what does PIP do
ensures that the organisation has the correct staff to enable it to perform effectively
what is PIP
a plan which details the suggested quantity, quality and type of employees a business requires now and in the future and how this demand is met
Advantages of PIP
Helps the business to be prepared for external circumstances
Prepared for retirement if have aging senior management by training up junior managers to take their place
Business in better position to take advantage of opportunities
Disadvantages of PIP
Doesn’t take account the behaviour of employees
Changes in external environment can make it difficult to accurately predict future HR requirements
HR have to be careful future plans do not demotivate staff or cause industrial difficulties
Factors that determine decisions about PIP
Succession planning, Skills Audit, Staff training requirements, Future needs of the organisation
Succession Planning
Facilitates identification and training of selected staff to undertake roles in the future
achieved through training and development of member so they can easily assume future role
failure to plan may cause operational difficulties
Skills Audit
to review all skills, experience, qualifications and related factors of workforce to anticipate need
should indicate strengths and weaknesses and suggest corrective orders
Staff training development
is summary of training needs
enables workforce to meet business objectives in the most appropriate way
future needs of the organisation
to anticipate gaps in workforce skills
to identify how staff training requirements can be achieved and marketed to future objectives and environmental changes
ensures right people with the right experience and qualifications are in the right position in the future