Feedback is an important component of a well-implemented performance management system. This feedback should be used in a developmental manner. Specifically, managers can use feedback to coach employees and improve performance on an ongoing basis. This feedback allows for the identification of strengths and weaknesses of employees as well as the causes for performance deficiencies (which could be due to individual, team, or contextual factors).

Of course, feedback is useful only to the extent that remedial action is taken and concrete steps are implemented to remedy any deficiencies. Feedback is useful only when employees are willing to receive it. Organizations should strive to create a “feedback culture” that reflects support for feedback, including feedback that is nonthreatening and is focused on behaviors and coaching to help interpret the feedback provided. Another aspect of the developmental purpose is that employees receive information about themselves that can help them individualize their career paths.