In a perfect work environment, managers would provide their direct reports with continual feedback. Employee feedback is key today because of the rapid changes occurring in organizations, necessitating that employees continually upgrade their skills. Annual conversations do not meet this need.

However, many managers struggle with this need for ongoing coaching because of the demands on their time, and some lack the required techniques. Employees used to expect to work for a boss. Today, they want and need a coach. They want personal and professional development to help them meet their goals.

Regardless of the strain on their time, better managers know that performance management - including performance appraisals supported by ongoing coaching and counseling is the essence of their jobs as managers.

These better managers know that performance management:

Establishes and clarifies expectations—Research has shown that only half of employees understand clearly what is expected of them. Effective managers align employees' expectations with their responsibilities as managers and the organization's goals.

Provides employees with feedback on the spot—when they most need it—to help them perform better and exceed their capabilities. Employees who agree that their manager provides them with timely and meaningful feedback are about three times more likely to be engaged.

Creates individualized accountability - less than half of employees feel their manager holds them accountable for their performance responsibilities. The essence of performance management leading to performance development is built on accountability.

Performance appraisals supported by daily coaching and counseling inspire employees to perform to their capabilities, resulting in a win-win-win - for the organization, the employee, and, not least, the least of which is the manager who is building a high-performing team.