People do not work at peak performance all the time. They make mistakes, and sometimes these mistakes have tragic consequences. One extreme example of performance issues is the case of the Challenger Space Shuttle which exploded less than a minute after lift-off in January 1986.
Case Study
Challenger Space Shuttle Disaster
The Challenger was a space shuttle built by NASA in 1983, which successfully completed nine missions prior to the disaster of January 1986.
There were two major contributing factors to the disaster, one physical (mechanical failure of a key component - an O-ring seal - due to abnormally cold weather that day) and one human performance. This summary of 10 performance management issues identified in a presidential review commission was reported by Forbes.com, with some recommendations for more effective performance management made:
- Risks hiding in plain sight: Failure of project leadership to review the history of the faulty part, which led to a lack of proper evaluation of the launch conditions.
Recommendation: Project leaders should commit time to look for warning signs of possible risks “in the files”.
- Failure of risk management: NASA proceeded with the flight despite the part manufacturer warning that icy conditions would result in an “unknown condition” which posed a potential flight safety risk.
Recommendation: Effective risk management should consider and evaluate indicators which could be critical to project success or failure.
- Senior launch officials did not know that a contractor, as well as project engineers, had recommended to not to launch at a temperature below 11.6ºC or that the manufacturer had raised concerns about performance in icy conditions. Temperatures of around minus 6ºC had been recorded on the launchpad just hours before launch time
Recommendation: Information flow must allow for key information to be shared by all relevant project participants with the decision makers.
- At some point, NASA management decided to ignore existing flight-safety launch constraints.
Recommendation: It is vital that decisions to override compliance checks and balances are reviewed by higher levels of management.
- Increased acceptance of higher risk levels: A belief that because “we got away with it last time”, the decision to ignore warnings of a design flaw resulted in the flight going ahead anyway.
Recommendation: Project leaders should recognise that “getting away with it” is not an acceptable level of risk analysis.
- Yielding to pressure: Despite the vigorous concerns expressed by its engineers, a major contractor changed their mind about approving the launch in order to accommodate their main customer.
Recommendation: Protections against decisions overly-influenced by financial reasons which override risk evaluations should be implemented.
- “The fox guarding the chicken house”: Issues of safety, reliability and quality were under the supervision of the very departments and organisations responsible for implementing them.
Recommendation: Organisational risk management and compliance structures should ensure appropriate checks and balances.
- Insidious risk equations: By ignoring warning signs so egregiously, there was an assumption that unless a contractor proved that a launch was unsafe, NASA would assume it was safe, even if this was never stated by contractors
Recommendation: Risk management and compliance is compromised by standards biased in favour of project design feasibility.
- Counter-productive organisational culture: Potentially serious issues were attempted to be mitigated internally, rather than escalated to higher management for evaluation and actioning, which is against effective risk management practices.
Recommendation: Leaders should actively promote knowledge and information sharing across management levels, particularly those with risk, compliance and legal responsibilities.
- “Just Say No” Five booster rocket engineers working for NASA’s major contractor tried (unsuccessfully) to prevent the launch taking place because of their concerns about the possibility of failure of the O-ring in the cold.
Recommendation: People with expert knowledge should be heard when they raise concerns, and these concerns should be acted upon.
(Peregrine, 2022)
Glossary of Performance Management Terms
Performance feedback is sought from multiple perspectives, e.g. self, peers, supervisor, customers, staff.
Coaching involves training learners and encouraging them throughout the learning process. Coaching is offered to individuals and teams with the aim of achieving superior performance or achieving a set goal.
An experienced person who provides advice and support to a less experienced person.
A structured discussion between an employee and their supervisor to determine the cause of a performance problem and to generate solutions.
An action plan that provides a means of helping an employee maintain or enhance the knowledge, skills, and abilities needed to do the current job.
The difference between the required performance and the actual performance.
A process for creating a shared understanding of what an individual is to achieve and managing and developing individuals to achieve in both the short and longer term.
The level of performance set for an individual or group.
Promoting Performance and Productivity
There are certain things that must be present in our workplaces if we are going to do our jobs well and perform to the best of our ability. These five conditions are required:
- Clear goals: we must know what is expected of us in terms of clear standards and targets to achieve.
- Motivation: we must be motivated to perform well. This means we must know that the job is worth doing and doing well and is worth our effort. We must also believe that we can do the job well.
- Training: we must know how to do the job. This requires experience to reinforce our training, skills and knowledge.
- Equipment: we must have access to the necessary tools, equipment, materials and work systems. Other job conditions, such as time and information, must support us.
- Good leadership: we must also have leaders who set clear directions and positive visions, who coach us, and who set a good example.
