Performance Management Policy

A Performance Management Policy is an important HR document used to outline your business expectations of employees performance.

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Last updated October 24, 2025

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Suitable for Australia

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Frequently asked questions

Use this Performance Management Policy if:

  • Your business would like to inform employees about important performance management procedures. 

What does the Performance Management Policy cover?

  • Managing for performance;
  • Managing unsatisfactory performance; and
  • Disciplinary action. 

Other names for Performance Management Policy include:

  • Review of Performance Policy; and
  • Performance Review Policy.

Other documents you may need:

View Sample Performance Management Policy

The Legal Risk Score of a Performance Management Policy Template is Low

Our legal team have marked this document as low risk considering:

  • There is a risk that the document’s reliance on supervisors and managers to fairly interpret and apply performance standards could lead to inconsistencies in handling unsatisfactory performance across different departments or teams.
  • The document outlines a structured process for managing performance that requires meticulous documentation and follow-up, which could be burdensome for smaller organizations or those without a dedicated human resources department.
  • The policy's emphasis on procedural fairness and natural justice, while protective of employee rights, may prolong the resolution process, potentially impacting organizational efficiency if not managed effectively.

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