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Once the process has been developed, communicate with all staff about the purpose and the
steps in the performance management process.
You should be prepared to make adjustments to your new system as necessary.
Peer Appraisal: staff of equal rank within the organization are asked to evaluate the employee
Team Appraisal: similar to peer appraisals; employees who work as part of a team are asked to
evaluate the team's work
Assessment Centre: the employee is assessed by professional assessors using several types of
evaluation such as work simulations and actual activities
360-Degree or Full Circle Appraisal: the employee's work is reviewed by gathering input from
representatives of all the groups the employee interacts with such as supervisor, peers,
subordinates and clients.
Combination of Methods: Some organizations combine different methods into their performance
management process. In particular some organizations include an evaluation of competencies -
the knowledge, skills and abilities that distinguish superior performance. Establishing
competencies for performance management in an organization requires careful thought. Without
careful preparation, evaluating competencies can be very subjective.
In the voluntary sector, 360-degree appraisals are sometimes used for evaluating the Executive
Director. Management-by-objectives is an effective approach to performance management for all
other employees.
Because it's the most practical system for most non-profit organizations, we will be focusing in
this section of the website on Management-by-Objectives.
Management-by-Objectives
Performance management using a management-by-objectives (results-based) approach has
three phases:
Phase 1 - Planning
at the end of the performance management cycle the manager and employee meet to document
the work of the past year;
accomplishments and shortfalls relative to the work plan are summarized using a performance
management form;