Diploma of Management BSB Learner Guide

Transcription

1 Diploma of Management BSB51107 Learner Guide

2 P a g e 2 Core Unit BSBMGT502B Manage People Performance

3 P a g e 3 Table of Contents 1. Allocate work Consult relevant groups and individuals on work to be allocated and resources available Clear instructions Identify and consult with stakeholder... 8 Activity Develop work plans in accordance with operational plans Allocate work according to operational plans Allocate work in a way that is efficient, cost effective and outcome focussed Allocate work as per the organisation s policies and procedures and cost effectively Communicating your plans and collaborating with others Methods of workplace communication Confirm performance standards, Code of Conduct and work outputs with relevant teams and individuals which includes Confirming performance requirements Performance standards Developing performance standards CODE OF CONDUCT Develop and agree performance indicators with relevant staff prior to commencement of work Following performance indicators How to develop key performance indicators Developing Individual work plans Work Plan Template Conduct risk analysis in accordance with the organisational risk management plan and legal requirements Conduct risk analyses Developing contingency plans Activities Assess performance Design performance management and review processes to ensure consistency with organisational objectives and policies What is Performance Management?... 22

4 P a g e 4 The role of assessment in the performance process What is a performance management system? Essential elements of a performance management system Follow your organisation s policies and relevant legal requirements What is a performance plan? Developing individual performance plans Activity Train participants in the performance management and review process Train participants in the performance management and review process Adequate Training Conduct performance management in accordance with organisational protocols and time lines Monitor and evaluate performance on a continuous basis Observational techniques to enhance performance Activities Provide feedback Provide informal feedback to staff on a regular basis Advise relevant people where there is poor performance and take necessary actions Provide on-the-job coaching when necessary to improve performance and to confirm excellence in performance Excellence in performance On-the-job coaching Developing a coaching plan Document performance in accordance with the organisational performance management system Sample coaching plan Conduct formal structured feedback sessions as necessary and in accordance with organisational policy Activities Manage follow up Write and agree performance improvement and development plans in accordance with organisational policies Performance management in action Seek assistance from human resources specialists where appropriate Reinforce excellence in performance through recognition and continuous feedback... 44

5 P a g e Monitor and coach individuals with poor performance Provide support services where necessary Counsel individuals who continue to perform below expectations and implement the disciplinary process if necessary How to conduct a counselling session Activities Terminate staff in accordance with legal and organisational requirements where serious misconduct occurs or ongoing poor-performance continues What is underperformance? Initiating and conducting terminations Unfair dismissal Unlawful termination Discrimination & adverse action Activity Major Activity An opportunity to revise the unit... 1 References... 1

6 P a g e 6 1. Allocate work 1.1 Consult relevant groups and individuals on work to be allocated and resources available 1.2 Develop work plans in accordance with operational plans 1.3 Allocate work in a way that is efficient, cost effective and outcome focused 1.4 Confirm performance standards, Code of Conduct and work outputs with relevant teams and individuals 1.5 Develop and agree performance indicators with relevant staff prior to commencement of work 1.6 Conduct risk analysis in accordance with the organisational risk management plan and legal requirements Consult relevant groups and individuals on work to be allocated and resources available One of the primary roles of a manager is to allocate work and delegate tasks to staff to make sure that the tactical objectives of the organisation are met. In turn, managers should also ensure that the organisation s operational goals are met. There are three main types of goals that organisations use as part of their planning process, they are: Strategic goals Strategic goals are statements of what your organisation would like to achieve over the next five to ten years. These goals are developed from the mission and vision statement and the SWOT analysis that you complete of the environment of the organisation. SWOT stands for an analysis of the Strengths and Weaknesses (i.e. strength - offer high level of customer service) internal to the organisation and Opportunities and Threats (i.e. market demand in your product has lead to a larger share of the market) external to the organisation Tactical goals Tactical goals and objectives must support the organisations strategic goals. They indicate what level of achievement necessary in the departments of the organisation. For example, if the organisations strategic goal is to increase sales by 5% in the next year, then the sales staff in the sales department, for instant may be trained in techniques used to enhance their customer service skills.

7 P a g e 7 Operational goals Operational goals are determined by the lowest level of the organisation and relate to specific teams within each department. They focus on the responsibilities of individual employees. Using the example where the tactical goal of the sales department is to receive training to increase sales by 5%, individual employees then apply their new skills to ensure that sales increases. As a manager it is important to apply your work allocation plan so that people working for you have the best opportunity to meet the organisations performance standards. There are nine steps that you can follow to assist you in this task. The nine steps are: 1) Providing clear instruction 2) Identifying the consulting with key stakeholders 3) To make sure that work is allocation in alignment with operational plans 4) To allocate work as per the organisation s policies and procedures and cost effectively 5) Communicating and collaborating plans with others 6) Confirming performance requirements 7) Following performance indicators 8) Developing individual work plans 9) Undertaking risk analyses in accordance with the organisation s risk management plans and legal requirements. These steps shall now be discussed in detail. 1. Clear instructions A good manager is a manager who has an open door policy. Allow staff to approach and speak to you when they have a problem. Make sure that you staff is aware that there is a channel of communication that they should follow before they approach you. If they feel that this line is not helping them, then they should approach you.

8 P a g e 8 For example, staff should be made aware of the reporting procedure for their department. For example, if they are a part of a team and they have a problem with another team member, they should first try to resolve the problem with them. If this does not work then they should discuss the problem with the team leader. If the team leader is unable to resolve the problem, then the supervisor should be approached. If the staff member feels that other avenues are closed to them, then they should discuss the problem with you. To give clear instructions, is to Be clear and be concise when you give instructions to staff. Make sure that they are informed of the task and how long the task should take to perform. If there are any special requirements to the work, inform them Give staff time to ask questions to ensure that they understand the instructions given. This can save you time as it ensures that the staff member does not perform an incorrect task. 2. Identify and consult with stakeholder A stakeholder is someone within the organisation that has a direct or indirect stake in the organisation who can be affected by the organisations actions, objectives and policies. Key stakeholders include: External groups and individuals External groups and individuals can include suppliers, external training companies and network providers. They are the people who you can consult with before you start a project. Internal groups and individuals your team knows their job and their work area. Ask for their opinion and listen to them when they provide feedback. Every decision you make as a manager will impact on how well everyone performs. The decision will also impact on the rest of the organisation at some level. If, for example, you asked the opinion of one of your team members and followed their recommendation, they will probably take ownership of the decision and work to the best of their capability. Activity 1.1 The above covers activity 1.1 which you will find in your Learner Workbook...

