Performance appraisal vs performance management

The terms performance appraisal and performance management are often used interchangeably, but is there a difference?
Performance appraisal time has come again - a time when employees become unhappy and uneasy as this is possibly the only on to one contact, the only feedback and the only performance review to have taken place all year. For some it is unfortunately the annual “fault finding session”.
Performance Appraisal and review normally happens on an annual basis but it can also include half yearly or quarterly reviews. Now wouldn’t that be nice?
The appraisal or review session should be a discussion between the manager and subordinate on how the employee is performing in terms of the KPA’s. The problem of course is that in some instances (if not in fact many instances) managers have no idea how to effectively carry out a performance appraisal meeting or lack the required interpersonal skills to do so. The result is they use these sessions to point out problems with performance that have been going on over a period of time. The manager uses the appraisal session as a fault finding session and raises issues that should have been raised earlier and certainly not only during the appraisal session. This is where performance appraisal and reviews fail and this is why employees hate the annual performance review session. In addition the review session in many instances tends to be one sided – manager telling subordinate how he or she has performed.
Now is a good time to consider a change in approach. Now is the time to get managers to consider implementing a performance management strategy – a strategy that will be linked to performance appraisal in the future. Now is a good time for managers and supervisors to learn what management is all about, how to bring the manager back into management, how to manage on an ongoing basis, how to recognize quality performance and how to coach and mentor the under-performing employee.  
Performance management should be ongoing, it should apply to both good and poor employees and it should not only happen when a manager experiences a performance problem with a particular staff member. Problems must of course be dealt with as soon as they arise. However the employee who is performing well must also be recognized and encouraged to perform even better.
If problems arise the manager or supervisor must correctly identify and deal with the correct issue. This in itself requires a review or management meeting with the subordinate so that the real problem can be identified and dealt with.
A Performance Improvement Plan needs to be developed with subordinates at the end of or beginning of a new year. This will differ from the annual performance appraisal process as the PIP will be ongoing and can be implemented at any stage of the business year. Employee’s who are performing their jobs well and meeting the jointly agreed goals and objectives will not need to participate in performance improvement sessions but they should be recognized, motivated and encouraged to perform even better.
Following a performance improvement session where future action and behavior are mutually agreed to, the manager or supervisor should monitor and provide feedback to the employee regarding his or her performance. Should there be no improvement, or should the agreed to behavior not be met then the manager may take additional disciplinary action, if necessary by following the company’s disciplinary process. This should happen as soon as possible after the employee has been given the necessary help and assistance and every opportunity to improve.
Managers and supervisors should be committed to helping (mentoring and coaching) their staff to improve performance. This will be best achieved through ongoing counseling for performance improvement and by the continuous management of agreed performance standards.
Des Squire – Managing Member
AMSI and Associates cc
0828009057