Develop a Performance Management Plan
INSTRUCTIONS
REQUIRED SKILLS AND KNOWLEDGE
This section describes the skills and knowledge required for this unit. Required skills communication skills to articulate expected standards of performance, to provide effective feedback and to coach staff who need development risk management skills to analyse, identify and develop mitigation strategies for identified risks planning and organisation skills to ensure a planned and objective approach to the performance management system.
Required knowledge
relevant legislation from all levels of government that affects business operation, especially in regard to occupational health and safety and environmental issues, equal opportunity, industrial relations and anti-discrimination relevant awards and certified agreements performance measurement systems utilised within the organisation unlawful dismissal rules and due process staff development options and information.
Assessment Part A Performance management project
Performance objective
The objective of this assessment is to enable you to demonstrate your knowledge and understanding of performance management systems within legislative and organisational guidelines.
Specifications You must submit:
? a completed Operational Plan (Appendix 2)
? a developed Performance Management Plan (Appendix 3)
? a completed Performance Development Plan (Appendix 4)
? a completed Coaching Session – Observer’s Evaluation Sheet (Appendix 5)
? a completed Coaching Session – Coach’s Self-Reflection Sheet (Appendix 6)
? one-on-one session notes
? Performance review notes.
Your assessor will be checking whether:
? your completed Operational Plan addresses the:
? revamped store layout
? recruitment and induction plans
? training of all staff on the sustainability features of major product lines ? your developed Performance Management Plan identifies:
? work roles (in accordance with Operational Plan)
? key result areas
? indicators of success
? date to be competed
? your developed Performance Development Plan:
? identifies skills to be developed by the Employee that correlate with the KRAs and indicators of success indentified in the Performance Management Plan
? your completed Coaching Session – Observer’s Evaluation Sheet:
? utilises the GROW model
? identifies the performance issues with the Employee ? utilises a number of communication skills such as:
– active listening
– re-phrasing
– summarising
? asks probing questions
? allows the Employee time to think before replying to questions
? uses body language cues to help put the Employee at ease
? acknowledges the Employee during the coaching session using positive feedback
? provides constructive feedback to the Employee during the session
? provides strategies for developing the Employee that would enable the performance issues to be addressed and for the Employee’s performance to improve
? your completed Coaching Session – Coach’s Self-Reflection Sheet:
? identifies strength and weaknesses
? identifies strategies to improve ? your feedback session:
? is constructive
? identifies areas of:
– excellence
– strengths
– weaknesses
– strategies for improvement – encouragement.
? your one-on-one session notes address, and your role-play incorporates:
? the planned approach for issues mentioned in the Case Study and desired outcomes
? items from the Performance Management Plan for that Employee
? plans on how tasks will be completed
? the achievement of a shared understanding ? the establishment of a review process of performance.
? your performance review notes contain:
? name of Employee
? name of Manager
? date of coaching session
? identification of performance issues
? worker responses
? areas of disagreement
? Opportunities for development.
Adjustment for distance-based learners ? No variation of the task is required.
? A follow-up interview may be required (at the discretion of the assessor).
? Documentation can be submitted electronically or posted in the mail.
Assessment description
You are required to form a group of two and then you must plan, monitor and review a case study relating to performance management of a team.
Each team member will undertake a number of activities to manage the performance of one of the two employees. This will include management activities, such as developing work allocations, identifying KPIs, participating in several role-plays, undertaking performance reviews, and proposing a development plan for remedying poor performance by the Employee under your supervision. Finally, you will need to provide feedback to your assessment partner on performance during a role-play.
Procedure
• Review the Case Study – House friends Home wares (Appendix 1) or one supplied by your assessor
• Complete the Operational Plan (Appendix 2). As the Store Manager you are to report your operational plan to head office to have the following completed by the extended trading deadline.
• Read the profiles in this assessment. In pairs, adopt the role of Managerfor that Employee (Marie or Tony).
• Individually develop goals, KPIs and tasks for the Employee you have selected.
Document these in the Employee’s Performance Management Plan (Appendix 3).
• Prepare role-play notes to plan the topics you will discuss and outcomes you hope to achieve, these will assist you to keep the role-play meeting on track. Submit these with your documentation.
• Conduct two one-on-one coaching role-plays (one with you as the Manager, one as your partner’s Employee). The Assessor will observe this role-play and examine the documentation (the completed Appendices plus notes) that you will submit for assessment on completion.
• Complete file notes from the one-on-one coaching session to be placed in the Employee’s file.
• Following the role-play, the Employee participant is to complete the Coaching Session 1 – Observer’s Evaluation Sheet (Appendix 5).