9 P a g e Develop work plans in accordance with operational plans 3. Allocate work according to operational plans As a manager, it is important to be aware of the skills and knowledge each employee has. Work should be allocated to employees based on their ability to perform the task and according to the organisation s operational plans. This ensures that your team completes their tasks correctly and that you work within the budget allocated to the task. External parties should also be consulted with. Most organisations will have procedures that state the frequency in which the parties should be contacted. Continuous contact with suppliers for example will let you keep abreast of special deals, who the credible suppliers are and who to contact to service the supply of a resource for you Allocate work in a way that is efficient, cost effective and outcome focussed 4. Allocate work as per the organisation s policies and procedures and cost effectively For example, your organisation uses a Printing Company to print their reports. An external supplier has been chosen because it was determined that the printing company could meet all of their needs better than an internal staff member. They were more experienced in the quality required to meet their customers needs. Your organisation decided at the last minute to enter a Trade Show. This meant that demand for the printing services increased exponentially within a tight time frame. When you contacted your regular supplier, you found that they were unable to supply the printing material on time. Instead, they referred you to another larger organisation that was running a special. As a manager it is important not only to ensure that the person or team allocated to perform a task has not only the skills and knowledge, but also the capability of meeting the needs of the operational plan. When making decisions about the allocation of work and being cost effective,

10 P a g e 10 it is important to make sure that you are aware of the resources you have available and any time constraints When making decisions about the allocation of work and being cost effective, you need to be aware of your resources and any time restraints. Trusting work to an employee is good for morale, however if you are on a tight schedule it is important that you ensure that your productivity is not affected. 5. Communicating your plans and collaborating with others. The way in which you communicate with others will vary according to their needs and the organisation s policies and procedures. For example; as a full time manager you may prefer that staff send you an so you can peruse them at your leisure. However, if an emergency arises, they may have no choice but to call you via telephone. In a globalised world, you will need to be familiar with all forms of communication which include: Faxes Meetings Conference calls Memos Intranet By developing your own communication skills, and setting up a basic communication plan, you will help to minimise confusing situations and unexpected obstacles from impeding the success of your plans Methods of workplace communication The method of communication you use will vary according to your needs. Ted, for instance is a manager of a Linen Factory. During the busy season, he invariably finds it hard to contact all of his staff. This is difficult because staff in the warehouse work three separate shifts with some of the staff working shorter hours due to family constraints. Group meetings will allow him to reach most of the staff during and between shifts. However, Ted still cannot reach the staff who works varying hours. To ensure that he reaches these staff, Ted always sends out a memo that must be signed by staff to demonstrate that they have read the memo and are aware of changes to procedures. Instead of arranging individual meetings, it is more cost effective to book in group meetings. Group meetings are good for sounding out ideas and minimising confusion. Memo s and s may be more appropriate when dealing with staff that are on different time schedules.

11 P a g e 11 Individual meetings usually occur when management needs to discuss things pertinent to that staff member. These meetings may be about an individual s inability to meet schedules or performance with other staff. The different methods of communication can include: Group meetings Individual meetings Informal meetings Intranet and bulletin board Memo Group briefings Scheduled conference calls Using constructive communication techniques in the workplace For communication to be effective, it needs to be two way. When communication is one way, in which A speaks to B, there is no opportunity for B to ask questions to confirm or clarify instructions When communication is two way, A speaks to B and B is given an opportunity to confirm their instructions through questioning and clarifying the instructions they have received. As a manager you need to give your staff members a chance to ask questions. It is very important that the manager responds and clarifies any questions with clear and concise answers.

12 P a g e 12 Communication Skills for Managers Attentiveness: Listening to others and being receptive to their needs Diplomacy: The skill to tactfully handle a delicate issue or situation. Discretion: The ability to make wise decisions about topics which are suitable for discussion and dissemination and those which are not. Empathy: Showing interest in others and sensitivity toward how they might be feeling. Enthusiasm: A positive outlook and friendly attitude. Flexibility: The ability to compromise when necessary to achieve the organisation s goals. Judgement: Being able to make thoughtful and appropriate decisions. When you make decisions about work allocation and the deployment of your resources always remember that you should make sure that you: Communicate and consult with staff members, managers and any external stakeholders Allocate work to people with the experience, skills and knowledge Use your knowledge of job descriptions to delegate tasks effectively Know what your staff are doing, including increases and decreases to their jobs. Communicating and collaborating plans with others to develop deadlines Check to make sure that all of your work processes and outputs for each department are met. Make sure that the team is responsible for the operations of workflow and follow your organisations procedures to ensure that these details are communicated with them. For example, one of the objectives in your operational plan might be to attract and maintain interest in the organisations new product line. Successfully marketing these activities to internal and external customers is a key result area for your section. The role then of you and your staff is to organise the company s resources (money, capital and equipment) and develop action plans aimed at realising that goal. To develop an action plan, it is important to clarify all of the roles of your staff with each person. Both you and your staff member should be in agreement with deadlines. Once deadlines have been negotiated, then the action plan can be performed. This will allow you to know what is going on at all times and allows you to make sure that all deadlines are met.

13 P a g e Confirm performance standards, Code of Conduct and work outputs with relevant teams and individuals which includes 6. Confirming performance requirements Performance requirements include: Performance standards means the level of performance sought from an individual or group which may be expressed either quantitatively or qualitatively. Code of Conduct means the greed (or decreed) set of rules relating to employee behaviour/conduct with other employees or an agreed (or decreed) set of rules relating to employee behaviour/conduct with other employees or customers Performance indicators are the measures against which performance outcomes are gauged. Business Services Package - BSBMGT502A These performance requirements shall now be discussed in more detail. Performance standards Performance standards will give you a list of each team member s job down to: The tasks that they have to perform The dates in which these tasks need to be completed; and The standards of performance that they must acquire. Always pay more attention to the important jobs first. When deciding what the performance standards will be for a particular task, you should always determine which actions will be a minimum standard of acceptable performance for the task. In most cases, you should assess your performance standards against the following criteria: 1) Cost/budgets 2) Customer satisfaction 3) Quality 4) Quantity 5) Revenue/profit

14 P a g e 14 Developing performance standards To create a performance standard you need to know what the task is that needs to be performed and the minimum standard to complete the task. Example 1 Description of task: Performance standard: Market seminars Create, produce and distribute marketing materials for seminars as required. Example 2 Description of task: Performance standard: Use Computer Turn on program, enter log on password and username and open the correct program you will need to complete a specific task. Checklist The Performance Standards used in my organisation are: Achievable Clear Agreed to Measurable Realistic Specific Time-framed Understood CODE OF CONDUCT A code of conduct (sometimes referred to as a code of ethics) is a set of rules outlining the responsibilities of or proper practices for an individual or organisation. In most cases, the code of conduct should reflect the organisations mission statement. A code of conduct is a document of overriding principles which govern the way employees of an organisation deal with customers, clients and each other. Ideally the code of conduct should be tied in to the mission statement.

