Performance Appraisal is about the past whereas, Performance Management is about present and the future!

1. PERFORMANCE MANAGEMENT
VS.
PERFORMANCE APPRAISAL
Sounds very similar but have their own meaning and differences.

2. What is Performance Management and
Performance Appraisal ?
Performance appraisal is about the past whereas, Performance management is about present and the future!
Performance management is the
process of identifying, measuring,
managing, and developing the
performance of the human
resources in an organization.
Performance appraisal, on the
other hand, is the ongoing process
of evaluating employee
performance.

3. Differences
Performance Appraisal Performance Management
Organised way of evaluating the performance and potential
of employees for their future growth and development
The complete process of managing the human resources of
the organization
It is a System It is a Process
Is very a inflexible system Flexible in the process
An operational tool to improve the efficiency of employees a strategic tool
HR department is responsible Respective managers are responsible
Individualistic approach Just the opposite
Set at a certain period to perform the appraisal task Conducted on regular basis
Lean towards salary/pay structure Less impact on the salary/pay
Top down assessement Combined process to improve
Usuaully links to quantitative approach Meets with both quantitative and qualitative approach

4. Graphical View
Work in process
Beginning of the year End of the year
Work in process
Beginning of the year End of the year
Work in process
Review Final ReviewCompetency Review
Performance
Appraisal
Performance
Management

5. THANK YOU
PRESENTED BY: SUMA VENKATAGIRI
Both practices should be combined which improve business strategy of the company and help
employees professional growth.
In a way, ”Performance Appraisal is a part of Performance Management”.