PSYCH-105 Industrial Psychology
Chapter 17: Performance Appraisal
Difference between Performance Appraisal and Job Evaluation
1. Performance appraisal identifies the differences among the employees in terms of their performance.
1. Job evaluation is the analyses of various jobs to know the demands which the normal performance of a particular job make on average performance of the employee concerned.
2. The chief purpose is to appraise the performance of individuals to make decisions like increase in pay, transfer, promotion etc.
3. Provides employees with information regarding to their strong and weak points.
4. Also serves us guidelines for the management to consider the type of training which should be impacted to the employee.
2. The purpose of job evaluation is very limited i.e., to determine the worth of the job on the basis of demands made by it on the average workers.
5. Rates the man and not the job as it is concerned with the abilities of the individuals.
3. Job evaluation rates the job in the organization in order to determine their worth and fix the wage or salary level that will be fare and equitable.
6. Performance appraisal is used for taking personnel decisions such as promotion, demotion, transfer etc.
4. Job evaluation is generally used as a basis of wage structure in the organization.
7. Compulsory. It is done for all employees.
5. It is not compulsory.
Difference between Performance Management and Performance Appraisal
1. Performance appraisal is only a part of performance management.
1. Performance management is a broader process. It involves performance appraisal, performance planning and counselling.
2. Performance appraisal is a simple backward-looking process where measurements regarding past (what has happened) are done.
2. Performance management is a forward-looking process. It drives an organization towards desired goals.
3. The main objective of performance appraisal is “what and how to evaluate?”
3. In performance management, the objective is management of performance.