The document discusses performance management, highlighting its evolution from early 1900s principles of scientific management to modern practices emphasizing ongoing feedback, coaching, and technology integration. It explores the benefits of performance management for individuals, teams, and organizations, including improved clarity, motivation, and enhanced productivity. Additionally, it emphasizes the importance of collaboration between HR and line managers in effective performance management and outlines the goal-setting process and the significance of the 'what' and 'how' in achieving organizational objectives.

1. PERFORMANCE
MANAGEMENT

2. Activity : True or False - Performance Management (10 mins) (P:35)
Read each statement carefully and determine whether it is True (T) or False (F) statement regarding Performance Management.
No True or False Answer
1 Performance ratings should be based solely on individual performance.
2 Performance ratings should be compared across different teams or departments without any adjustments.
3. Performance appraisals should be based solely on quantitative metrics.
4. Performance Management helps identify training and development needs.
5. Performance Management is primarily focused on identifying and addressing underperformance.
6. Performance Management is only about meeting targets and achieving results.
7. Performance Management is only about evaluating past performance.
8. Performance Management is a time-consuming administrative burden.
9. Performance Management is a subjective process influenced by personal biases.
10. Employee self-assessment is a valuable component of Performance Management.
11. Performance Management is a stand-alone process disconnected from other HR practices.
12. Performance Management contributes to employee engagement and job satisfaction.
13. Performance Management is an individual responsibility, not a team effort.
14. Performance Management is primarily focused on identifying and addressing weaknesses.

3. THE EVOLUTION OF PERFORMANCE MANAGEMENT

4. The Evolution of Performance Management
Early 1900s - 1960s
1960s - 2000s
2000s – Present Now
Taylorism (Efficiency
Movement)
• Frederick Taylor's scientific
management principles.
• Performance was
measured based on
individual output and task
completion with an
emphasis on standardized
procedures and time
studies.
• This era emphasized the
importance of
understanding human
behavior and motivation
in the workplace.
• Performance
management started to
consider factors such as
employee attitudes, job
satisfaction, and
interpersonal
relationships.
Behavioural
Performance Appraisal
and Goal Setting
• The focus shifted towards
formal performance appraisal
systems and goal-setting
processes.
• The introduction of the
Management by Objectives
(MBO) approach emphasized
setting specific, measurable,
achievable, realistic, and
time-bound (SMART) goals.
• Performance appraisals
became formalized
processes.
Modern Approach

5. The Evolution of Performance Management – Now
Now
Modern Approach
• Performance management has evolved to include ongoing feedback and
coaching, rather than relying solely on annual performance appraisals.
• Emphasis is placed on development, and alignment of individual and
organizational goals.
• Technology has played a significant role in automating performance
management processes and enabling real-time monitoring and feedback.
The Modern Approach is to address the challenges faced with traditional performance management
approaches, such as manual paperwork, time-consuming processes, and delayed feedback.
It has improved the effectiveness and efficiency of performance management.

6. Performance Management matters because it bring benefits at various levels.
Why Performance Management Matters?
Individuals
• Improved clarity: Clear expectations
and goals provide employees with a
clear understanding of what is
expected of them.
• Increased motivation: It helps
employees see the connection
between their work and
organizational success, motivating
them to perform at their best.
• Development opportunities:
Feedback and coaching facilitate
employee growth and development,
enhancing their skills and career
prospects.
Teams
• Alignment: It aligns team goals
with the organization's strategic
objectives, promoting a shared
sense of purpose and
collaboration.
• Collaboration: Feedback and
performance discussions
encourage teamwork and
knowledge sharing among team
members.
• Accountability: It holds team
members accountable for their
contributions, fostering a culture
of responsibility and ownership.
Organization
• Enhanced productivity: By setting
clear goals and providing
feedback, it improves individual
and team performance, leading to
increased productivity.
• Continuous improvement:
Regular performance discussions
and evaluations shape a culture of
continuous improvement.
• Retention and engagement: A
robust performance management
process promotes employee
satisfaction, engagement, and
retention.

