Performance management is the process of identifying, measuring, managing, and developing employee performance throughout an organization to achieve goals, while performance appraisal is the ongoing process of evaluating employee performance on a regular basis, such as once or twice a year. Some key differences are that performance appraisal is a system that evaluates past performance in a standardized way, while performance management is a flexible forward-looking process conducted by managers to develop employees for future growth.

1. Simaran Shaheen
Asst. Prof.
GBAMS, Mirzapur

2.  1-Performance management is the
process of identifying, measuring,
managing, and developing the
performance of the human resources in an
organization.Performance management, It
is the process of managing and
developing employee performance
throughout the organization. It aims at
planning, tracking and assessing
employee performance for a specific

3.  2- Performance appraisal, on the other
hand, is the ongoing process of evaluating
employee performance.The process of
evaluating employee performance on a
regular basis is called as performance
appraisal. Although, unlike performance
management, it is restricted to evaluating
past performance and conducted once or
twice a year, depending upon the
organisation’s policies.

4. Key Differences Between Performance Appraisal and
Performance-Management.
The following are the major differences between
performance appraisal and performance management:
 An organized way of evaluating the performance and
potential of employees for their future growth and
development is known as Performance Appraisal. -The
complete process of managing the human resources of
the organization is known as Performance Management.
 Performance Appraisal is a system while Performance
Management is a process.
 Performance appraisal is inflexible, but performance
management is flexible.

5.  Performance Appraisal is an operational tool to improve
the efficiency of employees. However, performance
management is a strategic tool.
 Performance Appraisal is conducted by a human
resource department of the organization, whereas
managers are held responsible for performance
management.
 In performance appraisal, corrections are made
retrospectively. In contrast to performance management
is forward looking.
 Performance Appraisal has an individualistic approach

6. Following is a process diagram that provides a graphical view of
the major differences between the two processes: