Performance management includes ongoing performance development and managing underperformance. Underperformance may occur when an employee loses motivation in their work role, not being challenged enough, bullying and a low wage. Underperformance may also occur due to unclear work expectations, personal issues and external factors such as challenges within the industry.
Underperformance can be managed in various ways such as identify the cause of the issue rather than seeing the employee as the problem. Management may also include regular check ins without micromanaging, supporting the employee with external counselling if personal issues are the cause, review the culture of the workplace and offer mentoring. A last resort usually includes a Performance Improvement Plan. Effective policies and procedures need to guide performance management and dismissal if no change occurs to avoid legal action including unfair dismissal claims.
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