Having a clear grasp of the concept of "reasonable management action" is crucial as it plays a significant role in employee performance and conflict resolution. Being aware of what constitutes 'reasonable' allows you to make impartial judgments and protect your business from potential legal liabilities.
What does 'Reasonable Management Action' mean?
As an employer, you may have concerns that taking performance or disciplinary action against one of your employees may be considered bullying. Where is the line? If this action is ‘reasonable management action’, carried out in a reasonable way, it does not constitute bullying.
At its core, reasonable management action refers to decisions and actions a manager takes that are fair, necessary, and done in a reasonable manner. It’s about balancing your responsibility to manage performance and expectations with the rights and well-being of your employees.
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
address poor performance or behaviour.
What is Reasonable?
It is ‘reasonable management action’ for an employer to:
start performance management processes (such as a performance improvement plan)
take disciplinary action for misconduct
tell a worker about work performance that is not satisfactory
tell a worker their behaviour at work is not appropriate
ask a worker to perform reasonable duties as part of their job
take action to maintain reasonable workplace standards.
But the way the employer takes these actions must also be ‘reasonable’. If they are not reasonable, and they are repeated, these actions could still be bullying.
Why It Matters
It Protects Your Business
Claims of bullying, harassment, or unfair treatment in the workplace can harm morale, productivity, and company culture. Employees feeling that management is acting unfairly can create a toxic environment, impacting individuals and the business.
To prevent legal issues, businesses should have clear policies promoting fairness and respect. Transparent communication and conflict resolution training for managers can help address concerns early, building a harmonious workplace.
In turn, this can minimise time consuming, emotionally draining disputes, ensure compliance, and empower employees.
Supports Employee Well-Being and Performance
Fair management builds trust among employees. When individuals perceive that decisions are made equitably and openly, they are inclined to stay motivated, perform well, and show loyalty to your business.
Encourages Positive Workplace Culture
Leading with reasonable actions will help you build a positive, respectful culture. It sets the tone for a constructive and respectful environment, and minimises the occurence of disputes.
Team members will feel that their concerns are being heard and addressed in a thoughtful manner, and in turn it will lead to increased morale, productivity, and a stronger sense of unity and cohesion within the teams.
Improves Your Leadership Credibility
As a leader, your actions set the tone for your team. When you consistently act fairly and reasonably, you strengthen your credibility, which helps you lead with confidence and authority in your role.
How to Ensure Your Actions Are Reasonable
When it comes to effective leadership, one of the key aspects is the ability to clearly communicate the rationale behind your decisions and expectations. By providing a transparent explanation, employees are better equipped to understand the reasoning behind the actions taken, and less likely to 'create the story' themselves. This not only builds a sense of trust and respect but also ensures that everyone is on the same page.
Also, documenting performance conversations, decisions, and implemented measures is essential for maintaining a record of the thought process and considerations that went into making those choices. This documentation serves as a valuable resource in case of any misunderstandings or disagreements, as it provides a clear trail of the decision-making process.
It is also crucial (legally and morally) to treat all employees objectively and equitably and apply criteria consistently across the board. This practice helps to prevent any perceptions of favouritism or prejudice, making sure that every team member is evaluated based on the same standards and expectations.
Examples of Reasonable Management Action
Providing Constructive Feedback
Providing feedback in a courteous, concise, and professional manner is an essential aspect of fair management practices. It does not involve shying away from difficult discussions but rather focuses on the manner in which these discussions are conducted. Even when addressing instances of employee underperformance, feedback should be constructive, specific, and actionable. Instead of dwelling on an employee's mistakes, it is more effective to view them as opportunities for development. For instance, you could say, "I have observed areas that require improvement. Let's work out a plan to help you progress." This makes sure that the conversation stays constructive and respectful, steering clear of emotional or confrontational tones that may be deemed unreasonable.
Performance Management
When an employee is struggling to meet their performance targets, reasonable management action means taking a structured, step-by-step approach. It begins with setting clear expectations, making sure the employee understands what’s required of them. If underperformance continues, it’s important to have open discussions where you provide specific examples of where the employee is falling short. You should offer support —whether it’s through training, mentorship, or additional resources. Documenting each stage of this process is also important. It shows that you have been fair, transparent, and consistent in your approach, which can be helpful if a dispute arises. By giving the employee a clear path to improvement and support, the management action remains both reasonable and necessary.
Making Organisational Changes
Businesses evolve, and sometimes changes need to be made, whether that’s shifting roles, changing team structures, or even downsizing. Reasonable management action in these scenarios involves clear communication and careful consideration of employee concerns. It is part of a genuine redundancy process. For example, if a team restructure is necessary, it’s important to explain why the change is being made, how it will benefit the business, and how it will impact employees. Giving employees the opportunity to ask questions, voice their concerns, and feel heard can make the process smoother and prevent feelings of unfairness. Also, managers should provide support to help employees transition smoothly into their new roles or responsibilities, demonstrating both fairness and empathy.
Understanding the concept of "reasonable management action" is essential for legal compliance, effective leadership, and a positive workplace culture. Balancing fairness, transparency, and respect in decisions protects the business, supports employee well-being and performance, and builds a strong culture in your business. Clear communication, documentation, objectivity, consistency, and empathy are key to ensuring reasonable actions. Implementing these practices creates a productive, respectful work environment where employees feel valued and motivated.
If you have concerns about this topic, or need help with difficult conversations, send me an email at sandra@hrconsultingtas.com.au.
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