The term
“performance management” refers to methods that help a non-profit organization
meet their objectives in an effective matter. This approach combines an
organization’s achievements and assessments with the goal of improving the organization’s
efficiency. This paper talks about how performance management is practiced in a
non-profit management.

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The definition of ‘Performance
Management’ is not just limited to the process of collecting and analyzing
data. It is a process of analyzing what the organization s doing to improve its
performance and to taking corrective action if necessary. Performance
Management is done for a variety of reasons like to obtain focus and alignment
throughout the organization, to put limited resources to maximum utilization, to
test and refine new approaches to a problem quickly and to provide noticeable
amount of success. An effective performance management generally follows a 3
pronged strategy. First, the goals, missions, and strategies of the
organization are defined. Then, the organization then defines the indicators
that drive the mission, programs activities and operations based on these
indicators and gathers outputs of these operations. Finally, based on all the
information collected, the organization starts working on a data-driven decision-making



The main reason to
make sure performance management process are working properly is to make the
link between the strategic objectives of the company and its daily activities
stronger. The key to success is combining effective goal setting with a method
to track the success and to identify obstacles that lead to success or failure.

organizations, in general, set up their objectives and plans that line up with
their main goal. For the employees to know to better understand these goals and
help in achieving them, they need to have a better understanding of why do they
the work they do and what the goals of the organization are. Also, employees
tend to work better in an organization when the organization starts showing
interests in them. An effective performance management helps a non-profit
organization achieve these goals. When done will, this system helps aligns an
employee’s behavior with the organization’s goals by improving the working

Performance managements
empowers an employee to work to the best of their abilities. The process that
the employer uses differs in non-profit organization. The first stage of
performance management in a non-profit organization is planning. In this stage,
the non-profit organization should set up plans and objectives for their
employees and discuss with the employees their expected level of performance
for the job. These expectation from employees depend on the type of work they
do and the department they work in. At the end of this stage, both the employer
and the management reach a common decision regarding the goals of the employee
for the next one year.

The second step is
assessment. The non-profit organization takes feedback from employees and
clients, along with observations by the management. It also assesses the
evaluation of the employees from the previous years and their skills.
Sometimes, a non-profit organization has an employee perform self-evaluation
and then compares it with the official evaluation in meetings. Managers should
review their notes and documentation that have been generated throughout the
year to more effectively asses the employee’s performance. This assessment
should be bias free.


The final step in
performance management for a non-profit organization is recognition. This step
involves the organization recognizing the work of the employees, that is both
their successes and areas where they need to improve. These areas of
improvements are discussed with the employees so that they can improve, and
their accomplishment are awarded through verbal recognitions or bonuses and
perks in salary.

As a part of the
assessment process, the manager and employee may identify areas where further
training or development is required and the activities they can undertake to
improve the employee. This expectations for training can be documented in the
performance assessment form, and at the end of the year the result of these
learning activities is also documented.

In most of the
non-profit organizations, the executive directors perform the performance
managements, but since they are also employees, it is necessary to include the
board of directors in this kind of activities.

Companies often
tend to confuse performance management with performance measurement.
Performance measurement is a part of performance management. Performance
measurement measures the good performance of a company based on financial,
customer, process and people measures. This measurement helps the company
decide if they are on the right track to achieve the strategy and attain their
objectives while performance management helps the companies to formulate
performance measurement strategies and then analyze these strategies for the
betterment of the company.

management is a good practice for companies due to a variety of reasons.
Firstly, a performance management makes the communication between and employee
and a manager a daily task that will prove to be a continuous learning process
for the employee. Secondly, performance management process can help an
organization find the strongest and the weakest employees in the company and
decide the future actions accordingly. Thirdly, appraisal on good work keeps the
staff motivated and makes them a good job continuously.

Management in non-profit organizations has its own share of disadvantages.
Firstly, it is a lengthy and time-consuming process. For a non-profit
organization, spending so much time on performance management means wasting it
where it can be spent on other activities. Secondly, bad performance results
might be a huge discouragement for the employees of a non-profit organization.
Therefore, it is necessary for a manger to document not only the bad outcomes
but also the good outcomes of an employee. Thirdly, it is difficult for a
manager to keep out his biases while analyzing the performance of the employee.





management can help a non-organization align the goals of their employees with
objectives of the company by helping the employees understand the importance of
the tasks they are doing and providing them a continuous motivation to do a
good job and produce effective results.