Contents

Before you begin vii

Topic 1: Develop integrated performance management processes 1

1A Analyse organisational plans to identify policies and objectives 2
1B Develop objectives for performance management processes 6
1C Design methods and processes for managers to develop KPIs 9
1D Develop time frames and processes for formal performance management sessions 13
1E Ensure processes are flexible to cover the range of employment situations in
the organisation 20
1F Consult with key stakeholders about processes and agree on process features 25
1G Gain support to implement the processes 30
Summary 33
Learning checkpoint 1: Develop integrated performance management processes 34

Topic 2: Facilitate the implementation of performance

management processes 41
2A Train relevant people to monitor and identify performance gaps and manage talent 42
2B Work with line managers to ensure performance is monitored and
intervention occurs 46
2C Support line managers to counsel and discipline employees 54
2D Articulate dispute-resolution processes and mediate between managers and
employees 59
2E Provide support to terminate employees who fail to respond to interventions 64
2F Ensure the outcomes of performance management sessions are accessible and
stored appropriately 68
2G Regularly evaluate and improve performance management processes 72
Summary 74
Learning checkpoint 2: Facilitate the implementation of performance management
processes  75

Topic 3: Coordinate individual or group learning and development 83

3A Design and develop learning and development plans and strategies 84
3B Deliver learning and development plans, and ensure they meet specified outcomes 88
3C Contract appropriate providers for performance development 92
3D Ensure activities comply with quality assurance standards 97
3E Negotiate remedial action with providers 101
3F Generate reports on the progress and success rates of activities 103
Summary 106
Learning checkpoint 3: Coordinate individual or group learning and development 107

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Culture
Determine the overall culture of the
organisation; for example, an organisation
with many levels of reporting will tend to be
more bureaucratic and require much more
detailed performance management processes
to cope with these reporting requirements;
organisations with few reporting lines are
generally more flexible, but may lack a
reporting structure.

Performance management policies

Establishing a performance management policy is one way that an organisation can
translate its strategic and operational objectives into practical individual actions. A
performance management policy’s content and structure will vary depending on the size
and scope of the organisation, the level of importance that senior management places on
employee performance and the industry the organisation operates within.

Other workplace policies

Policies affecting performance management are not restricted to the performance
management policy itself. For example, workplace health and safety, anti-discrimination,
privacy and confidentiality, and workplace equity and diversity policies all have some
impact on the management of performance within an organisation.

How to analyse the integration of an organisation’s performance management policies

• Establish how each step of the procedure conforms to existing policies, legislation and
relevant regulations.
• Determine how well the procedures gather sufficient data for effective performance
management.
• Establish how effective the performance management procedures are at helping managers
and the organisation improve individual and group performance.
• Identify gaps in the existing procedures where rules, regulations, legislation or policy are not
being addressed.
• Consider innovative or incremental improvements that address individual, regulatory or
organisational outcomes and compliance standards.

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1C Design methods and processes for managers

to develop KPIs
Performance management begins with performance
planning, which is used to provide a structured
approach to achieving the desired level of
performance for both individuals and teams. Line
managers must ensure performance plans are created
for their team members. Your role is to provide line
managers with a structure they can use to develop
KPIs and performance plans for the staff reporting
to them.

The performance
management process
The performance management process is a
continuous cycle of monitoring, developing and rewarding employee behaviour when it
meets performance standards. You can assist line managers in implementing this process by
establishing a procedure to follow.
Here are several main steps of the performance management process.

Performance management process

Set objectives.

Identify and use performance indicators.

Regularly monitor and appraise individuals and teams to identify achievements.

Identify training and development needs.

Use the knowledge and information derived from performance monitoring to modify
plans.