7. Reflection : How was your experience in Performance Management??
• Based on your own experiences, what are the strengths and limitations of performance
management systems?
• Have you encountered any specific challenges or frustrations with the performance
management exercise?
• What critiques or improvements would you suggest to make performance management
more effective and beneficial for both employees and organizations?

8. Continuous Improvement
• Streamline processes,
automate administrative tasks,
• Provide real-time performance
data and analytics
The Nine Success Criteria of an Effective Performance Management
Clear and Aligned Goals
• SMART goals aligned with
organizational objectives
• Challenging yet achievable
targets for employees
Regular and Ongoing Feedback
• Timely discussions about
performance, progress, and
development opportunities
• Employees feel valued and
involved
Fair and Objective Evaluation
• Transparent and consistent
evaluation criteria
• Objective data and
evidence-based
assessments
Bottom-Line Impact
• Improved organizational
performance and results
Performance Development
• Identify areas for
improvement and
formulate development
plans and goals
Recognition and Rewards
• Recognition of high performers
and their contributions
• Rewards in various forms:
monetary, promotions, public
acknowledgments
Organizational Alignment
• Performance management
aligned with organizational
strategy, culture, and values
Managerial Capability
• Managers equipped with
necessary skills to conduct
Performance Appraisal and
provide feedback

9. Group Activity : Whose role(s) to fulfill these successful criteria of effective PM?
Instructions:
In the table below, identify whose roles primarily fulfill each of the successful criteria for effective performance
management. Choose whether the role is HR, Line Manager or HR and Line Manager together. Provide a brief rationale for
your choice.
Criteria HR Line Manager Rationale
Clear and Aligned Goals
Regular and Ongoing Feedback
Fair and Objective Evaluation
Performance Development
Recognition and Rewards
Organizational Alignment
Continuous Improvement
Managerial Capability
Bottom-Line Impact

10. IMPORTANCE AND PROCESS

11. • Clear Goal Alignment: HR and Line Managers collaborate to align individual
performance goals with organizational objectives, ensuring a unified direction.
• Comprehensive Evaluation: Collaboration enables the design of fair and
objective evaluation processes that consider multiple perspectives.
• Timely Feedback and Development: Joint efforts facilitate regular feedback
and coaching, promoting continuous improvement and employee growth.
• Consistent Application: Collaboration ensures consistent application of
performance management practices across the organization, promoting
fairness and equity.
• Strategic Talent Management: HR and Line Managers work together to
identify and nurture talent, aligning performance with long-term
organizational needs.
The Importance of HR and Line Manager Collaboration in Effective Performance Management
Effective performance management is crucial for optimizing employee performance
and achieving organizational goals. The collaboration between HR and Line
Managers is key to successfully implementing effective performance management
practices:

12. On the other side of the coin, without collaboration
• Misaligned Goals: Without collaboration, goals may lack alignment with
organizational objectives, resulting in wasted efforts and decreased
productivity.
• Biased Evaluation: Absence of collaboration may lead to biased
evaluations, causing employee dissatisfaction and undermining morale.
• Inconsistent Feedback: Without collaboration, feedback may be
inconsistent or delayed, hindering employee development and
engagement.
• Lack of Standardization: Absence of collaboration can result in
inconsistent application of performance management practices, leading
to perceptions of unfairness.
• Talent Management Challenges: Without collaboration, talent
identification and development may suffer, hampering succession
planning and long-term organizational growth.

13. The Annual Cycle of Performance Management
Goal Setting
Ongoing Performance
Monitoring and Feedback
Mid-Year Review
Self-Assessment
Performance
Evaluation
Performance Review
Meeting
Development Planning
Recognition and Rewards
Performance
Calibration

14. Key HR Concepts in Performance Management
By understanding these key HR concepts in Performance Management, Line Managers
can effectively execute their role in driving employee performance, development, and
engagement within their teams:
• What and How
• Goal Setting and Cascading
• Performance Feedback.
• Performance Differentiation
• Performance Review.
• Managing Poor Performance

15. WHAT AND HOW IN PERFORMANCE MANAGEMENT

16. Group Discussion
Situations:
• The Company has recently undergone a strategic shift, but the new objectives and goals have not
been clearly communicated to employees after mid year. There is a lack of clarity regarding the
specific outcomes that employees are expected to achieve.
• The Company is undergoing a restructuring process, but the new roles and responsibilities are not
clearly communicated to the employees.
• The Company sets financial targets for sales teams but does not provide clear guidance on the
strategies or actions required to achieve those targets.
What are the likely consequences of the situation mentioned above?

