SUPPORT PERFORMANCE MANAGEMENT PROCESS CANDIDATE RESOURCE & ASSESSMENT BSBHRM403A

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SUPPORT PERFORMANCE

MANAGEMENT PROCESS

CANDIDATE RESOURCE & ASSESSMENT

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Precision Group (Australia) Pty Ltd 9 Koppen Tce, Cairns, QLD, 4870 Email: [email protected] Website: www.precisiongroup.com.au © Precision Group (Australia) Pty Ltd BSBHRM403A

Support Performance Management Process

ISBN:

978-1-74238-Copyright Notice

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Disclaimer

Precision Group has made a great effort to ensure that this material is free from error or omissions. However, you should

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2 Legend

3 Qualification Pathways

4 Qualification Rules

5 Introduction

7 BSBHRM403A/01 Review Performance Management Infrastructure

Key Points

Ensure that all positions have current position descriptions specifying key requirements of the role

Ensure that managers have provided reportees with performance indicators that are consistent with the position description requirements

Check that performance appraisal meetings are held in accordance with

organisational timeframes, that correct documentation has been completed and that all necessary parties have recorded agreement

Check that appropriate organisational procedures have been followed for rewarding good performance

Check that appropriate organisational procedures have been followed for addressing under performance

Provide advice and support where there is dissention about performance appraisal outcomes

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‘True’ or ‘False’ Quiz

25 BSBHRM403A/02 Promote Performance Management System

Key Points

Clarify goals and methods of the performance management system

Address any questions from employees about the performance management system Arrange or deliver, training or instruction in how to use the performance

management system

Encourage ongoing and regular feedback on performance as well as formal performance appraisals

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35 BSBHRM403A/03 Collate Performance Management Data

Key Points

Review performance management documentation to establish trends or problem areas which require attention

Review patterns in skill or performance gaps and consider requirements and options for performance development

Revise policies or procedures if necessary

Suggest improvements to the performance management system

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42 Summary

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Legend

This symbol indicates the beginning of new content. The bold title matches the content of the competency and they will help you to find the section to reference for your assessment activities.

Activity: Whenever you see this symbol, there is an activity to carry out which has been designed to help reinforce the learning about the topic and take some action.

This symbol is used at the end of a section to indicate the summary key points of the previous section.

This symbol is used to indicate an answer to the Candidate’s questions or notes to assist the Facilitator.

Use

considered

risk taking in your ‘grey’ area

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“There are always two

choices. Two paths to

take. One is easy. And

its only reward is that

it’s easy”.

Source Unknown

This unit of competency is provided to meet the requirements of BSB07 Business Services Training Package although it can be used in a range of different qualifications. The BSB07 Business Services Training Package does not state how a qualification is to be achieved. Rather, Registered Training Organisations are required to use the qualification rules to ensure the needs of the learner and business customer are met. This is to be achieved through the development of effective learning programs delivered in an order that meets the stated needs of nominated Candidates and business customers.

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Qualification requirements include core and elective units. The unit mix is determined by specific unit of competency requirements which are stated in the qualification description. Registered Training Organisations then work with learners and business customers to select elective units relevant to the work outcome, local industry requirements and the qualification level.

All vocational education qualifications must lead to a work outcome. BSB07 Business Services Training Package qualifications allow for Registered Training Organisations (RTOs) to vary programs to meet:

Specific needs of a business or group of businesses.

Skill needs of a locality or a particular industry application of business skills. Maximum employability of a group of students or an individual.

When packaging a qualification elective units are to be selected from an equivalent level qualification unless otherwise stated.

Qualification Rules

“You’re either part of

the solution or part

of the problem.”

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Introduction

“Whether as an

individual, or as part of

a group, real progress

depends on entering

whole-heartedly into

the process and being

motivated to make you a

more deeply satisfied

human being.”

Source Unknown

This unit of competency is about being able to assist in the effective implementation of a performance management system and to facilitate employee performance. It will help you with the skills you need to demonstrate competency for the unit BSBHRM403A Support Performance Management Process. This is one of the units that make up the Certificates in Business.

This manual is broken up into three sections. They are:

1.

Review Performance Management Infrastructure

2.

Promote Performance Management System

3.

