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Performance
Management
 Performance Management:
Definition
Aguinis:
Performance management is a continuous
process of: 1. identifying, 2. measuring, and 3.
developing the performance of: individuals
and teams and aligning performance with the
strategic goals of the organization.
The definition has two main components:
1.Continuous process
2.Alignment with strategic goals
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1.Continuous process because…
 PM is an ongoing, never-ending process of
setting goals and objectives, done by
1.1. observing performance, and
1.2. giving and receiving feedback and
ongoing coaching.

and
 would require frequent review of employee
progress throughout the year.
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1.Continuous process of observing
performance, Why?*, How?**
Why*?
HOW**?

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1.Continuous process of observing
performance, (Why, How)*
Why? because…
*management wants to see how employees do
their work (performance).
 how do they currently do things and what
can be improved. Observing how an
employee works is one way of improving
his performance >>>

identify areas for improvement, and provide

feedback that can help employees grow and6
HOW?
1. by designing training, or identifying best
practices to improve performance.

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best practices to improve performance.
1.Set clear, measurable goals – no clear
goals>>>nothing to aim for.
Setting clear and measurable goals ensures
that workers 1) understand what is expected
of them and 2) how their work aligns with the
organization's broader objectives.

A structured approach to goal-setting helps to

track progress and identify areas where
improvements or adjustments are needed. 8
best practices to improve performance.
Structured approach (DETAILED MANNER)
Use a structured framework like SMART goals.
Specific: Clear and well-defined, so that
employees know exactly what needs to be
done.
Measurable: Quantifiable criteria that help to
track progress and determine when a goal is
achieved.
Achievable: Realistic, based on the employee’s
abilities and resources, while still challenging.
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best practices to improve performance.
Relevant: Directly related to the employee’s
role and the company’s priorities.
Time-bound: Set within a specific time frame
to create urgency and focus.

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Best Practices
2. Switch to continuous performance
management. (CPM)
 CPM is a modern approach to employee
appraisal and development that focuses on
ongoing communication and feedback
between managers and employees.

According to Matt Gould, “Feedback is a gift”

and the majority of people place a high value
on regular feedback.
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Best Practices
According to Matt Gould, “Feedback is a gift”
and the majority of people place a high value
on regular feedback.(FB)
 FB should be given regularly. FB provided during annual
review may no longer be relevant or useful for the
employee.

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Best Practices
Eric Grant gave a few pointers to help make
the switch:
1. Regular and consistent check-ins between managers and
their reports.
 Review observation reports and provide immediate/regular
FB to employees, such as weekly or monthly one-on-one
meetings, or even shorter check-ins that take place as
needed. The key is that they should be regular, consistent,
and focused on performance.

Advantages of regular check-ins?

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Best Practices
Advantages of regular check-ins:
1. Real time FB.
2. Give employees/management an opportunity to bring up
any issues or concerns that they may have.
3. Provide an opportunity for managers to set goals and track
progress.
4. Help to build trust and create a sense of engagement
between managers and employees.

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Best Practices
Advantages of regular check-ins:
1. Real time FB.
 Employees want to hear about their performance. Provide
immediate specific FB rather than general comments that may
not be useful anymore.
 Real Time Feedback allows people to know issues that they
need to know RIGHT NOW.
 Real-time feedback allows for swift actions and adjustments,
ensuring continuous improvement.

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Best Practices
Advantages of regular check-ins:
2. Regular check-ins give employees/supervisors an opportunity to
bring up any issues or concerns that they may have.
 Employees voice their opinions and thoughts about
management giving managers the opportunity of knowing how
the employee is feeling.
 Employees can even tell management about how the team is
working together. (problems within the team they cannot
discuss with each other without somebody to act as “referee/go
between)

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Best Practices
Advantages of regular check-ins:
3. Regular check-ins provide managers an opportunity to
discuss goals and track progress against specific performance
metrics.

4. Regular check-ins can help to build trust and create a sense of

engagement between managers and employees.
 By having consistent, focused conversations about
performance, managers and employees can develop a better
understanding of each other and what it takes to achieve
success.
 To assist with regular check-ins, FB is given to
employees/managers when it can be most useful.
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Best Practices
3. Use 360-degree feedback
360-degree feedback is a performance
management technique that helps employees
better understand how they’re perceived and
valued by others in their organization across
levels and departments.
How?. …

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Best Practices
How?.
collect confidential, anonymous feedback from
managers, peers, and direct reports (w/c can come
from consumers. (Use feedback questionnaire,
interview.)