Who do you think is responsible for putting these five conditions in place for your team? You are, as the frontline manager!
Indicators of Poor Work Performance
Some of the indicators of poor work performance by team members are:
- Failure to meet performance or productivity targets
- Loss of morale
- Conflict
- Impaired relationships
- Cost blow-outs
- Customer complaints
- Loss of customers
- Accidents and mistakes
- Absenteeism
- Resignations or transfers
- Failure to observe policies and procedures
- Low efficiency.
You’ll note that these indicators of poor work performance can also be viewed as the results of problems within the team. As the frontline manager, it is your role to find the causes of these problems and develop ways to reduce or eliminate their effects on team performance.
What are the most common causes of poor performance? Some causes include:
- Poor or insufficient training or experience
- Faulty tools, equipment or materials
- Unworkable systems or procedures
- Unclear or unspecified performance standards.
The Cycle of Performance Improvement
In addition to ensuring that the five conditions described above are present in the workplace, frontline managers can use a systematic sequence for improving the work performance of a team member. This cycle can be used as a general guide in coaching and counselling for performance improvement.
- Analyse your information.
Make sure you know exactly what behaviour you expect of your team member and be able to describe your team member’s behaviour in relation to the standard required. Your description should be factual and not based on hearsay. Gather your facts and prepare for the discussion. You must be professional and fair in collecting this information and must not disclose private information, including performance discussions. An example of a tool that collects information from relevant sources is a 360 Degree Feedback Survey. Watch this video to see how it’s done.Watch
360 Degree Feedback in a Nutshell | AIHR Learning Bite
What is 360 Degree Feedback and how can it benefit your organisation?
Duration: 3:56
- Give good information.
Sit down with the team member and calmly discuss the situation. Present your information and describe the performance gap clearly. Explain why it’s important that the team member reaches the required standard of behaviour or targets. - Gather good information.
Ask for the team member’s point of view and listen without interrupting. Try to see things from the team member’s point of view — this doesn’t mean you have to agree. - Problem-solve.
Try to find the cause of the poor performance by working through the five keys or conditions described earlier. What’s preventing the team member from reaching the required standard? - Agree actions.
Focus on the future and the solution to the problem. Decide what steps you will each need to take to improve the team member’s performance. Some of these performance improvement processes are described in the next section.
The Performance Improvement Process
The ways in which a manager monitors, assesses and manages the performance of team members need to be flexible, and should enable and encourage continuous learning and development in individuals and teams.
Some of these processes include:
- Performance and development planning
- Providing regular feedback
- Conducting progress reviews
- Coaching
- Counselling
- Training
- Performance appraisals and appraisal interviews.
Whatever action is taken to address poor performance, it should be done with objectivity, fairness and recognition of the feelings of the individual. Any other approach, besides being indicative of poor management practice and ethically unsound, might lead to legal problems.
To begin to manage this situation, you should consider the following:
- How is the employee’s current performance not meeting the requirements of the job?
- What is causing the ineffective performance?
- What action can be taken to assist or support the employee in improving performance? What other resources are available?
- What action should the employee take to improve performance?
- How significant is the unacceptable performance? Is it in a critical area of the employee’s job? Does it affect other employees or customers?
- What can be done if performance continues at an unacceptable level?
Watch
Effective Performance Management Overview
The benefits of Effective Performance Management
Duration: 5:45
Questions
Pre-Watch Question: What does performance management look like at your workplace?
Post Watch Task: What is the difference between traditional performance management and effective performance management?
Here are some strategies for managing ineffective work performance. The best choice will be a result of correct diagnosis of the cause of ineffective performance.
Coaching
As we saw in the section on Coaching and Mentoring, coaching consists of frequent, specific feedback intended to raise the level of performance. It is an effective tool to improve performance of a team member that falls below expectations or that deteriorates.
Training
Training is an effective method of improving performance if a skills problem is the cause. Don’t assume that an employee is not performing well because of a lack of knowledge, ability or technical competence. Training will not fix problems associated with motivation (unless lack of motivation has been brought about by lack of confidence in doing the job), nor will it fix problems with the work environment.
In situations where training is indicated, there are a number of options. Someone skilled in the task and with good training skills (usually the manager, supervisor or a senior employee) may conduct training on-the-job. Formal training courses may be designed and delivered internally by HR, or by external providers.
It may suit some employees to undertake training on-line. There are many organisations that facilitate this for their staff through the purchase of self-paced online training programmes from external providers.
Mentoring
Mentoring may be a solution for a team member whose performance was previously promising, but who has suffered a ‘performance slip’, perhaps because of boredom, a perceived lack of development or career opportunities, or personal problems. As we discussed in the topic on Coaching and Mentoring we know that a mentor is generally someone other than the employee’s immediate supervisor who is an older and more experienced member of the organisation or profession.
