Assessment criteria for BSBSMB405Monitor and manage small business operationsIn this document, you will find the foundation of what is required to become competent in this unit. For further information on each element, you can refer to the Assessment Matrix. Included in this document are the elements for the unit, foundation skills, assessment requirements as well as an assessment tool definition list and the crucial observation and third party check lists. As well as all of the areas covered here, each student must also complete all workbook activities, case studies and major activities, where stated, to become competent within this unit.

NOTE – Re-assessment:

Students will have a maximum of two (2) reassessments attempts if competency is not achieved in the first instance.

The final grade of ‘C’ for Competent or ‘NC’ for Not Competent is only given at the completion of the unit of competency when all components or parts of the assessment are graded as ‘S’ for Satisfactory. Unsatisfactory results are marked as NS.

Elements for Competency DemonstrationElements for Competency Assessment:

1. Develop operational strategies and procedures

2. Implement operational strategies and procedures

3. Monitor business performance

4. Review business operations

Performance Evidence:

Evidence of the ability to:

Develop strategies and procedures to successfully manage business operations, including:

o developing an action plan

o identifying risk management procedures

o developing a quality system

o implementing performance measures

o utilising technologies to optimise business performance

Implement and monitor strategies and procedures developed, including:

o analysing and correcting business problems

o reviewing and adjusting the business plan

Record and research business improvements

Make appropriate adjustments to business operations as required.

Foundation Skills:

Reading

Evaluates complex text to determine legislative, regulatory and workplace documentation

Writing

Prepares written reports and workplace documentation that communicate complex information clearly and effectively

Oral Communication

Articulates clearly using specific and relevant language suitable to audience to convey requirements, and employs listening and questioning techniques to confirm understanding

Numeracy

Interprets numerical information to manage performance information and regulate cash flow

Navigate the world of work

Monitors adherence to organisational policies and procedures and considers own role for its contribution to broader goals of the work environment

Appreciates implications of legal and regulatory responsibilities related to own work with specific reference to safety

Get the work done

Reflects on how digital systems and tools are used or could be used to achieve work goals, and begins to recognise strategic and operational applications

Identifies concepts, principles and features of approaches in use in other contexts and considers how these may suit own situation

Develops plans to manage relatively complex, non-routine tasks with an awareness of how they may contribute to longer-term operational and strategic goals

Uses each experience to reflect on how variables impact decision outcomes, and to gain insights into what constitutes ‘good’ judgement and an effective decision in different contexts

Recognises and addresses some unfamiliar problems of increasing complexity within own scope

Knowledge Evidence:

To complete the unit requirements safely and effectively, the individual must:

Summarise relevant industry codes of practice

Explain methods for implementing operation and revenue control systems

Summarise methods for monitoring performance and implementing improvements

Outline work health and safety (WHS) responsibilities and procedures for managing hazards

Identify relevant principles of risk management, including risk assessment

Clarify quality system principles and methods

Summarise relevant performance measures

Discuss role of innovation

Outline systems to manage staff, stock, expenditure, services and customer service

Identify technical or specialist skills relevant to business operations

Assessment Conditions:

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the Management and Leadership – Small and Micro Business field of work and include access to:

Business Equipment And Resources

Relevant legislation, regulations, standards and codes

Relevant workplace documentation

Case studies and, where possible, real situations

Interaction with others

Assessors must satisfy NVR/AQTF assessor requirements.

Links:

Companion volumes available from the IBSA website: http://www.ibsa.org.au/companion_volumes

Any observations and practical assessments must be recorded in the observation checklist. All practical tasks should be demonstrated during the length of the course. As the instructor, you must maintain a record demonstrating the date of the practical activities and any comments relevant to the performance of each student. Where a student is not able to demonstrate competence in a practical observation activity, further questioning should be put in its place.

As the instructor, you could be assessing the student’s literacy, numeracy and language skills, as well as the content and context of his/her answers.

In some cases, you will have to adjust and amend the assessment tools, using different and varied methods (such as oral assessment), to allow students to be assessed according to their needs and abilities.

Assessment Tool DefinitionsAssessment Tool How is it used? What is it?Learner Workbook Activities(Entire completion is required)

Each student should be given a Learner Workbook which will hold a number of activities, both formative and summative, that all need to be completed in conjunction with the appropriate sessions. The PowerPoint, Learner Guide and instructor should provide further information to help with the activities.

Observation/Demonstration(To be completed for each numbered point as stated on the checklist)

An observation should be completed for each of the students by the instructor. If the tasks aren’t everyday actions, a simulated environment is acceptable or a demonstration can be set up. An observation checklist can be found at the end of this document.

Major Activity(Entire completion is required)

A Major Activity is a summative assessment and can be found in the Learner Workbook, after all of the activities are completed. This is an extended piece of summative assessment which should take anywhere between 1-2 hours and every student should complete this work. It is a requirement for each unit to check knowledge and understanding.

