Implementing an employee performance management system in a nonprofit organization
Article first published online: 15 MAR 2011
© Wiley Periodicals, Inc.
Nonprofit Management and Leadership
Volume 21, Issue 3, pages 255–271, Spring 2011
How to Cite
Becker, K., Antuar, N. and Everett, C. (2011), Implementing an employee performance management system in a nonprofit organization. Nonprofit Management and Leadership, 21: 255–271. doi: 10.1002/nml.20024
- Issue published online: 15 MAR 2011
- Article first published online: 15 MAR 2011
Nonprofit organizations are not exempt from the imperatives of employee attraction, retention, and motivation. As competition for staff, donors, and funding increases, the need to manage employee performance will continue to be a critical human resource management issue. This article outlines a study of the introduction of a performance management system in an Australian nonprofit organization and analyzes its design and implementation. It explores how performance management can be introduced and used effectively within a nonprofit environment to benefit staff and the organization. However, the use of performance management is not without its challenges, and the research also identified initial employee resistance and a resulting initial spike in labor turnover. However, findings indicate that if nonprofit organizations are willing to undertake consultation with staff and ensure that the organization's specific context, values, and mission are reflected in the performance management system, it can be a useful tool for managers and a direct benefit to employees.