Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2025

Abstract

At Barton Creek Technologies, Anna Chen, the chief human resources officer, faces a dilemma over the company’s performance improvement plan (PIP). Introduced as a supportive tool to rehabilitate struggling employees, the PIP has widely become perceived as a punitive mechanism. An internal audit revealed that only 15% of employees placed on PIPs complete them, while 60% are terminated and 25% go on stress-­related medical leave, often not returning. Managers admit they lack the training to implement PIPs effectively, and employees describe the plans as stigmatizing and demoralizing. Chen is torn between reforming the program into a mentorship-based system—requiring significant investment and cultural change—or leaving it untouched to avoid straining resources and leadership goodwill, especially amid looming acquisitions and tight budgets.

Discipline

Human Resources Management | Organizational Behavior and Theory

Research Areas

Organisational Behaviour and Human Resources

Publication

Harvard Business Review

Volume

103

First Page

137

Last Page

141

ISSN

0017-8012

Publisher

Harvard Business Review

Copyright Owner and License

Authors

Additional URL

https://hbr.org/2025/11/case-study-should-a-chro-abandon-performance-improvement-plans

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