Understanding Performance Management vs. Performance Appraisal: Can You Explain the Key Differences?

Hi all,

Could you please help me out regarding the difference between performance management system and performance appraisal? What are the main steps/procedures in PMS?

Regards,
Kripsha 😕

What is the difference between the performance appraisal and performance management system? I am an MBA student. I want to do project work on these topics. Please give me a reply as soon as possible.

PMS is basically a Performance Management System that is used to manage employee performance. It follows the PDCA cycle - Plan, Do, Check, Act.

On the other hand, Performance Appraisal is the evaluation of employees, including assessments for increments. It is essentially a part of PMS.

Hi,

Performance appraisal is done with a view to analyze the strengths and weaknesses of an individual. Performance management means providing training to improve the individual's skill sets, thereby making them a perfect professional.

Performance appraisal involves evaluating the performance of an employee based on certain parameters and criteria by the supervisor. On the other hand, Performance Management is a comprehensive development system for employees aimed at enhancing their performance. It begins with setting targets and goals for employees, followed by measuring their performance periodically, evaluating their performance against the set targets, and making improvements as needed by providing proper motivation, training, incentives, etc.

Can you help me further understand the process of Performance Management? My project is based on PMS, and I am completely unaware of this topic.