It then generates ideas for modifying organisational behaviour and infrastructure which are put into place to achieve higher output.
Including rewards in a performance, improvement solution is a proven strategy to engage employees and align them with the company's goals.
Non-cash awards are thought to motivate higher achievement of and drive greater returns on investment.
[citation needed] There is evidence that monetary rewards are not effective outside the context of very rote work.
[3][4] This may be because the employee is failing to meet the goals for their role or due to other problems such as poor behavior or interpersonal skills.
[3][4] The expected improvements should be specific and measurable[3][4] and consequences for failing to meet them might include a transfer, demotion or termination.
[6] According to Donald L. Kirkpatrick, a PIP should be developed by the manager and the employee together, because it requires both of their participation in order to be successful.
Another way to think of performance improvement is to see it as improvement in four potential areas: Business performance management and improvement can be thought of as a cycle: In his study of innate human needs, psychologist Abraham Maslow in his concept of a hierarchy of needs identified esteem and social fulfillment, garnered by recognition by family and peers, as a basic human need, and therefore able to be tied to structured programs that increase performance.