What is a Performance Improvement Plan (PIP) typically used for?

• A. Granting promotions automatically.
• B. Performance Improvement Plan; used to address ongoing performance gaps with a structured plan.
• C. Starting a new hiring process.
• D. Evaluating company-wide training ROI.

Answer: (B)

A Performance Improvement Plan is a formal, time-bound process designed to help an employee close ongoing performance gaps through a structured plan. It lays out specific expectations, measurable goals, the actions the employee should take, and the support the organization will provide, such as coaching or targeted training. Regular check-ins and progress reviews are built in so both sides can monitor improvement and adjust the plan as needed. If the required improvement isn’t achieved within the defined timeframe, the plan typically outlines next steps or consequences. This approach directly addresses performance gaps and supports development, rather than awarding promotions, starting new hires, or evaluating the overall ROI of training programs, which serve different HR purposes.