SAMPLE. Not for training purposes. Student Workbook. BSBMGT502 Manage people performance. 1 st Edition 2015

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1 Student Workbook BSBMGT502 Manage people performance 1 st Edition 2015 Part of a suite of support materials for the BSB Business Services Training Package

2 Acknowledgement Innovation and Business Industry Skills Council (IBSA) would like to acknowledge HASCOM Pty Ltd for their assistance with the development of this resource. 1 st edition writers: Andrea Wallace/Greg Darcy 2 nd edition revised by IBSA Instructional Designer: David Grubisich Revised for BSBMGT502 by IBSA (2015) Copyright and Trade Mark Statement 2015 Innovation and Business Industry Skills Council Ltd All rights reserved. Apart from any use permitted under the Copyright Act 1968, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise, without written permission from the publisher, Innovation and Business Industry Skills Council Ltd ( IBSA ). Use of this work for purposes other than those indicated above, requires the prior written permission of IBSA. Requests should be addressed to the Product Development Manager, IBSA, Level 11, 176 Wellington Pde, East Melbourne VIC 3002 or sales@ibsa.org.au. Innovation and Business Skills Australia, IBSA and the IBSA logo are trade marks of IBSA. Disclaimer Care has been taken in the preparation of the material in this document, but, to the extent permitted by law, IBSA and the original developer do not warrant that any licensing or registration requirements specified in this document are either complete or up-to-date for your State or Territory or that the information contained in this document is error-free or fit for any particular purpose. To the extent permitted by law, IBSA and the original developer do not accept any liability for any damage or loss (including loss of profits, loss of revenue, indirect and consequential loss) incurred by any person as a result of relying on the information contained in this document. The information is provided on the basis that all persons accessing the information contained in this document undertake responsibility for assessing the relevance and accuracy of its content. If this information appears online, no responsibility is taken for any information or services which may appear on any linked websites, or other linked information sources, that are not controlled by IBSA. Use of versions of this document made available online or in other electronic formats is subject to the applicable terms of use. To the extent permitted by law, all implied terms are excluded from the arrangement under which this document is purchased from IBSA, and, if any term or condition that cannot lawfully be excluded is implied by law into, or deemed to apply to, that arrangement, then the liability of IBSA, and the purchaser s sole remedy, for a breach of the term or condition is limited, at IBSA s option, to any one of the following, as applicable: (a) if the breach relates to goods: (i) repairing; (ii) replacing; or (iii) paying the cost of repairing or replacing, the goods; or (b) if the breach relates to services: (i) re-supplying; or (ii) paying the cost of re-supplying, the services. Published by: Innovation and Business Industry Skills Council Ltd Level Wellington Pde East Melbourne VIC 3002 Phone: Fax: reception@ibsa.org.au ISBN: Stock code: BSBMGT5021W First published: April st edition version: 1 Release date: April 2015

3 Table of Contents Introduction...1 Features of the training program...1 Structure of the training program...1 Recommended reading...1 Section 1 Allocate work...3 What skills will you need?...3 Performance management...4 Consult on work allocation and resourcing Develop performance standards and work plans with employees Develop performance indicators Manage performance management risk Section summary Further reading Section checklist Section 2 Design Performance Management Systems and Assess Performance What skills will you need? Design performance management processes Train participants in performance management Implement performance management: monitoring performance Section summary Further reading Section checklist Section 3 Provide Feedback What skills will you need? Provide ongoing feedback Coach performance Conduct formal, structured feedback sessions Section summary Further reading Section checklist Section 4 Manage Follow Up What skills will you need? Plan performance improvement and development Seek assistance Reinforce excellence... 69

4 Manage poor performance Counsel and discipline individuals Dismiss staff in accordance with legal requirements Section summary Further reading Section checklist Glossary Appendices Appendix 1: Integrated performance management system Appendix 2: Example of a position description template Appendix 3: Example of a risk management plan/risk register Appendix 4: Conducting an appraisal (sample procedure and template) Appendix 5: Skills audit/training needs analysis Appendix 6: Example of a competency rubric for a customer service position Appendix 7: Example of probationary period assessment form Appendix 8: Example of probationary period checklist Appendix 9: Performance appraisal planning checklist Appendix 10: Personal development plan template Appendix 11: Counselling template Appendix 12: Written warning template example

