Trends and Challenges

Difference between Performance Management System and Performance Appraisal

Annual performance appraisal is one of the components of a complete performance management system . By objectives , a performance management system differs with performance appraisal , for while the latter focuses on the evaluation , or measurement , of the employee 's performance against the agreed job description or performance metrics , as an evidential basis for a possible salary increase or incentive , or any other status variations of the employee in the company , the former ultimately aims to meet the company 's mission and vision by optimizing

the performance of each of its employees . A comprehensive performance management system includes the following (Heathfield

Performance planning by employee 's goal setting

Continuous performance communication between the subordinates and the managers

Performance data gathering observation and documentation

Performance appraisal meetings and

Performance diagnosis and coaching

Performance appraisal usually , and seemingly , serves as a conclusion to the whole system for a given period of time , like quarterly , or annually , for , at the end of this period , the performance of the employee is being summed up against the objectives or goals which were established at the initial stages of the system . It involves evaluation of how , or how much , an employee performed , typically being linked with monetary rewards and sanctions (Asopa , 1997 . The customarily anticipating result of a performance appraisal , primarily designed to boost moral and encouragement , causing a big deal for the employees seemingly overpowers the performance management system behind it because of the employees ' greater population within the...