Differences Between A Performance Management System And Performance Appraisal/Review

An appraisal is one of the most commonly used methods of formal assessment and is used to evaluate and assess the performance of an employee against agreed targets and objectives, with the aim of improving employee performance. Where an employee has been able to achieve their targets, the appraisal can be used to recognise successes. This often helps to increase an employee’s confidence and motivation and can lead to better organisational performance. Many organisations will use the outcomes of an appraisal to identify potential candidates for promotions or even an increase in pay. At the same time, an appraisal meeting may include discussions on underperformance, identifying why this has occurred and how this can be avoided in the future.

3600 feedback is a process in which someone’s performance is assessed and feedback is given by a number of people who may include their manager, subordinates, colleagues and customers (Michael Armstrong 2009:644). The debate surrounds a point of whether it offers a means of overcoming the traditional limitations of appraisal.

Although performance cannot be judge alone with 360-degree assessment, it provides a commentary aspect that will assist an organization in Leadership Development and Succession Planning. Including the 360-degree appraisal in the performance management process will provide a broader perspective about an employee’s performance and detail to annual appraisal. In addition, the technique facilitates greater self-development for an employee. Moreover, it enables an employee to compare his or her self- evaluation about performance with the perceptions of others.

What are performance appraisals? Simply put, they are the evaluation of goals that are pre-determined and set by both the employee and organization (Harvard Business Press, 2009). They are used to measure an employee’s performance and team performance.

A performance appraisal is one of the most important factors in any organization and can be one of the greatest tools used to record employee production. Every organization has to have goals and objectives established and the employee has to be involved in this process. By conducting performance appraisal will improve productivity and also the morale of the employees.

An effective performance appraisal system strives for as much precision in defining and measuring performance dimensions as is feasible. Some of the major problems with the Darby appraisal system are:

The first port of call, or initial point of contact, for performance management is usually the

As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.

Although Performance Management evolved from performance appraisals few decades ago, most literature still intensely focuses on performance appraisals when addressing performance management.

Performance Management Within the Workplace The basis of the mainstream of performance appraisals within the modern workplace is one person (a manager or executive) rating one more, an intrinsically individual process. There are distinction such as 360 degree appraisals that include the judgment of others such as clientele and peers/colleagues in the process but it is the action of one person transitory judgment upon another that is subjective in nature and the root cause of many of the problems encountered in the research associated with performance appraisals. Performance appraisals are of importance to the organisation, as they often provide the only measure of an individual's contribution and

360 degree feedback system as a performance evaluation tool as long as the understanding of its intent is understood. “There are three key steps in the successful implementation of 360 degree feedback systems in an organization. The three steps are that it must fit the organizations culture, make it psychometrically sound, and used with care” (“Best Practices”, 2012). It is also important to train the feedback providers to be sensitive, respectful and polite. Treating employees in a friendly and respectful manner and offering constructive advice will make them more open to accepting the performance

In a typical and effective process of performance management, as demonstrated in Figure 2.1, performance appraisal is not the only but a vital element because it is the activity which evaluate the outcome of the work, recognize the achievement and weaknesses and give employees and managers a straightforward result on these(Armstrong, 2009, Hutchinson, 2013). From a modern perspective, performance appraisal covers more areas not only on what have been achieved but also on the attitude and contribution of the operator (Hutchinson, 2013), which enhance the functions of identifying training needs.

Performance appraisal process if made clear and transparent can help a lot to avert low morale in employees. Fair, trustworthy, and transparent processes for performances management and resource allocation help to meet people’s drive to defend.

I have experience in performance management and understand the performance appraisal or a disciplinary process. It aims to improve organisational, functional, team and individual performances. Effective performance management measures the progress being made towards the achievement of the organisation's business objectives. It does so by planning, establishing, monitoring, reviewing and evaluating organisational, functional, team and individual performance.

Accounting data frequently is used in performance evaluations, because it is seen as an objective method to evaluate performance. While there are many advantages to using accounting information for this purpose, small-business owners should be careful to understand that there are drawbacks as well. Knowing the pros and cons of using accounting metrics can help business owners choose the right data to use for evaluating employee performance.