ABSTRACT
This chapter examines issues concerning the design of PMS in NGOs and highlights the need for performance measures to be congruent with and precisely related to the desired outcomes of the NGO, to be sensitive to changes in the circumstances of the NGO and to be verifiable. The chapter discusses the suitability of recent developments in integrated PMS, notably the balanced scorecard, to NGOs. It examines how the pluralistic values that are an important part of the culture of NGOs can be preserved when implementing PMS in a business-like way. This involves the use of PMS to achieve compromise between the values of senior management and employees, rather than domination by senior management values. The chapter examines how the values of employees can be accommodated and a pluralistic culture maintained by using PMS in an expressive way. It draws on our own research and the literature to identify and outlines the implications for PMS stemming from important characteristics of NGOs.
