Performance Development Infrastructure

The performance development process is more commonly referred to as the performance management process. A performance development/management process is a system used to track and monitor the performance of employees against the organisation's strategic and operational goals.

In any workplace, people are assigned roles and have specific duties they perform. It lets us know who is responsible for what and if things are getting done correctly and at the right time. The human resource team is responsible for ensuring the job descriptions are accurate and up to date and what steps to take should any employees be underperforming.

In this topic, we will examine how to ensure that the team has relevant position descriptions that specify the critical requirements of the role. We will outline how to assist the relevant stakeholders in reviewing the performance management system and prepare performance indicators consistent with the position description requirements.

Performance management systems allow managers and team leaders to prepare and conduct performance appraisal meetings using performance indicators in position descriptions that align with organisational procedures. Performance management appraisals and procedures usually outline recognising good performance and addressing any underperformance issues.

By the end of this topic, you will understand:

• how to prepare position descriptions and specify critical requirements of the role.
• performance management systems and have the ability to assist with the review.
• how to prepare performance indicators and appraisal meetings .
• the procedures for performance management.

A job description (also sometimes called a position description) is a statement that clearly outlines and describes the job role. It should include the purpose of the role, often referred to as the job purpose, position purpose or objective. The job description outlines the conditions of the role and its competency requirements, including the tasks required by the role.

It includes a description of how the tasks must be performed. A job description usually outlines the qualification requirements and licences required to complete the duties.

To prepare a job description, you may wish to conduct an analysis that determines the:

• purpose of the role
• major areas of responsibility of the role
• main tasks involved in these areas of responsibility
• relative importance of these requirements
• requirements for a person to successfully perform the role's duties
• supervisory responsibilities and independence in decision-making
• reporting relationship(s)
• competency requirements (i.e. knowledge, experience and skills required) specialist software and equipment requirements
• selection criteria.

There are numerous systems that organisations can use to manage the performance management process. Most performance management processes are conducted formally during probation periods and yearly with an emphasis on financial rewards, incentives and potential disciplinary actions for underperformance. There are relevant stakeholders in the organisation that may require assistance in reviewing the performance management system.

The relevant stakeholders may include:

• colleagues
• human resource managers
• human resource officers
• senior management
• supervisors
• unions and employer organisations.

Some organisations have conducted reviews of their performance management systems to discover that yearly reviews focus far too much on past performance and hold people accountable for past behaviour. This has not necessarily allowed for the planning of opportunities to improve the current performance of individuals. It also misses the opportunity to identify potential leaders and the competencies required for the organisation's strategic direction in the future. Having an effective and competent workforce now and in the future is critical for the organisation's long-term success and survival.

A review of performance management systems may include tasks such as determining:

• if the procedures and guidelines for providing feedback are consistent across all levels in the organisation
• that the performance management process meets the needs of the organisation
• that any disciplinary actions are followed according to the discipline policy and procedures
• that the performance management and evaluations are aligned to the required performance measures
• if the system allows processes to enforce the acceptable boundaries of performance
• if the system allows for staff recognition
• if the system provides detailed and effective feedback and communication
• if the system motivates individuals to do their best in their roles¹.

The strengths and weaknesses of a performance development system may relate to:

• how easy it is to use
• whether the system is fair and equitable
• internal and external consistency and coherency
• transparency.

Reviewing the performance management systems can assist in determining if it has consistent procedures, guidelines and forms and uses standard performance measures. Having the right system in place makes you more likely to get consistent results and identify performance improvement areas. It is essential to effectively assist relevant stakeholders in reviewing the performance management system to ensure it aligns with the organisation's strategic direction.

Watch the following video to learn more information about a performance management review system.

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When preparing performance indicators for position descriptions, it is essential to ensure that they reflect and aim to meet the organisation's strategic objectives. Suppose one of the strategic organisational objectives is to expand the product or service offerings. The operations staff could provide key performance indicators and targets to source potential products in that case. Meanwhile, staff from the marketing team may be required to develop marketing plans and strategies to promote the new products or services.

The performance indicators should be aligned to the overall strategic business objectives and measure the areas that will assist in achieving the objectives. Both sets of these performance indicators have a direct and measurable impact on the organisation's objectives and specify and describe the performance standards that the staff are expected to achieve. The performance indicators are incorporated into the organisation by setting measurable personal targets for individual staff members or teams. The preparation process of the performance indicators must ensure that they are consistent with the position description requirements. It should assist with conducting performance appraisals and with overall performance management.

