A basic performance plan includes clearly written, measurable and achievable expectations for an employee's performance over a specified period of time, according to the U.S. Office of Personnel Management. It highlights goals essential to acceptable performance, establishes a plan for monitoring progress and provides the basis for performance evaluation.
Performance plans include aspirational goals that focus on areas for additional training and improvement. Plans also provide an opportunity to coordinate and highlight individual employee goals in relation to the organization's broader goals, making the performance plan both a teaching tool and the basis for employee accountability.
A plan for monitoring progress is vital to the effectiveness of a performance plan, reports Success Factors. Such a plan allows the supervisor and employee a shared opportunity to identify areas where the employee requires additional resources or supervisory support as well as areas where performance expectations need adjustment. Performance plans require thoughtful preparation on the part of the supervisor and employee, including the identification of key job responsibilities, new potential projects and areas for further training.
Performance plans establish a path for the employee's career development and advancement. Additionally, the existence of a clearly written and mutually understood plan benefits both parties if legal disputes arise.