Manage performance management systems

This unit describes the performance outcomes, skills and knowledge required to design, implement and oversee performance management systems. It includes developing and managing ongoing performance feedback strategies and conducting formal performance feedback meetings. The unit also includes specific intervention associated with under-performance or misconduct.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.


This unit applies to individuals with a well-established theoretical knowledge of human resources management and performance management who are proficient in using a range of specialised technical and managerial techniques to plan, carry out and evaluate their own work and the work of a team. They may or may not have staff who report to them, but they are authorised to establish an effective performance management system for an organisation.

Elements and Performance Criteria



1. Develop performance management systems

1.1. Analyse strategic and operational plans to identify relevant policies and objectives for performance management system

1.2. Design methods and processes for line managers to develop key performance indicators for those reporting to them

1.3. Develop organisational timeframes and processes for formal performance management sessions

1.4. Ensure performance management systems developed are flexible enough to cover the range of employment situations in the organisation

1.5. Consult with key stakeholders about the system and agree on its features

1.6. Gain support for the implementation of the performance management system

2. Implement performance management systems

2.1. Train relevant groups and individuals to monitor performance, identify performance gaps and manage talent

2.2. Ensure that line managers are monitoring performance regularly and that intervention occurs to address poor performance and acknowledge excellent performance

2.3. Work with line managers, where necessary, to assist them to address poor performance according to organisational policies and legal requirements

2.4. Support line managers to counsel and discipline employees who continue to perform below standard

2.5. Provide support to terminate employees who fail to respond to interventions, according to organisational protocols and legislative requirements

2.6. Recognise excellence according to organisational policy

2.7. Ensure recorded outcomes of performance management sessions are accessible and stored according to organisational policy

3. Coordinate formal feedback processes

3.1. Develop performance feedback plans by relevant managers or team leaders and lodge them with human resources staff

3.2. Provide training and assistance to managers or team leaders participating in the feedback process

3.3. Agree on and sign plans for performance improvement and individual learning and development

3.4. Establish processes to deal with problems or grievances that arise from the performance feedback

3.5. Make specialist advice on career development available to participants in the process

4. Coordinate individual or group learning development plans

4.1. Contract appropriate providers for performance development, as identified by the plans, according to organisational policy

4.2. Design learning and development plans to contribute to the development of a learning organisation

4.3. Deliver learning and development plans according to agreed timeframes and ensure they deliver specified outcomes

4.4. Monitor learning and development activities to ensure compliance with quality assurance standards

4.5. Negotiate remedial action with providers where necessary

4.6. Generate reports to advise appropriate managers on progress and success rates of activities

4.7. Regularly evaluate and improve all aspects of the performance management system, in keeping with organisational objectives and policies

Required Skills

Required skills

analytical skills to ensure system is practical and gathers necessary information

communication and conflict-management skills to deal with grievances, disputes and disagreements that may arise

leadership skills to obtain support and endorsement of the performance management system across the organisation

training, coaching, mentoring and facilitation skills using a range of methods to cater for differences in learning styles, to ensure managers are competent to deliver the systems

Required knowledge

characteristics of a learning organisation

equal employment opportunity, diversity and anti-discrimination policies and legislation

grievance procedures

models for giving feedback and options for skill development

options in the design of performance management and talent management systems

role of performance management in relation to broader human resources and business objectives

Evidence Required

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

development and implementation of:

a performance management system that aligns with a human resource strategy

a formal feedback process

individual or group learning development plans.

Context of and specific resources for assessment

Assessment must ensure access to appropriate documentation and resources normally used in the workplace.

Method of assessment

The following assessment methods are appropriate for this unit:

assessment of reports on performance management and performance development systems

direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate

observation of demonstrated techniques in performance management

observation of presentations

review of plans for performance improvement and individual learning and development

review of reports generated to advise appropriate managers on progress and success rates of activities

oral or written questioning to assess knowledge of models for giving feedback and options for skill development and talent management.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBHRM507A Manage separation or termination.

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Employment situations may include:

casual and contract work

full-time and part-time work

marketing and sales

office and clerical

physical labour



technical or scientific


warehousing and transport.

Performance gaps may include:

costs above budget

disruptive conflict

external interference

failure to meet strategic or operational objectives

low or high turnover of labour

productivity below budget

quality, OHS or environmental failure

work bans or go slow.

Intervention may include:




giving praise

recognising good performance.

Individual learning and development may include:

enhancement of knowledge


personal development

project work

skills training

visits to other workplaces.

Appropriate providers include:


external and internal providers



Unit sector

Competency Field

Workforce development - human resource management

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.