Hello,
Performance Management System:
A critical component of effective HR Management is a PM system, which allows a company to systematically assess and evaluate performance (individual as well as organizational) and monitor trends within the organiziaiton. An effective PM system will promote the following initiatives and practises:
- Improves organizational effectiveness in the accomplishment of mission and goals.
- Assist in executing performance appraisals
- Continually monitoring performance
- Rating and Rewarding performance
- Provides critical performance diagnostic tools to assist managers in better uncovering the causes of poor performance
- A great tool to help managers manage employee performance issues.
Performance Appraisals:
Are an integral part of a PM system as discussed above and promote the following:
- Setting expectations
- Communicating goals and roles of the individual
- Providing feedback about performance
You can think of PM system as a "car" driving optimal performance and the Performance Appraisal as the "tune up" that is required periodically in order to check and ensure that the car is running at its optimal performance!
I hope this helps :)
Warm regards,
A people person!