1. Performance Management

2. Objectives
• Understand what performance management is
• Comprehend managements role in performance management
• Be able to set SMART Objectives
• Understand how to manage poor performance
• Know what the options are when all else fails

3. What is performance management?
Performance management is a process by which managers and employees work together to plan, monitor and review an employee's work objectives and overall contribution to the organisation.

4. Informal performance management is the day to day management of employees by their manager.
Formal performance management is a way of measuring how well employees are carrying out their jobs and helping to achieve the organisations goals

5. Why is performance management important?
Effective performance management can play a key role in encouraging employees to engage with and support the organisation they work for.

6. At its most basic, ‘performance’ can be shown as:
Performance = Behaviour + Results
That is performance is a combination of the way an individual behaves (attendance, attention to duties, attitude towards colleagues) and the results they achieve in their work

7. Employee Engagement
One of the key benefit of effective performance management for an organisation is the promotion of employee engagement
When employees are engaged in their work they are more likely to do their best for the organisation and the organisation as a whole will do better

8. Engaged Employees:
Take pride in their job and show a level of loyalty to their manager, team and organisation.
‘Go the extra mile’ especially in areas of customer service, or where an employee needs to be creative, responsive or adaptable.

9. How to get employees engaged:
Provide clear leadership and by letting employees know that we are committed to performance management.
Having managers with the skills to effectively manage and engage.

10. The role of the Senior Management Team
Senior managers have an important role to play in performance management, there are three keys things to do

11. Show commitment - as performance management takes time and resource
Share Business Goals – performance management must start with a clear understanding of what the organisation is trying to achieve.
Communicate clearly & openly – Managers need to communicate constantly with all their staff

12. Role of the Line Manager
The Line Manager is best place to talk to employees listen to their concerns, counsel and coach them, to check they meet their targets and to ensure they are committed to the business.

13. What should managers do:
Measure the achievements of individuals objectives
Encourage employees to improve their performance
Identify problems and issues and deal with them quickly and effectively
Carryout these task fairly and without discrimination

14. Everyone in the business from the Managing Director to the most junior employee should know:
What the business is trying to achieve
Their role in helping the business achieve its goals
The standard of performance required of them

15. Review (Regular feedback / discussion. Support
Performance Management System
Management values
Our vision
Business Goals
Department / Section / Team Plans
Manager
Individual Performance Plan SMART Objectives
Review (Regular feedback / discussion. Support
Appraisal

16. Our Vision
“Achieve a high level of Value and Quality for our Customer whilst maintaining a healthy and thriving business for our staff and wider stakeholders.”

17. Management Values
Where possible manage using facts and data.
Tracked action must follow talk.
Lead with a financial and quality focus.
Trust your team, involve them and allow them space and responsibility to perform.
Show pride and passion in what you do – it will filter through to your team.

18. Objectives
Objectives are specifics outcomes that are to be achieved. Organisation objectives should be broken down into objectives for each department, manager and individual.
Employees must understand their objectives and know what they need to do in order to achieve them

19. An objective should state:
What is to be done
How it is to be done
When it is to be done by
And how its completion will be measured

20. Objectives should be SMART:
Specific - objectives should state a desired outcome. What does the employee need to achieve?
Measurable - how will you and the employee know when an objective has been achieved?
Achievable - is the objective something the employee is capable of achieving but also challenging?
Relevant - do objectives relate to those of the team/department/business
Time-bound - when does the objective need to be achieved?

21. Exercise 1
I have some examples of objectives which are weak, unclear, clear and strong
In pairs match the objective to the above.

22. Exercise 2
In pairs match each of the definitions to the word that best describes its role in setting SMART objectives

23. Company Goals & Objectives 2017
Improve overall customer experience
Get it right first time
On time, accurate deliveries
Reduce lead times
Resolve defects with speed
Improve employee engagement
Provide forums for the employees’ voice to be heard
Offer more training
Provide opportunities to develop personally and professionally
Improve communications
Reduce Operational Costs
Increase efficiencies
Reduce product costs
Reduce cost of quality
Design out problems

24. Exercise 3
Individually using the template provided have a go at setting some SMART objectives for your team & individuals.
Ensure they are relevant by relating them to the Company’s Goals & Objectives