15 P a g e 15 A code of conduct includes: A benchmark which is something that can be measured and judged Acceptable levels of conduct to assist the organisation in assessing performance. A code of conduct responsive to the demands of the market today Acceptable behaviours in the workplace of all staff, including presentation, legislative Examples of codes of conduct include: Competitiveness; Excellence in customer service; Honesty in all dealings with customers and each other; Quality of work performed; and Open and honest communication Develop and agree performance indicators with relevant staff prior to commencement of work 7. Following performance indicators What are performance indicators? Performance indicators or Key Performance Indicators (KPIs) is industry jargon for a measure of performance. KPIs are commonly used by organisations to evaluate its success or the success of a particular activity that the organisation is engaged in. They will differ from organisation to organisation. Performance indicators must Reflect the organisation s goals Must be quantifiable Can be financial and/or non-financial

16 P a g e 16 Non-financial indicators should include a range of elements, depending on the particular requirements and objectives of the organisation. Some common examples include: Environmental performance; Innovation; Quality; Social performance; An organisation can break these down into specific performance indicators for each employee, for example Profit per employee; Revenue per employee; Customer satisfaction standards met per employer; and Quality standards attained per employee, etc. In this way, the performance indicators for individuals are derived from the goals and objectives of the section or department, which in turn support the mission and goals of the organisation. For example Key result area To achieve a high level of customer satisfaction. Performance Indicator More than 90% of customers surveyed are very satisfied. How to develop key performance indicators Identify each step of the process and what needs to be achieved. You need to first identify each particular step in the work process, what must be achieved at each step in the process as well as how it is to be achieved. For instance, the client must recognise the need for further education in order to provide work opportunities.

17 P a g e 17 Performance indicators need to be developed for each stage. Be aware that some stages will overlap. For example, what indicators need to be available to identify the need for education? The same process must be undertaken when developing key performance indicators for developing individuals. Once a list of key performance indicators for a particular individual has been agreed to, these should be added into that person s performance plan. 8. Developing Individual work plans Action plans must be broken down into a set of tasks and allocated to various individuals and groups in order to achieve the required goals. The main benefit of undertaking this kind of detailed work planning is to subdivide what began as a large mass of organisational work into a set of clearly defined and manageable units. By allocating work in this way, you will ensure that the work of both individuals and your section or department as a whole are focused on the achievement of the organisation s strategic goals. The purpose of a work plan is to organise several projects into one plan in order to make recommendations. It should include the project objective, list of staff required, list of equipment and facilities required a breakdown of the project into tasks and assignment, along with a budge and a relevant schedule. Goal: A broad statement that captures the overarching purpose of the intervention not measurable. The work plan can have more than one goal. Measurable Objectives: Realistic and tangible targets for the intervention objectives should relate to the activities column of your work plan and set specific numbers/types of activities to be completed by a certain date. The objectives should be for the first and second year of the intervention. Activities: Events or actions that take place as part of an intervention. Activities are what is actually done to bring about the desired effects or changes of the intervention and are supportive of the objectives. The activities should be for the first and second year of the intervention. Impact: The intended effects or changes that directly result from the intervention. The impact should represent the results of the first year of the intervention. Evaluation: How the activities and impact are measured. Includes both process and outcome evaluation for activities and impacts in the first and second year of the intervention. Each objective does not need both process and outcome evaluation; however, the entire work plan should include both process and outcome evaluation.

18 P a g e 18 Work Plan Template Goal: Description for Year 1: Measureable Objective for Year 1 Activities for Year 1 Impact for Year 1 Evaluation for Year 1

19 P a g e Conduct risk analysis in accordance with the organisational risk management plan and legal requirements Conduct risk analyses A Risk analysis is the determination of the likelihood of a negative event preventing the organisation meeting its objectives and the likely consequences of such an event on organisational performance Business Services Package - BSBMGT502A No matter, how much you plan, there is always risks associated with all work plans and projects. It is important to take these risks in performance into consideration all vulnerabilities that can then be quantified and worked into a suitable risk management plan. Quantification is the process of determining the degree of risk in each of the identified areas. Risks are usually graded as high, medium or low. Consider the following example for how risk is quantified. Task description Risks Levels of risk Meet deadlines Overload/overlap of tasks M Achieving sales targets Unidentified tasks M Primary tasks Increasing brand Awareness Unforseen meetings Fixing mistakes M M Project management Dispute resolution Equipment issues L L Technical improvement Overlap/overload of tasks M Quality improvements Unidentified tasks M Project improvements Unforseen meetings M Secondary tasks Team meetings Fixing mistakes L External meetings Equipment issues L Participating in Organisational training Dispute resolution L

20 P a g e 20 Change management H Holidays Sickness M No project time Absence L Other Professional Development training Staff turnover/ learning curve M Travel Once risks have been identified and quantified, there are a number of mitigation strategies you can implement to manage the risk: Avoidance: If the risk is too great, you may need to consider whether it is worth continuing on with a particular project or initiative. Acceptance: If the likelihood of risk is too small, you should document the risk, but consider continuing with the project or initiative. Control: For medium level risks, you should continually monitor the risk, and develop a contingency plan. Deflection: If unsure about the level of risk you might consider deflecting, or transferring, it over to a third party (i.e. outsourcing a particular function).

21 P a g e 21 Developing contingency plans Contingency plans (otherwise known as a backup plan) is a secondary or alternative course of action that can be implemented if the primary plan goes wrong. This will allow businesses to quickly adapt to change and remain in operation, sometime with very little inconvenience or loss of revenue. Contingency plans are similar to operational plans in that they cover the short term and outline specific actions to be taken. However, the level of detail should be kept to a minimum to ensure there is enough flexibility to change the plan as required. It is important that contingency plans are realistic and capable of meeting the program and project requirements. It is also important to ensure that any contingency plans you develop are in line your organizations risk management plan and any specific legal requirements that may be relevant to your organisation. Familiarise yourself with these and use them as a guide when undertaking contingency planning. Activities The above covers activities which you will find in your Learner Workbook Assess performance 2.1 Design performance management and review processes to ensure consistency with organisational objectives and policies 2.2 Train participants in the performance management and review process 2.3 Conduct performance management in accordance with organisational protocols and time lines 2.4 Monitor and evaluate performance on a continuous basis

22 P a g e Design performance management and review processes to ensure consistency with organisational objectives and policies What is Performance Management? Performance management is a method used to measure and improve the effectiveness of people in the workplace. (Luecke and Hall, 2005, p.xi). Performance Management starts with goal setting. As a manager, you need to not only look at individual goals, but at the group as a whole so that you can develop and manage and develop in a way in which you can increase the probability that you will be able to ensure that both long and short term goals are met. The key is ensuring that the individuals and their teams obtain a clear and concise shared understanding of what they are trying to achieve. Overview of performance assessment Now that you have established work processes, performance standards and indicators and codes of conduct have been established and agreed to, you need to think about how you plan to assess and manage performance. To remain competitive, it is essential to make sure that your human assets are effective. Measuring performance allows you to measure your team members ability to apply their skills and knowledge, to work effectively together and to use service excellence to meet and surpass the customer s needs. Assessing performance is important to all organisations in terms of promoting employee performance. It is not good for any organisation to establish outcomes and performance requirements unless they are supported by a functional system of assessment. As a manager you need to manage your staff members performance to see how well or badly individual staff and teams are performing.

23 P a g e 23 The role of assessment in the performance process The management and assessment of performance is integral to the development and success of an organisation. It makes sure that the employees are aware of what they are doing. For example Fred is employed in your organisation s administration office. His job involves answering customer enquiries, processing new customers and handling complaints. To be effective in his job, he has to answer the phone within three rings and handle complaints while, processing all new customer information and entering it into organisations database within 24 hours of the customer s initial call. You have recently been appointed as a manager and schedule a meeting with him to see how he is performing in the job. He tells you that he is doing well and everything is fine. You would like to verify this by looking at some relevant data, but you discover that. Your organisation has no system for tracking the number of the calls he receives and that he processes all of the required information into the database. You database software states exactly where information has been entered and by who. You can see that every new customer has spoken with has been entered into the database, but you have no way of knowing whether this was done within 24 hours of the initial call. Notes you have found from Fred s previous supervisor indicate that he passed on very few customer complaints; however there is no way of knowing whether the amount of complaints passed on exceeded 25%. This example illustrates why performance cannot be managed unless an organisation puts in place a framework and set of specific procedures for assessing performance.