360-degree FB
Provides a balanced, and comprehensive view of
employee performance by gathering insights from
multiple sources.
It promotes self-awareness, development, and 19
Best Practices
4. Create an environment of psychological
safety.
 An environment of no fear.
 an environment where employees feel comfortable sharing
their thoughts, concerns, and feedback without fear of
negative consequences.
 people are more likely to engage in open, honest
conversations related to performance, enabling them
to express their challenges, ask for and give help, and
seek clarification on expectations.
 Talk to someone you feel comfortable with where possible,
for example your line manager, another manager or
someone in HR. 20
Best Practices
 the openness fosters a culture of collaboration and
continuous improvement, where workers feel
supported in taking risks, experimenting with new
ideas, and learning from mistakes without fear of
punishment.

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Best Practices
5. Provide training for managers and
employees
 manager training is vital for effective
performance management because it equips
managers, especially new ones, with the
skills and knowledge needed to set clear
expectations, ask effective performance
review questions, provide effective feedback,
and engage employees in meaningful
development conversations i.e. coaching.
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Best Practices
6. Recognize and reward good performance
 Recognizing and rewarding good performance is
sometimes overlooked although’ this is a critical
aspect of effective performance management. (a
little recognition every now and then)
 recognition and rewards reinforce positive
behaviors and achievements, motivating
employees to maintain or improve their
performance and increasing the likelihood they’ll
stay.
Some pointers: Consistency and transparency.
(How)
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Best Practices
6. Recognize and reward good performance
Consistency and transparency.
 define clear and criteria for rewarding employees, based on
measurable and relevant indicators of performance, such as
quality, quantity, timeliness, innovation, customer
satisfaction, and teamwork.
 Clear criteria for rewards and ensure consistency in their
application.
 This approach builds trust and motivates employees
to strive for excellence, as everyone understands that
their efforts and achievements are valued equally.

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Best Practices
6. Recognize and reward good performance
Consistency and transparency.
 Regularly review the reward system to ensure it remains
equitable as the organization evolves.
 A transparent reward system* enables staff to understand
not only their rate of pay, but how any reward system
operates.
 better if employees are involved in the design,
implementation, and evaluation of employees. (solicit
feedback from employees on their preferences,
expectations, and perceptions of the reward system.)
*open and honest practice of effectively communicating the
established criteria, processes, and outcomes associated with
the allocation of rewards and acknowledgment of employee25
Best Practices
6. Recognize and reward good performance
Consistency and transparency.
 Regularly review the reward system to ensure it remains
equitable as the organization evolves.
 A transparent reward system* enables staff to understand
not only their rate of pay, but how any reward system
operates.

*open and honest practice of effectively communicating the

established criteria, processes, and outcomes associated with
the allocation of rewards and acknowledgment of employee
contributions.
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Best Practices
Consistency and transparency in performance management
 A transparent performance management system is one that
clearly defines the expectations, goals, and criteria for
evaluating employees' performance. It also involves regular
communication, feedback, and recognition between
managers and employees.
 Consistency: Have a standard set of core competencies* to
evaluate all employees against is one of the key ways you
can introduce consistency in your employee reviews, as well
as encourage corporate culture and values, which
ultimately strengthen your organization.

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Best Practices
core competencies* Core competencies are the resources and
capabilities that comprise the strategic advantages of a
business.
*communication, teamwork, leadership, adaptability,
customer focus, time management, problem solving, decision
making and accountability

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Best Practices
7. Utilize the right tools
 There are many employee evaluation tools that can be used
to measure and enhance performance. At the most basic
level, performance management can take place on paper,
through an online form, or in a simple database.
 The right tools should be more consistent, fair, and
effective.
 ensure performance standards are known and documented
across the organization such that they can be referenced in
the organization-wide review process.

