“Performance Management and Performance Appraisal” – Prof.M.S.Rao

Performance Management:

Performance management does not mean merely collecting and passing on the information to higher authorities. It is much beyond that wherein it involves checking the performance of the employees as per the benchmarked standards and if there are any deviations, it bridges the gap. It improves the performance of the employees with set of tools and techniques by aligning them with organizational goals and objectives.

It focuses on the ways and means of enhancing performance among the employees. Its main objective is to enhance production and productivity. It checks if there are any gaps between the actual performance and the desired performance.

There has to be an effective coordination amongst the human resources, top management, the immediate managers and the employees to ensure successful performance management.

In this cut throat competitive world it is essential to emphasize on performance constantly where the employees are appropriately aligned with organizational goals. Ultimately it ensures organizational excellence and effectiveness.

We shall now look at other concept of performance appraisal which is directly linked with performance management.


Performance Appraisal:

According to Flippo, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job."

A performance appraisal is the process of evaluation of performance of an employee by his or her supervisor. It indicates the worth of an employee and how far is he or she is contributing towards the organization goals and objectives against the expected standards. Precisely, performance appraisal is a feedback to an employee about his or her past performance.

The objectives of performance appraisal are to find out the strengths and weaknesses of an employee for further training needs. It helps in evaluating the rewards, promotions and awards that an employee deserves. It also helps in correcting the performance vis-à-vis against the benchmarked standards and with other employees. It provides clarity in roles and responsibilities about the employees.

Performance appraisal is not a new concept. It exists since time immemorial but in different names. However the concept acquired prominence in 20th century. The concept is here to stay in the years to come as it is considered one of the effectual means of evaluating employees.