24 P a g e 24 What is a performance management system? A performance management system provides management with the key elements for the recruitment, assessment; appraisal and follow up of performance. It relies on documents and procedures that guide management and employees through performance and review process supplying feedback in regards to performance issue. For performance management to succeed, it is essential that there is an ongoing communication process shared by the employee and the supervisor that establishes a clear understanding of what each parties expectations are including: What the employee s essential job functions are? How employee s can contribute to the goals of the organisation Having a clear and concise understanding what doing the job well means How performance can be improved Identifying barriers and removing them Ensuring that all parties are aware of how performance will be measured. Essential elements of a performance management system The actual documents and procedures used as part of a performance management system will vary from workplace and consist of: 1. Clear job descriptions are created When a new employee is employed; they are usually supplied with a job description that is an essential part of a performance management system. Job Descriptions clearly state the nature of the role, the expectations of the job, will have shown applicants to decide if they are initially interested and will assist the organisation to select the right applicant. Conversely, as a manager you are supplied with the skills, knowledge and experience the applicant requires in meeting the goals of the job. The closest match is usually considered for the job. 2. Recruitment and selection processes are implemented The right person for the right job is an essential requirement if the performance management process is going to succeed. Managers and HR officers usually have the responsibility to make sure that the selection process is closely matched between an applicant s skills, knowledge and experience and the organisations job description. 3. Performance requirements, standards and measures are negotiated and implemented Performance standards and codes of conduct, along with performance indicators, measures and processes are agreed to from the start.

25 P a g e Individual performance plans are created Both the manager and employee should jointly work out and agree to a performance plan for a set period of time (generally 12 months). This plan should incorporate individual goal setting which is linked to section and departmental goals, and a development plan for that employee. 5. Performance is tracked and formal or informal assessments are made Formal and informal methods can be regularly used to measure performance. Periodical meetings should be set up throughout the year with each employee to enable the employee and their manager to make assessments about performance, discuss any problems, and work out strategies to improve performance in the short term. 6. End of year performance reviews are conducted Structured, formal meetings are booked with employees either annually or bi-annually to review their performance called a Performance review. It will be the managers responsibility to formally appraise their team members performance against their based on either specific goals and/or competencies. People with jobs that are not goal-based should be assessed on competencies, or standards of performance. Give your team members given the opportunity to prepare for the review. This means that they should be advised ahead of time about when the performance review will occur. 7. Action is taken by management where necessary If any employees fail to meet their objectives, you should counsel them. Identify areas that require further development. Employees who refuse to perform to the required standard or undertake counselling or development should be disciplined or terminated according to the facts in each case. In the case that poor performance is identified, you should: 1. Identify the problem Make sure that you understand the cause of the problem. Be specific and give clear reasons what area/s that the underperformance is occurring. 2. Assess and Analyse the problem How long has the problem been a problem and identify the size of the problem by performing a gap analysis. Always let the employee know the purpose of the meeting and ask if they would like to bring someone with them to the meeting. 3. Meet with the employee and discuss the area of underperformance Meet in a comfortable place free from distractions and interruptions. Discuss outcomes, positive items and their strengths. Let them know what is going on and work together to resolve in a relaxed atmosphere

26 P a g e Consult and get both parties agree to a solution A clear understanding should be obtained, stay focused and positive and consider offering a mentoring program. Reinforce the value of the role they perform and how you should work together to fix misunderstandings. 5. Monitor the problem Monitor employee s progress and provide ongoing positive feedback. 6. A performance plan is developed Key data and information is taken from the original performance plan and new goals and development objectives are added and agreed upon to create a new, updated plan. Keeping performance management and review processes in line with your organisation s objectives To be successful, integrate the performance management system into the organisation s overall planning cycle. As a manager you play a key role in implementing the system. It needs to correlate with the organisation s strategic and operational objectives. The ultimate goal of performance management is to help achieve the company vision and mission. For this to happen; you will need to answer the following questions: 1. What does your organisation hope to achieve by using a performance management system? Some of the expected answers should include: To identify any inefficient systems or internal processes which adversely affect performance? To identify areas for organisational learning and development.

27 P a g e 27 To identify areas where capital expenditure is required. To identify problem employees or employees demonstrating exceptional performance. To improve the organisation s overall performance To objectively measure performance. To provide essential operational and performance feedback to management. 2. What particular steps and procedures are necessary to make the system work? For this question, you need to have the ability to explain why it is essential for your organisation to manage and measure performance. Once you understand this; then you can implement steps and procedures to make it your performance management system work. This means that you can then implement the practical steps and procedures to make it functional. If you do not do this, then you will be wasting time and resources. Follow your organisation s policies and relevant legal requirements Policies and procedures are written to ensure that you perform your tasks legally by adhering to employment law and industrial relations. Policies and procedures will also ensure that you are consistent. Failure to meet performance standards can cost individuals their job. People who exceed the performance standards may obtain a pay raise. Copies of all organisational policies and procedures guiding working conditions and relationships can be obtained by your Human Resource Manager. Be familiar with all policies and procedures pertaining to performance issues. The types of policies you may receive from the HR Manager include: Annual leave policies; Carers leave/ special purposes leave etc; Conditions of employment; Grievance procedures; and Recruitment policies and procedures; Termination policies and procedures; Wage conditions and bonus requirement.

28 P a g e 28 Job descriptions and the recruitment process Get it right from the start. To do this, match the applicant s skills, knowledge and experience in their resumes with the job description. Ensure that individuals understand what is required of them including the conditions of their jobs and the goals of their jobs. A job description should provide the following information about: All specific job functions and tasks to be performed in the position; Any special requirements of the position Conditions of employment; Details as to management or reporting lines (i.e. who the employee will report to); Estimate of time spent performing each function or task; Level of skill, training, and ability needed to successfully perform the job; and The strategic or operational objectives of the position;. If your organisation can find any applicant who is a good fit for a particular position then there is a greater chance they will be able to perform to the organisation s expectations. What is a performance plan? A performance plan can be utilised to assist you in the employee s performance appraisal. It is a comprehensive written report that sets out all the outcomes and performance requirements on which that individual is to be assessed. Essentially, the performance plan is an agreement between managers or teams or individuals determining what needs to be achieved within the required time frame. Performance plans can help provide staff members with an understanding of their roles and responsibilities and their link to the team and the organisation s objectives.

