Hi!
Performance Appraisal (PA) refers to the "one-stage system" of assessing and/or evaluating the performance of employees. Under this system, the organization issues an appraisal sheet to managers (usually once or twice per year) to be filled out and returned within a specific deadline. The results are used as a basis for promotion, cash awards, and/or sanctions.
A Performance Management System (PMS) refers to a multi-stage system in managing employee performance within organizations. In our (Emilla Consulting) PMS, there are five (5) stages, namely:
1. Performance Planning
2. Performance Review and Assessment
3. Performance Conference & Feedback
4. Improvement & Development Planning
5. Recognition, Rewards, & Sanctions
The PA is considered an old and outdated methodology because it has been accused of bias, favoritism, subjectivity, etc. Moreover, many organizations, employees, and industrial courts worldwide have clamored for more objective and credible tools that can withstand scrutiny when their results are used as a basis for promotion, cash awards, and/or sanctions like demotion or dismissal.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting