Difference WikiBusiness

Difference Between Performance Appraisal and Performance Management

Main Difference

The main difference between Performance Appraisal and Performance Management is that Performance Appraisal means how to calculate the actual performance of an employee regularly, whereas Performance Management means to identify the performance of the individual assets of an organization.

Performance Appraisal vs. Performance Management

Performance appraisal is a process that tells how to evaluate the progress by considering or determining the worker’s actual performance frequently, whereas performance management is the process that is using for recognizing, calculating, and developing the return of the human capital of an organization. Performance appraisal is an annual method, while performance management is a nonstop method that is not happening ultimately. Performance appraisal is a system, whereas performance management is a proper process. The nature of the performance appraisal is inflexible, while the quality of performance management is flexible.

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Performance appraisal shows a rational calculation of the performance of a singular that is forming on static values, while the performance management mentions the performance of an individual power working of an organization. Performance appraisal has the operative type of class to increase the proficiency of workers, whereas performance management has a tactical kind of course to increase the ability of workers. Performance appraisal is owning by the human resources department, while performance management is owning by the managers. Performance appraisal is motivating on measurable features, whereas performance management is motivating on quality features.

The method of performance appraisal is individualistic, whereas the approach of performance management is holistic. The correction of performance appraisal is retrospective, while the revision of performance management is prospective. Performance appraisal is not relating to the business necessities, whereas performance management is referring to the business necessities. Performance appraisal frequently connecting to reimbursement, while performance management is not usually connecting to compensation. Performance appraisal is an individual process, whereas performance management is the collective process.

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Comparison Chart

Performance AppraisalPerformance Management
Performance appraisal shows the performance and ability of an employee for future growth.Performance management shows the performance of the human income of an organization.
Connotations
It is a systemIt is a process
Nature
InflexibleFlexible
Leading
AnnuallyContinuously
Focusing On
Quantitative aspectsQualitative aspects
Category
OperationalStrategic
Maintaining By
Human resources departmentManagers
Method
OriginalGeneral
Correction
ReflectivePotential

What is Performance Appraisal?

Performance appraisal is a procedure that is signifying how to appraise the progress by considering or determining the worker’s real performance frequently; performance appraisal is a yearly procedure. Performance appraisal is not an appropriate method; it is only a system, the nature of the performance appraisal is obstinate, and it also indicates an ordinary calculation of the performance of a particular that is establishing on still values. Performance appraisal has a working type of class to upsurge the ability of the employees.

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Performance appraisal is maintaining by the human resources department, performance appraisal is encouraging on the quantifiable features, and the method of the performance appraisal is distinctive. The rectification of performance appraisal is reflective, performance appraisal is not relating to the business necessities, and however, performance appraisal is usually attaching to the payment. Performance appraisal is a separable process as well.

Though the performance appraisal estimates services, successes, and the development of an employee of the company, and the companies consume the performance appraisals to respond to the work of their employees and to give valid pay increments and bonuses, as well as closure decisions of the worker. Performance appraisal delivers a way for the companies to decide which employee is paying the most of their time to the company’s progress. Therefore the corporations can reward their topmost performing employees consequently. There are many ways of the performance appraisal to praise the performance of the employee, and they are putting into the two categories, the first one is the traditional method, and the second one is the modern method.

What is Performance Management?

Performance management is the procedure that is using for identifying, calculating, and increasing the enactment of the human wealth of an organization. It is a constant process that is not happening ultimately. Performance management is an applicable procedure. The nature of performance management is agile. The performance management indicates the performance of a separate power working of an organization. Performance management has the strategic type of class to upsurge the ability of the workers.

Performance management is maintaining by the managers of the organization, and the performance management is encouraging on the quality features—the procedure of the performance management in general. The modification of performance management is possible. Performance management is relating to the business requirements. Performance management is not ordinarily connecting to the compensation, not like the performance appraisal because it usually is connecting to the settlement, while performance management is the collective process.

Directors are using the performance management tools to modify the workflow and make some conclusions that are going to help the employees to attain their objectives. The performance management method allows workers to complete the best of their capabilities to produce the uppermost feature work most professionally and successfully. Performance management is concentrating on responsibility and raises a clear understanding of expectations. There are the five critical vital steps of the performance management procedure, the first one is planning of employees about the goal, the second one is the monitoring of workers relating to goals, the third one is developing, the fourth one is the rating, and the fifth one is rewarding.

Key Differences

  1. Performance appraisal is an arrangement, whereas performance management is a method.
  2. Performance appraisal is an unbending term; on the other hand, performance management is a bendable term.
  3. Performance appraisal has an operating class; conversely, performance management has a strategic level.
  4. Performance appraisal is carrying on yearly; on the flip side, performance management is the continual process.
  5. Performance appraisal is guiding by the human resources department, whereas performance management is guiding by managers.
  6. Performance appraisal is an individual process; on the other hand, performance management is the collective process.
  7. Performance appraisal is not concerning business requirements; on the contrary, performance management is relating to business requirements.
  8. Performance appraisal is focusing on quantitative features; on the flip side, performance management is focusing on qualitative features.

Conclusion

Performance appraisal and performance management perform a significant role in the success of any organization. The words performance appraisal and performance management are diverse, and respectively, performance appraisal is a share of performance management. Therefore, we can say that performance management is a greater term that are involving some steps.