Performance Management in the Not-for-Profit Sector with Reference to the National Trust for Scotland

Abstract

This paper explores the validity of Human Resource Management (HRM) models and business solutions developed in the private sector when applied to the not-for-profit sector. In particular, it explores the role of performance management (PM) in aligning employee effort with corporate goals using the National Trust for Scotland (NTS) as a case study. PM is used by the authors to describe the range of HRM policies and practices focused on managing employee motivation and performance within an organisation. The concept of PM is placed into a broader theoretical context exploring its role in generating and sustaining employee motivation. Within the case study, a model of alignment is used to evaluate the strength of fit between PM within the NTS and a number of strategic critical success factors (CSFs), specifically those relating to desired HRM outcomes. The analysis has highlighted that while intrinsic drivers may be the key to the motivation of those working in the sector; intrinsic motivators should not be taken for granted by senior management. Both policies and management behaviour were identified as key variables that can have a significant positive or negative impact in terms of motivation and performance, regardless of how worthwhile the cause.

Keywords:

• Performance management
• not-for-profit sector
• motivation
• strategic HRM
• strategic alignment

Notes

1. For example Taylorism and the development of Scientific Management through the 19th and 20th Centuries.

2. Herzberg analysis was based upon a survey of 200 accountants and engineers.

3. Baron & Krepp (1999: 17) make explicit reference to Porter's Five Forces analysis as a point of reference in the definition of the Five Factors analysis.

4. The identification of the second level Critical Success Factors (desired HR outcomes) is based upon analysis of survey data and relevant documentation.

5. The authors are aware of the efforts taken in the NTS to generate this two-way communication already in the context of preparing the new Corporate Plan.