Performance Management vs. Performance Appraisal

Difference Between Performance Management and Performance Appraisal

Performance management and the performance appraisal are two terms which are often used while doing the evaluation of effectiveness of employee. These two procedures are different from each other in terms of the concepts and connotations they are based on.

Performance appraisal is done according to the job standards and assessment of the earlier performance. It is implicit that the assessment is done on the basis of the already set principles. Performance management aims at managing the performances in given time so that the performance can be made to reach the anticipated level. This is one main difference between the two concepts.

In short we can say that both are methods of assessment of the performance of employee in an organization. Performance management is older and more traditional approach. On the other hand performance appraisal is a kind modern method or approach to assess the performance of an employee in an organization.

Both these methods are used by a company or an organization in an attempt to assess the performance of its workers especially in the current competitive scenario and rapidly changing economic scenarios.

The performance appraisal is a function restricted in sense that it concentrates only on the assessment of the past performances and it is ordinarily made once or at maximum twice in one year.

Performance management, on the other hand is an ongoing thing in the sense that it is done in continuing way so that the employees use their skills in a manner that targets of the organization are achieved in time. This is why it is said that performance management is continuous activity while performance appraisal is occasional.

Both processes have different methodology as well. The performance appraisal is more specific and has a definite structure while the performance management is hassle-free and flexible process.

Performance management is tailored according to the work handled by employees. Performance appraisal on the other hand is more consistent and has standard procedures based on the post of the employees in the firm.


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