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					Human Resources

Day Two – Vicki Wilson, Matrixone

                  Workshop overview

   HR Foundations provides an introduction to Human
    Resources Management best practice.

   Day 1 - Focus on the fundamentals of recruitment and
    selection and introduces some of the emerging HR issues
    Rosie King, SPARC

   Day 2 – Focus on developing organisational talent
    Vicki Wilson, Matrixone

                           Day one

o   Yesterday’s content:

       The changing talent pool
       Recruitment and selection
       Interviewing technique
       Remuneration and benefits structures
       Employment contracts
       Induction
       Work / life balance issues
       Retaining staff

                          Day two
o   Today’s content:

     Performance management system
     Conducting a performance appraisal
     Developing key performance indicators and
       Linking performance to remuneration
       Succession planning
       Learning and development
       Termination of employment
Performance Development

 defining success and measuring your progress
                     Success is….   6

About defining your desired
end point and working towards
achieving it….

                defining the benefits

o   What are the benefits of Performance Development?
                         benefits                               8

o   Provides a link to the strategic and business plans
o   Identifies and records key organisational priorities
o   Places accountability for key outcomes, tasks and activities
    with the appropriate individuals
o   Assists managers and team members to be clear with each
    other regarding completion of key responsibilities and the
    timeframes for completion
o   Transforms an organisation into a „results driven‟ environment
    whereby top performers are rewarded and recognised
o   Enables managers to identify poor performers and to address
    lack of performance
o   Encourages open communication between managers and their
o   Provides a link to remuneration

The key objectives of the performance development process
o clarification of performance levels in current role;
o review of performance objectives as set at the previous
  annual performance review;
o identification of areas for development to ensure an
  individual meets/exceeds performance expectations in their
  current role;
o setting of Key Performance Indicators (KPIs) for the
  forthcoming financial year;
o development of a Learning & Development Plan that
  supports performance in current role, and identifies
  ongoing training requirements; and,
o development of career goals and aspirations.

Enables us to assess “where to from here…?”
components of performance management                       11


                Performance Development

 Annual Performance               Learning & Development
       Review                             Review
creating organisational alignment              12

Strategic plan                   Annual plan

                   CEO KPIs

             Management KPIs

                 Employee KPIs
                          timing                           13

When to conduct performance development processes?

o   Ideal to coincide with organisational planning and review
    timetables / processes
o   Should follow on from annual planning processes
o   Ties into financial planning timetable
o   Linkage to completion and commencement of new financial
o   Frequency to provide regular feedback of a „formal‟
o   Links to remuneration, reward and recognition,
    performance planning, learning and development,
    succession planning, talent management and people
    capability processes
             setting kpis – the „what‟


o   S

o   M

o   A

o   R

o   T
                  setting kpis – the „what‟


o   Specific: the objective/competency is clearly stated and

o   Measurable: it can be determined whether the required
    output has been achieved

o   Achievable: stretching performance

o   Relevant: to the business plan and job description

o   Time-Framed: by what date do outcomes need to be met
            handy hints for writing kpis                    16

o   Ensure you understand the key purpose of the role
o   What are the key deliverables? (as opposed to „business as
o   How does your role impact on the final outcome for the
o   Focus on outcomes (as opposed to process)
o   Can they be measured?
o   Are they quantitative or qualitative?
o   Are they aligned to your manager‟s, to the organisational
    plan, to community requirements, to other funding
o   Are they challenging yet achievable?
o   Are they a „walk in the park‟?

              Determining the weightings

o   The weightings are a reflection of the degree of
    importance or organisational significance attached to kpis
o   Weightings are not attached to individual actions or result
    areas, but are used to determine relative importance
    between kpis
o   Weightings determine the quantum of payment (where
    linked to remuneration) for performance
o   Weightings are applied to both „hard‟ kpis and „soft‟ (or
    behavioural) kpis
o   Must add up to no more than 100%
                defining a challenge   18


Using the SMART criteria,
write down 3 „challenging‟
kpis for your role and why
these are difficult to

Why are they a challenge?
How can you overcome any
               competencies – the „how‟

     These are the behaviours we demonstrate in achieving
     the outcomes required

o   Competencies are typically generic across an organisation –
    can have limited variation depending on individual
o   How do you want to interact with each other, external
o   How do you want your values represented
o   Competencies impact on culture of your organisation
         understanding your workplace…..

                  Working blind

                   Heaps of fun

Stressed out
                   defining behaviours

Exercise (1)

o   Write a list of behaviours exhibited in your workplace
    (good and bad) – think of work colleagues, customers,
    supervisors, etc.
o   Group them into competencies, rather than just observed
o   Then, write a list of behaviours (or competencies) to which
    you believe everyone in your organisation should adhere
o   Then, compare the two. How much difference is there…?
                  defining behaviours

Exercise (2)

o   Using the list of behaviours, write down how you might be
    able to assess these behaviours? Can they be
    quantitatively or qualitatively measured?

o   If so, how….? I.e., by what means?

o   What will they look like when you see them?

     handy hints for effective performance
           development programmes
o   Be clear and consistent as an organisation what constitutes
    „satisfactory‟ performance
o   Benchmark your assumptions and expectations with those
    of your peers (preferably before meeting with team
o   Use the „one-up‟ rule for sign offs
o   Ensure consistency amongst the management team
o   Expect and encourage healthy debate and discussion

                  completing the pdp
o   Write your own KPIs for your role.
o   Write kpis for any team members that report to you.
o   How many kpis should they have?
o   Use the format provided

Complete the learning and development section
o How do you know what you need?
o How will it be delivered?
o Who has the budget to pay for it?
o How can it be delivered cost effectively?
              learning and development                       25

o   Analyse what is needed for person to be effective in their
o   Review their performance and identify gaps or short
    comings in their behaviour or outcomes
o   Learning and development interventions need to address
    the „what‟ as well as the „how‟
o   How can it be delivered cost effectively? Can you provide
    in-house coaching and mentoring? Are there other
    organisations or regions that wish to undertake training?
    I.e. are there economies of scale with regard to
    attendance at training?
      Conducting performance review meetings                    26

                   using the pdp
At the beginning of the review year:

o   Ask your direct reports to collect information, data etc on
    their objectives for the forthcoming year
o   Where possible, encourage the individuals to develop the
    first draft of the PDP
o   Review first draft, add in your thoughts and comments
o   Produce final agreed document for sign off (done within first
    couple of weeks of new year)
o   Ensure all components of the pdp are completed – including
    Your Career, Learning and Development, etc.
o   Ensure you reinforce that this process is about rewarding
    and recognising superior performance. This is not about
    „business as usual‟ as these aspects of the job are covered in
    the position description
       Conducting performance review meetings                  27

                using the pdp (cont‟d)
At mid year:-

o   Provide your direct reports with sufficient notice and guidance
    about the upcoming performance review process
o   Ask them to review their own performance independently of you
o   You review their performance independently. Be sensitive to how
    comments can be perceived by the other party
o   Swap documents before the review meeting (i.e., show and tell)
o   At the review meeting focus on the gaps
o   Be prepared to discuss and debate the various issues and
o   Keep the discussion on the issues, do not let it get personal
o   Aim to get to an agreed outcome on the kpis, competencies and
    review progress on the learning and development front
      Conducting performance review meetings                  28

               using the pdp (cont‟d)
At end of year:-
o   Provide your direct reports with sufficient notice and guidance
    about the upcoming performance review process
o   Ask them to review their own performance independently of you
o   You review their performance independently. Be sensitive to how
    comments can be perceived by the other party.
o   Swap documents before the review meeting (i.e., show and tell)
o   At the review meeting focus on the gaps
o   Be prepared to discuss and debate the various issues and
o   Keep the discussion on the issues, do not let it get personal
o   Aim to get to an agreed outcome on the kpis, competencies and
    review progress on the learning and development front
     Conducting effective performance review                 29


o   Allocate quiet and private space for the meeting
o   Ensure you are well prepared. Do not conduct performance
    review meetings „on the fly‟
o   Allow plenty of time for the meeting (up to 2 hours)
o   Review available material
o   Keep notes throughout the year on positive behaviours. Ensure
    you mention the “things that could be improved…” and be
    specific in your feedback
o   Be consistent across your team and across the organisation
o   Talk to colleagues to understand interaction and performance
    across the organisation
o   Remain open minded (as hard as it can be at times)

    Conducting effective performance review
                meetings (cont‟d)
o   Listen to your team member‟s views and opinions
o   Ensure you ask questions to clarify and expand
o   Don‟t make discussions personal (focus on the issues)
o   Be prepared to back yourself. Your role as manager /
    leader is important
o   Where disagreements cannot be resolved, your team
    member may ask to see your manager; disagreements can
    also be recorded on back page of pdp document
Linking Performance and

 aligning performance and remuneration outcomes

o   A means to an end……………
o   A measure of worth……………
o   A point of comparison………….
o   A measure of success…………
o   Unimportant…………
o   Single minded driver………

advantages and disadvantages of linking
    remuneration and performance
     linking performance and remuneration                                        34

     Concept is to reward and recognise performance using
     „lever‟ of remuneration.
o   Benefits include:
        o top performers are rewarded for their efforts and outcomes;
        o limited budgets can be properly allocated to those who have performed
          the best and have contributed to achieving the organisational goals; and
        o Appropriate messages are communicated to top performers with regard
          to their future career opportunities within the organisation.

o   Remuneration structure can be combination of any or all of
    the following:
        o   Base salary
        o   Commission
        o   Incentive
        o   Variable
        o   Discretionary Bonus
        o   One off payments
linking performance and remuneration             35

Total remuneration may be made up of:

           Discretionary Bonus

     TOTAL REMUNERATION                   100%

               Variable             10%

             Base Salary          90%
     linking performance and remuneration                      36

o   Base salary is paid for the employee performing the duties
    and responsibilities determined by the job description and
    „custom and practice‟ for that role

o   Variable component is linked to successful performance (as
    determined by the pdp). Payment of the variable
    component is dependent on their performance against
    established expectations. Can be a percentage of base
    salary, of total remuneration or a flat amount

o   Discretionary bonus is linked to consistent over
    achievement, organisational ability to pay. There is no
    requirement to pay the bonus where performance has not
    exceeded expectations (as determined by the CEO or
    equivalent), or where the organisation does not have the
    ability to pay
                 determining variable pay                     37

o   Must achieve a „3‟ or better on the performance
    development plan KPIs and competencies.
o   Can rate individual kpis and competencies; or can go for an
    „overall performance rating‟

                           Variable of $500

     KPI No. 1       30%        2              $0

     KPI No. 2       30%        3              $150

     KPI No. 3       15%        3              $ 75

     KPI No. 4       25%        4              $125

                                       TOTAL   $350
Learning & Development

 maximising & growing your resources

o   well trained employees will help you to achieve your
    organisation‟s goals and objectives

o   research has shown that training and development has a
    positive impact on retention (i.e. employees who are
    trained and developed in their role are more likely to stay
    with their employer)

                                     …but it can be a
                                     balancing act…
                methods of training (1)

o   Face to face training - Face to face training can either be
    in house or external
o   E-learning and computer based training (CBT) - also known
    as online learning and uses technology including the
    internet, intranet and CD ROM to provide training to
    employees via their computer.
o   On the job training – this is one of the best means of
    developing your employees. As a manager you should
    provide ongoing opportunities for people to grow and
    develop in the workplace.
o   Experiential learning – this is learning through doing and
    focuses on completing an activity, learning from it and
    applying what was learnt in other areas of life including
    the workplace.
               methods of training (2)

o   Seminar and conference attendance – an invaluable way to
    keep up with industry trends and market information
o   Completion of degrees and diplomas – completion of a
    relevant degree or diploma is an effective way to up skill
    your employees
o   Self development – employees should be encouraged to
    remain up to date with industry trends and developments.
    This may include reading related books, research articles
    and becoming members of relevant industry bodies and
    professional interest groups
o   Networking – association with professional groups and
    attendance at external conferences and training courses is
    a great way to build a network
      Mechanism for identifying learning &                    42

              development needs

o   Use pdp as the document for identifying training needs.
    These could technical „gaps‟ – for example coaching
    methodology, use of sport science in high performance
    coaching and athlete development

o   Could be behavioural (or soft skill) „gaps‟ – e.g.,
    communication skills, leadership and management skills,
    influencing skills, etc

Sourcing training:

       Refer to SPARC People Management Handbook for
       further information (pp 59-64).
Succession planning – talent

  Knowing who your key people are and keeping them
  motivated and challenged
succession planning / talent management

The concept of talent management is growing in recognition
amongst many organisations

At its simplest, it is about identifying your key people,
working with them to identify their goals and aspirations,
ensuring your people management processes are aligned
with their aspirations and determining targeted HR
interventions to ensure they remain motivated and
committed to your organisation

Talent management is not trying to be “all things to all
people”. It assumes discrimination based on performance,
capability and employee potential within your organisation
and the sector
succession planning / talent management

The identification of your top talent is best done in
conjunction with your performance review, learning and
development and remuneration review timetables.

Where you have a structured process enabling you to
identify your top talent, this should be done prior to
conducting performance reviews and making decisions on
remuneration increases.
Termination of Employment

 when your best endeavours don‟t work!!
An employment relationship can end for a   47

         number of reasons……

o   Staff member can chose to retire - there is no compulsory
    retirement age.
o   Only exception whereby employees whose employment
    agreements specified a retirement age pre 1 April 1992
    and agreed in writing for this to continue on or after this
o   Unless you are one of the „nominated‟ industries, cannot
    force person to retire
o   Benefit to the organisation of retaining skills, knowledge
    and expertise
o   May be able to look at flexible work practices
           end of fixed term agreement

o   Must still provide the employee with notice to advise
    employment agreement due to end
o   Must comply with notice period in agreement
o   If not concluding employment agreement, then must notify
    staff member their agreement will be extended for a
    period of time (define what that period of time is)
o   Cannot simply „rollover‟ fixed term agreements indefinitely
    – this may result in a „deemed‟ permanent employee
o   Fixed term agreements entirely legitimate and legal within
    correct context and sector; e.g. Sporting Coaches
o   Must still comply with terms and conditions in the EA.
                            dismissal                     50

    The employment agreement ends due
    to actions or inactions on the part
    of the employee – this could be
    performance, serious misconduct or
    other breaches of your policies or
o   It is imperative you use an
    established process for managing poor
    performance and instances of serious
    misconduct in your organisation
o   Precedence is an important factor (i.e., be
o   Ensure individual has opportunity to explain and to
    improve their performance (unless it is an issue of
    safety to self or others, etc)
o   Provide coaching, assistance, mentoring or other
    training where required
           termination of employment


o   Three types of dismissal:

    1. As a result of disciplinary process (Misconduct)

    2. As a result of single incident (Serious Misconduct)

    3. As a result of actions on the part of the employer
       that makes it difficult for the employee to remain in
       the organisation (Constructive Dismissal).

o   Dismissal – where the conduct does not justify summary
    dismissal, but does justify some disciplinary action, a
    warning process can be instigated.

o   This would normally be used in situations where the
    employee‟s performance or conduct is not up to standard
    or they have not adhered to certain requirements of the
    employee handbook (e.g. repeated lateness or
                        misconduct                             54

Example Only
o Step 1.     Give a formal warning. Can be verbal or
  written (but must be recorded)

o   Step 2       Give a final warning if the formal written
    warning is not heeded or there is further misconduct or
    poor performance. This should state that further poor
    performance or misconduct will result in dismissal. This
    warning will also remain on file unless the organisation
    decides to remove it.

o   Step 3      Dismissal, either summarily or on notice, if the
    final warning is not heeded, or if there is further poor
    performance or misconduct.

        This is in your SPARC People Management Handbook
                      (pp 67 – 69; Appendix 11)
                        misconduct                             55

o   Any dismissal must be carried out in a procedurally fair
    manner and for good reason; otherwise the employee may
    have grounds for taking a personal grievance.

o   This could prove costly both in terms of financial cost and
    damage to your reputation as an employer. If you do plan
    to instigate the disciplinary process you must always make
    sure you are clear about the facts before you raise the
    issue(s) with the employee.

        See SPARC People Management Handbook for further
          information on conducting disciplinary processes –
                            Appendix 11
                         misconduct                          56

When things go bad….
o   There are two major reasons as to why disciplinary
    processes and subsequent termination of employment can
    be overturned. These are:
    o Procedural unfairness
    o Lack of substantive justification

o   Remedies can include reinstatement, payment of lost
    wages, payments for hurt and humiliation, etc.
                     serious misconduct                               57

o   This is where the employee‟s behaviour or actions are
    sufficiently serious to justify termination of their
    employment (with or without notice)

o   Examples of serious misconduct may include (but are not
    limited to):

    o   Theft of property (more than just a pen!!)
    o   Assault of another person (during „work‟ hours)
    o   Harassment (physical, sexual, etc)
    o   Intoxicated at work
    o   Breaches of health and safety policies (likely to result in
        harm or serious harm)
                   serious misconduct                              58

o   Requirement to ensure investigation is conducted in a fair
    and unbiased manner.
o   Employee must be given opportunity to explain reasons for
    actions, and to have their explanation considered.
o   Must be advised in advance that the meeting is regarding
    a serious disciplinary issue, could result in termination of
    their employment, they are entitled to bring a witness
o   Ensure employee has been offered to have a support
    person or a witness present at any disciplinary meetings.

        See SPARC People Management Handbook for further
          information on conducting disciplinary processes –
                            Appendix 11
                           wrap up                           59

What we‟ve covered?
o   Performance Development - planning, processes, kpis,
    review cycles and processes; alignment with Strategic and
    Annual Plan
o   Conducting Performance Development discussions and
    writing kpis
o   Learning and Development
o   Performance and Remuneration – concept of structured
    remuneration packages, reward and recognition based on
o   Succession planning – identifying and retaining your key
    talent; understanding their perceptions of how well you are
    doing as an employer;
o   Termination of Employment

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