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1D Develop time frames and processes for

formal performance management sessions
A performance appraisal is a formal assessment and rating of individuals by their managers,
usually as part of their annual review meeting.
Performance management, on the other hand,
encompasses a wider scope of ongoing activities and
aims to clarify mutual expectations and establish
support requirements to enable an employee to more
effectively meet their performance goals.
Managing the performance management system
requires you to develop suitable processes and time
lines so line managers can conduct formal sessions
with their staff, consistent with organisational
requirements.
Formal performance management sessions are an
opportunity to help staff identify how they can better
contribute to organisational goals.

Performance management sessions

Formal performance management sessions provide a means through which the elements
of planning, monitoring, developing, assessing and rewarding can be put to good use. One
of the key functions of this type of session is to look at what needs to be done to achieve
the purpose of the employee’s job; to meet new challenges; to make better use of their
knowledge, skills and abilities; and to develop their capabilities by encouraging a self-
management approach.
Here is an example of what a performance management session could include.

Reflective practice

└└ Staff should be encouraged to undertake self-assessment and reflection.

The more that reflective practice is implemented as part of everyday
practice, the more likely it is targets will be reached when performance
management sessions are held.

Partnership approach

└└ Performance management processes need to be empowering for

employees and to be seen as a partnership approach to achieving goals.
The manager and employee need to reach a mutual agreement regarding
the employee’s performance.

Solutions

└└ Both the manager and the employee need to identify issues and/or barriers
to effective performance and to determine appropriate solutions together.

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Example: employee performance review form

While formats will vary, employee performance review forms can be completed on paper or online.

Employee information

Name: Employee ID:

Role: Date:

Department: Manager:

Review period  /  /   to   /  /  

Rating

Please rate the following skills, knowledge and abilities using this rating scale:
Poor 1 Fair 2 Satisfactory 3 Good 4 Excellent 5

Job knowledge:
Work quality:
Initiative:
Teamwork skills:
Communication skills:

Comments:

Professional development since last review:

Comments:

List targets here that align with your specific position description:

Comments:

Overall rating (average the rating numbers above):

Evaluation

Additional comments:

Agreed goals:

By signing this form, you confirm that you have discussed this review in detail with your
supervisor. Signing this form does not necessarily indicate that you agree with this
evaluation.

Employee’s signature: Date:

Manager’s signature: Date:

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Successfully manage remote workers

A distributed and flexible work environment requires
a different management style. A structure based
on frequent communication, feedback and trust is
essential to the management of remote workers.
When people work autonomously, their
independence and responsibility increase. This
potentially lessens their physical connection to their
organisation and certainly changes their interaction
with it. Performance management processes need
to provide the mechanisms for establishing and
maintaining effective connections.
Many organisations have had success in
implementing flexible work arrangements and
managing the performance of remote workers.

Example: manage remote workers

A large fast-food organisation has work arrangements that include casual, part-time, permanent,
contract and commission-based employment. A performance
management system monitors the work and outcomes of each of the
employee streams to ensure equitable rewards and performance
management are applied across the organisation.
The system is electronically based and permits only supervisors to
enter performance data. However, employee input is provided for in
relation to self-appraisal and goal-setting.
The system also allows for different levels of remuneration, bonus
structures, evaluation and remedial action across the various
employment conditions.
Based on a commercially available data management system, this performance management
system has been customised to organisation requirements and allows senior managers access to
reports, graphs and spreadsheets on employee performance and performance ratings.

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Consult with stakeholders

If you are building a performance management system, consult widely about its structure
to ensure the important features are relevant and meaningful. In this way, you are more
likely to gain stakeholder acceptance and develop a more effective system. Ideally, all
major stakeholders should have input into shaping the system. An inclusive approach
to determining what the system looks like contributes to a well-balanced approach to
performance management within an organisation.
When consulting with stakeholders, actively seek input in the following areas.
Suggested features may include:
• Types of input and output forms and documentation
• Style and accessibility options
• Reporting options
• Cost and value input

Example: benefits of consultation

Stakeholder consultations can provide numerous benefits.

