Many employers can find the processes of performance management and disciplinary action challenging to follow. Before either process even begins, it can be hard to navigate the difference between performance and conduct. If you want to reach a satisfying outcome, you’ll need to pick the right process for the problem you’re facing.
If you’re required to take action with an employee, it helps to have the facts at your fingertips. This article breaks down the key differences between performance management and disciplinary action, giving you the confidence that you’re using these two important processes appropriately.
What is disciplinary action?
If an employee is behaving improperly, an employer may need to escalate their concerns through formal disciplinary action in the workplace.
Employers should implement policies outlining the code of conduct so all employees know what constitutes acceptable behaviour. These policies should be made available to all employees and the employer should be consistent in enforcing them.
Disciplinary action is usually taken to address misconduct, which is defined as behaviour that is contrary to the terms of an employment contract or breaches a company’s policies and procedures.
Disdisciplinary action examples and misconduct
Misconduct is behaviour that is inconsistent with employee obligations or duties, as outlined by company policies.
Examples include:
- Unauthorised absences (including ‘sickies’)
- Repeated lateness
- Bad language
- Poor presentation
- Refusing to follow directives
- Misuse of company equipment
Serious Misconduct
Determining specific types of disciplinary actions relies on whether the issue is standard or serious misconduct. Serious misconduct can pose risks to the reputation, viability or profitability of a business, or even the health and safety of another person. Examples includes theft, fraud, harassment and assault.
Provided a fair process is followed, serious misconduct may give an employer the grounds for instant or summary dismissal, which means the employee is not provided with notice, or payment of notice in lieu.
Appropriate Standards of Behaviour
It should be noted that not all misconduct is clear and obvious. For example, getting into a fight with a colleague is clearly inappropriate behaviour in any workplace. However, expected behaviour when using company equipment may vary from business to business.
To remove any uncertainties, it’s crucial to ensure that you’ve implemented and consistently applied a thorough code of conduct. This will help you validate your position if an employee disputes an allegation of misconduct.
What is performance management?
Performance management is a process used to address underperforming staff. Underperformance occurs when an employee is not meeting the essential requirements of their role. If an employee is performing poorly (for example, failing to hit key performance indicators or fulfil the remit of their role), an employer may consider entering the employee into a performance management process.
As part of a fair process, the employer should identify the issue, inform the employee and provide further training where appropriate. The employer should put a plan of action in place to address the performance issues and to give the employee an opportunity to improve.
Performance management should only address the requirements of the role, not behaviour. Remember that misconduct is not the same thing as poor performance.
While the steps look similar, business owners often ask is performance management a disciplinary process, and it is vital not to conflate the two concepts.
Performance improvement plan vs disciplinary action
A performance management process may result in a performance improvement plan (PIP), though employers must clarify what a pip disciplinary action is when handing it to the worker.
A performance management process may result in further training or a performance management plan (PMP), or performance improvement plan (PIP), both of which give an opportunity for the employee to improve their performance.
A disciplinary procedure may not result in a behavioral management plan, since it is not an employer’s responsibility to ensure their employees act appropriately in the workplace. An employer’s duty is only to remind them of their expected behaviour and discipline them in an appropriate way if they fail to adhere to it.