bsbmgt502
khadkaymaharaj_7
BSBMGT502_CACLearnerGuide.pdf
Learner Guide
BSBMGT502 Manage People Performance
This learner guide is copyright protected and belongs to:
TABLE OF CONTENTS
TABLE OF CONTENTS............................................................................................................................... 2
UNIT INTRODUCTION ............................................................................................................................. 5
ABOUT THIS RESOURCE .......................................................................................................................... 5
ABOUT ASSESSMENT ................................................................................................................................. 6
ELEMENTS AND PERFORMANCE CRITERIA ...................................................................................... 8
PERFORMANCE AND KNOWLEDGE EVIDENCE ............................................................................... 10
PERFORMANCE EVIDENCE ................................................................................................................... 10
KNOWLEDGE EVIDENCE ........................................................................................................................ 10
ASSESSMENT CONDITIONS .................................................................................................................... 11
PRE-REQUISITES ....................................................................................................................................... 11
TOPIC 1 – ALLOCATE WORK .................................................................................................................... 12
CONSULT RELEVANT GROUPS AND INDIVIDUALS ON WORK TO BE ALLOCATED AND
RESOURCES AVAILABLE .......................................................................................................................... 13
CONSULTING WITH INTERNAL GROUPS AND INDIVIDUALS ............................................................................................... 14 CONSULTING WITH EXTERNAL GROUPS AND INDIVIDUALS .............................................................................................. 14 DECIDING WHO TO CONSULT AND WHEN ............................................................................................................................ 15 COMMUNICATING YOUR PLANS AND COLLABORATING WITH OTHERS ........................................................................... 15 METHODS OF WORKPLACE COMMUNICATION ..................................................................................................................... 16
DEVELOP WORK PLANS IN ACCORDANCE WITH OPERATIONAL PLANS ................................... 17
ALLOCATE WORK IN A WAY THAT IS EFFICIENT, COST EFFECTIVE AND OUTCOME
FOCUSSED .................................................................................................................................................. 20
ALLOCATING WORK THROUGH DELEGATION...................................................................................................................... 20
CONFIRM PERFORMANCE STANDARDS, CODE OF CONDUCT AND WORK OUTPUTS WITH
RELEVANT TEAMS AND INDIVIDUALS .............................................................................................. 22
CHOOSE AND USE THE MOST SUCCESSFUL METHOD OF INSTRUCTION ........................................................................... 24
DEVELOP AND AGREE PERFORMANCE INDICATORS WITH RELEVANT STAFF PRIOR TO
COMMENCEMENT OF WORK ................................................................................................................ 26
KEY RESULTS AREAS (KRA) .................................................................................................................................................... 26 KEY PERFORMANCE INDICATORS (KPI) ............................................................................................................................... 26
For example Job-Role: Store Manager ....................................................................................................................................... 27
CONDUCT RISK ANALYSIS IN ACCORDANCE WITH THE ORGANISATIONAL RISK
MANAGEMENT PLAN AND LEGAL REQUIREMENTS ...................................................................... 28
TOPIC 2 - ASSESS PERFORMANCE ........................................................................................................ 30
DESIGN PERFORMANCE MANAGEMENT AND REVIEW PROCESSES TO ENSURE
CONSISTENCY WITH ORGANISATIONAL OBJECTIVES AND POLICIES ...................................... 30
Explain performance measurement systems utilised within the organisation................................................................................. 31 PERFORMANCE MANAGEMENT PROCESSES ........................................................................................................................... 35
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TRAIN PARTICIPANTS IN THE PERFORMANCE MANAGEMENT AND REVIEW PROCESS ..... 36
CONDUCT PERFORMANCE MANAGEMENT IN ACCORDANCE WITH ORGANISATIONAL
PROTOCOLS AND TIME LINES ............................................................................................................. 38
MONITOR AND EVALUATE PERFORMANCE ON A CONTINUOUS BASIS ................................... 39
TOPIC 3 - PROVIDE FEEDBACK ............................................................................................................. 40
PROVIDE INFORMAL FEEDBACK TO STAFF ON A REGULAR BASIS ............................................ 40
PROVIDING EFFECTIVE FEEDBACK ........................................................................................................................................ 41 Focus on specific behaviours ........................................................................................................................................................ 42 Consider the timing of feedback .................................................................................................................................................. 42 Focus on behaviour that the receiver can do something about ....................................................................................................... 43 Consider the needs of the person receiving the feedback, as well as your own ................................................................................ 43 Solicit feedback rather than impose it ......................................................................................................................................... 43
ADVISE RELEVANT PEOPLE WHERE THERE IS POOR PERFORMANCE AND TAKE
NECESSARY ACTIONS ............................................................................................................................. 45
POOR TASK ALLOCATION ......................................................................................................................................................... 45 POOR COMMUNICATION OF THE TASK REQUIREMENTS ..................................................................................................... 45 INSUFFICIENT SUPPORT............................................................................................................................................................. 46 MOTIVATIONAL PROBLEMS ...................................................................................................................................................... 46 ADDRESSING POOR PERFORMANCE ....................................................................................................................................... 47 TACKLING POOR PERFORMANCE ............................................................................................................................................ 47
PROVIDE ON-THE-JOB COACHING WHEN NECESSARY TO IMPROVE PERFORMANCE AND
TO CONFIRM EXCELLENCE IN PERFORMANCE ............................................................................. 49
For knowledge-based details ....................................................................................................................................................... 50 For skill based details ................................................................................................................................................................ 51
IDENTIFYING IMPROVEMENTS ................................................................................................................................................ 52
DOCUMENT PERFORMANCE IN ACCORDANCE WITH THE ORGANISATIONAL
PERFORMANCE MANAGEMENT SYSTEM .......................................................................................... 54
CONDUCT FORMAL STRUCTURED FEEDBACK SESSIONS AS NECESSARY AND IN
ACCORDANCE WITH ORGANISATIONAL POLICY ............................................................................ 55
THE PURPOSE OF THE PERFORMANCE APPRAISAL ............................................................................................................... 55 THE EVALUATION PURPOSE ..................................................................................................................................................... 55 THE DEVELOPMENT PURPOSE ................................................................................................................................................. 55 TYPES OF APPRAISAL ................................................................................................................................................................. 56 PROCESS ....................................................................................................................................................................................... 58 INITIAL SELF-REVIEW BY THE EMPLOYEE ............................................................................................................................. 60 INITIAL REVIEW OF THE EMPLOYEE’S PERFORMANCE BY THE MANAGER(S).................................................................. 60 MEETING OF THE EMPLOYEE AND THE MANAGER(S) ........................................................................................................ 60 PROCESS ....................................................................................................................................................................................... 61
Initial briefing ............................................................................................................................................................................ 61 Review the appraisal forms ......................................................................................................................................................... 62 Discussion .................................................................................................................................................................................. 62 Actions ...................................................................................................................................................................................... 62 Documentation ........................................................................................................................................................................... 62 Dangers ..................................................................................................................................................................................... 63
TOPIC 4 - MANAGE FOLLOW UP ............................................................................................................ 64
WRITE AND AGREE ON PERFORMANCE IMPROVEMENT AND DEVELOPMENT PLANS IN
ACCORDANCE WITH ORGANISATIONAL POLICIES ........................................................................ 64
Example of an overall Performance Rating Scale ....................................................................................................................... 65 Describe staff development options and information ..................................................................................................................... 65
SEEK ASSISTANCE FROM HUMAN RESOURCES SPECIALISTS, WHERE APPROPRIATE .......... 68
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REINFORCE EXCELLENCE IN PERFORMANCE THROUGH RECOGNITION AND
CONTINUOUS FEEDBACK ...................................................................................................................... 69
MONITOR AND COACH INDIVIDUALS WITH POOR PERFORMANCE ......................................... 70
PROVIDE SUPPORT SERVICES WHERE NECESSARY ........................................................................ 71
COUNSEL INDIVIDUALS WHO CONTINUE TO PERFORM BELOW EXPECTATIONS AND
IMPLEMENT THE DISCIPLINARY PROCESS IF NECESSARY .......................................................... 72
PERSONAL AND WORK RELATED FACTORS ........................................................................................................................... 72 COUNSELLING PHASES .............................................................................................................................................................. 73
Exploration ............................................................................................................................................................................... 73 Understanding ........................................................................................................................................................................... 73 Actions ...................................................................................................................................................................................... 74
SKILLS NEEDED IN PERFORMANCE COUNSELLING ............................................................................................................. 74 Gather information .................................................................................................................................................................... 74 Explain details .......................................................................................................................................................................... 74 Problem solve ............................................................................................................................................................................. 75 Follow-up................................................................................................................................................................................... 75
TERMINATE STAFF IN ACCORDANCE WITH LEGAL AND ORGANISATIONAL
REQUIREMENTS WHERE SERIOUS MISCONDUCT OCCURS OR ONGOING POOR-
PERFORMANCE CONTINUES ................................................................................................................ 76
Explain unlawful dismissal rules and due process ...................................................................................................................... 77 UNFAIR DISMISSAL ..................................................................................................................................................................... 77
RELEVANT LEGISLATION THAT MAY IMPACT MANAGING PEOPLE IN ANY BUSINESS ........ 81
Outline relevant legislative and regulatory requirements ............................................................................................................... 81 ANTI-DISCRIMINATION LEGISLATION .................................................................................................................................... 81 INDUSTRIAL RELATIONS LEGISLATION ................................................................................................................................. 81 AWARDS AND AGREEMENTS .................................................................................................................................................... 83
Outline relevant awards and certified agreements ......................................................................................................................... 83 WHS CODES OF PRACTICE ....................................................................................................................................................... 84 ETHICAL PRINCIPLES ................................................................................................................................................................. 85 PRIVACY LAWS ............................................................................................................................................................................ 86
SUMMARY ................................................................................................................................................... 87
REFERENCES ............................................................................................................................................ 88
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UNIT INTRODUCTION
This resource covers the unit BSBMGT502 - Manage people performance.
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.
ABOUT THIS RESOURCE
This resource brings together information to develop your knowledge about this unit. The
information is designed to reflect the requirements of the unit and uses headings to makes it
easier to follow.
You should read through this resource to develop your knowledge in preparation for your
assessment. At the back of the resource are a list of references you may find useful to review.
As a student it is important to extend your learning and to search out textbooks, internet sites,
talk to people at work and read newspaper articles and journals which can provide additional
learning material.
Your trainer may include additional information and provide activities, PowerPoint slide
presentations, and assessments in class to support your learning.
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ABOUT ASSESSMENT
Throughout your training we are committed to your learning by providing a training and
assessment framework that ensures the knowledge gained through training is translated into
practical on the job improvements.
You are going to be assessed for:
Your performance and knowledge using written and practical activities that apply to a
workplace environment.
Your ability to apply your learning to the workplace.
Your ability to recognise common principles and actively use these on the job.
You will receive an overall result of Competent or Not Yet Competent for the assessment of this
unit. The assessment is a competency based assessment, which has no pass or fail. You are either
competent or not yet competent. Not Yet Competent means that you still are in the process of
understanding and acquiring the skills and knowledge required to be marked competent.
The assessment process is made up of a number of assessment methods. You are required to
achieve a satisfactory result in each of these to be deemed competent overall.
All of your assessment and training is provided as a positive learning tool. Your trainer/assessor
will guide your learning and provide feedback on your responses to the assessment. For valid and
reliable assessment of this unit, a range of assessment methods will be used to assess practical
skills and knowledge.
Your assessment may be conducted through a combination of the following methods:
Written Activity
Case Study
Observation
Practical tasks
Short answer questions
Third Party Report
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The assessment tool for this unit should be completed within the specified time period following
the delivery of the unit. If you feel you are not yet ready for assessment, discuss this with your
trainer/assessor.
To be successful in this unit, you will need to relate your learning to your workplace. You may be
required to demonstrate your skills and be observed by your assessor in your workplace
environment. Some units provide for a simulated work environment, and your trainer and
assessor will outline the requirements in these instances.
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ELEMENTS AND 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 focussed
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
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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 AND KNOW LEDGE EVIDENCE
This describes the essential knowledge and skills and their level required for this unit.
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
Note: If a specific volume or frequency is not stated, then evidence must be provided at least
once.
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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ASSESSMENT CONDITION S
Assessment must be conducted in a safe environment where evidence gathered demonstrates
consistent performance of typical activities experienced in the management and leadership field
of work and include access to:
Relevant legislation
Workplace documentation and resources
Case studies and, where possible, real situations
Interaction with others
Assessors must satisfy NVR/AQTF assessor requirements.
PRE-REQUISITES
This unit must be assessed after the following pre-requisite unit:
There are no pre-requisites for this unit.
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TOPIC 1 – ALLOCATE WORK
Welcome to the unit BSBMGT502 - Manage people performance.
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.
In this unit you will learn how to:
Allocate work
Assess performance
Provide feedback
Manage follow up
Let’s begin!
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CONSULT RELEVANT GROUPS AND INDIVIDUALS ON WORK
TO BE ALLOCATED AND RESOURCES AVAILABLE
When allocating work, it is important to give team members as much information as possible
about the work you require them to do and to make sure they understand and accept the
delegation you are giving them. People are not mind readers; therefore, they cannot be expected
to meet your expectations unless you fully brief them in a clear and unambiguous way.
Your staff must not only be well informed about the specific nature of the work you wish them
to undertake and its overall objective, but also the timeframe in which the work must be
completed and any other special conditions or requirements of the work.
Establishing a channel of clear and open communication is also essential if you want your people
to be committed to, and excited about, achieving their own particular objectives and the
organisation’s goals. A policy of open and honest communication on all issues relating to work
plans and strategies will enable each employee to know exactly what he or she is meant to be
doing at any given time, and why, and encourages interaction and constructive problem solving.
Being ‘available’ for your staff is extremely important, as is keeping them ‘in the loop’ about any
important decisions you make, why you are making them and how they might affect the team.
When you give instruction and allocate work, make sure the individuals to whom you assign the
work are realistically in a position to commit to the project or task and not simply taking on too
much work because they don’t know how to say no to a manager. If you have a positive
organisational culture and your team feels they can talk openly to you about any difficulties or
concerns they may have, then these situations will be rare. However, you should periodically
review workloads to ensure that the distribution in your department or section is fair and
manageable all round.
In your role as a manager, there will be many situations where you need to consult with other
individuals and groups in order to successfully implement your work plans.
These individuals or groups may be either:
Internal
External
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Remember, few teams work completely in isolation and workload issues within your section
often affect other individuals and groups working in or with an organisation. Therefore, keeping
all relevant stakeholders up-to-date with your plans will really help to avert misunderstandings
and problems later on.
CONSULTING WITH INTERNAL GROUPS AND INDIVIDUALS
You must also bear in mind that the decisions you make as manager of a team or department
within an organisation will also have an impact on the rest of that organisation to some degree,
so consulting widely on issues of mutual interest is vital.
Individuals and groups within an organisation need to communicate regularly to be efficient.
Organisations are essentially just networks of people, each having a particular skill set, who rely
on each other to get the job done.
No single person in any organisation is fully equipped to perform every task required by that
organisation. Individuals—indeed, whole departments—need to work collaboratively in order to
fulfil their own work requirements, so you should always consult with colleagues with regard to
any areas of mutual concern and keep them abreast of your timelines and all significant
developments they should know about.
CONSULTING WITH EXTERNAL GROUPS AND INDIVIDUALS
In most management jobs, you will not only need to interact regularly with other departments
and their managers, but also with a range of different external stakeholders. For example:
An IT manager might interact with: A fashion manager might interact with:
Software and hardware distributors Clothing suppliers
External training organisations Other stores in the shopping centre
Network providers Members of the public
Outlets in other locations
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DECIDING WHO TO CONSULT AND WHEN
Deciding which internal or external stakeholders need to be consulted on your work allocation
plans largely depends on their level of involvement. If you happen to work in a high-volume
business where you deal with a large number of suppliers, you would not be expected to consult
with every single supplier on all of your work plans and strategies. However, do consider that in
some cases, a long-term or regular supplier can play a significant role in helping an organisation
achieve its objectives and a manager in these instances would be wise to consult externally.
For instance, a grocery store that contracts to one major delivery company would have a valuable
operational partnership, so letting the delivery company know in advance about changes to work
plans and to discuss any concerns that they may have would be good business practice in this
situation. Keeping the delivery company informed throughout the consultation process provides
their management with an opportunity to re-schedule their own internal workflow accordingly
and, as a result, the delivery company would be better placed to meet its client’s future
operational needs and requirements.
COMMUNICATING YOUR PLANS AND COLLABORATING WITH OTHERS
Individuals, groups and even entire sections of an organisation need to work together to achieve
organisational outcomes; effective communication and the ability to collaboratively schedule
activities are therefore paramount.
Communication is a fundamental element of all organisational work, and a winning work plan
requires a good communications strategy. The way people communicate in the workplace can
take many forms but despite today’s high level of technology, workplace communication still
revolves around the principles of basic conversation.
Conversation and communication skills are extremely important when interacting and negotiating
with relevant groups and individuals both internal, and external to your organisation. To operate
effectively as a manager you need to apply the same positive principles of consultation and open
communication that you encourage from your team to all of your dealings in the workplace.
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 work plans.
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METHODS OF WORKPLACE COMMUNICATION
Once you have identified everyone who might be affected by your work allocation plans, you
must decide on the most appropriate way of keeping them informed about your intentions and
timelines.
Your communications strategy may be formal or informal depending on the situation. Some
work plans or projects will function more smoothly if you schedule short, regular meetings with
all key stakeholders to discuss areas of mutual interest or concern. However, it may be more
expedient in other cases to simply send an occasional email or memo updating your plans.
Some of the most common forms of workplace communication include:
Scheduled conference calls
Group briefings
Memo
Bulletin board
Intranet
Individual meetings
Group meetings
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DEVELOP WORK PLANS IN ACCORDANCE WITH
OPERATIONAL PLANS
In order to allocate work in accordance with operational plans retailers conduct a job analysis.
Job Analysis is the process used to identify and determine the particular job duties and
requirements of detail and the relative importance of these duties for a given job. Job Analysis is
a process where judgements are made about data collected on a job.
An important concept of Job Analysis is that the analysis is conducted on the job, not the person. While Job Analysis data may be collected from incumbents through interviews or questionnaires, the product of the analysis is a description or specifications of the job, not a description of the person.
PURPOSE OF JOB ANALYSIS
The purpose of Job Analysis is to establish and document the relatedness of employment procedures such as training, selection, compensation, and performance appraisal to the job.
DETERMINING TRAINING NEEDS
Job Analysis can be used in training to identify or develop:
Training content
Assessment tests to measure effectiveness of training
Equipment to be used in delivering the training
Methods of Training
Job Analysis can be used in compensation to identify or determine:
Skill levels
Compensable job factors
Work environment
Responsibilities
Required level of education
Job Analysis can be used in selection procedures to identify or develop:
Job duties that should be included in advertisements for vacant positions
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Appropriate salary level for the position
Minimum requirements for screening applicants
Interview questions
Selection tests/instruments
Applicant appraisal/evaluation forms
Orientation materials for applicants/new hires
PERFORMANCE REVIEW Job Analysis can be used in performance review to identify or develop:
Goals and objectives
Performance standards
Evaluation criteria
Length of probationary periods
Duties to be evaluated
A typical method of Job Analysis would be to give the incumbent a simple questionnaire to identify:
Job duties
Responsibilities
Equipment used
Work relationships
Work environment
The completed questionnaire would then be used to assist the Job Analyst conduct an interview of the incumbent. A draft of the identified job duties, responsibilities, equipment, relationships, and work environment would be reviewed with the supervisor for accuracy. The Job Analyst would then prepare a job description and/or job specifications. The method that you may use in Job Analysis will depend on practical concerns such as the type of job, number of jobs, the number of incumbents, and location of jobs. WHAT ASPECTS OF A JOB ARE ANALYSED? Job Analysis should collect information on the following areas:
Duties and Tasks: The basic unit of a job is the performance of specific tasks and duties.
Information to be collected about these items may include: frequency, duration, effort, skill,
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complexity, equipment, standards, etc
Environment: This may have a significant impact on the physical requirements to be able to
perform a job. The work environment may include unpleasant conditions such as offensive odours
and temperature extremes. There may also be definite risks to the incumbent such as noxious
fumes, radioactive substances, hostile and aggressive people, and dangerous explosives
Tools and Equipment: Some duties and tasks are performed using specific equipment and tools.
Equipment may include protective clothing. These items need to be specified in a Job Analysis
Relationships: Supervision given and received. Relationships with internal or external people
Requirements: The knowledge, skills, and abilities (KSA's) required to perform the job. While
an incumbent may have higher KSA's than those required for the job, a Job Analysis typically
only states the minimum requirements to perform the job
- "Job Analysis." Web. 29 Jul. 2015 <http://www.job-analysis.net/G000.htm>
1
You will then use the above information in order to create the work plan. The work plan is a
document that will outline the duties and tasks of the work to be done, details of the
environment in which the work will occur, details of any equipment needed for the tasks, details
on the contacts and relationships that the worker will need for that task and the overall KSA’s
that the worker will require to complete the tasks.
Your organisation will have a specific template that you will need to use to document the work
plan. You must ensure that you follow any policies and procedures in place for the
documentation of work plans.
1 "Job Analysis." Web. 29 Jul. 2015 <http://www.job-analysis.net/G000.htm>
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ALLOCATE WORK IN A WAY THAT IS EFFICIENT, COST
EFFECTIVE AND OUTCOME FOCUSSED
ALLOCATING WORK THROUGH DELEGATION
Delegation is one of the most important management skills. Good delegation saves you time,
develops your people and motivates. The poor delegation will cause you frustration, de-motivates
and confuses the other person, and fails to achieve the task or purpose itself.
The Steps to Delegating:
Define the task: Confirm in your own mind that the task is suitable to be delegated.
Select the individual or team: What are your reasons for delegating to this person or team? What
are they going to get out of it? What are you going to get out of it?
Assess ability and training needs: Is the other person or team of people capable of doing the task?
Do they understand what needs to be done? If not, you can't delegate.
Explain the reasons: You must explain why the job or responsibility is being delegated. And why
to that person or people? What are its importance and relevance? Where does it fit in the overall
scheme of things?
State required results: What must be achieved? Clarify understanding by getting feedback from the
other person. How will the task be measured? Make sure they know how you intend to decide
that the job is being successfully done.
Consider resources required: Discuss and agree what is required to get the job done. Consider
people, location, premises, equipment, money, materials, other related activities and services.
Agree deadlines: When must the job be finished? Or if an ongoing duty, when are the review
dates? And if the task is complex and has parts or stages, what are the priorities?
At this point, you may need to confirm understanding with the other person of the previous points, getting ideas and interpretation. As well as showing you that the job can be done, this helps to reinforce commitment.
Support and communicate: Think about who else needs to know what's going on, and inform
them
Feedback on results: It is essential to let the person know how they are doing, and whether they
have achieved their aims. If not, you must review with them why things did not go to plan, and
deal with the problems. You must absorb the consequences of failure, and pass on the credit for
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success
-" Allocating Work Through Delegation." Web. 29 Jul. 2015 <http://www.businessballs.com/delegation.htm>.
2
Before delegating the work, you must decide on the appropriate personnel to complete particular
tasks in the store and indeed the cost involved. This includes consideration of the following
questions:
Which personnel are already trained and competent in that task’s completion?
It may be advantageous to select a team member who is already trained and competent at
performing the task. By allocating the most experienced team member to complete the task it
will be done more efficiently therefore at a reduced labour cost.
Who is not currently competent at completing that task, but needs to learn how to do it?
It may be an opportunity to train another team member at this time. This may cost more in the
short term, however, to ensure that particular skills are not held by only one team member, it is
appropriate to use a new task as an opportunity to teach another employee how it is completed.
Can the tasks be shared evenly among team members?
When tasks are seen to be either particularly enjoyable or unattractive, it may be appropriate to
share them with the team so no-one feels that other team members receive more favorable
treatment. This may also result in increased productivity therefore reducing labour cost.
What current work-load needs to be taken into consideration?
The current workload of team members needs to be considered when allocating tasks. For
example, A staff member who is already struggling with a delivery of new merchandise may not
be the appropriate choice to complete another task. This may result in the work not being
completed to standard therefore labour costs will increase when it needs to be completed again.
What workplace requirements need to be considered?
Workplace Industrial Relations and/or Health & Safety requirements must be considered when
allocating team members to particular tasks so that all business and legal obligations are being
met. Mistakes in this area can be very costly to you, your team and your business.
2 " Allocating Work Through Delegation." Web. 29 Jul. 2015 <http://www.businessballs.com/delegation.htm>.
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CONFIRM PERFORMANCE STANDARDS, CODE OF CONDUCT
AND WORK OUTPUTS WITH RELEVANT TEAMS AND
INDIVIDUALS
Prior to commencing a task, you must discuss performance expectations/standards and goals for
groups and individuals to channel their efforts toward achieving organisational objectives.
Measures that will be used to determine whether expectations and goals are being met need to be
decided upon. Involving employees in this process helps them understand the goals of the
organisation, what needs to be done, why it needs to be done, and how well it should be done.
Standards of Performance should:
Define the Job in relation to Work Area and Strategic Objectives (KRAs)
Differentiate the job from others in the Section/Team/Work Area
Integrate the Job's Performance with the whole Section /Team/Work Area
Be job related and realistic
Be worded in clear and concise language and terms
Be framed consistently with the organisational culture, procedures and practices.
Reflect the performance context (location and environment)3
Performance standards represent the level of performance and behaviour necessary for the job to
be done successfully.
They can be determined by management in the following ways:
Observation
Past performance records
Time/work studies
3 "Standards of Performance." Web. 29 Jul. 2015 <http://www.powershow.com/view1/1a4720- ZDc1Z/Introduction_to_Management_and_Leade rship_Cluster_4_Manage_performance_and_knowledge_Show_1_People_powerpoint_ppt_pr>.
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Production/technical information
Industry standards
Consultation with employees
Benchmarking (best practice)
With due consideration for the team member’s experience and abilities, the manager needs to
ensure that tasks are completed with the full knowledge of the standards required.
This includes an appropriate level of information about the task, including consideration of the
following:
Requirement Standards examples
Task Instructions Explicit procedure steps to be followed for the task, such as Ticket stock
Quantity Completion of a set number of items such as:
Price mark the contents of three cartons of stock
Quality Such as:
Accurate ticketing
Quality service
Following procedures
Safety and risk Using correct equipment
Using equipment safely
Using safe lifting and manual handling skills
Aware of own safety and safety of others
Time Completion of task by a defined time of day such as:
Fully completed by close of business today
The manager must also ensure that there is understanding by the team member prior to
commencing the task and commitment to meeting the identified standards and requirements.
This may involve only a few brief words in passing conversation or may require an extensive
discussion before the task is commenced.
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The manager needs to encourage feedback from the team member to ensure that he/she
understands the requirements of the task prior to its commencement.
Performance standards are targets and as such, where possible should be expressed objectively.
That means expressing the standard in quantifiable terms such as:
The waiting time before acknowledging a customer
The number of registers to be open at one time
Time is taken to complete a task
Deadline for completion
CHOOSE AND USE THE MOST SUCCESSFUL METHOD OF INSTRUCTION
Employees and work teams need to have clear guidance on the work that they are expected to
perform. In retail environments, managers generally issue their instructions:
Verbally face-to-face or via the telephone
Using informal written communication such as memos, work diaries, emails, etc.
Managers need to consider the most appropriate method to issue work instructions so that team
members:
Are clear about what is expected of them
Are not offended or de-motivated
Remain enthusiastic and willing to participate
There are different types of work instructions that managers use to alert team members to
complete particular tasks. These include:
Direct and explicit instructions
These are instructions that are issued very directly. They normally contain very obvious
information and are very clear about what has to be done and how it is to be completed. These
are useful for issuing details to people who have limited experience with that skill/work
requirement and/or limited abilities or motivation.
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Request instructions
These are usually presented as a closed question starting with words including “Can you” or
“Would you”. They are a softer approach when compared to direct instruction. Request
instructions are useful when dealing with experienced and willing team members who have
sufficient levels of experience to understand what is required.
Conditional work instructions
Conditional instructions are similar to request instructions except that they allow the team
member to manage the task without being given specific details. They are useful for more
experienced team members who are already familiar with the required methods and standards.
They are also useful to engender initiative and enterprise by allowing employees to work out their
own task completion method.
Implied instructions
These can be used to add a task to an existing workload. Implied instructions include examples
such as “We need to get the ticketing completed by the end of the day”,” or “If you are not busy
later, the stock counts need to be finished off”. Implied instructions are softer approaches that
are useful with self-motivated and experienced team members. However, if they are used with
less experienced employees, they may not be recognised as instructions and the task may not be
completed at all.
Volunteer work instructions
This is used when the manager explains a task that must be completed and asks for assistance to
get it done. It can be useful to identify willing employees and can also provide stimulation and a
change from other work tasks for employees who prefer to complete a variety of duties.
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DEVELOP AND AGREE PERFORMANCE INDICATORS WITH
RELEVANT STAFF PRIOR TO COMMENCEMENT OF WORK
KEY RESULTS AREAS (KRA)
Key results areas are the main areas of accountability and responsibility for a particular job role.
They relate to the areas of performance that are critical to the overall success of the business.
For example, a store manager’s role may include the following Key Results Areas:
Stock control
Sales budgets
Customer service
Team management
Management liaison
KEY PERFORMANCE INDICATORS (KPI)
Key Performance Indicators are specific targets of achievement for each Key Results Area. They
measure important aspects of a KRA and provide a way of tracking specific performance
abilities.
According to Cole (1995) measures used in KPI’s usually relate to:
Cost
Quality
Quantity
Time
Safety
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FOR EXAMPLE JOB-ROLE: STORE MANAGER
Key Result Area: Stock Control
Example Key Performance Indicators:
Cost: Achieve required stock levels and percentages of aged stock reductions as
identified on the Operational Plan
Quality: Maintain stock in good quality so mark-downs do not exceed 3% of total
sales
Quantity: Maintain optimum display of merchandise on selling floor with less than
20% of stock holding in stock reserves or receiving bays
Time: Complete all stock counts and stock take exercises within set time frames as
advised by Stock Controller
Safety: Maintain store safety compliance as identified on the Operational Plan
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CONDUCT RISK ANALYSIS IN ACCORDANCE WITH THE
ORGANISATIONAL RISK MANAGEMENT PLAN AND LEGAL
REQUIREMENTS
Unlike capital or equipment, human resources or ‘people’ are susceptible to a wide range of
influences and factors that can affect their performance in the workplace. The types of issues that
can affect the way people perform in the workplace are too varied and numerous to count.
However, some common examples include:
Insufficient knowledge about an organisation or its products and services
Lack of information with regard to the person’s own role and what he or she is
meant to achieve
Ineffective leadership and guidance
Disputes with regard to employment conditions or remuneration
Lack of appropriate and functional systems to support people in their work
OH&S issues
Lack of commitment or motivation
Limited or no opportunities for training or career development
A perceived lack of management support
Workplace bullying or harassment by a manager or another staff member
Problems at home
Problems with sickness or injury
Having a bad day
As a manager, you need to be aware of any issues that may be affecting your team’s performance
as well as ensuring all allocated work is undertaken in accordance with the organisational risk
management plan and legal requirements.
It is important to consider what might go wrong and to plan risk management strategies
accordingly. Talking to stakeholders, including your managers and legal advisers is a good way
of fully understanding the risks. The risks that an organisation faces will depend on the nature of
the business, but all businesses have some risks - for example losing a major customer or key
staff, technology changes or changes in the exchange rate.
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The risk is measured by both likelihoods of occurrence and impact of occurrence. A simple way
to do this is to score likelihood on a scale of 1 (almost impossible) to 5 (almost certain)
multiplied by impact (1 insignificant) to 5 (catastrophic). Rank the risks in order and deal with
the riskiest ones first. This can be scored, as shown in the grid below
Obviously the higher the risk rating, the more urgent the response should be. Once the list is
developed, there are four ways to treat the risk.
Risk avoidance (eliminate the risk). For example, it is possible to eliminate the risk of a car crash
by not getting into a car. However, this might not be practicable if you have to go somewhere
and it is the only means or the safest means of travel.
Risk Reduction. Reducing the chance that the risk occurs or the severity of the impact should the
risk arise. For example, antilock brakes reduce the chance of collision, wearing a seatbelt reduces
the chance of injury should a collision occur.
Risk Retention. This means accepting the risk, usually because the impact of an adverse event is
small, or because the entity has self-insurance. Large companies sometimes do not ensure their
fleet of vehicles because the cost of insurance is far greater than the damage done in a given year.
Risk Transference. Transferring the cost of an adverse event to someone else - for example
insurance, or contracting the work to someone else
The correct approach will depend on type and severity of the risk, and how comfortable the
organisation is to accept risk.
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TOPIC 2 - ASSESS PERFORMANCE
DESIGN PERFORMANCE MANAGEMENT AND REVIEW
PROCESSES TO ENSURE CONSISTENCY WITH
ORGANISATIONAL OBJECTIVES AND POLICIES
According to Johnston and Clark (2005:332), there are four main reasons for assessing and
managing performance. These are:
Communication
By alerting team members to targets and Key Performance Indicators (KPI’s) that will be
measured, the organisation is informing staff of the areas that are important to the business. This
provides a shared understanding of what is considered to be important. Communication also
allows for providing feedback so action can be taken if targets are not being achieved, or rewards
can be given where targets are being exceeded.
Motivation
Communication to team members of the areas where they should strive to meet and even exceed
organisational standards provides an extrinsic (external) motivation to employees. Knowing what
is required can assist people to focus on the critical points that have to be achieved. This level of
clarity can be an excellent motivator.
Control
Initiatives and actions can be aligned with the overall accomplishment of organisational
objectives.
Improvement
By linking performance measures with rewards and with punishments, team members have some
control over their future with the organisation based on their willingness to meet and improve on
measurable targets.4
Rewards could include: Opportunity for promotion or higher duties and acknowledgement.
Punishment could include: Reduced opportunity to be promoted, less opportunity for diverse
duties as well as counselling and dismissal.
4 Johnston and Clark (2005:332)
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EXPLAIN PERFORMANCE MEASUREMENT SYSTEMS UTILISED WITHIN THE
ORGANISATION
A performance management (or appraisal) system is a management tool used to ensure each
employee delivers the work agreed to the required standard, and to develop an employee, both in
the short and long term. It involves a formal discussion at least annually, but often six monthly,
on areas the employee is doing well in and areas where improvement is required. Some managers
see it only as a method or process to remove someone from the organisation. However, its
purpose is to lift the performance of every staff member and to maximise the productivity of the
organisation.
When managers do not take the process seriously, or fairly, or use a flawed system, employees
become disgruntled. This becomes more of an issue when pay rises or bonuses are linked to the
results of the performance appraisal.
Most companies design performance management systems to suit their own needs and to fit their
organisational objectives. This is very important. If the appraisal system does not link with the
organisational objectives, then there is a very real danger that employee’s work targets will be
different to the organisations. This leads to duplication of effort and standards being different. It
is also unique because different organisations have different requirements on what they want
from an individual.
Most commonly, interviews will involve a discussion of work performance against company-wide
objectives, and review of the rating system used to quantify performance. Sometimes the
employee will rate themselves first, and the manager will follow. Usually, there will also be a
discussion about career development plans and setting objectives for the coming year.
If you are involved in implementing a system, there are several points that are worthwhile
considering:
Consult widely when designing the system. Undertake a trial run with a small section
of the organisation before undertaking a company-wide roll out. Staff members will
need training in how to use the system as part of the roll-out.
Try to avoid off the shelf systems, adapt or design one to suit your needs to fit the
needs of your company. With multinational companies, local adaption may also be
required, to suit the local culture and nature of the local business. As mentioned
above, your performance management system needs to reflect your organisation’s
needs and values, the nature of the business, company culture, technology, client base
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and so on.
Ratings should be based, as far as possible on quantitative data. Wherever possible,
try to avoid designing a system where the ratings are based on subjective feel rather
than objective data. This should be backed up with comments describing the reasons
why ratings were given a certain way. There should be ratings for each area and a
measurement of the employees overall result.
An appraisal is conducted by the person’s manager. To some extent, the rating the
person receives will be determined on how well they get along. Training managers in
how to remove bias is a good idea, as is getting one one-up manager to review the
outcomes. An appeals process may be useful, as long as the line manager is not
undermined or threatened by it.
Use the same system for all employees, or at least all employees on the same level. It
enables comparisons to be more easily made. It also makes the system simpler.
Keep your system easy to use- or it will not be used correctly, or be ridiculed.
Ensure the results are documented, and not circulated to people not requiring the
information, respecting the individual’s privacy.
There are many ways that businesses choose to measure the performance of different job levels.
The following information offers two different perspectives for measuring performance.
Perspective One:
Johnson and Clark (2005) suggest the following headings are measures for service operations
managers: Finance, Operational, Development and External. These have been listed below with
examples of retail target areas that a business may measure as part of performance management.
Finance
Total costs for which the employee is responsible
Costs per sub-heading such as customer, merchandise type
Labour costs compared to target, trading patterns, etc.
Total revenue achieved and compared to targets
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Revenue by sub-headings such as per customer, per merchandise type
Operating profit of areas for which the employee is responsible
Operational
Equipment & staff availability to meet needs
Staff organisation and management
Delivery time of services to customers and other parts of the business
Facility use and maintenance
Number of faults, errors made in operational management
Development
Number of improvement suggestions made
Number of improvements made in own area of responsibility
Employee involvement in improvements
Staff satisfaction such as staff turnover and retention rates
Number of service innovations
External
Market share achievements against previous penetration
Customer satisfaction such as complaints and recommendations
Customer loyalty
New customers
Perspective Two:
An alternative view is provided by Clark et al. (2005: 310) who suggests that measures are based
on the following: Financial, Strategy driven and Benchmarking.
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Financial measures
These are the conventional measures of dollar-based indicators and
percentages/ratios.
For example, a manager may be measured on his/her ability to achieve an overall
sales budget objective.
Strategy driven measures
These relate to specific indicators that are driven by the organisation’s strategic plan.
For example, a manager may meet the conventional financial indicators by meeting or
exceeding sales for an overall sales budget. However, the manager may not meet a
strategic measure in relation to growing a particular range of merchandise or client
groups within that overall achievement.
Benchmarking:
Benchmarking compares the organisation and its component parts to “best practice”
measures. There are three types possible:
o Internal benchmarking which involves a comparison between different parts
of the organisation such as comparing different stores in a retail chain.
o Industry benchmarking which involves comparing the organisation against
other businesses in the same industry.
o Process or generic benchmarking which involves comparisons with other
industry areas or businesses that use the same broad processes. For example,
retail may logically benchmark with hospitality. However, it could also
benchmark with unrelated industries such as the airline industry where
customer focus is also central to the achievement of objectives.
Managers need to be familiar with their own business’s performance management system and
ensure that they follow its requirements when they are monitoring and appraising their staff
member’s abilities.
The manager needs to be clear about the performance gaps that are under discussion. These
should be discussed in terms of the employee’s opportunity for improvement.
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PERFORMANCE MANAGEMENT PROCESSES
The performance management process will outline the specific responsibilities of each business
unit and member of that team. For each team, this may include:
Target ratio for issuing email information over paper-based information
Clauses in new leasing and equipment purchases that include sustainability and
environmental impact statements
Team transportation tickets for communal use, especially for commuting to clients
within a city or specific location
The performance management process and the targets within the performance management
process need to be specific, identifiable and measurable.
For the performance process to be effective, specific goals and outcomes need to be stated. For
example, a specific goal would be ‘increase sales by 15% compared to the last financial year’. This
is specific. A non-specific goal may state ‘increase sales’. The performance measurement needs to
be specific, so the team member and team leader can easily understand exactly what is required.
Once there is a specific goal, there needs to be an appropriate measurement and way to measure
performance. The type of measure will depend on the performance measure. For example, a
salesperson who has a target to increase sales by 15%, compared to last financial year can have
this measured in the organisations ordering system. Using an organisational ordering and sales
system, however, would be an inappropriate measure to try to review efficiency in a factory. This
would require a different set of targets, measures and reporting processes. 5
5 http://www.infoentrepreneurs.org/en/guides/measure-performance-and-set-targets/
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TRAIN PARTICIPANTS IN THE PERFORMANCE
MANAGEMENT AND REVIEW PROCESS
A performance management system is not enough. It is important that the employee, and also
more importantly the manager, is trained in how to conduct an appraisal effectively. Being
trained and prepared usually results in a better, more balanced and accurate outcome. Below are
the areas where training is required:
Appraisals are not opportunities to deal with poor performance. Performance
appraisals should never have any surprises in them - issues that need to be resolved
should be done so promptly, not left to appraisal time.
Location and time. The interview itself should be conducted somewhere private and
in a quiet place, free of distractions. It is important that the employee is relaxed so
that opinions can be expressed openly. There should be enough time so that
everything that needs covering is done so.
Sandwiching criticism. It is recommended that wherever possible, the interview starts
and finishes on a positive note. Constructive criticism should be in the middle of the
appraisal.
Fairness of the ratings. When conducting performance management interviews, it is
important that the manager is firm but fair. Giving a ‘soft’ appraisal, where the
employee gets a grade better than they deserve does not help the employee, as it gives
him or her the wrong impression of their own abilities, and so limits their
understanding of where they need to improve. Likewise, marking someone down
unnecessarily reduces morale and stifles the employee’s desire to continue to work to
a high standard.
Make allowances for personal reasons. For example, the death of a loved one will
reduce anyone’s performance. If allowances are not made for that person, an
erroneous measurement of overall performance may be made
Concrete examples. The manager should have specific examples of (both good and/
or bad) performance that can be used for discussion. Not having examples or using
one example for the entire process does not help the employee get a complete
understanding of their abilities and limitations. In some cases, the employee will not
accept the results if there is nothing to support the judgements made.
Setting objectives. Usually, objectives are also set at this time. Objectives are projects
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or milestones the employee wants to achieve in the coming year. These can range
from areas such as further study, undertaking a project, opening a number of new
accounts or improving current systems. These objectives should be SMART. That is:
o Specific
o Measurable
o Agreed (sometimes Achievable)
o Realistic
o Time bound
Goals that are smart are far more likely to get achieved. Contrast these examples: “I want to be
better in Excel” to “I want to be capable of producing simple graphs in Excel by July”.
Let’s assume that the goals are realistic and there is an agreement between the employee and the
manager who would approve training. In the first case, the employee does not know what ‘better’
means, the goal cannot be measured (how do you know when you are ‘better’), and there is no
timeline - so the learning can be put off. In the second case, the employee knows exactly what
the target is and has a deadline to achieve it.
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CONDUCT PERFORMANCE MANAGEMENT IN ACCORDANCE
WITH ORGANISATIONAL PROTOCOLS AND TIME LINES
Most organisations will have set times when appraisals are conducted. In Australia, this is usually
in June and sometimes a second one in December, aligning with the Australian financial year.
Organisations operating in different financial years may have a different time. For example,
Australian companies that are Japanese subsidiaries have a financial year April 1 to March 30, and
so the performance appraisal is moved accordingly.
It is important to observe other protocols that exist with appraisals. These will be unique to each
organisation. For example, some companies have quotas on the percentage of people that can be
given a certain score. Statistically on a five-point scale the score of all employees should be
spread according to a bell curve, so that 2.5% of people score 1, 15% score 2, 65% score 3, 15%
score 4 and 2.5% score 5. However, some companies allow a skew to the right so that the
average score is no longer 3, but a little higher. This is usually done to manage employees’ self-
esteem, as most people believe that they are better than ‘average’.
The dark columns show the distribution of scores under a normal bell curve, the light curve
shows typical skewing.
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MONITOR AND EVALUATE PERFORMANCE ON A
CONTINUOUS BASIS
It is important to remember that performance needs to be continually monitored. There is no
value in leaving difficult issues to appraisal time when the employee has no chance to rectify
them, and undesirable behaviour or habits have become ingrained.
Performance, particularly underperformance, needs to be regularly monitored. This can be done
with mini-deadlines for part of the task to get completed. Setting goals along the way is a useful
tool to stop work being left to the last minute.
This topic is built upon in the next element. For example, if you were writing a book, you might
aim to have each chapter finished by the end of each month. Mini deadlines, aligning with the
overall deadline keep you on track.
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TOPIC 3 - PROVIDE FEEDBACK
PROVIDE INFORMAL FEEDBACK TO STAFF ON A REGULAR
BASIS
Performance feedback has a high correlation with job satisfaction and employees are generally
not satisfied when feedback in the workplace is not effectively conducted.
Feedback illustrates what interpersonal communication is all about; a combination of
information, mutual understanding and recognition.
Feedback can be:
General or be very specific
Positive or negative
Performance feedback may also be used at different times. This is generally categories as
occurring either: at
The time that the performance was observed
A separate time from the task completion
Managers need to consider the use of the primacy-recency factor. This means that people tend to
remember the first and last things that are said, more than they remember the information in the
middle.
Feedback may contain negatives – a need for improvement, as opposed to positives – a
reinforcement of excellent behaviour. A manager can choose to leave the employee with
feedback that focuses on a positive or deliberately choose to leave the employee with feedback
that focuses on a negative – such as a need for immediate improvement.
Performance feedback generally refers to informal communication in the workplace about an
employee’s abilities to meet the required outcomes and standards. The feedback and
communication are generally not documented, or it may be noted in a manager’s diary.
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It may be appropriate to give feedback at the four times listed below:
Monitoring
Monitoring is undertaken to ensure that completed tasks meet the required performance
standards and indicators, codes of conduct and also any safety and risk management
requirements, etc. This can be considered in terms of lead, critical control points and lag
indicators.
Lead indicators
This refers to measures taken during a process before it is completed. For example: when price-
ticketing stock, it would be appropriate to monitor the staff member while the task is being
undertaken to see that time, effort and quality outcomes are being met.
Critical Control Points
This refers to critical points in the process of the task, where it is crucial that quality be
maintained. This is also a lead indicator, but specifically targets the crucial points in a process
instead of the entire process. For example: when price ticketing stock, it would be appropriate to
check that the ticket details are correct and that the tickets are being applied correctly before the
entire shipment of the stock has been marked.
Lag indicators
This refers to measures at the completion of a process. It could include examining the quality of
the finished task immediately on completion, or a later monitoring to ensure that other quality
indicators have been met. For example Price ticketing stock: Immediately on completion, the
general standard could be examined. After time has elapsed, it may be appropriate to ensure that
the tickets are still attached properly and are not damaging the stock.
PROVIDING EFFECTIVE FEEDBACK
Feedback does not help resolve the causes of the problem, grievance or conflict. Consider
throwing the solution search back to the team member. Let them place the words around what
represents a satisfactory solution to the issues or matters underpinning the problem.
Listen actively and be willing to let them navigate a way to the root cause. Be prepared to
cooperate and offer assistance within your means and capabilities, even if some expectations
cannot be fully met. If a possible solution arises, confirm what can be done and be specific. Do
not raise expectations, and do not promise to take actions and adopt solutions that cannot be
delivered.
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Feedback is a vital learning tool that enables the identification of areas for improvement and the
ongoing support of learning activities. It is an important component of coaching and in
monitoring learning outcomes. Some of the reasons why feedback is not used more effectively in
organisations is that it requires communication skills that are not always present in individuals
and negative feedback is often ignored. People are usually happy to give and receive positive
feedback but often feel uncomfortable when it comes to addressing areas for improvement.
FOCUS ON SPECIFIC BEHAVIOURS
When giving feedback try to focus on the behaviour rather than the person. Avoid value
judgements such as "You have a bad attitude." Not only is a statement like this too vague to offer
any practical suggestions for improvement, it is also guaranteed to provoke a defensive reaction.
Even positive feedback should state how the person has done a good job, according to their
clearly identifiable actions. For example:
Good: "Frank, can you explain why you have not completed the ticketing for your
department? I am a bit concerned that you are falling behind schedule."
Bad: "Frank, pull your finger out with your department will you, you're never going
to finish at this rate!"
CONSIDER THE TIMING OF FEEDBACK
It is much more effective to provide feedback as soon as possible after the behaviour. This
establishes a link between the feedback and the behaviour that enables accurate reflection.
Feedback prior to the behaviour may also be effective in enabling the manager to provide
constructive advice before a mistake occurs.
For example:
Good: "Nicole, can we run over your merchandising for next week's promotion? I
think it might be good to have a run through to iron out any wrinkles before the
event."
Bad: "Nicole, your last promotional merchandising was a bit of a bomb, I think I
need to check this one out before you do another one."
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FOCUS ON BEHAVIOUR THAT THE RECEIVER CAN DO SOMETHING ABOUT
There is really no point giving feedback about someone's personality or other personal issues that
they cannot change. This is incredibly alienating for an individual and leads to feelings of anger
and resentment. This doesn't mean that some topics are not to be discussed, but it is much better
to focus sensitively on how the individual may improve using the skills at their disposal. Use
feedback to focus on goals rather than personalities.
For example:
Good: "Jim, I have noticed that you get a bit nervous when addressing the customers.
Is that how you feel? It's not a big deal; most people do get nervous when talking to
strangers. How can we deal with this? Would it help to practise with me
beforehand?"
Bad: "I think you might be a bit too introverted for this job".
CONSIDER THE NEEDS OF THE PERSON RECEIVING THE FEEDBACK, AS WELL
AS YOUR OWN
A previous recommendation suggested providing feedback straight after the event. This can be
dangerous sometimes when you are angry about what has happened. Do not use a feedback
opportunity to "dump" on the person. This might make you feel better but it will inevitably
damage your relationship. As in the previous example, attempt to understand how the other
person feels and provide your perspective in a rational manner.
For example:
Good: "Julie, I know you have a lot of work to do right now but I would really
appreciate it if you could make this your priority. I had to stay back late to finish the
last close and I would prefer it if we could work out some way of managing our
workload to get things done on time. Have you got any suggestions?"
Bad: "Julie, I had to stay back last night to finish the close and, I have to admit, I'm
not happy. When are you going to get your act together?"
SOLICIT FEEDBACK RATHER THAN IMPOSE IT
Feedback is a two-way street, you can't expect to give it without also receiving some in return.
Almost all of the previous examples of good feedback involve a question. Remember that
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questions enable you to focus the individual's attention on important underlying issues in a
productive, non-defensive manner. Your point of view is not always the best and you should not
always try to impose your view on another. Be prepared to work on an issue cooperatively and
use feedback as a useful tool for uncovering problems before they eventuate.
For example:
Good: "In the last team meeting you suggested that there might be a few problems
implementing some of the ideas that you have learnt. How would you like to address
these? What can I do to help out?"
Bad: "I heard you were having problems, can you get back to me in a few weeks if
you haven't sorted them out, and I’m really busy at the moment."
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ADVISE RELEVANT PEOPLE WHERE THERE IS POOR
PERFORMANCE AND TAKE NECESSARY ACTIONS
When tasks have not been completed to the manager’s satisfaction, remedial action must be
taken to address the situation. This includes deciding on the cause of the poor work
performance.
Poor work results can be caused by a number of factors and combinations of factors. This
includes consideration of the following:
POOR TASK ALLOCATION
If the task was allocated to an inappropriate person, then the task completion is likely to be poor.
Poor task allocation may occur because of:
Manager allocating the task to a staff member who is not capable of completing the
task properly
Insufficient employee training/skill development to complete the task to the required
standards
To manage poor task allocation, the manager will need to redeem the situation by
considering the following:
Managing to have the task completed properly so deadlines, etc. are met
Identifying and dealing with the problem that stopped the employee from completing
the task properly. This could involve development such as coaching
Recognising that particular people do not have the abilities to complete particular
tasks so they are not allocated to them again
POOR COMMUNICATION OF THE TASK REQUIREMENTS
Poor communication of the task requirements must include information about the standards to
be achieved. These include:
Time frames
Specific outcomes such as quality/quantity details
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To manage poor communication, the manager needs to reconsider the:
Communication method used
Amount of information that was given
This may identify why the communication was not clearly understood and highlight a better way
to organise the task completion next time.
INSUFFICIENT SUPPORT
This includes:
Insufficient physical resources, such as equipment or packaging, to complete the task
properly
Insufficient staff resources to simultaneously manage other tasks such as customer
service
To manage situations where tasks were not completed because of poor/insufficient resources,
the manager must consider the following:
The physical resources that need to be provided for this task to be completed
properly next time
Staff support that needs to be present so that the task can be completed properly in
the future
MOTIVATIONAL PROBLEMS
This includes:
Poor individual employee’s motivation to incorporate task completion into the day’s
routine
Poor general attitude in the store to the achievement of assigned tasks
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To manage poor motivation, the manager needs to consider what can be done to improve on
individual’s willingness and cooperation and/or to improve a general apathy that is occurring in
the business.
This includes consideration of the following:
Asking questions to identify the specifics of what is de-motivating staff members so
it can be addressed
Offering rewards such as verbal acknowledgement or the offer of other more-prized
duties for completing task to meet the required standards
Using punishments such as informal feedback, reduced hours or task allocation to
show that poor performance is linked to sustainability in the business
Improving morale in the store where possible, by involving staff opinions and ideas
in the decision making and store organisation
ADDRESSING POOR PERFORMANCE
Most people don't have a problem receiving positive feedback but it is often hard to address
areas where performance has not met expectations. People often don't want to be the bearer of
bad news for fear of offending the other person and having to deal with their defensiveness.
The following tips are for providing constructive negative feedback:
Use a source who has established credibility and respect;
Use hard data to back up your position (e.g. sales figures and other performance
measures or specific examples of poor performance);
Be objective, focus on the behaviour, not the person;
End on a positive note, e.g. "Well it's happened, what can we do about it?"
TACKLING POOR PERFORMANCE
Building a communication relationship with a staff member will rely on how well you conduct
interpersonal communication during face-to-face contact. This relationship also may have to be
the basis used to address poor performance. While the organisation may have formal processes
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for dealing with the poor performance it is still the responsibility of the relevant manager to
address the issue.
Many retail managers may wish to avoid this situation, but the cost of not doing so will cause
further problems such as those shown in the diagram below:
Poor performance may be addressed by direct interview to diagnose the 'problems/issues' or a
coaching session. However, poor performance may also lead to the counselling. Serious breaches
or repeat poor can lead to more formal grievance procedures and even dismissal.
Many managers prefer to address poor performance through the organisation's formal structures.
This method is often chosen for both legal and policy reasons. Sometimes, however, it is used
because the poor performance was not addressed early enough as the manager wished to avoid
conflict.
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PROVIDE ON-THE-JOB COACHING WHEN NECESSARY TO
IMPROVE PERFORMANCE AND TO CONFIRM EXCELLENCE
IN PERFORMANCE
Part of performance management is that managers often have to provide coaching to assist
employees to develop work skills.
Coaching:
It is essentially a non-directive form of development
It focuses on improving performance and developing individuals’ skills
Personal issues may be discussed but the emphasis is on performance at work
Coaching activities have both organisational and individual goals
It assumes that the individual is psychologically well and does not require a clinical intervention
It provides people with feedback on both their strengths and their weaknesses
It is a skilled activity which should be delivered by trained people
Coaching is just one of a range of training
and development interventions that
organisations can use to meet identified
learning and development needs. There is
a danger that coaching can be seen as a
solution for all kinds of development
needs. It is important that coaching is
only used when it is genuinely seen as the
best way of helping an individual learn
and develop. A useful decision tree tool is
reproduced below.
Coaching usually includes the following characteristics:
One-on-one interaction with the learner instead of group delivery
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Coaching provided in the workplace as opposed to separate training locations
A relationship is usually already established between the coach and the learner as
opposed to a training session where the trainer may be unknown to the learner
Coaching may occur in conjunction with a formal training program, or be a separate
development pathway for the learners.
Coaching is not telling
Coaching is an interactive process that involves both the coach and the participant in a two-way
learning situation. This means that coaches do not talk all of the time – they facilitate and manage
the employee’s learning.
Prepare for coaching
Coaches have to prepare before they coach peers or employees. This preparation includes being
able to identify the employee’s gaps in ability
Gaps in ability
Learning is considered to be a change or improvement in knowledge, skills and attitude.
These three areas are called learning domains.
Coaches need to be clear about the differences between these three domains, so they can decide
if coaching is going to be useful to improve an employee’s abilities. Coaching focuses on
knowledge and skill outcomes, as a way of influencing the employee’s attitude towards their job
and work tasks.
FOR KNOWLEDGE-BASED DETAILS
When coaches explain a point, they must remember to make the point:
Clearly
o Say the information clearly, without rambling or sweeping around the same
point too many times
Systematically
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o Explain: Say the details once through
o Activity: Provide an example or demonstration
o Summarise: Re-cap the main point if necessary
Logically
o The details should follow a logical sequence that is understood by the learner.
This could relate to:
Accepted procedures - as listed in a manual
The progression of steps through a skill
Timelines/deadlines for completion of tasks
Degree of difficulty – from easy to more difficult; known to the
unknown
Slowly
o Talking at an appropriate speed is very important. Sometimes coaches have to
slow down their speech from normal talking speed, or the learners cannot
keep up with them
FOR SKILL BASED DETAILS
Most coaching focuses on a skill. When a coach is presenting a skill in a coaching session, the
following points apply:
Ensure the learner understands any underpinning knowledge first. For example, learners need to
know:
Why they have to learn the skill
What could happen if they don’t follow the instructions
Contingencies, such as what to do if machine is broken or the procedure doesn’t
work
Demonstrate the skill twice:
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Demonstrate the skill at normal speed, so the learners can see the whole task and the
final standard that will be expected of them.