Comparative benefits of various stakeholder consultations

Organisational benefits Questionnaire Electronic Group Face-to-face

survey meeting interview

Broader scope of ideas and

X X X X
input

Better acceptance of outcomes

X X X
by stakeholders

Opportunity for open discussion X

Ability to form a consensus X

Creation of ownership in the

X X X
system and its overall goals

Opportunity for social learning

between different stakeholder X
groups

Efficiency X X X

Effectiveness of gaining
X X X
valuable input

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Summary

1. Analysing the organisation’s structure allows you to define reporting roles, positions of
influence and cross-functional relationships, and so develop insight into the nature of
the organisation.
2. Objectives for performance management processes need to be developed in a way that
supports organisational strategies and goals, and builds the organisation’s capability.
3. Performance planning is used to provide a structured approach to attaining the desired
level of performance for both individuals and teams.
4. Key performance indicators (KPIs) are measures commonly used to define and evaluate
how successfully an individual or team is performing.
5. Formal performance management sessions provide a means through which the five
primary performance management elements of planning, monitoring, developing,
assessing and rewarding can be utilised effectively.
6. Performance management processes must be flexible enough to provide measurable and
useful results for managers regardless of the employee’s work situation.
7. When establishing performance management processes, it is important to take the time
to understand the needs and concerns of relevant stakeholders to improve the level of
input and to gain their support.
8. Gaining support for the implementation of a new performance system should begin
with employees, followed by senior managers and finally external stakeholders.

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Example: performance rating

Here is a sample performance rating form that shows it is possible to create a well-constructed
mechanism to measure subjective criteria such as communication skills.

Performance rating form

Employee name:

Employee position:

Manager name:

Key work responsibilities:

Results and goals to be achieved:

Behavioural assessment of competences

Communication

1 2 3 4 5

Below expectations Meets expectations Role model

Even with guidance, fails With guidance, prepares Independently prepares
to prepare straightforward straightforward communications, communications, such
communications, including including forms, paperwork and as forms, paperwork and
forms, paperwork and records, in a timely and accurate records, in a timely, clear
records, in a timely and manner. and accurate manner.
accurate manner.

Personal effectiveness

1 2 3 4 5

Below expectations Meets expectations Role model

<Performance standard> <Performance standard> <Performance standard>

Teamwork

1 2 3 4 5

Below expectations Meets expectations Role model

<Performance standard> <Performance standard> <Performance standard>

Achievement of organisational results

1 2 3 4 5

Below expectations Meets expectations Role model

<Performance standard> <Performance standard> <Performance standard>

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Discuss causes
5
Allow employees the opportunity to identify what caused their behaviour. The
manager should record and review these causes as they are discussed.

Use the appropriate counselling style

6
Use directive and non-directive counselling. Both directive counselling, using
statements such as ‘you will’ and ‘from this point on’, as well as non-directive
counselling, asking questions such as ‘how will you rectify this in the future?’,
can be used at appropriate times.

Set the corrective action

7
After listening to the employee’s reasons, you can empathise, but if there is a
need for corrective action, this needs to be set with the employee. Involving the
employee in setting the corrective action will help ensure they have ownership of
the corrective action and it is followed through.

Address poor performance

When an employee’s performance is unsatisfactory,
managers have a responsibility to acknowledge
the problem and take corrective action. Most
underperformance problems can be resolved when
managers address them promptly. Your organisation
should have policies and procedures for addressing
poor performance. All line managers should receive
some basic training in how to identify and address
poor performance.
Part of your role is to apply and interpret
organisational policies and procedures to assist
line managers to address underperformance. You
also need to have an understanding of any legal
requirements surrounding the actions taken to
address poor performance.

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2C Support line managers to counsel and

discipline employees
If an employee continues to underperform, their
line manager must take action in accordance with
organisational policies and procedures. You can
provide assistance to line managers in a number
of ways. A line manager dealing with an ongoing
performance problem with the same person may
need additional skills to handle the problem and
guide the employee back onto the right track.
Failing this, the line manager must be familiar with
the disciplinary processes they can follow within
the context of the workplace and the Australian
industrial relations system.

