BSB40420 - Certificate IV in Human Resource Management and Business Driven

Assignment Task

Case Study

Extract Engineering’s performance management system

Extract Engineering has had the same performance management process in place for six years now and it is due for a major review.

You have now been asked to review the current performance system to ensure it effectively meets the needs of the organisation.

The HR Executive Manager has provided you with the following brief.

Current performance management process:

• Position descriptions for most of the job roles are out of date – the business has grown significantly over the past five years and tasks; roles and responsibilities have evolved as the business has grown. The performance indicators used are also often inconsistent with the job task information in the position descriptions.
• Performance appraisal meetings are not being held when and how they should be according to the current organisational requirements. Both the managers and employees have complained that the performance appraisal process is cumbersome, embedded in the past, and not forward looking. It is time-consuming and there’s not enough time to complete the process. It is seen as just another people management task in an already crowded schedule. HR currently spends a lot of time chasing up managers to get them to complete the performance appraisals for their direct reports.
• Managers have real concerns about the inability of the current performance management system to effectively deal with under-performing employees, and at the other end of the spectrum, the system does not provide the opportunity for managers to properly acknowledge great work performance.
• Other than a brief written guide on ‘how to appraise performance,’ there has been no training provided to managers about how to conduct performance appraisals and manage performance on an ongoing basis. No formal performance management training has been provided to employees – they are given a copy of the performance appraisal form approximately three weeks before their performance appraisal meeting with their direct manager and asked to complete it (including self-rating their performance against each of the performance indicators) and bring it along to the meeting for discussion with their manager.
• Managers are asked to rate employees for each performance area/category using a scale from 1 (unacceptable) to 5 (exceptional). They are also advised by HR to keep a file on each employee and make note of examples of good or poor performance during the year, which can then be used to support their ratings when completing the appraisal form. An overall rating of 1 or 5 can only be given if documentation exists to support the rating.
• Most of the managers are not diligent about recording specific performance examples in employee files and believe that it is too time-consuming to write up all the necessary information. Managers generally provide their direct reports with informal feedback on the job. Not much attention is given to the under-performing employees other than to monitor their activities more closely and to make sure that they are completing their work tasks to the best of their ability.
• Employees generally do not have a high opinion of the performance appraisal process as they do not see any real outcomes or benefits associated with the process. Learning and development needs are addressed independently and on an ad hoc basis when a defined training need arises, and there is no direct link between performance and pay.
• Some employees have complained about their performance appraisal rating and feedback – they often complain that their annual performance appraisal meeting is the first time they have heard about any performance issues (substandard performance) and that if their manager had brought the matter to their attention earlier/when it occurred this would have provided them with opportunity to address the issue.
• When an employee complains about their performance rating/feedback, managers often feel that they do not have the evidence they need to support their ratings. So, if a direct report complains about their performance appraisal process and outcomes, managers generally just advise the employee that they will note their complaint/lack of agreement on the performance appraisal form.

You are required to review the performance management system to analyse its strengths and weaknesses and make recommendations for improvement. The HR Executive Manager has indicated they want the new performance management process to:

• Encourage regular performance check-ins between managers and their direct reports, and that it is focused as much on performance development as it is on performance review
• Have the ability to review employee skill or performance gaps and consider options for performance development
• Include a rewards and incentive scheme to reward good performance
• Include a process to manage under-performing employees
• Align with and support existing people management policies and procedures
• Include suitable training to ensure understanding and effective use of the performance management process
• Be promoted to managers and staff to ensure understanding and effective use of the organisation’s performance management process
• Include feedback mechanisms for evaluation of the revised/new performance management process to ensure its effectiveness.

Establish human resources

a. Explain the purpose of performance management systems  (hint – it is not just about appraisals).  How can performance management processes be embedded in other aspects of HR processes?  (eg reward and recognition)

b. Explain two (2) benefits of a robust performance management system.

c. Identify three (3) skills HR professionals and managers need to have to enable an effective performance management system.

Review process in case study

a. Based on the information in the case study, and your own analysis, what recommendations would you make to improve the performance management system to ensure it meets the needs expressed by the HR Executive Manager?

b. What type of rewards and recognition scheme would you recommend putting in place to reward good performance? How will you make sure this aligns with the performance management system and organisational objectives? 

c. How could the early identification of under-performance be achieved? What approaches could you use to ensure these are not overlooked? 

d. Outline a process to address a complaint about the performance management system and the outcome by an employee. Include who should be involved and how it will be managed.

Advising on Performance Management Processes

One of the key roles in HR is to support managers and leaders in using the performance management system. Consider how you would undertake the following (either in your organisation or at Extract Engineering)

a. Outline some steps managers need to consider when preparing for performance appraisal meetings.

b. Ensure managers use the performance management processes to align performance with the organisation / team objectives.

c. Ensure managers use employee position descriptions as a tool in the performance management process.

Recommend Improvements and use data.

a. What sort of data could you use to identify any trends or problem areas requiring attention?

b. What processes will you put in place to encourage feedback from managers and employees?

c. Provide a list of the aspects you will cover in training managers and employees in the new performance management system you will roll out.

d. List four (4) policies which might be linked to the performance management process.

Legislation

a. List three (3) Acts or Regulations you may need to consider when using and managing performance management processes.

Having Difficult Conversations

Your approaches to difficult conversations

a. What are some typical difficult conversations in the workplace? (List 3) Include at least one relating to managing employee performance.

b. Outline a difficult conversation you have been involved in. How did you manage it and how did you prepare? What was the outcome and what would you do differently next time?

Planning and preparing for conversation

Scenario:

Confronting negative performance is an aspect most managers hesitate to address. In this scenario, Bob’s (employee) performance has been consistently declining over the last 2 months. Harry, his manager, has asked you to be involved in a discussion with Bob about his performance.

Complete the following conversation plan for the scenario:

• What are some pre-meeting logistics you will consider?
• What are the issues you need to discuss?
• What impact is the problem having on the team or business?
• What information do you need to gather before the discussion?
• What are some potential solutions?
• What might be the employee’s response to the issue / concern?
• How will you address the issues or concerns raised by the employee?
• Are there are facts or other considerations you need to check or confirm?
• What stakeholders might be involved (directly or indirectly)? How will you ensure the stakeholders are kept informed of the outcomes?
• What sort of delivery style will you consider using?
• How will you ensure that both the employee and manager provide their input into the meeting?
• Are there any other considerations to include in this plan?
• 7b. List three (3) types of legislation you need to consider when having a difficult conversation in the workplace. Be sure to name this in full, accurately.

Follow up and review difficult conversation.

Using your own previous experience in difficult conversations, outline:

• How do you evaluate your own effectiveness in the conversation?
• Seek and respond to feedback from relevant stakeholders on your effectiveness 
• Identify three (3) areas you could improve to conduct future difficult conversations and assist in developing some actions to achieve these.

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