17. Group Discussion
Situations:
• The Company has defined clear performance objectives, but there is a lack of emphasis on the
expected behaviors and competencies necessary to achieve those objectives. The organization does
not provide guidance on the desired work approach or the values it wants employees to embody.
• The Company focuses solely on achieving sales targets without addressing customer service quality or
employee behavior.
• The Company does not provide clear expectations regarding teamwork and collaboration, focusing
solely on individual performance.
What are the likely consequences of the situation mentioned above?

18. The Importance of What and How in Performance Management
Both aspects are essential for effective performance management as they provide a clear framework
for employees to understand what is expected of them and how they should approach their work.
What
• The objectives, goals, and expectations
that are set for employees. It involves
defining what needs to be accomplished
and the desired outcomes that align with
the organization's strategic objectives.
• It provides clarity and direction to
employees regarding their performance
expectations and the results they are
expected to achieve.
How
• The behaviors, skills and competencies
that employees should demonstrate to
achieve the desired outcomes. It focuses
on the approaches and values that
employees should embody while
performing their tasks and responsibilities.
• It emphasizes the importance of aligning
employees' behaviors with the
organization's values and desired culture.

19. What are the ideal weightage of "What" and "How"?
The ideal weightage of "What" and "How" can vary depending on the specific
context and goals of an organization. Here are some general guidelines:
• Balanced Emphasis: Many experts suggest a balanced approach where
both the "What" and "How" are given equal importance, typically around a
50-50 weightage. This approach recognizes the significance of achieving
results while also focusing on the behaviors and values that drive
sustainable success.
• Results-Driven Focus: In some organizations where achieving specific
outcomes is critical, there may be a higher emphasis on the "What." This
could mean allocating a higher weightage, such as 70% on the "What" and
30% on the "How," to prioritize measurable results and performance
indicators.
• Behavior-Driven Focus: Place a higher emphasis on the "How" by allocating
a larger weightage, such as 60% on the "How" and 40% on the "What." This
recognizes that the right behaviors and cultural alignment are crucial for
sustained success and long-term organizational effectiveness.

20. GOAL SET TING AND CASCADING

21. Goal Setting
Goal setting is a critical component of effective Performance Management.
Effective Goal Setting provides:
• Clear Direction and Focus
• Goals provide a clear direction for individuals and teams, ensuring everyone
is aligned with organizational objectives.
• They help prioritize tasks and efforts, reducing ambiguity and increasing
productivity.
• Motivation and Engagement
• Well-defined goals motivate employees by providing a sense of purpose and
achievement.
• They increase employee engagement and commitment to achieving desired
outcomes.
• Performance Measurement and Evaluation
• Goals serve as measurable benchmarks to assess performance.
• They provide a basis for evaluating progress and identifying areas for
improvement.

22. SMART Goal
SMART goals are a powerful framework for effective goal setting and achievement.
SMART stands for :
• Clearly define the objective or outcome you want to achieve.
• Answer the who, what, where, when, and why of the goal.
• Establish concrete criteria for measuring progress and success.
• Use quantifiable metrics to track your performance.
• Ensure that the goal is realistic and attainable given available resources and
constraints.
• Ensure that the goal aligns with your broader objectives and role or
responsibilities.
• Connect the goal to the larger picture or organizational priorities.
• Set a specific timeframe or deadline for achieving the goal.
• This creates a sense of urgency and accountability.
Specific
Measurable
Achievable
Relevant
Time-bound.

23. SMART Goal
Specific (S)
• Clearly define the objective or outcome you want to achieve.
• Answer the who, what, where, when, and why of the goal.
• Example: Instead of setting a vague goal like "Increase sales," make
it specific like "Increase monthly sales revenue by 10% in Q3."
Measurable (M)
• Establish concrete criteria for measuring progress and success.
• Use quantifiable metrics to track your performance.
• Example: Set a measurable goal such as "Achieve a customer satisfaction
score of 90% or higher in the next survey."