Decide how to respond

A progressive approach to discipline suggests that the line manager’s initial response
should start with a positive, supportive approach to improving employee behaviour and
performance. One such approach is counselling. If circumstances require it, more formal
approaches such as verbal and written warnings can be used.

Counselling
Counselling of an employee can be direct or indirect.
Here is some further information on the two processes.

Direct counselling

This implies that the line manager needs to be close to the employee to take
them through the necessary steps to improve their performance or behaviour.
However, it may be difficult for the manager to dedicate the necessary time
or resources to one employee. In this instance, the manager may use indirect
counselling methods.

Indirect counselling

This is more ‘hands-off’ and instead relies on the employee agreeing to

measures the line manager provides. These measures may be actions such as
attending training, adopting new workplace processes, modifying behaviour or
adopting new reporting requirements.

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2D Articulate dispute-resolution processes and

mediate between managers and employees
During the counselling and disciplinary process, employees may disagree with the
assessment of their behaviour or the steps taken. It is important that this dispute does not
create a hostile environment that affects other employees or that may have implications in
the event of legal action.
Here are some ways that you can support both the line manager and the employee.
You can support the line manager and the employee by:
• identifying the problem
• outlining the dispute-resolution process
• providing mediation services.

Identify the problem

Employees sometimes have grievances with their
employer, where they disagree with a decision made
regarding their employment or conduct. For example,
an employee being counselled for racist remarks may
dispute that their language was inappropriate.
As someone responsible for performance
management processes, you should be monitoring
the counselling and disciplinary process by staying
in contact with the line manager. This may involve
meeting with the line manager after a counselling
session or inquiring regularly about the employee’s
performance. You should also ask the line manager
about the employee’s response to counselling.
If the line manager or the employee advises you that the employee disagrees with the
manager’s decisions, you should explain the dispute-resolution process to both the manager
and the employee.

Outline the dispute-resolution process

A dispute-resolution or grievance process grants employees the right to appeal a decision made
regarding their performance or conduct. Its purpose is to provide a means by which employees
can express dissatisfaction with an outcome and obtain a fair and unbiased hearing.
Organisations are required to have a clear dispute-resolution process. The process is
not limited to disputes about performance and may extend to disputes about workplace
conditions or other entitlements.
Most organisations publish the dispute-resolution process so it is readily available to all
employees. You can refer the employee to the company intranet or to the relevant document
for this information.

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Example: use mediation techniques

Andrew has issued a written warning to Annie, an employee who has repeatedly bullied a junior
member of the team. Annie has approached her HR representative,
saying that she has not been bullying anyone and alleging that she is
being unfairly targeted by Andrew.
Andrew has kept a careful record of the bullying incidents and informed
HR when the verbal and written warnings were issued. Flynn, the HR
representative, arranges a meeting between himself, Andrew and
Annie.
During the meeting, Flynn explains that his role is to help resolve the
dispute and to be an objective third party. He carefully outlines the
dispute-resolution process and provides both Andrew and Annie with a
copy of the relevant procedure.
Flynn asks Andrew to present examples of Annie’s bullying. He then helps
Andrew explain why this behaviour constitutes bullying under the organisation’s
code of conduct.
At the end of the meeting, Annie accepts that the behaviour is in fact bullying
and agrees to attend remedial training.

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Practice task 11
1. What dispute-resolution process would apply if an employee disputes their manager’s position?

2. What information would you provide to a newly appointed line manager about the dispute-
resolution process?

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2F Ensure the outcomes of performance

management sessions are accessible
and stored appropriately
Detailed documentation is an essential part of an effective performance management
system. Written records confirm discussions that have taken place. It is worth remembering
that the records you make can be used in legal proceedings. As they are legal documents,
you should take every step to record accurate performance management information.

Types of performance management information

•• Dates and times of performance discussions

•• The performance issues or misconduct in question
•• Description of where and how the issue occurred
•• Description of how long the issue has been a problem
•• Steps undertaken to resolve the issue
•• Agreed performance plans
•• Signatures of parties involved
•• Any other relevant information

Legal and organisational requirements for

record-keeping
Personal information, such as that recorded during
performance management sessions, must be stored
in accordance with organisational policy and legal
requirements. Legal requirements include adherence
to national, state and territory legislation.
You can read more about the Privacy Act and your
legal obligations at this website: [Link]/
privacy/privacy-news

Privacy and confidentiality

considerations
When dealing with employee information, all
managers need to understand and follow the
organisation’s privacy policy.
Privacy refers to a person’s ability to control others’ access to themselves, their space and
their possessions, including information about themselves. Privacy also means taking steps
to avoid embarrassment and humiliation.
Confidentiality is about data or information, and refers to managing access to private
information. Confidentiality provisions restrict an individual or organisation from using or
sharing information about a person that is outside the scope for which the information was
collected.
Here is some information about privacy and confidentiality.

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Example: an evaluation approach

A global distributor of electronic goods, ElectroHouse, has offices in 42 countries. The HR
management system is layered and includes international, regional and country HR managers.
The global directive for performance management improvement is
guided by ElectroHouse’s adherence to ISO 9001:2008. This approach
is followed at every national office. To ensure regular improvement to
the performance system, the following steps are taken at each site:
•• Annual performance system strategies are implemented in line with
global policy.
•• Operational performance management systems are audited twice
yearly – once by an internal auditor from regional headquarters and
once by an external ISO auditor.
•• A global performance management intranet forum is used to post
incremental improvements and to suggest innovative changes to the system.
•• All feedback is administered through national servers to ensure it is acknowledged and acted on
if necessary.
The system of improvement is part of the management culture of ElectroHouse: managers actively
seek out new and improved methods of performance management and system operation.

Practice task 14
What are four strategies and methods you could use to evaluate and improve the performance
management system in an organisation?

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 Topic 3
Coordinate individual or group learning and development

Development plans
Learning and development plans are an integral part of the process of encouraging effective
employee performance.
Here is more information about learning and development plans.
Leaning and development plans:
• are directed by organisational policy
• contribute to and form part of the learning culture
• assist managers and staff to understand and implement the learning process
• create skills and knowledge outcomes that can be monitored and measured.

Learning cultures
The most successful organisations have developed a learning culture based on the attitudes,
commitment and management processes that support an open learning environment. They
have the capacity to continually adapt and respond to changes in business environments.
Once managers have established a supportive and open environment, they should create
learning and development plans for their employees. These plans must be designed using
specific learning outcomes and tailored to meet the needs of the individual and the
organisation’s strategic directions.
Here are some elements of learning and development plans.
Learning and development plans should:
• incorporate and adhere to existing legislation and corporate policies regarding learning
• list and describe the learning activities that must be completed by the employee
• specify the completion date; the resources, costs and time allowances involved; and
performance outcomes
• provide for the employee and manager to comment and sign off the agreed activities.

Example: learning and development plan template

Having a plan in place will assist you in achieving your outcomes.
Here is an example learning and development plan.

Learning and development plan form

Employee’s name:

Supervisor:

Department:

Overall aim of learning and development activities:

continued …

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The purposes of a briefing meeting include:

• determining the level of success of the activity with regards to employee perceptions and
the organisation’s perceptions
• assessing the likelihood of undertaking similar activities in the future
• assessing the employee’s level of skill and knowledge with the aim of developing further
learning plans.

Example: successful learning and development plans

At an employment agency in Western Australia, the director of HR development creates a new
employee training plan for team leaders. Each team leader is consulted
and the plan is included as part of their individual learning and
development plans. The employees agree to the identified activities and
are generally excited by the investment in their personal and
professional development.
The training is trialled for team leaders in one region before being rolled
out across all regions. Feedback is encouraged to gauge the level of
support for and effectiveness of the program. Staff are also interviewed
to measure the effects the training is having on their supervisors’
performance and, in turn, on their own performance.
The program runs for six months and the results of the ongoing
feedback, interviews and performance outcomes are collated. The program is successful on many
fronts: first, each supervisor enjoys the support from the HR department; second, they all report
significant improvements in their ability to deal with supervisory situations; and third, staff feedback
identifies a marked improvement in overall performance in their day-to-day interactions with their
supervisors and customers.

