The paper 'What Is the Difference between Performance Management and Performance Appraisal" is a perfect example of business coursework. These phrases, ‘ performance management’ and ‘ performance appraisal’ , not only share the common word ‘ performance’ but the two are also key management concepts. Though they are closely related, the two have inherently different meanings and should not be confused whatsoever. Grote (2005) defines performance appraisal as A formal arrangement management system that provides for the evaluation of the quality of an individual’ s performance in an organization. The appraisal is usually prepared by the employee’ s immediate supervisor.
The procedure typically requires the supervisor to fill out a standardized assessment form that evaluates the individual on several different dimensions and then discusses the results of the evaluation with the employee” (p. 1). Snell & Bohlander) (2009) define performance appraisal as. A process ―typically delivered annually, biannually, or sometimes quarterly by a supervisor to a subordinate ― designed to help employees understand their roles, objectives, expectations, and performance success. In addition, new employees are often put of probationary status for a period of time and evaluated 30, 60, or 90 days after being hired, with their continued employment contingent upon their performing satisfactorily (p.
362). However, Snell and Bohlander (2009) warn that defining performance appraisal is more often than not different from what managers do in the workplace. They say that managers often employ means that limit the potential of appraisals as opposed to enhancing them. On the other hand, performance management is defined as A planned process whose five primary elements are agreement, measurement, feedback, positive reinforcement and dialogue. It is concerned with measuring outcomes in the shape of delivered performance compared with expectations expressed as goals or objectives” (Armstrong, p.
61). Nelson and Campbell offer a closely similar definition to say that “ performance management is a process of defining, measuring, appraising, providing feedback on and improving performance” (p. 157). They add that the skill of performance in behavioral terms is an essential first step in the performance management process. From the above definitions, it is apparent that performance appraisals are components of performance management. However, there still exists a debate on whether performance appraisals are inputs of performance management given that performance is also the output of performance management (Gravina & Siers 2011). The differences between the two terms are not based on definitions alone.
A major difference between performance management and performance appraisal is their functions and how they are implemented. According to Haines and Onge (2012), performance management is a way of implementing strategic initiatives and managing the development of the workforce. Performance appraisals, on the other hand, are meant to assess employee performance and matching goals and results. In a way, performance appraisals have no intentions of developing the workforce given that the common manner in which they are implemented, they tend to analyze past events.
Nonetheless, Huselid (2006) says that employee performance management should precede organizational performance management. Characteristics of a successful performance management system The focus of performance management should be on improving existing processes, not creating new ones. Therefore, a successful performance management system must relate to the following key processes within an organization; Budgeting, Purchasing, Planning, Human Resources, Service Delivery, Public Participation and Communication / Reporting. Failure to relate with one or more of the mentioned processes creates problems with the implementation process from the word go.