Managing Underperformance

About this package

Managing Underperformance examines performance concerns as both a people issue and a business issue. It begins by distinguishing sustained underperformance from capability problems, misconduct, attendance issues and temporary dips in performance. Learners explore why the same visible problem, such as missed deadlines or repeated errors, may require different management responses depending on its cause. This helps establish when support, clearer expectations or accountability is needed before action is taken.

The package looks beyond individual behaviour to examine the conditions that can contribute to poor performance. These include unclear expectations, poor induction, skills gaps, low motivation, wellbeing concerns, weak line management, unrealistic workloads and workplace conflict. Accurate diagnosis is presented as the basis for a proportionate response: additional pressure or formal sanctions will not necessarily resolve a problem caused by inadequate support, competing priorities or a health-related barrier.

Early intervention focuses on preparing and conducting supportive feedback conversations, gathering evidence and recording agreed improvement actions and review dates. Learners consider when coaching, training, mentoring or adjusted objectives are appropriate, rather than moving directly to a formal process. The content then examines performance improvement plans, including clear standards, measurable objectives, realistic timescales, support measures and criteria for reviewing progress. The emphasis is on making improvement achievable while documenting what has been agreed and what happens next.

The final part addresses escalation to formal capability procedures and the need for fair, lawful and consistent handling. It covers natural justice, organisational policy, evidence and record keeping, alongside the responsibilities of line managers, HR and employee representatives. Ethical and equality considerations include recognising bias, considering reasonable adjustments and communicating transparently and respectfully. Reward, recognition and engagement are also considered in relation to motivation and improvement. Together, these topics help learners balance reliable performance standards with appropriate support and employee voice.

Who it’s for

This package suits line managers and HR or people professionals who support employees with performance concerns. It is also relevant to learners preparing for management or people-practice responsibilities.

What’s covered

1. Defining underperformance and related issues

   Distinguishes sustained underperformance from capability problems, misconduct, attendance issues and temporary performance dips. Explains the importance of agreed standards, clear expectations and a reasonable opportunity to perform.

2. Diagnosing root causes before taking action

   Explores why similar performance shortfalls can require different responses. Considers causes such as unclear expectations, poor induction, skills gaps, low motivation and wellbeing concerns, and the risks of treating every shortfall as a disciplinary issue.

3. Structural and relational causes of underperformance

   Examines how weak line management, unrealistic workloads, workplace conflict and damaged trust can affect performance. Encourages learners to identify organisational and working-environment barriers rather than assuming the employee alone is responsible.

4. Early intervention and feedback conversations

   Covers timely, proportionate intervention once a pattern or clear risk is evident. Learners consider how to prepare supportive conversations, use evidence, agree improvement actions and establish a review timetable.

5. Choosing appropriate development and support

   Explains how to match coaching, training, mentoring or adjusted objectives to the cause of a performance gap. Uses the distinction between inability and deliberate non-compliance to help learners judge whether development is the appropriate response.

6. Designing and reviewing performance improvement plans

   Covers written plans that specify what must improve, by when, with what support and how progress will be measured. Examines documentation, review criteria and the consequences of not achieving the required improvement.

7. Escalating to formal capability procedures

   Considers when informal support has not produced sustained improvement or when continuing informally presents too much risk. Explores formal capability processes, natural justice, organisational policy, evidence and record keeping.

8. Responsibilities of managers, HR and employee representatives

   Clarifies who owns day-to-day performance management, who advises on process and how employee representatives contribute. Examines how clear boundaries support consistency, accountability and employee voice.

9. Ethics, equality, reasonable adjustments and reward

   Addresses bias, discrimination, reasonable adjustments and respectful, transparent communication in performance management. Also considers how reward, recognition and engagement influence motivation and improvement.

Learning outcomes

By completing this package, learners can:

• Define underperformance and distinguish it from capability issues, misconduct, attendance problems and temporary performance dips, giving two workplace examples of each.
• Explain why diagnosing the root cause of underperformance matters by classifying at least five potential causes and summarising their implications for management action.
• Apply early intervention techniques by demonstrating how to prepare and conduct a supportive feedback conversation, record agreed improvement actions and set a review timetable.
• Analyse workplace scenarios to determine when coaching, training, reasonable adjustments or formal capability procedures are appropriate, justifying each decision.
• Assess a proposed performance improvement plan for clear expectations, timescales, support measures and review criteria.
• Evaluate the fairness and lawfulness of a hypothetical formal underperformance process against principles of natural justice, record-keeping standards and relevant organisational policy.
• Create a documented action plan to support an underperforming employee, including measurable objectives, required resources, monitoring points and evidence-gathering methods.
• Analyse the responsibilities of line managers, HR and employee representatives, comparing their contributions to consistency and employee voice.
• Assess ethical and equality considerations by identifying potential bias or discrimination, recommending reasonable adjustments where relevant and justifying transparent, respectful handling.

Frequently asked questions

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