Difference between employee performance evaluation and employee performance management

By Sumudu Rajaguru

In below initially explained about what performance Management is and What is performance evaluation.

Performance Management

When we consider any organization, it is important to achieve the organization goals. All employees have to put some effort to achieve the organization goals. So, organization should have some mechanism to enhance the employee performance. Because of that most organizations continuous process that focuses on aspects like planning, monitoring, and evaluating employee objectives. That process simply calls performance management system.

From the performance management system, can’t address every skill. Good performance management only intends to improve the specific skill sets that align with the companies’ interests and goals. It evaluates the overall contribution of an employee towards the organization to enhance the productivity and effectiveness of the employee. There are some objectives of performance management. Such as.

-?????? Define the company’s goals

-?????? Setting realistic expectations for managers and all other employees.

-?????? Establishing clear communication between individuals and teams.

-?????? Define a performance plan by setting performance benchmarks

-?????? Shape individual training and performance plans.

Mainly there are two approaches for conducting performance management like below.

·?????? Behavioral approach – The behavioral approach identifies and measures behavior to evaluate employees.

·?????? Result oriented approach – The employees are evaluated based on objective criteria.

Performance evaluation

This is the identification, documentation, and evaluation of an employee’s performance to compare with whether an employee is enhancing the company objectives. There is a systematic procedure like below.

-?????? Most of the time employee’s remuneration is measured and compare with the organization’s target and plan.

-?????? The factors responsible for the performance of an employee are assessed and evaluated.

-?????? The employee is guided by the employers to enhance their performance.

There are some objectives of performance evaluation and some of them are like below.

-?????? Keeping records to define salary structures and bonuses

-?????? After evaluating the employee’s performance, assign right tasks to them.

-?????? Identifying and evaluating the potential of an employee for further growth and development.

-?????? Providing feedback and positively impacting the working habits of employees.

When we compare the performance management and evaluation, there are some differences. In below explain some of them are briefly.

Rectification Vs. Growth

Usually in performance evaluation, evaluate the past performance and effectively communicate to employees how to work the current tasks. It does not provide any strategy for future growth.

Performance management, on the other hand, focuses on expending time and resources on employees for the growth of the company.

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Learning Vs. Application

Performance evaluation evaluate the employees’ mistakes and communicates how an employee could have given better efforts. However, performance management provide guidance to employees to perform better in future.

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Occasional Vs Continuous

Performance evaluation usually taken place in yearly basis or maximum twice per year. But performance evaluation is continuous processes. It may be day to day conversation with management and employees also.

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Quantitative Vs Holistic Approach

Most of the time performance evaluation is quantitative approach. All things depend on the numbers. However, performance management is quantitative as well as qualitative. It is provided guidelines to the employees for their future achievements.

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HR Vs Managers

Performance evaluations’ main responsibility goes to the HR department. However, performance management conduct by the department managers, supervisors. Some time other parties also involve for performance management.

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Inflexibility Vs Flexibility

Performance evaluation is inflexible. It is hard and fast related thing. However, performance management is flexible and it most of the time coaching for the employees to achieve more.

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Operational Tool Vs Strategic Tool

Performance evaluation is some what of operational tool and it measure the target vs Actual and deviations. However, performance management is strategic tool, and it leads to achieve the organization’s vision.

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