Performance Management

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Unit: Managing Human Resources (6354)

Week 10 Assignment
April 14, 2012

Student: Claudia A. Diaz Campos
U3077800

Performance Management and Performance Appraisal

Evaluating the performance of an employee has become and important task for managers. This way they know were or in what aspects they need to work more to achieve the companies goals. “Managing employee performance is an integral part of the work that all managers and rating officials perform throughout the year. It is as important as managing financial resources and program outcomes because employee performance, or the lack thereof, has a profound effect on both the financial and program components of any organization.” 1 (US department of the interior) This essay talks about performance management and performance appraisal, the difference between them, and how a successful performance management plan work and their common mistakes.

To understand the difference between performance management and performance appraisal first we need to understand the meaning of both concepts. These two terms are usually used while evaluating employee efficiency in an organization.

Lets start by learning what performance management is “Performance management is simply a term used to describe a set of activities that assess whether goals or objectives are being met. These activities include defining work, setting goals, providing feedback and encouraging development. Performance management is about shared responsibility and understanding of roles, expectations and standards”

For better understanding about PM is really about the university of Berkeley posted this example in their web-side “The campus carries out its mission through the individual and collective contributions of its employees. To do their best, staff members need to know that those contributions will be recognized and acknowledged.

Performance Management is one of the key processes that, when effectively carried out, helps employees know that their contributions are recognized and acknowledged. Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and evaluating results” 2. (University of Berkeley).

The Office of Personnel Management defines performance management as the systematic Process of:
1. Planning work and setting expectations
2. Continually monitoring performance
3. Developing the capacity to perform
4. Periodically rating performance in a summary fashion; and 5. Rewarding good performance

Know lets look at the meaning about Performance appraisals it is “The process by which a manager or consultant (1) examines and evaluates an employee's work behaviour by comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to provide feedback to the employee to show where improvements are needed and why. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired” 3 (Business dictionary) A great appraisal needs to be fair, objective, two-way, realistic, clear, on-going and specific.

Just by reading the definitions it easy to see that Performance appraisals is just one part of performance management. Although one helps the other there are a few differences that can be noticed: it can be said that performance management is the older and traditional approach. On the other hand performance appraisal is a sort modern method or approach of evaluating the performance of an employee of a firm or an organization.

“Performance appraisal consists in the setting of job standards and evaluation of the past performance….” On the other hand performance management concentrates on managing the performance...
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