Ensuring that an employee and the organization have similar priorities is the goal of performance management. By increasing output and decreasing waste, it has an impact on the company as a whole. It enhances the working relationship between the employee and manager and assists the person in setting and achieving goals. Performance management is essential for maintaining a company’s and employees’ alignment, which raises output and performance. Performance management makes transitions easier and less stressful when they happen. It facilitates a more streamlined relationship between the employer and employee, enhancing exchanges and communication between the two parties. Through coaching and feedback, it will help fill in any skill gaps and increase an employee’s value as a worker.