The correct next step is to initiate a formal Performance Improvement Plan (PIP) with clear expectations and milestones. This is because the PMBOK Guide’s principles for leading the team require a structured escalation process: after informal coaching fails to resolve the underperformance, the project manager must move to a documented, formal approach that protects both the team member’s right to improve and the project’s objectives. On the PMP exam, this scenario tests your understanding of the “Manage Team” process and the distinction between informal feedback and formal corrective action. A common trap is choosing to reassign or terminate the team member immediately, but the PMI framework emphasizes progressive discipline and giving the individual a fair chance to meet defined milestones. Remember the memory tip: “Informal first, then PIP—don’t skip the formal step.”
PMP People — Leading Projects Practice Question
This PMP practice question tests your understanding of people — leading projects. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project team member has been underperforming for several weeks. You have had informal conversations with them, but performance has not improved. What should you do next?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Initiate a formal performance improvement plan with clear expectations and milestones
Option B is correct because after informal coaching has failed, the project manager must follow a structured performance management process. Initiating a formal Performance Improvement Plan (PIP) with clear expectations, measurable milestones, and a defined timeline aligns with the PMBOK Guide's principles for leading the team and managing performance issues. This approach provides the underperforming team member with a documented opportunity to improve while protecting the project's objectives.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Ignore the underperformance and hope it resolves on its own
Why it's wrong here
Ignoring performance issues can affect team morale and project success.
✓
Initiate a formal performance improvement plan with clear expectations and milestones
Why this is correct
A formal plan provides structure and documentation to help the team member improve or justify further action.
Related concept
Read the scenario before looking for a memorised answer.
✗
Immediately replace the team member with a new resource
Why it's wrong here
Replacement should be a last resort after attempts to improve performance have failed.
✗
Escalate the issue to human resources for termination
Why it's wrong here
Termination is too drastic without a formal performance improvement process.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse 'escalating to HR' (Option D) as the correct next step, but the PMP exam emphasizes that the project manager must first exhaust all available performance management tools, including a formal PIP, before involving HR for termination.
Detailed technical explanation
How to think about this question
In the PMBOK Guide's 'Manage Team' process, performance issues are addressed through a systematic approach: first informal feedback, then a formal PIP with specific performance metrics and review dates. The PIP serves as a documented intervention that protects the organization from wrongful termination claims and gives the team member a clear path to recovery. In real-world scenarios, a PIP typically includes weekly check-ins, defined KPIs (e.g., task completion rate, quality metrics), and a 30- to 90-day improvement window before further action is taken.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
People — Leading Projects — This question tests People — Leading Projects — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Initiate a formal performance improvement plan with clear expectations and milestones — Option B is correct because after informal coaching has failed, the project manager must follow a structured performance management process. Initiating a formal Performance Improvement Plan (PIP) with clear expectations, measurable milestones, and a defined timeline aligns with the PMBOK Guide's principles for leading the team and managing performance issues. This approach provides the underperforming team member with a documented opportunity to improve while protecting the project's objectives.
What should I do if I get this PMP question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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