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'PolicyNumber:HR4.06EffectiveDate:1May2012PreparedBy:APHRApprovedBy:A.PatrickImbardelliAsiaPacificPolicyPERFORMANCEMANAGEMENTPage8of8POLICYPURPOSEInterContinentalHotelGroup(IHG)strivestocreateaninnovativeandstimulatingworkingenvironmentforallemployees.ThispolicywillprovideclearguidelinesonperformanceandbehaviourmanagementforIHGemployees.APPLICABILITY/SCOPEThispolicyappliestoallcorporateandhotelbasedpermanentemployees,contractors,casualemployeesandtemporaryemployeesofowned,managedandleasedhotelsintheInterContinentalHotelsGroupinAsiaPacific.Thisdocumentprovideinformationonperformanceandbehaviourmanagement.IHG’sapproachtomanagingperformanceandbehaviourmakeacleardistinctionbetween:·Unsatisfactoryperformance;and·MisconductPleasenoteitisnotwithinthescopeofthisdocumenttooutlineeveryscenarioofperformanceandbehaviourthatmayarise.GENERALPOLICYSTATEMENTIHGLineManagersareresponsibleformanagingtheperformanceandconductoftheiremployees.Thelinemanagerwillcommunicatetherequiredperformanceexpectation.Theywillalsotakepromptandfairactiontoaddressunsatisfactoryperformanceorunacceptablebehaviour.Anyemployeewhoissubjecttodisciplinaryprocedureshouldbetreatedfairlyandinaccordancewiththisprocedurewithanynecessarymodificationsinthecircumstance.Inparticular,theemployeewillalsobefullyawareofanyallegationmade,andgivenanadequateopportunitytorespondtoallegations.Refertheappendixintheseparateattachmenttothispolicyforaflowchartonunsatisfactoryperformanceandmisconduct.PROCEDURE(S)Asoutlinedinthepolicy.ADMINISTRATIVERESPONSIBILITYTheresponsibilityforthedevelopmentofandamendmentstothispolicyresideswithAsiaPacificCorporateHumanResources. PolicyNumber:HR4.06EffectiveDate:1May2012PreparedBy:APHRApprovedBy:A.PatrickImbardelliAsiaPacificPolicyPERFORMANCEMANAGEMENTPage8of8UNSATISFACTORYPERFORMANCEWhatisunsatisfactoryperformanceandwhendoesitapply?Unsatisfactoryperformanceisperformancethatfallsbelowacceptablelevelsofquality,quantity,timelinessandcosteffectiveness.Examples:·Failuretomeetdeadlines·Failuretoachievesetquotas/targets·Unsatisfactoryleveloferrors/defects/complaintsPerformanceimprovementsolutions:Performancemanagementmayinvolveoneormoreofthesestepsbelow:·Coaching/DevelopmentWhereanemployeenewtoarolerequiresguidanceinthedevelopmentoftheskills,knowledgeandexperiencenecessarytomeettherequiredperformancelevels.·CorrectiveCounselingAproblemsolvingdiscussiontoeliminatethebarrierstoperformancewhereanemployeeisadequatelytrainedandexperiencedyethasfailedtomeetrequiredperformancelevels.·RedirectionRedirectandrefocustheemployeewheretheylackclarityofunderstandingoftheirrole,responsibilitiesand/ortasks.Dothisbyidentifyingthe:·Mainrequirementsofthejobasclearlyandconciselyaspossible,and·PerformanceStandardsrequired.·PerformanceImprovementPlanTheseareshorttermgoalswhichareagreedwiththeemployeeandmonitoredregularlytomeasureandwhethertheemployeeiscorrectingitsperformanceissuesTheobjectiveoftheperformanceimprovementprocessistoeducateandcorrectemployeebehaviourand/orperformance. PolicyNumber:HR4.06EffectiveDate:1May2012PreparedBy:APHRApprovedBy:A.PatrickImbardelliAsiaPacificPolicyPERFORMANCEMANAGEMENTPage8of8InordertohelpmeasureandmonitorwhethertheemployeeiscorrectingtheirbehavioursometimesShortTermPerformanceObjectivesneedtobeagreedandputinplace.Keypointstorememberwhenagreeinganyobjectives:·Theobjectivesneedtobereasonableinthattheemployeecanmeetthemwithintheagreedtimeframe·Theobjectivesshouldbemeasurable·Theobjectivesshouldbeinwritingideallywiththeemployee’swrittenagreementIfthisisthesecondorthirdtimetheemployeehasbeenputonObjectivesortheemployeefailstomeettheobjectives,thenifthemanagerwantstoterminatetheemployee,thentheyshouldmakeitcleartotheemployeethatiftheyfailtocomplywiththeobjectives,themanagerwillconsiderhis/heroptionsincludingtermination.Ifperformancedoesn’timprove:Intheeventthatthereisnoperformanceimprovement,themanagerwillbeentitledtotakethefollowingsteps:·setanewperformanceplan·terminatetheemployee·ifavailable,talktotheemployeeaboutalternativejobswhichbettersuittheemployee’sskillsetHoweverpriortoterminatingtheemployee’semploymentorofferinganalternativepositionthemanagermustobtainthefollowingapprovals:HotelEmployee-theapprovaloftheGeneralManagerandHRDirectoroftheHotel;andCorporateEmployee-theHRDirectorsupportingthefunctionalgroupandtheRegionalDirectorforthatGroup PolicyNumber:HR4.06EffectiveDate:1May2012PreparedBy:APHRApprovedBy:A.PatrickImbardelliAsiaPacificPolicyPERFORMANCEMANAGEMENTPage8of8ExamplesofShortTermObjectivesExample1:Objective:-ImproveF&BServiceGSTSRatingto[inserttarget]orlessby[insertdate]200[insertyear].Measured:-ReviewofGSTSforF&Battheendofeachmonth.Example2:Objective:-MeettheForecastGOPforF&Bforthenextquarter.[NB:-Sometimestheobjectiveneedstobebrokendownintotasks.]Tasks:-Increasetheaverageroomrateto$[inserttarget]andoccupancyto[inserttarget]%.Measured:-MeasuredbylookingatRGIindex.Example3:Objective:-FocusonprovidingproactivefinancialsupporttotheGM.Tasks:-Providetimelyfinancialreportsbynolaterthan[inserttarget]ofeachmonth.Monitoroutstandingdebtledgerandensureaccountsreceivablenomorethan[inserttarget]days.Measured:-Reviewofdebtledgerattheendofeachmonth.FeedbackobtainedfromGM.Monitoring&MeasurementofObjective:Eachoftheobjectiveswillbemeasuredoutof5onthesamebasisastheperformancefeedbackprocess.A3orhigherratingwillbeconsideredevidencethatyouareperformingtheobjective,aratingof1or2willbeconsideredevidencethatyouarenotmeetingtheobjective.Ifyouachievelessthana3onmorethan[inserttarget]objectivesthenwewillconsiderouroptionsincludingterminationofyoufromyourpositiononthegroundsofpoorperformance.Monitoring:-Theseobjectiveswillcontinueoveraperiodof[inserttarget]monthsandbe(referredtoasthe“PerformancePeriod”).Duringthistimewewillmeetevery2weekstoreviewandmonitoryourprogress. PolicyNumber:HR4.06EffectiveDate:1May2012PreparedBy:APHRApprovedBy:A.PatrickImbardelliAsiaPacificPolicyPERFORMANCEMANAGEMENTPage8of8MISCONDUCTWhatismisconductandwhendoesitapply?MisconductisdefinedasbehaviourthatinvolvesabreachofthetypeofprofessionalandethicalbehaviourwhichisexpectedbyIHG.Examplesofmisconductincludebutarenotlimitedto:·Absenteeism-Failuretoproviderequirednoticeand/ormedicalcertificatesinrelationtoanillness/injury·Absenteeism-Failuretoattendworkattherequiredtime·Failuretofollowproperauthorisationprocedures·Dishonesty·Theftorfraudaffectingthecompany,itssuppliersand/orcustomers;·Physicalorverbalassaultofapersonattheworkplace·UnlawfulHarassment,sexualorotherwise,ofanotheremployee,agent,visitororcustomer(ReferIHG’sSexualHarrassmentPolicy)·Abreachofthesafetyandenvironmentalpolicies(ie.failuretoreportaworkplaceinjury)(ReferIHG’sOH&SPolicy);·Abreachofinformationsecuritypolicies(RefertoIHG’sITpolicy)·Breachofconfidentialityconcerningthecompany"sorathirdperson"sinformation·Beingundertheinfluenceoforinthepossessionofalcoholorotherintoxicatingorillegalsubstancesatwork(RefertoIHG’sDrugPolicy)·Falsificationofcompanyrecordsorinformation·Makingunauthorisedalterationstoindividualcustomeraccountsortoanemployee"sownaccount·Wilfuldamagetocompanyproperty·RefusaltocarryoutthelawfulinstructionofamanagerThislistisnotexhaustive.Theactiontakenwilldependontheseriousnessoftheallegedmisconduct,priorinstancesofsimilarmisconductandthemeritsofthecase. PolicyNumber:HR4.06EffectiveDate:1May2012PreparedBy:APHRApprovedBy:A.PatrickImbardelliAsiaPacificPolicyPERFORMANCEMANAGEMENTPage8of8DISCIPLINARYACTIONWhatarethetypesofDisciplinaryaction?Disciplinaryactioncantakeanyofthefollowingforms:·averbalwarning;·writtenwarning;·finalwrittenwarning;·terminationwithnotice;·summarytermination(ieterminationwithoutnotice)Whatisdisciplinaryaction?Disciplinaryactiondoesnotnecessarilyfollowasequential/consecutivepath.Forexample,theremaybecircumstanceswhere:·theinitialdisciplinaryactiontakenisafinalwrittenwarning,·themisconductoftheemployeejustifiesterminationwithoutanypriorwarnings;or·morethantwowarningsmaybewarrantedpriortotermination.Thekeyconsiderationistoensurethateachcaseisdecidedonitsownmerits.Whatisawarning?Awarningisformalcommunicationtoanemployeethat:·theirbehaviourorcontinuedunsatisfactorylevelofperformanceisunacceptable,and·ifthereisnochangeinthebehaviour/performanceitmayleadtodismissal.Awarningwillbegivenwhereanemployeehasfailedtoimprovehisorherperformance,orhasengagedinmisconductthatwarrantsit.Awarningcanbeverbalorwritten.Awarningremainsonanemployee"spersonnelfileforaperiodof12months.IHG’sdisciplinaryprocedureItisimperativethatHRisconsultedpriortoanydisciplinaryactionbeingundertaken. PolicyNumber:HR4.06EffectiveDate:1May2012PreparedBy:APHRApprovedBy:A.PatrickImbardelliAsiaPacificPolicyPERFORMANCEMANAGEMENTPage8of8Thedisciplinaryprocedurewillbefollowedwhen:·Theperformanceimprovementprocesshasfailedtoproduceanacceptablelevelofworkperformance;or·Anemployeehasengagedinbehaviourthatisunacceptable/misconduct.Thedisciplinaryprocedurewillinvolvethefollowing:1.Preliminaryinvestigation2.Interview3.Dueconsideration4.Decision5.Implementdecision/actionplan1.PreliminaryInvestigationThepersoncarryingoutthepreliminaryinvestigationwillgenerallybetheLineManager.Thepurposeofthepreliminaryinvestigationistoestablishthefactsandgatherevidencethroughathoroughinvestigation.Furtherinvestigationmayalsoneedtobeconductedatlaterstagesofthedisciplinaryprocess.Employeemaybeplacedonsuspensiononfullpaywhilsttheinvestigationisbeingcarriedout.2.InterviewIfthepreliminaryinvestigationappearstosubstantiatetheallegationsorthepersistenceofaperformanceorbehaviourproblem,theemployeewillbeinterviewed.Theemployeewillhavetherighttohaveacolleagueorclosecontactpresentduringtheinterview.Thepurposeoftheinterviewisto:·Clearlyputtotheemployeethenatureoftheallegations;·Explaintotheemployeethetypesofdisciplinaryactionwhichmightbetakeniftheallegationsarefoundtobesubstantiated;·Givetheopportunitytotelltheirsideofthestory,provideanyexplanation,andputanythingelsewhichmayberelevantinIHG"sconsiderationofwhatistheappropriateaction. PolicyNumber:HR4.06EffectiveDate:1May2012PreparedBy:APHRApprovedBy:A.PatrickImbardelliAsiaPacificPolicyPERFORMANCEMANAGEMENTPage8of81.DueconsiderationGivedueconsiderationtotheemployee"sexplanation/response.Itisimportanttoprovidesufficienttimetogivefullconsiderationtoanyexplanationgivenbytheemployee,beforeanyfinaldecisionistakenondisciplinaryaction.Itmaybethat,inlightoftheemployee"sresponse,thatfurtherinvestigationisrequired.2.DecisionIfithasbeenestablishedthatanemployeeisresponsibleforsomeformofpersistentunsatisfactoryperformanceormisconduct,thelinemanagermustselecttheappropriateformofdisciplinaryactiontobetaken.AnydecisionmustbemadeinconsultationwithHumanResources.3.Implementdecision/actionplanInallbutexceptionalcasestheappropriateactionshouldbedecideduponandimplementedbeforethecompletionoftheemployee"snextworkingday.'