Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How Companies Are Using PIP To Humiliate and Get Rid of Workers

Politics / Employment Jun 26, 2015 - 09:08 AM GMT

By: EconMatters

Politics

In my last two posts, I talked about why hiring now takes longer and how some companies use interview to score free consult from job applicants, today I'd like to discuss the increasing popularity of PIP.  This is not your forex trading pip, PIP in the corporate lingo means Performance Improvement Plan.



What's in PIP? 
Any Human Resource (HR) person would preach that PIP is a performance management tool designed to facilitate "constructive discussion" between a staff member and his or her supervisor and to "clarify the work performance to be improved".  PIP typically consists of a summary of an employee's 'guilt' and a list of tasks and milestones to rectify the 'guilty behavior' requiring at least weekly check-in's with HR and manager to report progress.  Although a non-public process between employee, manager and HR, PIP is quite humiliating and a definite morale killer.

PIP or Quit? 
PIP is very ineffective in actually 'improving performance'.  Employees (particularly the ones that are highly skilled and experienced) on PIP most likely would quit before the completion of PIP thus defeating the entire purpose (I personally would think twice retaining somebody who's willing to go through PIP and stay).

Since PIP is an official and formal HR process (i.e. included in employee record), it is typically a last resort and rarely used.  In fact, most managers understand or should have the IQ to know that if you put an employee on PIP, be prepared for that employee to quit (leaving all the work to the manager or other team members, not to mention disrupting the team product delivery project plan).

New Love of PIP
Up until about five years ago, managers usually had favored the more informal approach such as a good long sit-down talk, followed up by more short discussions for feedback. Nevertheless, my observation is that in recent years, PIP seems to have become a popular tool to the new generation middle managers for the purpose of a "homogeneous team".  That is, PIP has become an acceptable and common practice to get rid of the "black horse" employee that is typically high-skilled and highly productive, thus at odds with a team of mostly mediocre members (including the manager) and hard to terminate based on pure work performance.
 
The loophole is that there's not a clear definition of behavior or performance that warrants a PIP.  Let me just cite one example.  

Throughout the years, I have maintained a small network of friends (around 8 people in various fields including IT, Marketing, and Finance) with 10-30 years of professional experience.  We work for different companies and usually feel safe discussing things such as work projects and politics with each other.  Within this small 8-person network, all of a sudden, four got put on PIP within the past 3 years (what are the odds?) for some highly subjective and vague "violation" like "unprofessional conduct".  These four all have something in common:
  1. A newly-promoted Gen X or Y direct manager that's less experienced 
  2. All four have the most company seniority within their respective teams outranking even their managers
  3. All four are highly skilled and have a proven track record of high performance and high productivity    

I don't think this is a coincidence or some random occurrence.  For a professional with 20 years of experience, going through PIP is like a slap on the face.  Needless to say, all of them quickly got the message and landed a new job shortly after the PIP started.  Of course, their managers are not all too shy about calling and asking for work-related things long after they quit.      

Why New Gen Managers Love PIP

I'm not sure how corporations are training managers these days, but I find it very peculiar that any manager with half a brain could think PIP is actually an effective managerial tool and be used so often. So here is what I think happening (otherwise, it means companies are now all run by real morons).    

As we noted before, the post-boomer new generation middle managers tend to rely on tools favoring standardization in the decision-making or project delivering process.  They tend to be ruthless ('relationship' means very little), and like to band together and act like a "Fraternity Group".  PIP, in essence a group-decision-make tool without clear boundaries and definitions, is perfect for them to use getting rid of an otherwise hard-to-terminate high-performance employee with low risk of a lawsuit  (The PIP employee is usually required to sign the PIP to show "understanding" and "commitment to the plan" thus agreeing to the 'guilt' summarized on PIP).  .

Start of Decay?
I think the worst part in it all is that this is taking place with blessings from the corporate higher-up. These people are brain-washed by the almost two-decade-long propaganda to give special consideration to Gen X and Y -- 'The Hope of Corporate America after Boomers'.  In most corporations, the higher-up is still mostly the boomer generation with Gen X or Y kids, so letting the new generation managers do whatever including losing valuable employees is like giving their kids a break (on a psychological level).

The U.S. has long worried about China taking over America in talent, economy, military, etc.  From what I've observed in Corporate America, this may not be an idle threat.

By EconMatters

http://www.econmatters.com/

The theory of quantum mechanics and Einstein’s theory of relativity (E=mc2) have taught us that matter (yin) and energy (yang) are inter-related and interdependent. This interconnectness of all things is the essense of the concept “yin-yang”, and Einstein’s fundamental equation: matter equals energy. The same theories may be applied to equities and commodity markets.

All things within the markets and macro-economy undergo constant change and transformation, and everything is interconnected. That’s why here at Economic Forecasts & Opinions, we focus on identifying the fundamental theories of cause and effect in the markets to help you achieve a great continuum of portfolio yin-yang equilibrium.

That's why, with a team of analysts, we at EconMatters focus on identifying the fundamental theories of cause and effect in the financial markets that matters to your portfolio.

© 2015 Copyright EconMatters - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

EconMatters Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in