Debora M

The key difference between performance management and performance appraisal lies in the scope of execution. Both involve setting performance targets, reviewing whether they have been achieved or not, and preparing ways for enabling employees to meet them. Also, both systems set up clear expectations on what is expected of a particular employee set clear guidelines on what comprises a successful job performance and strives to identify the barriers towards effective performance.
Performance appraisal, however, is a reactive and limited function that evaluates past performance, usually twice or once in a year. It’s a distinct staff activity that doesn’t interfere with an employee’s daily work.
Performance management, as already said, is an ongoing proactive mechanism for managing staff performance, and also to ensure that the employee attains the set target on a real-time basis, sans any review or corrective action in the future. It’s a line activity which remains ingrained in an employee’s daily work.
In several organizations, performance appraisal often becomes a part of the overall performance management system. It takes place at a periodic interval and forms the basis to take corrective action and assign further targets.