Are Employee Performance Evaluation, Management, and Appraisal the Same Thing? Let's Discuss!

Can anyone tell me whether evaluation of employee performance, performance management system, and performance appraisal system are the same or all different? :confused:

Regards,
Sejal

Dear Sejal,

The performance management system, performance appraisal system, and the evaluation of an employee's performance are highly interlinked.

For example, evaluating the performance of an employee in an organization is performance appraisal. Every company has a different system for their performance appraisal, known as the performance appraisal system, which includes the tools and techniques used for evaluating performance.

Performance appraisal system:

Performance appraisal is the process of obtaining, analyzing, and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and their future potential. Its aim is to measure what an employee does.

Performance management system:

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed and ends when an employee leaves your organization.

According to these definitions, one shall clearly understand that the performance appraisal system is a part of the performance management system. So, the short answer is that performance appraisal (annual review, employee review) fits under performance management.

Hope this gives you a small idea regarding your query.

Regards,

K. Jayavel

Dear Sejal,

Thanks a ton for the explanation. I understood the terms, but I still have some confusion as my company had an old PMS system that used to represent only the soft skills of the employee. When I joined the company, we introduced a new PMS system, which is very elaborate as it includes KPAs & KPIs. So I thought I would make my project on that. The topic of my project is Evaluation of Employee Performance, so I was thinking about how to incorporate this PMS thing into the project. My plan for the project is as follows:

1. What is Evaluation of employee performance?
2. Methods of Evaluation of employee performance
3. Importance of evaluation
4. How does employee performance affect the company?
5. PMS and appraisal system is part of evaluation methods
6. Introduction of my company
7. Old PMS system and its drawbacks
8. New PMS system and its positive points

We are asked to give recommendations for the faulty system, and since I was part of the discussions and implementation of the new system, it could be my recommendation as well.

Please suggest whether I am on the correct path or if you have any additional recommendations for this.

Thanks & Regards,
Sejal