Performance management deals with ensuring effective resource use to achieve better organizational output. It evaluates performance at individual, team, and organizational levels against goals. Performance appraisal evaluates individuals based on predetermined standards like efficiency, attitude, and output. It assesses past performance only, while performance management also considers present and future. Performance management is a continuous, flexible, and qualitative process involving all departments that aims to improve performance through communication. Performance appraisal is a periodic, quantitative process conducted by HR to rate individuals against set standards.