For many years, public servants have complained about management's inability to deal with underperformance within their own departments or agencies. According to the commission's latest census, about 80 percent of staff believed their managers were dealing with the problem.

"Make no mistake; we are not good at this," Mr Lloyd said. "Getting this right is fundamental to assuring individual accountability. Keeping it simple is fundamental to doing it efficiently."

Mr Lloyd said senior staff often found performance management a challenging task with many avoiding confrontation with those who not meeting their responsibilities.

"It doesn't need to be like this," he said. "In many private sector organisations, a mutually respectful parting-of-the-ways works to everyone's benefit. We should aspire to this for the Australian public service."

Mr Lloyd said terminations in the public service were often seen as punitive with management subject to lengthy and complex processes.

According to the commission's latest census, only half of surveyed staff expected informal feedback from their supervisors was likely to have a positive impact of their performance.

The percentage was slightly lower for those provided with formal feedback, which is often seen as a compliance exercise by staff rather than a genuine engagement.

The census also noted rank-and-file staff were often left confused about their responsibilities and goals after feedback sessions, despite management being convinced otherwise.

This feedback has encouraged the commission to review existing policies, cultures and processes around performance management.

"The rules we have in place should not hinder taking the most effective course of action to resolve underperformance cases," Mr Lloyd said. "This may include, where necessary, termination of employment."

"The commission is developing advice, in partnership with agencies, about what to focus on when reviewing their performance frameworks."

Last year, an academic study found performance management in the public sector was often unfair, inconsistent and ineffective.

Associate Professor Jeannette Taylor, of the University of Western Australia, questioned 116 public servants in four unnamed agencies about their attitudes to their bosses' efforts to improve workplace performance.

Professor Taylor found there was a disconnect between the rhetoric of performance management and the reality among staff

According to one public servant, the performance management framework rewarded staff who barely made it over the line.

"People who do not perform well are put into a corner and rated satisfactory, regardless of their ineptitude, which renders the whole system useless," said another.

Mr Lloyd said department managers needed to ensure their staff were motivated to do their best at work.

"All the research shows that the key to unlocking high performance is to ensure that good performance conversations occur regularly between managers and employees," he said.