What does a performance improvement plan (PIP) entail?

A performance improvement plan (PIP) is a formalized and structured approach aimed at addressing specific performance issues within an organization. It typically includes a detailed outline of the employee's performance deficiencies, clear objectives for improvement, and actionable steps that the employee must take to enhance their performance. Additionally, a PIP often includes metrics for measuring progress, timelines for achieving the set objectives, and regular feedback sessions to monitor the employee's development.

This structured format differentiates a PIP from a casual conversation, which may lack the specificity and accountability that a formal plan provides. It also stands apart from an annual review process, which generally evaluates past performance without a proactive approach to addressing and enhancing current issues. Lastly, it is not a standard operating procedure applicable to all employees, as a PIP is typically tailored to the unique circumstances of an individual employee struggling with performance. Thus, option B accurately encapsulates the essence of a performance improvement plan.