29 P a g e 29 Developing individual performance plans Individual performance plans must link the following elements: An individual s key result areas. The various tasks an individual must perform. The key performance indicators for each task (note: meeting performance standards should also be a key performance indicator. Time-frames, deadlines. Development plan. To develop an individual performance plan, you must: 1. Review organisational goals associated with results in term of performance, its quantity, quality, cost and timeliness. Turn your goals into smart goals Goals that are 2. Specify the results that you require. Consult with both your internal and external customer. 3. Ensure that the desired results from your goals will contribute to the organisations results. 4. Prioritise the goals in the form of ranking, percentages, time spent. For example, 80 % of the employees role is customer service, 10 % is training and 10% is developing knowledge 5. Outline the measures used to evaluate if and how well the desired results are achieved. Without measures, you are unable to evaluate the results. Measures include timeliness, cost, quality and quantity. For example, to measure whether the customer service representative consistently met its 150 calls a day average. 6. Identify more specific measures for the first-level measures if needed from the measures in point 5. For example, if the customer service representative

30 P a g e 30 consistently received calls, were they processed in two minutes? If so, what percentage was processed in this time period? 7. Identify standards for evaluating how well the results were achieved. For example, did the customer service representative meet expectations? 8. Document the performance plan. You must include the desired results, measures and standards. Goal: Conducting performance planning meetings When you meet with staff members, the initial planning begins. Make sure that performance objectives are discussed, clarified and agreed upon. This makes sure that management and employees know what they and the rest of their team are doing. All changes to performance plans need to be documented and agreed upon. Activity 2.1 The above covers activity 2.1 which you will find in your Learner Workbook Train participants in the performance management and review process Adequate Training All staff must be trained in the management and review of performance. They must clearly understand their role in the process. Provide staff with ongoing feedback through meetings so that they can be updated on what is going on. Take care when you consider who should be involved in the performance management and review process. Organisations must be clear on why each party is involved. This process usually takes place in meetings that are conducted with a mixture of: Line managers; HR officers; and Union representatives (as necessary) You

31 P a g e 31 Training should include how participants should conduct themselves and on what questioning techniques should be used. If the person being assessed reports directly to you makes sure they are briefed on: The specific job functions, jobs, goals and key competencies of the individual being assessed. What you intend to measure and how. The criteria by which decisions about discipline, redundancy or reward must be made. Training and development opportunities available. You The specific documentation in use by the organisation for writing performance plans, providing feedback and performance appraisals. Employment contracts, performance standards and organisational policies. Make sure that the managers, employees and other people involved in the performance management and review process know how to analyse results effectively in order to make informed decisions Conduct performance management in accordance with organisational protocols and time lines It is essential to follow all steps within the performance management process. It should be monitored, assessed and reviewed on a regular basis.

32 P a g e 32 Consider the following example: PERFORMANCE MANAGEMENT TIMELINE Revenue Finders Pty Ltd General All staff, except for those in probationary appointments, will participate in a performance review and receive a written evaluation of their performance at least once a year, normally December or January. Probationary staff Probationary staff will receive a formal, written evaluation of their performance at least once during the probationary period. A second performance evaluation must be completed prior to confirming permanent status for an employee. Special cases/interim reviews A manager or evaluator may conduct an evaluation of an employee s performance at any time where a special case can be made to either recognise unusually outstanding performance or prevent unsatisfactory performance. An employee may also request an evaluation of his/her performance at anytime if she/he believes it would be beneficial. Performance planning/review meetings An employee is entitled to a meeting with the evaluators to discuss their performance over the 12 month period. After receiving a written performance evaluation, an employee must request a follow-up meeting with the evaluator to discuss the performance evaluation. This meeting will take place within 14 days of the request unless there are exceptional circumstances. Documentation Written performance evaluations are to be kept in the employee s personnel file after the employee is provided with a copy. If you do not follow your organisation s performance management system, you will not be able to keep track of your employee s performance. If problems in performance are not found, then poor performance will remain unchecked and this can cause serious problems for the organisation Monitor and evaluate performance on a continuous basis To manage performance successfully, you need to create a performance plan, yearly review and continuously process which staff you need to monitor. You also need to be able to give the staff feedback, provide coaching and develop them on an ongoing basis.

33 P a g e 33 You should see staff sometimes to discuss their development. Most organisation s see staff on the quarterly basis and on a 12 month cycle for the performance review. These reviews can be productive and provide managers and staff with the opportunity to openly discuss performance issues in an informal way. The reviews can be used to highlight problems and identify goals and challenges for the team member. In some instances, employees may take control of their own performance plans, accessing them online and allowing them to review and update them. These types of performance plans are live documents which change over time and as the demands of a particular job change. Observational techniques to enhance performance When observing the performance of your staff members, it is important to focus on both their activities and the behaviours they display in the workplace. The types of activities you need to identify and monitor include: Level of output generated by the employee; Revenues generated by the employee; Accuracy or quality of work; Impact of their work on others; and Special projects or achievements. Behaviours which you need to observe on a regular basis include: Friendliness/ professionalism in the workplace; Enthusiasm and commitment levels; Initiative; Punctuality; and Teamwork. Observation is not a sufficient way to provide information to assess performance. You must communicate with staff and detect unproductive behaviour and activity as it occurs. If staff does not know they are doing something wrong, they cannot change what they are doing. If you give your staff members regular, timely and specific feedback, they will be much more likely to understand what it is they are doing wrong, and will be able to put improved work practices into action as soon as possible.

34 P a g e 34 Activities The above covers activities which you will find in your Learner Workbook Provide feedback 3.1 Provide informal feedback to staff on a regular basis 3.2 Advise relevant people where there is poor performance and take necessary actions 3.3 Provide on-the-job coaching when necessary to improve performance and to confirm excellence in performance 3.4 Document performance in accordance with the organisational performance management system 3.5 Conduct formal structured feedback sessions as necessary and in accordance with organisational policy Provide informal feedback to staff on a regular basis Feedback is important because it allows provides management and staff information on areas where they can improve. There should be a system of ongoing feedback on issues of performance which creates an open dialogue with staff about concerns and allows them to make recommendations on how they can improve their performance. Feedback is a two way process. Employee's need to be encouraged to seek out feedback; to ensure that sure they are performing to the expectations of the organisation. Feedback should be a positive learning experience, thus it should be given in a professional and tactful way. Before giving feedback ask yourself the following questions: 1. Why are you assessing this staff member? 2. On what functions, skills, behaviours, or activities is this assessment based? 3. On what standards is this assessment based? 4. What are the facts of the situation? 5. What do you plan to do with the results of your feedback?

