PMP People — Leading Projects Practice Question
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?
⚠ Common exam trap
Watch out — candidates often 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.
Answer choices
Why each option matters
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
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.
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
This approach is detrimental to project success and team dynamics. Unaddressed underperformance can lead to missed deadlines, compromised quality, and increased workload for other team members, fostering resentment and decreasing overall morale. A project manager has a responsibility to proactively manage team performance, not passively observe decline.
- ✓
Initiate a formal performance improvement plan with clear expectations and milestones
Why this is correct
This is the most appropriate and professional first step. A formal Performance Improvement Plan (PIP) provides a structured framework for addressing performance gaps, clearly outlining specific areas for improvement, measurable expectations, and a timeline for achieving them. It also offers necessary support and documentation, demonstrating due diligence and a commitment to the team member's development while protecting the project's interests.
- ✗
Immediately replace the team member with a new resource
Why it's wrong here
Immediately replacing a team member is a premature and often costly action. This approach incurs significant project disruption due to the time required for recruitment, onboarding, and the new resource's ramp-up period, potentially delaying project milestones. It also bypasses the opportunity to coach and develop an existing team member, which is a key project management responsibility.
- ✗
Escalate the issue to human resources for termination
Why it's wrong here
Escalating directly to HR for termination is an overly aggressive and procedurally unsound response at this stage. Project management best practices and organizational policies typically require documented attempts at performance improvement, such as a PIP, before considering such severe disciplinary actions. Premature termination can expose the organization to legal risks and negatively impact team morale.
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