The paper 'Performance Management and Performance Appraisal ' is a great example of a Management Essay. Though the two terms are used interchangeably they differ a lot. Performance appraisal is mainly concerned with the setting of job standards and it assesses the past performance of the employees in relation to the already set standards. Performance management on the other hand is mainly concerned with the management of employee performance and it is mainly on a real-time basis, this ensures that employee performance reaches the organization's desired level (Armstrong, 1998). One of the major differences between the two concepts is in terms of their scope.
The two concepts deal with the setting of a performance goal, a constant evaluation of targets and finding more better ways to assist the employees in achieving the targets (Boswell & Boudreau, 2000). The two concepts also clearly stipulate what the staff are expected to do, put in place the procedures on what really makes up successful job performance, and aim at all costs to spot any barriers that may hinder effective performance within an organization. In relation to scope performance appraisal is limited and termed as reactive function that assesses the past performance of the employees and it usually takes place perhaps once or twice within a year and has no direct involvement with the day to day operations of the employees.
Performance management on the other hand is a continuous as well as an ongoing practical process that is used to administer employee performance and it aims at ensuring that the set goals are achieved and on a real-time basis, without evaluation at a later date. Employee performance management is a line activity and remains embedded in the day to day operations of the employees. Another difference between the two concepts is in terms of the approach.
When it comes to performance management, managers or supervisors in an organization always assume the roles of coaches or that of a mentor while in terms of performance appraisal the manager or the supervisors will always play the role of a judge. In terms of methodology performance appraisal have a propensity of been official and prearranged. The modern-day performance appraisal used to allow for the customization based on the organization key performance sectors or at times based on what comprises performance based on an individual employee, performance appraisal nonetheless maintains its rigidity through the laid down processes as well as the rating constraints that bind all the staff member together and equally.
Performance management on the other hand is a reasonably more informal and bendable technique of assessing the employee's performance (Randell, 1994). Similar to performance appraisals, performance management set up a guiding principle on what comprises optimal performance in an organization, though it allows substantial relaxation based on the exert job condition and the time.
While Performance management is usually customized based on individual employee work, performance appraisal is more often than not identical in regard to an employee’ s title. Both performance appraisal and performance management mainly assist an organization in increasing its productivity despite the fact that performance management has room for real-time alterations to increase productivity. The two concepts reveal the notions of both hard HRM and soft HRM. Performance Management deals with the control of staff activities making it a hard HRM while performance appraisal falls under the category of soft HRM (Roberts, 2003).
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