Performance assessment and performance management: what's the difference?

performance assessment and performance management - the thinker
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What is Performance Evaluation?

Organizations seek to achieve collective goals and are made up of people who seek to achieve personal goals. In order to make sure that they are achieving their goals, companies have developed various evaluation systems to track financial results, production costs, quantity and quality of goods produced, individual performance of employees and customer satisfaction.

Competency Performance Scorecard

The main concern of the organizations is focused on the measurement, evaluation and monitoring of four main aspects:

  • results: the concrete and final results to be achieved within a certain period of time;
  • performance: the behavior or instrumental means that it is intended to put into practice;
  • Skills: the individual competencies that people offer or the skills they bring to the organization;
  • critical success factors: the fundamental aspects for the organization to be successful in its performance and its results.

Thus, the evaluation is a systematic assessment of the performance of each employee, the activities they do, the goals and results to be achieved and their potential for development, which has positive effects on the company.

A performance evaluation is a process in which organizations evaluate the development of the collaborator in the post using pre-established criteria. They may be desirable competencies and attitudes, outcomes towards goals or both.

how to use performance appraisal to retain better officials - radar appraisal chart

Some clients of LUZ, for example, acquire our competency performance evaluation worksheet. Your goal is to evaluate how your employees are developing the skills needed for the current position or for a promotion. For example, attention to detail, punctuality, logic, knowledge in finance, etc.

Competency Performance Scorecard

What is Performance Management?

Performance management is embedded in a broader concept within the universe of people management. Performance evaluation, for example, is one of the activities within performance management. This is any initiative to ensure / manage the performance of teams and individuals.

In this context, for example, the work of performance evaluation does not include the questioning of the goals, functions and competencies that are being evaluated. Performance management would already encompass this definition.

The definition and concept of performance management, if well used, will certainly have the condition of transforming a company, since performance management brings in itself the appreciation of employees and the link between performance and compensation.

CHA - HR Management

As an illustration, it can be said that performance management consists of:

  • the definition of functions;
  • the setting of individual objectives;
  • support for individuals and their accompaniment;
  • performance evaluation;
  • training for various skills;
  • performance-related pay;
  • training and development of people.

The success of this process will only be achieved if it is taken into account as an integrated cycle that guarantees the employee what the company expects of him. Also, let the company show you what your actual contribution is to the overall picture.

Competency Performance Scorecard

Performance Management and Human Resources

When it comes to performance management, you are talking about a set of behaviors manifested by the individual in the execution of activities and fulfillment of goals previously combined between the leadership, the employees, that is, with the work team, as a goal to achieve both institutional and individual objectives.

Performance management should be a way to target the development of the set of knowledge, skills and attitudes so necessary to the performance of the employees' functions. In order to practice good performance management, it is not enough for the company to only complete the evaluation forms and systematize the results.

The organization must have, throughout the process, the definition of a work plan, providing the appreciation of leadership over the task performed by its employee. Thus human resources must prioritize performance management, contributing to the change of organizational culture, in order to ensure the involvement of all. In this way, the people management has a significant and positive effect on quality performance as a whole.

Finally, it can be seen that the battle for a satisfactory performance management in organizations is related to the use of instruments associated with collective learning practices, team development, knowledge management itself and Human Resources.

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