Acknowledgements How to use the Toolkit Introduction
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1 Contents Acknowledgements How to use the Toolkit Introduction ix xi xiii CONTENTS Section 1: Foundations for handling performance problems 1 Tool 1.1 How do we get people to perform? 2 Tool 1.2 Why everyone should be bothered by performance problems 4 Tool 1. Different methods that can be used to improve performance 8 Tool 1.4 Risk and relationship 18 Tool 1.5 Handling line managers objections 2 Tool 1.6 Situational performance management 25 Tool 1.7 How good am I at handling poor performance? 2 Section 2: Setting standards of performance 41 Tool 2.1 Identifying standards of performance 42 Tool 2.2 Setting goals, aims, objectives, standards and targets 45 Tool 2. How to check that others understand what you mean 52 Tool 2.4 Deciding how to set the standard 56 Tool 2.5 Assessing others readiness for feedback 59 Section : Recognising problems 6 Tool.1 Common performance problems and approaches for dealing with them 64 Tool.2 Climate survey 68 Tool. Preparing for an informal meeting to discuss the problem 70 Section 4: Tactics for dealing with persistent problems 75 Tool 4.1 Legal considerations 76 Tool 4.2 Clarifying different roles and responsibilities 89 Tool 4. When to use capability procedures versus when to use discipline procedures 92 Tool 4.4 Checklists for every stage in the formal procedure 100 Tool 4.5 Conducting a formal meeting 118 Tool 4.6 What to do when the performance is irredeemable 121 vii
2 CONTENTS Section 5: Evaluating your approach to handling performance problems 125 Tool 5.1 Personal assessment: How good am I at managing performance? 126 Tool 5.2 Benchmarking: How do I stack up against others? 128 References 1 viii
3 Introduction The past 20 years have seen a major shift in our organisations. In the UK we are increasingly dependent on knowledge workers. This is eroding the traditional command-and-control structure for managing performance. Performance issues are complex and may come down to a subjective assessment. We have an ongoing war for talent, which makes holding onto even a mediocre performer an attractive proposition. INTRODUCTION Employees are more aware of their rights and of what is happening both in and outside of the company. Employers have lost some of the leverage they previously had with the demise of the final salary pension. Teams may be global, operating in different time If poor performance is not addressed it becomes a cancer to the organisation. Wherever it spreads, it lowers standards. A poor-performing estimator on a multi-million pound project could cost the organisation its margin. The results may take months or years to recognise and the line manager may have moved on before the final reckoning. Staying ahead of the problem is vital. Managing performance problems should be easy. The Indeed, they probably apply the skills to the resolution of other organisational problems and are highly successful in this respect. Many HR departments have been depleted and there is often not enough resource to support line managers through more complex performance management issues. Other HR departments are scared of getting it wrong and some are terrified to delegate this activity to their line managers, who they fear will end up in a tribunal. Legislation is increasing annually and is becoming more complex. Protectionism for employees means that many people are unsure of which procedure to follow in a given situation. It also means that more than one procedure could apply to a complex scared when they approach performance problems. This is especially true where the problems involve illness. The Disability Discrimination Act (DDA) has been expanded support employees who may be covered. xiii
4 INTRODUCTION The processes that worked 20 years ago are outdated and all of the above means we have to handle poor performance better than ever before. Building line management In essence the HR community both internal and external needs to be able to pass on its knowledge and help line managers to understand a risk-and-relationship model of performance management. Who is this Toolkit for? This Toolkit is designed for HR managers, learning and development managers, trainers, consultants and business coaches who intend to work with managers on a group or an individual basis. Practical tools are provided, which can be used immediately. It is not theoretical but very practical, easy to read, easy to use, with examples of when and how to use tools and an indication of what a desired outcome should look like. in helping people managers improve their handling of performance problems. There are a number of procedures suggested but these can and should be supplemented by the organisation s own procedure. The Toolkit is split into five sections: 1 Foundations for handling performance problems 2 Setting standards of performance Recognising problems 4 Tactics for dealing with persistent problems 5 Evaluating your approach to handling performance problems xiv