25. Poor Performance
Managing your problem employees

26. You know when you have an underperformer in your team:
They do not get the results you expect from them
They make more mistakes than others in your team
You find yourself spending more time handling them than your other employees
If you turn your back on them for too long ‘the wheels fall off’

27. Be sure that you are measuring their result correctly
(fairly and without discrimination)
Do not go on a ‘gut feeling’
Have a valid set of measures that show clearly their performance
The poor performance must be evident in statistics
Data Protection Act - show an employee anything written about them

28. Review the Performance
Carry out a performance review (the performance needs to be address as it becomes obvious)
Make sure you explain to the employee that the intention is to help them improve their performance
Primary goal is to find out the source of the poor performance

29. Why is performance poor?
The employee has no idea what is expected of them
They are lacking training or knowledge, so are unable to perform the required tasks
There is a non work related problem that is distracting them from their job
They are not suited to the job
They are simply a poor performer in anything they do

30. Establish why by asking questions, example:
What is it you are required to achieve?
Is there any training that you need to make it easier to do your job?
Are there any underlying problems that are consuming your attention at the moment?
Do you like what you are doing?
What changes would have to take place for you to do better?

31. How to handle the reason for poor performance:
The employee has no idea of what is expected of them
Fix their lack of understanding. Go over the job description and the measures in place that show clearly their performance
Set a follow up review in 4 weeks

32. They are lacking training or knowledge
Get them trained! If you or a colleague can do this then great, if not source some external training.
Again, set up a follow up review in 4 weeks

33. There is a non work related problem
Don’t get too involved however offer empathy and if necessary offer adjustments as a temporary measure. Speak to HR and confirm any temporary adjustments in writing
Again, set a review for 4 weeks time

34. The employee is not suited to the job
‘Square peg in a round hole’
They may well be a potential asset to the business but poorly placed, you will never be able to tap into that potential. Discuss with colleagues and consider if there is a better suiting job for them.
If not feasible, you may be faced with terminating their employment

35. Follow up reviews
Before the review ……
Refresh your understanding of the job description, results and statistics for the job
Review the statistics for the period since the last review

36. During the review …..
If they are still underperforming, make sure you identified the correct reason at the last review
If yes and they are still underperforming you may simply have a chronic underperformer on your hands and termination of their employment may be the only answer
If, on the other hand, their results are starting to pick up then set up a further meeting in 4 weeks time

37. The main reasons for poor performance are:
Job description, end results not clear
Lack of training or knowledge
Personal problems getting in the way
Employee is not suited to the job
They are simply a poor performer

38. Disciplinary action
Where informal approaches fail you may decide to take more formal action which could result in dismissal if the employee fails to make the necessary improvements.
Under 2 Years service - ‘Employment Review’
Probation period - standard 3 months but can be extended

39. Step One
Hold informal meeting(s)
Advise the employee that a failure to improve might result in disciplinary action.
Set performance targets.
Issue a Performance Improvement Plan.

40. Performance Improvement Plan is best issued following an initial discussion with the employee about their performance and will include:
The performance problem
The improvement which is required
The timescale for achieving the improvement
A review date
Any support, including any training which will be provided to assist the employee

41. Step Two
Invite the employee to a performance disciplinary hearing in writing and ensure the employee receives at least 24 hours written notice to attend the meeting.

42. Step Three
Convene a disciplinary hearing, the following will apply:
Ensure employee is given the right to be accompanied;
Put the performance failure to the employee and outline the standard which they should reach;
Allow them the opportunity to explain any reasons for their poor performance;
Consider if further training is required;

43. Adjourn to consider your conclusion;
Decide appropriate action;
Inform the employee of your decision in writing and ensure that you offer the employee the right of appeal;
Inform the employee that you will be reviewing their performance again. You need to allow a reasonable period to demonstrate improvement (i.e. 4 weeks) and reiterate the standard expected from the employee.

44. Step Four
Monitor the employee’s performance and document any further performance issues or if sufficient improvement has been made.

45. Step Five
Review the performance after a reasonable period of time. If no improvement, repeat the process and issue next level warning.

46. Objectives
Understand what performance management is and managements role in it.
Able to set SMART Objectives.
Know how to manage poor performance.
Know what the options are when all else fails.

47. So, how well do you now think you understand performance management?
Please take a few minutes to answer the questions designed to ascertain your understanding of the topics covered.