A performance improvement plan (PIP), often known as a performance action plan, is a tool/document given to an employee with poor performance to help them succeed. It can be used to resolve failures to meet specific job objectives or to address behavioral problems.
A performance improvement plan is a document that identifies where an employee is falling short and what he can do to improve his performance. The performance action plan, for example, may list the skills or training that the employee lacks. It could also suggest how the employee’s behavior needs to change. In any case, the PIP will include the steps that the employee must follow in order to make the necessary modifications.
Also, See: Performance Management Cycle
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