Performance Management ensures that the employee and the organization are focused on the same priorities. It touches on the organization itself by improving production and reducing waste. It helps the employee or individual set and meet their goals and improves the employee-manager relationship. Performance management is key to keeping an organization and employees aligned, which improves performance and productivity.

When changes occur, Performance Management helps the transition be smoother and less hectic. It helps the organization and employee have a streamlined relationship, which improves communication and interactions between the two groups. Through feedback and coaching, performance management will help close any gaps in an employee's skill set and make them a more valuable employee.