24. SMART Goal
Achievable (A)
• Ensure that the goal is realistic given available resources and constraints.
• Consider your skills, capabilities, and available support.
• Example: Set an achievable goal like "Complete the project within the
allocated budget and timeline while maintaining quality standards."
Relevant (R)
• Ensure that the goal aligns with your broader objectives, role or responsibilities.
• Connect the goal to the larger picture or organizational priorities.
• Example: Align the goal with relevance by setting "Improve cross-functional
collaboration to enhance overall team efficiency and productivity."
Time-bound (T)
• Set a specific timeframe or deadline for achieving the goal.
• This creates a sense of urgency and accountability.
• Example: Establish a time-bound goal like "Launch the new marketing
campaign by the end of the quarter."

25. SMART Goal
You are Commercial
Director of a food
company to strengthen
product portfolio by
developing new
products and market
expansion.
Product Development: Launch 2 new food products in FY23
• Specific: Launch two new food products in FY23.
• Measurable: Track the number of successfully launched new products.
• Achievable: Allocate resources and establish a cross-functional product
development team.
• Relevant: Strengthen the company's product portfolio and cater to evolving
customer preferences.
• Time-bound: Launch the three new food products within the next year.
Market Expansion: Achieve 15% increase in market share by the end of FY23.
• Specific: Achieve a 15% increase in market share.
• Measurable: Track the market share percentage in the identified regional
markets and compare it with the baseline.
• Achievable: Develop targeted marketing and sales strategies also build
partnerships in the identified regions.
• Relevant: Expand the company's customer base, increase revenue streams,
and establish a stronger market presence.
• Time-bound: Achieve the 15% increase within the next 12 months.

26. Group Activity : SMART Goals (15 Minutes)
1. Work in the group.
2. You are given 4 scenarios. Pick 3 scenario and collectively apply SMART criteria
in formulating 3-4 goals related to each scenario.
3. Set a time limit of 5 minutes for each scenario.
4. After the discussion, please appoint a speaker to share the answers to the
whole group.
Scenario 1 You are the Estate Manager of the Palm oil plantation to improve the CPO production and
reduce loses.
Scenario 2 You are a team leader responsible for improving customer service satisfaction levels in your
department.
Scenario 3 You are the General Manager of the Bulking Division to monitor and improve the utilization
of its storage facilities.
Scenario 4 You are the Head of Company in the Printing Division to improve the Financial success of
the company.

27. Most organizations adopt a top-down approach in Goal Setting,
however, some organizations have started involving employees at
various levels in goal setting.
• Top-down approach: Organizational goals are set at the higher
levels of the organization by senior leaders. These goals are then
cascaded down to lower levels, ensuring alignment with
organizational objectives.
• Bottom-up approach involves involving employees at various levels
in the goal-setting process. Employees contribute insights, provide
input, and align their personal goals with the organization's
objectives.
• Effective goal setting can often include a combination of top-down
and bottom-up approaches.
• This collaborative approach leads to better goal clarity, motivation,
and improved performance.
Goal Setting Process: Top-Down and/or Bottom-Up Approach

28. Goal Cascading
Goal cascading is a process that ensures alignment between organizational
goals and individual/team goals. It involves breaking down high-level
objectives into actionable targets at each level of the organization.
Importance of Goal Cascading:
• Alignment: Goal cascading ensures that every individual and team
understands how their work contributes to the overall
organizational objectives.
• Clarity: It provides clear direction and focus, reducing ambiguity
and improving decision-making.
• Accountability: Cascaded goals create accountability at all levels,
as progress and outcomes are linked to the achievement of higher-
level objectives.
• Engagement: Involving employees in the goal cascading process
fosters a sense of ownership and engagement.

29. Steps for Effective Goal Cascading
Start with Organizational Goals
• Clearly define the overarching goals and strategic priorities of the organization.
• Ensure they are measurable and aligned with the mission and vision.
Break Down Goals
• Translate the high-level goals into specific objectives and targets for each department/team
• Make sure they are challenging yet achievable and directly linked to the organizational goals.
Communicate and Align:
• Clearly communicate the cascaded goals to all levels of the organization.
• Ensure everyone understands how their team goals contribute to the overall success
Customize
• Customize goals to reflect the unique roles, responsibilities, and capabilities of each
individual or team.

