Managing poor performance

9 June 2008

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You only have to listen to the news or pick up the business sections of a newspaper to realise that we are entering a period of economic uncertainty. One of the features that distinguishes those businesses that can cope with an economic downturn is having effective performance management, but it can often be a difficult area for managers and HR professionals alike.

Why is performance management so important?

It clarifies roles and personal objectives
It makes people feel valued
It aligns personal contribution to the organisation's goals
It helps communication
It raises awareness
It identifies personal learning and development needs

It is when people are consistently underperforming that the difficulties tend to arise. These are the issues that we often don't like facing up to or we deal with ineffectively.

Other staff, however, are often fully aware of the situation and it reflects badly on management if the problems are not addressed. In hard times they simply cannot be ignored.

The procedure for dealing with underperformance basically has four sequential stages all of which require face to face discussions with the employee:

Informal discussion

- raise issues, consider support/training

First formal meeting

- agree a performance improvement plan (PIP)

Second formal meeting

- PIP and formal warning

Final formal meeting

- possible outcomes - transfer/demotion/dismissal

N.B. The procedure can end at any of the first 3 stages if performance improves.

At the second and final formal meetings it is imperative that you follow the statutory minimum requirements:

Send a letter before each meeting detailing the areas of underperformance
Comply with the employee's right to be accompanied
Send a letter after each meeting confirming warning/decision
Explain to the employee their right of appeal

At each meeting:

Clarify work duties
Review performance
Explain concerns
Identify the gap and potential causes
Identify support/training to eliminate or reduce gap
Complete a PIP
Set time limit and date of next review

Whatever the ultimate outcome, to manage performance effectively you need the following key skills:

Leadership
Questioning and listening
Ability to recognise the signs at an early stage
Analytical skills – sensitive to issues that might impact on performance
Coaching skills
Ability to set clear objectives and performance measures.

Remember, what can't be measured can't be managed!

Also, beware of the following common obstructions to an effective performance management process:

The employee raises a grievance
The employee alleges bullying
The employee alleges you are bullying them
The employee goes off ill with stress
The employee alleges they have medical condition affecting performance

Don't act on impulse – seek advice

Remember, capability can be a fair reason for dismissal so long as you have:

dealt with it fairly
tried to remedy problems effectively and in good time
a procedure for managing poor work performance/capability and it is communicated, publicised and applied consistently

About the author

Mace & Jones provides advice on all aspects of performance management and can provide training for managers, which is tailored to suit your organisations needs. For further information contact Chris Ellis or Sue Ensall at christopher.ellis@maceandjones.co.uk; sue.ensall@maceandjones.co.uk or visit their website www.maceandjones.co.uk.

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