Dealing with poor

performance in
organisations
INDU1106 Lecture 8

Dr Angie Ratcharak
p.ratcharak@greenwich.ac.uk
 **This lecture is related Q2c in the case study assignment:
Disciplinary process

Aims of the session

• The conceptualisation of underperformance
• Different reasons to explain underperformance
• How to manage underperformance:
 Informal techniques
 Formal techniques
Conceptualising Underperformance Fuchs (2010)
Workplace performance: Goal-directed behaviours that can be either
 Task-oriented behaviour, relating to particular jobs/roles
 Context-orientated behaviour: Discretionary behaviour or
Corporate citizenship
Underperformance: Dysfunctional and negative behaviour
 Counterproductive Work (CPW)
 Work Withdrawal Behaviour (WWB)
 The Scope of Underperformance
Survey data (e.g. Suff, 2011) reveal that underperformance
is perceived as a ‘major problem’, ‘an organisational issue’
or ‘an issue to some extent’.

- Absence
- (In)capability
- Inappropriate attitudes/behaviours towards colleagues/customers
- Failing to meet objectives
- Bad time-keeping
- Failing to meet deadlines
- Disregarding workplace norms and rules
- Insubordination
- Low output
How we can explain underperformance
Underperformance can be explained as:

 An individual worker’s problem

 The complex relationship between trust, commitment and

motivation

 A structural labour problem.

 Underperformance as
an ‘Individual Worker Problem’

Early motivation theories:

• Scientific management
• Human relations/Neo-human relations
The impact of personality traits on performance:
• Type A
There are also Type C and Type D personality as well now!
• Type B https://www.youtube.com/watch?v=rSKkHJdyFO8&ab_channel
=TheDoctors
 Underperformance as
the complex relationship between
Trust, Motivation and Commitment
• Trust is an antecedent of organisational commitment.
• Trust is associated with motivation.
• Trust is a multifaceted concept:
on an individual level as an attitude
on an organisational level as ‘systems trust’

**This view of underperformance can be linked to Psychological

Contract we learnt in Week 3 lecture to create Mutual Trust between
employers and employees, helping increase motivation and
commitment**
 Underperformance as
a structural labour problem

 A power struggle for control over production between the

forces of capital and of labour.

 The contested nature of the employment relationship.

 Ideology and the relationship between capital and labour.

 Applying the unitary, pluralist and radical perspectives to the

employment relationship.
Reasons for Poor Performance
1) Ability/Aptitude.
Can’t do it - Intellect, Personality, Physical makeup.

2) Environment.
Could do it if circumstances were right-Resources, Supervision,
Support, Relationships, Instructions.

3) Attitude.
Doesn't want to do it - Motivation, Enthusiasm, Punctuality.
 How to manage underperformance
Managing underperformance is based on two broad assumptions:
 Employees lack the necessary skills and abilities.
 They are unwilling to perform at the required level.

The role of line managers is to manage under-performing employees

• However, they have lack of confidence and competence in
managing under-performance.
• Line managers often receive training in managing performance but
are less well versed in: managing difficult conversations, coaching
and conflict management.
Informal Techniques
 Informal Techniques for Managing
Underperformance 1:
Coaching
The importance of informal regular feedback
Coaching involves directing, motivating and rewarding employee
behaviours:
• Interventions designed to develop appropriate skills, abilities
and attitudes
• Successful coaching depends on skilled ‘practitioners’ and an
organisational culture that is supportive of the philosophy of
coaching (Links to Week 7 lecture about Learning)
 Informal Techniques for Managing
Underperformance 2:
Mentoring
Mentoring:
• There is distinction between coaching and mentoring.
• Mentoring is a proactive intervention underpinned by a more
informal long-term relationship between mentor and mentee.
• More likely to be used with ‘new’ or ‘less experienced’ employees.
Formal Techniques
1. Managing Underperformance
Using Capability Procedures
Employees are encouraged to achieve an acceptable level
of performance:
 use of informal interventions
 individual performance improvement plans.
Formal capability interventions:
 formal meetings between employee and manager(s)
 formal / final written warnings / dismissal.
Capability procedures must be fair and transparent.
2. Managing Underperformance using
Disciplinary Procedures
An alternative way to manage underperformance:

