Reasonable management action: save time, dollars and drama

When it comes to managing employee underperformance, knowing what constitutes reasonable management action can save you time, dollars and drama.

Picture this: your employee (let’s call him “X”) is not performing to your expectations: regularly arriving late for work, not meeting productivity or quality of work targets, failing to service customers, not collaborating with co-workers…could be anything. So you’d like to speak with X about your concerns.

But you have a feeling X might not respond positively to having his underperformance drawn to his attention. And you’re concerned that X’s response could be extreme: that he states you’re bullying him or that he heads to the doctor and claims some type of stress condition leading to a WorkCover claim for a mental injury.

So you put your conversation off. And just let X continue. With all the downsides that go along with that decision. Think this scenario doesn’t happen? Think again.

But here’s three words that can help alleviate your concerns: “reasonable management action”.

The law accepts that managers and employers may need to act if a worker is not doing their job well. They can take “reasonable management action” to:

• help the employee improve their work; or
• address poor performance or behaviour.

While a worker may feel bullied when an employer takes performance or disciplinary action, if this action is reasonable management action carried out in a reasonable way, the law does not define it as bullying.

When it comes to a claim for a mental injury, all such applications are examined by WorkCover to determine if it meets their criteria for acceptance. In Queensland, mental injury claims caused by reasonable management action – when this is taken in a reasonable way – are excluded from worker’s compensation.

As an employer, you have the right make management decisions relating to your workers: who to promote, who should attend a conference, when to restructure and so on.  Sometimes your management decision might involve addressing a worker’s performance and occasionally, the process around this can lead to a worker feeling uncomfortable…even to the extent of the employee claiming or developing a mental injury as a result of your process.

But if that mental injury is caused by reasonable management action, taken in a reasonable way, then they are not able to make a claim for bullying or to receive workers’ compensation.

It’s relevant to point out that the manner in which an employee  reasonable management action must also be “reasonable”. What defines “reasonable” is not be specific but generally, when deciding if the management action taken was reasonable, WorkCover will consider:

• the actual management action taken, rather than the worker’s perception of it;
• whether the decision was in line with the workplace’s established policies or procedures; and if not
• whether the action was reasonable in the circumstances.

Done well, management action should be seen to be fair and reasonable.  It’s less about being “perfect”, more fair, objective, and sensible…including in the eyes of an outside observer.

Planning a difficult conversation with one of your team? Picking up the phone and having a chat with Bare Bones Consulting to get your ducks in a row before you act could definitely be considered  “reasonable management action”. And smart. Look forward to hearing from you!