HR Manager at Head Office and their respective managers in the branches. A summary of human resources at each location appears below: Sydney head office Personnel: 30 full-time and casual sales and customer service people (8 sales consultants; 8 retail sales consultants; 5 mechanics; 3 apprentices, 3 HR officers; 3 administrative assistants Accounts Manager and 2 accountants senior management team (3) + one Branch Manager (Operations Manager, HR Manager, Finance and Administration Manager CEO and managing directors. Branches Each branch employs the following personnel: 30 full-time and casual sales and customer service people (8 sales consultants; 8 retail sales consultants; 5 mechanics; 3 apprentices, 3 HR officers; 3 administrative assistants Branch Manager. Office requirements Sydney Head office Size: 15,000 square metres (~70% space available for sales and rentals; ~25 available for servicing) Large mezzanine office space (occupied by Senior Management Team). Loading bay with large capacity. Branches Average Size: 12,000 square metres (~70% space available for sales and rentals; ~25 available for servicing) Large mezzanine open-plan office space with separate access (was previously rented out to a telemarketing company) Loading bay with large capacity. Operating capital requirements JKL requires approximately 13 million dollars in working capital to sustain the business and ensure it meets all opening and ongoing financial obligations. Operational expenses Wages, salaries $6,000,000 Consultancy fees $150,000 Communication expenses $120,000 Marketing $2,400,000 Premises expenses $3,000,000 Insurance $356,000 Depreciation and amortisation $540,000 Office supplies $180,000 Training $180,000 Total Expenses $12,926,000 Insurance requirements JKL will have to incur costs for business liability insurance. The estimated cost for this requirement is $356,000 per year. Operational workflow Sales 1. Negotiate with suppliers. 2. Receive and warehouse products. 3. Provide service and information to customers. 4. Receive payment. 5. Arrange delivery of items (if required). Rentals 1. Conduct market research to determine needs. 2. Negotiate with suppliers. 3. Receive and warehouse rental products. 4. Provide service and information to rental customers. 5. Receive payment. 6. Arrange delivery of items (if required). Service 1. Conduct market research to determine needs. 2. Negotiate with suppliers. 3. Receive and warehouse service supplies. 4. Provide service and information to service customers. 5. Receive payment. JKL accepts cash, EFTPOS and major credit cards. Credit terms are available for trades. Operating hours JKL operates Monday to Friday from 9 am to 5 pm. JKL will be operational year‑round except federal and state holidays (as they apply to each branch). JKL policies and procedures JKL has a number of policies and procedures to support its core values and to ensure compliance with legislative requirements. Code of conduct JKL Industries acknowledges its role as a responsible corporate citizen. JKL’s success will result not simply from satisfying specific equipment needs for a quality product at reasonable prices, but from conducting its business with integrity and in accordance with the core values of the organisation. Employees and officers of JKL are expected to: Respect and support the core values of the organisation: Performance excellence Value for investors, customers and employees Personal and professional development Diversity Sustainability Respect others and treat others (colleagues, managers, reports, clients, customers and organisational stakeholders) with fairness Act in accordance with relevant legislation, standards and industry codes of practice Act honestly to protect the reputation of JKL; avoid the fact or appearance of conflict of interest Protect the privacy of others in accordance with organisational privacy and recordkeeping policies. Legislative requirements It is company policy to comply in all respects with local/state/federal government legislation. The relevant legislation that needs to be complied with includes: Competition and Consumer Act 2010 Disability Discrimination Act 1992 Equal Employment Opportunity for Women in the Workplace Act 1999 Fair Work Act 2009 Freedom of Information Act 1982 Privacy Act 1988 Racial Discrimination Act 1975 Safety, Rehabilitation and Compensation Act 1988 Sex Discrimination Act 1984 State and territory health and safety legislation JKL’s policy of compliance with legislation requires each employee to understand the legislation relevant to their position. Managers and employees of JKL are expected to conduct their operations in a manner consistent with all relevant legislation. Relevant legislation is available for reference through senior management, HR or via access to the internet. State legislation and summary notes are accessed on state government websites. A guide to accessing federal and state legislation, court decisions, key national and state bodies and research tools is available at: Parliament of Australia, ‘Key internet links on Australian law’, viewed January 2014, . Health, safety and rehabilitation policy