5 Section : Recognising problems Introduction INTRODUCTION Time is a precious resource for most managers. Giving time to handle performance problems means that a manager may fail to meet other pressing demands. It is therefore vital that managers can quickly recognise the type of problem they are facing and how to approach it properly from the start. Recognising performance problems may be a simple process: conduct an informal meeting and it may be resolved quickly. It may, however, be more complex and encompass organisational issues. The climate survey in Tool.2 will help managers uncover their organisation s readiness to identify performance problems and to embrace performance improvement. 6
6 COMMON PERFORMANCE PROBLEMS AND APPROACHES FOR DEALING WITH THEM Tool.1 Common performance problems and approaches for dealing with them Overview This tool provides an overview of common performance problems with examples of how to deal with them. This could be used as the basis for a group discussion, where participants are invited to identify the problems most common in their teams and then to note their suggestions for handling them. 64
7 Checklist of common problems with suggested approach Problem Approach Your notes Absenteeism regular, short term Absenteeism long-term ill-health Behaviour Carry out an investigation to decide if the issue is capability or conduct. Then use either the capability or disciplinary procedure. Use the capability procedure. Most likely to be conduct. Try the informal route first but set tight time limits for changes of attitude, for example two or three days should be adequate unless there is an underlying issue. If there is an underlying issue, then this could be a capability issue and subject to that procedure. Reasons why capability might apply include, but are not limited to: dependency medication. CHECKLIST OF COMMON PROBLEMS WITH SUGGESTED APPROACH Breaking the rules This is a conduct problem so use the disciplinary procedure. This document can be downloaded from CIPD. Please use or adapt this document in line with our terms of use 65
8 COMMON PERFORMANCE PROBLEMS AND APPROACHES FOR DEALING WITH THEM Problem Approach Your notes Excessive personal use of computer equipment, Internet, , and so on Falsifying documents Harassment and bullying Timekeeping Violence or fighting of any sort Work standards or failure to meet work standards Most likely to be considered a conduct issue, so disciplinary procedures may apply. Some companies have reserved the right to review employees computer usage, in the contract of employment. You will need to check this first before accessing data. Likely to be a very serious conduct issue, so disciplinary procedure may apply. Most likely to be considered gross misconduct. Use the disciplinary and dismissal procedures. Could be either a conduct or capability issue. Investigate to decide which procedure, but likely to be disciplinary. Most likely to be considered gross misconduct. Use the disciplinary and dismissal procedures. Informal meetings to discuss and agree standards followed by a written record of agreements. May be either capability or conduct. If the person is not capable of meeting the standards. then use the capability procedure. This document can be downloaded from CIPD. Please use or adapt this document in line with our terms of use 66
9 Note: When handling any performance problems you should always follow your organisation s procedure, where you have one. Your organisation s procedure must be in line with the Statutory Procedures or, where there is no company procedure, then these should be used. The Statutory Discipline and Dismissal Procedures came into force in the UK in October It is likely that these will be repealed, but we do not know when the changes will be implemented or indeed how they may change. The full procedures are available on the Acas website [ Always seek advice from HR or a legal representative if you are unsure which procedure to use to handle a particular performance problem. CHECKLIST OF COMMON PROBLEMS WITH SUGGESTED APPROACH This document can be downloaded from CIPD. Please use or adapt this document in line with our terms of use 67
10 CLIMATE SURVEY Tool.2 Climate survey Overview This tool is aimed at helping to identify whether the organisational climate is conducive to performance improvement. Use it with managers, team members or to audit the organisation s readiness to embrace performance management. 68
