What is the need for an appropriate PMS and the goals of a PMS?
Star Industries require an appropriate performance management system for measuring and improving employee capabilities that cannot be understated. It shall be beneficial for the following purposes:
Goal setting- PMS shall help the employees in clearly understanding the expectations of the organization. It shall help in aligning workforce, setting priorities and attaining objectives .
Management and coaching- PMS shall help in minimizing performance gaps with continuous feedback and coaching.
Development Planning- PMS shall help in improving the employees and developing them with regular feedback .
Rewards and Recognition- Recognition shall help in satisfying the fundamental needs of the employees. It shall also improve retention and engagement .
The following goals can be set for the organization:
• To enable the employees to achieve superior work standards.
• To boost the employees’ performance by encouraging, motivating and rewarding for the performance.
• To promote personal growth in employees career.
• To identify barriers to affective performance and resolve them through monitoring and coaching .
In Australia, Fair Work Commission plays a legislative role in managing performance. It states that the performance management systems must be fair, accurate and supported by evidence. According to Fair Work Act 2009, workplace relations must be fair and productive that would help in managing employee performance. Every employee at Star Industries must be given opportunities to improve and manage their performance. The necessary measures must be taken to manage underperformance by the employees. The possible causes and issue of performance must be accounted for and actions shall be taken accordingly .
C) The processes and documentation of a PMS and how these will support the goals of the organization
The performance management follows the below process:
Planning- Planning means working in advance so that the expectations and goals can be set. The supervisor must first create performance plans for the employees by aligning with the operational and strategic goals .
Monitoring- Monitoring shall help in assessing the progress of performance. The employee progress shall be monitored on a continuous basis. The process shall make corrective actions for the employees and produce desired outcome.
Developing- The employees ability must be developed to perform through work assignments. The supervisor shall also develop employees through formal and informal training, coaching and additional responsibilities.
Rating- It shall provide as a summary of performance. The supervisor shall assign a rating of record based on the employees’ performance. The supervisor shall make adequate discussion about the ratings .
Rewarding- Good performance must be rewarded. The supervisor must reward employees that would clearly distinguish as successful and standard performance.
The documents required for performance management are Performance Assessment Form, 360-Degree feedback form, Action Plan, and Training and Development Assessment Form .
D) How the PMS will support the development of a learning organization
A learning organization is a system that facilitates continuous learning with an objective of transforming itself. The performance management system shall support the development of a learning statement as it shall prescribe methods to develop critical talent. The performance management must be tied to the learning process and integrate into the development plan. The leadership development programmes shall also help in developing organizational talent at Star Industries. The learning opportunities shall be made more visible and engaging employees. The training in the learning organization shall be aligned to organizational goals. With integrated performance management, talent development professionals can see precisely which development is needed most. When learning and performance functions converge to create a true talent development framework, both functions benefit by becoming more relevant to supporting the organization’s critical strategy .
The performance management system implementation aims at continuous development of employees and recognizing their contributions. The implementation shall pass through a series of stages and process. Before implementation, the stakeholders must be consulted. Firstly, the representative from the Board of Directors must be consulted and they can provide necessary inputs through face-to-face meeting. Further, the CEO must be consulted for any further changes required through an email. A formal approval has to be generated from the top management in the form of written evidence. After this, the plan is ready to be implemented.
After the plan has been implemented, every stakeholder group needs to be informed. The revised PMS must be sent to the manager through an email which would be verified by him. After verification, email shall be sent to all the employees with a copy to the directors regarding PMS. Annual or half-yearly review of performance shall be made at the departmental level at Star Industries.
F) Role of coaches and mentors and skills required
Every mentor and coach requires a few skills that are necessary to manage employees. A coach is a person who develops specific skills, challenges and performance expectations at work. The skill set possessed by them are active listening, understanding and empathy, reflecting with accuracy, smart questioning and providing feedback for development. Coaching help the employees gain valuable skills and knowledge. They help the employees overcome the hurdles and help them succeed. Coaching helps in identifying the competencies of teams in the organization. However, a mentor is personally involved and has a deep personal interest in long –term development of employees. They possess certain skills such as emotional intelligence, provide guidance, value the opinions and initiative and motivate by setting good examples .
