• Although many organizations have systems labeled “performance management,” they usually are only
performance appraisal systems. Performance appraisal emphasizes the assessment of an employee’s strengths
and weaknesses and does not include strategic business considerations. Also, Performance appraisal systems
usually do not include extensive and ongoing feedback that an employee can use to improve her performance
in the future. Finally, performance appraisal is a once-a-year event that is often driven by the HR department,
whereas performance management is a year-round way of managing business that is driven by managers.