Unit of competency details

BSBSMB407A - Manage a small team (Release 1)


Usage recommendation:
Is superseded by and equivalent to BSBSMB407 - Manage a small teamUpdated to meet Standards for Training Packages 24/Mar/2015

ReleaseRelease date
1 1 (this release) 18/Apr/2008

Training packages that include this unit

CodeSort Table listing Training packages that include this unit by the Code columnTitleSort Table listing Training packages that include this unit by the Title columnRelease
ACM10 - Animal Care and ManagementAnimal Care and Management 1.0-3.0 
LMF02 - Furnishing Training PackageFurnishing Training Package 6.0-8.1 
FNS10 - Financial Services Training PackageFinancial Services Training Package 1.0-5.1 
AUR12 - Automotive Industry Retail, Service and Repair Training PackageAutomotive Industry Retail, Service and Repair Training Package 1.0-2.1 
CPC08 - Construction, Plumbing and Services Training PackageConstruction, Plumbing and Services Training Package 6.0-9.2 
PSP12 - Public Sector Training PackagePublic Sector Training Package 1.0 
MSF - Furnishing Training PackageFurnishing Training Package 1.0-1.3 
ICT10 - Integrated Telecommunications Training PackageIntegrated Telecommunications Training Package 1.0-3.0 
SFL10 - Floristry Training PackageFloristry Training Package 1.0 
SIS10 - Sport, Fitness and Recreation Training PackageSport, Fitness and Recreation Training Package 1.2-3.1 
CPP07 - Property Services Training PackageProperty Services Training Package 7.0-15.0 
AUR05 - Automotive Industry Retail, Service and Repair Training PackageAutomotive Industry Retail, Service and Repair Training Package 3.0-4.0 
BSB07 - Business Services Training PackageBusiness Services Training Package 5.0-9.0 
WRH06 - Hairdressing Training PackageHairdressing Training Package 2.2 
CUA11 - Live Performance Training PackageLive Performance Training Package 1.0 
CUV11 - Visual Arts, Crafts and Design Training PackageVisual Arts, Crafts and Design Training Package 1.0 
PSP04 - Public Sector Training PackagePublic Sector Training Package 4.1-4.2 
CUA - Creative Arts and Culture Training PackageCreative Arts and Culture Training Package 1.0 
CUV03 - Visual Arts, Craft and Design Training PackageVisual Arts, Craft and Design Training Package 3.0 
SFI11 - Seafood Industry Training PackageSeafood Industry Training Package 1.0-2.2 
LMT07 - Textiles, Clothing and Footwear Training PackageTextiles, Clothing and Footwear Training Package 3.1-4.1 
FDF10 - Food ProcessingFood Processing 1.0-4.1 
RGR08 - Racing Training PackageRacing Training Package 1.0-2.0 

Qualifications that include this unit

CodeSort Table listing Qualifications that include this unit by the Code columnTitleSort Table listing Qualifications that include this unit by the Title columnUsage RecommendationRelease
ICT40510 - Certificate IV in Telecommunications Network PlanningCertificate IV in Telecommunications Network PlanningSuperseded1-2 
SIS40113 - Certificate IV in Community RecreationCertificate IV in Community RecreationSuperseded
CUA40313 - Certificate IV in Dance Teaching and ManagementCertificate IV in Dance Teaching and ManagementSuperseded
AUR50105 - Diploma of Automotive ManagementDiploma of Automotive ManagementSuperseded1-2 
LMF60308 - Advanced Diploma of Furniture Design and TechnologyAdvanced Diploma of Furniture Design and TechnologyDeleted
FDF40210 - Certificate IV in Pharmaceutical ManufacturingCertificate IV in Pharmaceutical ManufacturingSuperseded1-3 
LMF40508 - Certificate IV in Furniture Design and TechnologyCertificate IV in Furniture Design and TechnologySuperseded
AUR40105 - Certificate IV in Automotive ManagementCertificate IV in Automotive ManagementSuperseded1-2 
FNS51511 - Diploma of Credit ManagementDiploma of Credit ManagementSuperseded1-3 
PSP41912 - Certificate IV in Government (School Support Services)Certificate IV in Government (School Support Services)Deleted
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SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  25/Jul/2008 
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Modification History

Not applicable.

Unit Descriptor

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to plan for the management of and to manage staff. It involves industrial relations, staff selection, staff records, induction, training, team development and career planning to enhance business operations through retaining a competent, committed and motivated team in the workplace.

Specific legal requirements apply to the management of a small business.

Application of the Unit

Application of the unit 

This work is undertaken by individuals who operate a small business.

The unit is suitable for existing micro and small businesses or a department in a larger organisation.

Licensing/Regulatory Information

Not applicable.


