Managing underperformance at your business is a critical and strategic responsibility. It can lead to significant business outcomes if it is properly addressed. There are five steps to handling underperformance in a business: identification, assessment, management, corrective, and advancement. There's also a check list to assist best practice managers best practices in performance monitoring. This report illustrates the best practices in managing underperformance by focusing on three areas: reporting, leadership, and performance management. For more information about your individual minimum legal duties, contact the organizations listed at the end of the report.
Identifying the problem is the first step toward managing underperformance. This step starts with establishing an understanding of your organization's expectations, which will make it possible for you to ascertain the potential for performance problems, as well as the reasons why the company may expect performance problems to occur. You can do this through an extensive survey that focuses on aspects such as job fit, leadership abilities, technical abilities, communication skills, sales skills, and work ethics. These aspects are important since they're considered to be part of an employee's job match - both a relevant and tangible aspect of the job (the job fit inside the operational structure of your organization, and the skills and behaviors that produce a worker effective in their position) and relevant to direction (what makes a person, successful as a leader).
When you have identified the problems which could be causing the underperformance, it is time to concentrate on managing underperformance according to your company's special needs. One of the most common performance issues in companies today is poor performance across the board, including absenteeism, tardiness, on-time performance, on-the-job functionality, search-engine or off-page test results, on-the-job training, and on-the-job use of time. In addition to these common performance issues, employers need to address issues on varied aspects such as:
Among the most important strategies to manage underperformance is to have proper performance improvement plans. In order to make certain that you have a strategy, create a formal process for the identification and assessment of your problem areas. This includes developing a warning letter, a task list, and developing action plans.
Implementing a warning letter is an exceptional way of managing underperformance issues. This letter should be sent to the employee in question, often detailing why the employee is performing below expectations. A good warning letter should also set out what the supervisor plans to do to fix the issue, as well as what steps will be taken to make sure that poor performance doesn't occur again. If the letter does not address these issues, then the manager should consider creating separate targets and programs for improving specific areas, as opposed to relying on overall targets for improvement. Creating separate targets ensures that the manager has detailed information about each goal that they are hoping to achieve over a defined period of time.
The next step is to create a task and tester list. It is often very hard for managers to simply remove poor performing employees and replace them with better performing individuals. Therefore, by creating a separate list for each job, the supervisor can identify exactly which workers need better oversight and what actions are essential to achieve improvements. Some companies use performance management systems to track and monitor their employees, however this might not be the best practice for handling underperformance issues.
A job and tester list are used in combination with a warning and show cause letter. This sends a clear message to the employee that they are being tracked and that poor performance is not acceptable. It also shows cause for the manager to take action. Ultimately, it allows the employee to see exactly where their problems lie and gives them a chance to rectify their behaviour before there's a large negative impact on the business. Most managers will implement performance improvement plans by themselves, but using a task and show cause letter and performance analysis system to provide extra value to the direction. These plans can then be followed up by a supervisor who has full authority to make adjustments if required.
Managers need to understand their legal responsibilities. It is important that managers know that they are legally required to make an impartial decision about any unjust dismissal. They're also required to provide a justification for any decision that's made. If a company uses a system of strict liability or fair and reasonable employer liability, it's more likely that the company will benefit from it as it increases protection for the employee by ensuring that employers aren't guilty of unjustified dismissals.