The Model-Netics management model, Substandard Performance Alternatives, is the idea that there are only three logical alternative solutions to the problem of substandard employee performance: upgrade, transfer, and termination. 

Substandard Performance
Performance is substandard when it falls below the minimum acceptable level of performance--when the employee's results don't meet expected quantity level, or are of lower quality than required, or do not meet cost or time requirements. Managers must not tolerate substandard performance--because this lowers the effectiveness and efficiency of the entire unit and, in some cases, may cause the manager to fail to accomplish their objectives.

Common Solutions That Don't Solve the Problem
Unfortunately, managers often attempt to solve the problem of substandard performance in one of three illogical ways: through superior support, peer support, or subordinate support.

Superior Support. In a superior-subordinate relationship, where "B" is the substandard performer and "A" is the superior, "A" may do enough of "B's" job to bring it up to standard. The problem is that, in doing this, "A" may become a substandard performer.

Peer Support. Another commonly used approach is for the superior to get help for "B" from other employees who work with "B." The problem with this approach is that "B's" co-workers may become substandard performers and will usually resent carrying the substandard performer's weight.

Subordinate Support. If the substandard performer is a manager, the manager's subordinates sometimes end up providing additional support. This puts an unfair burden on the subordinates and doesn't solve the manager's substandard performance problem.

None of these solutions are logical because they don't solve the problem of substandard performance--the substandard performer still continues to operate below standard. In fact, in many cases, applying these kinds of solutions makes the situation worse because of resentment within the unit, increased costs and processing time, and reduced quantity and quality of output.

Three Logical Solutions
Instead of trying ineffective approaches like these, Substandard Performance Alternatives says that the manager should use one of three logical solutions to the problem: upgrade the employee, transfer the employee, or terminate the employee.

Upgrade. Upgrade means bringing the employee's performance up to standard. Sometimes this can be accomplished through training or by convincing the employee to put in more effort. If upgrading can be accomplished within reasonable time and cost constraints, this can be the best approach and should be considered first. But upgrading isn't feasible if it takes too long, costs too much, or involves trying to change the employee's personality to fit the job.

Transfer. Transfer refers to any move that involves a change in job, associates, or the situation. It may involve restructuring the current job or moving the employee to another job. Transfer should usually be considered only after attempts to upgrade have failed, or when upgrading isn't feasible. Use of the transfer approach should be limited to situations where restructuring the job is in the unit's best interest or when another job exists that the substandard performer can handle successfully.

Termination. Termination means to end an employee's association with the organization. If upgrading or transferring the employee isn't feasible or hasn't raised performance to acceptable levels, the last logical alternative is to terminate the employment of the substandard performer. Although managers are sometimes reluctant to take this step, it may be the only logical solution.

Best Solution
These three solutions to substandard performance should be included in the organization's orientation and training programs to make sure that both managers and subordinates understand how substandard performance will be handled. These solutions are the fairest approach because they accomplish three things: the organization no longer carries the cost of a substandard performer, co-workers aren't forced to do another employee's job for them, and substandard performers have an opportunity to either upgrade their skills to an acceptable level or find a job that is more suitable for them.

This is a general description of the concepts represented by the Substandard Performance Alternatives model. In Model-Netics training, these ideas are expanded upon and specific applications to the organizations are introduced and explored.