BSBMGT502 Manage People Performance
Learner Guide: BSBMGT502
Manage people performance
BSBMGT502 LEARNER GUIDE 2 | P a g e Version 2.5
Version control
Version No. Date Dept. Change
1.0 11/11/2015 Training Original
2.0 03/03/2016 Training Content update
2.5 24/10/2016 Training Content update
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Content
BSBMGT502 Unit Description ………………………………………………………………………………………………. 6
Application of Unit ……………………………………………………………………………………………………………… 6
Performance Criteria …………………………………………………………………………………………………………… 6
Performance Evidence ………………………………………………………………………………………………………… 7
Knowledge Evidence …………………………………………………………………………………………………………… 7
Section 1 Allocate work …………………………………………………………………………………………………. 8
1.1 Consult relevant groups and individuals on work to be allocated and resources available ……… 8
Strategic goals ………………………………………………………………………………………………………………… 8
Tactical goals ………………………………………………………………………………………………………………….. 8
Operational goals ……………………………………………………………………………………………………………. 8
1.2 Develop work plans in accordance with operational plans ……………………………………………….. 10
1.3 Allocate work in a way that is efficient, cost effective and outcome focussed …………………….. 10
Methods of workplace communication ……………………………………………………………………………. 12
Communication Skills for Managers ………………………………………………………………………………… 13
1.4 Confirm performance standards, Code of Conduct and work outputs with relevant teams and
individuals ……………………………………………………………………………………………………………………….. 14
Performance standards ………………………………………………………………………………………………….. 14
Developing performance standards ………………………………………………………………………………… 14
Code of conduct ……………………………………………………………………………………………………………. 15
1.5 Develop and agree performance indicators with relevant staff prior to commencement of work
………………………………………………………………………………………………………………………………………. 16
What are performance indicators? ………………………………………………………………………………….. 16
How to develop key performance indicators…………………………………………………………………….. 16
Developing Individual work plans ……………………………………………………………………………………. 17
Work Plan Template………………………………………………………………………………………………………. 17
1.6 Conduct risk analysis in accordance with the organisational risk management plan and legal
requirements …………………………………………………………………………………………………………………… 18
Conduct risk analyses …………………………………………………………………………………………………….. 19
Developing contingency plans ………………………………………………………………………………………… 20
Section 2 Assess performance ………………………………………………………………………………………. 21
2.1 Design performance management and review processes to ensure consistency with
organisational objectives and policies …………………………………………………………………………………. 21
What is Performance Management? ……………………………………………………………………………….. 21
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Overview of performance assessment …………………………………………………………………………….. 21
The role of assessment in the performance process ………………………………………………………….. 21
What is a performance management system? ………………………………………………………………….. 22
Essential elements of a performance management system ………………………………………………… 23
Follow your organisation’s policies and relevant legal requirements …………………………………… 25
What is a performance plan? ………………………………………………………………………………………….. 26
Developing individual performance plans ………………………………………………………………………… 26
2.2 Train participants in the performance management and review process …………………………… 28
Adequate Training …………………………………………………………………………………………………………. 28
2.3 Conduct performance management in accordance with organisational protocols and time lines
………………………………………………………………………………………………………………………………………. 29
2.4 Monitor and evaluate performance on a continuous basis ……………………………………………….. 30
Observational techniques to enhance performance ………………………………………………………….. 30
Section 3 Provide feedback ………………………………………………………………………………………….. 31
3.1 Provide informal feedback to staff on a regular basis ………………………………………………………. 31
3.2 Advise relevant people where there is poor performance and take necessary actions ………… 32
3.3 Provide on-the-job coaching when necessary to improve performance and to confirm
excellence in performance …………………………………………………………………………………………………. 33
Excellence in performance… …………………………………………………………………………………………… 33
On-the-job coaching ……………………………………………………………………………………………………… 33
Developing a coaching plan ……………………………………………………………………………………………. 33
3.4 Document performance in accordance with the organisational performance management
system …………………………………………………………………………………………………………………………….. 35
Sample coaching plan ……………………………………………………………………………………………………. 35
3.5 Conduct formal structured feedback sessions as necessary and in accordance with
organisational policy …………………………………………………………………………………………………………. 36
Section 4 Manage follow up …………………………………………………………………………………………. 38
4.1 Write and agree on performance improvement and development plans in accordance with
organisational policies ………………………………………………………………………………………………………. 38
Performance management in action ……………………………………………………………………………….. 38
4.2 Seek assistance from human resources specialists where appropriate ………………………………. 40
………………………………………………………………………………………………………………………………………. 40
4.3 Reinforce excellence in performance through recognition and continuous feedback ………….. 41
4.4 Monitor and coach individuals with poor performance ……………………………………………………. 42
4.5 Provide support services where necessary ……………………………………………………………………… 42
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4.6 Counsel individuals who continue to perform below expectations and implement the
disciplinary process if necessary …………………………………………………………………………………………. 44
