Comprehensive Discussion on Employee Performance Management and Corrective Actions

Hi friends,

I am looking for a way to address underperformers who consistently achieve below the set targets. Besides salary, we offer incentives, performance bonuses, etc., paid biannually. Are there any alternative methods of penalization aside from issuing warning letters?

Regards,
rjnair

Hi,

Usually, underperformers are given a specific timeframe to improve their performance. However, even after that period, if the performance issues persist, the following actions may be taken:
1. Reduce the percentage of the incentive.
2. No bonus will be given.
3. No advancement in designation.
4. Place them on bench status.
5. Issue a warning letter (as previously mentioned).
6. Enforce a forced resignation.

I believe it is essential to consider discussing these measures with the employee before implementation. It would be beneficial to provide training to help them enhance their skills. This approach aligns with my perspective.

Regards

Dear Mr. RJ Nair,

Have you studied the causes of underperformance? Have you segregated individual and organizational factors? Performance is a result of the competencies of the 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-the-job training do they conduct for these employees?

There are so many questions that need to be answered.

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

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

Thanks,

Dinesh V Divekar

"Limit of your words is the limit of your world"

Bravo Divakar,

You have raised many questions that RJ Nair has not considered. I think you are one of those consultants who have a good insight into what Performance Management is all about. I also appreciate your "Socratic" way of teaching. I wonder whether RJ Nair is aware of Vroom's Expectancy Theory of motivation, which underpins the questions that you have raised.

Have a nice day.

Simhan
A retired academic in the UK

Dear Mr. Dinesh V Divekar,

I 100% agree with your opinion and I totally disagree with Mr. RJ Nair to penalize underperformers. 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 with what you said. It is very well said that we only emphasize punitive actions, why not corrective actions? I am also struggling with the same environment in my organization where my whole senior management is on the same level of thinking. Being a training head, I am finding it difficult to motivate employees as there is no motivation or recreation for the staff.

Please suggest some effective ways to help my senior management understand the importance of staff satisfaction and retention.

Regards,
Mitali

Prior to initiating any such initiative, your management/board should introspect the HR policy.

Is your Performance Management System (PMS) measurable? If not, what is the basis for identifying an employee's performance? Is it simply based on bias/personal observation of the manager?

Has your organization ever identified the Learning & Development (L&D) needs of your employees or analyzed at least the level of engagement?

In most cases, the problem lies with the management and board viewing the business with a narrow, one-directional perspective and blaming employee non-performance without laying a platform that fosters creativity, pay for performance, employee development, and mutual respect.

The bottleneck is often at the top, with senior management and the board lacking expertise to lead the business and retain people.

Speak to your management and initiate change initiatives for development rather than relying on the primitive (X theory) concept of punishment and negative motivation.

Regards,

Debasis