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Performance Management or Performance Appraisal:
A Night and Day Difference in Approach

• Goal setting should be aligned with the organization's strategies and cascade from top to bottom; goal approval moves from bottom to top.
• Performance management is a year-long process that includes performance appraisal but does not begin with or end with performance appraisal.
• Employees should be measured on specific, quantifiable, time based, achievable and relevant results (what), and also on the organization's values.
• Should be sensitive to the time limits and spans of control of management, however, management should still be accountable for differentiating performance, and giving meaningful and developmental feedback to employees.
• Should be more significant rewards for outstanding performers while poor performers should be dealt with quickly and candidly.
• Performance management process should be simple, user friendly, easy to understand, and anchored with simple calculations.