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Review Performance Management Infrastructure

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Organizations such as BHP would operate a number of different performance appraisal methods. In order to ensure the success of the method implemented certain processes need to be in place.

Outline the processes and documentation an organisation such as BHP would need to have in place to successfully implement performance management
* Firstly, BHP would need to assess whether all positions within their organisation are documented and available in current and accurate position descriptions.
* Investigate whether managers have provided all BHP staff with performance indicators to be used in the current appraisal period, ensuring they are consistent with each staff members key role requirements, as outlined in each position description.
* Assess BHP’s performance management policy and procedures to determine whether performance appraisal meetings are being held at a frequency in-line with BHP’S policy requirements (i.e at least once a year). BHP can also use the policy to check whether all performance documentation has been completed , recorded and signed off by both manager and employee.
* Investigate whether all BHP staff are subjected to appropriate organisational policy and procedures for rewarding good performance as well as addressing underperformance.
* Assess how disagreements about performance apprasials outcomes are managed, investigating whether BHP has a clear and consistent policy and procedure for the dispute settlement process. Also, whether the issue can be resolved quickly and appropriately, offering advice and support in cases of dissention about performance appraisal outcomes.

BHP Billiton’s mandatory Health, Safety, Environment and
Community (HSEC) performance requirements are prescribed
In our Group Level Documents (GLDs) and the process of implementing the GLDs across the Group continues. All our businesses are committed to this implementation process; however, compliance with all the requirements is not yet in place at every operation. Our Sustainability Framework on page 39 provides a summary of the key performance requirements from the HSEC GLDs reform tBHP Billiton as the world’s largest natural resources company, extracts and processes minerals, oil, and gas from operations in Australia, the Americas and southern Africa, and sells its products globally .Was founded following in 2001 by merger of the Australian registered BHP Billiton Limited (formerly BHP Ltd) and the UK registered BHP Billiton Plc (formerly Billiton Plc). These two parent companies now operate as a single economic entity run by a unified Board and management team.

This standard prescribes the mandatory Health, Safety, Environment and Community
(HSEC) performance requirements for the establishment of HSEC management systems that support implementation of the BHP Billiton Charter, the POL.004 Sustainable Development
Policy and the aspiration of Zero Harm across BHP Billiton. This standard is consistent with
ISO 14001, OHSAS 18001, SA 8000, and the International Council on Mining and Metals
(ICMM) Sustainable Development Framework. It supports the achievement of leading industry performance and adopts the Plan-Do-Check-Act (PDCA) methodology (see Appendix I.0).
BACKGROUND
ORGANISATIONAL STRUCTURE
BHP Billiton is a publicly traded company. It holds an Annual General Meeting (AGM), which all shareholders are entitled to attend. The executive body is the Board of Directors, which is elected by the AGM. The Board consists of 13 Directors, one executive and 12 non-executive. Once a non-executive Director has served on the Board for more than nine years, that Director must stand for re-election annually at the AGM. The Board then oversees the Group Management Committee, the senior management team of the Group.
3.0 Performance Requirements
3.1 Leadership and accountability
• All BHP Billiton employees and contractors must demonstrate visible leadership, be responsible for effective HSEC management and consistently deliver on their HSEC accountabilities. Effective HSEC leadership is a prerequisite for promotion.
• Managers must recognise, reinforce and reward HSEC initiatives, desired behaviours and outcomes.
• HSEC management systems must be established for all controlled activities; and controlled sites must maintain certification of this management system to ISO
14001 (except exploration, development projects, divestment, closed sites and offices).
• Managers must identify and provide sufficient resources to manage HSEC risks and opportunities. • Managers must document and communicate HSEC responsibilities and accountabilities for employee and contractor roles.

PARTICIPATION – EXTERNAL STAKEHOLDER ENGAGEMENT
Several BHP Billiton documents outline commitments to external stakeholder engagement. The HSEC Management Standards provide criteria for evaluating the stakeholder engagement practices of each site. A more general commitment to engaging stakeholders is made in the Sustainable Development Policy. The Community Planning and
Engagement Guidelines outline protocol for engaging with stakeholders at the operational level, setting out requirements for the components of community engagement plans, including emergency response plans, risks and social impact assessment, development and investment programmes, compensation and benefits, and human rights. There are mechanisms in place for external stakeholders to initiate engagement on issues of concern, and BHP Billiton initiates engagement with external stakeholders for various projects, although there is no explicit commitment to making clear how much they can expect to influence the final decision. In addition, no commitment is made to publicise the outcomes of external stakeholder engagement.
The Vice President for Sustainability and Community Relations is responsible for the oversight of external stakeholder engagement commitments. Line management and community relations staff receive training on stakeholder engagement via in-house training as well as training programmes in cooperation with Oxfam and Queensland University. The Community Planning and
Engagement Guidelines is a confidential document, but both the HSEC Management Standards and the Sustainable Development
Policy are available online. The Sustainable Development Policy is available in English, Spanish, Chinese, French, Portuguese,
Indonesian and Russian. Through its Forum on Corporate Responsibility, BHP Billiton has institutionalised external stakeholder involvement in the senior management level decision-making process

Assignment
Question 1

Organizations such as BHP would operate a number of different performance appraisal methods. In order to ensure the success of the method implemented certain processes need to be in place.
Outline the processes and documentation an organisation such as BHP would need to have in place to successfully implement performance management e One World Trust is an independent think tank that conducts research, develops recommendations and advocates for

To run this company successfully thetBHP Billiton need to implement high standards .
This standard prescribes the mandatory Health, Safety, Environment and Community
(HSEC) performance requirements for the establishment of HSEC management systems that support implementation of the BHP Billiton Charter, the POL.004 Sustainable Development Policy and the aspiration of Zero Harm across BHP Billiton. This standard is consistent with ISO 14001, OHSAS 18001, SA 8000, and the International Council on Mining and Metals (ICMM) Sustainable Development Framework. It supports the achievement of leading industry performance and adopts the Plan-Do-Check - Act (PDCA)y and decision-making processes in global governance more accountable to the people they affect now a BHP Billiton’s mandatory Health, Safety, Environment and Community (HSEC) performance requirements are prescribed In Group Level Documents (GLDs) and the process of implementing the GLDs across the Group.

To achieve the standards and successfully implement performance management
BHP Billiton would need to:

1. Approve Sustainable Development Policies to the BHP Office of Chief Executive and approve the standards by the Operating Committee. 2. The BHP Billiton Board of Directors has to make sure that Standards are regularly reviewed with HSEC performance, risks and strategic issues. 3. Site management has to define the documents and prepare management systems for their operations. 4. Make sure that Managers implement the Sustainable Development Policies and meet the Performance Requirements of these Standards through management systems designed to measure and drive continual improvement in HSEC performance. 5. Assess and make sure that Managers demonstrate visible leadership through personal example, promoting initiatives and encouraging strong teamwork at all levels, conduct frequent site inspections and observations. 6. Managers have to provide all BHP staff with performance indicators to be used in the current appraisal period, ensuring they are consistent with each staff role requirements, as outlined in each position description. 7. Perform performance appraisal meetings frequently in-line with BHP’S policy requirements at least once a year. Check whether all performance documentation has been completed, recorded and signed off by both manager and employee. 8. Make sure that BHP staffs are subjected to appropriate organizational policy and procedures for rewarding good performance as well as addressing underperformance. 9. Implement clear and consistent polices and procedure for the dispute settlement process. Assess how disagreements about performance appraisals outcomes are managed. Implement whether the issue can be resolved quickly and appropriately, offering advice and support in cases of dissention about performance appraisal outcomes.

Question 2 Introducing a Performance management system requires communication and training. What methods would you use to promote the performance management system and gather feedback from stakeholders?

In promoting a performance management system to BHP I would use the following methods:
•All BHPStakeholder’s (internal and external) information needs must be identified and documented.

Clarify to all staff the goals and methods of the Performance management system * All BHP stakeholders would need to be clear on the methods and processes of the Performance management system as well as the goals of the system for both the individual and the benefit of the organization as a whole. All needs must be identified and documented.

• Affected stakeholders must be consulted regarding HSEC issues. A record of this consultation, who participated and the issues discussed must be recorded.

Make sure that any questions from employees about performance management system are answered right away.

Make sure that any questions from employees about performance management system be answered in a timely manner. Affected stakeholders must be consulted regarding HSEC issues. A record of this consultation, who participated and the issues discussed must be recorded. • BHP must arrange or deliver accurate HSEC information, including learning’s, training, that affects activities of employees, contractors and other affected stakeholders, must be communicated. In order to ensure the effectiveness of the performance management system

Arrange for the delivery or training and instruction in how to use the performance management system

* In order to ensure the effectiveness of the performance management system, BHP must arrange or deliver training and instruction to all BHP staff in how to use the performance management system. Training and instruction ensures that all BHP staff members are aware of the benefits of the Performance management system to the individual as well as the organization as a whole

.Loretta must encourage managers to give feedback regularly and in an ongoing arrangement, not just at performance appraisal time *All BHP Managers must be encouraged to give feedback to staff regularly on performance as well as formal performance appraisal. It is important that the managers give regular feedback to staff, other than at appraisal times as it gives the staff an opportunity to correct underperformance or benefit from positive reinforcement in cases of good performance. Regular and ongoing feedback can be achieved by giving the managers training in feedback techniques; Incentives and systematic support; as well as training the employees themselves to ask for feedback.
3.6 Communication and consultation
•All BHPStakeholder’s (internal and external) information needs must be identified and documented.
• Affected stakeholders must be consulted regarding HSEC issues. A record of this consultation, who participated and the issues discussed must be recorded.
• Accurate HSEC information, including learning’s training, that affects activities of employees, contractors and other affected stakeholders, must be communicated.
• Procedures for receiving, documenting and responding to communications, Including complaints, from stakeholders must be implemented.

Question 3
What data do you require to effectively conduct a performance appraisal? How would you go about collecting performance management data?

Question 4
Why is it important for a company such as BHP to undertake regular reviews of their Performance Management policies and procedures?

2008 Global Accountability Report
Accountability Profile

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