35 P a g e 35 If you can answer all these questions satisfactorily, you can be sure that the need to provide feedback is appropriate in the situation, and you are doing it for all the right reasons. Employees should also be given informal feedback. They become motivated and respond correctly when you are tactful and professional. The types of processes you might consider implementing include: Regular written reports outlining a staff member s progress; Regular short meetings to discuss general performance issues and identify areas for improvement; Periodic evaluation of your staff member s output eg: products or tasks they are responsible for; Informal peer assessment; and Spot checking for quality. Using these types of procedures will provide you with an up-to-date and accurate picture of just how well any of your employees are performing at any given time, and will ensure that any feedback you give is relevant and based on fact rather than speculation. Timely feedback provides you and your team member with an opportunity of remedying the behaviours or activities which have led to the poor performance- before it creates any major problems for the organisation. Poor performance will be much more difficult to rectify if it is not identified until a formal performance appraisal has been conducted. Check list The feedback I provide to members is: Clear Factual Fair Non-judgemental Provable Specific Timely Understood

36 P a g e Advise relevant people where there is poor performance and take necessary actions If a manager is to manage a decline in performance, then performance must be clearly defined. Without performance standards you will not be able to measure a decline in performance. All employees will have a slight deviation in work performance over time. You should watch for when there is a significant drop from the performance standards. Poor performance is not always deliberate. Some employees have not been correctly briefed or are operating under a misunderstanding. Personal issues may also give rise to poor performance. Discussing your observations and trying to rectify the problem, helps you uncover the reason for the poor performance. Your observational skills will assist you in identifying whether you need to intervene. It is important that you make sure that two conditions are satisfied and they are that: The problem must be affecting work performance; and The employee must agree to accept the assistance offered. Make sure that your focus stays firmly on work performance. Do not become involved in private issues. They are none of your concern, even if they affect performance. Only concern yourself with work performance. Care should be taken when providing feedback for poor performance. You should Language both verbal and body plays a crucial part in the way you are perceived by others, so try to avoid coming across as being too critical. Be aware that using language which is overly harsh and disapproving will be very counter-productive as the person concerned will immediately become upset or defensive, and this may well result in a lessening of their overall commitment to the job, or respect for you as their manager. When giving someone feedback on performance issues, you must ensure any statements you make are delivered in a non-judgemental fashion in order for the feedback process to be effective. You also need to avoid making assumptions or generalisations about a situation if you wish to discover the real reason behind the poor performance. Do not become emotional and focus on facts, clearly explaining your observations and how they can rectify their poor performance.

37 P a g e 37 If an event remains unresolved then refer the matter to your HR officer or your manager. Your organisation will have procedures for addressing resolving disputes. You should be familiar with them Provide on-the-job coaching when necessary to improve performance and to confirm excellence in performance Excellence in performance Means regularly and consistently exceeding the performance targets established while meeting the organisation's performance standards. Business Services Package - BSBMGT502A To maximise the performance of employees while maintaining high levels of morale and retention, is the key to an organisation obtaining a competitive edge. Coaching is the process that assists employees to deepen their learning and improve their performance. On-the-job coaching Giving feedback on performance issues is part of coaching. You need to be consistent when providing information on the strengths and weaknesses of your staff performance. Individuals that perform well are coached into developing their skills further. However, those performing below acceptable standards are given advice and coach or counselled to help improve their performance. Coaching is a learning process that is aimed at bringing out the best in a person. It can assist in long and short term goals that in turn assist in career development. Coaching helps individuals improve their general skills as well as helping in areas that need improvement. For this reason, it is a valuable tool for increasing an organisation s overall productivity as well as increasing morale. Developing a coaching plan To ensure the coaching process is effective you should: Make an assessment on how quickly you think the individual can be coached to an appropriate performance level; Identify and brief the person or persons who will be conducting the coaching;

38 P a g e 38 Set clearly defined performance targets and deadlines in conjunction with the employee which are agreed to in writing; and Identify and follow up any particular training needs for that individual. If the individual is able to meet these specific goals or targets within the timeframe given then you can be sure that the coaching program has been a success. Larson and Richburg (2000) write that there are Seven Key Elements of Coaching. They are:

39 P a g e Document performance in accordance with the organisational performance management system As a part of any continuous improvement, it is important to leave a paper trail. A coaching plan is a document that outlines the gaps in an employee s skills that need to be closed. A sample coaching plan is shown below. Sample coaching plan Name: Manager: Date of meeting: Areas where excellence in performance has been demonstrated Performance areas needing improvement Additional items (i.e. training and professional development needed) Next steps

40 P a g e Conduct formal structured feedback sessions as necessary and in accordance with organisational policy Feedback should not only be ongoing, there should be times when it should be formal. For ongoing, informal feedback to be effective, it should be: Timely - Provide feedback as soon as you can to when it occurred. If you wait until the annual performance appraisal to address poor performance, your staff will resent that you did not give them a chance to correct the problem. Specific - Be specific and address the behaviour in a performance in terms of measureable outcomes. Staff will be less likely to dispute any perceived problem if they are involved in the goal setting process. owned by the giver - Use I and my when giving feedback so that you can take responsibility for your own thoughts and actions. Understood by the receiver - Ask your employee to rephrase the feedback to ensure that they understood it. Offer them access to any resources or tools that are available that can assist them in fulfilling these expectations. Delivered in a supportive environment - Provide support. Make it clear that the purpose of the feedback is to assist the employee in achieving success. Give the employee an opportunity to explain why their performance is lower than normal and discuss ways in which they can be motivated. Followed-up with an action plan - Work with the employee to find ways to improve his or her performance or reinforce the positive behaviour that they have demonstrated. Agree to deadlines and goals and schedule any follow up meetings if they are required. Given with no surprises - Do not put any surprises in the feedback session. If a problem is not discussed in feedback then it should not be discussed in the performance appraisal. Formal reviews are an essential part of the performance management process for many organisations. Even though, managers offer ongoing feedback, when it comes to the formal review, there is a negative stigma to it. As managers, you need to make the formal review process a positive experience.

41 P a g e 41 This can be done by: Focusing on the positive Be objective; however discuss the positive feedback as it will lift performance considerably. Emphasise specific outcomes of the review such as rewards such as promotions, raises or bonuses. Emphasise the future Communicate their long-term potential within the organisation as staff are tending to stay longer in workplaces. Discuss weaknesses without emphasising them Move away from just giving negative feedback. Accompany negative feedback with suggestions on how they can perform their job better. Do not emphasis the two extremes of the negatives and the positives. Find a balance and use it. As a manager, when you give feedback in formal reviews, make sure that: Staff are given an opportunity to prepare for the review Make sure that you have the experience to give the feedback constructively. Avoid being blunt, not discussing a subject because it might cause conflict and be clear and concise with the feedback you give. Make sure that the review process is two ways. Let the employee also give you feedback Don t just concentrate on the last year, let the employee know what lies in their future Follow up. You will lose credibility if you don t follow up on the actions that you say you are going to make then you will have a long fight in regaining the integrity of the review process. Activities The above covers activities which you will find in your Learner Workbook...

42 P a g e Manage follow up 4.1 Write and agree performance improvement and development plans in accordance with organisational policies 4.2 Seek assistance from human resources specialists where appropriate 4.3 Reinforce excellence in performance through recognition and continuous feedback 4.4 Monitor and coach individuals with poor performance 4.5 Provide support services where necessary 4.6 Counsel individuals who continue to perform below expectations and implement the disciplinary process if necessary 4.7 Terminate staff in accordance with legal and organisational requirements where serious misconduct occurs or ongoing poor-performance continues Write and agree performance improvement and development plans in accordance with organisational policies Once the performance appraisal for the previous year is complete, it is up to you as a manager to thoroughly discuss specific development goals with individual staff members and work on creating a realistic plan for achieving these goals. A Performance Improvement Plan is a document that is designed for a member of the team who is not performing up to expectations in their current role. Helping the develop employees is an essential part of the continuous cycle of learning and growth for both the employee and the organisation as a whole. Utilising this type of ongoing assessment, appraisal, and development system allows an organisation to manage performance issues by focusing on developmental plans and opportunities for each employee, which in turn increases organisational effectiveness

43 P a g e 43 Performance management in action The types of activities you may wish to consider when discussing and identifying development opportunities with an employee include: Attending courses with external providers; Attending internal development classes; Attending seminars or conferences; Career counselling; Coaching; On-the-job training; Online training programs; Participation or membership in professional organisations; Participating in job rotation; Participating in special projects; University or certificate programs; and Working with a mentor.

