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BUSINESS: The Ultimate Resource

October 2003 Upgrade 13

ACTIONLIST
Managing Poor Performance
Getting Started
Poor performance can result from many causes, for example:

inability to manage perception or pressure failure to prioritize lack of skill, knowledge, or motivation conflict of personalities or styles overpromotion (the Peter Principle), where the person is actually out of his or her depth lack of resources, support, or cooperation from others change in performance management systems or processes

Given the cost of recruiting and training new personnel, helping underachievers move from poor to acceptable performance is almost always worthwhile. This actionlist explores some effective ways to manage poor performance.

FAQs
We have recently restructured our business, and my assistant seems unable to deal with it. What do I do? People often take time to adjust to new situations, and some cope with change better than others. Talk to your assistant and explore exactly what differences the restructuring has made to his or her job. Its possible that poor communications have left your assistant feeling confused about new responsibilities, unable to prioritize, and lacking support. These are all areas where you should be able to help. Several members of the sales team I manage consistently fail to meet their targets, which is very demotivating for the rest of the group. Whats the best approach?

Bloomsbury Publishing Plc 2003

BUSINESS: The Ultimate Resource


October 2003 Upgrade 13

Some theories about managing salespeople suggest constantly churning the least productive individuals. Managing poor performance is extremely time-consuming, and your time may be better spent supporting your stronger performers. You do need, however, to understand why the bottom group is failing to meet targets, set clear goals, and manage by objectives. If this fails, be prepared to deal with the consequences. I feel unhappy and unappreciated at work, which is affecting my performance. Whats your advice? The fact that your performance is suffering makes it important to discuss your feelings with your manager. We can often outgrow roles or discover that we need a new challenge to feel rewarded. Enlist your manager to help you understand whats happened. Have your work circumstances changed? If so, your expectations of yourself are likely to have changed, too. Have job pressures intensified, or have you developed different personal goals? What type of recognition or appreciation would be meaningful to you? Remember that its more cost-effective for organizations to remotivate and align an existing employee than recruit and train a new one, so your boss will have every incentive to help you.

Making It Happen
Understand the Importance of Performance Management Systems Frequently, by the time poor performance has been identified, the damage has already been done. Prevention is better than cure, so establishing performance management systemsstructured methods of identifying and improving poor performanceis the most effective management approach. Simply put, such a system makes sure that each individual has clear objectives, understands how these affect others, knows what is needed to meet the objectives, and is confident of having the necessary skills and experience to deliver. Putting these systems in place before problems arise saves considerable management time and worry. Define Poor Performance Poor performance is defined by a range of factors, some organization-specific, some rolespecific. Managers need to decipher which are conduct issues and which are capability/competence issues, since each requires a tailored course of action. Conduct Lateness, absenteeism Attitude Bad language Gender/racial discrimination Negligence or abuse of company property Abusive behavior to coworkers, managers, Capability/Competence Failure to carry out tasks reasonably Failure to perform duties to an adequate standard Failure to provide high standards of customer care Unsatisfactory reviews Infringement of regulations Failure to observe company policies and

Bloomsbury Publishing Plc 2003

BUSINESS: The Ultimate Resource


October 2003 Upgrade 13

or customers Steps for the Organization

procedures

The organization must act with consistency and fairness and, where possible, be able to demonstrate that it has provided the employee with guidelines and coaching to achieve the desired actions and behaviors. If the problem cannot be resolved, it may be necessary to initiate a disciplinary procedure. Here are some guidelines.

Conduct a full investigation. Hold a formal hearing. Make sure the employee is given written notice of it in advance. The employee is entitled to representation. Review all the evidence. Formally outline the disciplinary action to be taken. Consider differentiating between conduct and capability in formulating any disciplinary action. In many organizations, an employee with capability issues is given two chances to improve before being terminated, while terms are stricter if the problem involves conduct. Either way, be sure to allow time for improvement as part of the disciplinary process.

Steps for the Manager Its always preferable to prevent poor performance instead of treating it. Where prevention fails, the manager needs to:

be fair and unbiased at all times behave consistently get personally involved in the case understand whether it is a conduct or capability issue work within organizational guidelines and procedures in the event of disciplinary action recognize the importance of training and guidance

Steps for the Poor Performer If you feel that you dont have the skills, experience, or knowledge to achieve the objectives set for you, ask for help before it becomes a performance management issue. Try to understand why you havent met your objectives. What support would help you improve your performance? If your goals are unclear, seek help in redefining them so you can agree on expectations and better focus your efforts. If your poor performance is attitudinal, try to understand how others react to your behaviors. Remember that what works well in one culture doesnt always translate to

Bloomsbury Publishing Plc 2003

BUSINESS: The Ultimate Resource


October 2003 Upgrade 13

others. How you say something is as important as what you say. Try to identify friction points before they become serious performance issues. Preventative Measures for the Business

Maintain clear channels of communication. Its up to the leaders of the organization to articulate overall goals; the managers job is to unpack these for employees. Individuals need to understand how their own targets support organizational goals, and how their own performance contributes to the organizations success. Dont overpromote people. The fact that someone does a great job at one level doesnt necessarily mean that person is capable of succeeding at the next level. Encourage managers to spend time with individuals to identify risk areas before they become performance issues. Dont overengineer goals. Leave employees room to exceed their objectives. Set goals that are aligned with the organizational culture.

Common Mistakes
You Overreact to Poor Performance and Ignore Contributing Factors No matter how frustrated you feel by poor performance, you need to be completely unbiased, fair, and consistent in dealing with it. Always seek out the underlying factors. Are they part of a pattern, or is this a unique case with a straightforward solution? A rational approach is best: overreacting wont help you, the employee, or the organization. Objectives Arent Achievable or Arent Explicit Goals should always be achievable and clearly defined. Make sure your expectations are consistent with (and will be supported by) the culture of the organization. Tailor goals to individual employees capacities. Establish short-term milestones that enable you to monitor progress regularly and intervene before slippage becomes critical. Most important, communicate, communicate, communicate. You Dont Address Poor Performance Issues Early Enough Performance needs to be measurable. The easier it is to measure, the easier it is to manage. Check individuals performance against their targets. Schedule regular reviews and encourage employees to monitor their own performance. Ask them for feedback on their progress. Managers often set objectives and leave people to itbut if they fail to meet their goals, there may be serious consequences for the organization. Good performance managers constantly assess risk and identify and address potential failures early. Poor Performers Arent Given Appropriate Support or Sufficient Time to Improve

Bloomsbury Publishing Plc 2003

BUSINESS: The Ultimate Resource


October 2003 Upgrade 13

The first step is to satisfy yourself that the individual is capable of fulfilling his or her role, and then to identify the kinds of support that will enable the person to succeed. Dont simply prescribe coaching for a poor performer and hope for the best. Coaching is most effective as a tool to develop potential high performers, and other kinds of support may be more appropriate. Sometimes, particularly with employees struggling in a new position, establishing increasingly demanding performance measures is helpful. In any case, build in enough time for the employee to demonstrate improvement. You Fail to Distinguish Between Poor Performance and Personality Clashes Personality clashes are difficult to deal with and, if coupled with poor performance, often become highly charged. Where issues are personality-driven, bring in an impartial third party to mediate. Be flexible and open to different approaches to deal with different aspects of the problem, and recognize that resolving one issue is likely to affect others. In some cases poor performance may be a perceived rather than a real problem. Managers and subordinates or coworkers may operate according to very different systems of internal values or use very different approaches and methods that produce equally effective results.

For More Information


Books: Becker, Brian E., Mark A. Huselid, and Dave Ulrich. The HR Scorecard: Linking People, Strategy, and Performance. Boston, MA: Harvard Business School Press, 2001. Fournies, Ferdinand F. Coaching for Improved Work Performance. Rev. ed. New York: McGraw-Hill, 1999. Pande, Peter S., Robert P. Neuman, and Roland R. Cavanagh. The Six Sigma Way: How GE, Motorola, and Other Top Companies Are Honing Their Performance. New York: McGraw-Hill, 2000.

Bloomsbury Publishing Plc 2003

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