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Q.What is the difference between Performance Appraisal and Performance Management? A.

In the management process, one of the basic components of carrying out the process of organization is the final step, which is the evaluation method. In every institution, the evaluation process is one vital method to make such institution prosper and move towards the gateway to success. Two most commonly exercised tools in the performance of the evaluation process are the performance management and performance appraisal. Performance management and Performance appraisal are two terms that are often used in the field of the evaluation of employee efficiency. These two procedures differ in terms of their concept and connotations. Performance appraisal means evaluating an employees current and/or past performance standards.On the other hand performance management is the continuous process of identifying,measuring,and developingthe performanceof individuals and terms and aligning their performance with the organizations goals. Apart from being distinct in definition, performance management and performance appraisal also differ in function. Performance management is carried out to basically meet the desired goals being set, at the time the planned implementations are being performed. Performance appraisal, on the other hand, functions through the standards and policies. Such standards are created basing only on those performances and implementations being done before. More so, while performance management is done during the implementation of the planned procedures, performance appraisal is done only after such procedures have been performed. In this light, it can be claimed that performance management evaluates what is being currently performed while performance appraisal evaluates performances of employees that has already been done. Most importantly, performance management differs from performance appraisal in terms of their scope. Performance management typically involves the daily activities of employees and functions in a continuous manner. Performance appraisal, on the contrary, is one limited process that is highly dependent on the performances of the past. Performance appraisal is a limited function in the sense that it concentrates only on the evaluation of the past performances and it is usually done once or at the most two times in a year. In other words it can be said that performance appraisal is all about distinct staff activity. On the other hand performance management is a continuous function in the sense that it is done in an on-going fashion to ensure that the employees discharge their capabilities in such a way that targets are achieved in real-time basis. Hence it is often said that performance management is continuous in purpose whereas performance appraisal is occasional in purpose. Both the methods differ in terms of their methodology too. Performance appraisal is more formal and structural in nature. On the other hand performance management is more casual and flexible in nature. This is also an interesting difference between the two methods of evaluation.

Performance management is more customized for employees work. On the other hand performance appraisal is more standardized based on the designation of the employee of the firm.

However, despite their obvious divergences, performance management and performance appraisal remain to be vital tools in successfully carrying out evaluation of the management process.

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