Demonstrate the skill again completing each stage slowly and with explanations.
Ensure that the learner can see what you are doing:
This may involve moving the learner. Ideally, right-handed instructors should place learners in
the following way:
Right-handed learners next to the instructor
Left handed learners opposite the instructor
However, locating the learner will depend on the type of skill being demonstrated and the
physical layout of the location and equipment.
Allow the learner to practice the skills:
Allow the learners to practice the skill slowly and then work up to an acceptable level
of speed and accuracy. This usually involves further practice in the workplace after
the initial coaching session
Coaching follow-up is linked very closely to learners needing to apply the new knowledge or
practice the new skills.
Coaches also need to evaluate if the coaching has improved performance. This can involve skill
observations to assess the level of expertise that is being achieved. This assessment may be an
informal process or it may be formally documented on personnel training/development records.
IDENTIFYING IMPROVEMENTS
This can include observing and analysing the following as appropriate:
Comparing pre-coaching abilities to post-coaching abilities
Changes in outputs related to the skills. This could include sales rates; wastage levels;
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accident/incident levels, merchandising standards, etc. as identified in the
performance appraisal
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DOCUMENT PERFORMANCE IN ACCORDANCE WITH THE
ORGANISATIONAL PERFORMANCE MANAGEMENT SYSTEM
Performance, both good and bad needs to be documented according to the organisation’s
policies and in line with the law. This will occur during a performance appraisal however it will
also need to occur when something pertinent occurs, such as discussions on performance or
concerns that are raised by the employees which might have a legal impact later. Letters from
customers, suppliers or other stakeholders should also be kept.
Records are important for future reference. It also helps new managers get an understanding of
their employees if they are coming in from outside the department or organisation. Different
organisations have different policies and procedures on what to document. In the absence of a
policy, use common sense, but it is generally better to document more than less. Remember that
these documents are sensitive and need to be treated appropriately. At the very least they should
be filed securely.
Successful documentation requires that managers follow 10 key rules:
1. Maintain a contemporaneous record
2. Define the problem or issue
3. Explain the effect of the problem or issue on your organisation
4. Be accurate in your accounts
5. Use explicit time frames
6. Refer to specific instances or a pattern of conduct
7. Be fair to the employee
8. Explain your position clearly
9. Know the facts
10. Spell out the consequence
Documents created in the employment relationship will often govern the ability of the manager
to defend human resource decisions.
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CONDUCT FORMAL STRUCTURED FEEDBACK SESSIONS AS
NECESSARY AND IN ACCORDANCE WITH ORGANISATIONAL
POLICY
Performance Appraisals are conducted as a way of formally assessing an employee’s performance
and for identifying and discussing other relevant information such as ambitions and their need
for training and development. Appraisals should not be condescending, argumentative or
patronizing.
THE PURPOSE OF THE PERFORMANCE APPRAISAL
The performance appraisals perform a number of roles including acting as a means of improving
organisational performance and success, and serving as a contract between the employer and
employee. In particular the performance appraisal serves two purposes:
1. To evaluate performance
2. To plan for the development of the individual
THE EVALUATION PURPOSE
Evaluative purposes include decisions on pay, promotion, demotion, retrenchment and
termination. This includes evaluating the employee’s contribution, variances in performance and
appropriate pay and incentives based on performance. Performance needs to be monitored and
evaluated on a continuous basis.
Note, however, that performance reviews should be used to review performance and should be
entirely separate from a wage review.
THE DEVELOPMENT PURPOSE
The results of the performance appraisal become the inputs for the employee’s development plan
and coaching. Development purposes include setting the employees future goals, identifying
areas for improvement, increasing or decreasing responsibilities, aligning priorities and areas to
continue achieving success and stretch targets.
Cole (2005:424) describes performance appraisals as helping to replace emotional decisions with
careful and systematic assessments. They assist the organisation to link individual performance
to organisational goals by allowing the manager to:
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Monitor past performance
Set future objectives/goals
Identify gaps in ability
Identify situations where staff members are in inappropriate job-roles
Develop career paths for employees
Identify training/coaching needs
Align personal goals and ambitions with company requirements and expectations
Open communication channels between different organisational levels within the
business
Maintain a permanent record of the discussion and agreements
Provide relevant information for the development of staff training and development
plans
TYPES OF APPRAISAL
Interview process
This is the most common form of employee assessment. It is primarily carried out by a
supervisor or manager in the workplace and in some cases there has been an attempt to provide a
more objective viewpoint of the individual's performance by having the interview conducted by
those other than the individual's immediate superior. The interview process is supported by
some of the information gathering methods below.
Written essay
Written essays on an employee's performance are supplied primarily by the immediate supervisor.
Problems associated with this form of appraisal are that it uses no objective measures of the
employee's performance.
Graphics rating scale
This scale provides a list of measures to evaluate an employee's performance. Graphics rating
scales as the name implies provide a scale to mark the employee against. These are easy to
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complete and are seen as effective in benchmarking employees' performance against one another
when completing simple tasks.
Critical incidence appraisal
Critical incidence appraisals provide a list of outcomes seen as critical to job performance, for
example, the completion of specific tasks. This, as an outcome based measure, can be effective
in linking individual performance to organisational outcomes.
Management by objectives
Similar to the critical incidence appraisal, however, objectives are usually set by both the manager
and the employee and an evaluation of performance against these is made at the time of the
appraisal.
When used effectively performance appraisals can produce common benefits including:
Providing a strategic communication point
Reinforcing behaviour and performance expectations
Mutual orientation towards agreed outcomes
Collaborative process to assist individual development
Leaders can recognise performance
Agreement on measures that can underpin improved planning systems
Structured performance review tied to ways to assist poor performance
Forum for feedback
Recognising individual contributions to team and enterprise performance
Canvassing individual and enterprise needs together
Direct point for information sharing on strategic issues and priorities
Contributing to awareness of operational climate and culture
Clarified responsibilities and commitment
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The key principles:
The appraisee should have a clear understanding of what is expected
The appraisee should be involved in designing the shape of the objectives/tasks of
the job
Annual performance appraisal should support regular feedback, coaching and
counselling, not be a substitute
Both the manager and the appraisee must prepare for the performance discussion
The performance discussion must be structured to permit two-way communication
so that differences can be discussed and agreement concluded
The manager must not threaten the appraiser’s self-esteem. He or she should
attempt to deal objectively with job performance
The manager must build on an appraiser’s strengths and agree development
opportunities
The appraisee should demonstrate individual commitment for performance
improvement and self-development
Performance appraisals are often undertaken annually or bi-annually as a trigger for all parties to
meet in a structured format and discuss relevant information. Appraisals may also be used when
needed as a way of initiating discussion in particular circumstances where a counselling interview
is not appropriate.
PROCESS
Businesses choose the appraisal process that suits their needs; however, it normally includes the
following components:
Alignment of job-role requirements to a performance evaluation form
An evaluation form needs to align its contents with the specifics of the employee’s
job role. The outcomes to be considered and discussed need to be objective and
measurable
They may relate to:
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Quantity of work output such as the ability to meet deadlines
o For example: Does the employee always meet work deadlines for task
completion?
Quality of work output such as overall standards achieved
o For example: Is work correctly and fully completed every time to meet
business standards?
Job knowledge in relation to store, merchandise and general company knowledge
o For example: Can the employee answer reasonable questions about stock
location?
Technical skills such as equipment use, selling skills, etc
o For example: Can the employee correctly and efficiently use the point-of-sale
terminal system?
Interpersonal skills such as teamwork and co-operative completion of work tasks
o For example: Does the employee work efficiently and cooperatively in a team
situation?
Communication skills such as telephone, writing and verbal skills
o For example: Can the employee transfer and manage phone calls; use the
intranet system?
Attendance including overall attendance and punctuality when returning from breaks
o For example: Is the employee always ready to commence work at the correct
time?
Required level of supervision including dependability when working unsupervised
o For example: Are unsupervised tasks completed correctly and efficiently?
Safety compliance such as correct use of safety equipment and following OHS
procedures
o For example: Does the employee always follow OHS procedures without
supervision or reminders?
Suitable representative of the organisation including grooming, interaction with
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customers
o For example: Does the employee present well and use appropriate language
with customers?
INITIAL SELF-REVIEW BY THE EMPLOYEE
An initial self-review allows the employee to rate him/herself against the pre-determined criteria.
By focussing on the exact requirements of the business as expressed in the self-evaluation form,
the employee is able to express their own opinion of their abilities.
The self-review may be required to be sent to the appraising manager prior to the interview, so
the manager can review and analyse the employee’s own opinion.
INITIAL REVIEW OF THE EMPLOYEE’S PERFORMANCE BY THE
MANAGER(S)
The manager’s opinion of the employee’s work performance should be completed prior to
looking at the employee’s self-evaluation. This is so the manager is not influenced by the
employee’s self-evaluation.
The manager rates the employee against the same pre-determined criteria that have been used by
the employee. By focussing on the exact requirements of the business as expressed in the self-
evaluation form, the employer is able to note their own opinion of the employee’s abilities.
Where the appraising manager is not the line manager of the employee, it may be necessary to
include the opinions of the line-manager.
MEETING OF THE EMPLOYEE AND THE MANAGER(S)
The employee and manager meet at a pre-determined time so both parties have had time to
mentally prepare and are focussed on the meeting. The meeting allows the two parties to
consider all of the work requirements and the level to which the employee has been
meeting/exceeding expectations.
This is the opportunity to ensure that the needs of both parties are met. That includes:
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What the employee may need:
Clarification of the process and purpose of the interview
Clarification of the job role, etc.
Their achievements acknowledged
Their short-falls treated professionally and in a non-threatening way
Their goals, ambitions to be treated seriously
To know what happens after the interview is completed when there is any follow-up
required (such as coaching, opportunity for advancement)
What the employer may need to know:
The employee’s goals and ambitions and how they can be aligned with business needs
The employee’s expectations and needs
How the employee perceives that their own opinion of their work performance meets
company expectations
Problems and perceived difficulties with the job-role/workplace
PROCESS
At the appraisal meeting, the manager needs to direct the conversation to ensure that the
following occurs:
INITIAL BRIEFING
This should explain the interview process:
The manager’s language, body language and chosen location for the meeting should
put the employee at ease
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REVIEW THE APPRAISAL FORMS
This should include:
Discussing commonalities between the self-appraisal and the manager’s evaluation
Discussing differences between the self-appraisal and the manager’s evaluation
DISCUSSION
This should include:
Meaningful dialogue about any points of difference in the employee’s self-evaluation
and the manager’s evaluation.
Discussion about what the employee wants to achieve within the business
Explanation of what the organisation requires for that job-role
Opportunities to change/improve
Recognition for good and high achievements
Discussion related to areas of low achievement of company requirements
ACTIONS
This should include:
Relevant details about improvement opportunities such as coaching and mentoring,
etc.
Relevant actions about job enhancement, opportunities for promotion etc.
DOCUMENTATION
Proper documentation is an essential requirement for any performance appraisal event. It is
important to ensure that this is completed and properly maintained to:
Track staff development
Comply with Industrial relations requirements
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Provide historical references when situations are reviewed in the future, especially if
promotion or termination is being considered
DANGERS
Common Problems and Barriers to Effective Use of Performance Appraisal
Lack of linkage between appraisal and corporate goals
Lack of linkage between individual appraisee's goals and outcomes from appraisal
Incompetent use of interpersonal skills by interviewer
Variations with different interviewers/assessment opinions
Irrelevant or understated performance targets
Regional variations
Unwillingness of interviewer to give colleagues bad grades
Fear of interpersonal contact by parties involved
Use of performance appraisal as an assessment and sanction tool
Failure to realise people compare ratings and need to know why variations occur
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TOPIC 4 - MANAGE FOLLOW UP
WRITE AND AGREE ON PERFORMANCE IMPROVEMENT AND
DEVELOPMENT PLANS IN ACCORDANCE WITH
ORGANISATIONAL POLICIES
The performance review may be used to provide a final summary report on an individual's
performance against the KRAs and job performance outcomes required for competent
performance in the designated job.
The performance review will provide up-to-date information on:
Actual against planned KRA achievements (individual and team)
Key Performance Indicator attainment in team (Business Unit) and individual job
performance outcomes
Consolidated progress in personal development over the period
Current or future training needs
Longer term anticipated career development goals of the individual
An overall rating of the individual for HR purposes (remuneration, succession
planning, training, etc.)
It is critical that performance outcomes are set and assessed on attainment of realistic measures
set and agreed to by both parties.
The overall rating scale at the end of the performance review would be used to derive a score for
performance in each area that would be added up to all scores in each KRA area to give a total
performance rating.
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EXAMPLE OF AN OVERALL PERFORMANCE RATING SCALE
Rating Definition Description
5 Outstanding Capabilities Performance consistently exceeds the standard expected of a fully effective employee at this level of employment. The level indicates that the candidate has delivered exceptional results against all indicators.
4 Superior Capabilities Performance exceeds the standard expected of a fully effective employee at this level of employment. This level indicates that the candidate has delivered satisfactory or better results against most indicators.
3 Effective Competence Performance fully meets the standard expected of an employee at this level of employment. This level indicates that the candidate routinely delivers satisfactory results against most indicators.
2 Adequate competence Performance just meets the standard expected of an employee at this level of employment. This level indicates that the candidate has delivered satisfactory results against most indicators covering routine task completion. It could be expected that some inexperienced employees would be rated adequate before the acquisition of a full range of competencies.
1 Unsatisfactory competence
Performance does not meet the standard expected at this level of employment. This level indicates that the candidate has failed to deliver satisfactory results against a significant number of indicators covering routine task completion.
This information will form the basis for a development plan.
DESCRIBE STAFF DEVELOPMENT OPTIONS AND INFORMATION
If performance does not meet desired performance standards, the next step is to develop or
update a performance development plan to address the performance gap.
Development Plans should be developed as a guide to control and direct the growth of the team
members’ abilities.
If they are to succeed, development plans must be:
Realistic
Plans must include realistic time frames, expectations and content.
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Achievable
Plans must include rational analysis of your abilities and your current professional and personal
responsibilities.
Challenging
Plans must contain challenges to take you out of your current comfort zone and which will keep
you interested and motivated.
Specific
Plans must contain clear details of what, when and how the plan will be implemented.
Reviewed
Plans need to include reviews to check progress as necessary to keep the plan operating.
Shared
Including a mentor or peer supporter to encourage and support.
Staff development plans should:
Be clearly developed with, and communicated to staff
Include input of the person concerned
Include and recognise current skills and knowledge levels
Pinpoint short and long term development opportunities
Respect career aspirations of each individual
Comply with the business needs of the organisation
Be implemented and followed through
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Development plans could be used to list the necessary skills you need an employee to have; and
then to assess the team member’s current ability in each area. This type of form gives managers a
document to refer to when deciding what training and/or development need to occur for each
team member.
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SEEK ASSISTANCE FROM HUMAN RESOURCES SPECIALISTS,
WHERE APPROPRIATE
Human resource specialists design, install, monitor and support all areas relating to people within
retail organisations. In large businesses, there will be a human resource team that will carry out
this function. In smaller businesses, the retail store manager may control some aspects of the
puzzle.
Managers must know the rules by which they have to operate when dealing with people.
All managers must know their legal, company and personal limits, and be prepared to seek
assistance when necessary.
Managers should refer to human resource specialists if a situation is out of their control or
expertise. It is a good idea to run all performance decisions by the human resource department
for clarification purposes after all they’re the experts!
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REINFORCE EXCELLENCE IN PERFORMANCE THROUGH
RECOGNITION AND CONTINUOUS FEEDBACK
Recognition is a communications tool that reinforces and rewards the most important outcomes.
When you recognise people effectively, you reinforce the actions and behaviours you most want
to see your team repeat.
An effective recognition system is simple, immediate, and powerfully reinforcing.
When you consider employee recognition processes, you need to develop recognition that is
equally powerful for both the organisation and the team member.
Recognition should be:
To ensure the recognition is motivating team members and adding value to the business. The
following criteria must be met:
You need to establish criteria for what performance or contribution constitutes
rewardable behaviour or actions
All team members must be eligible for the recognition
The recognition must provide specific information about what behaviours or actions
are being rewarded and recognised
Anyone who then performs at the level or standard stated in the criteria receives the
reward
The recognition should occur as close to the performance of the actions as possible,
so the recognition reinforces behaviour you want to encourage
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MONITOR AND COACH INDIVIDUALS WITH POOR
PERFORMANCE
If for whatever reason a team member continues to perform below standard after you have
allocated work and provided feedback you must return to the coaching and training steps
discussed earlier in this resource followed by close monitoring.
As you can see from the above illustration; performance management is a constant cycle, the
earlier you identify a performance problem, the easier will be to address it.
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PROVIDE SUPPORT SERVICES WHERE NECESSARY
Team members will sometimes come to you with their problems from outside work. This may be
simply to tell you what is happening as a reason for needing time off, or they might be seeking
someone to listen to their issues, at other times they might seek your help.
You should never ignore someone who comes to you seeking your assistance. If the person
simply wants to tell you their problem, let them unless you feel you are not comfortable or feel
threatened. In this situation, you should ask advice from Human resources and refer the person
to someone else. You may need to refer the person on to other services, such as a doctor or
counsellor
If you do offer help, do not tell them what they must do. Most people do not respond well to
this. Ensure that they do most of the talking and you do the listening.
People seeking help are often vulnerable. It is important to keep this in mind. You should also
remember that you are the person’s manager and you should be aware of boundary issues.
Another area where support can be offered is when an employee leaves the organisation,
especially in the case of redundancy. Outplacement is a process where the employee receives
help in preparing a resume, finding work and practising interview skills. This is particularly
helpful where the employee has been with the company for a considerable time and may be out
of practice with finding work and interviewing and is usually conducted by the Human resource
department.
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COUNSEL INDIVIDUALS WHO CONTINUE TO PERFORM
BELOW EXPECTATIONS AND IMPLEMENT THE
DISCIPLINARY PROCESS IF NECESSARY
Performance counselling refers to a process of discussing an employee’s performance with the employee, specifically to improving the standard of work performance. It is, therefore, essential that the manager is clear about the gaps that have been identified and how these are measured as part of the employee’s Job description; Key Results Areas and Key Performance Criteria.
The aim of performance counselling is essentially to have employee’s work standards meet business requirements.
Managers may delay performance counselling as it is not a pleasant aspect of their job-role. However, it is a measurable outcome that manager’s coordinate and monitor their staff and this includes dealing with poor work performance.
PERSONAL AND WORK RELATED FACTORS
Counselling an employee in relation to their performance standards can involve both work- related information and it may also involve personal information. This is because some poor work performance is related to an employee’s personal situation as opposed to their knowledge and skills to physically perform the work tasks. Personal factors may be affecting the employee’s life in a positive or negative way, but if it is impacting on their work performance then it must be addressed.
For example:
Positive personal factors
Negative personal factors
New romantic relationship Relationship disharmony/divorce
Marriage Abuse and bullying
Birth of a child/pregnancy Financial hardship
Impending party/celebration Problems with
children/siblings/parents
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COUNSELLING PHASES
According to Cole (2005:411), counselling can work through three different phases:
Exploration
Understanding
Action
EXPLORATION
This phase can include background research into the problem that includes:
Deciding if the employee had clear guidelines and instructions in the first place
If the job was well designed and within the reasonable capacity of the employee
If appropriate training/coaching had been initially given
Whether poor job design, poor equipment provision, inadequate staff assistance has
caused or contributed to the problem
Interviews with other appropriate people to ascertain any relevant information
This phase also includes initial discussion with the employee that can include:
Gathering information about the situation from the employee’s perspective.
UNDERSTANDING
This phase can include:
Manager understanding of the employee’s problem(s) by listening and asking
prompting questions
Employee’s understanding of the manager’s workplace needs and expectations by
being shown how the performance is impacting on the business
Problem-solving by using discussion to find a way forward that is mutually agreeable
where possible
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ACTIONS
This phase can include actions/agreements:
To alter any work-related factors that can be altered to better accommodate the
employee’s needs
By the employee to work towards/comply with the workplace expectations
For the provision of workplace coaching, etc. to assist with performance
improvements
For follow-up after the counselling actions have been implemented
SKILLS NEEDED IN PERFORMANCE COUNSELLING
Managers need to harness their communication skills so that they can achieve the following:
GATHER INFORMATION
This includes the following abilities:
Listening skills
Probing and open questions that cajole the employee to explain
Observations skills to note and read body-language
EXPLAIN DETAILS
This includes the following abilities:
Assertive and not aggressive behaviours
Clear language use
Ability to admit external problems or manager’s own fault may be implicated in
problem
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PROBLEM SOLVE
This includes the following abilities:
Willingness to look for appropriate solutions
Ability to perceive win-win resolutions where possible
Openness to admit when problems need the intervention/assistance of someone else
Determination to see the situation through to a resolution of appropriate actions
FOLLOW-UP
This includes the following abilities:
Prioritising skills to ensure that the issue is monitored/followed up appropriately
Willingness to re-convene counselling or other access other avenues for extra
help/solutions
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TERMINATE STAFF IN ACCORDANCE WITH LEGAL AND
ORGANISATIONAL REQUIREMENTS WHERE SERIOUS
MISCONDUCT OCCURS OR ONGOING POOR-PERFORMANCE
CONTINUES
Termination may be defined as the permanent end of a working relationship or loss of
employment from an organisation or place of work. Termination may be initiated by the
employee through resignation; may come about through the normal course of events, as with
retirement or the expiration of a contract; or may be initiated by the employer.
There is a range of reasons why employees need to be terminated. Cole (2005:406) describes
four reasons why this has to occur.
Their performance fails to meet the required standards over a period of time
They do something seriously wrong
The job becomes redundant
There is insufficient work to keep them employed
Possible reasons for termination:
Fit: The individual no longer "fits" in with the culture or philosophy of the
organisation or will not accept the presence, style, or values of a new manager or
department head.
Philosophical Differences: The employee and his/her manager disagree on the
direction of strategies for running the department or division.
Poor Relationship: The employee has difficulty working and getting along with other
employees.
Technical Incompetence: The job has either outgrown the employee or he/she has
not kept up with the changes in the field.
Performance: The employee's performance has not been meeting the minimum
standards and requirements for the position. Before an employer terminates an
employee for poor performance, the organisation must ensure that the individual
knows he/she has a problem. The employee should have been given sufficient time
to improve. Performance reviews should have been conducted, documented and
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discussed with the employee. A termination for performance will not come as a
surprise to the employee if these steps have been taken.
Job Redefinition: The position is redefined or reclassified; the employee's skills,
experience and qualifications no longer match the new job specifications; and
retraining is not a viable option or cannot be completed quickly enough to allow the
incumbent to be considered as a candidate for the redefined position.
Insubordination: The employee refuses to carry out the instructions or directives of a
superior or to perform a function of the job.
