PIPs are very popular in many organizations. The term 'PIP' is generally used
in organizations to highlight certain things regarding employee performance.
Freshers as well as new employees often get confused and worried about the
term because it means a lot to their current job and future employment. But
the first question that comes to their mind is what exactly the full form of
PIP is?
In this article, we have briefly covered the most important topics about PIP,
such as PIP full form, what is PIP, HR's role towards PIP, how PIP is
established, and more.
What You Will Learn
What is the full form of PIP?
The meaning or full form of PIP is “Performance Improvement Plan”. It is also referred to as a performance action plan. This is because an
action is taken on the basis of PIP to meet specific job goals.
PIP is one way to ensure that every employee is working with maximum potential
and if they are not, further steps will be taken to address these issues. PIP
outcomes or actions may vary depending on the job title and from one company
to another.
The full form of PIP can be explained as:
| P | Performance |
| I | Improvement |
| P | Plan |
Let’s talk about what the PIP is:
What is PIP?
PIP is a formal report, which highlights some of the issues that must be fixed
with the goals to be achieved by the employee/employees in order to achieve a
decent balance in the company. In simple words, it is a tool that shares
performance deficiencies with employees and gives them an opportunity to
overcome and succeed.
Can a PIP lead to termination of employment?
One of the most common questions is whether documenting an employee's
performance in a PIP can lead to the termination of a job? The simplest answer
to this question is - 'It depends'. In particular, PIP is often the first step
that employers take and officially mentions key objectives where an employee
is not doing as expected or according to the company's goals. It can also be
used to address behavioral related concerns.
If there are minor concerns in the PIP, some official negotiations and
meetings may be the next step where an employee will be asked to fix all such
issues. In addition, some training or classes may be provided to improve
overall performance. As a result, further performance will be under close
monitoring and an employee will have to correct them. Besides, if there are
concerns about very bad behavior or if an employee breaks the policies of the
company concerned, possible actions such as transfer, demotion, or termination
can also be taken.
HR’s Role in PIP
HR has the most important role in PIP. HR is the main person who has the right
to make the final decision. If a PIP is created for an employee, HR takes
information related to the employee from the managers and discusses further
action. HR can decide whether an employee should be given the appropriate
assets for further improvements, such as training, or should be fired.
However, to overcome such situations in most cases, HR works closely with line
managers to encourage the employee and eliminate anticipated
deficiencies.
How is a PIP created?
Typically, three people are involved in setting up a PIP, such as HR,
managers, and employees. The following steps are followed to make a PIP
properly:
Determining a PIP
PIP is used to help employees improve their performance and meet company
goals. This is not the way for frustrated managers to take advantage of
terminating employees from their jobs. Therefore, HR needs to assess PIP and
determine further processing.
Developing a Draft Plan
Once a PIP is created, the manager is required to make a draft plan regarding
performance deficiencies. A draft plan also includes details of how some
reforms will be implemented and how long it will take. In addition, it may
also include details specifying conditions regarding demotion, termination, or
termination if certain performance levels are not met.
Reviewing the Plan
HR then reviews the draft plan and ensures that the plan is attainable and
appropriate. HR also makes sure that there is no purpose to just terminate the
employee. HR can also remove any bias against the employee.
Implementing the Plan
Once HR has reviewed the plan, the next step is to meet the employee and
discuss plans and expectations. HR can also make further modifications based
on employee feedback if it is valid on the manager's and HR's point of view.
Monitoring Plan Progress
The manager works closely with the employee and ensures that all plans are
followed towards progress. All meetings or training should take place as per
the scheduled time and should be done within the specified period of time. All
further performance will be measured accordingly.
Making Plan Conclusion
If an employee does their best to meet the objectives of the plan and to
address performance issues, the employer may possibly discontinue the PIP and
allow the employee to continue working toward the company's goals. In
addition, the employee may be given more time to succeed. On the other hand,
if the employee fails to meet the objectives, a possible demotion or
termination may be considered with the closure of the PIP.
Other Forms of PIP
PIP may have many other full forms depending on the field or category where
the term PIP is being used. Some other popular full forms of PIP in different
categories are tabulated below:
| Category | Full Form |
|---|---|
| Jobs | Personal Information Processing, Performance Incentive Points |
| Programming | Pip Installs Python, Pip Installs Packages |
| Software | Preferred Installer Program |
| Video | Picture In Picture |
| Accounting | Price Interest Percentage, Purchasing Invoice Problem |
| Insurance | Personal Insurance Protection |
| Stock Exchange | Personal Investment Plan, Personal Interest Plan |
| Defense | Product Improvement Plan (or Program, or Proposal) |
Summary
PIP (stands for ‘Performance Improvement Plan’) is an effective way to improve
the overall performance of employees. This can either be helpful to eliminate
minor issues at the surface level or terminate the job if it fails to meet the
employer's expectations. It is better that you do not give your employer a
chance to come up with a PIP.
What others reading:
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