A key reason why it is crucially important to monitor performance and tackle it when it falls below what is required is that this is the best way to support the employee to make the necessary improvements before it becomes a more serious issue.
However, if the employee does not/cannot make the necessary improvements then the next stage would be a formal performance management process, see FAQ: Performance management.
For further information see:
APR1: How to Guide: conducting appraisals
APR2: Example employee appraisal form
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