Difference between performance management and

performance appraisal
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I. Contents of getting difference between performance

management and performance appraisal
==================

Definition

The first difference between performance management and performance appraisal is

definition. Performance management is a set of activities and evaluations that ensure the
company is being effective and efficient in the process of meeting its goals. It analyzes and
concentrates on various elements inside the company structure, such as the overall performance
of the company, the performance of a specific department, phases of producing a product or
service and employee performance. Performance appraisal is the specific analysis of the
performance of employees inside the company. It evaluates the employee's work and quality for
the year. Performance appraisal can be considered one step in the greater effort of performance
management--a step that focuses on the employee's past performance--while performance
management is an ongoing process that evaluates day-to-day performance.

Supervisor Tasks

Managers and supervisors are vital to both methods of assessment. In performance

management, the supervisor or manager acts as a coach, someone who is driving every employee
and structure in the department he is in charge of to achieve a common goal through constant
encouragement. He then plans and sets realistic expectations, finally measuring the results on a
daily or weekly basis. In performance appraisal, the supervisor acts more like a judge of the
employee's work and performance, and he generally does so through a face-to-face interview
(annual or semiannual). The supervisor evaluates the employee's performance, identifies
weaknesses and strengths in the employee's work and sets plans for how to improve on those
weaknesses by utilizing the employee's strengths. Employers and managers can use the results of
performance appraisal to achieve goals through performance management's daily approach.

Methods

The methods employers use in performance appraisal are more structured and formal than
the methods in performance management, and they usually consist of specific evaluations that
rate employees in specific areas of performance based on the company's goals. Performance
appraisal sets a high performance measurement to show employees what is expected and
encourage them to meet those expectations. The methods used in performance management are
more flexible than those used in performance appraisals, since performance management bases
itself on daily performance. For this reason, its parameters for evaluation are more tangible. It
has ideal performance goals as guidelines, but it is not fully invested in these ideals. Rather, it is
sensitive to what an employee can realistically achieve in a day of work.
These two types of performance measurement, put together, create a powerful tool for
management and evaluation, allowing the company to achieve a higher level of performance.
==================

III. Performance appraisal methods

1. Essay Method

In this method the rater writes down the employee

description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.

2. Behaviorally Anchored Rating Scales

statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages helps overcome rating
errors. Disadvantages Suffers from distortions
inherent in most rating techniques.

3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases

4. Checklist method

Under this method, checklist of statements of traits of

employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages economy, ease of administration, limited
training required, standardization. Disadvantages Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings

5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an

employee stands in his group. It does not test anything

about how much better or how much worse an employee
is when compared to another employee.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. Critical Incidents Method

The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.

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