An employee is said to have poor performance when he is not able to deliver his actual performance and thus cannot match the level of performance organization requires. Poor performance of employee results in negative outcome of the organization. Thus, it is important to have a proper and systematic check on poor performance management.
An effective method is developed to cope with such poor performance like disease of the company. Management of poor performance helps in either improving the performance or eradicating the under-performing employee in a fair manner, complying with the law of the country.
This Slideshare is a comprehensive document which can help you understand about poor performance and its management with simple illustrations and pictures. Enhance your knowledge and get to know the simple procedures of executing poor performance management in your company for efficient and effective working in your company.
2. Why is performance management
hard?
Requires honesty –
Difficult to tell someone face-to-face their performance is poor.
Requires clear identification of short falls in
performance –
Difficult where no clarity on expected standards.
Requires time and commitment –
Difficult if looking for a quick fix.
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3. Why is performance management
important?
Financial risk –
Company will not be successful if staffed by underperformers.
Litigation risk –
Company will not be able to safely dismiss poor performing employees
if performance management process not followed.
Reputational risk –
Company reputation damaged if poor performance leads to poor
delivery to customers.
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4. What are the benefits from managing
poor performance?
Creating a high performance culture – part of the
Company’s Total Performance agenda.
Improved productivity and service.
Ultimately freeing up management time.
Avoiding unfair dismissal claims!
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6. Let me introduce you to…
Roger, new finance department manager.
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Managing poor performance
7. … and Roger’s team
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Managing poor performance
8. Roger’s first few months
Roger starts his new role in February.
After a few months, Roger starts to have some
concerns about the performance of some of his team
members.
In particular, he’s concerned about:
Ed, accountant;
Amy, accounts clerk; and
Caroline, Roger’s PA.
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Managing poor performance
9. Diagnosing the problem
Roger meets with Anna in HR – “What am I going to do
about these poor performers?”
Anna: “Need to diagnose the problem – why are they
performing poorly?”
Poor performance could be due to:
incapability - can’t do;
ill health – illness preventing from doing;
misconduct – won’t do.
Why are Ed, Amy and Caroline not performing?
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Managing poor performance
10. Diagnosing the problem (cont.)
Ed:
no ill health issues;
does the work – but does it poorly;
incapability?
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Managing poor performance
13. The law: unfair dismissal
Fair Work Act 2009 (Cth):
Person has been unfairly dismissed if:
Person has been dismissed.
Dismissal was harsh, unjust or unreasonable.
Dismissal was not a genuine redundancy.
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“Classic” poor performance
14. The law: unfair dismissal (cont.)
Factors in deciding whether a dismissal is harsh, unjust or
unreasonable:
Was there a valid reason for dismissal (conduct or capacity)?
Was the person notified of that reason and given an
opportunity to respond?
Where dismissal is for poor performance, was the person
warned about the impact of poor performance prior to
dismissal?
NOTE: Primary remedy for successful claim is reinstatement!
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“Classic” poor performance
15. Golden rule
Employee must know what’s coming down the barrel of the
gun!
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“Classic” poor performance
16. Can Roger Dismiss Ed?
Potentially have a valid reason for
dismissal on the basis of capacity –
if Roger can demonstrate Ed’s poor
performance.
BUT Roger:
Never told Ed this was an issue
previously;
Never warned Ed of impact on poor
performance (eg, potential for dismissal);
and
Never provided Ed with an opportunity to
improve.
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“Classic” poor performance
Any dismissal of Ed now will almost certainly
be an unfair dismissal!
17. Roger’s options
Two options:
Dismiss Ed now… and write a cheque for unfair
dismissal costs (max. award 6 months’ salary) – or
be ordered to reinstate him.
OR
Give Ed an opportunity to improve… and if he fails
to improve performance, dismiss him fairly.
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“Classic” poor performance
18. Managing Ed – the right solution
Provide Ed with the opportunity to improve –
through performance management process.
Options:
Informal action:
• Quiet word, counselling, opportunity to improve before going
into a formal process.
Formal action:
• Performance management process & performance
improvement plan.