11 Is my organisation ready to embrace performance management? Indicator Yes/no Actions 1 The organisation has detailed processes and procedures for managing performance. 2 Managers are trained in performance management skills. All staff and managers have received appraisal training. 4 Appraisals are completed by all levels of management, including the most senior. 5 There is an enthusiasm for appraisals. Employees and managers look forward to the review process. 6 Appraisals and reviews are completed on the due date. 7 Appraisal documentation fully details how well the employee has performed in achieving objectives and standards in the past review period. 8 All employees have written objectives for the next review period. 9 Learning and development support is provided to assist employees in the delivery of their objectives. 10 There is a culture of open feedback. 11 My manager gives timely, direct and honest feedback. 12 I regularly receive positive feedback about work I have done well. 1 I am recognised for my achievements. 14 I know when I have crossed a boundary and when I need to improve my performance. IS MY ORGANISATION READY TO EMBRACE PERFORMANCE MANAGEMENT? 15 I feel motivated to improve. 16 My manager sets a good example. 17 My manager focuses on strengths and helps me to build on these. 18 My manager knows his or her own strengths and limitations. 19 My manager helps me by tackling barriers to my success that may be outside of my control. 20 I trust my manager to treat me fairly. This document can be downloaded from CIPD. Please use or adapt this document in line with our terms of use 69
12 PREPARING FOR AN INFORMAL MEETING TO DISCUSS THE PROBLEM Tool. Preparing for an informal meeting to discuss the problem Overview Managing poor performance is essential for maximising individual, team and organisational performance. Most issues can be resolved informally if the manager addresses them early enough. Unfortunately managers tend to let things go and the result can be an escalation of the issue. It is not unusual for an HR manager to be confronted by a manager who wishes to sack someone who is poorly performing but who has never had a reprimand. It s called the iceberg effect, 10% of the problem is seen and 90% of the occasions when a manager should have spoken to someone go undetected. This can become a body or mass of resentment. The manager feels they have let things go in an attempt to be caring and understanding, hoping that performance will improve. The employee feels that the manager is laissez-faire and is then horrified when the problem has escalated to a formal meeting. The simple rule of thumb is always start early. Make the meeting informal but be honest and direct with the employee. The employee then knows where they stand. This tool includes a checklist for handling an informal meeting, a template to help the manager prepare their notes for the meeting, and a simple review form that can be used for informal meetings or one-to-ones. 70
13 A checklist for the informal meeting Key points Gather all of the facts before organising an informal meeting with the employee. Invite the employee to a meeting, explaining your reasons. This can be done verbally. Although the meeting is informal it should still be conducted in an area away from the main place of work, particularly if this is public. Book a room or a meeting space. Allow sufficient time for the meeting. Prepare for the meeting, ensuring you have specific examples. (See Template: Preparing to talk to people about their performance.) At that meeting you need to: do not appear to be meeting the required standard. standards. This helps them to see that you value them and recognise their strengths. issue) for the underperformance. providing relevant training, mentoring, closer supervision. If capability is the issue, then if alternative work is available this should also be considered and discussed with the employee. You should also consider any alternative posts the employee may suggest. specific, measurable, agreed, realistic and time-bound) objectives. A CHECKLIST FOR THE INFORMAL MEETING You should monitor performance carefully and provide feedback on an ongoing basis. This document can be downloaded from CIPD. Please use or adapt this document in line with our terms of use 71
14 PREPARING FOR AN INFORMAL MEETING TO DISCUSS THE PROBLEM Key points At the agreed follow-up meeting, you should: improved upon and why or how. you could do to help. If performance continues to be unacceptable after a further review, move to the formal procedures. This document can be downloaded from CIPD. Please use or adapt this document in line with our terms of use 72
15 Template: Preparing to talk to people about their performance 1 Review past performance be specific and have examples (0% of the meeting) Areas to discuss Praise strengths Communicate shortcomings Delivery of the role as set out in the job description Meeting objectives, the what Meeting behavioural standards, the how 2 Agree new performance standards for the future (50% of the meeting) Continue Start Stop Action plan be SMART (20% of the meeting) Who What By when TEMPLATE: PREPARING TO TALK TO PEOPLE ABOUT THEIR PERFORMANCE I will do... You will do... Other changes 4 Review progress Set a date for a review. This document can be downloaded from CIPD. Please use or adapt this document in line with our terms of use 7
16 PREPARING FOR AN INFORMAL MEETING TO DISCUSS THE PROBLEM Template: Informal review form Employee: Manager: Review date: Things that are going well Things that need to be improved Objectives Learning and development objectives/agreements Further review required? Yes/no Review date, if applicable: This document can be downloaded from CIPD. Please use or adapt this document in line with our terms of use 74
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