30. Examples of Goal Cascading – Commercial Function
Organizational Goal: Increase overall revenue by 15% in FY 23
Cascaded Goals:
Sales Director Achieve a 15% increase in total revenue for the organization's commercial division.
Rationale: The commercial director oversees the overall revenue generation for the organization and is
responsible for driving strategic initiatives and coordinating sales efforts to meet the revenue target.
Sales Manager Attain a 15% increase in sales revenue for their assigned sales region/portfolio*
Rationale: The sales manager is responsible for managing and motivating the sales team to achieve sales
targets within their assigned region/portfolio, contributing to the overall revenue increase.
Sales Representative Increase individual sales revenue by 15% compared to the previous year.
Rationale: Sales representatives play a vital role in generating revenue through direct sales efforts. By setting
individual KPIs tied to revenue growth, they contribute to the overall goal of increasing overall revenue

31. PERFORMANCE FEEDBACK

32. Performance Feedback
• Performance feedback is a vital process in the workplace
that involves providing specific information to individuals
about their performance, with the goal of improving
future performance.
• Performance feedback can be positive when it tells people
that they have done well, constructive feedback when it
provides guidance on how to do better and negative when
it tell people that they have done badly.
• It aims to help individuals understand their strengths,
areas for improvement and making meaningful progress.
• Effective performance feedback reinforces effective
behaviour and indicates where and how behaviour needs
to improve and change.

33. The Nature of Performance Feedback
There are 3 main nature of Performance feedback : Positive, Constructive and Negative:
Positive
• Recognizes success,
achievements, and positive
outcomes.
• Reinforces and encourages
desired behaviors and
performance.
• Focuses on strengths, capabilities,
and areas of excellence.
• Provides affirmation, recognition,
and appreciation.
Constructive
• Identifies areas for
improvement and growth
opportunities.
• Provides specific suggestions
and actionable
recommendations.
• Focuses on behaviors, actions,
and skill development.
• Facilitates personal and
professional growth.
Negative
• Highlights areas of under
performance or unsatisfactory
results.
• Addresses performance gaps
and areas requiring
improvement.
• Provides feedback on errors,
mistakes, or shortcomings.
• Focuses on specific behaviors or
actions that need adjustment.

34. The Nature of Performance Feedback
Some Examples of the Performance feedback : Positive, Constructive and Negative:
Positive
"Great job on completing the
project ahead of schedule! Your
strong organizational skills and
attention to detail really made a
difference."
"I appreciate your excellent
customer service skills. Your
friendly and helpful approach has
received positive feedback from
clients."
Constructive
"To enhance your presentation
skills, consider using more visuals
and engaging the audience with
interactive elements.“
"Improving your time
management will help you meet
project deadlines more
effectively. Consider prioritizing
tasks and delegating when
necessary."
Negative
"Your frequent absences are
impacting team productivity. It's
important to improve your
attendance and communicate any
planned leaves in advance."
"There have been instances where
your attention to detail has been
lacking, resulting in errors and
rework. Please make sure to double-
check your work for accuracy."

35. Activity : Effective and Ineffective Negative Performance Feedback (5 mins) (P:55)

36. Giving Negative Feedback
When giving performance feedback, it's important to approach the situation with care:
• Be specific and provide examples: Clearly identify the specific behaviors or actions
that need improvement.
• Focus on behaviors, not personal traits: Direct your feedback toward specific
behaviors rather than criticizing the person's character or personality.
• Offer actionable suggestions: Help the individual understand what steps they can
take to address the areas of concern.
• Provide feedback promptly: Timely feedback allows individuals to reflect on their
performance while the details are still fresh in their minds.
• Create a safe and supportive environment: Ensure that the feedback conversation
takes place in a private setting and maintain a respectful and supportive tone
throughout the discussion. Encourage open dialogue and active listening.
• Document the feedback: Maintain a record of the feedback conversation, including
key points discussed and any agreed-upon action steps. This documentation can
serve as a reference for future discussions and performance evaluations.

