224 Human Resources Management for Public and Nonprofi t Organizations
The performance evaluation systems of nonprofi t organizations also
vary widely. In many nonprofi ts, formal appraisal systems do not exist.
Health care facilities are known for evaluating direct service providers such
as nurses, social workers, and medical assistants on the basis of their indi-
vidual behaviors and performance, while executive directors and direc-
tors of development often receive bonuses or pay increases tied to the
organization ’ s fi nancial performance.
The only commonality found in the performance evaluation systems
of public and nonprofi t organizations is that both the raters and ratees
typically dislike having to participate in the evaluation process. Yet despite
the reservations expressed about performance evaluation systems, most
organizations do undertake some form of appraisal. Because perfor-
mance evaluations are used for different and sometimes multiple purposes,
employees and supervisors must understand why evaluations are being
conducted.
The integrity of a performance appraisal system depends on the raters ’
and ratees ’ understanding its objective. The following statement is taken
from a state agency evaluation instrument for civil service employees:The Employee Performance Evaluation is designed to encourage
all civil staff members to grow professionally and to reach full
potential in their work. Using actual job performance as a basis
for discussion, this review provides supervisors and employees with
an opportunity to identify developmental needs on a mutual basis.
In addition, it supplies a means of defi ning goals and objectives
and the most appropriate course of action to pursue in order to
increase competency and accelerate career progression. Supervisors
are urged, in the strongest possible terms, to discuss the comple-
tion of this form during, as well as, after the evaluation process.
This review is a tool of that process, not just the result of it. In
this agency, evaluation serves one purpose: employee training and
development.Rater Training
Training is essential for both ratees and raters if performance evaluation
systems are to be used in the strategic human resources planning process.
Ratees who receive training and understand the evaluation system tend to
be more committed to its goals. They should understand why the evaluation