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Best Practices
7. Utilize the right tools
 There are many employee evaluation tools that can be used
to measure and enhance performance. They can be
purchased from a third-party vendor.
 The best tools for setting and tracking goals are also good
solutions for managing employee performance. (WHY?)
 Employee performance measurement tools should analyze
employee performance and engagement against key
metrics.* (Examples?). These key metrics makes
performance management process more consistent, fair,
and effective.
*Key Performance Indicators (KPI) are performance standards
which should be known to employees.
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Best Practices
7. Utilize the right tools
 key metrics.* (Examples?).
Quantity: The amount of work produced.
Quality: The standard or excellence of work compared to
others.
Efficiency: The ratio of input (time and money) to output
(products or services).
Effectiveness: The impact of the work produced.

Quantity (Can be related to other metrics like absenteeism,

tardiness, loafing)
*performance standards which should be known to 31
Best Practices
8. Be consistent, open and transparent
 Ensuring consistency and fairness in performance
management means applying the same evaluation
criteria, processes, and standards across all
employees, regardless of their role or level.
 essential for creating an equitable system
where everyone feels they are being assessed
on a level playing field.
 maintaining clear and standardized guidelines
helps avoid favoritism, bias, or discrepancies
that might undermine the integrity of the
process. 32
Continuous process
1.1. observing performance (done)
1.2. giving and receiving feedback and ongoing
coaching.
 Frequent, two-way conversations about
performance and development create shared
responsibility and accelerate employee growth and
impact.
 Ongoing coaching and feedback between
managers and employees are integral to employee
performance, development and ongoing
engagement.
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Coaching: means to train, tutor or give instruction.
 Performance coaching refers to the use of various
techniques to continuously stimulate employees to improve
their skills, and gain new skills.
 It is an on-the-job learning process that addresses
weaknesses and cultivates strengths.
 It’s a collaborative process that takes place through the
everyday interactions between: the supervisor/manager
and an employee, AND between employees.
 used to enhance or motivate performance, so that
employees will reach their full potential and promote
individual responsibility and accountability.

https://www.aihr.com/blog/performance-coaching/ 34
Performance coaching:
 is an ongoing process which helps build and
maintain effective employee and supervisory
relationships.
 Supervisors, evaluate and address the
developmental needs of their employees and help
them select diverse experiences to gain necessary
skills.

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36
COACHING.
Elements of coaching acc to Idaho Division of HR
1. Building Trust.
 Trust is key to coaching from both the supervisor and
employee. Develop trust thru open, honest feedback and
respect.
 Trust is also giving freedom to your employees.
 When individuals feel trusted and valued, they are more
likely to go above and beyond to contribute to
organizational success.
2. Defining the Issues.
Seek information about the issue in question. Issues should be
clear to both the supervisor and the employee for better
understanding. The emphasis is not on proving who is right or
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COACHING.
3. Coaching for Success - Taking employees from compliance
to commitment can be difficult. Finding or creating that factor
means sometimes helping the employee get in touch with
what matters to him/her - what are his/her internal goals.
Sometimes this is best achieved through the use of open-
ended questions leading to the employee's self discovery.
4. Creating a Plan of Action - The supervisor and the employee
should jointly create an action plan. The plan should include
performance goals that are simple, measurable and
attainable.

Internal goals?
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FEEDBACK.
Feedback consists of two-way communication.
 Employee feedback provides managers with clues
regarding how they are hindering or aiding their
subordinates' work performance.
 Supervisory feedback should inform, enlighten, and
suggest improvements to employees regarding
their performance.
 Supervisors should describe specific results they
have observed as close to the event as possible so
ideas stay fresh and any needed adjustments can
be made in a timely manner.
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Three main points about feedback (Christopher D.
Lee, as they relate to performance management)
1. Share - When managers share enough accurate
information with employees about the quality and
quantity of their work, employees are more likely to
fully understand what is needed to continue good
performance, correct poor performance or improve
mediocre performance.
2. Seek - Supervisors who actively solicit feedback
from their subordinates discover obstacles to their
success and are able to remove them in a timely
fashion.
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Three main points about feedback (Christopher D.
Lee, as they relate to performance management)
3. Continue - Periodic feedback sessions give the
manager and employee multiple opportunities to
calibrate and recalibrate their joint efforts.
Continuous feedback is required for increased
productivity and successful partnerships.

