Performance management and performance appraisal are different processes. Performance appraisal is restricted to evaluating past performance once or twice a year, considers it a system, and takes an individualistic approach. It determines promotion and compensation. Performance management is an ongoing, continuous process involving multiple stakeholders that fosters growth and is strategic and flexible according to organizational values. While performance appraisal is conducted by HR, performance management identifies, evaluates, and develops employee performance to help the organization achieve its goals and benefit employees.