COMMUNICATION WORKERS UNION	Thursday, 21 September 2006 A website for CWU Counters members in the North
Northern Territory

Agreements

Managing Underperformance Procedure

Introduction and Guiding Principles

Introductory Statement

I am pleased to introduce this guide to managing uinderperformance within Post Office Ltd. It is my belief that everyone wants to do a good job when they come to work. It is also my belief that with appropriate support and motivation all individuals should be able to perform to a good standard.

This guide has been developed following feedback from managers, front line individuals, employee support teams, and union representatives. We have also looked at good practice within the financial services sector.

In an increasingly competitive world we need to improve our performance just to stand still; given the pressures facing Post Office Ltd we know that we have to be able to perform at even better levels to compete in new markets such as financial services.

I would like to stress three important principles:

1. Performance management is critical to making the business successful

2. We will manage underperformance and not leave the individual unsupported

3. We will support people to achieve a good standard but they have to take responsibility for their own performance

Ian Anderson

Director Human Resources

Guiding principles

The aim of this approach is not to dismiss individuals but to improve their performance by informal and, if necessary, formal procedures. Dismissal will only take place as a last resort where, despite support provided, sufficient improvement has not been achieved and alternatives considered.

It is expected that with robust action plans clearly detailing the required standards and the specific actions and timescales involved, the vast majority of individuals will be removed from the process because their performance has sufficiently improved.

The process will not apply where other specific procedures exist:

• during trial

• conduct

• attendance

Back to top

Managing Underperformance

Line manager responsibility

Line managers identify underperformers as part of their normal day-to-day performance management (of which The Performance and Development Review is a part).

Regular 1-2-1s are a key to good performance management. They should be held ideally monthly and must be held at least quarterly.

The first stage in managing underperformance is to ensure that the individual is fully aware of what is expected of them with regard to their:

• personal and business objectives (which should be consistent with stated business aspirations)
• job description and role within the business
• behaviour and attitude

Back to top

Informal discussion

If it becomes apparent to a manager that a particular individual for whom they have line responsibility is not meeting the required standard of performance, either generally or in a specific area, the intention should be to resolve such matters through an informal discussion at a 1-2-1:

• state the performance required

• state the shortfall in performance

• reach agreement if possible on the shortfall in performance

• explore reasons for the performance shortfall

• agree actions and a timetable for improving performance

It is hoped that following an informal discussion the individual’s performance will improve. Although informal, a note of the discussion must be recorded as part of the 1-2-1 process. It is expected that a line manager raising underperformance informally will ensure the individual is aware of the services of Employee Health Services and the regulations concerning the Disability Discrimination Act etc.

Back to top

Formal procedures

If no improvement has been identified following an informal discussion, the individual must be notified of the intention to begin formal procedures by the line manager. It is not expected that the period between informal discussion and the formal process being started should be less than four weeks.

Individuals who are underperforming must be formally advised they are underperforming at a regular

1-2-1. It is not expected that an individual will be placed on the formal procedure without the performance

issue having been raised informally at a previous 1-2-1.

Having explained to the individual that formal proceedings have been initiated, the line manager will then

invite the individual by letter to a formal interview.

Back to top

The formal interview

The individual will be invited to a formal interview which should take place within ten working days of

them being advised that they are underperforming.

The individual must be advised of their right to be represented by a companion who may be a friend or union representative from the business. From the 1st October 2004, due to changes in the law employers must allow the companion to put the individual’s case, to sum up that case, and to respond on their behalf to any view expressed at the interview. The companion may still confer with the individual during the hearing. The amended law also provides that the employer is not required to permit the companion to answer questions on the individual’s behalf, address the hearing if the individual indicates that he does not wish the companion to do so, or use the powers in a way that prevents the employer from explaining his case or any other person from making their contribution.

The objectives of the formal interview are to:

• state the performance required

• state the performance shortfall

• demonstrate the shortfall with evidence and documentation (where available)

• reach agreement if possible on the performance shortfall

• explore reasons for the performance shortfall (including any external factors)

• agree a plan and timetable for closing the gap between the performance shortfall and the required

standard

• include consideration of any mitigating factors

• remind the individual of the services of the Employee Health Services

At this formal interview the action plan must be agreed with input from the individual encouraged.