5 Student Workbook Introduction Introduction Features of the training program The key features of this program are: Student Workbook Self-paced learning activities to help you to develop an understanding of key concepts and terms. The Student Workbook is broken down into several sections. Facilitator-led sessions Challenging and interesting learning activities that can be completed in the classroom or by distance learning that will help you consolidate and apply what you have learned in the Student Workbook. Assessment tasks Summative assessments where you can apply your new skills and knowledge to solve authentic workplace tasks and problems. Structure of the training program This training program introduces you to manage people performance. Specifically, you will develop the skills and knowledge in the following topic areas: 1. Allocate work 2. Design performance management systems and assess performance 3. Provide feedback 4. Manage follow up. Your facilitator may choose to combine or split sessions. For example, in some cases, this training program may be delivered in two or three sessions, or in others, as many as eight sessions. Recommended reading Some recommended reading for this unit includes: Aguinis, H., 2012, Performance management, 3rd edn, Pearson Education Limited, Upper Saddle River, New Jersey. Armstrong, M., 2006, Performance management: key strategies and practical guidelines, 3rd edn, Kogan Page, London. Nankervis, A., Compton, R., and Baird, M., 2002, Strategic human resource management, 4th edn, Thomson Learning, Melbourne. Tovey, M., Uren, M.-A. L. and Sheldon, N. E., 2010, Managing performance improvement, 3rd edn, Pearson, Frenchs Forest, NSW. BSBMGT502 Manage people performance 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 1 of 137

6 Introduction Student Workbook Fair Work Ombudsman, 2013, Best practice guide: managing underperformance, available online, Fair Work Ombudsman, viewed December 2014, < PeopleStreme, 2014, What is employee performance management?, PeopleStreme, viewed December 2014, < PriceWaterhouseCoopers, 2008, Managing business performance: the metrics that matter, available online, PriceWaterhouseCoopers, viewed December 2014, < Performance-Metrics-2008.pdf>. Please note that any URLs contained in the recommended reading, learning content and learning activities of this publication were checked for currency during the production process. Note, however, IBSA cannot vouch for the ongoing currency of URLs. Every endeavour has been made to provide a full reference for all web links. Where URLs are not current we recommend using the reference information provided to search for the source in your chosen search engine. 1 st edition version: 1 BSBMGT502 Manage people performance Page 2 of Innovation and Business Industry Skills Council Ltd

7 Student Workbook Section 1 Allocate work Section 1 Allocate work The focus of this section is on allocating work in the context of performance managing people. Section 1 outlines the process of setting work plans and allocating work in consultation with others and in accordance with organisational plans, setting performance standards and measures, and managing risk associated with performance management. Scenario: Allocating work Australian Hardware (a simulated business) is a large and expanding hardware and homewares retailer with approximately 140 stores located across Australia. In its vision statement, Australian Hardware outlines that it intends to lead the hardware and home improvement market in Australia within five years. In order to realise this vision, the organisation will take the following strategic approaches outlined in its business plan: increase sales revenue and gross profit maintain or increase market share control direct and indirect operational costs maintain superior product and service quality standards establish reputation of Australian Hardware as a socially and environmentally responsible company. At Australian Hardware, performance management is implemented from the top levels of management down to the store and team levels. The implementation of performance management is designed to be integrated with other related management functions such as financial control, recruitment, succession planning, risk management, work health and safety, training, etc. to take a unified and holistic approach to the development of individuals and of a high-performing organisation. Australian Hardware simulated business information, including business and operational plans, financial information, and policies and procedures (including performance management) can be located online at < What skills will you need? In order to allocate work in the context of performance management and in accordance with operational and strategic planning, you must be able to: analyse business strategy and operational plans to determine human resources requirements review the external business environment and its likely impact on the organisation s human resources requirements consult line and senior managers to identify human resources needs in their areas BSBMGT502 Manage people performance 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 3 of 137

