Performance Management and Appraisal

Performance Management and Appraisal

The Differentiation between Performance Management and Appraisal

Performance Management	Performance Appraisal
This aids an employee in enhancing and elevating their performance and effectiveness. This assesses an employee's performance with consideration for both the present and the future. This oversees an employee's performance, verifying their achievement of the organization's goals, vision, mission, and core values (Toppo, 2012).	This assesses the employee's real performance, yet it doesn't centre on the employee's performance productivity. This assesses the employee's performance by considering their recent past performance. This objectively examines the employee's performance over the course of a year and provides conclusive feedback to the employee (Awan et al., 2020).

Source : (Osmani and Ramolli, 2012)

Benefits of Performance Management

•  Enhanced Employee Engagement and Motivation

Performance management involves regular communication between managers and employees, focusing on individual goals and growth.

• Getting Better Talent Retention

A robust performance management system demonstrates an organization's investment in its employees' development.

• Setting Clear Expectations and Objectives

Performance management establishes a framework for setting and communicating clear expectations and objectives.

• Identifying Development and Progression Advantages

Performance management facilitates the identification of individual strengths and areas for improvement (Peng, 2022).

 Objectives of Performance Management

Source : (Iqbal et al., 2019)

How Do Performance Appraisals Work?

Performance evaluations aid employees in progressing in their careers by offering insights into their work performance. They guarantee that employees effectively handle and achieve set objectives, offering valuable support by directing them on ways to attain goals in case of any shortfall (Edeh et al., 2019).

 Benefits of Performance Appraisal

• Enhancement of Performance

Performance appraisals provide a structured framework to assess employees' job performance, allowing organizations to identify specific areas for improvement.

• Self-Development Avenues

This often activates discussions about career aspirations and growth opportunities, encouraging employees to actively engage in their profession

•  Promote Effective Communication

Performance appraisals promote two-way communication by encouraging employees to share their insights, concerns, and feedback with their managers (Woerkom and Kroon, 2020).

Conclusion

Each company possesses distinct objectives and fundamental principles. Performance management guarantees the clear establishment of goals and maintains an ongoing feedback loop. Conversely, while appraisal is a component of the broader performance management framework, the latter offers greater adaptability and a multifaceted approach to communication.

References

Leena Toppo (2012). From Performance Appraisal to Performance Management. IOSR Journal of Business and Management, [online] 3(5), pp.1–6. doi:https://doi.org/10.9790/487x-0350106.

Awan, S.H., Habib, N., Akhtar, C.S. and Naveed, S. (2020). Effectiveness of Performance Management System for Employee Performance Through Engagement. SAGE Open, [online] 10(4), pp.1–15. doi:https://doi.org/10.1177/2158244020969383.

Iqbal, M.Z., Akbar, S., Budhwar, P. and Shah, S.Z.A. (2019). Effectiveness of performance appraisal: Evidence on the utilization criteria. Journal of Business Research, [online] 101, pp.285–299. doi:https://doi.org/10.1016/j.jbusres.2019.04.035.

Ogbu Edeh , F., Nonyelum Ugwu, J., Gabriela Udeze, C., Chibuike, O.N. and Onya Ogwu, V. (2019). Understanding Performance Management, Performance Appraisal and Performance Measurement. [online] papers.ssrn.com. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3513042.

Osmani, F. and Ramolli, G.M. (2012). Performance Management, Its Assessment and Importance. Procedia - Social and Behavioral Sciences, [online] 41(1), pp.434–441. doi:https://doi.org/10.1016/j.sbspro.2012.04.052.

Peng, J. (2022). Performance Appraisal System and Its Optimization Method for Enterprise Management Employees Based on the KPI Index. Discrete Dynamics in Nature and Society, 2022, pp.1–12. doi:https://doi.org/10.1155/2022/1937083.

Van Woerkom, M. and Kroon, B. (2020). The Effect of Strengths-Based Performance Appraisal on Perceived Supervisor Support and the Motivation to Improve Performance. Frontiers in Psychology, [online] 11. doi:https://doi.org/10.3389/fpsyg.2020.01883.