Performance Management is making sure 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. The key in keeping an organization and employee aligned, which improves performance and productivity, is Performance Management. When changes occur Performance Management helps the transition to be smoother and less hectic. It helps the organization and employee have a stream-lined relationship which improves communication and interactions between the two groups. It will help close any gaps that exist in an employee's skill-set and make them a more valuable employee through feedback and coaching.