Summative Assessments

The summative assessments are the major activities designed to assess your skills, knowledge and performance, as required to show competency in this unit. These activities should be completed after finishing the Learner Guide. You should complete these as stated below and as instructed by your trainer/assessor.

Skills, knowledge and performance may be termed as:

• Skills – skill requirements, required skills, essential skills, foundation skills
• Knowledge – knowledge requirements, required knowledge, essential knowledge, knowledge evidence
• Performance – evidence requirements, critical aspects of assessment, performance evidence.

Section A: Skills activity

The skills activity is designed to be a series of demonstrative tasks that should be assessed by observation (by the assessor or third party, depending on the circumstances).

It will demonstrate all of the skills required for this unit of competency – your assessor will provide further instructions to you, if necessary.

Section B: Knowledge activity (Q & A)

The knowledge activity is designed to be a verbal questionnaire where the assessor asks you a series of questions to confirm your competency for all of the required knowledge in the unit of competency.

Section C: Performance activity

The performance activity is designed to be a practical activity performed either in the workplace or a simulated environment. You should demonstrate the required practical tasks for the unit of competency and be observed by the assessor and/or third party, as applicable to the situation. If the third party is required to observe you, you will need to make the required arrangements with them.

If necessary for the activities, you should attach completed written answers, portfolios or any evidence of competency to this workbook.

Section A: Skills activity

Objective: To provide you with an opportunity to show you have the required skills for this unit.

This activity will enable you to demonstrate the following skills:

• Reading
• Writing
• Oral communication
• Numeracy
• Problem-solving
• Initiative and enterprise

Answer the activity in as much detail as possible, considering your organisational requirements.

1. As a workplace activity (or simulated workplace activity), prepare for, and engage in a workplace negotiation, this may be entirely conducted by you or you may be part of a team that is conducting the negotiation.

This includes demonstrating the following:

• Reading and interpreting information regarding negotiations, agreements (including potentially complex agreements), conditions and contracts
• Developing or participating in developing formal commercial contract agreements
• Verbal communications to participate in negotiations
• Evaluation of commercial data and cost structures in regards to the agreement/contract
• Evaluation of both sides of the negotiations and awareness of maintaining the relationships while resolving issues
• Building on the business relationship for maintaining relations and business.

This activity will need to be observed by the trainer/assessor or third party and documented in the observations and demonstrations checklist document.

Section B: Knowledge activity (Q & A)

Objective: To provide you with an opportunity to show you have the required knowledge for this unit.

The answers to the following questions will enable you to demonstrate your knowledge of:

• Commercial context for business relationships in the relevant industry sector and related sources and networks
• Opportunities to maintain regular contact with customers and suppliers
• Principles of negotiation, stages in the negotiating process, and different negotiation techniques
• 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
• Other legal requirements that impact negotiations and agreements in the relevant industry

Answer each question in as much detail as possible, considering your organisational requirements for each one.

1. Why is it important to understand the commercial context for business relationships, including industry specific needs?

2. How can you maintain regular contact with customers and suppliers (provide 5 or more options)?

3. What are the principles of negotiation, the stages in the negotiation process and the techniques you can use in your negotiations?

4. What types of agreements and contracts may you need to deal with in your business industry and what are their key role, features and inclusions?

5. What are the key components of contract law that you may need to know?

6. What other legal requirements can impact on negotiations and agreements in your business industry?

Section C: Performance activity

Objective: To provide you with an opportunity to demonstrate the required performance elements for this unit.

This activity will enable you to demonstrate the following performance evidence:

• 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

Answer the activity in as much detail as possible, considering your organisational requirements.

1. As a workplace activity (or simulated workplace activity), perform the following:

• Establish and maintain two business relationships for a period of time as designated by your trainer/assessor, these must qualify from the list in the first bullet point above
• In the course of business with your two contacts, conduct formal negotiations, or make and manage agreements and contracts as applicable to the situation
• In negotiations and your business-to-business agreements with your two contacts, use appropriate communication and relationship building skills to promote good working relations.

This activity will need to be observed by the trainer/assessor or third party and documented in the observations and demonstrations checklist document.

Observation/Demonstration Performance Assessment Instrument

(For Trainer/Assessor to Complete)

S = Satisfactory NYS = Not Yet Satisfactory NA =Not Assessed Please tick column
Performance Evidence	S	NYS	NA	Comments/Observations
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.
1. Build business relationships.	S	NYS	NA	Comments/Observations
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.
2. Conduct negotiations
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.
3. Make formal business agreements
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.
4. Foster and maintain business relationships
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.
Knowledge Evidence	S	NYS	NA	Comments/Observations
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.
Assessor Comments:
Assessor declaration:
I confirm that I have observed the Candidate demonstrate the skills associated with the elements, performance criteria, performance evidence, knowledge evidence for assessment and required skills for this unit competently.
Assessor name	Assessor signature	Date

Appendix: Workplace Documentation – for learner

Workplace documents checklist

To demonstrate and support workplace knowledge, workplace documents can be submitted to the assessor or third party. Indicate in the table below the documents that have been provided. Please refer to your trainer/assessor if clarification is required or if you have any further questions on what you are able to provide or use.

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