What is a performance improvement plan (PIP)?

A performance improvement plan (PIP) is primarily a document that outlines specific performance expectations for employees who are struggling in some aspect of their job. The primary goal of a PIP is to provide clear, actionable steps that the employee can take to improve their performance to meet the organization's standards. This document typically includes details such as the areas that need improvement, the expected outcomes, and the timeline within which improvements should be made.

In implementing a PIP, management engages in communication with the employee to ensure they understand not just what is expected, but also how to achieve those expectations. This process creates a structured roadmap for the employee to follow, facilitating accountability and providing them with the support necessary to meet performance goals. Ultimately, if successfully followed, a PIP helps both the employee and the organization enhance productivity and effectiveness.

The other options do not accurately capture the purpose of a PIP, as they focus on aspects like bonuses, promotions, or termination, which are distinct from the idea of structured improvement and development addressed by a PIP.