The performance indicators should also be able to identify any areas of improvement or indicate areas that require further action. Examples of performance indicators are listed below.

• Monthly sales target, such as an increase of sales by 5%.
• Monthly increase of new customers by 2%.
• Increase customer engagement level by 10% over six months.
• Increase the number of monthly quotes/orders from the previous six months.
• Percentage of projects completed on time.
• Decrease in the number of cancelled projects.
• Projects to be delivered on time and within budget.
• Return on investment (ROI).
• Retention rate of customers.
• Monthly website traffic increases.
• Website traffic from organic search.
• Returning vs. new visitors to the website.
• Average time spent on website page.
• Click-through rate on website pages.

Other types of performance indicators examples can include:

Performance appraisal meetings

Once the performance indicators have been developed in line with the position descriptions and the relevant performance management system has been decided, the next step is to prepare for performance appraisal meetings².

When preparing for performance appraisals, it is essential to include the following:

• job description and performance indicators
• any previous work records, including any observations
• previous review cycles information
• any notes or actions from previous formal performance appraisals
• obtain any other performance feedback from people with whom the employee has worked with
• any feedback from customers if the role is a customer service focus
• team members' feedback if teamwork is an aspect of the employee's role
• relevant forms and access to systems or software must be completed as part of the performance appraisal.

Appropriate forms and access to systems or software must be completed as part of the performance appraisal. As part of the preparation, book a time and meeting room that suits the employee and allow the performance appraisal to take place without interruption.

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Effective performance management includes examining the measures of performance and the progress made towards achieving the individual's and the organisation's business objectives. Performance management and monitoring is an essential tool relevant at all organisational levels and provides a way to improve organisational performance by linking and aligning individual, team and organisational objectives and results.

It provides a way to recognise and reward good performance and manage any underperformance or poor performance issues. The process involves planning, establishing, monitoring, reviewing and evaluating performance against individual work objectives, key performance indicators or other standards and work requirements. It is essential to provide managers with the necessary support and work with them to ensure performance is monitored regularly using the organisation's processes. It also needs to be done following any legislative requirements. The relevant organisational procedures should be identified to acknowledge good performance and address any underperformance issues³.

The performance management process must be easy to follow and provide the manager undertaking a performance appraisal with the required documentation and steps to undertake the performance appraisal effectively.

If any issues are identified with the performance standard, an appropriate intervention or support may be required for the employee. Any help or intervention that is to occur must be conducted following organisational policies and legal requirements.

Support and intervention for underperformance may include:

• coaching
• counselling
• disciplining
• giving praise and recognising good performance where appropriate.

Managing poor performance

Organisations will have policies in place for dealing with warnings and grievance procedures. If the employee's work is substandard, there are documents demonstrating how they will be performance managed or, in some cases, terminated. You must follow appropriate grievance procedures to address the employee's performance.

Disciplinary action against an employee might result in a formal written warning. For example, there may be a long record of underperformance that is not improving or resolving with the current practices.

Disciplinary action should have a valid reason and follow a fair process. Before taking disciplinary action, getting advice from the organisation's workplace relations professionals is crucial.

Regular follow-up meetings will need to be planned to discuss progress and see if there are any different ways to support the employee, such as formal training.

If the employee continues underperforming, further action will need to be taken, such as:

• holding another meeting
• issuing a second warning
• providing additional training

If the employee continues not to improve, termination could be a possible outcome.

The following video provides advice about managing poor performance.

Communicating about performance

Managers can communicate with employees weekly to determine how they are managing their tasks, their priorities, what work has been undertaken and if they require assistance to complete their tasks. It is an effective process as it is simple and time efficient and provides the manager with up-to-date information on the performance of their employees.

How often monitoring is to occur will depend on the organisational requirements. This is usually outlined in a performance management process, system, policy and procedures⁴.

This may include or consider:

• weekly meetings with individual staff members
• observations on the job
• feedback from customers, both positive and negative
• number of complaints lodged
• improvement in performance statistics—fewer errors
•  feedback from other team members
• meeting deadlines
• self-assessment tools or questions
• evaluation of performance against targets
• work reviews
• work progress checks
• email monitoring
• internet searches monitoring
• checking work against performance indicators
• checking for absenteeism
• checking for lateness.

It is essential to support managers, provide training and access to the policies, procedures, objectives and other relevant information, and schedule weekly individual and staff meetings.

Watch the following YouTube video that discusses changing trends and performance management

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