Performance Management And Appraisal, Procedural Fairness, Best Practices, Communication Skills, Rater Errors, Feedback, Performance Review, Case Study

Differences between Performance Management and Appraisal

1. It is a very common perception, rather a misconception among the supervisors that both performance appraisal and performance management are same concept. They in fact, are very different from each other. Performance Management refers to the process of managing and developing the performance of the employees in order to promote growth within an organisation whereas Performance Appraisal refers to the ‘system’ of evaluating the potential and performance of the employees in an organisation in order to determine the compensation. Performance appraisal is often termed as performance review as well and it is received by an employee when he has worked for an organisation for a good period of time. Performance Management is an ongoing process, while performance appraisal is been conducted once or twice a year. Furthermore, performance appraisal is usually conducted by the HR department of the company, along with the direct managers and the corrections are made retroactively. Performance management on the other hand involvesa various stakeholders, as it is an ongoing process and forward looking as well. Performance management is completely flexible. It can be adopted according to the value of the team. But, unlike Performance Management, Performance appraisal is typically inflexible and is more about individualistic approach. Moreover, Performance appraisal is regarded as the operational too for improving the efficiency of the employees in an organisation, whereas this is also not the same in case of performance management. In fact, it is primarily regarded as the key and strategic tool. To sum up, performance management facilitates, encourages and empowers the employees, while performance appraisal evaluates rates and gives feedback to them. It is very important for the employees to know the difference between performance appraisal and performance management. This is because both of them play a very important role in the overall success of an organisation and the success of every organisation depends on the combined efforts of both the entrepreneur and the employees. Every organisation has its very own and different culture and structure. With the same, the companies in modern era are facing big-time transformation in coping with the rapidly changing needs of the business environment. Targets plays a crucial role in the development of an employee within his organisation and both the performance management and performance appraisal involves setting of performance targets, monitoring whether or not they have achieved their respective targets or not and finding out ways in which the employees could meet their targets. So, it makes them difficult for the employees to decide whether they seek the appraisal or they need their performance to be managed in order to thrive in their respective filed. The supervisors in a company often use the system of performance appraisal as a way for ensuring that the employee is doing his job and meeting his job criteria effectively. Apparently, the supervisor manages the employee’s performance in order to make sure that his works are aligned with the goals of the organisation. Hence, it is very important for them to know the difference between these two.

2. Procedural fairness and natural justice both have similar meaning and hence, are often used interchangeably. However, procedural fairness or natural justice refers to the legal principle which fortifies fair decision making. It has developed gradually over time and it is completely concerned with the process of decision making, used by a decision maker, instead of the actual outcome which is reached after the completion of interviewing. There are certain rules that the procedural fairness requires and they include- lack of biases, evidence for supporting decision, a hearing and inquiry into the issues in dispute. Procedural fairness and natural justice are important to the managers and the organisation because it is the duty of near about every private organisation to observe the procedural fairness while making any decision that may affect the rights of an individual, his legitimate expectations from the firm and his interests. Mangers must ensure procedural fairness at every stage along the pathway of their investigation. Procedural fairness and natural justice requires investigative managers to approach the task start the work with objectivity, care and transparency. Like, for example, whichever notable unfairness or bias in the manner questions are asked by the managers to their employees has the potential to taint the net results of the conducted investigation, which ultimately will affect the organisation as well. In the organisational context, procedural fairness addresses the rules by which the decisions are made within it. It greatly benefits to the organisation. The employ that recognise the process of decision making as fair tends to be more satisfied with their respective jobs. They then are committed to the firm and often forgive the disappointments at their workplace. Furthermore, they are likely to contribute more to the changes in the organisation than those who are not satisfied and believe that they are unethical or unfair. Procedural Fairness has the power of giving voice to the employees as well as the mangers. It helps the managers to cultivate, boost or to maintain a good working relationship with their employees and the subordinates. With the same, it also helps them to maintain a control or power they pursue over their subordinates.

Importance of Procedural Fairness in Performance Management

3. The document of best practices, policies and procedures works as a roadmap for the everyday operations. These policies ensures compliance with the laws and regulations and with the e same, they provide guidance to the managers and employees in their process of decision making and for streamlining the internal processes. It helps them to measure their individual performance.


