Continuous Assessment 1

TITLE: “Performance Management System) on FUNDAMENTAL DIFFERENCES

BETWEEN PERFORMANCE MANAGEMENT & PERFORMANCE APPRAISAL.”

NAME: INDRAJIT MONDAL

URN: 12000922026

SUBJECT: PERFORMANCE MANAGEMENT SYSTEM

SUBJECT CODE: HR404

Introduction to Performance Management
System (PMS)
A performance management system (PMS) is a
strategic and integrated approach to continuously
improving the performance of individuals and teams. It
involves setting clear expectations, providing regular
feedback, and aligning employee goals with the
organization's objectives. Effective PMS aims to
enhance productivity, foster employee development,
and support the achievement of business goals.
Understanding Performance Appraisal (PA)
1 Definition
Performance appraisal is a systematic evaluation of an employee's performance and
contributions to the organization. It involves assessing strengths, weaknesses, and areas
for improvement.

2 Process
It typically includes setting performance goals, ongoing feedback, formal assessments,
and the development of performance improvement plans if necessary.

3 Objective
The primary objective is to gauge employee performance, provide constructive feedback,
and make decisions related to salary increases, promotions, or training needs.
Key differences between PMS and PA
Focus Time Frame Goal Alignment
Performance Performance PMS aligns individual
management system management is goals with
focuses on continuous ongoing and organizational
improvement and continuous, whereas objectives, whereas
development, while performance appraisal PA is more focused
performance appraisal is typically conducted on individual
is more centered on annually or semi- achievements and
evaluating past annually. compensation
performance. decisions.
Benefits of PMS over PA
1 Continuous Improvement 2 Enhanced Engagement
PMS allows for ongoing It fosters greater engagement as
performance discussions, employees feel supported and
coaching, and development motivated through regular
opportunities, leading to feedback and development
continuous improvement. initiatives.
3 Strategic Alignment
PMS ensures that individual and team objectives are aligned with the
organization's strategic direction, maximizing overall performance.
Implementing PMS in your organization
Leadership Support Employee Training Technology Integration
Obtaining buy-in and Integrating PMS software
Training managers and
active support from and tools can streamline
employees on the PMS
leadership is crucial for the process and facilitate
process and best practices
successful data-driven decision-
is essential for effective
implementation. making.
implementation.
Common challenges in implementing PMS

Resistance to Change Clarity in Expectations Data Accuracy

Overcoming resistance from Ensuring clear Addressing concerns related
employees and leadership communication and to data accuracy, fairness,
regarding new performance understanding of and consistency in
management processes. performance expectations performance evaluations.
and evaluation criteria.
Conclusion
Key Takeaways
•Performance Management is a holistic, ongoing process focused
on development and improvement.
•Performance Appraisal is a specific event within this system,
concentrating on past performance for reward and decision-
making.