The Origins of Performance Appraisal and Performance Management and the Differences Between Them.

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PERFORMANCE MANAGEMENT

What are the origins of performance appraisal and performance management and what are the differences between them.

MSc Human Resource Management

Glamorgan Business School

University of Glamorgan

2012

What are the origins of performance appraisal and performance management and what are the differences between them.

Performance management and performance appraisal are symbiotic strategies that yield great results in the human resource and business world. The term performance management is a shift from performance appraisal, as it was actually intended to sustain the approach/strategy in the business world. Performance management is a data-oriented and scientifically based management system (Daniels, 2000) which creates culture in other to bring about the improvement of individual skills, business processes as well as employees behaviour and contribution towards the development of the organisation. It can also be seen as a holistic approach bringing together various strategies and rudiments that comprise of successful performance management practices, including employee self development (Armstrong and Baron, 2005, p1-2). Performance management has been defined by diverse HR scholars such as Lockett, Armstrong, Angela Baron, Hendry etc, and below are some of the definitions: “A process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved” (Armstrong, Baron,2005, p.2). “A systematic approach to improving individual and team performance in order to achieve organisational goals” (Hendry et al). “The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives, within an organisation that supports and encourages their achievements“(Lockett, 1992). The above definitions provided by Daniels Aubrey amidst other scholars, do not fail to pin point the systematic nature of performance management process, as well as emphasize on the importance of organisational development. They map out the fact that PM is a strategy that positively affects every sector of an organisation, in the context of its style, human resource policies and communications system. The term performance appraisal has broadened as a strategic concept (Fletcher, 2001) and also as a set of practices in performance management which serves as an essential opportunity for employees and those involved with performance: Chief executives, line managers etc, to take on a dialogue about each employee’s performance and development, as well as the necessary support needed for their personal advancement and company growth and development (Janet Egan, 2012). Though performance appraisal is an integral part of performance management, it shouldn’t be mistaken as performance management, because it is one of the HR strategies/tools (Armstrong and Murlis, 1998) used to manage performance. As Michael Armstrong and Angela Baron pointed out in their CIPD book “Managing performance”, performance appraisal is an unloved punitive strategy, as against performance management which is seen as a total approach in engaging every employee in the organisation which helps improve the organisations profit and development as well as enhance employee growth and advancement. According to the CIPD online journal “performance appraisal guidance”, performance appraisal is the pillar of performance management, as it is wrong to assume that performance management is not needed once performance appraisal has taken place in an organisation. In the remaining pages of this essay, the origin as well as the differences between performance management and performance appraisal will be discussed in full length. Over the years, the emergence of HR scholars who have written...
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