Performance management is the ongoing process of setting expectations, providing feedback, and addressing underperformance.
Legislation: Related to Unfair Dismissal and Disciplinary Action | Category: HR Management
What is Performance Management?
Performance management is the ongoing process of setting expectations, providing feedback, developing capability, and addressing underperformance. A robust performance management framework supports productivity, engagement, and, where necessary, defensible termination decisions. It is distinct from disciplinary action, which addresses misconduct.
For underperformance to justify termination, the employee must have been given clear expectations, feedback on their shortcomings, reasonable opportunity and support to improve, and warning that failure to improve may result in termination. Skipping these steps often results in successful unfair dismissal claims.
Key Compliance Points for Employers
- Performance expectations should be documented and communicated clearly from commencement
- Regular feedback (not just annual reviews) allows early intervention for issues
- Performance improvement plans should be specific, measurable, and time-bound
- Employees should have access to support (training, coaching, resources) to address gaps
- Documentation of the process is essential for defending any subsequent termination
Frequently Asked Questions
What is Performance Management?
Performance management is the ongoing process of setting expectations, providing feedback, and addressing underperformance.
Why is Performance Management important for employers?
Understanding performance management helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