• Following the role-play as the Manager, complete the Coaching Session 1 – Coach’s Self-Reflection Sheet (Appendix 6)
• Conduct a second meeting with your partner and deliver feedback (participant Employee/Observer deliver feedback verbally to the Manager participant regarding the coaching session) based upon the notes taken in Observer’s Evaluation Sheet. The Assessor will observe this session.
Assessment Part B Disciplinary process – Case study
Performance objective
For this assessment you must demonstrate knowledge and understanding of the process required to terminate a difficult employee.
Specifications
You must provide:
? a written report that outlines and discusses:
? the reasons the organisation lost its unfair dismissal case with Fair Work Australia
? what the organisation should have been doing for it to have successfully defended its position against Sam’s claim of unfair dismissal
? what would have been the correct way to terminate Sam in accordance with legal and organisational requirements.
Your assessor will be looking for:
? a risk analysis of the case and strategies to mitigate future risks should similar situations arise
? description of the conditions under which misconduct and serious misconduct may be deemed to exist in the case study
? a list of any legislation that applies to the situation presented in the case study
? development of policies and procedures that an organisation would need to implement to avoid a similar situation occurring and to ensure that disciplinary hearings and terminations are considered to be fair and reasonable, based on relevant legislation
? an outline of which documents would need to be developed for the organisation to evidence that it has implemented a process to support non-performing employees
? description of how all steps of the performance review process and disciplinary hearing process should have been performed as per legal requirements and the organisational policies you have developed, including:
? what should have been done at each stage
? when and where assistance from HR specialists would have been appropriate
? what support services could have been deployed in Sam’s case
? what documentation would have been appropriate at each stage.
Adjustment for distance-based learners ? No variation of the task is required.
Assessment description
After reading the provided case study that relates to the discipline and termination of an employee, you are required to develop a clear argument to support the decision of Fair Work Australia, conduct a risk analysis and consider relevant policies and procedures, legislation and performance management issues to support your argument.
You are required to produce a written report for your manager as to why your organisation lost the case.
Procedure
1. Read and analyse the Case Study – Sam’s Termination (Appendix 8).
2. Prepare a report that outlines and discusses:
a. the reasons the organisation lost its unfair dismissal case with Fair Work
Australia
b. what the organisation should have been doing for it to have successfully defended its position against Sam’s claim of unfair dismissal.
c. what would have been the correct way to terminate Sam in accordance with legal and organisational requirements.
3. You should incorporate the following into your report.
a. A risk analysis of the case and strategies to mitigate future risks should similar situations arise.
b. Using examples from the case study, describe the conditions under which misconduct and serious misconduct may be deemed to exist.
c. List any legislation that applies to the situation presented in the case study.
d. Develop policies and procedures that an organisation would need to implement to avoid a similar situation occurring and to ensure that disciplinary hearings and terminations are considered to be fair and reasonable. This should be based on relevant legislation.
e. Outline what documents would need to be developed for the organisation to evidence that it has implemented a process to support non-performing employees.
f. Using the case study as an example, describe how all steps of the performance review process and disciplinary hearing process (given to you by Rob) should have been performed as per legal requirements and the organisational policies you have developed, including:
i. what should have been done at each stage
ii. when and where assistance from HR specialists would have been appropriate iii. what support services could have been deployed in Sam’s case iv. what documentation would have been appropriate at each stage.
Assessment Part C Knowledge test
Performance objective
You are required to demonstrate understanding of a wide range of questions to assess your underpinning knowledge of the manage people performance.
Specifications
You must provide:
• written responses to all questions provided.
Your assessor will be looking for:
? evidence that you understand the required legislative requirements
? evidence that you understand manage people performance practices in the business sector.
Adjustment for distance-based learners
This test can be adjusted for distance learners. Options include the following.
Assessment description
For this task you are required to demonstrate an understanding of standards and legislation relevant to manage people performance, and the management of people across an organisation in a range of contexts.
Procedure
You are required to:
1. Review the written questions provided
2. Provide written responses to the questions
3. Submit your responses in the agreed timeframe.
Questions
1. What is performance management?
2. What are 5 ways that organisation could benefit from performance management?
3. How can performance management help manager in getting organisational goals?
4. If you were a manager in your organization, what are3 ways by which you could motivate and coach your staff?
5. What is KPI and what is the link between KPI & Benchmarking?
6. What are some key performance indicators for the following organizations
a) university? b) Tourists agency?
