Potential for Improving Performance (PIP)
In his book, Human Competence, Tom Gilbert introduced the Human Performance Improvement concept of PIP, or potential for improving performance. This idea focuses around an organization visualizing the highest potential for improving its performance. PIP presents an avenue to measure exemplary performance and create the prospect of continuous performance improvement that typical benchmarks might obstruct. PIP is a conceptual tool that measures this prospect for improvement.
The process of PIP is undergone by first deciding the specific performance that should be measured. Afterward, the process for measuring exemplary performance and actual performance is decided upon. Next, the exemplary performance and the average performance will be measured based on these decisions. The measurements are then expressed and compared as a ratio, which must be a specific accomplishment. PIP is expressed as:
The lower the PIP ratio, the more ideal the environment. A competitive organization or group of people contains a low PIP. The most ideal PIP ratio is 1. The ratio is almost always relative to the situation and can be measured at the client’s or analysts highest requested degree of precision and accuracy. Large ratios suggest that performance can be improved by bringing the average performance closer to the exemplary performance. As previously suggested, small ratios suggests that there is little potential for improvement in that specific performance.
A low potential for improving performance (PIP) is typically due to the jobs containing a low difficulty and/or very repetitive requirements. Another reason for a low PIP is attributed to exceptional management, which instills a high quality of performance. Finally, competitive and demanding jobs are known to have a low PIP due to the employees’ need to aggressively participate in the industry to keep their jobs or stay relevant.
In his book, Human Competence, Tom Gilbert introduced the Human Performance Improvement concept of PIP, or potential for improving performance. This idea focuses around an organization visualizing the highest potential for improving its performance. PIP presents an avenue to measure exemplary performance and create the prospect of continuous performance improvement that typical benchmarks might obstruct. PIP is a conceptual tool that measures this prospect for improvement.
The process of PIP is undergone by first deciding the specific performance that should be measured. Afterward, the process for measuring exemplary performance and actual performance is decided upon. Next, the exemplary performance and the average performance will be measured based on these decisions. The measurements are then expressed and compared as a ratio, which must be a specific accomplishment. PIP is expressed as:
The lower the PIP ratio, the more ideal the environment. A competitive organization or group of people contains a low PIP. The most ideal PIP ratio is 1. The ratio is almost always relative to the situation and can be measured at the client’s or analysts highest requested degree of precision and accuracy. Large ratios suggest that performance can be improved by bringing the average performance closer to the exemplary performance. As previously suggested, small ratios suggests that there is little potential for improvement in that specific performance.
A low potential for improving performance (PIP) is typically due to the jobs containing a low difficulty and/or very repetitive requirements. Another reason for a low PIP is attributed to exceptional management, which instills a high quality of performance. Finally, competitive and demanding jobs are known to have a low PIP due to the employees’ need to aggressively participate in the industry to keep their jobs or stay relevant.