Assessor Resource

SITXMGT002
Establish and conduct business relationships

Assessment tool

Version 1.0
Issue Date: April 2024


This unit describes the performance outcomes, skills and knowledge required to establish and manage positive business relationships. It requires the ability to use high-level communication and relationship building skills to conduct formal negotiations and make commercially significant business-to-business agreements.

The unit applies to all industry sectors, and to individuals who take responsibility for making decisions about purchasing or marketing activities. They also oversee the maintenance of contracts or agreements. This could include senior operational personnel, sales and marketing personnel, managers or owner-operators of small businesses. Agreements may relate to corporate accounts, service contracts, agency agreements, venue contracts, rate negotiations, preferred product agreements, supply agreements and marketing agreements.

No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Build business relationships.

1.1.Establish relationships in line with organisational requirements and protocols.

1.2.Use effective communication skills and techniques to build business relationships.

1.3.Proactively identify and take up opportunities to maintain regular contact with customers and suppliers.

2. Conduct negotiations.

2.1.Use negotiation techniques in line with professional and organisational protocols to maximise benefits of relationship for all parties.

2.2.Incorporate feedback and input from colleagues into negotiation where appropriate.

2.3.Communicate results of negotiations to appropriate colleagues and stakeholders within appropriate timeframes.

3. Make formal business agreements.

3.1.Confirm agreements in writing according to organisational requirements, using formal contracts where appropriate.

3.2.Obtain approvals for all aspects of formal agreements according to organisational procedures.

3.3.Evaluate and act on the need for specialist advice as required.

4. Foster and maintain business relationships.

4.1.Proactively seek, review, and act upon information needed to maintain sound business relationships.

4.2.Honour agreements within scope of individual responsibility, complying with agreed terms.

4.3.Take account of agreed performance indicators.

4.4.Make adjustments to agreements in consultation with customer or supplier and share information with appropriate colleagues.

4.5.Nurture relationships through regular contact and use of effective interpersonal and communication styles.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

establish and maintain business relationships with at least two of the following:

cooperative partner with organisation

contractor

customer

networks

supplier

conduct formal negotiations, or make and manage agreements and contracts in relation to the two relationships established above, relevant to the specific business context

demonstrate the use of high-level communication and relationship building skills when conducting formal negotiations and making commercially significant business-to-business agreements in the above business relationships.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

commercial context for business relationships in the relevant industry sector and related:

industry structure and interrelationships

sources of supply

distribution and marketing networks

professional networks

opportunities to maintain regular contact with customers and suppliers:

association membership

cooperative promotions

industry functions

informal social occasions

program of regular telephone contact

social media

principles of negotiation, stages in the negotiating process, and different negotiation techniques that can be applied

nature of agreements and contracts in the relevant industry sector and their key role, features and inclusions

key components of contract law at an overview level:

terms and obligations of contract

methods of contractual agreement

exclusion clauses

dispute resolution clause

termination of contracts

other legal requirements that impact negotiations and agreements in the relevant industry.

Skills must be demonstrated in an environment or activity in any industry sector where contracts are negotiated and agreed. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

other people with whom business relationships can be established; these can be:

those in an industry workplace who are assisted by the individual during the assessment process; or

individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.

materials that support the negotiation process:

preparatory facts and statistics

key performance indicators

market information.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Build business relationships.

1.1.Establish relationships in line with organisational requirements and protocols.

1.2.Use effective communication skills and techniques to build business relationships.

1.3.Proactively identify and take up opportunities to maintain regular contact with customers and suppliers.

2. Conduct negotiations.

2.1.Use negotiation techniques in line with professional and organisational protocols to maximise benefits of relationship for all parties.

2.2.Incorporate feedback and input from colleagues into negotiation where appropriate.

2.3.Communicate results of negotiations to appropriate colleagues and stakeholders within appropriate timeframes.

3. Make formal business agreements.

3.1.Confirm agreements in writing according to organisational requirements, using formal contracts where appropriate.

3.2.Obtain approvals for all aspects of formal agreements according to organisational procedures.

3.3.Evaluate and act on the need for specialist advice as required.

4. Foster and maintain business relationships.

4.1.Proactively seek, review, and act upon information needed to maintain sound business relationships.

4.2.Honour agreements within scope of individual responsibility, complying with agreed terms.

4.3.Take account of agreed performance indicators.

4.4.Make adjustments to agreements in consultation with customer or supplier and share information with appropriate colleagues.

4.5.Nurture relationships through regular contact and use of effective interpersonal and communication styles.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

establish and maintain business relationships with at least two of the following:

cooperative partner with organisation

contractor

customer

networks

supplier

conduct formal negotiations, or make and manage agreements and contracts in relation to the two relationships established above, relevant to the specific business context

demonstrate the use of high-level communication and relationship building skills when conducting formal negotiations and making commercially significant business-to-business agreements in the above business relationships.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

commercial context for business relationships in the relevant industry sector and related:

industry structure and interrelationships

sources of supply

distribution and marketing networks

professional networks

opportunities to maintain regular contact with customers and suppliers:

association membership

cooperative promotions

industry functions

informal social occasions

program of regular telephone contact

social media

principles of negotiation, stages in the negotiating process, and different negotiation techniques that can be applied

nature of agreements and contracts in the relevant industry sector and their key role, features and inclusions

key components of contract law at an overview level:

terms and obligations of contract

methods of contractual agreement

exclusion clauses

dispute resolution clause

termination of contracts

other legal requirements that impact negotiations and agreements in the relevant industry.

Skills must be demonstrated in an environment or activity in any industry sector where contracts are negotiated and agreed. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

other people with whom business relationships can be established; these can be:

those in an industry workplace who are assisted by the individual during the assessment process; or

individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.

materials that support the negotiation process:

preparatory facts and statistics

key performance indicators

market information.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Establish relationships in line with organisational requirements and protocols. 
Use effective communication skills and techniques to build business relationships. 
Proactively identify and take up opportunities to maintain regular contact with customers and suppliers. 
Use negotiation techniques in line with professional and organisational protocols to maximise benefits of relationship for all parties. 
Incorporate feedback and input from colleagues into negotiation where appropriate. 
Communicate results of negotiations to appropriate colleagues and stakeholders within appropriate timeframes. 
Confirm agreements in writing according to organisational requirements, using formal contracts where appropriate. 
Obtain approvals for all aspects of formal agreements according to organisational procedures. 
Evaluate and act on the need for specialist advice as required. 
Proactively seek, review, and act upon information needed to maintain sound business relationships. 
Honour agreements within scope of individual responsibility, complying with agreed terms. 
Take account of agreed performance indicators. 
Make adjustments to agreements in consultation with customer or supplier and share information with appropriate colleagues. 
Nurture relationships through regular contact and use of effective interpersonal and communication styles. 

Forms

Assessment Cover Sheet

SITXMGT002 - Establish and conduct business relationships
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

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Date:

Assessment Record Sheet

SITXMGT002 - Establish and conduct business relationships

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: