How does performance evaluation differ from performance management in sales?

The distinction between performance evaluation and performance management in sales is rooted in their fundamental purposes and approaches. Performance evaluation primarily involves assessing past outcomes, such as sales results or targets met. This retrospective analysis provides insights into how well the sales team or individual salespeople have performed over a defined period. It often includes metrics like sales figures, client satisfaction, and achievement of specific goals.

On the other hand, performance management encompasses a broader perspective. It not only considers past performance but actively focuses on continuous improvement and development going forward. This means that performance management involves setting future objectives, providing feedback, coaching, and creating strategies to enhance the overall effectiveness of the sales force. By emphasizing areas for growth based on past evaluations, performance management aims to cultivate a culture of learning and achievement among sales professionals.

In this context, the correct choice highlights how evaluation is retrospective—dealing with what has already happened—while management is proactive, focusing on how to improve and succeed in the future.