7. What are the most important roles of the manager?
8. What is standard and explain why do we need standards?
9. Give 3 examples of the performance standard statements?
10. What is the difference between strategic planning and operational planning?
11. What are at least three different types of organisational structures?
12. Why is team work important?
13. What is a brainstorming? What is an example?
14. How would you motivate members of your teams?
15. What is performance appraisal?
16. What benefits performance management will have for managers, organization and employees (list at least three)?
17. What is the role of HR department within organization?
18. What factors you need to determine when setting a goal?
19. What is an organisational culture?
20. What is an strategic plan?
Appendix 1: Case study – Housefriends Home wares
Business description
Housefriend’s is a home wares retailer specialising in bathroom fittings, bedroom fittings, mirrors and decorative items. Housefriends caters to the furnishing market for new and renovated dwellings. Currently, a chain of eight stores are situated around the greater area of each state’s capital city.
Current Operational Plan for your store:
Trading hours: Housefriends stores are open 8.30 am-5.30 pm Monday to Friday and 9.00 am-3 pm on Saturdays.
Range: Mainly imported bathroom fittings, bedroom fittings, mirrors and decorative items
Payment types accepted: Cash, credit cards, cheques and gift cards.
Credit policy: (Trade customers) Housefriends accounts are invoiced at the end of each month; terms are 30 days.
Warranties and refunds: Housefriends will exchange with proof of purchase but not refund.
Staff: Three cashiers, three floor sales representatives, one supervisor, one bookkeeper/administration role, and one storeman.
Scenario
As a manager of one of the existing stores, you have been called to head office to attend an area division briefing by the company’s CEO.
During the CEO’s address you make the following notes:
In a growing economy fuelled by population growth, the company has determined to invest and strategically position itself to prosper from this growth. The goal is set to be the major retailer in their sector across the city and the state in three years. This will feature doubling the number of stores around the greater city area with new stores strategically placed in the growth corridors. Additionally the expansion will include a store in each major regional town in the state. Housefriends’ confidence in its ability to fulfil these goals comes from its plan to provide customers with a wider selection of merchandise with great customer service.
Housefriends’ new operational plan will provide the following benefits to their customers:
? Selection. Addition of many locally manufactured high quality lines of merchandise will provide more choice to consumer whilst maintaining the higher quality overseas manufactured lines. Range of bathroom fittings, bedroom fittings, mirrors and decorative items to remain with the recently added range of lighting fixtures will position Housefriends as best in class.
? Accessibility. Customers will gain easy access to the store with extended opening hours 9 am-9 pm, 7 days a week.
? Housefriends will ‘Go Green’. As a part of this public image we will promote the Sustainability features of products and energy efficiency to customers.
A planned layout of current stores will increase shelf space to facilitate the new lighting range. This will be completed before the extended hours commence in eight weeks’ time from briefing on a Sunday when closed.
Staff expansion to facilitate increase in trading hours from 46 hours to 84 hours per week will also need to be addressed in this period.
Housefriends’ expansion will be facilitated with a preference for current staff to be promoted where merited to fill the newly created position. Casuals will backfill vacancies and overflow work positions. All casuals are to undergo induction training sessions. Housefriends will actively support skills improvement for staff.
Housefriend’s Staff Profiles
The key people in your branch are the Tony (Supervisor) and, Marie (Bookkeeper/Administration) who is often a caretaker in Tony’s position as the relief Supervisor. Both have expressed ambitions to pursue a career in company management. To that end this upgrade to the operational plan may present the best opportunity for both of them.
You are aware that one of the keys in the past in times of change has been to maintain the enthusiasm of your key personnel to maintain the drive and cohesiveness of the remainder of your team.
Hence your aim is gain an agreement to help them by providing coaching and mentoring when you see the need for improvement of their attitudes, skills or knowledge levels in exchange for their acceptance of greater responsibility.
Marie
Marie achieved outstanding results in the bookkeeping certificate she recently completed. However, her lack of ‘real-world’ experience managing people makes her uncertain and she lacks confidence to make decisions and avoids possible confrontation. You have agreed to be her coach and mentor. She has come to you recently for help and discussed with you a significant range of issues she wanted help with.
Marie has always had a keen interest in the environment and everything green. It was Marie who suggested power-saver timers on the lighting in the storeroom and other sustainability measures around the office. Marie is very excited about the ‘Going Green’ plan and is very enthusiastic to do the train the trainer course offered by head office and become the in-store trainer in this area. She does, however, express some cynicism regarding Housefriends’ motives in this.
At your first meeting, you need to discuss the following issue.
You have seen members of Marie’s team swap ‘origin of manufacture’ tags with ‘Australian made’ tags while she watched, and she did nothing. Maria is aware from past conversations of the requirement for high ethical standards for the stores’ new image.
