BSBMGT502 Assessment 2

Simulated business - Australian Hardware

Performance Management Policy

Purpose The development and progress of individual employees

is fundamental to Australian Hardware’s future
performance. In addition to providing the opportunities
for professional development, Australian Hardware
aims to help individuals by monitoring and supporting
them in their personal growth and development.
The aims of this policy are to ensure:
● employee development opportunities are
recognised and implemented efficiently and
effectively

● consistent employee development practices and

principles are applied across the organisation

● employees are developed systematically on the

basis of defined needs and that development
undetaken is cost-effective and meets agreed
standards.
Scope The scope of this policy covers the performance
management process by employees and contractors of
Australian Hardware.
Responsibility Responsibility for the implementation of this policy
rests with managers of employees at Australian
Hardware. Further information on roles and
responsibilities is discussed within this policy.
Relevant This policy is guided by the procedures set by industrial
legislation law, awards and employment agreements that apply to
Australian Hardware. Among others, they include:
● Privacy Act 1988 (Cwlth)

● Anti-discrimination Act 1977 (NSW)

● Fair Work Act 2009 (Cwlth).

Updated/ 20/09/2013 – Mary Chu (COO)
authorised
Roles and responsibilities
Managers will:
● carry out biannual formal performance review discussions

● monitor individual performance throughout the year, recording key

events, observations of importance which relate to the performance,
both positive and negative

● refer to these performance management guidelines when carrying

out tasks related to performance management, such as goal setting,
KPI setting, allocating work and work plan development

● Consult with employees for input on goals and KPIs

● use the performance management documentation to record formal

and informal performance reviews

● provide employees with the opportunity to participate and contribute

to their professional and personal development

● provide employees with access to training and development, as

reflected in the individual’s development plan

● provide employees with coaching throughout the review period

● allow employees to communicate their career development goals

● ensure employees complete their responsibilities in accordance with

the performance management policy and process.

Employees will:
● participate in the formal review discussions openly and honestly

● complete their personal assessment and provide it to the manager as

requested

● contribute their thoughts on both positive and negative performance

as assessed by their manager

● participate in identified training and development plans as agreed

with their manager

● provide information and documentation as requested by their

manager relating to their performance and activities throughout the
assessment period.
To conduct performance review: Guidelines
The employee’s performance will be monitored and evaluated regularly
throughout the year. The performance review encompasses three
elements:
● an annual formal review discussion

● a six-month follow-up discussion

● continuous monitoring of the employee’s performance.

These elements feature in the following process.

1. Goal setting and work planning

Goal setting and work planning is to be undertaken in consultation
with affected managers, teams and individuals on the following
basis:

● KPIs, activities and targets are to be set with reference to the

relevant sections of the organisation’s operational plan and position
descriptions

● work planning takes into account specific capabilities and input from
employees.

2. Annual discussion
The annual discussion is a key step in the performance review process.
Essentially, this step involves compiling all the information collected and
assessed throughout the year relating to the employee’s performance.
However, there should be no surprises in this discussion; it is merely a
summary and review of the informal and formal reviews conducted
throughout the year.
The key elements of the annual discussion are to:
● reflect on performance during the year

● clarify key responsibilities of the role and review the job description

● discuss successes as well as areas for improvement

● set agreed targets and performance standards for the next six
months

● agree on key areas of development for effective performance in the

role.
3. Documentation
The performance review documentation is important for recording the
standards, targets and development plans that are agreed upon during the
performance review process. It is important to use the correct forms to
maintain the integrity of the information, and to help the manager and
employee ensure that the review is completed correctly.

4. Timing
Employee performance is to be formally reviewed every 12 months with a
follow-up review six months into the financial year. A new plan should be
completed at each annual appraisal discussion.

5. Six-month follow-up discussion

The follow-up review provides an opportunity for managers and employees
to re-visit targets, standards and development plans to:
● establish that progress is on track

● identify changes impacting on the achievement of targets and

standards

● discuss development plan progress or establish development plan

● modify standards and targets, if required.

Flow chart of the performance review process

Prepare for Prepare for the performance appraisal

Appraisal following work planning processes

Performance Meet and discuss past performance, goals,

Appraisal training needs, plan for the future, etc.

Appraisal is documented
Document and signed by employee
and supervisor

Forwarding original to
Endorse manager and/or HR for
review and copies

Manage Ongoing coaching and performance

monitoring
Performance
between reviews

Scheduledissues
Misconduct or serious performance performance appraisal due

Disciplinary Disciplinary action is

Action undertaken and resolved
Assessment 2 BSBMGT502

Revised policy or procedures for performance management based from

the scenario
Make amendments to the performance management system that appropriately
address the identified deficiencies for the scenario business.
For example, the amendments addressed the need for:

● ongoing feedback
Ongoing feedback is about to have an opportunity between managers and
the employees to get communicate one another towards goals or with the
target and to improve with the employee’s progression. There are no rating
systems in ongoing feedback as it forms to develop employee’s
performance or progression that needs to be develop.

 more engagement by managers

Managers and leaders must get to know their people, every interaction
with the employee has the potential to influence his involvement and
inspire discretionary efforts. How leaders manage their employees can
substantially influence the level of involvement in the workplace. Following
the five strategies that organizations can use to help build the
constituency of the employees involved

1. Use the right employee engagement survey.

2. Focus on engagement at the local and organizational levels.

3. Select the right managers.

4. Coach managers and hold them accountable for their employees' engagement.

5. Define engagement goals in realistic, everyday terms.

● rewards and recognition
Companies use reward and recognition to motivate employees to put their
best work on it as they got the rewards if they do their best on work. In
another word, it is a part of a compensation for the employees whoever
carry their role descriptions and fulfil their goals. The prizes also can be
given to the team-based achievements or to meet project-based targets.

● focus on development and advancement of employees

The employee’s performance will be monitored and evaluated regularly
throughout the year. The performance review encompasses three
elements:
- an annual formal review discussion
- a six-month follow-up discussion
- continuous monitoring of the employee’s performance.
Training session documentation
1. Introduction to the main features of the performance management system
in place, including:

i. goal-setting and performance measurement processes

Establishing goals and planning work must be done in consultation with
managers, teams and affected individuals based on: KPIs, activities and
targets must be determined by referring to the relevant part of the
organization's strategic goals / operational plans and a description of
the work planning position taking into account the special abilities and
input of employees.

ii. formal and informal feedback

Formal feedback consists of formal performance reviews or meetings
while informal feedback is communicated in daily interactions or
regardless of formal mechanisms. Time dimension. Formal feedback is
planned in advance and is systematically scheduled into the
organization's official procedures

iii. performance appraisals

Performance appraisal is the process of evaluating and documenting
employee performance with a view to improving work quality, output
and efficiency. Performance appraisal performs three important
functions in a company.
 They provide feedback to people about their overall contribution
to a period.
 They identify development needs and opportunities for
improvement.
 They help inform salary and bonus reviews.

iv. monitoring training and development

The employee’s performance will be monitored and evaluated regularly
throughout the year. The performance review encompasses three
elements:
 an annual formal review discussion
 a six-month follow-up discussion
 continuous monitoring of the employee’s performance.

v. recordkeeping needs and requirements

It is important to evaluate individual performance to record standards,
targets and development plans agreed during the performance review
process. It is important to use the correct forms to maintain the
integrity of information, and to help managers and employees ensure
that the review is completed correctly.