Answer:
Performance management and performance appraisal are two terms that are often used interchangeably, but they have some key differences. Here are some of the differences between performance management and performance appraisal:
Performance Appraisal:
- Is a system that evaluates the performance of an individual based on predetermined standards.
- Is a yearly system that assesses the performance and potential of employees for their future growth and development.
- Is inflexible and focuses on improving the efficiency of the employees.
- Stops with evaluating employee performance and has a limited scope.
Performance Management:
- Is a process that manages the performance of the manpower working in an organization.
- Is a continuous process that does not occur eventually.
- It's flexible and focuses on managing the human resources of the organization.
- Is holistic and extends the scope to focus on the goals and objectives of different teams in the organization.
- Happens through day-to-day exchanges and is an ongoing process that evaluates employee performance keeping in mind the present and the future.
In summary, performance appraisal is a system that evaluates the performance of an individual based on predetermined standards, while performance management is a process that manages the performance of the manpower working in an organization. Performance appraisal is a yearly system that assesses the performance and potential of employees for their future growth and development, while performance management is a continuous process that evaluates employee performance keeping in mind the present and the future.