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“Classic” poor performance
19. Performance management process
Dismissal for poor performance will only be fair where:
employee understands performance expectations;
has been informed that s/he is not meeting expectations; and
has been given the opportunity to improve her/his performance.
SO…
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“Classic” poor performance
20. Performance management process
(cont.)
Meet with the employee and inform her/him that performance is
below expectations.
Explain what the expectations are.
Put the employee on a performance improvement plan (“PIP”).
Consider training/informal coaching to assist in performance
improvement.
Monitor performance against the PIP on a regular (eg, monthly)
basis.
Take disciplinary action if performance does not improve.
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“Classic” poor performance
21. Preparing for the meeting
Prepare in advance of the
meeting:
Rough script of what will be covered
– see hand out.
Evidence of poor performance.
Performance improvement plan –
see hand out.
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“Classic” poor performance
22. Preparing for the meeting (cont.)
Rough script
Manager:
presents concerns and evidence;
listens to the employee’s explanations;
discusses the situation with the employee; and
develops performance improvement plan.
Common pitfalls to avoid:
losing control of the meeting/not covering all points;
being too nice/benefit of the doubt; and
being too defensive/closed minded.
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“Classic” poor performance
23. Preparing for the meeting (cont.)
Establishing poor performance
What should the employee be doing?
Job description.
Employment contract.
Organisational chart.
Other sources?
What is the employee doing?
Emails.
File notes.
Appraisals.
Records from informal
performance discussions.
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24. Preparing for the meeting (cont.)
In preparation for the meeting, Anna gets out Ed’s 2009
performance appraisal:
– End of year: “Ed has achieved all of his objectives. Ed has received
excellent comments from his customers which reflects his commitment
to the businesses he works with.”
Roger: “What?! His performance is terrible!”
Previous positive performance appraisal makes it difficult
to establish poor performance.
Do yourself a favour – give honest performance
appraisals!
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25. Preparing for the meeting (cont.)
Performance Improvement Plan
Specific targets
Measurable targets
Achievable targets
Realistic targets
Time based targets
Must ensure employee is crystal clear about what the
expectations are and when they must be met.
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“Classic” poor performance
26. During the meeting…
Ed’s very angry about the
allegations of poor performance:
Never been an issue before – see past
performance appraisals.
Issue arises because Roger just doesn’t like
him – it’s a personality clash with new
manager.
Targets set in the PIP aren’t achievable –
none of the accountants meet these
standards.
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“Classic” poor performance
27. Responding to Ed’s comments
Anna & Roger listen to Ed’s
comments.
However, have documented
examples of poor performance –
e.g., objective evidence of poor
performance.
What about allegation re
unreasonable targets set under the
PIP?
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“Classic” poor performance
28. Warne v ANZ Banking Group
Facts:
Warne employed as business development manager.
Placed on PIP – and ultimately dismissed for failure to
meet sales targets.
Commission:
Performance targets not realistically set – as evidence by
the fact that all business development managers in WA
were not meeting.
On that basis, no valid reason for dismissal.
Ensure targets set are reasonable and being
achieved by the rest of the workforce!
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“Classic” poor performance
29. First review meeting
After investigating Ed’s comments about the targets,
Roger & Anna revise the PIP and commence
managing Ed against the PIP.
Six weeks later, at the first review meeting, Ed has
met some but not all of his performance targets.
Roger’s question to Anna: “He’s had a chance to
improve, can I dismiss now?”
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“Classic” poor performance
30. How long is long enough?
Need to be given long enough to improve before
taking disciplinary action.
Factors in how long is long enough:
Nature of the job – how difficult it is to learn new skills;
Employee’s status/seniority within the organisation;
Employee’s length of service; and
Employee’s performance history.
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“Classic” poor performance
31. Taking it one step at a time
Rarely, if ever, acceptable to go
straight to dismissal for
performance reasons – step
through the process:
Verbal warning.
Written warning.
Second & final written warning.
Dismissal.
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Editor's Notes
Sample title slide
Comments: sometimes will be situations where better to pay off the employee than go through the PIP process – but manager needs to be aware of the costs of doing this (and will need to do so under a compromise agreement)