Performance Management and Performance Appraisal- MyAssignmenthelp

Question: Discuss about thePerformance Management and Performance Appraisal. Answer: Performance management and performance appraisal are two common terms that form the spine of human resource management. The two terms are interconnected and provide the basis through which managers and employees fulfil their roles within the organization and by so doing, achieve the set goals and objectives. Performance management refers to the process through which managers and employees work in unison through planning, monitoring and evaluation of their performance as well as collective contribution to organizational development. On the other hand, performance appraisal refers to the process through which an employees performance is evaluated against set standards with the aim of spotting areas that need improvement (through training) as well as promotion, demotion or layoff (Bernardin Wiatrowski, 2013). From the two definitions, it is evident that the two concepts are differentiated by a few characteristics. The fundamental difference between performance management and performance appraisal is that the former is a process whereas the latter is a system (Toppo Prusty, 2012). Performance management is a process in that it is manifested in every organizational process with no limitations. As long as work is going on in the organization, performance management is also running. On the other hand, appraisal is a system that applies specific parameters in respect to a documented criteria and standards. Performance appraisal is a tool used by the management to increase efficiency through application of rewards and promotions whereas performance management is a strategic tool that is laid down in the organizational culture (DeNisi, 2000).The core essence of appraisal is to track individual performance and document the results. On the other hand, performance management is concerned with strategically positioning the organization to communicate certain cultures and values. Performance management is an exclusive responsibility of the human resource department of the organization. The HR department is the one tasked with monitoring and evaluating performance and taking the necessary measures in line with the outcomes (DeNisi, 2000). On the other hand, performance management is a role taken by all managers who oversee the day to day organizational activities across all spheres of the organization. The managers can influence operations in line with organizational goals and objectives and by so doing, replicate a certain performance pattern that is to be followed by the junior employees. Performance appraisal is periodical while performance management is a continuous exercise (Toppo Prusty, 2012). For most organizations, appraisals are carried out annually or bi-annually depending on the need for human resource as a result of expansion, replacement of transfers. On the other hand, performance management is a running process that is tied to the organizations existence. As long as the organization is operational, performance management is always present. Performance appraisal employs and individualistic approach and the outcomes are instant. For appraisal, it is an individual performance that is evaluated and the results documented at the end of the session so that the employee(s) can be promoted, fired or demoted (Buller, McEvoy, 2012). On the other hand, performance management applies a more collective approach and the outcomes are always forward looking. This is because performance management assesses individuals in relation to the systems and processes and seeks gradual improvement. In the same context, performance appraisal has predetermined outcomes that have to be met by the individual while performance management is more flexible. Performance management and appraisal present managers and employees with various challenges. For managers, employee resistance is a common challenge (Gruman Saks, 2011).Appraisal and management can be viewed as a process of re-interviewing the employee(s) and as such, it can be received negatively. More often, employees can feel uncomfortable with the scrutiny that comes with the processes and as such, they may resist in some ways. Another challenge for managers is maintaining neutrality/fairness. Although appraisal and performance are guided by organizational provisions, dealing with employees whom you have worked with for long and even formed friendships with can subject you to bias (Guest, 2011). Equally, managers can be tempted to overlook past shortfalls in favor of present or recent individual performances. Another challenge for managers is maintaining positive relationships with employees after the processes. As earlier stated, the outcome of appraisal and performance management can be as fatal as demotion. Consequently, managers may develop a feeling of guilt and this may escalate into negative relations with employees who have been negatively affected (Mone London, 2014).Equally, managers face a dilemma on the right scheduling for appraisals. In most organizations, the period is known and as such, employees can save their best for the period approaching the actual day. Consequently, managers can fail to meet the set goals and objectives due to disguise of behavior or performance by employees. For employees, performance management and appraisal can subject them to undue feedback or negative ratings. This is because the processes can be infiltrated by managers with ill motives who would want to use the exercises to favor certain individuals at the expense of others. This can lead to wrongful dismissal or demotion (Daley, 2012). Another challenge for employees is the possibility of receiving feedback and rating based on group or departmental performance. Some of the individual shortfalls may emanate from the organizational structure rather than individual character or competence, yet they affect individual rating and feedback. Another problem for employees is that there is no appeal mechanism (second chance). Any faults that might have occurred in the process and which are not of the employees making cannot be reversible since the processes are one-off (Bititci et al., 2012). Performance appraisal and management are executed with one goal in mind; helping the organization achieve its goals and objectives. Performance management ensures that all the processes are running in line with organizational goals. Any flaws detected in the system are addressed gradually to avoid any impasses (Buller McEvoy, 2012).On the other hand, performance appraisal ensures that the company has the right group of employees in terms of competence and behavior who fit in the firms culture and values. These employees are better placed to execute their roles and meet organizational goals and objectives both in the long and short term. Performance management and appraisal are tools for individual and collective improvement and skill development. Both processes are meant to empower employees and prepare them for future roles as well as adapting to any changes in the market (Armstrong Taylor, 2014). In appraisals, the feedback can serve as a motivational factor for promoted employees as well as their colleagues. When the employees are rewarded, they feel valued and ready to put on an extra effort to help the organization achieve their goals and objectives. Similarly, performance appraisal and management help the organization to get rid of underperforming employees and replace them with more productive ones. By doing this, the company increases the chances of success since unproductive employees are a liability rather than an incentive to the company. The role of the HR is policy formulation. The department lays down the necessary policies and guidelines that guide the entire processes (Armstrong Taylor, 2014).These policies determine the scheduling, standard measures as well as rewards that should be applied to each individual or the entire organization in order to achieve the set targets. Through policing, the HR is able to stay in touch with the current trends in the market and tailor performance management and appraisal to meeting these conditions. Secondly, the HR is directly involved in execution. The department conducts the appraisals and makes recommendations to the top brass for appropriate action depending on the outcomes. The HR department also plays the role of monitoring both processes. Whereas the outcomes in appraisal are instant, their role does not end at this point. Instead, the HR continuously monitors the progress of each employee in their new roles to see how they are fitting in their designations (Daley, 2012). In this context, the HR also has the responsibility of monitoring employee performance (performance management) and applying improvement tools such as training and inductions so that in the end, all employees are working towards a common goal. Through continuous training, monitoring and assessment, the HR sets up the organization strategically to have a competitive advantage while moving fast towards achieving organizational goals and objectives. Lastly, the HR is involved in research and development to discover new practices that aid future procedures. This also helps the organization to stay in touch with the labor market patterns and overcome barriers associated with obsolescence. 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