Making Nonprofits More Effective: Performance Management and Performance Appraisals

Abstract

Performance management and performance appraisals have long been regarded as key for effective strategic human resource management (SHRM) in the for-profit sector. When well- designed, performance management in general and performance appraisals in particular positively affect employees, managers, and organizations. Given the specific setup of nonprofit organizations, tools for performance management from the for-profit sector might not be easily applicable to nonprofit organizations. Nonprofit scholars have begun to study performance management, but to date the field lacks a comprehensive overview of this research. It is the aim of this chapter to summarize the research on performance management and performance appraisals in the nonprofit context and, based on this summary, to propose a comprehensive model of performance management and performance appraisals in nonprofit organizations.