Performance Development System Improvements

Although performance management can be one of the most laborious parts of managing staff, certain documents must be kept. In some cases, these documents may be required for compliance purposes and legal requirements. Keeping accurate records, information and documents that are securely stored will assist with a review process that can be used to identify any trends and areas in the documentation that may require adjustment or attention.

This will meet any legal privacy requirements outlined in the Privacy Act 1988 (Cth). It will also allow easy access to the relevant documents for review related to the performance management appraisal and assessment.

Performance appraisals documents may record:

• the position or job description, job tasks or duties, and responsibilities
• performance indicators, goals or standards that have measurable outcomes
• the priority of each job responsibility and goal
• discussions and feedback about employee performance
• the performance development plan
• discipline procedures if the employee is not willing to meet standards or expectations¹¹.

What to review?

Several areas can be reviewed when reviewing documentation and identifying trends or problem areas. Consider whether or not:

• the appraisals follow a consistent format
• the performance review uses the approved documentation consistently
• the review uses the employee performance indicators, position descriptions and standards as performance benchmarks
• the review examines if essential information such as the date, employee name, department, employment status, manager name and performance period is recorded
• documents record the discussions around key performance indicators and whether the employee is
• performing as expected
• it includes the required job skills and other personal attributes and objectives such as accountability,
• demonstrating initiative, attention to detail and teamwork
• the documentation allows the performance review to include space for the employee to comment and provide examples where required.
• uses the performance goals and any approved and preferred rating systems — for example:

1. Outstanding
2. Exceeds targets
3. Meets targets
4. Needs improvement
5. Unsatisfactory

NA for developing or not applicable

Observations are recorded consistently about the employee's job performance as objectively as possible and using hard data. Specific examples are recorded so the employee can see exactly where they can improve.

If the employee's work is substandard, there are documents demonstrating how they will be performance managed or, in some cases, terminated. Documentation follows the performance management process and system.

As strategic objectives change or if a restructure occurs, there may be a need to review the tasks and performance indicators and identify any changes required to the position description. Reviewing the employee's existing position description should also ensure that it is still relevant, as the employee's role can change as the organisation grows. The key performance indicators should reflect the current and ongoing position.

The documentation review should also include the development objectives to ensure that any new required skills will support the employee. The documentation review can examine if any professional development opportunities are identified, documented, planned, and relevant to the position.

A review of the documentation can contribute to the overall analysis to determine the strengths and weaknesses of the performance development system¹².

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For the organisation to remain competitive now and in the future, the employees must have the required skills and knowledge and perform at the required levels.

When performance appraisals are conducted, a process usually includes identifying and documenting any gaps in the employee's performance and identifying skills required for the role. This is often referred to as a performance or skills gap analysis. This process identifies what aspects are lacking in the performance of the employee in a particular role.

The process involves examining the actual performance and is measured against performance indicators or standards established by benchmarks for acceptable performance in that position. It simply consists in identifying the skills and competencies needed for the role and then comparing them with each employee's skills.

Another type of skills or performance gap analysis determines what additional skills and training may be needed to bring individual employees up to the acceptable standard for the future. This process may also identify any performance gap when new technologies are introduced into a workplace or when a position changes focus due to organisational changes¹³.

The performance and skills gap analysis is demonstrated in the diagram below.

Performance Development

Once the performance, skills, and competency level gaps have been identified, a review of any trends or patterns in skill or performance gaps can assist with the planning of suitable options for performance development.

The patterns in the performance gap analysis may outline the need to plan for additional training for the staff. The type of training will vary due to the performance and skill levels of the team.

Options for performance development training may range from a refresher training program to a more comprehensive training program if the employee has little or no skills level.

Other options for performance development might include:

• organising one-on-one training
• on-the-job training
• purchasing new equipment to be able to complete tasks
• making any alterations in the design and logistics of the office, warehouse, or another work area
• offering formal training outside of the organisation
• attending accredited training programs¹⁴.

Once any changes have occurred, a follow-up performance gap analysis should be performed to determine whether the skills and performance gaps identified in the first performance appraisals have been remedied.

The following video discusses skills that can be included in a resume or identified as a gap.

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Each organisation will have a different process for reviewing and analysing the various policies and procedures. Some organisations will align the review of policies and procedures with their quality and continuous improvement processes. In contrast, other organisations will review them when there are changes to legislation or when the policy or procedure is due for review.

Various policies and procedures related to performance management are designed to reflect and support the organisation's business strategy, objectives, and requirements. The different approaches and procedures may include:

• recruitment, selection and onboarding
• work, health and safety
• Privacy policy
• anti-discrimination
• diversity
• complaints
• discipline and termination
• use of the internet and email
• use of social media
• misconduct, including theft and fraud
• code of conduct
• warning systems and processes
• grievance procedures¹⁵.

The process that may be used in the preparation of the identification and review of policies is outlined in the diagram below.

A review can highlight any improvements or actions that need to be undertaken to improve the policies, procedures and strategies, along with improvements to the performance management system.

One way to review the policies and procedures is to analyse the strengths and weaknesses of the several policies and procedures, which can be achieved using an audit review checklist. An example of a checklist is outlined below.

Review Checklist

All policies and procedures must be reviewed and kept up to date. Outdated policies put the organisation at risk and may prove non-compliant with new laws and regulations.

Regular review keeps your organisation updated with rules, technology and industry best practices. Reviews ensure that the policies and procedures are consistent, effective and in line with the business strategy¹⁶.

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A performance management system, like any organisation process or procedure, must be reviewed regularly to ensure that it reflects the organisational strategic plan, objectives and targets. The performance management system must be able to align objectives and performance indicators of the role against the employee's actual performance. The system should also be able to document the performance appraisal or review (and assessment) to ensure that it meets the overall strategic perspective and objectives. This will allow the organisation to identify any performance gaps.

Many organisations use continuous improvement systems that provide a process by which they can improve the organisation's products, services, or processes. This process can be incremental, with the improvements occurring over a period of time or through breakthrough improvements where the progress happens all at once. The goal of continuous improvement in this example is to be able to evaluate and continually update the performance management system. It aims to ensure that the performance management system can achieve better results and improve the process.

How to improve performance management

Suggestions to improve the performance management may include:

• user-friendly documents (or online system) to document performance appraisals outcomes
• clear job descriptions with standards and performance indicators to measure performance
• performance management plan integration
• system to allow for two-way feedback
• purchase a performance management software that can track and standardise the performance management process
• ensure that there is a way to track and schedule one-on-one meetings and check in on employee goals
• systems allow employees can manage their performance and keep track of their own goals
• better access to relevant supporting forms or documents to conduct the performance development processes, such as performance monitoring and development, disciplinary and dismissal.

Once the various evaluations have been conducted, any suggestion of improvements to resolve the identified issues and ways to improve the performance development processes must be made to the relevant stakeholders. Suggestions may be relayed to stakeholders via emails, presentations, training or information sessions, staff meetings, and one-on-one meetings¹⁷.

The following video discusses the importance of continuous improvement.

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