Human Resources Manual Phatshoane Henney inc. 2008

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1 Human Resources Manual Phatshoane Henney inc

2 P a g e 2 o f 6 1. PURPOSE To provide a framework for professional, consistent and non-discriminatory performance evaluation practices to continually improve the performance of employees and ensure the optimal utilization of the employer s human capital. 2. PRINCIPLES Performance means the executing of specific roles, functions, tasks, duties and responsibilities, as specifically required by an employee s job description and specification, generally applied against the workplace policies and procedures of the employer. The employer aims to optimise the productivity of its workforce through participative goal setting and a commitment to meeting the employer s strategic objectives. Accordingly, the employer supports the following principles of an integrated performance management system: Employees must accept joint-responsibility with management for the results of the employer. Rewarding optimal performance consistently. Productivity improvement is more likely in a participatory, co-operative, trusting and understanding work environment. Regular open communication, consistent performance feedback, and a performance improvement and competency development plans are key elements in the performance management process. Shared objective setting/contracting of Key Performance Indicators (KPI s) ensures commitment to results. (vi) Performance management enables managers to focus constructively on employee performance and results and to understand the management of performance within an agreed framework of planned goals, objectives and standards. (vii) Managers support the process through monitoring, coaching, mentoring and empowering employees. 3. PERFORMANCE MANAGEMENT 3.1. REQUIREMENTS In order to comply with the requirements of the employment equity act (EEA), a performance evaluation system must comply with the following minimum requirements:

3 P a g e 3 o f 6 The criteria used for the evaluation of performance of employees must be job related. This requires the conducting of job evaluations (and potentially job re-evaluations) (see the employer s job evaluation policy) to determine the conduct, skills and competencies necessary for successful job performance. The evaluation criteria that are used must be formulated in terms of observable conduct or performance and not in vague or subjective terms. Experiences/opportunities where the required performance could be manifested or the competencies be developed and applied must be taken into account for the purpose of evaluation. If different weights are attached to different evaluation criteria, it must be done on a defendable basis. Performance evaluation criteria must be standardised for employees falling within the same job categories. (vi) Evaluators must possess sufficient knowledge of the requirements of the relevant job and must place emphasis on essential, rather than peripheral conduct for successful job performance. (vii) There must be a reassessment process in the case of disputes concerning the results of the performance evaluation process PROCESS The performance management process is an ongoing cycle of activities, and not a single isolated event. The performance cycle includes the following three phases: Planning. Tracking performance. Reviewing and assessing performance. Each phase must feed into the next in a continual cycle of planning, refinement and improvement of each employee s performance plan PROCEDURE The employer will determine the categories of employees to participate in the process of developing KPI s with measurable standards of performance. This shall be a continual process. KPIs must be determined with reference to the strategic business objectives of the employer as they are translated

4 P a g e 4 o f 6 into the specific key outputs for each department/unit and ultimately each individual contributing employee. Developed KPIs are the core of the performance management system and performance reviews should use them as a point of departure. The employer must ensure that KPIs are continuously linked to strategic business objectives. The performance management process is the responsibility of line management with the HR Department providing administrative and consultative inputs and assistance. Although performance review must annually take place on a formal basis, performance management is a continuous process of contracting with the employee, joint formulation, evaluation of objectives, follow-up and feedback. During a formal review discussion, the head of department/line manager, together with the employee must: Evaluate the work performance of the employee over the review period with specific attention to the degree to which the employee has achieved the stated KPIs. Assess the capabilities of the employee in relation to the KPIs for the review period. Establish a performance plan for the ensuing period in terms of objectives and results. Discuss development opportunities of the employee in the department/unit in which he/she is deployed, as well as the rest of the employer in order to maximise his/her full potential. Develop a competency development plan to enhance the employee s capabilities and performance in support of department/units business objectives for the ensuing year, thereby ensuring that all KPIs are directed to the achievement of the employer s strategic objectives. The results and process of the performance management process must be used by the head of department/line manager to: Obtain an overall performance rating for an employee for salary adjustment/bonus purposes, thereby linking performance with remuneration. Provide a mechanism for effective short-term control over non-performers. Provide a basis for career pathing and succession planning. Improve internal communication between the head of department/line manager and employees.

5 P a g e 5 o f 6 Develop a climate of participation and empowerment through installing quality management values and practises. All factors that influence performance must be taken into account during performance reviews. These include knowledge, technical skills, leadership skills, interpersonal skills, external factors and organisational factors NON-PERFORMANCE The employer acknowledges the following main reasons for non-performance (not performing to the required/agreed-upon standards) - physical incapability due to ill health or injury; or incompetence due to lack of skills, training, natural ability, or willingness. In all cases coaching and counselling should be used to address the reason(s) for the employee s inability to perform. However, cases of persistent non-performance, or serious under-performance, must be addressed in terms of the employer s disciplinary policy. This decision resides with the relevant head of department/line manager to be taken in liaison with the HR Department RECORDS All performance evaluations and reviews must be recorded in writing by the relevant head of department/line manager, including a recommendation as to any salary adjustments/bonuses for which the employee eligible in terms of his/her performance evaluation. A copy of all performance evaluations and reviews must be kept on the personnel file of the relevant employee STRATEGIC ORGANISATIONAL PERFORMANCE MANAGEMENT The employer realizes that in today s competitive environment, organisational performance requires a broader approach than merely assessing individual performances. Managers need a balanced presentation of both financial and operational performance to ascertain organizational performance and need to simultaneously assess the interrelationship in performance between several areas of the organisation. Accordingly, the employer must develop and implement a strategic organizational performance management system in terms of which the performance of the organization can be measured not only in relation to the performance of individuals, but further in relation to: Its financial performance - growth

6 P a g e 6 o f 6 Its customer perspective customer perception Its internal performance department/unit performances Learning and growth perspective business improvements and initiatives Such a strategic performance management system must be central to the performance management system of the employer and must align individual performance and departmental/unit performance with the corporate strategic objectives of the employer.

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