Could you define the differences between performance appraisal, performance review, and performance management?

We regularly find managers confused with talent management software. What’s the difference between performance appraisal, performance review, and performance management? In lots of cases the terms are, very unhelpfully, used interchangeably; however there are some very specific differences.

The greatest difference is between performance management and the other terms. Performance management is an ongoing process that should take place all year round. It is a set of activities as opposed to a single event, and performance appraisals/reviews are part of that annual cycle. Simply, performance management includes objective setting, development and training actions, one to ones, career discussion, and appraisal/performance review.

Performance review and performance appraisal, meanwhile, are generally considered to be interchangeable. However there are some differences in how they are commonly used in the UK. Performance review is more commonly used in the Public and Not For Profit sectors. Certainly in the NHS, the term PDR or PDP (Performance and Development Review or Process) is well known.