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Best practices for giving feedback
Employee asking for feedback. Feedback is most useful when
the receiver has expressed interest for it.
Be specific. Identify specific behavior and impacts of decisions
and actions.
Talk about changeable behaviors and actions (attitudes or
personality)
Validate with others, if possible. Check if this is one person’s
impression or an impression that’s shared.
Make it timely. Give feedback at the earliest opportunity
following the behavior.
Check for readiness. Account for the needs of the receiver.
Check for understanding through open-ended questions.
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Best practices for giving feedback
Keep an open mind if there are some valid points
that put your perspective in new light
Focus on continuous improvement and identify next
steps

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Best practices for requesting feedback
Determine if you are ready to be open to feedback
Select a trusted colleague who has experience on the
area of feedback
Describe the benefit to you, them, and the
organization
Be specific about the focus and boundaries of the
feedback

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Best practices for receiving feedback
Listen actively and assume good intentions
Listen for key messages
Clarify what you’re hearing. Ask for specific examples and
specific behaviors.
Ask the feedback provider for ideas about different
approaches you could take
Rephrase what is being said: “This is what I understand you
saying…”
Listen for helpful information (not everyone is skilled at
delivering feedback)

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Best practices for receiving feedback
 Compare the data with other feedback you have received
(from other sources/at other times)
 Consider what you can learn and avoid getting defensive.
 Share actions you will take (if applicable)
 Thank the other person, even if you do not agree or plan on
following their advice
 Give yourself time to process and respond to the feedback
 Consider visible actions you might take to demonstrate that
you heard the feedback
 Ask for ongoing feedback or coaching on next steps and
actions
 Coaching or feedback drives organization and employee
success, but the time to do these are quite hard to find.
 Finding the right opportunity is a key to successful
conversation. 46
Opportunities for informal conversations
During weekly or bi-weekly one-on-ones
After observing performance in a team meeting
After accomplishing results
After missing a deadline
As part of a problem-solving discussion
During new assignments and transitions

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Opportunities for formal conversations
After the completion of a project or during project
planning
During development and career planning
conversations
Follow-up conversations on development plans
Annual Performance Review conversations
Goal setting and mid-year check-in conversations

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Sample questions: Advancement towards future opportunities
How can I best support you in achieving your goals?

Sample questions: Enhancement of employee engagement

What keeps you here?
What do you most like doing?
What do you least like doing?
What contributes the most to your job satisfaction?
How do you like to be recognized?
How might I contribute to an environment where you love
coming to work everyday?
What’s one thing I could do to help you feel more connected
to the team? 49
What’s one thing I can do to help you feel
heard/welcome/valued/included?
What’s one thing I’m doing well that I should continue?
What’s one thing I could do to support you in doing your best
work?

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The definition has two main components:
1.Continuous process (done)

2. Alignment with strategic goals

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2. Alignment with strategic goals
Goals are broad, long-term aspirations that an
organization aims to achieve.

Strategic goals are long-term, big-picture

objectives for an organization. The objective
an organization wants to achieve at the end of
a-three to five-year strategic plan.

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Goal alignment, or strategic alignment, is the
process by which you keep your workforce
working towards your company's overarching
goals*.
Overarching goals –there is a bigger goal and
there are sub-goals.
Subgoals-smaller, intermediate goals
contributing to the achievement of the
overarching goals.

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Overarching goals:
 A major aspiration that the organization intends to
realize under a given strategic direction.
Characteristics of a Sound Goal
 Reflects the Big Picture
 Clearly serves the interests of the organization as a
whole
 Ambitious but attainable in principle
 Achievement of the goal represents significant progress
in the applicable Strategic Direction.
 Relatively long-range and stable over time, until it is
achieved
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Sub-goals:
 A goal component or element that is ambitious,
complex, or difficult enough to warrant its own set of
objectives.
Characteristics of a Sound Subgoal
 Reflects a substantial piece of the Big Picture
 Ambitious —yet attainable.
 Achievement of the Subgoal represents significant
progress toward achievement of the overarching goal.
 Relatively long-range but shorter than an overarching
goal

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Overarching goals and Sub-goals when set,
steps must be taken to ensure that employees
are informed about what they should be
working on and why.

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What is goal alignment in performance management?
-a strategy to maximize an organization's
performance.
Goals set at an individual and/or team level
contribute to and connect with the organization's
overall mission.

