Answer to Question #240982 in Management for Kik

Question

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

Answer 1

Performance management v. performance appraisal

Performance management is that which an organization does to ensure employees meet their goals. Performance appraisal on the other hand evaluates employee’s performance. A thin line exists between the two terms. Managers should know the differences between the two managerial practices and how to effectively apply them to enhance productivity (Dauda & Luki, 2020) 

An example of a practical effective performance management is where management monitors employee performance with meetings and check-ins. 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.

Reference

Dauda, Y., & Luki, B. (2020). A comparative review of performance appraisal and performance management. International Journal of education and applied research, 10(2), 12-17.