(i) Managers
Great managers are not born, they are made. The managers require good time management, communication, problem-solving, delegation, forwards planning and strategic skills. The managers must be taught how to set a two-way dialogue with the employees about performance, expectations and priorities. The managers can ensure success and maximize their contribution in the organization. The managers at Star Industries need to communicate effectively as they take the leadership role. The managers must also observe the employees and document their behaviors and attitude relating to performance. The manager must also be trained to create an energetic department and team by positively influencing outcomes. The managers must be trained to polish skills for organizing, making effective decisions and becoming more strategic .
(ii) Staff on the use of the PMS
The employees or staffs must be trained for performance management system as it indicates that performance needs to be improved. It also serves a benchmark for status of improvement in the process of making efforts. It shall also form the part of succession planning for helping the employees be eligible for a planned change at Star Industries. The employees must possess skills for self-management, teamwork, initiative, learning, communication and problem-solving skills. The employees must be trained for communicating as it would increase diversity and efficiency. Quality concepts and guidelines can also be provided to the employees. The human relations can be improved that would help in reducing stress and conflict. The training shall help the employees in effective risk management, increasing their capacity to employ new methods, reduce turnover and enhance motivation .
H) Monitoring mechanisms
A performance management system must be monitored for being effective. The employees’ progress and performance must be continuously monitored. Monitoring the performance does not involve measuring day to day about how the employees carry out assigned activities and tasks. The employees at Star Industries must assess progress towards meeting performance objectives. The managers must also identify the barriers that act as hindrance for the employees in accomplishing performance objectives. Multiple solutions must be framed on how to overcome them. Feedback must be shared on relative to the goals. Continuous coaching shall be provided for addressing concerns and issues relating to performance. The strategic power of coaching shall help in recognizing the strengths and weaknesses of the employees. Monitoring also involves providing feedback in which the employees shall be told about their performance. The feedback shall be provided on a timely, specific and frequent basis .
I) Evaluation mechanisms
The results at Star Industries must be evaluated by reviewing the performance. Self-assessment also plays a critical part in managing performance. A few tools such as Performance Appraisal, benchmarking, KPI’s and balanced Scorecard can be used to assess PMS. The performance plan and assessment form can be assessed in the appraisal meeting. The evaluation can be made by identifying performance measures, setting guidelines, creating disciplinary actions and setting an evaluation schedule. The evaluation form shall focus on the job performance areas. The job performance areas must be included such as knowledge and skills, quantity and quality of work, work habits and attitude. Although it may be time-consuming to identify performance measures, but it is also strong to evaluate performance. Feedback is the real essence of evaluation, so it is necessary for the managers to give a balanced feedback, outline expectations for improvement and create disciplinary or termination procedures .
1. General Policy on Performance Management and Development
A) Policy statement
Star Industries strives to prove an environment where all the employees understand the consequences of their contribution towards achievement of organizational goals. The organization further provides adequate opportunities for accomplishing goals through a strong performance based management that culminates in an annual performance review .
B) General procedures including time frames and use of action plans
Star Industries performance management and development process consists of a four phase cycle: Plan, Manage, Review and Reward . The following procedures can be followed:
• Half-yearly interim performance reviews can be conducted for discussing job performance and goals.
• Performance reviews can be annually scheduled coinciding with the employer’s promotion date.
• Employee Development Plans shall be compiled at the end of the performance review and progress monitored regularly .
2. Performance Counselling
A) Policy statement
When the employees exhibit poor performance, counseling sessions shall take place to discuss the problem areas and methodologies to overcome it. The counseling session shall take place when the employee fails to improve performance despite receiving advice or informal notification for the same. Performance counseling shall occur before termination of employment is considered. However, employee dismissal may be considered in case the employees’ performance shall be understood unreasonable during counseling .
