The performance evaluation involves intervening in the management of the workforce in the organization. While performance appraisal is an annual system, and if we talk about performance management, it is a continuous process that does not happen in the end.
What kind of evaluation process is accepted by the organization is one of the biggest questions, because the evaluation and development of employees rely on it? Some employees work in silence but do not show up, and there are some employees who introduce themselves but hardly present themselves. Thus, performance evaluation and management play a crucial role, as the success of the organization is a combined effort of all employees and the entrepreneur.
Read this article to understand the difference between a performance appraisal system and a performance management system.
Comparison table performance evaluation
|Basis for comparison||Performance evaluation||Performance management|
|meaning||Performance appraisal means an analysis of the employee’s performance and their caliber for future growth and development.||Performance management is the management of human resources in the organization.|
|What is?||This is a system.||This is a process.|
|Type of instrument||Operational tool||Strategic tool|
|Ownership of||Human Resources Department||Managers|
|an approach||individualistic||The holistic|
|Focused on||Quantitative aspects||Quality aspects|
Definition of performance evaluation
Performance evaluation is defined as the evaluation of employees by the manager, in which he / she evaluates the overall contribution of the employee to the organization. This is a systematic and logical review conducted by the organization annually to assess its potential to perform a task. It helps to analyze the skills and abilities of the employee for their future growth, which increases the productivity of employees. It helps to identify the employee who is doing his job well and those who are not, as well as the reasons for this.
Performance evaluation process
Performance appraisal is an organized way of evaluating the performance of employees, for which a comparison is made between the actual performance and the pre-set standards. The results of the attestation are documented. The employee is then given reviews of their performance during the year to tell them where they need improvement. Employees also want to know their position in the organization after a certain period of time.
Definition of performance management
Performance management is an ongoing process that aims to plan, monitor and evaluate the employee’s goals and overall contribution to the organization. The main goal of performance management is to promote and improve the efficiency and effectiveness of employees.
In this process, both employees and managers are involved in setting goals, evaluating performance or progress, providing training and feedback to employees at regular intervals for improvement, implementing employee development programs and rewarding their achievements. .
Through this process, both the employee and the employer get a chance to determine the employee’s combined goals, which relate to the ultimate goal of the organization, taking into account the work of the employee. In this way, the goals of the parties became clear, which help to achieve the common goals of the organization and the growth and development of the employee.
Main differences between performance evaluation and performance management
These are the main differences between performance appraisal and performance management:
- An organized way of assessing the work and potential of employees for their future growth and development is known as performance appraisal. The organization’s full human resource management process is known as Performance Management.
- Performance evaluation is a system and performance management is a process.
- Performance appraisal is inflexible, but performance management is flexible.
- Performance appraisal is an operational tool for improving employee performance. However, performance management is a strategic tool.
- Performance evaluation is performed by the organization’s Human Resources Department, while managers are responsible for managing the work.
- When attesting the results, the adjustments are made retrospectively. Unlike efficiency management, it is future-oriented.
- Performance evaluation has an individualistic approach, which is exactly the opposite in the case of performance management.
- Performance evaluation is ultimately done, but performance management is an ongoing process.
Therefore, we can say that the terms performance evaluation and performance management are completely different. But it cannot be said that they are contradictory, because the evaluation of the implementation itself is part of the management of the implementation. Thus, we can say that performance management is a larger term that involves some steps.