Collate Performance Management Data

At the conclusion of this training you will be asked to complete an assessment pack for this unit of competency. The information contained in this resource will assist you to complete this task. On competent completion of the assessment, you will have demonstrated your ability to assist in the effective implementation of a performance management system and to facilitate employee performance.

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Key Points Section 1

Performance management is the process of assessing progress toward achieving predetermined goals.

Position descriptions are statements which detail the characteristics and qualifications required by an employee to perform satisfactorily the defined duties and tasks of a specific job or function.

Employee Performance Management is a process for establishing a shared workforce understanding about what is to be achieved at an organisation level. Frontline managers exercise a strong influence over the level of discretion that

an individual has over how they do their job.

PART 1:

Review Performance

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Part 1: Review Performance Management Infrastructure

Key Points Section 1 continued

Employees must understand the expectations that the organisation has of them, whether they are being met and how they were measured.

Establish a clear link between what people are rewarded for and the organisation’s priorities.

A grievance is a clear statement by an employee of a work-related problem, concern or complaint.

Managers and supervisors should be the first point of contact for employee grievances and should encourage employees to understand the employer’s procedures for resolving work-related concerns and grievances, provide timely and confidential assistance to employees, including advice on available options.

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What is Performance Management?

The process of performance management is one in which you create a specific working environment in your workplace that allows people to work and perform to the very best of their abilities. You are looking to make improved performance critical to organisational success and making the culture fit this specific need. Performance management is something that occurs right throughout your organisation – and lasts from the moment a new employee begins their position and ends when they leave the organisation at the end of their position.

Performance management is quite a wide topic to deal with. It is more than just performing an appraisal and looking at how well someone is working in the organisation. It focuses on improvements right throughout the process.

A performance management system includes the following actions.

Develop clear job descriptions.

Select appropriate people with an appropriate selection process.

Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.

Provide effective orientation, education, and training. Provide on-going coaching and feedback.

Conduct quarterly performance development discussions.

Design effective compensation and recognition systems that reward people for their contributions.

Provide promotional/career development opportunities for staff.

Assist with exit interviews to understand WHY valued employees leave the organisation.

Put simply, performance management involves setting predetermined standards of performance that an organisation expects of its staff and then measuring actual performance against these standards to determine where any issues or problems may exist. By then finding solutions to performance gaps, the organisation can attempt to make overall improvements to specific employees or work processes that enable the organisation to achieve its overall strategic goals. Performance management systems try to utilise systems and data sources that are already in place within an organisation to gather the information they need to make their judgements, after all there is no sense in reinventing the wheel. However, where data sources are not available, you may need to spend the time to actually develop new sources or performance measurement techniques.

As we previously mentioned, performance management techniques attempt to link the individuals performance to the performance of the organisation as a whole, and in doing so attempts to build effective relationships between planning at the personnel level with the accomplishment of overall strategic goals and objectives for the organisation as a whole. By developing individuals, you can establish a culture where performance improvement is fostered and encouraged.

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Examining the Current Systems

A formula for performance relating to organisational developmental (OD) would be:

Actual Results vs Desired Results

Therefore, any discrepancy, where Actual is less than Desired, would constitute the performance improvement zone.

Performance management and improvement can be thought of as a cycle:

1.

Performance planning where goals and objectives are established.

2.

Performance coaching where a manager intervenes to give feedback and adjust performance.

3.

Performance appraisal where individual performance is formally documented and feedback delivered.

A performance problem is any gap between Desired Results and Actual Results. Performance improvement is any effort targeted at closing the gap between Actual Results and Desired Results.

Infrastructure

Infrastructure is the underlying base or foundation especially for an organisation or system. In the case of performance management it includes the basic resources and systems used to discover and reduce the performance gaps.

To review the performance management infrastructure in your organisation, you need to understand the systems or how it works. This begins with the position descriptions for each and every employee.

Position Descriptions

Position descriptions can also be called duty statements, job specifications or role statements. They are all statements which detail the characteristics and qualifications required by an employee to perform satisfactorily the defined duties and tasks of a specific job or function. Position descriptions improve an organisation’s ability to manage people and roles in the following ways:

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Provides a structure and discipline for company to understand and structure all jobs and ensure necessary activities, duties and responsibilities are covered by one job or another.

