Performance Management vs Performance Appraisal (Performance Management…
Performance Management vs Performance Appraisal
It is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals.
Identify, clarify and agree upon expectations
Identify how results will be measured
Agree on monitoring process
Document the plan
Monitor and evaluate the progress
Take corrective action or make changes if required
End of PM cycle
Annual performance review and evaluation
New cycle begins
Promote and improve employee effectiveness.
Signs of effective PM
Job specific, covering a broad range of jobs in the organization
Align with your organization’s strategic direction and culture
Practical and easy to understand and use
Benefits of PM
Improved organizational performance
Ensures efficiency and consistency in performance.
Clarifies expectations of the employees
Importance of PM
system of different processes that combine to create an effective workforce within your company that can effectively reach your business goals
Reason for implementing PM
To increase focus on driving business results
To create an empowered and engaged workforce
To have a foundational knowledge of talent
Systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development.
To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.
To identify the strengths and weaknesses of employees to place right men on right job.
Impact of Performance Appraisal on employees
Types of Performance Appraisal tools
Problems with Performance Appraisal
Poorly trained managers
Lack of outcome-based measures
Not used for performance improvement
Difference between PA & PM
PA uses monolithic system whereas PM uses flexible process
How does Performance Management affect Performance Appraisal
Identifying areas of strength
Identifying training needs
Leadership development and succession planning