8 Section 1 Allocate work Student Workbook review the organisation s requirements for diversity in the workforce develop options for the delivery of human resources services that comply with legislative requirements, organisational policies and business goals develop and agree on strategies and action plans for the delivery of human resources services agree on and document roles and responsibilities of the human resources team, line managers, and external contractors. Performance management At the most basic level, performance at work can be described as the behaviour of delivering outputs on time, within budget and according to specification. Tovey and Uren suggest performance relates to the carrying out of a work task, duty, or objective. It is implied that it will be done to a satisfactory level. 1 So what does it mean to manage performance? Armstrong defines performance management as: a systematic process for improving organisational performance by developing the performance of individuals and teams... a means of getting better results from the organisation, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. 2 Performance management is a human resources system, often overseen and administered by a dedicated HR function, which is designed to allow the organisation to meet goals that are set at the individual, team and organisational levels. Goals may derive from a number of important perspectives, including customer satisfaction, efficiency, learning and development and financial goals. In fact, elements of performance management (such as setting targets, developing skills, monitoring performance and taking actions to improve performance) have a direct impact on profitability. A study conducted by Price Waterhouse Coopers 3 in late 2008 of over 400 senior managers in Canada revealed that organisations with high financial performance were 26% more effective in planning, analysing, measuring and managing performance when compared with organisations of low financial performance. 1 M. Tovey and M.-A. Uren, 2006, Managing performance improvement, Pearson Australia, p M. Armstrong, 2006, Performance management: key strategies and practical guidelines, 3rd edn, Kogan Page, p PricewaterhouseCoopers, 2009, Performance management matters: Sustaining superior results in a global economy, PWC Canada, available online, viewed February 2015, < uploads/2010/01/performance-management-matters-report-0609-en.pdf>. 1 st edition version: 1 BSBMGT502 Manage people performance Page 4 of Innovation and Business Industry Skills Council Ltd

9 Student Workbook Section 1 Allocate work Case study: Managing people for profit 4 A 10-year study published by Kravetz in 1996 correlated people management practices with profit performance measures. This study covered over 200 organisations (150 of which were Fortune 500 companies), measured five key indicators of profitability and correlated them with companies with high people management practice scores compared to those with low people management practice scores. Indicator of profitability Companies with high people management practices scores Companies with low people management practices Sales growth 16.1% 7.4% Profit growth 18.2% 4.4% Profit margin 6.4% 3.3% Growth in earnings per share 16.7% 4.7% Growth in total returns 19% 8.8% The practices that predicted company financial success fell into the categories of management style, company culture and goals, organisation structure, communications practices, quality and customer satisfaction, recognition and reward practices, employee development practices, section/promotion practices and job design. Overall, performance management is essential to the sustainable development of capacity within organisations. It has measureable impact on the job satisfaction and commitment of employees and the financial performance of organisations. Let s take a closer look at some of the main performance management concepts, namely, the performance management cycle, including the individual employee s perspective, system components, coordinating performance management processes, and analysing business and strategic planning. The performance management cycle On an individual level, the performance management cycle focuses on the time the employee is with the organisation and is developed by the organisation to achieve their potential and assist the organisation is meeting its goals. The three stages of the cycle are illustrated on the right. Let s look at these three stages in more detail. Plan Review Manage 4 K. Dwyer, Managing people for profit, Change factory, viewed February 2015, < Adapted with permission. BSBMGT502 Manage people performance 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 5 of 137

10 Section 1 Allocate work Student Workbook Plan Review job descriptions, previous performance reports and any relevant awards or codes of conduct. Create individual goals and objectives in consultation with the employee. Ensure a shared understanding exists of the level of performance expected, and how this will be monitored and measured. Ensure goals are measurable and aligned to the organisation s strategic and operational plans. Manage Continually monitor performance and measure results. Develop the employee s performance through ongoing support, training, coaching and feedback. Provide regular feedback to discuss progress towards achieving goals and provide an opportunity to modify or change goals. Review Conduct formal performance appraisals. Review performance results against set objectives. Acknowledge and reward excellent performance. Instigate measures to address poor performance. Identify areas of improvement and possibilities for further training. It is important to view planning, managing and reviewing performance as not only separate stages in a repeating cycle but also as overlapping, integrated and simultaneous aspects of performance management. For example, as part of managing people, you should constantly review performance, adjusting your planning as required. System components A performance management system is made up of many interrelated components. These include: documentation and policy frameworks, for example, performance management policies and procedures planning and goal-setting in accordance with strategic and operational planning and in consultation with affected stakeholders regular monitoring of performance ongoing informal feedback formal feedback in the form of regular performance appraisal, counselling and disciplinary processes, if necessary professional development planning support processes rewards and recognition for performance. 1 st edition version: 1 BSBMGT502 Manage people performance Page 6 of Innovation and Business Industry Skills Council Ltd