Skills and Knowledge Activity(Entire completion is required)

A Skills and Knowledge Activity is a summative assessment and is found before the Major Activity in the Learner Workbook. This should take between 1-2 hours and every student should complete this work. It is a requirement for each unit to check knowledge and understanding of the foundation skills and knowledge evidence.

Third Party(To be completed for each numbered point as stated on the checklist)

A Third Party checklist is very similar to an Observation Checklist in its format, but it can be completed by someone who works with the learner and has witnessed them completing tasks which coincide with the elements of the unit. The checklist can be found at the end of this document.

Case Study(Entire completion is required)

Not all units will have Case Studies but those that do will be clearly stated within the PowerPoint and the Learner Workbook. It will appear as any other activity but it will be named ‘Case Study’ and will provide an example of a possible real life situation for the learner to read, interpret and then answer questions on.

Learner Guide(To be used as an informational guide)

The Learner Guide links with the Learner Workbook as it provides the information given during sessions and more. It can help students to further their knowledge and to also complete the activities.

Evidence Document(Not a necessity for completion of unit but can be used as an aid or to collect further evidence)

The Evidence Document lists all of the Elements and Performance Criteria with an area for written reports etc, to add evidence to the student’s portfolio. It can be used for any of the performance criteria, especially those which may not have been covered by any other assessment tool. The student can circle a number of the criteria that they may feel they need further evidence of or it can be used as a guide for completing further Observations and Third Party reports.

Observation/DemonstrationThroughout this unit, the learner will be expected to show their competency of the elements through observations or demonstrations. The observations and demonstrations will be completed as well as the formative and summative assessments found in the Learner Workbook. An explanation of demonstrations and observations:

Demonstration is off-the-job

A demonstration will require:

Performing a skill or task that is asked of you

Undertaking a simulation exercise

Observation is on-the-job

The observation will usually require:

Performing a work based skill or task

Interaction with colleagues and/or customers

The observation/demonstration will take place either in the workplace or the training environment, depending on the task to be undertaken and whether it is an observation or demonstration. Each task must be observed. You will need to ensure you provide the learner with the correct equipment and/or materials to complete the task. You will also need to inform the learner of the time they have to complete the task; this will once again vary, depending on the task.

Learner should be able to demonstrate they can:

1. Develop operational strategies and procedures

2. Implement operational strategies and procedures

3. Monitor business performance

4. Review business operations

Learners should also demonstrate the following skills:

Reading

Writing

Oral Communication

Numeracy

Navigate the world of work

Get the work done

Observation/Demonstration Checklist

Candidate’s Name

Assessor or Observer’s NameUnit of Competence(Code and Title)

Date of Assessment

Location

Demonstration Tasks

Materials and Equipment

Tasks to be observed, demonstrated or simulated if appropriate

Yes No Comment

1. Develop operational strategies and procedures:Did the learner demonstrate that they could develop an action plan to provide a clear and coherent direction, in accordance with business goals and objectives?

2. Develop operational strategies and procedures:Did the learner demonstrate that they could identify work health and safety (WHS) and environmental issues, and implement strategies to minimise risk factors?

3. Develop operational strategies and procedures:Did the learner demonstrate that they could develop a quality system for the business in line with industry standards, compliance requirements and cultural criteria?

4. Develop operational strategies and procedures:Did the learner demonstrate that they could develop performance measures and operational targets to conform with the business plan?

5. Develop operational strategies and procedures:Did the learner demonstrate that they could develop strategies for innovation, including utilisation of existing, new or emerging technologies, where practicable, to optimise business performance?

6. Implement operational strategies and procedures:Did the learner demonstrate that they could implement systems and key performance indicators or targets to monitor business performance and customer satisfaction?

7. Implement operational strategies and procedures:Did the learner demonstrate that they could implement systems to control stock, expenditure or cost, wastage or shrinkage and risks to health and safety in accordance with the business plan?

8. Implement operational strategies and procedures:Did the learner demonstrate that they could maintain staffing requirements, where applicable, within budget, to maximise productivity?

9. Implement operational strategies and procedures:Did the learner demonstrate that they could carry out provision of goods or services in accordance with established legal, ethical cultural and technical standards?

10. Implement operational strategies and procedures:Did the learner demonstrate that they could provide goods or services in accordance with time, cost and quality specifications, and customer requirements?

11. Implement operational strategies and procedures:Did the learner demonstrate that they could apply quality procedures to address product or service and customer requirements?

12. Monitor business performance:Did the learner demonstrate that they could regularly monitor and review achievement of operational targets to ensure optimum business performance, in accordance with business plan goals and objectives?

13. Monitor business performance:Did the learner demonstrate that they could review systems and structures, with a view to more effectively supporting business performance?

14. Monitor business performance:Did the learner demonstrate that they could investigate and analyse operating problems to establish causes and implement changes as required, as part of the business quality system?

