Is a PIP just used as a formal step before a termination in most cases?

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Yes.

Yes

Yes

It depends on the subject of the PIP. They usually have a good reason. If the subject can get over the negative connotations, take on board the changes you can not only survive but thrive.
I was on one several years ago. Changed my approach at work, things changed and I was even subsequently promoted. It is not an automatic exit unless you are unwillingly to change.

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