A Detailed Analysis of Performance Management and Appraisal in HRM

This report delves into the critical aspects of performance management and performance appraisal within the realm of Human Resource Management (HRM). It differentiates between performance management, a strategic and ongoing process focusing on planning, monitoring, and employee development, and performance appraisal, a more formal, periodic evaluation of employee performance. The report highlights the challenges faced by managers and employees in implementing these processes, such as ensuring fair and credible evaluation, providing constructive feedback, and maintaining employee motivation. It emphasizes the vital role of the HR department in establishing fair systems, conducting training, and ensuring that performance evaluations align with organizational goals. The report underscores how effective performance management can enhance employee engagement, productivity, and ultimately, contribute to the success of the company.

Running Head: Human Resource Management
Human Resource Management

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Performance management and performance appraisal
Performance management is the process of measuring the performance of the human resources in
an organization. On the other hand, Performance appraisal implies the investigation of a worker's
execution and their gauge for future development and advancement. In simpler words, it is said
that performance management is a process that targets at planning, monitoring, and evaluation of
the objective of the employee and his contribution to the organization (Van Dooren, Bouckaert,
& Halligan, 2015). The manager and employee of the company participate in the process to
evaluate the performance of the employees and to provide feedback to the employees. On the
other hand, performance appraisal valuation of the employee by the employer takes place. It is a
logical and systematic review conducted by the organization on annual basis to evaluate the
overall performance. It helps the employer to consider the abilities and skills of the employees
for their future growth that enhances the efficiency of employees (Dusterhoff, Cunningham, &
MacGregor, 2014).
There is a difference between the performance management and performance appraisal. Here's a
table that shows some of the essential variances (Mone, & London, 2014).
Performance management Performance appraisal
Strategic Operational
More likely to include dialog Top-down assessment
Future-oriented for growth Reviewing for corrections
Continuous or on-going evaluation, combined
with official reviews
Occur once or twice per year
Less likely to include scores Frequently uses rankings and ratings
Combines qualitative and quantitative
approaches
It usually includes quantitative approach
Flexible process Rigid system

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Related with the business needs Not related to corporate needs
Collective Individual
Not linked with the compensation Linked with the reimbursement
Less concerned with certification Often very bureaucratic with an emphasis on
documentation or paperwork
Conducted by the supervisors as well as
managers
Frequently conducted by HR department
These processes are conducted by the managers and the supervisors of the organization along
with the employees. The managers and the employees face some of the challenges while
implementing the performance management as well as performance appraisals. Management of
the performance system requires a disciplined outline. The management duty at diverse levels
needs to understand the estimation improvement, contracting and evaluation process enormously
well and apply it reliably. Moreover, the management wants to value that completing
management is not an occasion but rather something that is overseen every day except noted and
detailed at exact circumstances over surveys and evaluations (Shields, et.al. 2015). The manager
of the company needs to be very specific with the framework it is using to evaluate the
performance of the employees in the organization. Suppose, the managers or the supervisors of
the company didn't manage the performance on time then there will be a lack of the valid
measurements and the evidence. In this case, the manager will not be able to give collective
feedback to the employees. Even the employee will not be able to implement on the feedback
given by the manager.
Lack of credibility will be a challenge for the employees. If the employees will not keep trust on
the manager they will not be able to bring improvement in the performance according to the
feedback given to them. The relationship between the managers and the employees need to be

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truthful. The performance of the employees can affect the company’s goals and objectives.
Employees of the organization might find themselves de-motivated due to reviews and rating
process. This will also reduce the engagement of the employees in the activities. Over here, the
manager of the company should conduct training sessions that can help employees to understand
the reason behind getting fewer ratings and reviews. So that employees can work on the personal
development and will be able to perform well.
Effective performance management authorises representatives and collections to understand the
goals of the association and to distinguish how individual and group yields add to the
achievement of commanding destinations in agreement with hierarchical esteems. The
combination of individuals, assembling and accomplishment with hierarchical goals generates
individual, group and authoritative capability encouraging higher execution (Klingner,
Nalbandian, & Llorens, 2015). An Effective performance management process enables to form
the connection between vital corporate goals and individuals' everyday actions and errands. A
successful objective setting outline, consolidated with a procedure for the previous movement
can contribute fundamentally to a single, group, and hierarchical execution.
The employee gets Performance appraisals in the form of promotions or extra benefits.
Performance appraisals help the employees in understanding the role of the employees in the
success of the company. The high productivity of the employees will help in increasing the
productivity of the company and that will ultimately help in enhancing the success of the
company. An employee who gets the performance appraisal will find a rise in the job satisfaction
and try to improve the employee's sense of loyalty towards the company (Choudhary, Akhtar, &
Zaheer, 2013). This will result in the low employee retention during the period. Performance
appraisals motivate the employees towards the work and that shows a rise in the efficiency and

