Difference Between Performance Appraisal and Performance Management

The main difference between performance appraisal and performance management is that performance appraisal means how to gauge the actual performance of an employee on a regular basis, while performance management means identifying the performance of individual assets of an organization.

Performance appraisal versus performance management

Performance appraisal is a process that indicates how to evaluate progress by considering or determining the actual performance of the worker frequently, while performance management is the process that is used to recognize, calculate and develop the return on human capital of an organization. organization. Performance appraisal is an annual method, while performance management is an ongoing method that ultimately isn’t happening. Performance appraisal is a system, while performance management is a proper process. The nature of performance appraisal is inflexible, while the quality of performance management is flexible.

Performance evaluation shows a rational calculation of the performance of a singular being formed on static values, while performance management mentions the performance of an individual power in operation of an organization. Performance appraisal has the operational type of class to increase the competence of the workers while performance management has a tactical course to increase the ability of the workers. Performance appraisal is owned by the human resources department, while performance management is owned by managers. Performance appraisal motivates measurable characteristics, while performance management motivates quality characteristics.

The performance appraisal method is individualistic, while the performance management approach is holistic. Performance appraisal correction is retrospective, while performance management review is prospective. Performance appraisal is not related to business needs, while performance management is concerned with business needs. Performance appraisal is often connected to reimbursement, while performance management is not usually connected to compensation. Performance evaluation is an individual process, while performance management is the collective process.

Comparison chart

What is performance appraisal?

Performance appraisal is a procedure that means how to evaluate the progress considering or determining the actual performance of the worker frequently; Performance evaluation is an annual procedure. Performance appraisal is not an appropriate method; it is just a system, the nature of performance evaluation is stubborn and it also indicates an ordinary calculation of the performance of an individual that is being set to fixed values. Performance appraisal has a kind of job class to increase the ability of employees.

The performance appraisal is maintained by the human resources department, the performance appraisal is encouraging in quantifiable characteristics, and the performance appraisal method is distinctive. The rectification of the performance appraisal is thoughtful, the performance appraisal is not related to business needs, and yet the performance appraisal is usually attached to the payment. Performance appraisal is also a separable process.

While performance appraisal assesses the services, successes, and development of a company employee, and companies consume performance appraisals to respond to their employees’ work and to provide valid salary increases and bonuses, as well as decision-making closure of the company. employee. Performance appraisal offers companies a way to decide which employee is paying the most time for company progress. Therefore, corporations can reward their top performing employees accordingly. There are many performance appraisal ways to praise the employee’s performance, and they are classified into two categories, the first is the traditional method and the second is the modern method.

What is performance management?

Performance management is the procedure used to identify, calculate and increase the enactment of the human wealth of an organization. It is a constant process that ultimately is not happening. Performance management is an applicable procedure. The nature of performance management is agile. Performance management indicates the performance of a separate power working in an organization. Performance management has the kind of strategic class to increase the ability of workers.

Performance management is maintained by the managers of the organization, and performance management is encouraging in quality characteristics, performance management procedure in general. Performance management modification is possible. Performance management is related to business requirements. Performance management is not normally connected to compensation, not like performance appraisal because it is usually connected to agreement, whereas performance management is the collective process.

Managers are using performance management tools to modify workflow and draw some insights that will help employees achieve their goals. The performance management method enables workers to complete to the best of their abilities to produce the most important feature work in a more professional and successful manner. Performance management focuses on accountability and creates a clear understanding of expectations. There are five vital critical steps of the performance management procedure, the first is planning the employees on the goal, the second is the monitoring of the workers in relation to the objectives, the third is developing, the fourth is the qualification and the fifth is rewarding.

Key differences

1. Performance appraisal is an arrangement, while performance management is a method.
2. Performance appraisal is an inflexible term; on the other hand, performance management is a flexible term.
3. Performance appraisal has an operational class; Conversely, performance management has a strategic level.
4. Performance evaluation is done annually; on the other hand, performance management is an ongoing process.
5. Performance appraisal is run by the human resources department, while performance management is run by managers.
6. Performance evaluation is an individual process; on the other hand, performance management is the collective process.
7. Performance evaluation is not about business requirements; rather, performance management is related to business requirements.
8. Performance evaluation focuses on quantitative characteristics; on the other hand, performance management focuses on qualitative characteristics.

Final Thought

Performance appraisal and performance management play an important role in the success of any organization. The words performance appraisal and performance management are diverse, and respectively, performance appraisal is a part of performance management. Therefore, we can say that performance management is a larger term that involves some steps.