Answer to Question #240391 in Management for Kiks

Question

Use a practical example to further explain the distinction between performance management
and performance appraisal. (20 marks)

Answer 1

Performance appraisals assesses the worker's performance for a given period of time, while performance management manages employees' performance to ensure they work focusing on accomplishment of organization's goals, mission, vision and core values.

Basically, performance management helps managers to figure out the level of employees performance, therefore, it acts as a measure of workers' performance. Performance appraisals on the other hand shows a review of employees performance i.e competency for a specified time so, it is seen as part of performance management.

The manager can then evaluate if what the employees are doing matches the expected standards. Meetings offer a perfect opportunity for sharing of ideas. Another practical performance management practice would be praising and providing rewards to employees who are exemplary in their work. This way, the employee will increase their performance which is what performance management is all about. 

Unlike performance management, performance appraisal does not focus on an employee’s performance productivity. An example of a performance appraisal is where a bank manager sets out key performance indicators to assess the employees. One assessment area would be on whether the employee met the expected deadlines. The employee assesses themselves, followed by their appraiser, and then the two sit down to agree on the different indicators.