No, PIP is not an acronym coined by an underground rock band or a banned drug. For the uninitiated, PIP stands for Performance Improvement Plan.
Although globally, structured Performance Appraisal exercises have increasingly become a norm, there has still been a glaring lack of 'Performance Management'.
Infact in many small to mid-sized firms (and even some large ones) that I have come across, Performance Appraisal time is treated more like a fault finding mission or worse still, a witch hunt. The reason is very apparent: many organizations have in the recent past used Performance Appraisal time to initiate and justify layoffs. This is fine when there is a strong performance related reason to retrench an employee, but when an employee has every reason to believe and is also possibly able prove that his/her performance has been as per or above the required standards, then the management is rightly perceived as playing the employees 'for a fool'.
Over time, the value of the PAS within the organization declines significantly
Why does this happen you ask?