11 Student Workbook Section 1 Allocate work These performance system components will be discussed at length in this unit. Integrate performance management processes You will need to integrate performance management systems and processes in order for them to be effective in building performance capability. Effective performance management processes ensure that activities at every level of the organisation are coordinated and align with organisational goals. It is useful to think of performance management as being integrated both vertically linking organisational, departmental, team and individual objectives and capabilities and horizontally linking aspects of HR processes and performance management of people. 5 Importantly, while most organisational goal setting is top-down, goals at each level are best negotiated and agreed upon to ensure employee cooperation; hence vertical integration is two-way (see diagram below). Vision, mission, strategy Operational plans, team/individual work plans Planning Managing Reviewing Rewarding See Appendix 1 for an example of a fully integrated performance management system. Let s look more closely at how performance management can be integrated with strategic and operational planning. 5 M. Armstrong, 2006, Performance management: key strategies and practical guidelines, 3rd edn, Kogan Page. BSBMGT502 Manage people performance 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 7 of 137

12 Section 1 Allocate work Student Workbook Analyse strategic and operational plans In order to develop integrated performance management systems and processes, you will need to analyse business plans, strategic plans and operational plans to understand the organisation. You will need to understand the vision and mission of the organisation, its goals and strategic objectives, its company structure and its operations at all levels in order to coordinate HR and performance management activities and processes that are practical and effective for the organisation. Naturally, different organisations will require different goals, strategies and performance management processes. For example, the strategy of a low-cost airline would, in part, include having a higher proportion of variable costs compared to fixed costs. The performance management system must support the overall strategy of the organisation. In our low-cost airline example, it must reinforce the efforts to keep costs low. This would potentially affect the reward and recognition scheme and the types of key performance indicators (KPIs) used to manage performance and remuneration. Operational plans Operational plans define the day-to-day functioning of the organisation to achieve the strategic goals set by the organisation. The type of business typically defines the types of operational plans developed; however, generally operational plans include: Production and manufacturing How do you produce the product/service that you provide to your customer? Whether it is a product or a service that you are providing, production and manufacturing focuses on how you meet the needs of your customer. Human resources Ensuring you have the right number of employees with the right skills at the right time to produce the products or provide the services to your customers. Processes Having processes in place to produce your product and provide your service. These processes determine requirements with regards to technology, quality, human resource needs, equipment, maintenance, etc. Distribution How do you get your product or service to your customer? Location and facilities Ensuring your operations are located near, and have access to, the facilities required to ensure the success of your business. Equipment Having access to the equipment required to produce your product or service and conduct your business. 6 Performance targets and KPIs for teams and individuals are often set at the operational level on the basis of identifying key operational activities that are seen to drive organisational success. 6 J. Heizer and B. Render, 1996, Production and operations management, 3rd edn, Prentice Hall, New Jersey, p st edition version: 1 BSBMGT502 Manage people performance Page 8 of Innovation and Business Industry Skills Council Ltd

13 Student Workbook Section 1 Allocate work Learning activity: Raising productivity through better performance management Watch the video BSBHRM503A: Raising productivity through better performance management on IBSA s YouTube channel at < Answer the following questions: What changes have recently occurred in the workplace at Callaghan Collision Centre? What are the benefits to employees of the new performance management system? Apart from productivity, what are the other benefits that Callaghan Collision Centre has witnessed? BSBMGT502 Manage people performance 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 9 of 137

14 Section 1 Allocate work Student Workbook Consult on work allocation and resourcing As a manager with responsibility for meeting team or departmental performance objectives and setting work plans for your employees, you will need to consult with a range of stakeholders to allocate work for individuals and determine the human, physical and financial resources available. You may need to consult: HR business partners, for example, for recruitment advice colleagues and specialist resource managers health and safety committees and other people with specialist responsibilities your manager or supervisor other managers, project managers and supervisors your employee is responsible to in addition to yourself employees people from a wide range of social, cultural and ethnic backgrounds, and people with a diverse range of mental and physical abilities. Consultation demonstrates your commitment to considering the needs of all employees senior management, line management, workers and those affected by work allocations and targets and will certainly help acceptance and employee support of performance management processes once it comes time to implement them. Consultation can complicate decision-making, but often results in more engagement and better decision-making and planning at the end of the consultation process. Consultation skills You will need to possess or develop the following essential skills for consultation on work allocation. Interpersonal skills In consultation, it is important to understand how you relate to others within an organisation. Consider the following essential interpersonal skills: Do you demonstrate professional respect? Do you work to foster positive interpersonal dynamics that lead to results? Do you recognise, respond and adapt appropriately to emotions shown by others? Do you respond constructively to feedback? 1 st edition version: 1 BSBMGT502 Manage people performance Page 10 of Innovation and Business Industry Skills Council Ltd

