HRM approaches to managing & controlling performance

HRM approaches to managing & controlling performance Management Level – Paper E2 Project and Relationship Management Lecture - 018 Vidya Rajawasam ACMA CGMA MBA

HRM approaches to performance In the previous lecture, we have discuss about the • The purpose of HRM • Management control • Health & Safety

HRM approaches to performance In this lecture, we will discuss about the • Discipline • Grievance procedure • Dismissal and redundancy

HRM approaches to performance Discipline Discipline means different things to different people. Often we think of it as the use of power or authority to compel us to act in a certain way. Alternatively, discipline can sometimes mean being punished for not doing something right.

HRM approaches to performance Discipline But here discipline is not all about punishing people for getting things wrong; it’s about establishing a framework to help them get things right. In this case, the framework is the disciplinary procedure, where guidelines are set, without appearing dictatorial, to encourage staff to behave in an acceptable manner.

HRM approaches to performance Discipline It’s reasonable to expect employees to turn up for work on time, for instance. So, if someone persistently arrives late for work, say, that would not be considered acceptable. The clearer the disciplinary procedure and the better it is understood, the more likely it is that people will behave acceptably and no corrective action will be required.

HRM approaches to performance Discipline As with all rules and guidelines, it’s important that the organisation produces documentation that‘s explicit about what is acceptable and what the consequences are if the rules and guidelines are not followed. For instance, the individual with lax timekeeping needs to know in advance what action will be taken if they keep coming in late for work.

HRM approaches to performance Discipline It is not sufficient simply to make people aware of the procedure; the employer has to ensure that all staff actually read and comprehend it. To this end, many organisations require their employees to study the documentation and then answer a number of questions aimed at testing their understanding of the procedure.

HRM approaches to performance Types of Disciplinary issues There are various types of behaviour that may be deemed inappropriate, ranging from minor infringements to serious breaches. They include: • Persistently arriving late for work and/or leaving early without approval. • Misusing company equipment. • Pilfering company property.

HRM approaches to performance Types of Disciplinary issues • Acting inappropriately in meetings with clients. • Failing to comply with health and safety regulations. • Making threats to colleagues. • Committing a fraud. It’s important that the disciplinary procedure can be applied to any form of inappropriate behaviour that occurs, whether it’s trivial or grave.

HRM approaches to performance Types of Disciplinary Procedures While specific steps can vary between organisations, the following highlights a typical sequence of events aimed at ensuring that a disciplinary matter is handled appropriately:

HRM approaches to performance Types of Disciplinary Procedures • Informal discussion. This is an “off the record” meeting between the individual concerned and their manager. It is often used to deal with minor breaches, with the intention of tackling the problem before it becomes more serious. • Verbal warning. This will occur if the breaches continue after the informal discussion. The manager will record it.

HRM approaches to performance Types of Disciplinary Procedures • Written warning. This will be invoked if the verbal warning has no effect. It will be put on the employee’s record. Some organisations give only one written warning before moving on to the next step in the process, while others issue two.

HRM approaches to performance Types of Disciplinary Procedures • Suspension. The employee will be removed from their duties, usually on full pay. This step is intended as a temporary measure, often to give the individual time to reflect on their wrong doing and give their manager time to conduct a comprehensive investigation.

HRM approaches to performance Types of Disciplinary Procedures • Demotion. This is a more permanent sanction used in cases where the employee has not brought their behaviour up to an acceptable standard after all the preceding steps. • Dismissal. The ultimate step in the process results in the termination of the employee’s contract of employment.

HRM approaches to performance Types of Disciplinary Procedures It is important to deal with a breach of discipline at the appropriate stage to ensure fairness. In most cases, problems are resolved at an early stage so that the final steps are not necessary. But there may be instances where the process would start at one of the later steps.

HRM approaches to performance Types of Disciplinary Procedures For example, if an employee were to cause actual bodily harm to a colleague, starting with an informal warning would definitely not be appropriate. In such a case, it’s likely that the individual would at least be suspended while investigations are conducted, or even instantly dismissed if enough evidence to support this measure were to exist.

HRM approaches to performance Types of Disciplinary Procedures Whatever action is taken, it must always be in line with the guidelines documented. It is also important that the procedure sets out what the employee would need to do if they should decide to exercise their right to appeal.

HRM approaches to performance Review MCQs Following events are not part of the dismissal procedures? • Verbal warning • Written warning • Informal discussion • Non of the above

HRM approaches to performance Review MCQs What is the true statement related to the suspension of employment? • Employee is not paid during the suspension. • Employee is paid a percentage of pay. • Employee is removed from the duties with full pay. • Non of the above

HRM approaches to performance The grievance procedures A grievance occurs where an employee perceives that they are being treated unfairly, either by a manager or by a peer. The key word is “perceives” – ie, it feels to them that they are being treated unfairly, even if others don’t agree..

HRM approaches to performance The grievance situations The following are typical situations in which an employee may invoke the grievance procedure: • They feel that they have received an unfair appraisal. • They feel that they are being bullied. • They feel that they have been unfairly overlooked for an internal vacancy. • They feel that they have been unfairly dismissed.

HRM approaches to performance The grievance procedure steps A typical grievance procedure features the following sequence of steps: • The employee raises the grievance with the person to whom they normally report (unless the latter is the source of their grievance) and they meet to discuss it, allowing for the employee to be accompanied by a colleague.

HRM approaches to performance The grievance procedure steps A typical grievance procedure features the following sequence of steps: • The supervisor decides what the appropriate action should be and informs the employee. • The employee has the right to approach a more senior manager if they are not satisfied with the decision or if the grievance is against their immediate superior.

HRM approaches to performance The grievance procedure steps • If the employee is unsatisfied with the senior manager’s decision, they may decide to take their grievance to an employment tribunal (in the UK) if it concerns their statutory rights – e.g., a claim for unfair dismissal. It may be possible to refer a case to an arbitrator, a third party who will work with both parties to solve the problem without resorting to tribunal proceedings.

HRM approaches to performance The grievance procedure steps With both disciplinary and grievance matters, it is important that action is taken promptly, avoiding unnecessary delays and stress, and that all parties act with integrity at all times. It is also important for the HR department to be involved in the process.

HRM approaches to performance Example Consider a situation where an employee feels that they are being treated unfairly by their line manager. Perhaps the employee is being forced to work longer hours and given a much heavier workload than the rest of their team, all of whom are meant to be performing similar roles.

HRM approaches to performance Example contd… This has put the individual under extreme stress and so, eventually, they decide to complain to their manager’s immediate superior. The employee has a grievance, as they feel that they are being treated unfairly and put under undue stress by their line manager.

HRM approaches to performance Example contd… This complaint would need to be investigated under the organization's grievance procedure, using steps similar to those outlined earlier. If the organisation were to uphold the employee’s grievance action in the belief that their manager had indeed been acting unfairly and inappropriately. Then disciplinary proceedings would need to be taken against the manager too.

HRM approaches to performance Benefits of grievance procedures The benefits of having disciplinary and grievance procedures in place are as follows: • Employees at all levels know what steps will be taken. • Employees feel that there is a system in place that they can trust.

HRM approaches to performance Benefits of grievance procedures The benefits of having disciplinary and grievance procedures in place are as follows: • The organisation is meeting its legal obligations as an employer to provide such procedures. • It should help to prevent the organization's image from being tarnished.

HRM approaches to performance Dismissal and redundancy What is Dismissal? Dismissal means termination of employment with or without notice by the employer, or in the case of constructive dismissal, the resignation by the employee because the conduct of the employer was sufficient to be deemed to have terminated the contract by the employer’s action. Dismissal without notice is usually wrongful dismissal, that is a breach of contract.

HRM approaches to performance Dismissal and redundancy There are a number of types of dismissal that you need to understand, which are: • Wrongful dismissal. • Unfair dismissal. • Redundancy

HRM approaches to performance Dismissal and redundancy • Wrongful dismissalWrongful dismissal occurs when the employer ends the employment contract in a way that is in breach of the employment contract. The usual situation in which this would occur is when the employee is dismissed without being given the notice they are contractually entitled to.

HRM approaches to performance Dismissal and redundancy • Unfair dismissalUnder the Employment Rights Act, the employee has a right not to be unfairly dismissed. This occurs when they are either dismissed for something that is not a fair reason, or following something that is not a fair procedure. If the employee believes they have been unfairly dismissed they should make a claim to an employment tribunal within three months.

HRM approaches to performance Dismissal and redundancy • RedundancyRedundancy occurs when there is no longer work available for the employee. This could be because the employee has ceased the type of business the employee was engaged for. Redundancy is a statutorily fair reason for dismissal but the employer must follow a fair basis for selection of employees.

HRM approaches to performance Dismissal and redundancy The Dismissal is only fair if the employer can show one of the following. • Reason related to the employees conduct. • Reason related to the employees capability or qualifications for the job. • Due to statutory duty or restriction prohibited the employment being continued. • Because the job role was redundent. • Some other substantial reason which justifies the dismissal.

HRM approaches to performance Review MCQs The benefits of grievance procedures are ? • Employees feel that there is a system in place that they can trust. • No added projection for company image • Reduces employee absence • Non of the above.

HRM approaches to performance Review MCQs The types of dismissal procedures are ? • Wrongful dismissal • Unfair dismissal • Redundancy • Demotion

HRM approaches to performance Lecture Summary We have discussed the • Discipline • Grievance procedure • Dismissal and redundancy

HRM approaches to managing & controlling performance Management Level – Paper E2 Project and Relationship Management Lecture - 018 Vidya Rajawasam ACMA CGMA MBA

HRM approaches to managing & controlling performance