Managing people when legal risks are present is arguably the most challenging aspect of an Executive and Manager’s role. Leading the team during such challenges can be even more difficult.

Recent unfair dismissal decisions highlight the importance of critically considering risks across multiple bodies of law when taking management action. A public sector organisation lost an unfair dismissal claim brought by a former employee, who was sacked after the employee punched a hole in the wall of a building (TD/2009/202) (2 December 2010). There was a failure of management to consider the wellbeing of the employee, the context to their behaviour, and thus Commissioner Fisher concluded that the decision to terminate was harsh, unjust, and unreasonable.

We also know recent research in incivility (i.e. rudeness, disregard for others) may act as a precursor to more serious problems, including risks with bullying and harassment if not addressed through effective leadership and setting an appropriate culture (Pearson & colleagues, 2005).

So how do we lead, make defensible decisions and continue to inspire our people through these high risk legal challenges? Early intervention and supportive leadership behaviours are critical, from both a risk and support perspective. Identification of risks for the individual, team and organization is a complex process, however with the right knowledge, application and assessment of risks, there can be a significant reduction in failure of performance management, and improved reasonable management actions.

Using a risk matrix, PsyCare Corporate navigates the legal and leadership terrain inherent in a complex workplace, to help a leader develop clear, defensible strategy and effective outcomes for individuals, teams and the organization.

To learn more, consider attending our upcoming People Risks Workshop to be held on 7 September 2011 in Brisbane.