How to conduct a counselling session ……………………………………………………………………………… 44
4.7 Terminate staff in accordance with legal and organisational requirements where serious
misconduct occurs or ongoing poor-performance continues …………………………………………………. 45
What is underperformance? …………………………………………………………………………………………… 46
Initiating and conducting terminations…………………………………………………………………………….. 46
Unfair dismissal …………………………………………………………………………………………………………….. 47
Unlawful termination …………………………………………………………………………………………………….. 48
Discrimination & adverse action ……………………………………………………………………………………… 48
References ………………………………………………………………………………………………………………………. 52
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BSBMGT502 Unit Description
Application of Unit
This unit describes the skills and knowledge required to manage the performance of staff who report to them
directly. Development of key result areas and key performance indicators and standards, coupled with regular
and timely coaching and feedback, provide the basis for performance management.
It applies to individuals who manage people. It covers work allocation and the methods to review
performance, reward excellence and provide feedback where there is a need for improvement.
The unit makes the link between performance management and performance development, and reinforces
both functions as a key requirement for effective managers.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Performance Criteria
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
2. 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
3. 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.
4. Manage follow up 4.1 Write and agree on 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.
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Performance Evidence
Evidence of the ability to:
➢ Consult with relevant stakeholders to identify work requirements, performance standards and agreed performance indicators
➢ Develop work plans and allocate work to achieve outcomes efficiently and within organisational and legal requirements
➢ Monitor, evaluate and provide feedback on performance and provide coaching or training, as needed
➢ Reinforce excellence in performance through recognition and continuous feedback
➢ Seek assistance from human resources specialists where appropriate
➢ Keep records and documentation in accordance with the organisational performance management system
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
➢ Outline relevant legislative and regulatory requirements
➢ Outline relevant awards and certified agreements
➢ Explain performance measurement systems utilised within the organisation
➢ Explain unlawful dismissal rules and due process
➢ Describe staff development options and information
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Section 1 Allocate work
1.1 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 led 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 is 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 instance, may be trained in techniques used to enhance their customer service skills.
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. Identify and consult with key stakeholders
3. Making sure that work is allocated 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
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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
your staff are 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.
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 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.
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1.2 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.
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1.3 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
have not only got the correct 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,
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 email 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.
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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 work 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. Memos and e-mails may be
more appropriate when dealing with staff that are on different time schedules.
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.
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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 yows you to make sure that all deadlines are met.
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1.4 Confirm performance standards, Code of Conduct and work outputs with relevant teams and individuals
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 agreed (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.
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
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: Market seminars
Performance standard: Create, produce and distribute marketing materials for
seminars as required.
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Example 2
Description of task: Use Computer
Performance standard: 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 Realistic
Agreed to Specific Time-framed
Measurable Understood
Code of conduct
A code of conduct (sometimes referred to as a code of ethics) is a set of rules outlining the
responsibilities or proper practices for an individual or organisation. In most cases, the code of
conduct should reflect the organisation’s 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.
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.
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1.5 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
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
➢ Quality standards attained per employee
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 Performance Indicator
To achieve a high level of customer
satisfaction.
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.
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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.
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 that are required, a breakdown of the project into tasks and assignment, along with a
budget 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.
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Work Plan Template – Year 1
Description – In this section provide a brief overview of the project timeframe and desired outcomes
Objective Action/Responsibility Performance
Outcome/s
Measurement Timeframe Risk Rating
Consultation
process and
allocation of
deliverables
In this section detail
the parties involved in
developing the
deliverables and
producing the desired
outcomes.
How will this be
achieved in a cost
effective and efficient
manner.
What is the desired
outcome?
Develop specific
statements of the
KPI’s or KRA’s.
When is this to be
finalised?
How will this be
measured?
Provide quantitative
benchmarks that
allow the project
deliverables to be
assessed for
effectiveness
Provide start and
end dates or
timeframes for
each area.
What is the
organisational risk for
this action?
What is the likelihood
of negative impact
and potential harm
with this aspect of the
project.
(High, Medium, Low,
Negligible.)
Time/Budget
allocation
Adherence to
organisational
standards
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1.6 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.
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 allowing for all vulnerabilities (that
can then be quantified) to be 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
Primary tasks
Meet deadlines
Achieving sales targets
Increasing brand
Awareness
Project management
Overload/overlap of tasks
Unidentified tasks
Unforseen meetings
Fixing mistakes
Dispute resolution
Equipment issues
M
M
M
M
L
L
Secondary tasks
Technical improvement
Quality improvements
Project improvements
Team meetings
External meetings
Participating in
Organisational training
Overlap/overload of tasks
Unidentified tasks
Unforseen meetings
Fixing mistakes
Equipment issues
Dispute resolution
Change management
M
M
M
L
L
L
H
Other
Holidays
No project time
Professional
Development training
Travel
Sickness
Absence
Staff turnover/ learning curve
M
L
M
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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).
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.
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Section 2 Assess performance
2.1 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.
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.
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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.
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 party’s expectations are including:
➢ What the employees’ essential job functions are?
➢ How employees’ 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.
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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.
4. 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 manager’s responsibility to formally
appraise their team member’s performance 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 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.
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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.
4. 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.
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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.
➢ 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 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
➢ Conditions of employment
➢ Grievance procedures
➢ Recruitment policies and procedures
➢ Termination policies and procedures
➢ Wage conditions and bonus requirement
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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.
➢ The strategic or operational objectives of the position.
If your organisation can find an 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.
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.
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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
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.
http://www.managementhelp.org/perf_mng/prf_plan.html
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.
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2.2 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
➢ Union representatives (as necessary)
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.
➢ 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.
You
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2.3 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.
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
any time 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.
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2.4 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.
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
➢ 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
➢ 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.
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Section 3 Provide feedback
3.1 Provide informal feedback to staff on a regular basis
Feedback is important because it 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 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?
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 e.g.: products or tasks they are responsible for.
➢ Informal peer assessment
➢ 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.
Checklist
The feedback I provide to members is:
Clear Provable
Factual Specific
Fair Timely
Non-judgemental Understood
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3.2 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.
➢ 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.
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.
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3.3 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.
www.ntis.gov.au
Business Services Package – BSBMGT502
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 coached 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.
➢ Set clearly defined performance targets and deadlines in conjunction with the
employee which are agreed to in writing.
➢ 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.
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Larson and Richburg (2000) write that there are Seven Key Elements of Coaching. They are:
Seven Key Elements of Coaching
Effective coaching is not amorphous. It is grounded in certain basic understandings, which we call
“The Seven C’s of Successful Coaching.”
Context. The coach is able to provide appropriate and meaningful support by understanding the
issues within the context of the organisation’s business environment, culture and competitive
demands.
Clarity. The participating leaders are able to clarify objectives, expectations for change, and how the
coaching process will be conducted.
Commitment. The organisation is committed to supporting the leader and the leader is committed
to working for change.
