A performance plan consists of the goals that an employee needs to achieve, what he should do to achieve those goals and the systems to measure performance. A supervisor goes through the performance plan with an employee at the start of a performance period.
A performance plan clarifies the organizational and individual goals an employee should meet. This helps avoid ambiguity regarding the expected performance. It also clarifies the actions an employee needs to undertake to meet the set goals. This helps the employee plan work strategies and set up his own work plan.
A performance plan also contains methods of measuring performance to determine if the employee has met the set objectives and indicates how long it should take to meet the goals.