Performance Appraisal vs. Performance Management: Know the Difference
By Shumaila Saeed & Dua Fatima || Published on July 24, 2024
Performance appraisal is a periodic evaluation of employees' past work, while performance management is an ongoing process focusing on future performance and development.
Key Differences
Performance appraisal is traditionally a formal, annual process where an employee's work performance over the past period is assessed by their manager. It typically involves rating the employee against various predetermined criteria. On the other hand, performance management is a continuous, comprehensive process that involves setting performance expectations, ongoing coaching, feedback, and development opportunities aimed at enhancing future performance.
Shumaila Saeed
Jul 24, 2024
The appraisal process often culminates in a meeting between the employee and manager to discuss the evaluation, which can influence promotions, pay raises, and development plans. Whereas, performance management is an ongoing dialogue between an employee and their manager about performance and development goals, ensuring alignment with organizational objectives and addressing any issues as they arise.
Dua Fatima
Jul 24, 2024
Performance appraisal focuses on evaluating past performance, which can sometimes lead to a narrow focus on what has already happened rather than on future potential. Performance management, in contrast, is forward-looking, emphasizing continuous improvement and development to meet future challenges and opportunities.
Shumaila Saeed
Jul 24, 2024
Appraisal systems can sometimes be seen as punitive or as a necessary bureaucratic exercise, potentially leading to anxiety or demotivation among employees. Performance management, by focusing on development and continuous feedback, aims to motivate employees by showing a clear path to personal and professional growth within the organization.
Shumaila Saeed
Jul 24, 2024
Performance appraisals are often standardized, utilizing the same criteria for all employees within a specific category or role. Performance management, however, is more flexible and personalized, taking into account individual strengths, weaknesses, career aspirations, and the specific context of an employee's role within the organization.
Shumaila Saeed
Jul 24, 2024
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Comparison Chart
Purpose
To evaluate past performance and make decisions on compensation, etc.
To enhance future performance and align it with organizational goals.
Shumaila Saeed
Jul 24, 2024
Nature
Often formal and standardized
Flexible and tailored to individual needs
Shumaila Saeed
Jul 24, 2024
Outcome
Can influence raises, promotions, and identify training needs
Focuses on development, goal setting, and problem-solving
Dua Fatima
Jul 24, 2024
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Performance Appraisal and Performance Management Definitions
Performance Appraisal
A formal evaluation of an employee's past performance.
The annual performance appraisal is approaching, where we'll review your work from the past year.
Dua Fatima
Mar 06, 2024
Performance Management
Involves setting and reviewing goals regularly.
As part of performance management, we'll set quarterly goals and review them regularly.
Shumaila Saeed
Mar 06, 2024
Performance Appraisal
A process determining promotions and raises.
Performance appraisals play a crucial role in deciding who gets promoted.
Shumaila Saeed
Mar 06, 2024
Performance Management
Focuses on continuous feedback and coaching.
Performance management includes regular feedback sessions with your manager.
Dua Fatima
Mar 06, 2024
Performance Appraisal
Focused on assessing achievements and areas for improvement.
Your performance appraisal will cover both your successes and areas where you can improve.
Shumaila Saeed
Mar 06, 2024
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Performance Management
Tailored to individual employee needs.
Our performance management approach is personalized, considering your career aspirations.
Shumaila Saeed
Mar 06, 2024
Performance Appraisal
Involves rating against specific criteria.
During the performance appraisal, we'll rate your achievements based on the set criteria.
Hifza Nasir
Mar 06, 2024
Performance Management
An ongoing process to enhance future performance.
Our performance management system is designed to continuously improve your skills.
Dua Fatima
Mar 06, 2024
Performance Appraisal
Often documented in a standardized form.
Please fill out the performance appraisal form before your review meeting.
Dua Fatima
Mar 06, 2024
Performance Management
Aims to align individual performance with organizational goals.
Performance management ensures your efforts contribute directly to our company's objectives.
Dua Fatima
Mar 06, 2024
Repeatedly Asked Queries
What is performance management?
A continuous process focused on improving an employee's future performance and aligning it with organizational goals.
Shumaila Saeed
Jul 24, 2024
What is the main focus of performance appraisal?
Evaluating past performance based on predetermined criteria.
Shumaila Saeed
Jul 24, 2024
Is performance management an ongoing process?
Yes, it involves continuous feedback, coaching, and goal setting.
Hifza Nasir
Jul 24, 2024
Why might performance appraisals be seen as punitive?
They can sometimes focus on criticism rather than development, leading to anxiety among employees.
Shumaila Saeed
Jul 24, 2024
How often are performance appraisals conducted?
They are usually conducted on a periodic basis, often annually.
Shumaila Saeed
Jul 24, 2024
What is the main focus of performance management?
Enhancing future performance through continuous development and alignment with organizational objectives.
Shumaila Saeed
Jul 24, 2024
Can performance appraisals influence promotions and pay raises?
Yes, they often play a crucial role in decisions regarding promotions, raises, and identifying development needs.
Hifza Nasir
Jul 24, 2024
Is the outcome of performance appraisal fixed?
The outcome can influence immediate decisions like raises or promotions but is not typically seen as flexible.
Dua Fatima
Jul 24, 2024
How flexible is performance management?
It is highly flexible, adapting to changes in organizational goals and employee development needs.
Dua Fatima
Jul 24, 2024
What role does goal setting play in performance management?
Goal setting is central, with objectives regularly reviewed and updated to meet changing needs and opportunities.
Dua Fatima
Jul 24, 2024
What is performance appraisal?
A formal evaluation of an employee's past work performance, typically conducted annually.
Dua Fatima
Jul 24, 2024
How does performance management aim to motivate employees?
By providing continuous feedback and showing a clear path to growth, it aims to motivate and engage employees.
Shumaila Saeed
Jul 24, 2024
How does performance management facilitate problem-solving?
Through ongoing dialogue, it identifies and addresses performance issues in real-time.
Dua Fatima
Jul 24, 2024
Does performance appraisal involve a formal meeting?
Yes, it typically culminates in a formal review meeting between the employee and their manager.
Hifza Nasir
Jul 24, 2024
How is performance management tailored to employees?
It considers individual strengths, weaknesses, and career aspirations, offering personalized feedback and development opportunities.
Shumaila Saeed
Jul 24, 2024
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
Co-written by
Dua Fatima
Hifza Nasir
Shumaila Saeed