The purpose of this policy is to state the organisation’s commitment to reducing and managing health and safety risks, and delivering workers’ compensation and rehabilitation and first aid training. This policy applies to all officers, employees and contractors of JKL. Applicable legislation includes: Safety, Rehabilitation and Compensation Act 1988 (Cwlth) Work Health and Safety Act 2011 (NSW) state health and safety Acts that apply to each branch (check your state’s legislation) Workers’ Compensation Act 1987 (NSW) Workplace Injury Management and Workers’ Compensation Act 1988 (NSW). The JKL health, safety and rehabilitation policy are displayed in all work locations. JKL’s commitment to the work health and safety is further detailed as part of the JKL Work Health and Safety Management Standards. Workplace harassment, victimisation and bullying policy The purpose of this policy is to underscore the organisation’s commitment to the elimination of all forms of bullying and harassment in the workplace. All employees have the right to conduct their work within a fair, supportive, high-performance environment. Harassment, victimisation and bullying in the workplace are illegal and such actions are not tolerated by JKL. Staff members found to be harassing or bullying other members of staff or customers will face disciplinary action ranging from counselling and performance management to summary dismissal. This policy applies to all officers, employees and contractors of JKL. Relevant legislation may include, but is not limited to: Disability Discrimination Act 1992 Equal Employment Opportunity for Women in the Workplace Act 1999 Racial Discrimination Act 1975 Sex Discrimination Act 1984 Anti-Discrimination Act 1977 (NSW). Anti-discrimination and equal opportunity policy The purpose of this policy is to underscore the organisation’s commitment to  the fair treatment of all personnel and customers. JKL Industries values the diversity of its team, clients and communities and respects the rights of individuals and groups to operate in an environment free of discrimination. Access and equity (diversity and anti-discrimination) is fundamental to the operations of JKL. It is embedded in policies, practices and forward planning. JKL recognises the importance of diversity in achieving our vision. JKL understands the business environment and actively assists customers to reach their optimum potential. Our primary objective is to be solution-oriented and focused on customer needs. JKL recognises that valuing diversity is pivotal to achieving its vision. A welcoming, supportive environment will be provided leading to positive learning and employment, and individuals having the opportunity to reach their optimum potential. At JKL, anyone engaged in employment or the provision or receipt of training and/or services has the right to operate in an environment that is free from discrimination on the grounds of: age; breastfeeding; disability; industrial activity; lawful sexual activity; marital status; physical features; political belief or activity; pregnancy; race; religious belief or activity; sex; gender identity; sexual orientation; parental or carer status; employment activity; or personal association with any individuals with these characteristics. Procedures are in place for handling any grievances including complaints of discrimination, unfair treatment or harassment. Complaints will be taken seriously and every effort will be made to resolve them quickly, impartially, empathically and with appropriate confidentiality. Victimisation of complainant/s and witness/es is illegal. Complaints may also be lodged with a relevant government agency or regulatory body. This policy applies to all officers, em ployees and contractors of JKL. Relevant legislation may include, but is not limited to: Disability Discrimination Act 1992 Equal Employment Opportunity for Women in the Workplace Act 1999 Racial Discrimination Act 1975 Sex Discrimination Act 1984 Anti-Discrimination Act 1977 (NSW). JKL is committed to upholding affirmative action, equal opportunity and anti-discrimination legislation. This legislation is detailed at: ‘Legislation’, Australian Human Rights and Equal Opportunities Commission, viewed January 2014, . Privacy policy The purpose of this policy is to outline JKL’s commitment to protecting the right to privacy of both employees and customers. Customer information is treated under the following rules. 1. Collection Organisations must ensure that individuals are aware their personal information is being collected, why, who it might be passed on to and that they can ask the organisation what personal information it holds about them. 2. Use Personal information may not be collected unless it is necessary for an organisation’s activities and must only be used for the purpose it was collected. 3. Data quality Organisations must take steps to ensure that the personal information they collect is accurate, complete and up-to-date. 4. Data security An organisation must take reasonable steps to protect the personal information it holds from misuse and loss and from unauthorised access, modification or disclosure. 