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Principals commonly struggle to have effective conversations about staff performance issues (Cardno, 2007; Pajak & Arrington, 2004; Yariv, 2009). They tend to tolerate, protect and work around performance issues rather than effectively addressing them (Bridges, 1992). Addressing staff performance issues requires principals have strong interpersonal skills in having effective conversations (Argyris & Schon, 1974). This paper identifies the specific values and skills that a group of 30 beginning principals struggle with in having effective conversations about performance issues. The analysis of 60 conversations based on standardised scenarios provides a framework that could be used for targetting feedback and coaching to increase principal’s interpersonal skills in having effective conversations about challenging issues including staff performance.