Answer to Question #237394 in Management for nat

Question

Use a practical example to further explain the distinction between performance management

and performance appraisal.

Answer 1

Performance management refers to a corporate management tool that enables managers to frequently monitor employee's performance. Performance management is mainly aimed at creating an enabling environment that allows every employee in an organization to work at their maximum capacity to enhance effectiveness and overall productivity improvement.

On the other hand, performance appraisal refers to the regular review of an employees' performance and general contribution to an organization. It generally evaluates the productivity of an employee by assessing his/her achievements, skill, and growth or lack thereof.