Comparison of

performance
management and
performance appraisal
No. Points PM PA
1 Types of
objective
Emphasis on integrating
,organization , team and
individual objective.
Individual objective.
2 Types of
performance
measures
Competency requirement
as well as quality
measures
Qualitative &
quantitative
3 Frequency Continuous review with
one or more formal
review in a year
Annual appraisal
4 Rating systems Joint and participative
process ,rating less
common
Top-down system with
rating
5 Reward
linkages
Dose not have a direct
link to reward
Often linked to pay
6 ownership Owned by line
management
Owed by human resource
department
7 Corporate
aligment
Integrated business
driven system aimed at
organization and peopled
evelopment.
Isolated system not
linked to organizational
goal
8 Focus of
performance
review
Future focused Focus on past
performance
9 Question asked What can be done to
help employees
perform as effectively
as possible.
How will was the work
done?
Uses of PA
performance improvement
compensation adjustment
Placement decision
Training and development needs
Career planning and development
Staffing process deficiencies
Informational inaccuracy
Job design errors
Equal employment opportunity
External challenges
Feed back to human resource