Performance appraisal Best practices

Performance Management Best practicesPresented by: Farhad Mahbub (CAHRI, AFAIM)Latitude12 Pty Ltd

ContentTraditional PMS stagesPMS evolution to best practicesSome best practices of PMSLegal consequences

Traditional PMS stages1. PLANNING

2. PERFORMING3. REVIEWING

4. REINFORCING

1. PLANNINGAdministration PlanningLine managers responsibility to consult with their team members on the following; Performance management process and timelineWhen they will be required to attend for KPI settingWhen their performance will start to be assessed

Follow SMART Rule:SpecificMeasurableAttainableRelevantTime-Bound

Stage 1

KPI SettingCorporate &Business Unit

KPI CommunicationLine managers must invite team members to meet with them and discuss/set Individual KPIs

Stage 2 PERFORMINGOne, Two, Three, ACTION!Both the line manager & employee have a part to play in the assessment period

Employee:Keep track of KPI achievement/ progress. Report to line manager if any issues with KPI

KPI Adjustment During this period, KPIs can be reviewed and adjusted due to a number of factors;Change in organisational structureChange in business goalsMacro economicsOther factors affecting validity Any KPI adjustment at this stage must be approved by Line Manager

Line Manager:Keep track of KPI achievement/ progress.

Stage 3 REVIEWINGASSESSMENT PERIOD ENDSKPI assessed

1. Line Manager DialogueLine Manager conducts performance Dialogue2. Line Manager RatingPerformance rating or achievement % score3. Sign offSign off by both parties

Stage 4 REINFORCINGAfter the REVIEW phases are complete, development plans and performance improvement plans are put in placePerformance Improvement PlanRewards and Incentive

Development Plan

PMS evolution stagesPrimitive- Hire and FireBasic- Dialogue one wayTraditionalDialogue two wayDevelopment focusReward and reprisalContemporaryDialogue multipartySelf development focusedCascaded GoalsComparative ratings360 degree

BestpracticesSelf reportingTeam dashboard3 tier frameworkGoal cascadingStory tellingPerformance dialogueRating calibrationPerformance improvement and development plan

Self Reporting

When organisation reaches to the culture of creating self tracking and self awareness of performance appraisal

Employee has clear understanding of responsibilities and accountabilities

Employee has clear understanding of self contribution to overall business goals

Employee development is at highest priority

Visual is the most effective tracking

Team Dashboard

Three tier frameworkPerformance CentricHigh performance cultureHigh performance directly linked with high individual rewardShort term performance improvement planStrict actions for non-performersSocial CentricCollaboration and engagement centricTeam focusedInter and intra team coherenceTeam responsible for performance achievementReward shared among team than individualDevelopment CentricNo monetary rewardIndividual and team development opportunitiesLong term performance improvement planSoft approach to performance targetsLinked with competency framework

Goal Cascading

Story Telling works bestOur revenue target for the year is.

Our sales growth target is %%%

Our sales growth target is %%

Our client said they want to see improvement in..

Performance dialogue

Rating calibration

Grand Father Review RulesLine Manager reviewLine Managers Manager ReviewEmployee self assessmentBell Curve

Cross MatchingDarwin VS Palmerston Manager VS Officer Male VS Female Indigenous VS Non-Indigenous

Performance improvement & Development plan

PIPProfessional DevelopmentCareer Development

Performance Improvement plan

Legal consequenceFWA Harshness criteriaValid ReasonNotification of reasonOpportunity to respondRefusal to discuss with support personWarning of unsatisfactory performanceSize and Procedures followedPresence of dedicated specialised HRAny other relevant matters

Reasonable management action789FD When is a worker bullied at work?(a) while the worker is at work in a constitutionally-coveredbusiness:(i) an individual; or(ii) a group of individuals;repeatedly behaves unreasonably towards the worker, or agroup of workers of which the worker is a member; and(b) that behaviour creates a risk to health and safety.(2) To avoid doubt, subsection (1) does not apply to reasonable management action carried out in a reasonable manner.(1) A worker is bullied at work if:

Reasonable management actionExamples of reasonable management action can include but are not limited to (NT Worksafe guide):

setting reasonable performance goals, standards and deadlines rostering and allocating working hours where the requirements are reasonable transferring a worker for operational reasons deciding not to select a worker for promotion where a reasonable process is followed informing a worker of their unsatisfactory work performance in an honest, fair and constructive way informing a worker of their unreasonable or inappropriate behaviour in an objective and confidential way implementing organisational changes or restructuring taking disciplinary action including suspension or termination of employment. Workplace conflict Differences of opinion and disagreements are generally not considered to be workplace bullying. People can have differences and disagreements in the workplace without engaging in repeated, unreasonable behaviour that creates a risk to health and safety. However, in some cases, conflict that is not managed may escalate to the point where it meets the definition of workplace bullying.

Reasonable management actionWhat is management action? (FWC Anti-Bullying Bench book) The following are examples of what may constitute management action: performance appraisals ongoing meetings to address underperformancecounselling or disciplining a worker for misconduct98 modifying a workers duties including by transferring or re-deploying the worker99 investigating alleged misconduct100 denying a worker a benefit in relation to their employment, or101 refusing an employee permission to return to work due to a medical condition.An informal, spontaneous conversation between a manager and a worker may not be considered management action, even if issues such as those listed above are raised.Recent workers compensation cases suggest that, to be considered management action, the action must be more than simply day-to-day operational instructions that are part and parcel of the work performedThe Explanatory Memorandum suggests that the term may be required to be given a wider meaning under s.789FD(2): 112. Persons conducting a business or undertaking have rights and obligations to take appropriate management action and make appropriate management decisions. They need to be able to make necessary decisions to respond to poor performance or if necessary take disciplinary action and also effectively direct and control the way work is carried out. For example, it is reasonable for employers to allocate work and for managers and supervisors to give fair and constructive feedback on a worker's performance. These actions are not considered to be bullying if they are carried out in a reasonable manner that takes into account the circumstances of the case and do not leave the individual feeling (for example) victimised or humiliated.

Summary Self ReportingKPI Dashboard3 tier frameworkGoal cascadingStory tellingPerformance dialogueRating calibrationPerformance improvement plan

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