In any organization, the performance of the employees will be a major determinant of its success. With employee appraisal and performance management, a shared understanding can be created between the employees on the objectives that have to be achieved by the organization. Performance management can be of help in implementing the development strategy of the organization by taking into account the skills and competency of the employees.

The major goal of performance management is to improve the performance of the employees. It will help the workforce keep learning and developing themselves so that they can contribute to the business strategy of the organization. Performance management is a comprehensive system. This modern system can improve the returns that the organization expects from its workforce based on the main organizational aim.

Employee Performance Appraisal and Performance Management:

The Difference Performance appraisal is simply a method for judging the performance of employees over a period in the past. This is a classic practice and has been traditionally utilized by innumerable organizations. The process can often be painful for the employees as the appraisal is done solely on performance. It does not take into account the objectives of the organization which were fulfilled or contributed to by the workforce.

To most employees, performance appraisal is a bothersome process that has become linked to the periodical or annual salary increment.

On the other hand, performance management takes into consideration a wide range of factors. The performance of the employees is monitored and evaluated. Training such as sales management training will be provided so that the capacity of the employees is built up. Rewards and recognition are going to be a factor as well.

Performance appraisal is simply a part of the performance management technique. Instead of a yearly ritual, performance management becomes a process that goes on throughout the year.

The Cycle of Performance Management

• Performance Planning
• Monitoring
• Building Capacity
• Evaluation of Performance
• Recognition of Good Performance and Its Rewards

The idea behind performance management is not to keep a tally of the performance of the workforce. That will not make much sense without the other associated concepts. Performance management is meant to help the staff succeed in their work. Through their achievements, the organization can become successful as well. After all, an organization is just a collaboration of people who work together to accomplish a common objective. The benefits of this management technique are much more than simply increasing the performance and motivation of the employees.