The paper "The Differences between Performance Management and Performance Appraisal " is a wonderful example of a Management Case Study. The word “ performance” has been popular in the business and management arena over the decades. Its popularity is attributed to the fact that companies actually compete in terms of performance. The most popular research on performance has been performance and performance appraisal due to their great influence on organization competitive advantage (Toppo & Prusty 2012, p. 1) Even though these terms are sometimes used synonymously, they are actually different. Therefore, this essay will describe and discuss the difference between performance management and performance appraisal.
In addition, the essay will discuss the characteristics of unsuccessful versus successful performance management. Briscoe and Claus (2008, p. 107) defined performance management as the systems whereby an organization set task objectives, set performance standards, allocate and appraise work, offer performance feedback, set training needs and offer rewards. Similarly, Armstrong (2006, p. 63) described performance management as the practice whereby employees and managers collaborate in planning, monitoring, and reviewing the employee’ s task goals and general contribution to an organization. On the other hand, Toppo & Prusty (2012, p. 1) defined performance appraisal as the systematic assessment of individuals with reference to their performance on a particular task and their potential for growth.
Olabisi (2011, p. 93) defined performance appraisal as a measurement of the input a member of an organization contributes towards the realization of organizational goals. The effort an individual puts in the job could be excess of or below the expectation of the manager. Performance management and performance appraisal have been regarded as one of the topical issues which have dominated the research in management in the 21st century.
Many theorists claim that between performance management and performance appraisal, the later was the first to be created by many companies. Performance appraisal is regarded as the oldest and the most widespread practice among the two (Tripathi 2006, p. 26). While focusing on performance appraisal, several managers considered human capital as the only factor for performance. However, researches in human resource management have shown that organizational performance is not only contributed by human capital but also labor and employee relations. Management experts believe that employees’ relationship with the employer determines the performance of the organization.
Several kinds of literature have documented the challenges the companies face with their emphasis on performance appraisals, a situation which has made some management theorists to recommend for the elimination of approach so as to focus on performance appraisal (Akinbowale & Lourens 2013, p. 21). As a result, numerous firms have moved from performance appraisal of the employees to performance management. From this shift, it is clear that there are differences between performance management and performance appraisal. The differences in these two factors are in terms of approach, focus, alignment, methodology, and advantages and disadvantages. Top and Prusty (2012, p.
5) argued that performance appraisal is narrowly focusing on evaluating the level of achievement of an employee whereby supervisors play a key role in reviewing employee’ s past performance without asking for the active involvement of such staff. On the other hand, Toppo and Prusty (2012, p. 5) claimed that performance management often focuses on planning ahead as opposed to focusing backward, the emphasis is on continuing dialogue rather than ratings.
In other words, performance management is done in a real-time perspective and is engrained in the daily work of an employee.
Akinbowale, M.A & Lourens, M.E 2013, ‘Role of Performance Appraisal Policy and Its Effects
on Employee Performance’, European Journal of Business and Social Sciences, Vol. 2, No.7, pp. 19 – 26.
Armstrong, M 2006, Human Resource Management Practice, Kogan Page Ltd, Philadelphia.
Briscoe, D.B & Claus, L.M.2008, Employee performance management: policies and practices in
multinational enterprises. In: Budwah, P.W. and Denisi, A. (eds). Performance management systems: a global perspective, Routledge, Abingdon.
Colville K & Millner D 2011, ‘Embedding performance management: understanding the
enablers for change’, Strategic HR Review, Vol. 10, No. 1, pp.35-40.
Darwish, T.K & Singh, S 2013, ‘Does strategic human resource involvement and
devolvement enhance organizational performance?’ International Journal of Manpower Vol.34, No.6, pp.674-692.
DeNisi A & Pritchard R 2006, ‘Performance Appraisal, Performance Management and
Improving Individual Performance: A Motivational Framework’, Management and Organization Review, Vol. 2, Issue 2, pp. 253-277.
Fryer, K, Antony, J & Ogden, S 2009, ‘Performance Management in the Public Sector’,
International Journal of Public Sector Management, Vol.22, No.6, pp. 478-498.
Obisi, C 2011, ‘Employee performance appraisal and its implication for individual and
organizational growth’, Australian Journal of Business and Management, Vol.1, No.9, pp.92-97.
Pareek, U & Rao, T.V 2006, Designing and Managing Human Resource System, Oxford and
IBH Publishing Co. Pvt. Ltd.
Pollitt, C 2005, ‘Performance Management in Practice: A Comparative Study of Executive
Agencies’, Journal of Public Administration Research and Theory, Vol.16, pp.25- 44.
Snell, S & Bohlander, G 2007, Human Resource Management, Thomson South-Western.
Stone, R.J 2013, Human Resource Management, 4th ed, John Wiley & Sons Australia.
Toppo, L & Prusty, T 2012, ‘From Performance Appraisal to Performance Management’, IOSR
Journal of Business and Management, Vol.3, No.5, pp. 01-06.
Tripathi, P.C 2006, Human Resource Development, Sultan Chand & Sons Educational Publishers.