Abstract Challenges traditional models and approaches to performance management and presents an alternative methodology for developing performance objectives and managing performance. Argues that existing approaches generally do not succeed in meeting their objectives, are flawed in implementation, act to demotivate staff, and are often perceived as forms of control which are inappropriately used to "police" performance. Suggests that the alternative approach utilized in the case study organization, the British School of Osteopathy, is particularly appropriate for professional staff in the not‐for‐profit sector. Attempts to incorporate ethical concerns over performance management and, using a stakeholder approach, involves those affected in a dialogue over the design of performance measures and methods for performance improvement. Addresses four main ethical principles, namely: respect for the individual, mutual respect, procedural fairness and transparency of decision making.
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