Employee Assistance Programmes (EAPs)
Employee Assistance Programmes provide free, professional, confidential counselling for employees and their families to assist when personal or work-related problems are affecting work performance. This service may be provided internally by a dedicated EAP unit within your HR department, or externally by one of a number of New Zealand providers such as EAP Services, Instep, OCP, Workplace Support etc.
In addition to counselling, EAPs also organise practical assistance for employees with problems such as drug and alcohol abuse, occupational trauma, communication difficulties, organisational change problems, redundancy or issues around retirement. EAPs also help to ensure that an organisation’s legal responsibilities in relation to occupational health and safety are fulfilled, as physical and mental health are regulated by legislation.
Policies and procedures
Sometimes poor performance occurs because there is a lack of knowledge about what constitutes good performance. If organisational policies and procedures, codes of conduct and workplace task standards are deficient, incomplete, unclear, ambiguous or not easily accessible, then poor performance could result. It is your responsibility as a frontline manager to ensure that appropriate written instructions and documentation are available in the workplace. Senior managers or the Human Resources Department are usually responsible for developing, broadly communicating and evaluating organisational performance requirements and standards.
Work environment
Similarly, you are responsible for providing and monitoring a work environment conducive to achieving required standards of performance. If the physical environment is uncomfortable or disruptive (noisy, hot/cold, unventilated, dark) then the performance of your team members may be adversely affected.
There are other conditions in the work environment over which you may have little or no direct control. Examples are:
- unstable organisational structures that contribute to uncertainty
- unclear or outdated job descriptions that lead to lack of role clarity
- ineffective payroll systems that cause delays in payment or errors in calculations
Your contribution towards improving the performance of your team members if sub-optimal conditions exist may be to report them in a timely fashion to senior management.
How to manage performance issues
Managers need to act promptly when issues of poor employee performance are identified. These issues won’t fix themselves while managers sit back and hope for the best; rather they are likely to worsen if left unaddressed. This may be because the employee themself doesn’t realise their performance is sub-par, and therefore doesn’t realise that they need to alter their habits. If ignored, this can have a negative effect, not only on the employee and their peers, but also on the organisation as a whole. A positive approach to dealing with would be to reframe the performance issue as an opportunity rather than in purely negative terms: i.e. as a chance to help the employee to reach their potential. Managing performance can become a positive activity when ongoing feedback and discussion is encouraged in an open and supportive environment.
Policies and procedures which gather and offer feedback are beneficial in helping organisations to address performance issues as they arise, and it is vital that organisations make these processes known to employees.
Read the article linked below and download the sample performance issue management letters included on the webpage. These letters cover the gamut of performance-issue situations from initially inviting an employee to a meeting to discuss their performance issues, to a final letter informing the employee of the termination of their employment for continued poor performance.
Reading
How to manage performance issues
Ways to manage performance issues effectively and positively using informal and formal processes.
Expected Duration: 15 minutes
URL: Employment.govt.nz
Performance Development Plans (PDPs) are structured processes designed to enhance an individual's professional growth and effectiveness within an organisation. These plans typically involve setting clear objectives, identifying areas for improvement, and outlining strategies to achieve those goals. Here's a breakdown of the components and benefits of performance development plans:
- Objective Setting: The first step in creating a performance development plan is to establish specific and measurable objectives. These objectives should align with the individual's role, responsibilities, and the organisation's overall goals. Objectives should be challenging yet achievable, providing a clear direction for development.
- Identifying Development Needs: After setting objectives, it's crucial to identify areas where the individual needs improvement. This can involve conducting assessments, gathering feedback from supervisors and peers, and self-reflection. Development needs can encompass various aspects such as technical skills, soft skills, leadership abilities, and knowledge gaps.
- Creating Development Objectives: Once development needs are identified, specific objectives should be formulated to address them. These objectives should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. For example, if an individual needs to improve their communication skills, a SMART objective might be to participate in a public speaking workshop and deliver at least two presentations within the next six months.
- Implementing Development Plans: Implementation involves creating an action plan to achieve the development objectives. This plan may include activities such as training sessions, workshops, mentoring, on-the-job experiences, or educational programmes. It is essential to allocate resources, set deadlines, and provide support to ensure the successful execution of the plan.
Benefits of PDPs
PDPs provide employees with opportunities to enhance their skills, knowledge, and capabilities, leading to personal and professional growth. This can increase job satisfaction and motivation, as employees feel valued and invested in their development.
