- A
Document the performance issues and initiate a formal performance improvement plan
After informal attempts fail, a formal plan with clear expectations and consequences is appropriate.
- B
Immediately escalate the issue to the project sponsor
Why wrong: The PM should handle performance issues first; escalation is premature.
- C
Terminate the team member's assignment to the project
Why wrong: Termination should be a last resort after due process, including a performance improvement plan.
- D
Reassign the team member to a less critical role on the project
Why wrong: This avoids the issue and may not address the root cause.
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 team member has been consistently underperforming, missing deadlines, and delivering low-quality work. You have had informal conversations but no improvement. What should you do NEXT?
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
Document the performance issues and initiate a formal performance improvement plan
Option A is correct because after informal conversations have failed to resolve performance issues, the next step in progressive discipline is to formally document the issues and implement a Performance Improvement Plan (PIP). This aligns with the PMI People domain, which emphasizes addressing performance gaps through structured, documented processes before considering escalation or removal.
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.
- ✓
Document the performance issues and initiate a formal performance improvement plan
Why this is correct
After informal attempts fail, a formal plan with clear expectations and consequences is appropriate.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Immediately escalate the issue to the project sponsor
Why it's wrong here
The PM should handle performance issues first; escalation is premature.
- ✗
Terminate the team member's assignment to the project
Why it's wrong here
Termination should be a last resort after due process, including a performance improvement plan.
- ✗
Reassign the team member to a less critical role on the project
Why it's wrong here
This avoids the issue and may not address the root cause.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse 'immediate escalation' (Option B) with proper stakeholder management, when in fact the PM should first follow the documented performance management process before involving the sponsor.
Detailed technical explanation
How to think about this question
In project management, a Performance Improvement Plan (PIP) is a formal document that outlines specific performance gaps, measurable goals, a timeline for improvement, and consequences if standards are not met. This process protects both the organization and the team member by ensuring transparency and providing an opportunity for remediation. Real-world scenarios often involve PIPs as a prerequisite for any adverse employment action, such as reassignment or termination, to mitigate legal risk.
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.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Learn the concepts, then practise the questions
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FAQ
Questions learners often ask
What does this PMP question test?
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: Document the performance issues and initiate a formal performance improvement plan — Option A is correct because after informal conversations have failed to resolve performance issues, the next step in progressive discipline is to formally document the issues and implement a Performance Improvement Plan (PIP). This aligns with the PMI People domain, which emphasizes addressing performance gaps through structured, documented processes before considering escalation or removal.
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.
About these practice questions
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Last reviewed: Jun 24, 2026
This PMP practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PMP exam.
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