What is the difference between performance management and appraisal?

The difference between performance management and performance appraisal is that the first one is more concentrated on the company’s efficiency in the process of meeting its goals and objectives and on how the company will do to attain these goals, it is also an ongoing process that will evaluate the day-to-day performance on every employees and even employers of the organization.

Performance management system is also a formal structured process used to measure, evaluate, and influence employee’s attitudes, behaviors and performance result.

Performance appraisal is seen as being more specific on the analysis of the employee’s performance; it will evaluate the employee’s work and quality for the year. It is more like a step which focuses more on the employee’s past performance.

The performance appraisal system is an evaluating tool based on judgment and opinions of subordinates, peers, supervisors and other managers. They can evaluate the performance appraisal through a 360° feedback.

However both performance management and appraisal are tools that are used to measure and evaluate the level of performance that the company needs to achieve the set goals.