Misconduct: The employee is guilty of unbecoming behaviour or actions which
could be considered harmful or prejudicial to the company, its products or property
(e.g. misappropriation of cash, indecency, theft, etc.)
Reduction/Downsizing: This can result from a change in the nature or volume of
work because of business or economic conditions, a geographic move or through a
merger.
EXPLAIN UNLAWFUL DISMISSAL RULES AND DUE PROCESS
Managers need to be clear that any termination action is taken within the requirements of their
organisation and relevant Industrial Relations legislation. This generally requires that employees
are advised formally of their non-compliance with company requirements and given relevant
opportunities to improve their performance before termination is considered. However, in
situations that are considered to be gross misconduct, (such as theft, wilful damage or substance
abuse) it may not require an improvement opportunity to be offered to the employee before
termination can be considered.
Managers are advised to seek further clarification from a relevant source prior to enacting any
action of dismissal and instant dismissal. This advice may be obtainable from an approved Head
Office personnel, or where this is not possible, advice could be sought from a government
department, Employer Association, etc.
UNFAIR DISMISSAL
In all cases, the reasons for termination must not be:
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Unfair, unjust or unreasonable
Discriminatory
Unlawful
You can learn more about unlawful termination here: https://www.fwc.gov.au/resolving-issues-
disputes-and-dismissals/dismissal-termination-redundancy/unlawful-termination
Employees cannot be terminated without cause.
The following guidelines are suggestions only; you should consult with your Human resource
specialist in all cases.
Every termination should be treated individually; advice must be sought before the actual
dismissal of any employee.
Badly handled terminations can cause the organisation to be drawn into extremely expensive and
time-consuming lawsuits.
No matter what the reason is for the termination, legal counsel should be consulted and you
should review your termination policies to make sure that your organization is covered for any
eventuality (especially a wrongful dismissal suit) and that the employee receives fair treatment.
Avoid terminating an employee while you are angry. All terminations should be made rationally
and only after the situation and circumstances have been thoroughly reviewed. By the same
token, avoid accepting an employee's resignation tendered in anger and frustration. Allow the
employee time to cool off and discuss the reasons for his/her unhappiness.
The legislation also plays a role in the termination process. An employer cannot discriminate
against an employee because of:
Age
Race
Sex
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Colour
Religion
Pregnancy
Marital status
Physical or mental disability
Ethnic origin
Therefore, when an employee is about to be terminated, it is important to ensure that
discrimination is neither involved nor implied, even if it is unintentional.
Just Cause: Just cause for dismissal includes any act by the employee that could seriously affect
the operation, reputation, or management of the company. This would include fraud,
drunkenness, dishonesty, forgery, insubordination, continuous absenteeism, or refusal to obey
reasonable orders (provided that the order presents no danger to the employee and is legal).
The onus of proving the existence of "just cause" is the employer's. If there is no cause, then an
employee must be terminated by giving reasonable notice.
The Termination Letter - Every employee released from an organisation should receive a letter or
agreement that clearly outlines, as simply as possible, the terms and conditions of the
termination. To prevent the chance of a lawsuit being filed, human resources should be involved
in drafting the letter or agreement. It should include mention of:
The effective date
The amount of severance pay
The form of payment (lump sum, salary continuance, etc.)
Benefits (whether they continue or cease)
Holiday and/or overtime (accumulated to last day of work)
Pension
Job search assistance (if any)
Other housekeeping items such as returns of office keys, car, credit cards, repayment
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of loan, or expense advance;
Willingness to provide references if feasible or practical (if terminated for poor
performance, etc. a letter of reference may not be appropriate)
Name of a contact in the benefits and/or payroll department(s)
How a termination of employment is handled depends on many factors. It is important,
however, that the process of terminating employees be carefully thought out and handled in a
professional manner as well as being legally "acceptable".
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RELEVANT LEGISLATION THAT MAY IMPACT MANAGING
PEOPLE IN ANY BUSINESS
OUTLINE RELEVANT LEGISLATIVE AND REGULATORY REQUIREMENTS
When working with people in any organisation there will be a variety of different types of people.
This diversity can relate to beliefs, culture, race, religion, sex or age. Each of these must be
considered when working with people. Relevant legislation and codes from all levels of
government that may affect aspects of business operations, could include:
ANTI-DISCRIMINATION LEGISLATION
Each state and territory has a human rights agency that can also receive complaints about human
rights breaches. For more information click on the links below:
Anti-Discrimination Board of New South Wales
Victorian Equal Opportunity and Human Rights Commission
Anti-Discrimination Commission Queensland
Equal Opportunity Commission Western Australia
Equal Opportunity Commission of South Australia
Office of the Anti-Discrimination Commissioner, Tasmania
Northern Territory Anti-Discrimination Commission
Australian Capital Territory Human Rights Commission
INDUSTRIAL RELATIONS LEGISLATION
Workplace Relations Act 1996 - The main legislation under which the Australian Industrial
Relations Commission (AIRC) operates. Set by the Australian Parliament.
The principal object of this Act is to provide a framework for cooperative workplace relations
which promotes the economic prosperity and welfare of the people of Australia by:
encouraging the pursuit of high employment, improved living standards, low inflation
and international competitiveness through higher productivity and a flexible and fair
labour market; and
Establishing and maintaining a simplified national system of workplace relations; and
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Providing an economically sustainable safety net of minimum wages and conditions
for those whose employment is regulated by this act; and
Ensuring that, as far as possible, the primary responsibility for determining matters
affecting the employment relationship rests with the employer and employees at the
workplace or enterprise level; and
Enabling employers and employees to choose the most appropriate form of
agreement for their particular circumstances; and
Ensuring compliance with minimum standards, industrial instruments and bargaining
processes by providing effective means for the investigation and enforcement of:
o Employee entitlements; and
o The rights and obligations of employers and employees, and their
organisations; and
Ensuring that awards provide minimum safety net entitlements for award-reliant
employees which are consistent with Australian fair pay commission decisions and
which avoid creating disincentives to bargain at the workplace level; and establishing
a process for making modern awards; and
Supporting harmonious and productive workplace relations by providing flexible
mechanisms for the voluntary settlement of disputes; and
Balancing the right to take industrial action for the purposes of collective bargaining
at the workplace level with the need to protect the public interest and appropriately
deal with illegitimate and unprotected industrial action; and
Ensuring freedom of association, including the rights of employees and employers to
join an organisation or association of their choice, or not to join an organisation or
association; and
Protecting the competitive position of young people in the labour market, promoting
youth employment, youth skills and community standards and assisting in reducing
youth unemployment; and
Assisting employees to balance their work and family responsibilities effectively
through the development of mutually beneficial work practices with employers; and
Respecting and valuing the diversity of the work force by helping to prevent and
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eliminate discrimination on the basis of race, colour, sex, sexual preference, age,
physical or mental disability, marital status, family responsibilities, pregnancy, religion,
political opinion, national extraction or social origin; and
Assisting in giving effect to Australia’s international obligations in relation to labour
standards.
Workplace Relations Regulations 2006 - The regulations work alongside the Workplace Relations
Act 1996. They are set by the Australian Government.6
AWARDS AND AGREEMENTS
OUTLINE RELEVANT AWARDS AND CERTIFIED AGREEMENTS
Minimum conditions at work can come from registered agreements, awards or legislation.
When a business has a registered agreement in place and it covers the work that the employee
does, then the minimum pay and conditions in the agreement will apply.
If there’s no registered agreement that applies and an award covers the business and the work the
employee does, then the minimum pay and conditions in the award will apply.
There are 122 industry and occupation awards that cover most people working in Australia,
which means many employees who aren’t covered by an agreement will most likely be covered by
an award.
Awards
Where no award or agreement applies, the minimum pay and conditions in the legislation will
apply.
The minimum wages and conditions an employee is entitled to are set out in awards (also known
as modern awards). Awards don’t apply when a business has an enterprise agreement or
other registered agreement and the employee is covered by it.
6 http://www.airc.gov.au/legislation/wrr.htm
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Awards apply to employees depending on the industry they work in or the job that they do.
Enterprise awards apply to specific businesses.
Agreements
Enterprise agreements and other registered agreements set out minimum employment conditions
and can apply to:
One business
A group of businesses, or
An individual employee (but these types of agreements can’t be made anymore).
When a workplace has a registered agreement, the award doesn’t apply. However:
The pay rate in the registered agreement can’t be less than the pay rate in the award
The national employment standards still apply
Any terms about outworkers in the award still apply.
Registered agreements apply until they are terminated or replaced.
WHS CODES OF PRACTICE
Work Health and Safety (WHS) Codes of Practice offer practical guidance to achieve the
standards of health, safety and welfare required in the Work Health and Safety Act 2011 (WHS
Act) and Work Health and Safety Regulations 2011 (WHS Regulations).
A code of practice applies to anyone who has a duty of care in the circumstances detailed in the
code. In most cases, following an approved code of practice would achieve compliance with the
health and safety duties in the WHS Act and Regulations. WHS Codes of Practice are admissible
in court proceedings. Courts may regard a code of practice as evidence of what is known about a
hazard, risk or control, and rely on it to determine what is reasonably practicable in the
circumstances. Following another method, such as a technical or an industry standard may
achieve compliance with the WHS Act and Regulations, if it provides an equivalent or higher
standard of work health and safety than the code.7
7 https://www.comcare.gov.au/the_scheme/the_whs_act/codes_of_practice
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ETHICAL PRINCIPLES
Ethical principles are universal standards of right and wrong prescribing the kind of behavior an
ethical company or person should and should not engage in. These principles provide a guide to
making decisions but they also establish the criteria by which your decisions will be judged by
others.
In business, how people judge your character is critical to sustainable success because it is the
basis of trust and credibility. Both of these essential assets can be destroyed by actions which are,
or are perceived to be unethical. Thus, successful executives must be concerned with both their
character and their reputation.
Depending on the industry you work in there will be ethical principles that you will need to abide
by. They may differ slightly but basically they will relate to:
Honesty.
Integrity.
Promise-keeping.
Loyalty.
Fairness.
Caring.
Respect for others.
Law abiding.
Commitment to excellence.
Leadership.
Reputation and morale.
Accountability. 8
8 http://www.standardizations.org/bulletin/?p=133
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PRIVACY LAWS
The Privacy Act 1988 (Privacy Act) is an Australian law which regulates the handling of personal
information about individuals.
Personal information is information or an opinion about an identified individual, or an individual
who is reasonably identifiable.
The Privacy Act includes thirteen Australian Privacy Principles (APPs). The APPs set out
standards, rights and obligations for the handling, holding, use, accessing and correction of
personal information (including sensitive information). 9
9 https://www.oaic.gov.au/privacy-law/
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SUMMARY
Now that you have completed this unit, you should have the ability to manage people
performance.
If you have any questions about this resource please ask your trainer. They will be only too happy
to assist you when required.
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REFERENCES
Cole, Kris (3rd edition 2005) Management theory and practice Pearson Education Australia:
Frenchs Forrest
Graetz, Fiona; Rimmer, Malcolm; Lawrence,Ann; Smith, Aaron (2nd Edition 2006) Managing
organisational change John Wiley and Sons : Milton
Johnston Robert & Clark Graham (2nd Edition 2005) Service Operations Management Pearson
Education Ltd: Essex
"Job Analysis." Web. 29 Jul. 2015 <http://www.job-analysis.net/G000.htm>
"Allocating Work Through Delegation." Web. 29 Jul. 2015
<http://www.businessballs.com/delegation.htm>.
"Standards of Performance." Web. 29 Jul. 2015 <http://www.powershow.com/view1/1a4720-
ZDc1Z/Introduction_to_Management_and_Leade
rship_Cluster_4_Manage_performance_and_knowledge_Show_1_People_powerpoint_ppt_pr>.