  • Building trust and respect
  • Employee retention
  • Coaching
  • Interview and hiring
  • Project planning
  • Managing meetings
  • Motivating and encouraging
  • Performance improvement appraisal
  • Compensation and benefits
  • Legal compliance.


Types of rater/rating errors



It is the propensity to make a proper notion from one aspect of the job performance of a person.

Leniency or strictness

It is the propensity to evaluate all the staff and people as outstanding as well as to give inflated ratings to them, rather than a true assessment for their performance.

Central tendency

It is the propensity to evaluate every employee or individual as an average, despite of differences in their performance.


It is the propensity of a rater to assess an individual relative to the other individuals rather than their on-job requirements.


It is the inaccuracy in the performance appraisal that is caused by the reliance of the evaluator on the very recent occurrences of the employee’s behavior.


It is the degree or the measurement that evaluates the similarity of the data that are collected by the different raters.


The six tips are mentioned below:

  • Strike to a professional tone
  • Balance the negative feedback along with a praise
  • Be direct while giving the feedback
  • Watch your words
  • Emphasize on facts rather than feelings
  • Seek specifics


1.  The elements and behaviors of a high performance team member and their performance

  • Commitment: The team members of an effective team see themselves as belonging to the team.
  • Trust: The team members of an effective team has faith in each other to maintain confidences, honor commitments and to support each other
  • Process Involvement: Everyone plays his or her role on the team
  • Communication: An effective team communicates frequently and effectively with one another.
  • Continuous improvement: The team members make sure that continuous improvement really happen within the team.

2.  I would recognize or reward the excellence of the staffs based on  their performance by the following steps:

  • Step1- Identifying the goal of the recognition program
  • Step2- Establishing a budget
  • Step3- Setting a committee
  • Step4- Setting criteria and guidelines
  • Step5- Selecting a reward to be given
  • Step6- Communicating with the employees
  • Step7- Maintaining and repeating the recognition program

8. Part A-

1. The possible causes of the performance problem are lack of skills and motivation.

2. Work life balance, work flexibility, reward and recognition, being supportive and clear, communicating without being judgmental and encouraging and motivating them.

3. For assistance to assist me through this process, I would gain support from my superiors (senior management) and my sub-ordinates (employees). I shall be requiring their help because in order to give rewards and recognition I shall be requiring sufficient resources, which could be given only by the senior management. Furthermore, I shall also be requiring the support of the staffs because before giving them rewards I need to know the exact reward that has the potential to motivate them. If I give them a reward of my own choice or of the choice of the senior management then, it may or may not motivate them to that extent.

4. I would use the transformational leadership style. This is because this leadership style is a style where the supervisor or the leader works along with his subordinates in order to identify the required change and for creating a vision for guiding the change by inspiring them and executing the change in tandem with the committed members of a group.


Performance Management

Job Analysis

Recruitment and On boarding

Reward and Recognition

Performance appraisals

Disciplinary Processes

Learning and Development

Succession Planning

Job descriptions

Setting the KPIs

Selecting talent

Setting expectations

Setting performance


Identify great performance


Reward great performance

Reinforcing values and behaviors

Setting accountabilities and expectations


Coaching performers

Setting performance standards

Coaching and mentoring

Skill gap analysis

Training and skill development

Career planning

Identify high performance

Part B-

9. Managing the performance of the staffs is a continuous process. It is done to ensure that the performance of the employees is contributing to the team goals as well as the business in a whole. The first and the foremost thing that I should always keep in mind is that my way of managing the performance of the staffs is fair to all. In order to conduct an efficient performance management I shall do the following:

  1. I shall clearly communicate about my expectations with all my staffs
  2. I shall provide the staffs with appropriate tools, information and training they require in order to succeed.
  3. I shall offer constructive and fair feedbacks regularly
  4. I shall be fair and reasonable while evaluating their performance
  5. I shall always recognize their success and achievements
  6. If in case there are any performance issue, I shall address them in a timely and proactive way
  7. I shall always resolve the addressed performance issues before they become significant.

If new staffs are hired by the company:

  1. I shall review their job description as well as the performance expected from the employee
  2. I shall explain him how his work contributed to the organizational goals
  3. I shall design a plan in order to help him acquire every necessary competencies
  4. I shall explain him how and when I will provide him feedbacks based on his performance
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