Managing the performance of staff is essential to the smooth running of an organisation. This unit evaluates the reasons for managing performance and the approaches that can be used. It explores methods of rewarding the performance of individuals who exceed expectations, and analyses ways of managing under performance in a professional and supportive manner. This unit focuses on the way performance management, when used effectively, is able to impact on individual and organisational achievement.
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Learning Outcome 1
Understand the rationale for managing performance within organisations
Assessment Criteria:
1.1 Justify the rationale for managing performance within organisations
Indicative Content:
The rationale for managing performance may include improving and sustaining organisational performance, enhancing productivity, driving quality, promoting high-performance working, fostering organisational agility, ensuring employee well-being and work-life balance, identifying talent and potential, understanding individual needs and capabilities, preventing poor performance escalation, and resolving problems.
Learning Outcome 2
Understand frameworks, diagnostic and evaluation tools used for performance management
Assessment Criteria:
2.1 Examine the impact of legal and organisational frameworks on performance management
2.2 Evaluate the diagnostic and evaluation tools which support performance management
Indicative Content:
2.1 Legal frameworks may include the Equality Act 2010, Health and Safety Act 1974, Working Time Directive 1998, National Minimum Wage Act 1998, National Living Wage Regulations 2016, Immigration Act 2016, Trades Union Act 2016, and Working Together to Safeguard Children 2013.
Organisational frameworks may involve HR systems and processes such as performance management, disciplinary and grievance procedures, conduct and capability, recruitment, learning and development, reward, induction, talent management, and time management. Policies and standards like health and safety, well-being, equality and diversity, data protection, customer service charters, and quality standards also play a role.
2.2 Diagnostic and evaluation tools may include Personal Development Reviews (PDR), Performance Improvement Plans (PIP), 360° appraisals, peer and self-reviews, psychometric profiling, ongoing reviews, skills audits, performance data, and Key Performance Indicators (KPIs).
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Learning Outcome 3
Know how to manage performance
Assessment Criteria:
3.1 Discuss good practice principles for managing performance
3.2 Examine the use of formal processes for managing performance
3.3 Analyse the relationship between signs and causes of underperformance
3.4 Evaluate approaches to respond to challenges when managing underperformance
3.5 Recommend techniques for developing and managing individuals who exceed expectations
Indicative Content:
3.1 Good practice principles may include ethical approaches, evidence-based judgments, use of theoretical models (e.g., Appreciative Inquiry by Cooperrider and Srivastva), fairness, impartiality, confidentiality, employee engagement, application of legal and organisational frameworks, maintaining records, and seeking guidance.
3.2 Formal processes for managing performance may include Performance Improvement Plans (PIP), disciplinary processes, capability procedures, suspension, redeployment, and termination, as per ACAS guidelines.
3.3 Signs of underperformance may include failure to meet targets, frequent absences, behavioral changes (e.g., withdrawal, aggression, conflict), loss of enthusiasm, and demotivation.
Causes of underperformance may stem from work-related issues (e.g., lack of capability, agility, role changes, management changes, workplace conflict) or personal circumstances (e.g., health issues, family concerns, bereavement).
3.4 Challenges in managing underperformance may include a lack of confidence, knowledge gaps, time constraints, dealing with denial, managing stress, senior management expectations, lack of support, maintaining business continuity, managing staff morale, and threats of harassment or bullying.
3.5 Techniques for managing high performers may include identifying and nurturing their potential, motivating and engaging employees through various activities, recognizing intrinsic and extrinsic rewards, providing career development opportunities, job redesign, promotions, secondments, and talent management.
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