Hi All, I have decided to start a Quarterly Performance Review in which we will shortlist at least two lowest-performing employees from each team and issue one month of PIP to them. The one who is not successful in that one-month observation according to his PIP will be directly terminated.
My idea to develop this is to reduce the inefficiency in teams.
Thus, kindly suggest to me if this method is appropriate or not. Also, guide me with what method I can use for PIP.

From India, New%20Delhi
Dinesh Divekar
Business Mentor, Consultant And Trainer

Dinesh Divekar

Dear Swati,

You appear to have basic confusion on the concept of Performance Management System (PMS). There appears to be zeal of removal of people on account of under-performance rather than measuring the business performance as a whole. Essence of PMS lies in measuring what deserves to be measured. For this, you need to identify the direct and indirect costs associated with each department.

While managing of costs you need to make sure that while reducing one cost, some another cost does not go up. In your case at hand, you would like to reduce to the cost of under-performance however, you could increase cost of recruitment. Have you thought of that? Hire and fire policy looks fine but it makes the employees just zombies. Possibly scare of removal from the job constantly haunt them and it may degrade their morale. Will you be able to measure cost of low morale?

I recommend you taking holistic view before embarking on speedy removal of employees. By the way, earlier I had given threadbare reply on how to establish PMS in a company. The link is as below:


Though the above link pertains to IT company, the reply is applicable to all the industries. In the above link, there are several hyperlinks. Go through all the links patiently and I request you to improve your understanding of PMS. For doubt if any, you may call me on my mobile.


Dinesh Divekar

From India, Bangalore

If You Are Knowledgeable About Any Fact, Resource or Experience Related to This Topic and Want to Be Part of Such Discussions in Future - Please Register and Log In to Cite Community.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server