Know about the latest innovations around performance management. Legal boundaries of performance management. Story telling, Self monitoring, KPI Dash board etc. know about various tools and techniques.

1. PERFORMANCE
MANAGEMENT BEST
PRACTICES
Presented by: Farhad Mahbub (CAHRI, AFAIM)
Latitude12 Pty Ltd

2. CONTENT
 Traditional PMS stages
 PMS evolution to best practices
 Some best practices of PMS
 Legal consequences

3. TRADITIONAL PMS STAGES
1. PLANNING 2. PERFORMING 3. REVIEWING 4. REINFORCING

4. 1. PLANNING
Administration Planning
Line managers responsibility to consult with their
team members on the following;
1.Performance management process and timeline
2.When they will be required to attend for KPI setting
3.When their performance will start to be assessed
Follow SMART
Rule:
Specific
Measurable
Attainable
Relevant
Time-Bound
Stage 1
KPI Setting
Corporate
&
Business Unit
KPI Communication
Line managers must invite
team members to meet with
them and discuss/set
Individual KPI’s

5. Stage 2
PERFORMING
One, Two, Three, ACTION!
Both the line manager & employee have a
part to play in the assessment period
Employee:
Keep track of KPI
achievement/ progress.
Report to line manager
if any issues with KPI
KPI Adjustment
During this period, KPI’s
can be reviewed and
adjusted due to a number
of factors;
Change in organisational
structure
Change in business goals
Macro economics
Other factors affecting
validity
Any KPI adjustment at this
stage must be approved by
Line Manager
Line Manager:
Keep track of KPI
achievement/ progress.

6. Stage 3
REVIEWING
ASSESSMENT PERIOD
ENDS
KPI assessed
1. Line Manager
Dialogue
Line Manager conducts
performance Dialogue
2. Line Manager Rating
Performance rating or
achievement % score
3. Sign off
Sign off by both
parties

7. Stage 4REINFORCING
After the REVIEW phases
are complete, development
plans and performance
improvement plans are put
in place
Performance
Improvement Plan
Rewards and
Incentive
Development
Plan

8. PMS EVOLUTION STAGES
Primitive
- Hire and Fire
Basic
- Dialogue one
way
Traditional
- Dialogue two way
- Development
focus
- Reward and
reprisal
Contemporary
- Dialogue multiparty
- Self development
focused
- Cascaded Goals
- Comparative
ratings
- 360 degree
Bestpractices
- Self reporting
- Team dashboard
- 3 tier framework
- Goal cascading
- Story telling
- Performance
dialogue
- Rating calibration
- Performance
improvement and
development plan

9. SELF REPORTING
When organisation reaches to the culture
of creating self tracking and self awareness
of performance appraisal
Employee has clear understanding of
responsibilities and accountabilities
Employee has clear understanding of self
contribution to overall business goals
Employee development is at highest
priority

10. VISUAL IS THE MOST EFFECTIVE TRACKING

11. TEAM DASHBOARD

12. THREE TIER FRAMEWORK
Performance Centric
- High performance
culture
- High performance
directly linked with
high individual reward
- Short term
performance
improvement plan
- Strict actions for non-
performers
Social Centric
- Collaboration and
engagement centric
- Team focused
- Inter and intra team
coherence
- Team responsible for
performance
achievement
- Reward shared among
team than individual
Development Centric
- No monetary reward
- Individual and team
development
opportunities
- Long term performance
improvement plan
- Soft approach to
performance targets
- Linked with competency
framework

13. GOAL CASCADING

14. STORY TELLING WORKS BEST
Our revenue target for the year is…………….
Our sales growth target is %%%
Our sales growth target is %%
Our client said they want to see improvement in…..

15. PERFORMANCE DIALOGUE

16. RATING CALIBRATION
Grand Father Review Rules
Line Manager review
Line Manager’s Manager
Review
Employee self assessment
Bell Curve Cross Matching
Darwin VS Palmerston
Manager VS Officer
Male VS Female
Indigenous VS Non-
Indigenous

17. PERFORMANCE IMPROVEMENT &
DEVELOPMENT PLAN
PIP
Professional
Development Career
Development

18. PERFORMANCE IMPROVEMENT PLAN

19. LEGAL CONSEQUENCE
FWA Harshness criteria
- Valid Reason
- Notification of reason
- Opportunity to respond
- Refusal to discuss with support person
- Warning of unsatisfactory performance
- Size and Procedures followed
- Presence of dedicated specialised HR
- Any other relevant matters

20. REASONABLE MANAGEMENT ACTION
789FD When is a worker bullied at work?
(a) while the worker is at work in a constitutionally-
covered
business:
(i) an individual; or
(ii) a group of individuals;
repeatedly behaves unreasonably towards the worker, or a
group of workers of which the worker is a member; and
(b) that behaviour creates a risk to health and safety.
(2) To avoid doubt, subsection
(1) does not apply to reasonable
management action carried out
in a reasonable manner.
(1) A worker is bullied at work if:

21. REASONABLE MANAGEMENT ACTION
Examples of reasonable management
action can include but are not limited to
(NT Worksafe guide):
 setting reasonable performance goals, standards
and deadlines
 rostering and allocating working hours where the
requirements are reasonable
 transferring a worker for operational reasons
 deciding not to select a worker for promotion where
a reasonable process is followed
 informing a worker of their unsatisfactory work
performance in an honest, fair and constructive way
 informing a worker of their unreasonable or
inappropriate behaviour in an objective and confidential
way
 implementing organisational changes or
restructuring
 taking disciplinary action including suspension or
termination of employment.
Workplace conflict
Differences of opinion and disagreements are generally not
considered to be workplace bullying. People can have
differences and disagreements in the workplace without
engaging in repeated, unreasonable behaviour that creates a
risk to health and safety. However, in some cases, conflict that
is not managed may escalate to the point where it meets the
definition of workplace bullying.

22. REASONABLE MANAGEMENT ACTION
What is management action? (FWC Anti-Bullying Bench book)
The following are examples of what may constitute management action:
• performance appraisals
• ongoing meetings to address underperformance
• counselling or disciplining a worker for misconduct98
• modifying a worker’s duties including by transferring or re-deploying the
worker99
• investigating alleged misconduct100
• denying a worker a benefit in relation to their employment, or101
• refusing an employee permission to return to work due to a medical condition.
An informal, spontaneous conversation between a manager and a
worker may not be considered management action, even if issues such
as those listed above are raised.
Recent workers’ compensation cases suggest that, to be considered
management action, the action must be more than simply day-to-day
operational instructions that are part and parcel of the work performed
The Explanatory Memorandum suggests that the term may be required to be given a wider meaning under s.789FD(2):
112. Persons conducting a business or undertaking have rights and obligations to take appropriate management action and make appropriate
management decisions. They need to be able to make necessary decisions to respond to poor performance or if necessary take disciplinary action and
also effectively direct and control the way work is carried out. For example, it is reasonable for employers to allocate work and for managers and
supervisors to give fair and constructive feedback on a worker's performance. These actions are not considered to be bullying if they are carried out in a
reasonable manner that takes into account the circumstances of the case and do not leave the individual feeling (for example) victimised or humiliated.

23. SUMMARY
 Self Reporting
 KPI Dashboard
 3 tier framework
 Goal cascading
 Story telling
 Performance dialogue
 Rating calibration
 Performance improvement plan

24. THANKS
 Questions?