Question

What is the differences between PM and PA? Performance management and Performance apraisl.

Please explain in details and give some examples. And how to implement them.

Answer 1

Performance management is the process in which you will assess, monitor, help and guide the employee to do the job and manage its performance at very large so that he would perform the best for the present as well as the future scenarios of the organisation to earn better individually and professionally.

On the other hand, performance appraisal could be regarded as the process in which you'll find the ways or the techniques to evaluate the performance of the employees as compared to pre defined standards set in the planning process to make sure the actual performance is very much alike with the standard performance or not, and if not why and what is causing the deviations.

An example could be studied below to understans the implementation of the terms more accurately:

Suppose a manufacturing firm has a standard for producing 10 units per day for each employee. The rate provided for producing each unit is $1. For the betterment and making the employee to produce more, a monetory bonus plan was initiated saying if the employees produce more than 10 units a day they would be rewarded with $1.25 per unit. But, if the employee fails to produce at least 10 units a day, they would get $0.75 per unit.

Thus, in the performance management the employers or the managers would help the employees to reach the standard target. They would guide the employees, provide them motivation, training and help and every possible way to improve their performance for the betterment in the present as well as future sceneario.

Once the performance management is done, the employers would now evaluate the employees' actual performance with the standard performance (10 unit) in the performance appraisal process, thus seeing it the employees performed as according to the standards or not. If yes, what made those employees motivated more and what made other employees not motivated. All the reasons would be clarified and thus corrective actions would again be undertaken in the performance management process to make the futute of the operations better.

Thus, we can say performance appraisal is a smaller part as compared to performance management.