Difference between performance management and performance appraisal
By S.SRIVIDHYA
Both the performance management and performance appraisal comes under performance
management systems, the key points and the objectives differentiate them. Both of them
talks about performance of the target and ways to improve them.
Introduction
Performance management deals with ensuring the effective usage of resources to obtain a
better output. It determines the quality of performance by an individual, team,
department, process, project or entire organisation.
Performance appraisal is a method by which the employees are evaluated by the superiors
based on the predetermined standards such as efficiency, attitude, attendance, output,
behaviours, feedbacks from coworkers, etc.,
Definition
Performance management is defined as the process of continuous communication and
feedback between a manager and employee towards the achievement of organizational
objectives.
According to Gomej-Mejia – “Performance Appraisal involves the identification,
measurement and management of human performance in organisation.”
Process
PERFORMANCE MANAGEMENT PERFORMANCE APPRAISAL
Evaluates performance and helps to improve Evaluates performance
Compares and considers past, present and
future
Considers past alone
Individual and team assessment Mainly focuses on individual
No subtypes Traditional and modern methods
Used for formulating strategies Used for estimating result and increments
Anyone can participate irrespective of
category
Usually superiors assess subordinates
Done continuously Done periodically
Instant review/feedback is possible Periodical review/feedback is possible
Qualitative and quantitative approach Quantitative approach
Flexible Rigid
Involves all departments Done by HR department
Transparent and free flow of communication Translucent and partial communication
Makes people feel better and reduce stress Does make people feel anxious and stressful
Can show sense of uniqueness Standards are already available for
implementation
References
https://www.synergita.com/blog/differentiate-employee-performance-management-and-
performance-
appraisal/#:~:text=Performance%20management%20looks%20at%20an,performed%20in%2
0the%20immediate%20past.
https://www.hrtechnologist.com/articles/performance-management-hcm/what-is-
performance-management/
https://www.yourarticlelibrary.com/performance-appraisal/performance-appraisal-methods-
traditional-and-modern-methods-with-example/35492
https://businessjargons.com/performance-appraisal.html
Characteristics of an unsuccessful versus a successful performance management
system
UNSUCCESSFUL PMS SUCCESSFUL PMS
Indefinite structure Fair evaluation and equality
Deviation from goal Continuous improvement and evaluation
Improper implementation Recording data
Lack of communication Synchronization with organisation
Improper identification of performance Identification and communicating
organisational statements
No recognition Proper monitoring, coaching and guiding
Not providing proper feedback sense of shared values, beliefs and
expectations
Inconsistent system Team building and team spirit
Ignoring or not recognising problems Training and development measures
Lack of participants, support, leadership and
resources
Publically rewarding and motivating
Unrealistic expectation Adhere to psychological principles
Implementation failure Keeping professional and not personal
Complexity and inconsistency Using more than 1 rating
Reference
https://engagedly.com/6-most-common-reasons-why-performance-management-systems-fail/
https://www.linkedin.com/pulse/4-characteristics-effective-performance-management-
system-rollins/
https://www.valamis.com/hub/performance-management#performance-management-best-
practices

Performance management and performance appraisal