What can performance management substitute for?

Performance management can serve as a substitute for traditional appraisal systems because it involves a more holistic, ongoing process of evaluating and improving employee performance, rather than relying solely on periodic evaluations, which can sometimes be outdated or fail to reflect real-time progress. Traditional appraisal systems often focus on annual reviews that may not capture the nuances of an employee's contributions and growth throughout the year.

In contrast, effective performance management emphasizes continuous feedback, goal-setting, and development, allowing for a more agile and responsive approach to managing employee performance. This ongoing dialogue between managers and employees fosters a culture of accountability and improvement, aligning individual objectives with organizational goals. By providing regular assessments and support, performance management helps ensure that employees have the tools they need to succeed, making it a more dynamic alternative to traditional appraisal systems.