Which statement correctly distinguishes a PIP from a PDP?

• A. A PDP is used to add punitive actions to underperformers.
• B. A PDP focuses on remediation; a PIP focuses on growth.
• C. A PIP targets remediation of underperformance with concrete steps and timelines; a PDP focuses on ongoing development tied to performance gaps.
• D. A PIP is only for new hires.

Answer: (C)

The main idea is that PIP and PDP serve different purposes in performance management. A PIP is a formal, time-bound plan aimed at remediating underperformance. It lays out concrete steps, specific timelines, and measurable milestones to help an employee get back on track, with clear implications if the targets aren’t met. A PDP, on the other hand, is about ongoing development—it's designed to close identified performance gaps and foster growth over the long term, focusing on expanding skills and capabilities rather than correcting a current shortfall.

This distinction is exactly captured by the statement: a PIP targets remediation with concrete steps and timelines, while a PDP focuses on ongoing development tied to performance gaps. The other options mischaracterize the roles: PDP is not about punitive actions, PDP is not remediation and PIP is not about growth, and PIP is not limited to new hires.