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Title / Establish human resource needs of the small business operation
Level / 5 / Credits / 5
Purpose / People credited with this unit standard are able to: assess human resource requirements to establish the business operation; identify potential sources of personnel; evaluate human resource management options; identify employment obligations and responsibilities; plan how work will be allocated and evaluated; and identify staff development needs and establish staff development policies.
Classification / Business Operations and Development > Human Resource Management
Available grade / Achieved
Explanatory notes
Small business enterprises are diverse, and establishment of human resource needs of the small business operation could require consideration of a range of current legislation, such as:
Human Rights Act 1993
Employment Relations Act 2000
Health and Safety in Employment Act 1992
Injury Prevention, Rehabilitation, and Compensation Act 2001
Income Tax Act 2007.
Outcomes and evidence requirements
Outcome 1
Assess human resource requirements to establish the business operation.
Evidence requirements
1.1Competence, skill, and capability requirements are identified in relation to the proposed business operation.
1.2Assessment of the personal capacity of owner, operator, or proprietor to meet identified requirements determines gaps in competence, skill, and capability.
1.3A profile of human resource needs that outlines the requirements of the business operation in relation to identified gaps in competence, skill, and capability is produced.
Outcome 2
Identify potential sources of personnel.
Evidence requirements
2.1Descriptions of personnel needs are established in terms of specifying competencies, skills, and capabilities required.
2.2Personnel needs are estimated in terms of staff numbers, hours of work, and fluctuations in staffing requirements.
2.3Potential human resource options are identified and evaluated for the extent to which they meet business needs.
Rangeoptions may include but are not limited to – owner, operator, or proprietor; co-owners; family members; funders and backers; paid and unpaid staff; full-time, part-time, casual, contract workers, outworkers.
2.4Plans that establish a programme for recruiting and employing personnel are produced to meet established competence, skill, capability, and staffing levels for the business operation.
Outcome 3
Evaluate human resource management options.
Evidence requirements
3.1The mix of staff, method(s) of employment, and form(s) of remuneration are determined in relation to the needs of the business operation.
Rangemix of staff may include but is not limited to – owner, or operator, or proprietor; co-owners; family members; funders and backers; paid and unpaid staff; full time, part time, casual, contract workers, outworkers.
3.2Human resource management options developed are effective for the business enterprise and appropriate for the mix of staff and methods of employment.
Rangeoptions may include but are not limited to – individual job responsibilities and accountabilities; work groups; self-managing teams; autonomous roles.
Outcome 4
Identify employment obligations and responsibilities.
Evidence requirements
4.1Legislation governing employment of staff is identified, and employment conditions are interpreted in relation to the small business operation.
Rangewages, holidays, leave, equal pay, hours of work and shift provisions, health and safety provisions, equity, Equal Employment Opportunities.
4.2Types of employment agreements and methods of establishing employment conditions are identified and interpreted in relation to the small business operation.
Rangecollective employment agreements, individual employment agreements.
4.3Effective personal grievance procedures are developed in accordance with requirements of legislation and circumstances of the business enterprise.
4.4Procedures for settling employment disputes are identified and are interpreted in relation to the circumstances of the small business operation.
Rangenegotiation, mediation, adjudication.
4.5Employment policies are developed to achieve equitable and responsible outcomes for the employer and employees, and effective deployment of human resources in relation to business operations.
Outcome 5
Plan how work will be allocated and evaluated.
Evidence requirements
5.1Assessments of business needs and personnel capability determine the most effective use of available human resources in relation to business operations.
5.2Appropriate descriptions of required work activity are produced to reflect the needs and circumstances of the business enterprise.
Rangejob descriptions, person specifications, employment advertisements.
5.3Mechanisms for enabling personnel to contribute their views on work allocation and evaluation are identified in accordance with the circumstances of the business enterprise.
5.4Work and responsibilities are allocated to individuals on the basis of their expertise in relation to business needs.
5.5Work group and individual responsibilities and levels of authority are defined to enhance clear communication and understanding of performance expectations.
5.6Assessment and appraisal systems appropriate to the business enterprise and staff are identified, and evaluation responsibilities are allocated to relevant people.
Outcome 6
Identify staff development needs and establish staff development policies.
Rangeindividual, workgroup and/or team.
Evidence requirements
6.1Processes for evaluating staff performance and identifying training and development needs are established to contribute to effective performance.
6.2Policies and processes provide opportunities for staff to identify training and development needs, and provide input on performance evaluation.
6.3Development needs of owner, operator, or proprietor are identified in relation to workplace role and enterprise management role.
6.4Policies and processes encourage self-management and professional development of staff, in accordance with business direction and personal preferences of staff.
6.5Policies and processes established are relevant for the small business enterprise, and are within the capacity of the business to resource.
This unit standard is expiring. Assessment against the standard must take place by the last date for assessment set out below.
Status information and last date for assessment for superseded versions
Process / Version / Date / Last Date for AssessmentRegistration / 1 / 22 February 1996 / 31 December 2016
Revision / 2 / 12 May 1999 / 31 December 2016
Revision / 3 / 8 February 2001 / 31 December 2016
Revision / 4 / 12 January 2006 / 31 December 2016
Rollover and Revision / 5 / 22 August 2008 / 31 December 2016
Rollover and Revision / 6 / 17 November 2011 / 31 December 2016
Rollover / 7 / 18 April 2013 / 31 December 2018
Rollover / 8 / 16 April 2015 / 31 December 2019
Review / 9 / 20 July 2017 / 31 December 2019
Consent and Moderation Requirements (CMR) reference / 0113
This CMR can be accessed at
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies to this standard are outlined in the Consent and Moderation Requirements (CMR). The CMR also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
NZQA National Qualifications ServicesSSB Code 130301 / New Zealand Qualifications Authority 2018 / / New Zealand Qualifications Aut