Often in an organization, we see that the concepts of performance management and performance appraisal are used interchangeably. But little do we realize that both the concepts are very different from each other. The reason for this confusion is that both the concepts deal with evaluating performance and both come under the same umbrella term of the performance management system. Let us start by defining both the concepts first. Show Performance management refers to the set of activities and tasks that make sure that the employees meet their goals on time. The goals need to be aligned with the objectives of the organization. Performance management ensures the efficiency and effectiveness of the performance of the employees when the goals are reached. Performance management has a holistic approach in the sense, it analyzes employee performance keeping in mind the development needs of the employee & organization. Performance appraisal, on the other hand, is nothing but the evaluation of an employee’s performance. Feedback forms are given to the employee. After the employee has given self-feedback, the manager gives a final review. Performance appraisal also deals with the evaluation of an employee’s competencies such as commitment to the organization’s core values, ability to take initiatives, responsibility for tasks, strengths, and weaknesses, skill set and training, etc. While both performance management and performance appraisal deal with the performance of the employees, we are going to look at the key aspects that differentiate performance management and performance appraisals:
Although organizations are looking for different processes to evaluate employee performance, there is obviously no one system that fits all. To delve deeper into the differences let’s look at some of the various outcomes of performance management and performance appraisal to understand the differences clearly.
Conclusion Every organization has its own unique set of objectives and core values. Performance management ensures that goals and objectives are established clearly and there is a continuous feedback mechanism in place. Appraisal on the other hand, is a part of the whole performance management process but however, performance management is more flexible and multi-dimensional in terms of communication. Compared to appraisals, performance management takes a very holistic approach by not just limiting itself to salary revisions and compensation. Performance management manages employee goals effectively. There is a continuous feedback mechanism in place. There is better employee engagement because there is more recognition of employee’s work and rewards are given whenever necessary. Every organization must ideally focus on employee performance and engagement with a holistic approach. While performance appraisal is mandatory in an organization, creating developmental strategies for improving the employee’s performance and productivity after the appraisal process is also necessary. This ensures better business productivity. What do you call the process of evaluating employee performance?A performance evaluation, also called a performance appraisal, is the process of assessing your employees' success at their jobs. Organizations often use these evaluations to determine whether a person is fit for a promotion or raise.
What is the process of evaluating and employees performance of a job in terms of its requirements?The term performance appraisal refers to the regular review of an employee's job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee's skills, achievements, and growth, or lack thereof.
Which method is used for employee evaluation?360 Degree Feedback
This is the most used method in organizations to evaluate employees' performance.
What is the performance appraisal?Performance appraisal is a process for evaluating and documenting how well an employee is carrying out his or her job. It is part of a company's performance management system. Performance appraisals are based on the employee's progress against goals set once a year with his or her manager.
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