15 Student Workbook Section 1 Allocate work Teamwork skills Technical skills Identifying stakeholders During consultation you will need to work with others as an effective team member, team leader and/or manager. Consider the following essential teamwork skills: Can you build and facilitate teams, e.g. groups for consultation? Do you build support and engagement for team objectives? Do you demonstrate professional respect and respect for rules within teams? Do you share knowledge or hoard it? Can you organise detail and clearly communicate relevant knowledge? Do you use the skills and knowledge of others to their full potential, or try to do everything yourself? Do you work to develop skills and knowledge in others? Knowledge of the process, products and services provided by the workplace. Do you stay abreast of workplace and technological developments? You need to identify all stakeholders who may be impacted by your resourcing and allocation of work to individuals, or who may have some impact on how you will implement work. Stakeholders include everybody who has an interest in performance management processes. To identify stakeholders, list everyone you can think of that is affected by the performance management and work plans of individuals. Mapping stakeholders Once you have identified stakeholders, you may find you have a long list of people that are potentially affected by your performance management processes and allocation of work for individuals. The level of power, interest and influence of these people will vary. For this reason it is important that you complete an assessment to determine the level of consultation required for each stakeholder identified. A stakeholder map records who your stakeholders are and their level of power, influence and interest. A stakeholder map allows you to see who you need to focus on to ensure the successful development and implementation of your work plans and special projects. BSBMGT502 Manage people performance 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 11 of 137

16 Section 1 Allocate work Student Workbook To complete this assessment, you should map out your stakeholders using your knowledge of their level of power (influence) and interest on a power/interest grid like the one below: An individual s position on the grid shows you the actions you will need to take with them: High power, interested people: These are the people you must fully engage with, and make the greatest efforts to satisfy. High power, less interested people: Engage enough with these people to keep them satisfied. Low power, interested people: Keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with operational details and coordinating work. Low power, less interested people: Monitor input from this group of people, but do not bore them with excessive communication. 7 Learning activity: Identify and assess stakeholders Suppose you are planning on allocating work for a special project. Considering your current role, identify one example of a stakeholder for each quadrant on the grid provided. Detail why you have classified this person in this category. Alternatively, research a business or simulated business and imagine you need to consult with various stakeholders to allocate work and develop a work plan in consultation with others. Some examples of simulated businesses can be found online at < 7 MindTools, Stakeholder Analysis: Winning Support for Your Projects, MindTools, viewed September 2014, < 1 st edition version: 1 BSBMGT502 Manage people performance Page 12 of Innovation and Business Industry Skills Council Ltd

17 Student Workbook Section 1 Allocate work Keep satisfied Manage closely Monitor (minimum effort) Keep informed Develop performance standards and work plans with employees In order to allocate work effectively, you will need to develop work plans in consultation with your employees. In addition to being documents that are negotiated to some extent with your staff, work plans need to be developed in accordance with the employee s position description and conform to performance expectations and standards required by the role, operational planning at higher levels, and the values of the organisation. Confirm performance standards Performance standards may be qualitative (descriptive) or quantitative (numeric). Quantitative standards, as measured by KPIs, for example, will be discussed in more detail in the following section. Performance standards are often set out in position descriptions. These describe, in a general way, the types of activities an employee may be expected to carry out on a day-today basis, under what conditions and to what level of proficiency. (An example position description is included in Appendix 2 of this Student Workbook.) Some aspects of organisational roles may be ongoing and therefore difficult to define in terms of timeframed goals, objectives and targets. For example, superior customer service may be essential to achieving strategic objectives. All customer service staff or any employee that makes customer contact may be expected to conduct themselves in accordance with company values and be friendly, courteous and helpful. To assist performance management, job standards should be described in a way to facilitate measurement or observation. Let s look at an example. BSBMGT502 Manage people performance 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 13 of 137

