Kotola, Hanna-Maria (2016)
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The purpose of this Master’s Thesis is clarify the currently valid clauses in Finland of employment legislation and legislation effecting the terminating of employee’s employment contract on individual grounds, namely based on underperformance. The presented areas are employer’s responsibilities deriving from the legislation and employee’s rights, concepts of performance and underperformance, useful performance management tools for line managers intervening in underperformance and the proper process of terminating the employment contract based on underperformance. The sufficiency of the arguments presented in terminating the employment contract based on personal grounds is always case specific judgement. For line managers, it may be difficult to interpret the law, to assess the overall situation and to evaluate the adequateness of presented argumentation as well as knowing the correct procedures to be taken prior to dismissal. The author has chosen a practical approach so that the line managers could use this Master’s Thesis as a handbook for the topic. The author’s main question for this Master’s Thesis is ”How to address underperformance issue of an employee?” The sub-questions for this research are: What are the proper performance management tools to be used in cases of underperformance and when does the underperformance of an employee entitle the employer to terminate the employment contract? The author wants to find out the role of performance management tools in cases of underperformance. The research method is partly dogmatic, partly qualitative. The data collection method is in-depth open-ended interviews. The aim of this Master’s Thesis is to present proper performance management tools and processes, suitable templates and to give profound guidance for managers when they need to terminate an employee’s employment contract based on individual grounds, specifically, when due to underperformance.