Performance & Culture • 8 MIN READ
Managing Poor Performance: A Fair and Effective Approach
MAY 30, 2026
Managing underperformance is one of the most difficult aspects of people leadership. Here is a framework that is both fair to the employee and effective for the organisation.
Diagnose before you act
Before initiating any formal performance management process, a good manager and HR partner diagnose the root cause of underperformance. The most common causes are: a lack of clarity about expectations (the employee does not know what good performance looks like in this role), a lack of capability (the employee does not have the skills required), a lack of resources or support (the employee has not been given the tools or coaching needed to perform), or a motivational issue (the employee is capable but disengaged). Each root cause requires a different intervention. Only the fourth is most appropriately addressed through a formal performance improvement process.
The performance improvement plan
A performance improvement plan (PIP) is a structured, time-limited plan that sets out specific, measurable performance expectations, the support the organisation will provide, and the timeline for improvement. A well-designed PIP is a genuine opportunity to resolve the performance issue: it sets clear expectations, provides support, and gives the employee a fair chance. A poorly designed PIP is a paper trail for a predetermined outcome. The difference is whether the plan was designed with genuine intent to support improvement or primarily to satisfy an HR process before a dismissal.