Provides continuity of role parameters irrespective of manager interpretation. Enables pay and grading systems to be structured fairly and logically.

Prevents arbitrary interpretation of role content and limits by employee and employer and manager.

Essential reference tool in issues of employee/employer dispute. Essential reference tool for discipline issues.

Provides important reference points for training and development areas.

Provides neutral and objective (as opposed to subjective or arbitrary) reference points for appraisals, performance reviews and counselling.

Enables formulation of skill set and behaviour set requirements per role.

Enables organisation to structure and manage roles in a uniform way, thus increasing efficiency and effectiveness of recruitment, training and development, organisational structure, work flow and activities, customer service, etc.

Enables factual view (as opposed to instinctual) to be taken by employees and managers in career progression and succession planning.

Job descriptions are not operating manuals. Descriptions of duties concise and free of detailed operating or processing instructions should be in a separate document such as an operating manual. If necessary refer to other resources by using a phrase such as ‘according to company procedures’, or ‘according to the operating manual/safety manual’, etc.

Your position profiles (person specifications and job descriptions) need to be clear about your staff expectations. What you expect in terms of performance levels from all the staff within your organisation and how their performance will be measured should be fully detailed.

Responsibilities of Managers

As a manager, it is your role to look for ways in which you can work to improve employee performance levels right through the organisation. It isn’t just specific individuals who you are responsible for, it is everyone within the organisation and the systems that allow you to make the relevant performance measures that are your responsibility. The major emphasis of all this planning should be on establishing ways of making improvements. You need to attempt to align the performance levels of your staff with their relevant teams or departments goals – so everyone works in unison to find solutions to major performance issues.

Frontline managers are managers who are responsible for moving an employee or work group to a higher level of achievement. In many organisations frontline managers now carry out activities which were traditionally within the remit of the Human Resources Department (HR) such as providing coaching and guidance, undertaking performance appraisals and dealing with discipline and grievances. In many cases they also carry out recruitment and selection in conjunction with HR.

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The areas where frontline managers make a significant difference to people management practices include:

Performance appraisal.

Training, coaching and guidance (which is discussed in detail in Part 2). Employee engagement (involvement and communication).

Openness – how easy is it for employees to discuss matters with their frontline manager.

Work-life balance.

Recognition – the extent to which employees feel their contribution is recognised.

“Leadership is action,

not position.”

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These are all areas where, although the process may be designed by HR, it cannot be delivered by HR. The frontline manager role is crucial in a number of respects:

In enabling the HR policies and practices, or bringing them to life. In acting upon advice or guidance from HR.

In controlling the work flow by directing and guiding the work of others.

Managers often find that they have just too many tasks to perform and some things just get left behind. It is a balancing act to find the time to perform all the tasks you need to perform – but the role as a people manager is one which can not be neglected.

As a supervisor or manager, you need to consider the amount of influence that you have over your staff – you need to look at how you can find ways of improving their performance and encouraging them to make these changes.

These changes are not something that staff have to make, so you need to find ways to encourage the changes you wish to make. There are various ways of doing this, and some ways include:

Making sure the team as a whole is effective.

Building a relationship with all staff you are working with, listen to their suggestions, be honest and fair in making decisions and deal with problems in a trustworthy way.

Help and support all staff – enabling them to take responsibility for their work actions and performance levels.

Communicate with your staff and ensure that they want to make changes and improve performance.

One of your roles as a supervisory manager of staff is to ensure that those above you have the feedback and data that they need to make good decisions. This will be part of the measuring process and is something that you need to consider very carefully.

They need feedback in a timely manner, particularly when it comes to data that is used to make important decisions regarding poor performance. If you note performance issues, you need to be sure that you address these as quickly as possible and without the necessary feed-back, decision making is nearly impossible

Spend time regularly discussing performance issues with your team. Do not just wait until they are facing a performance appraisal, by then it may simply be too late. Make performance measures something you discuss at weekly or monthly meetings, so that when a performance issue arises you can deal with it as quickly as possible.