Prerequisite units 

Employability Skills Information

Employability skills 

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria



1. Develop staffing plan

1.1. Determine staffing requirements  to allow the business to run effectively, in accordance with the business requirements as outlined in the business plan

1.2. Identify and compare the existing skills/competencies of owner/s and staff with business requirements to identify any gaps

1.3. Develop policies and procedures  for owner/s and staff, in accordance with the business plan

2. Recruit, induct, train and retain the team

2.1. Develop job/position descriptions, competencies required and selection criteria to meet the needs of the business

2.2. Judge information obtained from each candidate against specified selection criteria and decide selection in accordance with business needs and legal requirements

2.3. Induct new staff members in accordance with the policies and procedures of the business

2.4. Make team members aware of their responsibilities and performance requirements as soon as practicable and take opportunities to coach team members who are unfamiliar with the procedures of the business

2.5. Develop and implement a staff development program and career paths  based on the requirements of business and staff competencies

2.6. Advertise staff vacancies  appropriately in accordance with staffing plan

3. Comply with INDUSTRIAL RELATIONS obligations

3.1. Clarify workplace rights and obligations of employers and employees, in accordance with legal requirements and codes of practice 

3.2. Counsel staff, if required, in a positive and constructive manner and record outcomes accurately

4. Maintain staff records

4.1. Develop staff records system  to provide timely and accurate information, in accordance with confidentiality, legal and taxation requirements

4.2. Monitor and accurately maintain the system for recording and retrieving personnel and payroll information and seek specialist advice where required

5. Manage staff

5.1. Regularly review contribution and skills of self and other team members to ensure performance is in line with agreed performance measures 

5.2. Monitor and adjust staffing requirements to respond to any changes in tasks and functions required by the business

5.3. Support and encourage staff, and acknowledge and reward their contribution to the business

5.4. Regularly provide opportunities for staff to discuss work related issues

5.5. Develop contingency plans  to cope with unexpected or extreme situations and take appropriate corrective action as required

6. Review team performance

6.1. Develop positive and constructive relationships with and between team members 

6.2. Review and update team objectives in support of business goals on a regular basis in consultation with team members

6.3. Identify strengths and weaknesses of team against current and expected work requirements

6.4. Schedule time, on a regular basis, for team members to review work operations in order to maintain and improve operational efficiency

6.5. Encourage team members to monitor their own performance, suggest improvements and to identify professional development needs, in accordance with personal and business requirements

6.6. Monitor and review staff turnover rate

Required Skills and Knowledge


This section describes the skills and knowledge required for this unit.

Required skills 

  • analytical skills to identify workplace skill gaps
  • coaching skills
  • communication skills to relate to staff
  • conflict resolution skills
  • literacy skills to interpret legal requirements, to compile reports and to prepare a job/position description
  • team building and motivation skills.

Required knowledge 

  • commonwealth, state/territory and local government legislative requirements relating to business operation, especially in regard to occupational health and safety (OHS) and environmental issues, equal employment opportunity (EEO), industrial relations and anti-discrimination
  • OHS responsibilities and procedures for managing hazards
  • relevant industry awards/enterprise agreements
  • staff development and career planning
  • staff counselling, grievance and disciplinary procedures
  • unfair dismissal legislation and procedures.

Evidence Guide


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 following is essential:

  • managing a small team including staff selection, staff records, induction, training and development
  • developing and maintaining team performance to enhance business operations
  • knowledge of relevant legislative requirements affecting business operation.

Context of and specific resources for assessment 

Assessment must ensure:

  • access to relevant documentation
  • candidate's individual circumstances and work in the context of running a small business, are the basis for assessment.

Method of assessment 

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

  • portfolio of evidence including staff policies and records, and contingency plans
  • oral or written questioning to assess knowledge of staff recruitment procedures, staff development and review programs
  • review of job/position descriptions and selection criteria developed
  • review of documentation monitoring and reviewing staff turnover rate.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

  • BSBSMB405A Monitor and manage small business operations.

Range Statement


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.

Staffing requirements  may include:

  • full-time, part-time, permanent, temporary or casual
  • number of staff
  • responsibilities, competencies required
  • self, other owners, family and/or friends
  • sub-contractors or external advisors/consultants
  • time commitment, performance expectations

Policies and procedures  must include:

  • complaint and grievance procedures
  • culturally appropriate entitlements e.g. funeral leave, national/religious days
  • culturally appropriate procedures e.g. how business will enact cultural requirements for relationships between owner/operator, employees and service providers
  • employment conditions, equal opportunity, anti-discrimination, cultural diversity
  • induction and training
  • OHS
  • recruitment and selection
  • performance measures
  • professional development

Staff development program and career paths  may include

  • attendance at courses
  • career planning
  • coaching
  • flexible learning
  • job rotation
  • mentoring
  • on-the-job training
  • professional development
  • staff exchanges
  • succession planning

Advertising staff vacancies  may include:

  • electronic (radio, television and internet)
  • noticeboards
  • print media
  • word-of-mouth

Industrial relations  may include:

  • awards and/or industrial agreements and relevant industrial instruments
  • counselling, dismissal procedures

Legal requirements and codes of practice  may include:

  • award and enterprise agreements and relevant industrial instruments
  • commonwealth, state/territory and local government legislative requirements affecting business operation, especially in regard to OHS and environmental issues, EEO, industrial relations and anti-discrimination
  • relevant industry codes of practice

Staff records system  must include:

  • disciplinary and grievance procedures
  • employee records (including tax file number, remuneration, leave and training records)
  • job/position descriptions
  • OHS record
  • records of taxation and superannuation payments made

Performance measures  may include:

  • overall staff productivity
  • percentage of chargeable hours/days per week
  • performance of key people
  • ratio of direct workers to those who support, supervise or manage them
  • ratio of sales dollars per employee
  • staff morale, work ethic, work satisfaction

Contingency plans  may include:

  • accidents or emergencies
  • environmental issues
  • fluctuating workloads
  • OHS
  • unpredicted customer demand/busy periods
  • unpredicted staff shortages

Team members  may include:

  • employees, trainees/apprentices, sub-contractors or external advisers/consultants
  • owner/s, partners, family members

Unit Sector(s)

Unit sector 

Competency field

Competency field 

Management and Leadership - Small and Micro Business

Co-requisite units

Co-requisite units