The government has introduced a code of conduct for your industry to clearly mark on the product the country of manufacture, particularly on imported products.Housefriends states on its website that it adheres to this code to a high standard. However, on some items, clearly marking the country of manufacture on the item may inhibit the sale because that country may have a reputation of low quality. In these cases, Housefriends marks the product with the general region rather than mention the specific country. This has resulted in some items that actually come from countries with a poor reputation for quality selling very well.
Tony
Tony’s approach to the job is quite different to Marie. He has many years’ experience and is best described as ‘hands on’. Tony is the longest serving employee in your branch and has the best knowledge of the product lines and when he puts his mind to it is an effective coach for new staff, this is despite not having any formal qualifications in this area.
However, recently you have noticed that his attitude to the job is turning negative. Tony is spending a lot of time on the internet, which he often calls ‘the future of sales’, and can’t understand what the Management is thinking of by planning an expansion that is not based on the internet and has voiced this objection without a care about who hears it. You have the impression that he now sees his knowledge as his own intellectual capital and is reluctant to share it. He has become short tempered and has told you that he is not paid to share his knowledge and experience. He becomes annoyed with some staff members who come to him seeking advice as he considers that they should ‘know it by now’. Thus his team are not developing.
At your first meeting you need to discuss the following issue:
Tony often presents you with ideas for internet marketing that would certainly boost traffic to the site. Yet you have come to mistrust his motives with some ideas. You have recently noticed that the company’s website now has links to a home business that a friend of Tony’s operates. This business provides installation of homewares that Housefriends sells yet you are not aware of any company endorsement of this service from Housefriends for their customers. You believe this is unethical under the company’s ethical standards.
Page no.
You need to determine what the source of his negativity is and plan his performance management. In your one-on-one session with Tony you need to come to a resolution of a way forward and get Tony fully ‘on board’.
Page no.
Appendix 2: Operational plan
OPERATIONAL GOALS TEAM GOALS PROGRESS – REVIEW DATES
GOAL FOCUS KPI REASON/ BARRIERS TEAM DELIVERABLE GOAL KPI DUE 1 ST 2 ND 3 RD 4 TH 5 TH 6 TH BSBMGT502B Manage People Performance (Version 1.0) Page no.12
Appendix 3: Performance Management Plan
NAME/POSITION:
MANAGER: REVIEW PERIOD:
REFERENCE FROM OPERATIONAL PLAN KEY RESULT AREA INDICATOR OF SUCCESS/ PERFORMANCE BY WHEN STATUS REPORT
MANAGER’S COMMENTS
SIGNATURE
DATE
STAFF MEMBER’S COMMENTS
SIGNATURE
DATE
Appendix 4: Performance development plan
NAME/POSITION: MANAGER: REVIEW PERIOD:
SKILLS TO BE DEVELOPED: HOW SKILLS ARE TO BE DEVELOPED: PRIORITY (H,M,L) BY WHEN? SKILLS GAINED (Y/N)
Manager’s comments Signature
Date
Staff member’s comments Signature
Date
Appendix 5: Coaching session – Observer’s evaluation sheet
COACH’S NAME PHONE NO.
OBSERVER’S NAME PHONE NO.
ASSESSMENT SITE
COACHING DATE/S TIME/S
EMPLOYEE’S NAME PHONE NO.
STANDARD OF PERFORMANCE SATISFA CTORY
YES NO
Did the coach utilise the GROW model for coaching his or her employee?
Did the coach identify the performance issue?
Did the coach utilise a number of communication skills to reflect and clarify the e
? active listening
? clarifying
? summarising mployee’s answers?
Did the coach ask probing questions?
Did the coach allow the employee time to think before replying to questions?
Did the coach use body language cues to help put the employee at ease?
Did the coach acknowledge the employee during the coaching session using po sitive feedback?
Did the coach provide constructive feedback to the employee during the session?
Did the coach provide strategies for continuous improvement for the employee?
Did the coach identify his or her strengths and weaknesses as a coach/manager ?
Did the coach identify areas for self-improvement?
Appendix 6: Coaching session – Coach’s self-reflection sheet
COACH’S NAME PHONE NO.
LISTENER’S NAME PHONE NO.
ASSESSMENT SITE
COACHING DATE/S TIME/S
EMPLOYEE’S NAME PHONE NO.
Respond to these questions with your feelings and thoughts about coaching. What was your initial reaction to the coaching exercise?
What was your overall assessment of your performance as a coach? Give reasons for this assessment.
What do you think were some of your strengths during the exercise?
What do you think were areas where there was room for improvement?
What kind of strategies can you think of to help improve your coaching skills?
What do you think will be the cost of not implementing new strategies into your role as a manager?