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Training providers
There may be alternative options to consider. If an employee is failing in some aspect of
their job, a performance appraisal can determine whether the person lacks the necessary
resources, skills or attitude to perform the job. Then further training options need to be
considered. Again, this may mean using other providers.
Here is further information about what external training providers can offer.

On-the-job training

This is a structured process of teaching a person how to do a practical or

procedural task.
The employee’s supervisor may oversee on-the-job training. Providers may
include internal training facilitators, external agencies, a supportive peer, and a
mentor or buddy process.

Reading and research

A program of reading and research into a particular topic, and presentation of

results, can be a way for people to gain new knowledge.
This type of development requires agreement between the supervisor and
employee about the content that should be accessed and the goals and
objectives of the process. Providers of information content should be verified as
reliable and accurate by a subject matter expert or manager.

Training courses

Training courses include any formal event where a presenter works with a group
of participants through a program of activities to develop skills or knowledge.
External training providers can offer specific training experiences for employees
or work groups. Selection should be based on the agreed development needs of
employees in relation to workplace requirements. Contacts include the training
provider and the selected trainer or assessor.

Tertiary courses

Tertiary courses offer an opportunity to update academic qualifications and

knowledge.
Training budgets may allow for ongoing tertiary education. This is usually
administered by senior managers and HR professionals. Selection of the tertiary
provider is often based on geographic constraints, funding availability, specific
required course outcomes and the institution’s reputation.

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Evaluate compliance
The evaluation methods used to determine compliance of activities with quality assurance
standards will depend on the scope of the activities being undertaken and the specific
compliance requirements an organisation adheres to. The outcomes of these methods can
then be compared with the compliance requirements to identify whether the learning and
development program has met the selected criteria.
Here are some evaluation methods you can use as a starting point.

Survey the people involved and have them

assess and report on improvements in
performance.

Survey key stakeholders and ask them

whether they have observed improvements in
performance or behaviour.

Analyse records of performance (for example,

work samples or employee performance data)
to track and report changes in outputs and
achievements.

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3F Generate reports on the progress

and success rates of activities
Learning and development activities are sometimes accompanied by high expectations
from senior management, often due to the investment an organisation makes in employee
development. An organisation may require comprehensive reporting on learning and
development outcomes to verify its progress and success.
Liaise with managers to uncover their reporting needs for learning and development
activities, and devise ways that this information can be collated and prepared to confirm
the value of training and development. Some proprietary systems have training reporting
functionality built in. Alternatively, you can develop your own simple reporting system
using a spreadsheet or database application.
The data you may want to collect should support or show the following:
• How the learning and development need is linked to business goals
• How the learning and development activity/option chosen meets these needs
• The start date for commencement of activities
• Costs associated with activities (including training, travel, accommodation, downtime
and so on)
• Expected outcomes to be achieved
• Progress made towards outcomes

Communicate outcomes
Once the methods for collecting data and generating
reports have been determined, identify the frequency
with which this information is required. The nature
of the learning and development activity or program
will determine how frequently this information is
required.
You also need to determine who the report must go
to. In most modern information systems, reports
are centralised so the relevant person can access
them as required. If the organisation does not have
a central reporting system, you may be able to create
a simple folder on a network drive or use a paper-
based system.
In a successful quality assurance system, analysis and communication of quantitative
and qualitative data provide for the foundation of future improvement. Likewise, those
responsible for assessing the data play an important role in the organisation’s ongoing
quality improvement. It is vital that the data is presented in a way that adheres to company
conventions, or at least in a format that makes it easy for the person evaluating the data to
arrive at an accurate decision.

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