Notes of formal interviews should be recorded, signed and agreed by both the line manager and the individual.

Back to top

Action plan

The action plan sets out the required standards, the shortfall in performance and, most importantly, the

clear steps/actions that will be undertaken by the individual and any support the manager will provide (for

example coaching) to close the gap with agreed timescales for improvement.

This action plan must not be longer than 13 weeks, i.e. after 13 weeks the individual should have improved

to the extent they are no longer underperforming or they will have progressed to second line manager

involvement (see stage two). For absolute clarity the action plan may be shorter if the individual improves

and maintains the required performance standard for four weeks when they will be removed from the

process.

The emphasis is on supporting the individual to improve and to deliver the action plan.

Back to top

The formal process stage one

At the first formal meeting the individual has the right to be accompanied by a friend from the business

who may be their trade union representative (see formal interview section on previous page).

At stage one of the formal process for managing underperformance there are regular (at least monthly)

formal meetings to review progress against the action plan between the line manager and individual.

At each meeting it should be recorded whether or not progress is being made.

Notes of the formal 1-2-1s should be recorded, agreed and signed by both the individual and the line

manager.

At all stages the individual is to be advised of the services of the Employee Health Services and it should

be recorded that these were offered.

If at the end of the agreed time for the improvement to be achieved the individual is performing to a good

level, then they are removed from the process once they have shown they can sustain this performance

level for a further four weeks.

It is accepted and must be recorded that as the individual has proven they can perform at a good level any

future failing may be viewed as a conduct issue (subject, of course, to consideration of any mitigating

factors).

Back to top

The formal process stage two

At the end of the agreed timescale (no more than 13 weeks) if the individual has failed to close the

performance gap or show substantial evidence of closing the gap, then the first line manager will call the

individual into a formal meeting to discuss the consequences of their failure to improve.

The consequences will include automatic progression to stage two.

The second line manager becomes involved, and signs off the action plan.

The second line manager monitors progress over 13 weeks at their regular 1-2-1 with the first line

manager.

The first line manager continues to hold regular (at least monthly) 1-2-1s with the underperformer.

At each meeting it should be recorded whether or not progress is being made.

Notes of these formal interviews at stage two must still be recorded and signed by the line manager who

maintains the responsibility for holding 1-2-1s with the underperforming individual.

During the second stage, if the individual improves their performance to a good standard then they are

removed from the process once they have shown they can sustain this performance level for a further four

weeks.

(It is accepted and must be recorded that as the individual has proven they can perform at a good level

any future failing may be viewed as a conduct issue subject, of course, to consideration of any mitigating

factors.)

Back to top

Final interview (consideration of dismissal)

If after this further 13 weeks (i.e. 26 weeks since the individual was formally placed on the process) the

individual has failed to close the performance shortfall or show substantial evidence of closing the gap,

then the individual will be formally invited to an interview with the second line manager. The second line

manager will consider all of the available evidence and will make a decision regarding the individual’s

future employment with Post Office Ltd. At this interview the individual has the right of representation as

previously detailed.

Any mitigating factors must be taken into consideration.

The second line manager will take into account the documented evidence from both the first and second

stage of the formal process and will make a decision whether to dismiss or to consider an alternative

action such as reduction in grade, or a move to an alternative role.

The individual will be notified of the second line manager’s decision in writing with the reasons for their

decision clearly explained within ten working days.

Back to top

Appeal

There will be the right of appeal by the individual to a trained appeals manager who will undertake a

rehearing of the case.

Appeals will be managed to the principles applying to the appeals processes within Post Office Ltd, the key

principles being:

• the appeal is conducted out of the reporting line

• the appeal is a complete rehearing of the case

• the appealant has the right to representation (as previously detailed) and to see all documentation

relating to their case

Back to top

Performance and Development Review marking

The marking at the Performance and Development Review round must not be unexpected; as 1-2-1s

during the year should have identified that an individual’s performance was falling short of good. Those

individuals marked as critical will be automatically placed on the process. Individuals receiving a two

marking will be placed on the process at the line manager’s discretion.

Back to top

Right to representation summary

At 1-2-1s NO

Formal interview at the start of the process YES

1-2-1s to monitor action plan progress at stage one NO

Decision interview at the end of stage one YES

1-2-1s to monitor action plan progress at stage two NO