15. Monitor business performance:Did the learner demonstrate that they could amend operational policies and procedures to incorporate corrective action?

16. Review business operations:Did the learner demonstrate that they could review and adjust business plan, as required, to maintain business viability, in accordance with business goals and objectives?

17. Review business operations:Did the learner demonstrate that they could clearly record proposed changes to aid future planning and evaluation?

18. Review business operations:Did the learner demonstrate that they could undertake ongoing research into new business opportunities and adjust business goals and objectives as new business opportunities arise?

The candidate’s performance was:

Not Satisfactory Satisfactory

Further Comments:

Candidate’s Signature

Assessor/Observer’s Signature

Support Questions for observation checklist

Candidate’s Name

Assessor or Observer’s Name

Unit of Competence

(Code and Title)

Date of Assessment

Location

The candidate’s performance was: Not Satisfactory Satisfactory

Client Feedback

Candidate’s Signature

Assessor/Observer’s Signature

Third Party ReportsThe Third Party Report should be completed by a senior member of staff i.e. a supervisor or manager, where possible. The report should cover the points below, with a description to show that the tasks have been witnessed over time, while working with the learner. Examples, times, dates etc. should be included, if possible.

As this unit is about monitoring and managing small business operations, you will need to have witnessed the learner within a working or training environment:

1. Developing operational strategies and procedures

2. Implementing operational strategies and procedures

3. Monitoring business performance

4. Reviewing business operations.

Ticking yes/no next to the tasks is required, as well as an accompanying report.

Third Party Checklist

Candidate’s Name

Assessor or Observer’s Name

Unit of Competence

(Code and Title)

Date of Assessment

Location

Demonstration Tasks

Materials and Equipment

Tasks to be simulated if not witnessed over time: Yes No1. Did the learner develop an action plan to provide a clear and coherent

direction, in accordance with business goals and objectives?2. Did the learner identify work health and safety (WHS) and

environmental issues, and implement strategies to minimise risk factors?

3. Did the learner develop a quality system for the business in line with industry standards, compliance requirements and cultural criteria?

4. Did the learner develop performance measures and operational targets to conform with the business plan?

5. Did the learner develop strategies for innovation, including utilisation of existing, new or emerging technologies, where practicable, to optimise business performance?

6. Did the learner implement systems and key performance indicators or targets to monitor business performance and customer satisfaction?

7. Did the learner implement systems to control stock, expenditure or cost, wastage or shrinkage and risks to health and safety in accordance with the business plan?

8. Did the learner maintain staffing requirements, where applicable, within budget, to maximise productivity?

9. Did the learner carry out provision of goods or services in accordance with established legal, ethical cultural and technical standards?

10. Did the learner provide goods or services in accordance with time, cost and quality specifications, and customer requirements?

11. Did the learner apply quality procedures to address product or service and customer requirements?

12. Did the learner regularly monitor and review achievement of operational targets to ensure optimum business performance, in accordance with business plan goals and objectives?

13. Did the learner review systems and structures, with a view to more effectively supporting business performance?

14. Did the learner investigate and analyse operating problems to establish causes and implement changes as required, as part of the business quality system?

15. Did the learner amend operational policies and procedures to incorporate corrective action?

16. Did the learner review and adjust business plan, as required, to maintain business viability, in accordance with business goals and objectives?

17. Did the learner clearly record proposed changes to aid future planning and evaluation?

18. Did the learner undertake ongoing research into new business opportunities and adjust business goals and objectives as new business opportunities arise?

The candidate’s performance was:

Not Satisfactory Satisfactory

Further comments:

Candidate’s Signature

Assessor/Observer’s Signature

Third Party Evidence

Confidential InformationName of Candidate

RTO:

Unit(s) of Competence

As part of the assessment for the units of competency, we are seeking evidence to support a judgment about the candidate’s competence. As part of the evidence of competence we are seeking reports from the supervisor and other people who work closely with the candidate.

Name of the supervisor:

Workplace:

Address:

Phone:

Do you understand which evidence/tasks the candidate has Yes Noprovided/performed that you are required to comment on?

As the assessor explains the purpose of the candidates Yes Noassessment?

Are you aware that the candidate will see a copy of this form? Yes No

Are you willing to be contacted should further verification of this Yes Nostatement be required?

What is your relationship to the candidate?

How long have you worked with the person being assessed?

How closely do you work with the candidate in the area being assessed?

What is your technical experience and/or qualification (s) in the area being assessed? (Include any assessment or training qualifications.)

Does the candidate:

Perform tasks to the industry standards? Yes No

Managed job tasks effectively? Yes No

Implement safe working practices? Yes No

Solve problems on the job? Yes No

Work well with others? Yes No

Add that to new tasks? Yes No

With unusual or non-routine situations? Yes No

Overall do you believe the candidate conforms to the standard required by the unit of competency on a consistent basis?

Identify any training needs for the candidate:

Any other comments: