Managing Inadequate Performance

 While a large percentage of employees usually perform at “Good/Outstanding” or higher levels, for cases where an employee’s performance falls below the required standards in any area; it is desirable to have a standardized approach across VINSUM. The policy on managing inadequate performance is meant to ensure that:

 

All Managers act consistently in dealing with inadequate performance.

Decisions are not perceived as having been “arbitrarily taken” i.e. employees are treated as equitably as possible and appropriate steps are taken to enable the employee to reach the standard required.

What Inadequate Performance Involves

Inadequate performance relates primarily to situations where an employee member’s performance is not up to the requisite standards because of a lack of capability which could be skill, attitude, or even effort related.

While the managers will ultimately decide what actually constitutes inadequate performance in the context of their specific work requirements, it includes instance where standard of performance fall below target display of undesirable behavior” with regard to company’s Shared Values and an attitude that is not supportive of “continuous improvement”.

The policy outlined below does not cover instance of gross negligence requiring disciplinary action.

Identifying cases of Inadequate Performance

Inadequate performance / potential de-hiring cases will be identified by the immediate superior, as part of the regular MBO reviews/ongoing year-round process of performance assessment.

Procedure for Managing Inadequate Performance

Informing the employees about inadequate performance

This should be done as soon as the inadequate performance is noticed. During the meeting with the employees he / she should be informed about the specific reasons and given suggestion for improvement. A date should be set to review the progress.

The meeting should be documented and a copy should be kept in the personal file. No advance /loans should be extended to employees till such time that the formal reviews of performance are completed.

 

 

First Formal Review (5 months later)

The first formal review should review progress in the light of the previously agreed action plan/Job Description given to employees.  The details should be documented and given formally by the immediate superior to the employees concerned with a copy for the personal file.

Second Formal Review (6 months later)

The immediate superior should review with the employees concerned, their performance. If no improvement is seen then the case should be discussed between the employee and his reporting manager regarding his contribution to VINSUM. The same would also be discussed with the HOD and CMD and a final decision be made.

Other General Principles

Managers should at each stage of the procedure, give consideration to the following:

Providing increased coaching and supervision

Providing additional training

Transferring employees to another position in the Unit/Dept that is more suited to their skills

It is important that the actual performance planning, review and coaching system reflects accurately on employee’s performance.  A satisfactory performance rating (On Target and above) can undermine credibility if subsequent action has to be taken on grounds of inadequate performance. In such cases, details should be provided to HR Dept for the subsequent classification of performance as inadequate.