Sample Solution

Managers use various strategies to maximize their staff’s potential. A performance improvement plan is one such strategy that enables employee development through honest feedback and actionable steps for improvement. When used in the appropriate situations, it can benefit both employees and the company. A performance improvement plan or PIP is a formal document explaining where an employee needs to improve and gives clear guidelines to attain it. A PIP is implemented when an employee is continually missing the company’s expectations towards their work or behavior. Performance improvement plan provides various benefits to both staff and the company. It boosts employees’ morale. PIP is focused on helping the staff improve rather than penalizing them for their under-performance. One obstacle to this method is lack of leadership commitment. Leadership commitment and support is a must for smooth implementation of the system. Leaders must drive the process and make performance management an integral part of the management of the company.