What are some valuable skills that you have learned today to help you in your role as manager/coach?
Appendix 7 Role-plays
As the Manager, you have set up the first one-on-one meeting. In addition to discussing the program you have outlined on the Performance Management Plan (Appendix 3), you will also:
a. Resolve the issue outlined in the Employee profiles and conduct a coaching session to assist the Employee address the issue.
b. Discuss KPI results generated from their team.
c. Discuss Individual reports on progress and take time to chat with your Employee informally to get feedback on problems they are facing. You also use this meeting to emphasise the concept of team achievement.
d. Complete the Performance Development Plan (Appendix 4) on the basis of the outcomes of the one-on-one session and sign-in agreement.
e. Complete performance review notes to place in the Employee’s file.
Appendix 8: Case study – Sam’s termination
You have recently become a Team Manager at a small security company. Sam is a programmer in your team. She has recently missed a couple of deadlines on a project. Sam has been pretty upset about this. She is a diligent worker; however, the organisation has started working on a new programming language and Sam is not familiar with it.
You are aware of your predecessor’s methods for dealing with her. She would come out and yell at Sam and then go back to her office. Sam’s employee file that shows that there have been no verbal or written warnings recorded against her.
As Sam’s new manager you have been managing her more effectively. You have been spending time to try and understand her issues and have reallocated resources in order to give Sam some extra time until she is confident and competent in using the new programming language. You have not specified any timelines for a performance review to discuss progress in meeting the required standard of performance or taken notes. You have offered extra training to her.
However, in a meeting about her inability to meet her latest deadline, Sam physically struck you and walked out of the office. She has not returned.
Sam contacted her doctor after the meeting and was given a medical certificate claiming stress as the reason for her absence and given seven days’ leave. This was sent to, and received by, the organisation on the day following your meeting with Sam. Sam called and verified with the Human Resources department that the certificate had been filed within the organisation’s systems.
Three days after your meeting with Sam you advised your supervisor that she had struck you and has since reported in ill; this advice being received from the Human Resources department. A meeting between you, your supervisor and the Human Resources department is convened and a decision is made to dismiss Sam on the basis of serious misconduct. A letter was sent by registered mail to Sam’s personal mail address.
Two days later Sam filed an unfair dismissal claim with Fair Work Australia (FWA). The organisation received a letter from FWA to attend a hearing.
Sam wins the hearing as no evidence was provided by the company to support its case of dismissal on the grounds of misconduct or serious misconduct.
The hearing went in Sam’s favour for the following reasons:
? The employer failed to follow a formal disciplinary process.
? There was no impartial investigation carried out.
? There were no records of any notes provided by the employer to back the claims that there had been meetings and reviews. The only written evidence produced was the termination letter.
? The original version of the medical certificate was not produced in the hearing by the company.
? Sam produced a verified copy of her medical certificate in the hearing along with email evidence from the Human Resources department confirming that the medical certificate had been received by the organisation and entered into its files.
? No documented evidence of any meetings or coaching sessions had been kept by the employer.
? No performance management review or development plans were presented by the employer.
? There were no copies of signed agreements reviewing Sam’s progress (performance reviews and development plans) submitted by the employer.
? No written documents outlining that timelines were given for monitoring or reviewing Sam’s progress were submitted by the employer.
? No formal disciplinary hearings had taken place prior to Sam’s dismissal.
? Sam was not formally stood down while an investigation was carried out.
? There was no physical evidence to support the serious misconduct claim that the manager has been struck as no witnesses were called to verify whether an assault had taken place.
? No senior managers or human resource department specialists were present in any meeting where Sam was being warned of poor performance.
? There was no evidence to support the claim of misconduct by Sam. The manager had not documented any written warnings in Sam’s file. The only agreements that had been reached between Sam and the manager were verbal.
Sam was awarded costs of approximately $5,000 for lost salary and wages and a further $5,000 for emotional distress.
After the decision was handed down, Rob, the Senior Human Resources Manager, approaches you to discuss the reasons behind the decision going in favour of Sam. Rob wants a written report on his desk by the end of the week giving the background and reasons why the decision went in Sam’s favour against the organisation.
As part of your brief from Rob, he would like to see a completed risk assessment identifying areas that the organisation needs to address and implement in order to prevent this type of situation occurring again. The report will guide the organisation in its decision-making over whether to pursue an appeal on Fair Work
Australia’s ruling.
Based on the findings of your report, Rob decides not to proceed with an appeal but to develop and implement a new Performance Management System.
Rob recommends that the organisation follow the two processes outlined below to handle:
1. Performance reviews for all staff:
2. Disciplinary hearings:
