Dinesh Divekar
Business Mentor, Consultant And Trainer
Learning & Teaching Fellow (retired)
Accounts, Admin, Sales Tax, Service Tax,
Gm-hr & Training
Pms, Payroll
Hr Manager,compensation & Benefit Manager,

Hi friends,
I am looking for a way out wherein I will be able to penalise the under performers, who generally acheive below average of the set target.
Other than salary, we provide incentive, performance incentive, etc., paid biannually.
Apart from this any other option of penalising rather than issuing warning letters, etc.
Usually the under performers are given a set of time frame to improve their performance, But even after if it is happening...
1. Cut short on the percentage of the Incentive
2. No Bonus.
3. No designation Advancement
4. Put them on Bench Status
5. Warning Letter ( that you have mentioned)
6. Forced Resignation
I am sure you would think and discuss with the employee before you would implement these things to employee. It would be best to put them in a training and improve their skills. This would be my point of view.
Dear Mr RJ Nair,

Have you studied the causes of under-performance? Have you segregated individual and organisational factors? Performance is a result of competencies of individual. Have you mapped the competencies of every position? If mapped, have you measured them? If measured then what steps have you taken to raise the levels of their competencies?

Secondly, is your recruitment competency-based? Seeds of poor performance are sown in recruitment itself.

Thirdly, what about the managers of poor performers? Are they competent 100%? If yes then what support do they give to these poor performers? What on job training do they conduct for these employees?

There are so many questions that that need to be answered.

You wanted to penalise the poor performers. But then along with this negative motivation, positive motivation also should go hand in hand.

Removing the poor performers is not a panacea. Could you calculate the cost of this attrition? Will it impact mentally to the other members of your organisation? What will be the cost of demoralisation?


Dinesh V Divekar

Limit of your words is limit of your world
Bravo Divakar
You have raised many questions which RJ Nair has not considered. I think you are one of those consultants that has a good insight of what Performance Management is all about and I also like your "Socratic" way of teaching. I wonder whether RJ Nair is aware of Vroom's Expectency Theory of motivation ( <link no longer exists - removed> )!! which underpin the questions that you have raised.
Have a nice day.
A retired academic in UK
Dear Mr. Dinesh V Divekar,
I 100% agree with your opinion and I totally disagree with Mr. RJ Nair to penalise Under performers:
If the employee is assessed as Does Not Meet Expectations or Needs Improvement for a performance expectation or significant Competency, the supervisor should implement a Work Improvement Plan.
The Work Improvement Plan is an explicit action plan designed to correct performance deficiencies within a specified time period.
Dear Mr.Divekar
I also agree completely wat u said ,and very well said that we only emphasise on punitive actions y not corrective actions ? I am also struggling wid the same environment in my organiastion where my whole senior management is on the same level of thinking and being a training head I am finding it difficult to motivate employees as there i sno motivation,recreation for the staff .
please suggest me some effective way to make my senior managment understand the importance of staff satisfaction & Retention.
prior to initiate any such initiative: your management/board should introspect the HR policy:

is your Performance Mgt System(PMS) measurable ? if not what is the basis of identifying performance of an employee or it is simply based upon the biasness/personal observation of the manager.

Does your organisation ever have identified the L&D need of your employees or analyzing atleast the lelvel of engagement .

in most of the case the problem is with the management and board of looking business from blocked minded one directional and blaming the non performance of employee but missed to laid a platform which foster creativity, pay for performance, employee developement & mutual respect .

The neck of the bottle(Bottleneck) is always at the top and in most of the cases senior management & board lacks expertise to lead the business and retain people.

speak to your management and initiate change initiative for developeing rather then looking at the premitive (X theory )concept of punishment, negative motivation.


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