44 P a g e 44 As a manager it is important that you help employees develop their careers. This means making recommendations on development. You should make sure that any recommendations you make take into consideration not only the interests of the organisation, but the staff member s interests. Any training and development should be pursued immediately. Before finalising any development plans ensure that you get the necessary approval from senior management and check that there are sufficient resources available to allocate to the development activities. Carefully consider what impact the development plan will have o other employees. This is especially important if the employee is going to be training for an extended period. You may need to find staff to replace them on the floor. Once the specific development activities for an individual employee have been identified, they must be agreed to in writing and added to that person s performance plan Seek assistance from human resources specialists where appropriate Human resource specialists are specifically trained in all aspects of employee relations and industrial relations, so a HR expert is the best person to turn to if you are unsure about how to tackle a particular performance issue. Employee relations refer to the nature and quality of relationships between individuals and groups in the workplace, whereas industrial relations are concerned more specifically with the rules governing the relationships between parties to an industrial arrangement or contract. Industrial relations issues can arise when an employee believes their employer has breached one or more of their conditions of employment, or has acted in a manner which is contrary to employment law. Employees in this situation may seek assistance from a union, staff association or industrial tribunal in order to achieve redress from the organisation. Staff grievances and performance problems, whether they fall under the category of employee relations or industrial relations, must be managed and resolved if the working relationship is to continue. Organisations that employ HR officer often encourage staff to contact the HR officer with queries that issues like personnel policies, terms and conditions of employment or leave entitlements directly. In these situations, the HR officer is also generally available to provide confidential counselling to staff on request Reinforce excellence in performance through recognition and continuous feedback

45 P a g e 45 Staff that have proven that they are a valuable asset to your organisation should receive positive feedback. The areas of performance you should consider providing special recognition for include: Sales performance; Productivity; Teamwork; Initiative; Quality of service; Quality of communication; and Participation in special projects. Once you have identified specific examples of excellence, you need to determine what type of recognition will be most appropriate. For example Personal recognition Verbal praise (one-to-one, or in a group situation). Written praise. A letter of commendation. A thank-you card. A small gift. Personalised certificate of achievement Monitor and coach individuals with poor performance Any employee who is not meeting their performance expectations should be given coaching and retraining. To determine whether the coaching or training program was successful you should: obtain feedback from the coach or trainer; speak to the employee to find out whether they feel the coaching or training program has been a success; observe the employee s performance to detect improvements in performance; evaluate the employee s achievements in light of agreed performance targets; and conduct a review meeting with the employee at the conclusion of the coaching or training program

46 P a g e 46 If the poor performance continues, you need to consider what action needs to be taken. In certain cases, i.e. where the poor performance can be linked to personal problems or learning difficulties, it may be appropriate to provide further, specialised support to that person. However, in cases of persistent and deliberate poor performance you may need to consider terminating the person s employment with the organisation Provide support services where necessary Support services should be made available to provide staff with access and counselling by external professionals. This is usually paid by the employer. It is called the Employee Assistance Programs (EAP). If your organisation does not have access to an EAP, it may engage external professionals. It will still be feasible to engage an outside professional to assist employees in overcoming their performance problems. Counselling, or workplace mediation are the main support services provided to employees who are experiencing difficulties. Counselling is an appropriate option in cases where the employee is going through personal problems such as: family breakdowns; deaths; divorce; or depression Counselling may also be helpful for specific work related difficulties such as: lack of confidence; feeling undervalued; career crisis; or workplace stress

47 P a g e 47 In cases where the performance problem is a direct result of workplace bullying, personality clashes or other interpersonal difficulties, you should strongly consider engaging a professional counsellor to conduct structured mediation sessions in your workplace. These types of sessions are very effective in that they involve the whole team or group in identifying those behaviours or activities which have caused the problem, and working toward achieving outcomes that are acceptable for both the group and the wider organisation Counsel individuals who continue to perform below expectations and implement the disciplinary process if necessary Counselling can be conducted by managers, HR officers or external professionals. The employee has the right to have a representative, such as a union or workplace representative, in attendance at any counselling sessions. If outside professionals are used, the employee needs to attend. You should monitor the employee s performance to make sure the counselling sessions are working. Make sure you are prepared before attending a counselling session. You should only conduct counselling sessions yourself it you have been trained in the counselling process. Prior to conducting and counselling sessions with an employee, you must ensure you are adequately prepared. Use operating manuals, guides and other tools to improve the employee s performance. How to conduct a counselling session 1. Schedule a confidential meeting with the employee - Provide the employee with sufficient notice and remind them that they may choose to bring along a representative if they wish. It is important that you do not schedule a meeting straight after this one, as you do not want to have to rush off in the middle of a counselling session. Allow enough time for the employee to ask questions and give feedback and make sure that you take notes. 2. Set and maintain a positive attitude - While you are primarily there to discuss the reasons for the poor performance and to help the employee to identify ways to overcome it, you should always focus your discussions on issues of good performance and why it is important for both the individual and the organisation. 3. Be cooperative, professional and focused - You must be objective and calm at all times. Do not let your personal opinions or feelings enter the discussion. Give the employee an opportunity to respond to your comments and listen, don t lecture. 4. Seek clarification - Ask pertinent questions and stop now and again to get confirmation from the employee that he or she understands the performance problems and your expectations.

48 P a g e End on a positive note - At the conclusion of the meeting, emphasise the positives that have come out of the discussion, reinforce the fact that the employee is valued by the organisation, and stress that improving the employee s performance is a mutually beneficial goal. 6. Prepare a written summary - Having a written summary of the discussion is beneficial. Keep a copy yourself and give one to the employee. This must be kept confidential from other staff. 7. Follow up with the employee - Schedule a follow-up session to check on the employee s progress. Activities The above covers activities which you will find in your Learner Workbook Terminate staff in accordance with legal and organisational requirements where serious misconduct occurs or ongoing poor-performance continues Termination means the cessation of the contract of employment between an employer and an employee, at the initiative of the employer within relevant industrial agreements For more information on Termination and your rights, please refer to the Offices in your State. If you have been dismissed or unfairly treated at work because you're being discriminated against you can complain to the Fair Work Ombudsman or to: Fairwork Australia at Australian Human Rights Commission at

