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Performance management

Last updated July 2023

This chapter explains how to effectively performance manage your employees and ensure you do not breach any laws while doing so.

What is performance management?

Definition: Performance Management

Performance management is the process of evaluating and managing an employee’s performance to ensure it is consistent with your business’ objectives, and with the specific goals and standards of that employee and their role.

Performance management involves:

  • identifying performance standards;
  • providing feedback and reviewing employees’ performance; and
  • managing poor performance, including:
    • counselling employees; and
    • disciplining employees where there is continued poor performance or conduct, or where such performance or conduct is unacceptable.
Important: Any management action you undertake – including performance management – must be reasonable and conducted in a reasonable way, i.e. reasonable management action.