Performance appraisals are often a scary time for employees – they do not want their line manager to find out all the areas where their performance has been lacking. They may at-tempt to hide some issues and only give positive rather than negative feedback. However, as a manager you want to encourage both types of feedback, as they will allow you to actually make decisions that will impact on the way the business can improve its performance levels. Giving feedback to your staff can also sometimes be very difficult – it can be an art form to deliver bad news to your team, but it is something that with practice all managers can get used to doing. Try not to spring major surprises on staff when they are being appraised, nothing during an appraisal itself should come as a surprise – there should have been much

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If you find yourself being surprised during an appraisal – you may not have been managing year round performance very well.

Feedback is just part of a process; it involves communication from one party to another and then feedback in return. You may offer suggestions to your employee who then gives you some relevant feedback in return about their reasons for performance lacking. There may be times when positive feedback is given as well. Not all feedback needs to be negative – during performance management good performance should be rewarded. Try not to think of the process as solely a negative one.

One way to think about it is to look at the way your goals are often organised. Generally speaking there will be some goals which are high level and strategic in nature, while others are tied to specific actions and are more everyday in nature.

Those strategic performance issues may only need bringing up during a performance ap-praisal but only discussing operational issues once a year is a recipe for disaster. These should be brought up continuously throughout the year.

Delayed feedback is also not something you want to happen. By delaying feedback being given, you are leaving the door open for the problem to continue occurring. Feedback needs to be given as soon as possible so that the issue can be nipped in the bud before it becomes more of an issue than it previously might have been.

If you decide to delay the feedback that you are giving to a later date, there is room for the issue to crop up again. When it finally is mentioned, it becomes meaningless as the person to whom the feedback is given may have forgotten about what actually occurred and the circumstances that lead up to the issue. On the other hand by delaying positive feedback you are breaking the circle of reinforcement and dropping a golden opportunity for building the moral and motivation of your workforce. Continual positive feedback is much more effective than giving a lot of feedback once a year.

Giving negative feedback can be difficult, and this may lead you to not wanting to deliver it, but consider the fact that for the feedback to be effective it needs context. Deliver the feed-back as soon as possible so that the individual can relate it feed-back to things they have recently done.

Being overbearing can also be a mistake. Looking down to staff and giving them bad feed-back can make them feel small and make them lose their motivation. Show empathy to the individual and make them feel like they are actually an equal rather than at the bottom of the ladder. This can make negative feedback easier to take and deliver.

Analysing data with your staff may be a way to overcome the barriers that exist when deliver-ing bad feedback. You may find that by involvdeliver-ing staff in 360-appraisals and the like that you can encourage them to provide their own negative feedback.

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Measuring Performance

Measuring people’s performance may be easier said than done, especially when people are unwilling to comply. Artists may think their work is not able to be measured. Senior managers may say that their work can not be measured because so much of what they do is intangible. An individual who does customised work may find it difficult to measure because it is outside of the norm. While it may be difficult to measure, that doesn’t mean it is impossible. Creativity in measurement means just about anything can actually be measured.

Then you have the group of people in any organisation who simply do not want to be measured for one reason or another. Perhaps they do not want management finding out they haven’t been pulling their weight, or finding out that they do not do very much, or do not reach their objectives or goals.

Even if resistance to measurement isn’t a problem, you simply may not be able to get started because you do not quite know how to make the measurements you need to make. How can you get started?

The best way to make a start is to simply look at your organisation’s goals and look at how the specific individual concerned actually relates to those overall goals.

Performance measures need to be quantifiable. They need to be measured in terms of numbers. You are looking to determine whether a specific measure was achieved. However, think outside the box as well. While it is important to have a measure of whether something was achieved or not, you need to ensure that the measure is actually useful. We could measure this manual’s size as being around 10,000 words, and if it needed to be 10,000 words long it has achieved that goal.

However, is the fact that it met that goal actually important or even useful? What you say in 5000 words can be just as effective as what is said in 10,000 words. So perhaps a better quantifiable measure would be, does the material cover all of the performance criteria? This would be a yes/ no answer and is something that is able to be measured by reading the performance criteria and comparing it to the material in the manual.

In some cases, rather then providing a number measure, you could try developing descriptive measures – looking for performance based on a description of the material. This can be slightly more difficult to write, but can be more useful in terms of actually measuring how well something was achieved. Using this manual as an example, you may give it to some readers and ask them to rate specific aspects of the material against descriptive material such as:

Clarity

Completeness

Relevance to the performance criteria Quantifiable or Verifiable

Numbers provide a measurable and objective means of measuring performance, but as we mentioned they can provide numbers which actually are not all that useful to the end user. They may not reflect the actual levels of performance rather just provide you with some measures that are difficult to translate into actual performance.