49 P a g e 49 There are also state laws that protect you against discrimination. If you want to lodge either a harassment or discrimination complaint that relates to a state law, complain to: State Office URL Address ACT Human Rights Commission NSW Anti-Discrimination Board NT Anti-Discrimination Commission QLD Anti-Discrimination Commission SA Equal Opportunity Commission TAS VIC Office of the Anti-Discrimination Commissioner Equal Opportunity and Human Rights Commission WA Equal Opportunity Commission More information can be found at: National Anti-discrimination Information Gateway If your matter relates to general bullying or harassment, you can contact your relevant state or territory OH&S body: State Office URL Address: ACT WorkSafe NSW WorkCover NT WorkSafe QLD WorkCover SA WorkSafe TAS WorkCover VIC WorkSafe WA WorkCover

50 P a g e 50 Consistently discipline poor performers What is underperformance? Underperformance or poor-performance can be demonstrated in the following ways: inability to perform the duties of their position or at the standard required not following organisational policies and procedures behaviour that is not acceptable in the workplace by displaying behaviour that is negative and disrupts coworkers Discipline is not the same as punishment. Disciplining staff is an effective tool to rectify poor staff performance. Avoid disciplining staff if their skills are not up to scratch. They may require further coaching or training first. No matter how good your planning and performance management procedures are, there will be occasions where you will need to discipline staff on undesirable behaviour. Make sure that discipline occurs as fast as possible while it is still in the employee s mind and rectify it before it goes too far. Always give the party a chance to bring someone with them to the counselling session. If you do not do this, then the problem could become worse for the whole organisation. Underperformance arises for many reasons including: the organisations workplace policies and procedures are not clear and the employee does not understand what the consequences are interpersonal differences and cultural misunderstandings workplace bullying negative experiences or workplace leading to low morale and lack of personal motivation personal issues such as family stress no positive reinforcement so they do not know if they are performing their duties correctly. Initiating and conducting terminations Terminating a staff member s employment is a serious act and should never be undertaken lightly. If you do decide to initiate a termination process, you must make sure that it is done in accordance with your organisation s policies and any overriding legal requirements.

51 P a g e 51 By law, an organisation can terminate the employment of an employee for serious misconduct, or ongoing poor performance. The rules and requirements are very different in each of these categories. For the rest of this unit, we shall refer to you as a Manager acting as a representative for your employer, thus when we write employer, we are referring to you. As a manager, acting for your employer under law it is illegal to dismiss or make redundant any staff if the actions were considered harsh, unjust or unreasonable or if the dismissal is consistent with the Small Business Fair Dismissal Code. When Fair Work Australia considers whether a dismissal is harsh, unjust or unreasonable, they take into account a range of factors including: if there's a valid reason for the dismissal relating to the employee s conduct or capacity if the employee is notified of the reason and given an opportunity to respond if the dismissal relates to unsatisfactory performance, then whether the employee is warned about it before the dismissal. From 1 January, 2010, The National Employment Standards (NES) replaced the non pay rate provisions of the Australian Fair Pay and Conditions Standard (the Standard). Under the NES the rules relating to redundancy and redundancy pay have been modified. The NES also requires a cover notice when an employee is dismissed. Under law, a dismissal is harsh, unjust or unreasonable if: there is a valid reason why the employee acted they way in which they did the employee is advised of the dismissal and is given a chance to respond; and if the employee does not perform at a specific level and they were warned about it before they were dismissed. Unfair dismissal Unfair dismissal arises when an employee: cannot give a valid reason for underperforming; are advised of said underperformance and makes no effort to address the issue

52 P a g e 52 does not take the chance to respond when they are notified of the dismissal is not given an opportunity to have a support person present during dismissal discussions; and any other factors that Fair Work Australia considers relevant. It s not an unfair dismissal if the employer is a small business employer and they follow the Small Business Fair Dismissal Code. Note from 1 January 2011, a small business will be determined by a headcount of each employee, irrespective of hours worked. The headcount includes casuals employed on a regular and systematic basis, employees of associated entities, and the employee/s being dismissed. There are special arrangements for small business including: 1. that small businesses are recognised as not having sufficient resources, time and can't find employee's for specific positions 2. an easy to understand Fair Dismissal Code to make sure that the employers are not unfair 3. specialist service from the office of the Fair Work Ombudsman 4. The time for unfair dismissal has been extended to 12 months from the original 6 months. There are special unfair dismissal arrangements that apply to small businesses. When FWA considers whether a dismissal is harsh, unjust or unreasonable, they take into account a range of factors including: if there s a valid reason for the dismissal relating to the employee s conduct or capacity if the employee is notified of the reason and given an opportunity to respond any unreasonable refusal by the employer to allow the employee to have a support person present at any discussions relating to dismissal if the dismissal relates to unsatisfactory performance, whether the employee is warned about this unsatisfactory performance before the dismissal the impact of the size of the employer s enterprise on the dismissal process, including the absence of dedicated human resource management specialists or expertise any other factors FWA considers relevant.

53 P a g e 53 Unlawful termination Unlawful termination is where an employee s employment is terminated for a discriminatory reason, or otherwise against the law. There are protections for employees who have been unlawfully terminated. Discrimination & adverse action There are laws to protect employees and prospective employees from job-related discrimination. It is essential that as a representative for your employers that you are aware of this issue and provide discrimination-free workplace. What is discrimination? Under Commonwealth workplace law, an employer must not take adverse action (as set out below) against any employee or prospective employee because of the following attributes: race colour sex sexual preference age physical or mental disability marital status family or carer s responsibilities pregnancy religion political opinion national extraction Social origin.

54 P a g e 54 What is adverse action? The following are all examples of adverse action when taken because of any of the above attributes: dismissing an employee damaging an employee s ability to do their job changing an employee s job to their disadvantage treating one employee differently from other employees refusing to employ a potential employee not offering a potential employee all the terms and conditions normally in a job. Exceptions There are also certain exceptions, where an action may not be considered discrimination. The Fair Work Ombudsman cannot investigate discrimination claims, if the alleged discrimination: is not illegal under any Australian anti-discrimination law where the action is taken is based on the inherent requirements of the job is taken against a staff member of an institution conducted in accordance with religious beliefs in good faith and to avoid injury to the organisation s religious beliefs. Is it really discrimination? General bullying, harassment or workplace conflict is not the same as unlawful discrimination, and such matters should be directed to your state or territory OH&S body. Treating someone differently may not necessarily be a case of unlawful discrimination. Unlawful discrimination only occurs when someone is treated differently because of their race, colour, sex or one of the other attributes outlined above.

55 Activity 4.7 The above covers activity 4.7 which you will find in your Learner Workbook... Nearly there... Major Activity An opportunity to revise the unit At the end of your Learner Workbook, you will find an activity titled Major Activity. This is an opportunity to revise the entire unit and allows your trainer to check your knowledge and understanding of what you have covered. It should take between and 1-2 hours to complete and your trainer will let you know whether they wish for you to complete it in your own time or during session. Once this is completed, you will have finished this unit and be ready to move onto the next, well done! Congratulations! You have now finished the unit Manage People Performance as a part of the Diploma of Management. References Bacal, R (1999). Performance Management McGraw Hill FairWork Ombudsman 09-Best Practice Guide Managing Underperformance URL Address: Larson, P.S & Richburg, M. (2000) Leadership Management URL Address: Luecke, R. & Hall, B.J () Performance Management: Measure and improve the effectiveness of your employees. Performance Management: Performance Plan URL Address: