Student’s Name

  • Category:
    Business
  • Document type:
    Case Study
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    980

6PERFORMANCE MANAGEMENT

Performance Management Resister Gets Job Back

  1. How was Heinz’s approach to performance management invalid in relation to Moretti’s job?

It is evident that Heinz’s approach to performance management with regard to Moretti’s job was invalid. Even though Heinz noted a low score in performance management as a reason of subjecting Moretti to an independent performance management evaluation and subsequent dismissal, it is worth noting that the decision contravened the requirements of the Fair Work Act 2009. The Act specifies the factors that qualify an employee dismissal process to be unjust, unreasonable, or harsh. Even though employee underperformance is a valid reason for considering dismissing an employee, it is evident that the company did not give Moretti an opportunity to respond to the claim. Instead, the retail general manager had already notified Moretti to resign or face the individual performance management plan that would see him get kicked out of the company. The case reveals a contravention of one of the Act’s requirements that emphasise on the need of the company to provide the employee with the opportunity to respond to the reason for dismissal (FWO, 2016).

The employer also contravened the requirement of the Act by refusing to give Moretti the opportunity of defending his position by finding a support person that would help in discussing matters associated with the dismissal. In the event of decisions that relate to unsatisfactory performance on the part of the employee, the Act requires that the employer should warn the employee about the reason prior to deciding to dismiss the employee. The dismissal of the employee should only arise in the event that the employee fails to address the notable issues of concern (FWO, 2016). From the factors mentioned above, it is proper to argue that Heinz’s approach was invalid since the company targeted to relieve Moretti off the management position rather than solve the crisis in question.

  1. How was its approach unreliable?

Apparently, Heinz’s approach towards dismissing Moretti was unreliable since it does not follow the standard procedure of dismissing an employee. The standard approach necessitates the use of a notice of termination of employment that states the reason for the termination, the date of termination and the payments due to the employee following the termination. The case is an example of an unreliable job termination. Instead of notifying Moretti regarding the possible loss of the management position, the company through the general retail sales manager had decided to relieve Moretti off his management position based on the performance concerns that the firm had noticed in the department. Therefore, the approach is unreliable because it is a case of constructive dismissal where Heinz has decided to breach the requirements of the employment contract (ELC, 2015).

As a result, it was proper for Moretti to pursue the claim regarding the breach of his contract at the company since Heinz’s actions contravened the requirements of the employment contract. The unreliability of the approach also reclines on the fact that the company forced Moretti to resign. As a result, the resignation was not voluntary. The approach also proves to be unreliable since it does not provide convincing arguments that Moretti’s actions were responsible for the poor performance of company. From the case, it is evident that Heinz is unable to prove that Moretti’s actions or poor performance at the workplace was responsible for the performance issues that the company was facing at the moment. The inability of the company to dispute Moretti’s evidence of a private meeting with the retail general manager that notified him of the impending mandatory resignation following the individual performance management also implies that the approach was unreliable.

  1. Identify three ways in which the Heinz system could be improved

The introduction of individual assessment at Heinz Ltd is one of the most appropriate improvements in the performance management system of the company. It is inappropriate to evaluate the performance of all the employees and assign one score to all employees as is the case in the company. This explains the reason why Heinz is unable to convince FWA that Moretti’s underperformance is responsible for the performance concern in the company. Individual assessments can also entail the use of individual performance evaluation sheets or forms to the employees (Josh, 2012). The different opinions given by the employees to the identified performance metrics would enable the management to assess their individual performances.

Instead of relying on the immediate supervisor to the employee; or the employee’s boss that oversees his actions and duties at the workplace, evaluating the performance of an employee also requires considering the views of the other stakeholders such as clients and customers pertaining the employee in question (Pulakos, 2004). This is necessary especially in the case of Heinz since customers and clients are the main source of performance any performance concerns considering the fact that Moretti was working under the sales department.

The third area of improvement in the performance management system of Heinz Ltd is the specification of the significant roles played by each employee towards the attainment of the goals of the company (Josh, 2012). As a matter of fact, explaining to the employees the contribution of their input to the success of the company is a guarantee of increased input on the part of the employees. In essence, specifying the roles to the employee imparts sense into the mind of the worker thereby reminding him or her about the significance of his or her input to the success of the company.

References

Employment Law Centre of WA. (2015). Factsheet-Constructive dismissal: when you are forced to resign.

Fair Work Ombudsman. (2016). Australia’s new workplace relations system. Retrieved from: https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/minimum-workplace-entitlements/ending-employment

Josh. (2012). 5 Ways to Improve Performance Management. CoursePark Learning Networks. Retrieved from: http://www.coursepark.com/blog/2011/09/5-ways-to-improve-performance-management/

Pulakos, E. D. (2004). Performance Management: A roadmap for developing, implementing and evaluating performance management systems. Society for Human Resource Management (SHRM) Foundation.