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Any goals that you establish that are set by you or other managers immediately become subjective because the goal was set for some arbitrary reason. Why, for example, did you set a sales goal of 15% increased sale… why not 30%, why not 5%? The number itself is quite objective, but the reasoning behind the goal is subjective..

Let’s think about measuring the performance of this manual once again. We listed above some possible criteria; another might be ‘providing useful information’. This performance measure is critical but is objective. Two people may think differently about the same criteria. Therefore, you need some verifiable forms of data that can be used to make the relevant decision. These may be, for example:

Providing accurate information.

Provide information that is easy to understand. Providing information that is free from errors. Providing information on every performance criteria.

You can then make the judgement call of whether the manual itself provides you with ‘useful

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Rewarding Superior Performance

As well as providing your staff with measures to work towards and feedback where there are problems, you need to ensure that staff feel rewarded when they exhibit behaviours that are positive and work to improve the organisation as a whole.

Rewarding staff provides them with motivation to do better and allows them to feel needed within the organisation. Look at your organisation’s key priorities and link your rewards with those staff who perform well while looking at the most important aspects of the business. You want your staff to feel connected to the work they are doing and in control of any rewards that they may receive due to enhanced performance.

Often, there can be some issues with providing financial rewards, especially if there are some staff whose performance is adequate but who do not quite meet the standards set to achieve a specific reward. In these cases jealousy and disagreements may result – especially where people work in a team environment.

You may like to consider involving staff and their superiors in developing their own reward systems. By doing this, you are encouraging them to think about their own work and then finding ways in which they can manage the way that they work. High levels of involvement among your staff generally will translate into a system that is more effective than if it had been developed without their input.

What methods can you use to get your staff involved? You may consider:

Focus groups Surveys Interviews

Asking teams to look at their own performance Interviews

A combination of all of the above Informal feedback.

Money is often considered to be the most effective form of reward, however there is evidence to suggest that rewards such as recognition work just as well in most cases. Appreciating good work is an excellent place to start. You may feel quite awkward to start with, but it is something that you can work on and feel more at ease with over time.

Ensure that any strategy that you implement for rewarding your staff is in line with company culture. You want your staff to feel like they are really being encouraged for their performance. It should be more than a pat on the back. It should provide motivation to all staff members who receive the recognition or incentive.

The incentives that you put in place within your organisation need to both motivate your staff and make your organisation happy by actually ensuring that you reach your overall goals and objectives. One without the other is unlikely to be overly successful.

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By attempting to bring together both your performance and your goals, you want to encour-age improved performance among your staff and ensure that they are contributing to the overall improved performance of your organisation as a whole. Look carefully for ways in which you can utilise company culture to achieve results. Consider ideas such as stretch exer-cises, alterations to working hours, training opportunities and the like to actually allow them to feel like the organisation values their contribution to the team as a whole.

As we mentioned, the majority of people find motivation in things other than money. Money is a motivator when it is absent, but if you are being paid well, then money loses its value as a motivating factor. In these cases, you need to consider non-monetary components to a recognition strategy. Think about offering feedback to your staff, offering them moves within the organisation to keep them motivated and challenged as appropriate.

The work/life balance also becomes extremely important. People are being asked to do more and more in their life. Work is becoming more demanding as is everyday life. As the demands get higher and higher, you need to ensure that your staff have reasons to come to work – and feeling motivated and happy in their position is at the top of the list. People like to know they are making a difference in the lives of their customers and they want to know that everything they do is aimed at making a difference like this. Work hard to ensure that staff understand how change can be made to improve their workplace performance through giving them higher levels of motivation.

Rewarding your staff for exceptional performance can be accomplished in a number of ways. Some of the most common include:

Additional superannuation Bonuses

Incentives for improved performance Training

Purchasing equipment Increasing salaries.

It is acknowledged that appropriate reward can motivate employees. You need to know the systems and expectations of your organisation in relation to their incentives.

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Addressing Dissention

When staff appraisals are all completed, occasionally you may encounter dissention from one or even more of those appraised. There can be many reasons why someone would be unhappy with the outcomes of their performance appraisal.