-Alignment with strategic goals.

Performance management requires that managers
ensure that employees' activities and outputs are
congruent with the organization's goals and,
consequently help the organization gain a
competitive advantage. 57
mission.
An organizational mission, also known as a mission statement,
is a brief, broad statement about an organization's goals and
how it intends to meet those goals. It often addresses what
the organization offers and how it hopes to serve its
customers, community, employees, investors or other
stakeholders.

vision
A vision statement details where the organization aspires to
go. Why does your company exist? What do you hope to
accomplish in the next several years?

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In a nutshell performance management is:

1. planning work and setting expectations

2. continually monitoring performance
3. developing the capacity to perform
4. periodically rating performance in a
summary fashion and
5. rewarding good performance

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In a nutshell performance management is:
1. Planning is the role of the supervisor.
 He meets with employees to create their performance
plans.
 He establishes measurable goals that align to the
organization's strategic and operational plans and how the
employees will achieve the goals.
 He explains to the employees how their performance
directly impacts the organization.

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In a nutshell performance management is:
2. Monitoring.
 The supervisor monitors employee progress, on a
continuous basis.
 Monitoring gives the supervisor the opportunity to make
corrections/finetune or adjust a timeline if it is needed so
that employees will produce the desired outcome of
successfully achieving the agency's or work unit's goals.
 Monitoring also provides the opportunity for the supervisor
to make employees aware of their progress, whether
favorable or unacceptable.
 Monitoring performance enables the supervisor to identify
the problem early and get an opportunity period in place
well before the rating of record is due.

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In a nutshell performance management is:
3. Developing.
 The supervisor determines from continuous monitoring
whether employees need additional development to
achieve their assigned responsibilities. It is important to
remember that employee development includes not only
remediation but enhancing good performance as well. Types
of development could include
 formal training (classroom)
 informal training (online)
 coaching or mentoring
 new work assignments (additional responsibilities)
 details (within current agency or to an outside agency)
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In a nutshell performance management is:
4. Rating.
 The supervisor uses the knowledge gained from
monitoring the employee's performance during the
appraisal period to compare the employee performance
against the standard,
How important is feedback in this case?

5. Rewarding.
 The supervisor makes meaningful distinctions when
granting rewards. Reward should be clearly
distinguishable between different performance levels that
are fully successful.
 Performance management should support compensation 63
In a nutshell performance management is:
4. Rating.
 The supervisor uses the knowledge gained from monitoring the
employee's performance during the appraisal period to compare
the employee performance against the standard,
How important is feedback in this case?

5. Rewarding.
 The supervisor makes meaningful distinctions when granting
rewards. Reward should be clearly distinguishable between
different performance levels that are fully successful.
 Performance management should support compensation
decisions.

https://www.opm.gov/policy-data-oversight/performance-
management/performance-management-cycle/developing/ 64
Key Terms

Unity of Command. Employee reporting to only one

supervisor/manager to avoid confusion and conflicting
priorities.
Span of control. The number of subordinates the
supervisor/manager has.
Line of command. The line of priority within the organization
that conveys order from top to down.
Division of labor. Concerns the allocation of tasks to various
organizational members or departments.
Centralization. Concerns about the concentration of decision-
making authority at the top levels of organizational hierarchy.
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 Coaching VS Feedback
COACHING FEEDBACK

Part of a sustained given when immediate

relationship between the correction or reinforcement is
supervisor and the employee. required to address particular
The sessions support long- behaviors or results.
term growth and offer
consistent guidance and
support.

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 Coaching VS Feedback
COACHING FEEDBACK

Coaching techniques are feedback is directive, specific,

more collaborative, question- and evaluative. (Negative
based, and supportive. feedback, Positive feedback,
(executive coaching, Negative feed-forward,
performance coaching, team Positive feed-forward)
coaching and virtual Focused on providing
coaching) provides support information about past or
and guidance to help recent behavior.
someone reach those goals.
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 Coaching VS Feedback
COACHING FEEDBACK

Coaching helps employees Feedback delivers clear,

explore solutions and self- actionable insights that
reflection while fostering employees can quickly
independence. It empowers implement, making it a more
employees to take ownership direct interaction.
of their development.

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