A Performance Improvement Plan is a tool used by managers to help underperforming employees meet job expectations. A PIP outlines specific areas where performance needs to improve and sets measurable goals and a timeline for achieving these improvements. On the other hand, an Individual Development Plan is a collaborative document created by the employee and manager that outlines career development goals and the steps needed to achieve them. While a PIP is typically used to address performance deficiencies, an IDP is used to foster growth and development, regardless of the current level of performance.