The modern workplace strives to attempt to build productive relationships between its staff members. Having productive and happy relationships among its staff members leads to a workplace that is more efficient and effective. Workplaces that have many problems invariably lead to issues with regards to grievances among staff which can reduce productivity significantly.

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The most effective way in which to deal with these types of concerns is to have a policy in place that all staff are aware of dealing with the way in which such issues should be addressed. Ensure that your policies allow you to:

Stress that all staff should be consulted during the development of any policy; Ensure that all problems and issues are dealt with in a fair and impartial basis; Ensure that there is a time frame for the resolution of any workplace issues; Ensure that those concerned are protected;

Ensure that there are a range of solutions to problems – rather than just relying on one specific type – after all one size will not fit all when it comes to grievances.

What is a Grievance?

Let’s now consider exactly what a grievance is. Essentially it is anything that an employee may say or outline that relates to a problem within the workplace. It could be an issue, complaint or problem of any kind specifically related to work. Examples may include::

The way in which management interprets a given policy A safety or health issue

Issues with work allocation Issues with job design A workplace conflict or fight

Issues with regards to discrimination

A question, dispute or difficulty concerning the interpretation, application, or operation of an award/enterprise agreement or other agreement.

Anything that relates to performance management issues in the workplace.

Effects of Grievances on Performance

The types of issue that we have outlined above can have a significant effect on overall workplace performance. If you do not identify any such issues promptly and find solutions to deal with them, the organisation as a whole is likely to suffer and:

Productivity may be reduced

The quality of work in the workplace may fall Customer service complaints may rise Goals may not be met

There may be significant issues with regards to trusting managers and supervisors Job satisfaction may be decreased

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It is the responsibility of any supervisor or manager directly related to a specific individual to deal with grievances as they arise. They should be responsible for:

Ensuring that all staff are aware of what they need to do if any form of complaint or grievance should arise in the workplace.

Provide advice to employees about how they should deal with a specific incident and when it is time to take an issue further if need be.

Provide follow up after resolution has been reached to ensure that all parties are fully aware of where issues are at in the organisation.

Ensure that those involved are not subject to further issues.

Ensuring that full records are kept outlining any issue that occurs and the procedures that were followed.

These records are particularly important, in that they ensure that staff members are able to refer back to what was agreed on so that these can be followed up on. They also allow you to ensure that you have consulted other individuals in the workplace when issues arise, so that you get a range of opinions on what needs to be done and what can be delayed.

Grievances should not just remain local. There should be summaries sent to senior management so that they can be aware of what is happening and where problems in performance exist. Ensure that you record where issues have arisen, what issues are most commonly being brought up, what solution was implemented and how effective it was in resolving the issue in question. All procedures that you adopt when dealing with performance management issues should be fair and open to scrutiny. Do not simply rely on your opinions – think carefully about the procedures you have in your organisation and ensure they are understood by your staff. There are a range of ways that you can communicate these procedures to your staff. You may like to consider:

Preparing brochures or posters

Integrate procedures into training sessions Discuss during weekly meetings

Specific training sessions Newsletters

Attaching notes to payslips.

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Activity One - Political Qualification

This activity will enhance your appreciation of the fundamental issues of competence and job profiling necessary for determining suitability, training and qualifications in a job description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Section 1 - ‘True’ or ‘False’ Quiz

Please tick True False Infrastructure is the review system for an organisation.

A grievance is a clear statement by an employee of a work-related problem, concern or complaint.

The main purpose of performance management is to link individual objectives and organisational objectives to encourage and assist individuals to recognise their importance to the organisation.

A performance problem is any gap between Desired Results and Actual Results

One reason measurement is easy is because there is never resistance in the first place.

Position descriptions describe the detail in job performance.

Timely feedback is unimportant.

Performance improvement is any effort targeted at closing the gap between Actual Results and Desired Results.

Great communication skills are necessary if the feedback happens to be negative.

Rewarding and recognising employees can motivate people to explore more effective ways to do their jobs - or it can utterly discourage such efforts.

SUPPORT PERFORMANCE MANAGEMENT PROCESS CANDIDATE RESOURCE & ASSESSMENT BSBHRM403A