5. Openness An organisation must have a policy document outlining its information handling practices and make this available to anyone who asks. 6. Access and correction Generally, an organisation must give an individual access to personal information it holds about the individual on request. 7. Identifiers Generally, an organisation must not adopt, use or disclose an identifier that has been assigned by a Commonwealth government agency. 8. Anonymity Organisations must give people the option to interact anonymously whenever it is lawful and practicable to do so 9. Transborder data flows An organisation can only transfer personal information to a recipient in a foreign country in circumstances where the information will have appropriate protection. 10. Sensitive information Sensitive information (such as about someone’s health, political opinions or sexual preference), may only be collected with the consent of the individual (unless a public interest exception applies). JKL takes care to respect  employees to privacy and fully complies with our obligations under relevant legislation. Employee records are exempt from the Privacy Act. Records include: employee records and personnel files referee reports workplace surveillance and monitoring. Although such records are exempt from the Privacy Act, JKL commits to protecting the privacy of employees through: providing access to own records where available or practicable for correction undertaking not to pass on data to others or external parties except for the strict purposes of undertaking JKL business or without express permission. This policy applies to all officers, employees and contractors of JKL. Relevant legislation may include, but is not limited to: Privacy Act 1988 Privacy Amendment (Private Sector) Act 2000. Recordkeeping policy The purpose of this policy is to outline the organisation’s approach to recordkeeping. At JKL, records management systems are based on developing and implementing recordkeeping policies, procedures, and practices to meet the operational needs of the organisation and that comply with externally imposed standards such as legislation. Implementation strategies for recordkeeping systems include: ensuring the system to meets all of the operational and strategic needs of JKL documenting the system (see procedures) training personnel to create and store records setting standards for recordkeeping and monitoring the use of systems ensuring all legislative requirements are met, including for retention periods. JKL adheres to the Australian and international standard for recordkeeping, AS ISO 15489: 2002 Records Management. This policy applies to all officers, employees and contractors of JKL. Relevant legislation may include, but is not limited to: Privacy Act 1988 anti-discrimination legislation. Recordkeeping procedures File management Create a personal subfolder within the server (using your name as the subfolder name) to hold your day-to-day working files. Do not store company data on your C: drive (i.e. do not save work only to your computer, rather than to the network) unless absolutely necessary. Company data should be stored in the appropriate server drive. Unlike the servers which are backed up automatically, data on your own computer is not backed up and your work may be lost if you experience a system crash. If you use a laptop and require access to files offsite, you will be set up with remote access to server files away from the office. When documents are completed, they should be saved to the appropriate ‘completed work’ folder in your department. Filenames Filename should include authors last name, title of report (or abbreviated title of report), and date of submission. Back-ups  Back-up copies of all electronic files on the server are made twice weekly. If you spend an extended time away from the office network using a laptop, it is your responsibility to ensure local copies of company files are backed up. Vocational education and training, apprenticeships and traineeships policy The purpose of this policy is to underscore JKL’s commitment to developing workforce capability and developing its people. JKL is committed to providing young and new graduates in gaining employment in the industry. Apprentices and trainees are rostered on each shift with at least one vocationally competent person who supervises the apprentice/trainee’s work and performance of duties. JKL directs all clients to the relevant guide to apprenticeships and traineeships and the relevant government websites. This policy applies to all officers, employees and contractors of JKL. Performance management policy The purpose of this policy is to underscore JKL’s commitment to monitoring performance, developing workforce capability and developing its people. Performance reviews should be held twice yearly by managers. Performance  should be monitored against agreed KPIs and feedback provided on a regular basis. This policy applies to all officers, employees and contractors of JKL. Relevant legislation may include, but is not limited to: Privacy Act 1988 anti-discrimination legislation equal employment opportunity legislation.