Performance appraisal system and performance management system Essay

Performance appraisal system and performance management system - Essay Example Performance management systems refer to measures that the organization has put in place with the aim of establishing what employees ought to do in a certain period. For example, it can constitute measures on how the employee should perform in the next quarter of a year, the next sixth months, or the next one year. A performance management system outlines what should be met within a certain time frame, as well as the benefits that accrue to employees when they meet these objectives (Grote 1996, p.17). Differences between performance Appraisal System and Performance Management System There are certain differences, which exist between performance appraisal systems and performance management systems. These differences represent the most fundamental components of the two approaches, as well as how the two approaches differ in terms of what they address. The major differences between performance appraisal and performance management systems lies in the scope of what they aim to cover. While performance management systems represent a traditional approach to the management of human resources, performance management can be termed as a contemporary approach to the management of human resources (Rao 2004, p. 213). ... 333). During performance appraisal, the principal activities that the human resource department engages in include evaluating employees, as well as rating their performance. On the contrary, performance management aims at the review, analysis, and planning of the expected performance of employees, and how an employee should make improvements (Deb 2006, p.201). While performance management can be regarded as a continuous process within the organisation, performance appraisal takes place in an annual basis. In performance management, there may be reviews that take place quarterly while, in performance appraisal, the review of the employee takes place once a year. However, there may be periodic ratings of employees in the course of the year (Rao 2004, p.214). Performance appraisal is a function entirely performed by the human resource department of the organisation. This means that the human resource department has the responsibility to design, evaluates, as well as monitor the implemen tation of the performance appraisal system (Roberts 2003, p.89). On the contrary, the performance management system can be designed by the human resource department, but the implementation of the system can be done by the various departments. In performance appraisal systems, there are reviews that may be conducted to ensure that the ratings of employees enhance objectivity. In performance management systems, the reviews serve the purpose of ensuring that the organization improves its performance (Waal & Counet, 2009). In performance appraisal, the need for making development is identified when the year ends. During performance management, the need for development can easily be