18 Section 1 Allocate work Student Workbook Example: Job standards Answering the telephone The most common ways to describe and measure standards of acceptable performance include: time, accuracy, quantity and quality: Telephones are answered by the third ring. Callers are transferred to correct extensions. Customer service agents are expected to answer at least three enquiries per hour. (time) (accuracy) (quantity) All calls are answered with courteous tone of voice. Greeting includes employee s name, department and How may I help you? (quality) Importantly, job standards do not need to include all types of measures; however, each job standard should be measurable or observable in some way. When allocating work over a set timeframe and in the context of performance management systems, for example, between performance appraisals, you will need to refer to position descriptions or negotiate performance standards. You will need to ensure such standards are compatible with both the employee s position description and operational planning. Set work in in accordance with operational planning Allocating work needs to be negotiated with employees to ensure they agree and understand your performance expectations, and allocated in such a way as to advance the goals of the organisation overall. The easiest way to this is to develop work plans that are explicitly linked to operational planning at higher levels. Consider the following work plan for a customer service employee at Australian Hardware: Operational plan reference Financial Customer satisfaction Employee work plan: Customer service Activity Generate sales revenue through customer interaction. Provide product advice and work to understand and satisfy customer needs. Standard/outputs/targets $10,000/month sales revenue and referrals (quantity). Customer service rating 8/10 (quantity). Use Australian Hardware sales methodology to ask questions and provide solutions (quality). 1 st edition version: 1 BSBMGT502 Manage people performance Page 14 of Innovation and Business Industry Skills Council Ltd

19 Student Workbook Section 1 Allocate work Employee work plan: Customer service Operational plan reference Efficiency Activity Provide quick service, accurate information and operate point of sale terminals. Standard/outputs/targets Less than 5% error rate (accuracy). Complete sales at terminal under three minutes (time). Learning and development Keep up-to-date with product knowledge, particularly new range of homewares products and Australian Hardware s own-brand power tools. Develop sales and service expertise. 20 hours of customer service training per quarter. Remember that every work activity that an employee carries out, no matter how seemingly unimportant, needs to be a part of achieving the aims of the organisation. Misalignment of strategic and operational plans and employee work plans is a sure sign of trouble. At higher planning levels, it is important to determine what activities drive overall success and to ensure that these activities may be easily translated into the work of each individual within the organisation. Learning activity: Allocate work Suppose you are planning on allocating work to an employee for a special project or for ongoing work and: Identify how work is allocated in your organisation, for example, is it specified in organisational performance management policies and procedures? Source organisational work planning templates. Complete the following: Set some provisional activities and standards for work in accordance with the employee s position description. Explicitly link each activity or standard to the organisational, departmental or team operational plan. Plan a session with the affected employee to discuss and revise their work plan based on the employee s input. Alternatively, research a business or simulated business and imagine you need to consult with various stakeholders to allocate work and develop a work plan in consultation with others. Some examples of simulated businesses can be found online at < BSBMGT502 Manage people performance 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 15 of 137

20 Section 1 Allocate work Student Workbook Code of conduct and organisational values In addition to making sure that you allocate work in accordance with organisational planning and position descriptions, you will need to ensure that the employee understands and is able to carry out their work in accordance with any code of conduct, business ethics or legislative requirements that that may apply to their role. More generally, as organisational values are aligned to strategic plans, employees should be made aware of those values. Codes of ethics and codes of values often set out a number of principles that employees must apply to their work. Codes of conduct may be even more specific and prescriptive, than codes of ethics and may be mandated by legislation, or an industry requirement. Industry codes of conduct may include: the Life Insurance Code of Conduct the Environmental Claims in Advertising and Marketing Code Let s look at an example code of ethics/code of conduct: Example: Australian Hardware Code of Ethics Employees and officers of Australian Hardware 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 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 Australian Hardware; avoid the fact or appearance of conflict of interest. Protect the privacy of others in accordance with organisational privacy and recordkeeping policies. How might the above code of conduct apply to the example work plan of the Australian Hardware employee above? 1 st edition version: 1 BSBMGT502 Manage people performance Page 16 of Innovation and Business Industry Skills Council Ltd