Coachability. The presenting issue and the people it affects are amenable to coaching, and the
situation can best be addressed through one-on-one coaching. In reality, there are some situations
where coaching would not be productive, and a responsible coach knows when to turn down an
engagement on the basis of the coachability issue.
Courses of Action. The coach and the leader established a development plan with clearly stated
objectives and realistic strategies to help the leader become more effective
Confidentiality. A “must” of trust building
Chemistry. Leader/coach rapport and compatibility characterise interactions and secure the
relationship
When leadership coaching meets these “7 C’s” criteria, transformational learning is not only
possible but probable. Some of the results are subtle; some are dramatic, including:
➢ Incremental improvements, such as upgraded skills, new practices and behaviours, doing things
better, and relating to others with greater self-awareness
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3.4 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
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3.5 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.
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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. 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.
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Section 4 Manage follow up
4.1 Write and agree on 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.
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
➢ Working with a mentor
Job Description
Areas for Performance Development
Performance Plan
Performance Appraisal
New Performance Plan
Observation
Informal Feedback
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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 on 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.
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4.2 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.
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4.3 Reinforce excellence in performance through recognition and continuous
feedback
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
➢ 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
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4.4 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.
➢ Conduct a review meeting with the employee at the conclusion of the coaching
or training program.
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.
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4.5 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
➢ Depression
Counselling may also be helpful for specific work related difficulties such as:
➢ Lack of confidence
➢ Feeling undervalued
➢ Career crisis
➢ Workplace stress
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.
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4.6 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.
5. 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.
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4.7 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 www.fwa.gov.au
➢ Australian Human Rights Commission at www.hreoc.gov.au
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 http://www.hrc.act.gov.au/
NSW Anti-Discrimination Board http://www.lawlink.nsw.gov.au/adb
NT Anti-Discrimination Commission http://www.nt.gov.au/justice/adc/index.htm
QLD Anti-Discrimination Commission http://www.adcq.qld.gov.au/
SA Equal Opportunity Commission http://www.eoc.sa.gov.au/
TAS Office of the
Anti-Discrimination Commissioner http://www.antidiscrimination.tas.gov.au/
VIC Equal Opportunity and Human Rights
Commission http://www.humanrightscommission.vic.gov.au/
WA Equal Opportunity Commission http://www.eoc.wa.gov.au/Index.aspx
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 http://www.ors.act.gov.au/workcover/index.html
NSW WorkCover http://www.workcover.nsw.gov.au/pages/default.aspx
NT WorkSafe http://www.worksafe.nt.gov.au/
QLD WorkCover http://www.workcoverqld.com.au/
SA WorkSafe http://www.safework.sa.gov.au/
TAS WorkCover http://www.workcover.tas.gov.au/
VIC WorkSafe http://www.worksafe.vic.gov.au/wps/wcm/connect/wsinternet/WorkSafe
WA WorkCover http://www.workcover.wa.gov.au/Default.htm
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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 co-workers
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.
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
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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 the way in which they did.
➢ The employee is advised of the dismissal and is given a chance to respond.
➢ 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
➢ 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.
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There are special arrangements for small business including:
1. 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.
http://www.fairwork.gov.au/termination/unfair-dismissal/pages/small-business-fair-dismissal-
code.aspx
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.
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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
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.
Congratulations!
You have now finished the unit ‘Manage people performance’
References
Bacal, R (1999), Performance Management McGraw Hill
FairWork Ombudsman, 09-Best Practice Guide – Managing Underperformance
URL Address: www.fwa.gov.au , Date: 02.02.2011
Larson, P.S & Richburg, M, (2000) Leadership Management URL Address:
http://www.khup.com/download/15_keyword-on-the-job-coaching/leadership-coaching.pdf
Access Date: 1.01.2011
Luecke, R. & Hall, B.J () Performance Management: Measure and improve the effectiveness of your
employees.
Performance Management: Performance Plan
URL Address: http://www.managementhelp.org/perf_mng/prf_plan.htm, Access Date: 16.01.2011
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