37. Group Discussion:
When was the last time you provide the Performance Feedback to your
team member?
How was the performance feedback delivered to him/her?
Was the performance feedback provided in a timely manner after the relevant
event or task?

38. When to Provide Performance Feedback?
• Regular Performance Reviews: Many organizations conduct formal performance
reviews on half yearly or quarterly basis.
• Ongoing Feedback: Managers and peers provide feedback on an ongoing basis, either
informally or through regular check-ins.
• Project or Task Completion: Feedback can be given upon the completion of a
significant project or task.
• Milestones and Performance Checkpoints: Feedback may be provided at predefined
milestones or performance checkpoints throughout the year.
• Ad Hoc Feedback: Feedback can also be given on an ad hoc basis when a specific
situation or event warrants it.
Some companies may have more frequent feedback practices, such as weekly or monthly
check-ins, while others may rely primarily on annual reviews.
Performance Feedback is still the under-used Management tool in most organization!!

39. The Consequences of Not Providing Negative Performance Feedback
Giving Negative Performance Feedback is difficult and uncomfortable at time, if
not given several outcomes or situations may arise:
• Lack of Improvement: This may result in a lack of progress or growth in the
team member performance, potentially impacting the productivity and
overall contribution of the team.
• Strained Relationships: It may create tension, misunderstanding, or a
breakdown in communication among the team members.
• Continued Performance Issues: This can lead to repeated mistakes, missed
targets, or subpar results, affecting not only own performance but also the
overall effectiveness of the team.
• Missed Development Opportunities: A team member may miss out on
opportunities to enhance their skills, address weaknesses, and grow in their
role.

40. Addressing Resistance to Performance Feedback
When team members exhibit resistance to negative performance feedback, line managers can
take several steps to address the situation effectively. Here are some key actions they can take:
Understand the Root Causes:
Listen actively and empathetically to their
concerns and Identify underlying issues
Clarify Expectations and
Standards:
Ensure clear understanding of performance
expectations and Provide specific examples and
evidence.
Offer Constructive Guidance and
Support:
Provide guidance and offer resources on
addressing areas for improvement.
Engage in Two-Way Dialogue:
Engage in a collaborative discussion to
understand perspectives and find solutions.
Monitor Progress and Provide
Ongoing Feedback:
Regularly check in, recognize and acknowledge
efforts and achievements.
It's essential for managers
to approach these
situations with patience,
empathy, and a willingness
to understand the team
member's perspective.

41. The Key Principles of Providing Performance Feedback
Timeliness
Provide feedback ideally soon after
the observed performance or
behavior. Prompt feedback allows
for immediate reflection and action.
Specificity
Focus on specific actions,
behaviors, or outcomes to provide
clarity and guidance for
improvement.
Supportive and Respectful
Provide feedback in a supportive
and respectful manner,
maintaining a positive and
professional tone.
Constructive
Feedback should aim at helping
individuals improve their
performance. Emphasize areas for
development while also recognizing
strengths and accomplishments.
Objective and Evidence-Based
Use factual information,
performance data, and observed
behaviors to support your
feedback, ensuring it is fair and
objective.
Clear and Actionable
Providing clear and actionable
recommendations for improvement.
Help individuals understand what they
can do to enhance their performance

42. PERFORMANCE DIFFERENTIATION

43. Group Activity : Performance Differentiation – Easy or Difficult? (10 mins)
Work in your Group to discuss the following questions:
1 What are the general employees’ perception about Performance Differentiation?
2
Share an example of a situation where it can be challenging or difficult to differentiate employees'
performance level. What factors make it difficult?
3
Share an example of a situation where it can be relatively easy to differentiate employees'
performance level. What factors contribute to this ease?
Capture all your thought on the flip chart(s) and Appoint your leaders to share your
group findings.
Performance Differentiation is the process of distinguishing and categorizing employees based on their
individual performance levels. It involves evaluating and assessing employees' job performance to identify high
performers, average performers, and low performers.