• has a broader scope than capability procedures

• evidence gathering/possible suspension/formal hearing/possible

dismissal.
 2. Managing Underperformance using
Disciplinary Procedures (continue)
In the context of managing underperformance disciplinary
procedures function to:
 communicate acceptable standards of performance and conduct,
and the consequences of failing to meet these.
 reveal potential barriers to acceptable levels of performance and
conduct, and direct employees accordingly.
 enable employees to improve levels of performance or conduct
using agreed time-bound improvement plans.
 redress issues of performance and conduct without recourse to
employment tribunals.
CIPD (2012)
In short: Aims of Disciplinary Procedures

To bring matters to attention of employee and other parties (if

necessary).
To discover reasons for problems.
To prevent further problems.
To take corrective action.
To clarify future standards and expectations.
 PERFORMANCE MANAGEMENT MODEL

Counsel *Agree Agree

employee Standards* Objectives

Do they
Review
improve?
performance
NO
Sanctions NO
or disciplinary Is performance
action Satisfactory?
NO Re-assign YES
Do they or dismiss *Maintain
improve? Performance*
YES
Categories of Disciplinary Breach
 Capability:
Poor work quality, low productivity, frequent absence.

 Conduct:
Lying, fraud, fighting, stealing, poor interpersonal relationships,
negligence, poor timekeeping, under influence of drugs or alcohol,
sexual, religious or racial harassment, inappropriate dress or appearance,
“unofficial” and “official” industrial action. .....(and now- misuse of
social media)
Effective Disciplinary Procedures
• Suitable and reliable evidence.
• Suitable and reliable documentation.
• Suitable and timely communication.
• Appropriate timescales for action.
• Accurate records of previous disciplinary actions.

See ACAS guidelines on Moodle.

Overview of Disciplinary
Process Informal verbal
Warning

Formal verbal
Warning

First written
warning

Summary Second written

Dismissal warning

Dismissal
 The disciplinary process
The disciplinary process
• Informal stage
• Written warning
• Final written warning
• Dismissal
Warnings can help to:
 improve behaviour and
 conduct set standards
Use warnings constructively and not punitively
 Explore need for help and development
 Warning should have a defined ‘life’
 Level should reflect seriousness of the issue
 Required improvements and potential consequences should be made clear
Stages in Disciplinary Interview Process
1) Explaining the Management Position.
• Background and purpose.
• Interview structure.
• Reason for dissatisfaction.
2) Understanding the Employee’s position
• Seeking information/explanation.
• Seeking a reaction/viewpoint.
Stages in Disciplinary Interview process
(continue)
3) Focusing on the problem
• Both parties agree?
• Discuss solutions.
4) Further focusing on the problem
• Employee disagrees.
• Aim to change attitude by persuasion.
• Aim to change attitude by disapproval or sanctions.
Final stage in Interview process
5) Finish/Disengagement
• Summary of proceedings.
• Action to be taken.
• Recording of proceedings.
6) Follow-up letter
• Details as above.
7) Appeal
• Every good disciplinary procedure must ensure provision for
“appeals”.
Key Elements of Procedural Fairness
• There should be a reasonable investigation into the facts
• The employee should be aware of the allegations and the evidence
against them
• The employee should know what the possible outcome may be
• The employee should have a chance to respond
• The employee should have access to representation (accompaniment)
• The manager taking the decision should not have conducted the
investigation
• The employee should have the right to appeal
Discipline in practice: Example 1
A valued and generally reliable employee is late for work on a number of
occasions causing difficulty for other staff who have to provide cover. You talk to
the employee on his own and he reveals that he has recently split up with his wife
and he now has to take the children to school on the way to work. You agree a
temporary adjustment to his start and finish times and he undertakes to make
arrangements for ‘school run’ cover which solves the problem.
ACAS (2020)

You decide that formal disciplinary action is not appropriate.

Discipline in practice: Example 2
A member of staff in accounts makes a number of mistakes on invoices to
customers. You bring the mistakes to his attention, make sure he has had the right
training and impress on him the need for accuracy, but the mistakes continue. You
invite him to a disciplinary meeting and inform him of his right to be
accompanied by a colleague or employee representative. At the meeting he does
not give a satisfactory explanation for the mistakes so you decide to issue an
improvement note setting out: the problem, the improvement required, the
timescale for improvement, the support available and a review date.
ACAS (2020)
You inform him that a failure to improve may lead to a final written
warning
 ABSENCE IN THE WORKPLACE
• Most companies have ‘Absence Management Strategies’ e.g. Return to
work interview, penalties for persistent or unauthorised absence
• CIPD (2020) survey report shows that sickness absence is at its lowest (5.8
days on average per employee per year) in the 20-year history of the
survey.
• Many organisations are treating sickness absence related to COVID-19
outside of their normal sickness absence reporting system. Employees
may need to self-isolate multiple times and should not be unfairly
penalised as part of a trigger system that uses trigger points to highlight
absence patterns that could be of concern.

Source: CIPD (2020) ABSENCE MANAGEMENT SURVEY

Managing Absence
• Absences should be investigated promptly and the employee asked to give an
explanation.
• Absences may mask wider conflict
• Mediation and informal resolution may be appropriate
• Unauthorised absence should be dealt with as a disciplinary issue
• If the absence is related to a disability, the employer should consider reasonable
adjustments
• Employers could also consider whether more flexible working arrangements
may help the situation
• Employees should be told what improvement is expected and warned of the
likely consequences if it does not happen
Managing Poor Performance
• Confident and competent line managers are critical to managing
poor performance effectively
• Formal procedures should be a last resort
• Regular review of performance and structured appraisals will help
to identify and resolve problems
• The emphasis should be on improving performance and repairing
the employment relationship
• Expectations must be made clear – any required improvements and
time-frame for review should be made explicit
• Specialist capability procedures are often more effective than
disciplinary procedures in managing poor performance
The use of Grievance Procedures.
• Usually developed alongside Disciplinary procedures (similar
processes with timescales, appeals etc).
• Can be used to bring a grievance against individuals, groups or the
organisation.
• May be developed to include “whistleblowing” acts under the Public
Interest Disclosure Bill 1998.
• Some employees prefer to operate outside “official” procedure e.g.
sexual harassment.
 Grievances in practice
You are the owner of a small firm. An employee has been complaining that she
is being given too much work and can’t complete it in time. You have told the
employee that her predecessor had no problem completing the same amount of
work and that things will get easier with experience. The employee is not happy
and puts her grievance to you in writing.
You invite the employee to a meeting to discuss the grievance and inform her of
her right to be accompanied. At the meeting you discover that the employee is
working on a different computer from her predecessor. The computer is slower
and uses an old version of the software required to carry out the work. You
agree to upgrade the software, provide training and to review progress in a
month. You confirm what was agreed in writing and inform the employee of her
right to an appeal meeting if she feels her grievance has not been satisfactorily
resolved.
Key Takeaways
 The conceptualisation of underperformance: Dysfunctional workplace behaviour
(CPW and WWB)

 The extents to which underperformance is problematic

 Explaining underperformance: Individual, trust/commitment/motivation, or

structural labour problems

 Managing underperformance:
 Informal techniques: Informal feedback, coaching, and mentoring

 Formal techniques: Capability procedures and Disciplinary procedures

Essential reading list
From our core textbooks – e-books available on Moodle

 Hutchinson (2013) - Chapter 9 and 10

 Armstrong (2022) – Chapter 14

 See more materials on Moodle Week 8