Coaching is a collaborative, ongoing process in which managers interact with their direct reports and take an active interest in their performance. In general, coaching involves directing, motivating, and rewarding employee behavior. Coaching is an ongoing function that involves observing performance, complimenting good work, and helping to correct performance when it does not meet expectations.

Coaching is also concerned with long-term performance and involves ensuring that the development plan is being achieved. Being a coach is similar to serving as a consultant, and for coaching to be successful, a coach must establish a helping relationship. Establishing a trusting relationship is particularly important when the supervisor and direct report do not share similar cultural backgrounds, as is often the case in global performance management systems.

In these situations, a helping and trusting relationship allows for what is labeled cultural transvergence in performance management. This means that cultural differences are discussed openly, and alternate practices, which enhance individual and team performance, are implemented. Coaching requires a lot of effort from the managers. But when done right, mangers become performance management leaders and an organization can create a coaching culture.