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Performance Management

Performance Management: Managing Underperformance (E)


Performance Management


What is the right approach of manager to performance management? How to encourage performance? How to deal with underperformance?

Posted: May 2010

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If there is a case of employee underperformance within the organization, it is necessary to undertake appropriate action. It is necessary to react upon identifying of continuous underperformance. The following steps are recommended as the standard procedure:

  • Consult the HR representative responsible for the performance management and disciplinary measures.

  • Summon the underperforming employee.

  • Give the most adequate feedback about employee’s underperformance. The underperformance should be pointed out with the specific examples, supported with the documentation.

  • Do not use terms „I think“, „My opinion is“ or „My understanding“, since that can jeopardize the objectiveness of the process.

  • Stress the fact that this underperformance will lead to certain measures that should improve the situation.

  • Establish the corrective action plan that should bring the improvement of the performance. The action plan should contain specific, measurable and achievable goals.

  • Employee should be aware of the consequences of continuous underperformance.

  • The employee should give written and signed statement that he understands the current situation. Keep the copy of the statement in the personal file.

The performance management has multifunctional importance. It recognizes individual contribution and gives opportunity individual development of employees. It contributes to organization by achievement of targets and continuous growth. The performance management is opportunity for organization to recognize the contribution of employee and to respond through reward programs.

After the initial meeting with the employee and establishment of the action plan, it is necessary to supervise and measure the development of the situation. The outcome of corrective action plan should be positive. 

It is necessary to track the development of the action plan on the weekly and monthly basis. The follow ups should be documented. Clearly communicate to the employee that the improvement is noticed, if there was any. Also, communication of no progress should be communicated, should this be the case.

Continue to supervise the development of the correction action plan and continue to inform officially the HR. Under normal circumstances the corrective development plan should give the positive outcome. 


Related Reading:

Performance Management And Employee Development 
Full Performance Standards 
Reasons For Underperformance 
Feedback As A Tool Of Managing Performance 
Obstacles In Performance Management 
Managing The Underperformance 
Handling The Problematic Employees 
Disciplinary Procedure 


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