44. Performance Differentiation
• The purpose of performance differentiation is to reward top performers, provide
development opportunities for average performers, and address performance
issues for low performers.
• Performance differentiation begins with a comprehensive performance evaluation
process then performance ratings are assigned to employees. It is then used to
differentiate Rewards and Recognition based on the individuals’ performance
• In some organizations, performance differentiation involves ranking employees or
applying a forced distribution model. Ranking involves ordering employees from
highest to lowest based on their performance levels. Forced distribution assigns
employees into predetermined performance categories based on a fixed
percentage allocation, such as top 20% as high performers, middle 70% as average
performers, and bottom 10% as low performers.
• Calibration sessions among managers and HR professionals can help align
performance ratings and ensure consistency across the organization.

45. HR and Line Manager to work collaboratively in Performance Differentiation
By working collaboratively, HR and line managers can uphold fairness and objectivity
in performance differentiation. Ultimately supporting a fair and objective
performance management process:
• Clear Performance Criteria: By having well-defined criteria, both HR and line
managers ensure that performance differentiation is based on objective
measures and standards.
• Consistent Evaluation Processes: Establishing a shared understanding of rating
scales, performance levels, and evaluation methods. This collaboration helps
prevent biases and ensures that performance differentiation is applied
consistently across teams and individuals.
• Data-driven Approach: By relying on concrete data, the evaluation process
becomes more objective and less susceptible to personal biases.
• Calibration and Review: Conducting calibration sessions to review performance
ratings and ensure fairness across the organization by minimizing discrepancies
and ensuring that performance differentiation is applied consistently.

46. The Rating Scale
Based on the survey conducted by CIPD
(n=506, various industries), the number of
rating level used in the industry wide are as
follows:
The no. of rating
levels used:
%
3 6%
4 28%
5 47%
6 17%
The key components of effective rating scales include:
• Clear and well-defined descriptors for each
performance level to promote consistency and
objectivity in evaluations.
• Adequate Number of Points: The number of rating
points on a scale should strike a balance between
simplicity and granularity
• Appropriate Scale Labels: The labels should accurately
reflect the performance levels being assessed and be
easily understandable.
• Aligned understanding: Shared understanding and
consistent application of the scale across evaluators
and teams.
• Regular Review and Revision: Rating scales should be
regularly reviewed and updated to ensure their
continued relevance and effectiveness.

47. I really want to avoid being labeled tough or being unfair, I will just assign all the employees average
rating?
If I rate some employees as poor or under-performance, I need to spend even more time to manage
them. Why bother?
It is near impossible for my team to perceive the performance differentiation decisions as fair and
equitable, especially those who are rated average or poor performers?
I want my team to work collaboratively, performance differentiation will inject competition among the
team member. Then how??
Group Discussion
Should we move away from Performance Differentiation?

48. The Benefits of Effective Performance Differentiation
Addressing the concerns and doubts of line managers regarding performance
differentiation it is important to the understand benefits and rationale
behind it:
• Differentiated Recognition and Opportunities: Tailoring rewards,
promotions, and career development plans based on performance aligns
efforts with organizational goals and recognizes employees'
contributions.
• Fostering a Culture of Excellence: Differentiation encourages a culture of
continuous improvement, recognition, and productivity within the team.
• Individual Growth and Development: Tailored feedback, coaching, and
development opportunities support underperforming employees to
improve their skills and benefit both individuals and the team.
• Healthy Competition: While competition may exist, emphasizing
collaborative goals and maintaining a supportive team environment
enables healthy competition that drives individual and team success.

49. CASE STUDY :
MANAGING POOR PERFORMANCE

50. Case Study : Managing Poor Performance
You are a senior manager, responsible for a team of highly skilled professionals. One of
your team members, Jeffrey, is missing deadlines, producing subpar work, and
demonstrating a lack of engagement. This situation is causing disruptions within the
team and impacting overall productivity.
As a senior manager, you need to address this issue effectively to ensure optimal team
performance and maintain a positive work environment. Jeffrey has been in the
organization for many years. His colleagues have always looked up to him for guidance
and support, and he has been regarded as a mentor by many. Jeffrey had contributed
significantly to the success of several major projects and has earned a reputation for
delivering exceptional results in the past.
However, in recent years, there has been a noticeable decline in Jeffrey's performance.
He has been missing deadlines, and the quality of his work has been inconsistent. As a
senior manager, you recognize the significance of addressing Jeffrey’s underperformance
promptly. You understand that allowing this situation to continue unchecked could have
long-term consequences for both Jeffrey's professional growth and the overall success
of the team. It is crucial to approach this issue sensitively, considering Jeffrey’s seniority
and his previous contributions.