B) Procedures for counselling and discipline including escalation of issues
Star Industries needs employees who are passionate about the vision, values and purpose. The following three procedures shall be undertaken for counseling:
1. Standard Counselling
2. First and Final Warning
3. Dismissal
1. Standard Counselling Procedures
Step 1: Verbal Warning- This is an informal part where an employee shall receive a verbal warning for the first transgression .
Step 2: First Counselling Interview- This is the beginning of a formal part where the employee shall be advised of what the problem is and he shall be invited to respond or explain his actions.
Step 3: Final Warning Interview- When the required improvement is not happening; the warning letter shall be drafted indicating any further bad performance could lead to dismissal.
Step 4: Consideration of Dismissal- If the performance is continually unsatisfactory, the employee shall be asked for explanation that would serve as grounds for making decision to the continuation of employment .
2. First and Final Warning
When the employee performs unsatisfactorily and the standard counselling procedure is not followed, a counselling interview shall be received. If the employee’s explanation is not acceptable, a first and final warning shall be issued.
3. Dismissal
If the unsatisfactory performance of the employee continues during the notice period, the employee shall be terminated and compensation shall be made in lieu of notice .
C) Procedures for dealing with grievances including mediation
Mediation- At any stage, the employees involved in the grievance may request the matter be referred for mediation. It shall take place only if all parties involved agree and is voluntary. It shall be used after informal discussion does not solve the issue .
The following procedure shall be followed for dealing with grievances:
Step 1: Informal Action- The manager shall try to make a settlement in the course of regular work. However, a formal grievance letter may be submitted if the matter is not resolved.
Step 2: Conduct Meeting- A meeting shall be held in a private and confidential room where the grievances of the employees shall be heard. The witnesses shall be called, if any.
Step 3: Investigate- The meeting may be adjourned depending upon its complexity so that investigation can be made before decision making.
Step 4: Analysis and Decision Making- After analyzing records, the employer shall decide whether to uphold or dismiss the grievance and provide the statement in writing without unreasonable delay.
Step 5: Appeal- If the grievance is partially or completely rejected, the employee has the right to appeal against the decision within ten working days. The appeal shall then be considered by a more senior manager after which the decision shall be final .
References
Ates A and others, ‘The Development Of SME Managerial Practice For Effective Performance Management’ (2013) 20 Jrnl of Small Bus Ente Dev
Bond T, Standards And Ethics For Counselling In Action (Sage Publications 2015)
Cardon P, Business Communication (McGraw-Hill Irwin 2014)
Connor M and Pokora J, Coaching And Mentoring At Work (Open University Press 2012)
Fairwork.gov.au, ‘Welcome To The Fair Work Ombudsman Website’ (Fair Work Ombudsman, 2016) <https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/best-practice-guides/managing-underperformance> accessed 20 July 2016
Geetika and others, ‘Measuring Workers’ Satisfaction With Grievance-Handling Procedure: Study Of A Power Distribution Major In India’ (2014) 11 Asian Journal of Management Cases
Ghosh P and others, ‘Who Stays With You? Factors Predicting Employees’ Intention To Stay’ (2013) 21 Int J of Org Analysis
Grote R, The Performance Appraisal (American Management Association 2012)
Mone E and London M, Employee Engagement Through Effective Performance Management(Routledge/Taylor & Francis Group 2012)
Moore C, The Mediation Process (Jossey-Bass 2014)
Noe R, Human Resource Management (McGraw-Hill/Irwin 2013)
Phillips J, Return On Investment In Training And Performance Improvement Programs (Gulf Pub Co 2012)
Ram J, Corkindale D and Wu M, ‘Implementation Critical Success Factors (Csfs) For ERP: Do They Contribute To Implementation Success And Post-Implementation Performance?’ (2013) 144 International Journal of Production Economics
RolstadaÌŠs A, Performance Management (Chapman & Hall 2012)
Rummler G and Brache A, Improving Performance: How To Manage The White Space On The Organization Chart (Jossey-Bass Publishers 2012)
Shields J, Managing Employee Performance And Reward (Cambridge University Press 2014)
Simons R, Levers Of Organization Design : How Managers Use Accountability Systems For Greater Performance And Commitment (Harvard Business School 2013)
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