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Alabama Power Company
POSITIVE PERFORMANCE® Management Case Study
"This process is collaborative. Management has embraced it because it makes it easier to address issues in a timely manner. Employees are talking with supervisors about performance issues more than just on an annual basis."
-Walter Graham
Manager of Ethics and Business Practices
Company
- The second-largest subsidiary of Southern Company, the nation's largest generator of electricity.
- Approximately 6,600 employees.
- An investor-owned, tax-paying utility that serves nearly 1.3 million homes, businesses, and industries in southern Alabama.
Process
Alabama Power implemented a specific component of POSITIVE PERFORMANCE® Management called Non-punitive Discipline in 1995, following a shift in management philosophy.
Several issues needed to be addressed:
- Management wanted employees empowered to participate fully in workplace decisions.
- Sporadic and inconsistent discipline practices.
- Lack of follow-through by supervisors.
Says Mickey Hardy, special projects manager: "Before, it would be possible to talk to an employee who had been terminated for an attendance problem and learn that he had not been disciplined previously. Some employees would receive no feedback on performance issues until an annual review. Supervisors have to do their jobs with employees. We are holding employees and supervisors more accountable than in years past."
Some of the benefits of the Non-punitive Discipline components of POSITIVE PERFORMANCE® Management included:
- A consistent system under which employees would receive regular oral and written feedback on performance.
- A clear communication of consequences if performance issues were not addressed.
- Supervisors and employees participate in coaching and counseling, making the workplace more productive through increased employee-supervisor interaction.
- Coaching and counseling help address performance on the front end, potentially heading off the need for formal disciplinary action.
- A specific and consistent company-wide active period for formal disciplinary actions to be removed from personnel files if performance improves, giving employees control over their record and an opportunity to create a "clean slate."
Observed Hardy: "Anyone could make a mistake. Once you realize your error, you
now have more control over your record within the company. A mistake won't
haunt you for life."
Results
- Managers report improved attendance and better attitudes among employees.
- For those employees with chronic performance problems that do not improve, the Non-punitive Discipline system provides for a shorter, consistent path of termination.
- The number of grievances filed with labor unions in response to disciplinary action has been reduced, bolstering the company's position in arbitration disputes with the union.
"Employees are not as threatened by discipline, with so much fear about losing their jobs," explained Walter Graham, manager of Ethics and Business practices. "Employees can initiate dialogue with supervisors, knowing that they are willing to talk and to help work out problems, rather than acting as an adversary."
- One department, with 1,600 employees, has seen a decrease in the number of discipline notices given to employees.
- The Power Generation department experienced a decrease in disciplinary actions of over 40% from 1998 through June 2001.
- Similar decreases have been noted throughout Alabama Power. Ultimately, the company's personnel information is now more accurate and meaningful, regardless of the number of disciplines.
"Even when we have not seen 'better' performance reviews, they are more accurate," said Graham. "There is acknowledgment of the problem and the progress made by the employee. We can deal with the broader scope of performance issues instead of isolated issues coming up every three months."
For additional information on POSITIVE PERFORMANCE Management, contact:
Pennington Performance Group
Randy Pennington, President
4004 Winter Park Lane
Addison, TX 75001
972-980-9857
randy@penningtongroup.com
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