Solved: Max Lionel Realty (MLR)

Task 1 Scenarios

Scenario 1

You are the Operations General Manager at Max Lionel Realty (MLR). You are responsible for the day- to-day running of the company. You oversee the coordination of activities that occur within the Residential, Commercial, and Investments branches of the company. You are responsible for overseeing projects which affect operations of the organisation as a whole. You work with the HR manager to coordinate systems and projects to achieve cooperation and coordination across the company.

WHS Incident

A WHS incident recently occurred at the Commercial office of Max Lionel Realty. Although it is the Commercial Manager’s responsibility to investigate WHS incidents, they have not done so. You decide to step in. In accordance with the recently implemented WHS management system you must:

  • investigate incidents
  • complete an incident report
  • perform risk assessment
  • update risk register.
    • The records you create of the incident need to be submitted to the HR Manager (assessor) for storage as per records management policy.
    • Details of the incident
  • Last Wednesday, a client who was running late decided to leave through the emergency exit and stairwell, falling and breaking her wrist.
  • The exit door was blocked by boxes of paper.
  • One of the agents heard calls for help, managed to open the exit and helped the client.
  • Not realising what had happened, or the seriousness of the accident, the agent criticised the client’s high heels, implying that such a thing would never happen to a man: ‘Any sensible woman would take the lift’.
  • The client was humiliated.
  • The client was taken to the Royal Women’s Hospital by ambulance.
  • She is threatening to sue MLR for injuries, loss of income and mental trauma.
  • Another agent noticed a strange odour and an oily substance on the stairwell.
  • This agent reported the incident verbally to the Commercial Realty Manager.
  • This incident has only just become known to the HR manager, who has been contacted by both the client’s lawyer and the Office of the Human Rights Ombudsman.
  • Several incidents in which managers have failed to undertake WHS management system responsibilities have occurred recently. For example, recordkeeping has been incomplete.
  • Consultation with agents, WHS committee meetings have not occurred.
  • The organisation’s original target was to reduce the number of WHS incidents by 25%; however, after initial success, enthusiasm for the system has worn off and incident rates are only just lower than they were when the system was initiated.

Scenario 2

You are the Operations General Manager at Max Lionel Realty. You have recently investigated a serious WHS incident.
You have determined that the incident may represent a systemic breakdown in compliance with the organisation’s WHS management system. This system has only recently been implemented and clearly the requisite practices have not been embedded.

Your legal and ethical responsibility is clear. You have a legal and ethical responsibility as a manager to minimise workplace hazards. Moreover, in accordance with organisational change management processes, you need to ensure organisational support by regularly reviewing compliance and acting immediately to intervene to ensure organisational objectives and minimise risk.

You need to ensure managers are aware of and comply with the following responsibilities under the WHS management system and WHS legislation:

  • consult with agents on WHS issues to continually identify any potential risks
  • regularly conduct WHS committee meetings to address risk across the organisation
  • regularly assess potential workplace hazards
  • act proactively to reduce risk
  • update the risk register.

You have decided to prepare a report to managers to ensure compliance.
Your objective is to ensure a smooth implementation of the WHS management system. Accordingly, you don’t want to single out or embarrass any one manager. Rather, you want to ensure enthusiastic support by underscoring the importance of implementation of the WHS management system with respect to Max Lionel’s mission and organisational goals.
You will need to ensure you demonstrate and support ethical attitudes and practices.

Task 2 Scenarios

Scenario 1

You are the Operations General Manager at Max Lionel Realty (MLR). The CEO, Max Lionel, has asked you to initiate and implement a change strategy to improve organisational culture and ensure ethical and legal compliance of agents. Key outcomes of the strategy will be:

  • development of an ethics charter for the business based on WHS responsibilities and Real Estate Institute of NSW (REINSW) Code of Conduct
  • revisions made to existing policies and procedures to incorporate use of charter by agents
  • training for managers and agents on use of charter, WHS responsibilities and legal/ethical responsibilities.

Previous needs analysis for this strategy has uncovered characteristics and requirements of various groups and stakeholders:

Agents (40)ClientsTenants/wider community
under stress; time-poor highly trained and competent in selling and managing real estate unaware of legal, ethical requirements; just want to please clients even if aware, have no idea how to apply to daily client practice unclear on overall strategic aims of MLR culturally diverse.cynical: e.g. ‘Why do I have to pay attention to MLR’s internal business? I just want them to manage my property’ time-poor not sure of MLR obligations and commitment to best-of- breed client service and ethical practice, REINSW Code of Conduct feel that it’s the agent’s obligation to fill rental/lease properties according to client wishes: e.g. ‘I choose who lives in/leases my property’ culturally diverse.sometimes feel discriminated against on basis of: lifestyle family status cultural background income, etc. residential agents have been rude or insensitive on occasion: e.g. ‘You wouldn’t treat your rich clients or investment partners this way’ do not feel they are adequately consulted residential/commercial agents/clients have let themselves in without consultation inspections are sometimes unannounced feel that the real estate business is crooked culturally diverse.