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productivity. An employee will be eligible for the performance appraisal once he/she will be able
to maintain performance in the organization.
HR of the organization plays a vital role in performance management and performance appraisal.
HR makes sure that Fair performance system takes place while evaluating the performance of the
employee. There should be no discrimination while evaluating the performance in context to the
demographic groups (Cerasoli, Nicklin, & Ford, 2014). The HR of the company conducts
training for all the managers to make sure that each manager of the company is following the
same process for all the employees. Poor performance reviews can create an adverse effect on
the relation of the employee and the manager. After the performance evaluation, the HR of the
organization checks with both the employees and managers if they are facing any concern
(Armstrong, & Taylor, 2014). HR maintains the scorecard for the employee’s progress, for this
HR need to maintain the record in the secure locations. This prevents any kind of failures in the
process. Though, the whole process is time-consuming by doing so a company will be able to
resolve if any of the problem faced by the manager or employees. The human resource team will
get to about the future action of the employees. This helps them to retain the employee suppose
in case the employee is going to leave the organization. HR also tries to enhance the morale of
the employees, so that they can give a maximum of contribution to achieve the organization
goals.
HRD assumes a critical portion in outlining and actualizing execution evaluations. The HR
crowd goes about as middle person between the practical heads or looking into experts and the
representative. It is a responsibility of the HR team to design the appraisal process. The
individual team in the organization will not be able to rate themselves according to the KRAs of
the performance (Jacobs, Belschak, & Den Hartog, 2014). It is the duty of the HR team to

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communicate the whole process of the performance appraisal to the employees. The Criterion of
performance evaluation should be clear as well as straightforward. Give suitable formulating to
representatives with the objective that they take the whole process of execution inspection
effortlessly and sportingly. Though, some of the employees believe that this process needs to be
conducted by the managers only.
Performance appraisal is just not a method to build one's reward but rather give inputs to
employees and monitor them accordingly. The HR group equally needs to sit with the looking
into experts to assure inspections are done on time and just the deserving representatives get the
rewards. Appraisal should not to be for everyone but rather just for the persons who have worked
really tough all as the time progressed. Once the appraisal is complete, it is HR responsibility to
hand over the additional letters or audit reports (Reiche, Mendenhall, & Stahl, 2016). The HR
team also guides the manager and the supervisors of the company so that there will be no
discrimination between the employees. Though it may create the confusion for the mangers
sometimes managers have to take step considering the KRAs achieved by the employees. Over
here, the HR role is an essential role and this will lead to the accomplishment of the strategic
goals of the company.
New strategies and HR's inclusion in Strategic administration now have changed the impacts
where HR evaluates individuals on the more important yield execution like quality, profitability,
inside and outer consumer loyalty. On the off chance that negative criteria are utilized, these
moved toward becoming imperfections or adjust squanders, and inward and outside client
grumblings or returns.

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References
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Cerasoli, C. P., Nicklin, J. M., & Ford, M. T. (2014). Intrinsic motivation and extrinsic
incentives jointly predict performance: A 40-year meta-analysis. Psychological
bulletin, 140(4), 980.
Choudhary, A. I., Akhtar, S. A., & Zaheer, A. (2013). Impact of transformational and servant
leadership on organizational performance: A comparative analysis. Journal of
Business Ethics, 116(2), 433-440.
Dusterhoff, C., Cunningham, J. B., & MacGregor, J. N. (2014). The effects of performance
rating, leader–member exchange, perceived utility, and organizational justice on
performance appraisal satisfaction: Applying a moral judgment perspective. Journal
of Business Ethics, 119(2), 265-273.\
Jacobs, G., Belschak, F. D., & Den Hartog, D. N. (2014). (Un) ethical behavior and
performance appraisal: the role of affect, support, and organizational justice. Journal
of business ethics, 121(1), 63-76.
Klingner, D., Nalbandian, J., & Llorens, J. J. (2015). Public personnel management.
Routledge.
Mone, E. M., & London, M. (2014). Employee engagement through effective performance
management: A practical guide for managers. Routledge.

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Reiche, B. S., Mendenhall, M. E., & Stahl, G. K. (Eds.). (2016). Readings and cases in
international human resource management. Taylor & Francis.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... &
Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts,
Practices, Strategies. Cambridge University Press.
Van Dooren, W., Bouckaert, G., & Halligan, J. (2015). Performance management in the
public sector. Routledge.