Performance Appraisal

Differences between Performance Management

and Performance Appraisal
What is Performance Appraisal?
 According to the CIPD, Performance appraisal is a system
for individual employees and line managers to discuss
their performance and development, as well as the support
they need in their role.
 It is used to both assess recent performance and focus on
future objectives, opportunities and resources needed.
 Why should a manager use Performance Appraisals?

 To give employees feedback on their performance

  To identify employee training needs
  To obtain information which can be used to assist in the
allocation of organisational rewards, eg. pay increases or
bonuses
 To obtain information which can be used for
organisational diagnosis and development.
Differences between Performance Appraisal
and Performance Management
 An organized way of evaluating the performance and potential of employees for
their future growth and development is known as Performance  Appraisal. The
complete process of managing the human resources of the organization is known
as Performance Management.
 Performance Appraisal is a system-Performance Management is a process.
 Performance appraisal is inflexible- Performance management is flexible.
 Performance Appraisal is an operational tool to improve the efficiency of
employees- Performance management is a strategic tool.
Differences between Performance Appraisal
and Performance Management…Continued
 Performance Appraisal is conducted by a human resource department
of the organization, whereas managers are held responsible for
performance management.
 In performance appraisal, corrections are made retrospectively-
Performance management is forward looking.
 Performance Appraisal is having an individualistic approach which is
just opposite in case of Performance Management.
 Performance Appraisal is carried on eventually- Performance
Management is an ongoing process.
Advantages of Performance Appraisals

 They provide a document of employee performance over a specific

period of time.

 They provide a structure where a manager can meet and discuss

performance with an employee.

 They allow a manager the opportunity to provide the employee with

feedback about their performance and discuss how well
the employee goals were accomplished.
Advantages of Performance Appraisals…
Continued
 They provide a structured process for an employee to clarify
expectations and discuss issues with their manager.

 They provide a structure for thinking through and planning the

upcoming year and developing employee goals.

 They can motivate employees if supported by a good merit

increase and compensation system.
Disadvantages of Performance Appraisals

 If not done right, they can create a negative experience.

 Performance appraisals are very time consuming and can be
overwhelming to managers with many employees.
 They are based on human assessment and are subject to rater
errors and biases.
 Can be a waste of time if not done appropriately.
 They can create a very stressful environment for everyone involved.