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?
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.
Why this answer
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.
Exam trap
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.
How to eliminate wrong answers
Option A is wrong because ignoring underperformance violates the project manager's responsibility to address issues proactively; it risks team morale, project delays, and cost overruns. Option C is wrong because immediately replacing the team member without following due process (such as a PIP) can lead to legal repercussions, loss of institutional knowledge, and demotivation among the remaining team. Option D is wrong because escalating directly to HR for termination skips the required progressive discipline steps, including the formal PIP, which is necessary to ensure fairness and documentation before any termination action.