51. Questions (15 mins)
1. What are the impacts on the line manager when dealing with a poor performer?
2. What are some common approaches and strategies that line managers can employ when
managing Jeffrey’s poor performance?
3. What are the key steps in managing poor performers effectively?
4. What are the consequences of not managing poor performers effectively?
5. What are the potential legal implications of managing a poor performer?

52. Unfair Dismissal and Wrongful Termination For PIP
Unfair dismissal and wrongful termination are situations where an employee's employment is terminated
in a manner that is considered unlawful or unjustified. In the context of a Performance Improvement Plan
(PIP), it is important to understand the potential risks and legal implications to ensure compliance with
applicable laws.
Unfair Dismissal
A termination of employment that is considered
unfair or unjust
In many jurisdictions, including Malaysia, unfair
dismissal is protected under employment laws.
The specific criteria for unfair dismissal may vary,
but common grounds include:
• Discrimination
• Retaliation
• Procedural Unfairness
Wrongful Termination
A termination that violates an employee's
contractor rights or breaches employment laws
In the context of a PIP, wrongful termination can
occur if the termination:
• Violates the terms of the employment
contract
• Contravenes employment laws

53. Some Real-life examples of Unfair Dismissal and Wrongful Termination For PIP
• Lack of Support and Resources: An employee was placed on a PIP without being
provided with the necessary training, guidance, or resources to meet the performance
goals. The termination following the unsuccessful completion of the PIP was considered
unfair as the employer did not fulfill their obligation to support the employee's
improvement.
• Unreasonable or Unattainable Goals: An employee was given unrealistic performance
goals as part of the PIP, making it nearly impossible to meet the expectations within the
given timeframe. If the termination was based on the failure to achieve these
unattainable goals, it then deemed unfair or wrongful.
• Retaliatory PIP: An employee was placed on a PIP shortly after engaging in a protected
activity, such as reporting workplace misconduct or participating in a union-related
activity. The termination following the PIP was deemed to be in retaliation for the
employee's protected actions, it then considered unfair or wrongful.
• Inadequate Assessment and Documentation: The employer failed to conduct a
thorough assessment of the employee's performance issues or fails to properly
document the performance deficiencies and progress during the PIP. The termination
was based on incomplete or inaccurate information, it then deemed unfair or wrongful.

54. Mitigate the Risk of Unfair Dismissal and Wrongful Termination For PIP
• Ensure compliance with employment laws and regulations specific
to your jurisdiction, including those related to termination and
employee rights.
• Follow a fair and transparent process: Provide clear expectations,
document performance issues, offer appropriate support and
resources, and allow the employee a reasonable opportunity to
improve.
• Maintain thorough documentation: Keep records of performance
discussions, warnings, progress made during the PIP, and any other
relevant documentation that demonstrates a fair and well-
documented process.
• Seek HR and/or legal advice: Consult with HR and/or to ensure
compliance with employment related laws and to address any
specific concerns or risks related to unfair dismissal or wrongful
termination.

55. My Experience in HR:
• Diverse HR expertise and developed HR strategies
across various industries
• Advocate for Talent Empowerment and continuous
Learning Development
• Led Change and Culture programs, driving
effectiveness.
https://www.linkedin.com/in/azis-chin-61489a1b/
azis.chin@gmail.com
Connect for a Potential Collaborative Future
Providing Services for Passion Projects
• Customized HR Consulting: Tailoring solutions to your
unique HR and business challenges.
• Crafting HR Frameworks : Manpower Planning to
Leadership Effectiveness
• Tailored Training Programs: Bridging skill gaps to
enhance leadership and operational effectiveness
Transforming Experience into Passion: HR Consulting and Training Partner
My Passion in HR:
Empowering People, Transforming Organizations - Partnering for progress in HR,
leadership and culture