Unit of competency details

BSBHRM503B - Manage performance management systems (Release 1)


Usage recommendation:
Supersedes and is equivalent to BSBHRM503A - Manage performance management systems 31/Mar/2009
Is superseded by BSBHRM512A - Develop and manage performance-management processesNew unit code and title. Revised and updated unit descriptor. Amended wording of elements 1, 2 and 3. Deleted element 2. New performance criteria at elements 1, 2 and 3. Rewritten and clarified performance criteria. Expanded and updated required skills and knowledge section. Expanded and updated range statement. Updated and clarified Evidence Guide. 17/Mar/2013

ReleaseRelease date
1 1 (this release) 10/Mar/2009

Training packages that include this unit


SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080303 Human Resource Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080303 Human Resource Management  03/Aug/2011 
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Modification History

Not applicable.

Unit Descriptor

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to design, implement and oversee performance management systems. It includes developing and managing ongoing performance feedback strategies and conducting formal performance feedback meetings. The unit also includes specific intervention associated with under-performance or misconduct.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application of the Unit

Application of the unit 

This unit applies to individuals with a well-established theoretical knowledge of human resources management and performance management who are proficient in using a range of specialised technical and managerial techniques to plan, carry out and evaluate their own work and the work of a team. They may or may not have staff who report to them, but they are authorised to establish an effective performance management system for an organisation.

Licensing/Regulatory Information

Not applicable.


Prerequisite units 

Employability Skills Information

Employability skills 

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria



1. Develop performance management systems

1.1. Analyse strategic and operational plans to identify relevant policies and objectives for performance management system

1.2. Design methods and processes for line managers to develop key performance indicators for those reporting to them

1.3. Develop organisational timeframes and processes for formal performance management sessions

1.4. Ensure performance management systems developed are flexible enough to cover the range of employment situations  in the organisation

1.5. Consult with key stakeholders about the system and agree on its features

1.6. Gain support for the implementation of the performance management system

2. Implement performance management systems

2.1. Train relevant groups and individuals to monitor performance, identify performance gaps  and manage talent

2.2. Ensure that line managers are monitoring performance regularly and that intervention  occurs to address poor performance and acknowledge excellent performance

2.3. Work with line managers, where necessary, to assist them to address poor performance according to organisational policies and legal requirements

2.4. Support line managers to counsel and discipline employees who continue to perform below standard

2.5. Provide support to terminate employees who fail to respond to interventions, according to organisational protocols and legislative requirements

2.6. Recognise excellence according to organisational policy

2.7. Ensure recorded outcomes of performance management sessions are accessible and stored according to organisational policy

3. Coordinate formal feedback processes

3.1. Develop performance feedback plans by relevant managers or team leaders and lodge them with human resources staff

3.2. Provide training and assistance to managers or team leaders participating in the feedback process

3.3. Agree on and sign plans for performance improvement and individual learning and development 

3.4. Establish processes to deal with problems or grievances that arise from the performance feedback

3.5. Make specialist advice on career development available to participants in the process

4. Coordinate individual or group learning development plans

4.1. Contract appropriate providers  for performance development, as identified by the plans, according to organisational policy

4.2. Design learning and development plans to contribute to the development of a learning organisation

4.3. Deliver learning and development plans according to agreed timeframes and ensure they deliver specified outcomes

4.4. Monitor learning and development activities to ensure compliance with quality assurance standards

4.5. Negotiate remedial action with providers where necessary

4.6. Generate reports to advise appropriate managers on progress and success rates of activities

4.7. Regularly evaluate and improve all aspects of the performance management system, in keeping with organisational objectives and policies

Required Skills and Knowledge


This section describes the skills and knowledge required for this unit.

Required skills 

  • analytical skills to ensure system is practical and gathers necessary information
  • communication and conflict-management skills to deal with grievances, disputes and disagreements that may arise
  • leadership skills to obtain support and endorsement of the performance management system across the organisation
  • training, coaching, mentoring and facilitation skills using a range of methods to cater for differences in learning styles, to ensure managers are competent to deliver the systems

Required knowledge 

  • characteristics of a learning organisation
  • equal employment opportunity, diversity and anti-discrimination policies and legislation
  • grievance procedures
  • models for giving feedback and options for skill development
  • options in the design of performance management and talent management systems
  • role of performance management in relation to broader human resources and business objectives

Evidence Guide


The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

  • development and implementation of:
  • a performance management system that aligns with a human resource strategy
  • a formal feedback process
  • individual or group learning development plans.

Context of and specific resources for assessment 

Assessment must ensure access to appropriate documentation and resources normally used in the workplace.

Method of assessment 

The following assessment methods are appropriate for this unit:

  • assessment of reports on performance management and performance development systems
  • direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate
  • observation of demonstrated techniques in performance management
  • observation of presentations
  • review of plans for performance improvement and individual learning and development
  • review of reports generated to advise appropriate managers on progress and success rates of activities
  • oral or written questioning to assess knowledge of models for giving feedback and options for skill development and talent management.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

  • BSBHRM507A Manage separation or termination.

Range Statement


The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Employment situations  may include:

  • casual and contract work
  • full-time and part-time work
  • marketing and sales
  • office and clerical
  • physical labour
  • processing
  • production
  • technical or scientific
  • tele-working
  • warehousing and transport.

Performance gaps  may include:

  • costs above budget
  • disruptive conflict
  • external interference
  • failure to meet strategic or operational objectives
  • low or high turnover of labour
  • productivity below budget
  • quality, OHS or environmental failure
  • work bans or go slow.

Intervention  may include:

  • coaching
  • counselling
  • disciplining
  • giving praise
  • recognising good performance.

Individual learning and development  may include:

  • enhancement of knowledge
  • mentoring
  • personal development
  • project work
  • skills training
  • visits to other workplaces.

Appropriate providers  include:

  • consultants
  • external and internal providers
  • trainers.

Unit Sector(s)

Unit sector 

Competency field

Competency field 

Workforce development - human resource management

Co-requisite units

Co-requisite units