By addressing development needs and setting clear objectives, PDPs can lead to improved performance and productivity. Employees become more effective in their roles, contributing to the overall success of the organisation.
PDPs facilitate open communication between employees and managers. Through ongoing discussions about goals, progress, and challenges, both parties can provide feedback and support each other's development.
Performance development plans help identify high-potential employees and groom them for future leadership roles. By investing in employees' development, organisations can build a pipeline of talent and reduce reliance on external hiring.
PDPs ensure that individual development efforts are aligned with the organisation's strategic objectives. When employees grow and develop in areas relevant to the business's needs, it contributes to overall organisational success.
Meeting Development Needs
When identifying individual learning and development needs, involving the individual in the discussion is essential. It opens the conversation to ask questions and provide feedback. The individual will:
- have an awareness of in which areas they feel confident
- understand in which areas they would like to improve
- be able to identify their interests
- be able to identify where they could grow and potentially provide an expert service for the business
- have control of their learning and development.
You confirm the learning plan with the individual by:
- involving the team member in formal discussions and meetings about their learning needs
- collaborating with the individual on what types of learning they need and how they prefer to learn
- allowing the individual to see the learning plan once drafted and approve of the plan before commencing; they may like to modify or adjust it based on their needs.
A performance gap refers to the difference between an employee’s desired performance and their actual performance. The performance gap highlights areas where improvements are needed. Some common examples of types of performance gaps include:
- Skills and Knowledge Gaps, for example:
- A customer service representative doesn’t have enough product knowledge to answer a customer enquiry
- A marketing specialist has difficulty getting to grips with a company’s social media marketing platform
- Task-Specific Gaps, for example:
- An accountant makes frequent data entry errors
- A warehouse worker has significantly more damaged goods while packing orders
- Behavioural Gaps, for example:
- An employee frequently arrives late to work or misses deadlines
- An employee demonstrates a negative attitude or poor communication skills when interacting with clients.
- Results-Oriented Gaps, for example:
- A salesperson consistently falls short of their sales quota
- A content writer struggles to meet deadlines
Managing a Performance Gap
Early intervention is key to resolving performance issues and can be started by the employee or the manager. Managers should ensure they have a clear and unbiased understanding of what the situation is and prepare themselves prior to meeting the employee. Managers can check with other managers who work nearby, or who interact with the employee to check their own assessment of the situation. Managers should also consider whether there are any underlying or mitigating factors which could be contributing to the performance gap. Remember that all incidents of performance issues should result in feedback given to the employee.
- Informal Intervention
Not every performance issue needs a structured process. Read the following article about informal intervention, which details this 5-step process:
Step 1: Identify the problem
Step 2: Assess and analyse the problem
Step 3: Meet with the employee informally to discuss the issue
Step 4: Jointly develop a solution
Step 5: Stay in touch and monitor performance(Informal Intervention, n.d.)Reading
Informal intervention
A guide created by Employment New Zealand for managers to manage performance issues informally.
Expected Duration: 20 minutes
Questions
Pre Read Question: Read the article and be sure to expand all of the 5 steps (outlined above) for informal management and read those.
URL: Employment.govt.nz
- Formal Intervention
Sometimes informal intervention is not enough to encourage the employee to raise their performance to the required level. In these cases a more formal approach is needed. Performance improvement is a forward-looking process which focuses on the identified concerns and does not attempt to introduce different, older issues after it has begun – this may be seen as unfair. On the page linked below there is a set of resources which can be used by managers to work through the performance improvement process. Be sure to read the entire contents of the page, which is created by Employment New Zealand, and also details:- Warnings and performance improvement plans
- Bullying or harassment claims in performance process
- Dealing with stress claims.
(Formal Intervention, n.d.)Reading
Formal intervention
A guide created by Employment New Zealand for managers to manage performance issues formally.
Expected Duration: 20 minutes
Questions
Pre Read Question: Read the article and be sure to expand all of the Managing Formal Intervention processes and read those.
URL: Employment.govt.nz
In this final topic on Performance Management we have seen how to recognise and deal with performance gaps, including:
- Promoting performance and productivity
- Indicators of poor work performance
- The cycle of performance improvement
- The performance improvement process
- Managing ineffective work performance
- Performance development plans
- Performance gap
- Informal intervention
- Formal intervention
Congratulations!
You have now reached the end of this Level 4 programme on First Line Management. Congratulations to you all for getting there, and we hope you have enjoyed learning and gaining knowledge gained in the important field of First Line Management. You are now equipped with the skills and insights you will need as you embark on your career in the complex and dynamic world of management but remember that this is just the start of the journey. Continuing to learn and gain knowledge is the key to getting ahead!
