Discuss the principle components of an employee improvement plan

We have learned how compensation can impact performance, and how an effective performance evaluation system can enhance an employee’s productivity. In certain situations, however, an employee’s performance may still not meet expectations, and an employee improvement plan may need to be developed. Discuss the principle components of an employee improvement plan—along with the role of compensation and performance appraisals in that plan—and how this plan should be presented, and discussed, with an employee.