The following resources are available from preferred suppliers, Ace Consultants:

Human resourcingCost
Developer/writer$120/hr
Advertising and promotions consultant$150/hr
Quality assurance person/editor$120/hr
WHS trainer/facilitator$120/hr
Anti-discrimination trainer/facilitator$120/hr
Mary Stewart (WHS consultant)$150/hr
John Ng (CPA)$150/hr
Pat Lee (Lawyer; anti-discrimination expert)$150/hr
Other resourcing
Off-site training room (catered ) with space for ten people$400/hr
Promotions package: email, social media, trade magazine placements, local newspaper copy$4000

The total budget for the change strategy: $12,000
You will need to:

  • develop a draft action/implementation plan for the implementation of the strategy, including all activities to be undertaken and timelines for entire project
  • develop a draft communications plan for internal and external stakeholders
  • consider resourcing requirements and develop a draft budget
  • consider modes of communication and outline new technologies which would benefit promotion of plan
  • include in action/implementation plan (and communication plan) a meeting with managers as a key part of building support for change strategy and gaining input
  • meet with CEO to approve draft planning documents
  • meet with managers to present draft strategy and gain input.
Manager Residential Realty
● Doesn’t feel adequately consulted.
● Doesn’t understand why managers have not been trained on company mission, objectives, etc.
● Needs training on WHS and ethics.
● ‘My clients don’t like certain religious practices. What am I supposed to do, cut them loose?’
● Suggests that once managers are trained they can train the agents, eliminating the need for external trainers, and building internal company culture of training and coaching.
Manager Commercial Realty
● Doesn’t feel adequately consulted.
● Needs training on WHS and ethics.
● Can train but requests support from management because it’s not an area of expertise.
● Suggests that the company can save money by simply creating some good PR around ethics and skip the actual training. Agents understand that, as a business, we have to talk up ethics, but really, for grownups, it’s just business as usual.
● Ok. If we need to actually follow through with our stated values, then manager disputes need for training rooms. Commercial office has free facilities available. Can seat ten agents. Must be externally catered, however.
Manager Investments
● Doesn’t feel adequately consulted.
● ‘I like to hold information back (like potential conflict of interest) to give me the advantage I need to do business.’
● Can train but also requests support from other managers because it’s not an area of expertise. Suggests managers receive formal training in workplace training and assessment for career development.
● Disputes need for externally provided facilities. As a real estate firm, we have cheaper in-house facilities for promotions. Will cost approximately $2,000.
● Suggests the need to consult with busy agents on training times and perhaps schedule multiple sessions to ensure flexibility and accessibility.

Scenario 2

You are the Operations General Manager at Max Lionel Realty (MLR). You have initiated and begun implementation of a change strategy to improve organisational culture and ensure ethical and legal compliance of agents. Key outcomes of the strategy will be:

  • development of an ethics charter for the business based on WHS responsibilities and REINSW Code of Conduct
  • revisions made to existing policies and procedures to incorporate use of charter by agents
  • training for managers and agents on use of charter, WHS responsibilities and legal/ethical responsibilities.

Managers have now been trained in WHS and ethics. It has been decided that managers will train their agents.

Training objectives for agents


WHS: Identify relevant legislation, standards, codes, etc. Fill out incident reports. Perform risk assessment. Fill in risk register.


Ethics: Identify relevant legislation, standards, codes, etc. Use ethics charter: ensure clients, tenants, etc. are aware of charter
(revised customer service procedures mandate that agents must ensure awareness). Follow REINSW code of conduct: ensure honesty. Act in non-discriminatory manner with clients/tenants.

Managers will be accountable for planning and delivering training, assessing individual competence, periodically reviewing effectiveness of training, and considering ethical and WHS performance as part of periodic agent performance management, in accordance with company policy.
In addition to preferred suppliers, the following costs are associated with resources:

ResourceCost
Managers$120/hr
Training rooms$100/hr
Paper$0.50/sheet
Projector$100/day

All other training resources will be at your discretion and obtained in accordance with the MLR procurement policy.
You will need to:

  • meet with managerial team to discuss training and develop training/information sessions for agents according to agent needs
Manager Residential Realty
Not sure of responsibilities or accountabilities with regard to training. ‘I don’t see how I should be responsible for my agent’s actions. What they do with regard to WHS and ethics is their own business. I don’t ask and I don’t want to know what they do to generate income for the business.’ 15 agents require catering Should suggest and/or demonstrate brainstorming to generate training ideas.
Manager Commercial Realty
Not sure of responsibilities or accountabilities with regard to training.
15 agents require catering. ‘Can I use my sister’s coffee shop to cater the training? She really needs the business. She is much cheaper than Coffeeville, our preferred supplier.’ Should suggest or demonstrate fishbone diagrams/5Whys to determine deep reasons for agents not demonstrating required skills or knowledge (for example feel ethics is incompatible with buying and selling real estate in a competitive market place). Should suggest that training directly address uncovered deep reasons.
Manager Investments
Not sure of responsibilities or accountabilities with regard to training. 10 agents require catering. Suggests investment agents opt out of training because openness may restrict ability to generate profits and be exploited by competitors. Knowledge is power. Should suggest and or demonstrate flowcharting to determine the most effective way to run sessions based on agents’ needs.
  • assign roles for training
  • demonstrate encouragement and support for team and create positive work environment
  • demonstrate innovative approaches
  • encourage innovative approaches to training.
  • prepare budget for team based on stated needs.