In class, Dr Nur Naha asked us about the differences between performance management and performance appraisal. I feel little bit confuse about this two statements then I find the meaning of both. Employee performance management is the process of involving employees in accomplishing agency’s mission and goals. Employee performance management includes planning work and setting goals, monitoring performance, developing capacity, reviewing performance and rewarding good work and activities that ensure that goals are consistently being met in an effective and efficient manner.
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Stages of Performance Management
Performance management have five stages which is plan, monitor, develop, review and plan. Stage 1 is performance planning, it starts of the year then periodically is the core of the performance management process. The performance plan should be a written document and describes more about performance results, performance behaviour and development objectives. Stage 2 and 3 are monitor and develop. Monitoring includes performance and giving feedback like two communication ways between manager and employee throughout the performance period is critical to the performance management process. Then development occurs through monitoring where it can helps more in improving the work process. Stage 4 is about performance review that summarizes the performance over a period of time. Review stage will evaluate performance results and behaviours while rating and ranking have both pros and cons, a summary rating of each employee may be useful. Stage 5 is reward. Every good performance should be rewarded. Recognition and non-monetary rewards are an important part of the reward structure.
Differ with performance appraisal, it is a method by which the job performance of an employee is evaluated typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgement of an employee's performance in a job based on considerations other than productivity alone. Performance appraisal can control behaviour, provide feedback, as a system improvement and as a basis reward and punishment system.
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Many companies that want to create productive workforce performance management systems start with their current position descriptions. When employees and managers do not clearly understand what their organization expects from them, problems can arise. Once job responsibilities are outlined, employees can then be evaluated to learn if improvement or changes are needed.
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