Performance Managment Verses Annual Performance Appraisal

In the ever changing business world that we live in the need for structure in the

workplace is even more prevalent. There has to be an order that is followed by every member of

each working team. This is why having a system like Complete Performance Management and

Annual Performance Appraisals is very important. The human resources division states that

“Managing employees is an important part of running a small business. The reputation of the

business may also rely partly on the performance of its employees. Owners of businesses often

develop an employee performance management system or performance appraisals to help them

evaluate employees” (Heathfield, 2012)

Complete Performance Management System is defined in Wikipedia as “A performance

management system is a method of employee evaluation and management that is used in a wide

variety of business settings. It helps to create a more productive working environment by

clearly outlining expectations and generating management feedback. It includes activities that

ensure that goals are consistently being met in an effective and efficient manner. Performance

management can focus on the performance of an organization, a department, employee, or even

the processes to build a product or service, as well as many other areas. ” (Wikipedia, 2012).

This system of evaluating employees is mainly used in the workplace but it can apply to any

situation where people interact or work together.

The primary function of the performance management system is mainly to

guarantee that all employees have a great understanding of their position and its functions. It’s a

great way for the employer to be able to have a visual approach to highlighting issues,

monitoring the