Overview of Value Based Management

Values Based Management is a set of principles and procedures that guide the personnel management of any organization driven by a values orientation to staffing. This approach is ideal for the nonprofit organization because of the factors that influence how nonprofits are able to attract and retain staff members.

The basic model of values based management focuses on a supervisory loop (see below) to guide most of the supervisory interactions. This loop identifies the types of interactions and communications that are critical in providing staff members with the guidance and support necessary to succeed in their job.

Perhaps the single most important value of this approach lies in its center of the loop. Managing people using the Values Based Management model starts with respect. The key motivator for employees, and the value that must permeate all aspects of the supervisory relationship, is respect. Employees want to be treated with respect. Supervisors must make certain that all communication and interaction between them and the employees they supervise is governed by respect. It is not important to have supervisory relationships based on friendship, admiration, fondness or affection. In fact, relationships in the workplace may be hampered by such interactions. However, unless respect is reflected within the interaction, it will be difficult – if not impossible – to build an effective working relationship.

The other elements of the supervisory model work their way around the loop starting at the top (see diagram on previous page). Effective supervisory relationships start with crystal clear expectations of what constitutes a minimum acceptable level of performance. These expectations are tested using a “replay” technique to ensure the employee understands what is expected of the position. Training provides access to skills development and information to help the employee develop and maintain the personal resources to succeed. Monitoring and feedback provide information to the employee to help her understand how well her performance is meeting expectations, and to provide the perspectives that are critical to effective performance but impossible to gauge from the “inside.” Assessment provides a formal process for evaluating performance – mostly involving a synthesis of previous discussions and supervisory sessions – and helps set the stage for planning and preparing for the next cycle of performance (defined by a new year or a new set of responsibilities).

This should provide a basic overview of the model that drives Value Based Management. There are obviously many other aspects of the model that cannot be completely explained here. We encourage you and key members of your staff to consider enrolling in the Value Based Management class offered through Portland State University.