Assessor Resource

SITXMGT501
Establish and conduct business relationships

Assessment tool

Version 1.0
Issue Date: May 2024


This 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.

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.

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

Prerequisites

Not applicable.

Employability Skills

This unit contains employability skills.



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.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

establish and maintain business relationships over a period of time that allows for the demonstration of interpersonal and relationship building skills

conduct formal negotiations and make and manage agreements and contracts in a specific business context

demonstrate knowledge of industry structure and interrelationships, industry networks, and distribution and marketing networks

demonstrate knowledge of the role and features of contracts in a given business operation or sector.

Context of and specific resources for assessment

Assessment must ensure use of:

other people with whom business relationships can be established

real or simulated sales or operational details for which contracts may be negotiated and agreed

materials that support the negotiation process, such as preparatory facts, statistics, KPIs and market information.

Method of assessment

A range of assessment methods should be used to assess the practical skills and knowledge required to establish and conduct business relationships. The following examples are appropriate for this unit:

direct observation of the individual participating in negotiations

evaluation of negotiation activities undertaken by the individual, including:

planning and preparation

outcomes and reporting

agreements reached

use of case studies to assess application of different techniques to different negotiating scenarios

written or oral questioning to assess knowledge of industry structure and interrelationships, negotiating principles and techniques and legal compliance issues

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:

SITTPPD401 Package tourism products

SITTPPD601 Develop tourism products

SITXINV601 Establish stock purchasing and control systems

SITXMPR403 Plan and implement sales activities

SITXMPR404 Coordinate marketing activities.

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.

Required skills

communication skills to:

conduct negotiations that may be of significant commercial value

establish and nurture ongoing professional relationships

critical thinking skills to evaluate potentially complex internal and external issues that affect professional relationships and business negotiations

initiative and enterprise skills to pro-actively seek opportunities for building business relationships

literacy skills to:

read and interpret potentially complex agreements, conditions and contracts

develop or participate in the development of formal commercial agreements

numeracy skills to evaluate commercial data and cost structures

planning and organising skills to plan activities and initiatives that support professional relationships

problem-solving skills to anticipate and respond to challenges in the negotiation process.

Required knowledge

commercial context for business relationships in the relevant industry sector, including:

industry structure and interrelationships

sources of supply

distribution and marketing networks

professional networks

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

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

key components of contract law at an overview level, including:

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 sector, including consumer protection.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Opportunities to maintain regular contact with customers and suppliers may include:

association membership

cooperative promotions

industry functions

informal social occasions

program of regular telephone contact

social media.

Partiesmay be:

cooperative partners

customers

suppliers.

Negotiation techniques may include:

active listening and questioning

appropriate cultural behaviour

appropriate language

bargaining

clarification of needs of all parties

confirming agreements

developing options

identification of Key Performance Indicators (KPIs), goals and limits

identifying points of agreement and points of difference

nonverbal communication techniques

preparatory research of facts, statistics, KPIs and product usage rates.

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 within appropriate cultural context. 
Build trust and respect in business relationships through use of effective communication skills and techniques. 
Proactively identify and take up opportunities to maintain regular contact with customers and suppliers. 
Conduct negotiations in a professional manner in the relevant cultural context. 
Conduct negotiations in the context of current organisation goals. 
Maximise benefits for all parties through use of established negotiation techniques and in the context of establishing long term relationships. 
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

SITXMGT501 - 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:

Signature:

Date:

Assessment Record Sheet

SITXMGT501 - 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: