Definition of Performance Management & Performance Appraisal

Performance management is a goal-oriented system to ensure that organizational processes exist to maximize the productivity of employees, teams and, ultimately, the organization.


 A performance appraisal is a formal system of review and evaluation of individual or team performance.

Performance management is an ongoing organizational process that is conducted to maximize the productivity of employees with the overall intention of improving the organization’s effectiveness. It is strategic in nature and involves every person and all HR processes in the organization. All are directly tied to achieving the organization’s goals.

The performance appraisal is a periodic event to reflect and evaluate past performance with the intent to identify strengths and weaknesses of an employee’s performance and to identify developmental goals. A performance appraisal is just one part of a performance management system. Source: Mondy, R. (2008). Human resource management, 10th ed. New Jersey: Pearson Prentice Hall, 224-225.




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