1. What is performance management? What is the difference between performance management and performance appraisal?

The field of performance management can comprise two separate types of management. In one aspect of performance management, an analyst may view the performance of a company as a whole, and also evaluate the effectiveness of the managers and heads of companies in reaching goals. In another sense, performance management may be a system of evaluating employees to help them reach reasonable goals and thus ensure that the company performs better.

Performance management is about getting better result from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competing requirements. It is the process for establishing shared understanding about what is to be achieved, approach to managing and developing people in a way which increase the profitability that it will be achieved in the short term and long term whereas Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. It aim is to measure what the employee does.