Appraisals and reviews aren't enough to improve employee performance. Coaching and working with employees is an important part of performance management. Research shows that the quality of the relationship between manager and employee is a major predictor of an employee's intentions to remain in an organization. Coaching helps managers talk with subordinates about their developmental needs. There's a potential big payoff in developing positive relationships through coaching. There seems to be little question that coaching is a valid method of producing desired change with leaders. The work of truly effective coaching within organizations involves much more than goal-setting. It involves unleashing the human spirit and expanding people's capacity to achieve stretch goals and bring about real change. This does not start with simple coaching techniques like setting goals, motivating people and giving feedback. It starts with considering and altering the underlying context in which these occur.