Managing Employee Performance

One of the reasons companies have processes and human resources departments is because there are employment laws. This resource starts with an employee dilemma. You will be introduced to various performance issues and employee rights as you read.

Handling Performance

Options for Handling Performance Issues

Our last phase of dealing with employee problems would be a disciplinary intervention. Often this is called the progressive discipline process. It refers to a series of steps taking corrective action on nonperformance issues. The progressive discipline process is useful if the offense is not serious and does not demand immediate dismissal, such as employee theft. The progressive discipline process should be documented and applied to all employees committing the same offenses. The steps in progressive discipline normally are the following:

  1. First offense: Unofficial verbal warning. Counseling and restatement of expectations.
  2. Second offense: Official written warning, documented in employee file.
  3. Third offense: Second official warning. Improvement plan (discussed later) may be developed. Documented in employee file.
  4. Fourth offense: Possible suspension or other punishment, documented in employee file.
  5. Fifth offense: Termination and/or alternative dispute resolution.


University of Iowa's Progressive Discipline Process

The chart below shows the typical progressive discipline process at the University of Iowa:

Counseling and Restatement of Expectations

Counseling and Restatement of Expectations

Counseling by the immediate supervisor is the initial step to mentor or coach performance.

  • Meet with the staff member and affirm expectations regarding performance.
  • Discuss the performance deficit or behavioral concern.
  • Provide a timeline and resources for improvement.
  • Report consequences for no improvement.
  • Document for an anecdotal file.
Written ReprimandWritten Reprimand

 

At this time, the immediate supervisor may want to consult a Human Resources representative. After an investigation, follow the procedure outline above for the counseling process, with the exception of providing documentation to the employee in a letter of reprimand. The letter should outline previous informal efforts and the current problem. Send copies of the signed letter to the department personnel file, proper University authority, and the respective Union, if applicable.

Short Suspension (or Equivalent)*

Long Suspension (or Equivalent)*

Suspension or Equivalent

 

Fully investigate the concern, followed by discussion with the employee. Summarize previous progressive discipline and the current problem, and specify the timeframe for suspension in writing. Identify further discipline and possible termination as a potential consequence for not meeting and maintaining standards for improvement. Provide copies as for the written reprimand.

TerminationTermination

 

Termination may be necessary when discipline is not successful in improving performance. Review the work history and record of progressive discipline with proper University authority. Schedule a final meeting with the employee and conduct a meeting at which a letter of termination is provided. If necessary, the termination notice may be sent via certified mail. Provide copies as for previous disciplinary measures.

*Salary reduction cannot be imposed on professional and scientific and faculty staff, due to union contracts


The Seven Tests of Just Cause

The seven test[s] of just cause represent a practical and effective way to determine whether a proposed disciplinary action is firmly and fairly grounded. It is fair to assume that these tests will be applied by arbitrators in the event that disciplinary actions are challenged, and it is therefore good practice to apply them prospectively when considering the imposition of progressive discipline.


Seven tests:

  1. Notice

    • Prior to imposition of discipline, employee must have notice of rules and expectations.

    • Establish through:

      • New employee orientation

        • Orientation checklists
        • Receipts for departmental handbooks
    • Periodic reinforcement/coaching

  2. Reasonable Rules and Orders

    • Cannot be inconsistent with collective bargaining agreement(s)
    • Cannot be arbitrary or capricious
    • Must be reasonably related to business necessity

  3. Investigation

    • Must be thorough; consider all evidence, pro and con.

    • Must be timely:

      • Should be completed expeditiously
      • Occurs before discipline imposed
    • Give accused opportunity to respond (Loudermill hearing).
    • Allow union representation (Weingarten rights).

  4. Fair Investigation

    • Result must not be forgone conclusion.
    • Test assumptions/bias.

  5. Proof

    • Level of proof is normally substantial evidence.
    • Greater proof required for more serious allegations.

  6. Equal Treatment

    Equal treatment must be balanced against just application:

    • Rules must be applied even-handedly and without discrimination.
    • Rules must be applied justly.
    • Don’t blindly apply the same rule to all situations - managers/supervisors are expected to exercise judgment.

  7. Penalty

    • Must be fair, not arbitrary and capricious, or based on emotional response.
    • Factor in length of service, prior performance history, and previous progressive discipline.

Another option for handling continued infractions is to consider putting the employee on an improvement plan, which outlines the expectations and steps the employee should take to improve performance. The plan is detailed and outlined and ensures both parties understand the specific expectations for improvement. If the improvement plan does not work, a progressive discipline process might be used.

Figure 10.2 Sample of a Performance Improvement Plan

Sample of a Performance Improvement Plan

Whichever direction is taken with disciplining of the employee, documentation is key throughout the process to avoid wrongful termination issues.