How Do We Break the News That a Manager Isn't Measuring Up?

How Do We Break the News That a Manager Isn't Measuring Up?
	An employee of one and a half years, who is head of his department, is having a more senior person hired over him because of his inability to handle the senior spot. He will be asked to stay with the firm but at a reduced salary. How should that conversation be handled given the fact that it is related to performance?—Dreading the Task, director, human resources, publishing/communication/advertising, Mahwah, New Jersey
	Many managers confront this question during their careers. Think of the conversation in terms of a compass, with each direction representing a possible outcome. Each direction has pros and cons, which are highly dependent upon organizational culture, size and historical context. Facing north. Meet the situation head on. It is important that the employee understand the reasons he is not the right person for this senior spot. Be honest and upfront. Let him know his options. Regarding a reduction in pay, be honest but fair. If the pay can be retained, then don't beat the guy up on top of not promoting him. He may prove to be an effective leader with more time. Facing south. Run the other direction. Avoid the problem and maybe it will go away. This is doubtful, but is always an option. Maybe the employee who didn't get promoted will spend more time on job boards exploring his options. Then again, if I had hope in one hand and a reduction in pay on the other, I would rapidly find another position with another company. A reduction in pay sends a bad message: "You aren't valued around here." The younger generations will not wait and see if things go better. They will "fight and leave" if they don't get their way. Facing east. Let him go. Since the employee did not prove himself in his brief stint as a department head, fire fast. In most states, employment is "at will" of employers anyway, so at the very least you could have that to fall back on. That being said, I'm of the opinion that you should work with someone until they don't want to work with you. If your gut tells you it is time to let this person go, then do so with dignity and stand by your decision. Of course, it always helps if you have up-to-date performance appraisals documenting the employee's lack of performance to back up your claims, just in case. Facing west. It is said that clothing styles moves from West to East. Perhaps this is equally also true for management styles. An employee who does not get promoted deserves an opportunity to plead his case. Perhaps you'll discover something you didn't know or, at the very least, you'll both have a better understanding of the situation. If the employee still isn't the right one, put a development plan together that will position him well for future opportunities. Depending on the size of your company, be careful not to promise too much. Let him know that you recognize he may get trained by you, only to go work for your competition. He'll respect you for saying it rather than avoiding the issue altogether. The most successful businesspeople aren't always the smartest, best-looking or most personable. What they possess is humility sprinkled with a healthy dose of thoughtfulness--and they know how to use a compass to move from point A to point B.   [SOURCE: Dana E. Jarvis is human resource director for Snavely Forest Products and an adjunct professor at Duquesne University, both in Pittsburgh, August 29, 2006.]