Sample Management Evaluation Form

Cooperatives March 08, 2011 Print Friendly and PDF


Authors: Phil Kenkel, Oklahoma State University, phil.kenkel@okstate.edu, and Bill Fitzwater,
Oklahoma State University


Appraising the manager’s performance is an important activity for the board of directors. Developing a formal process that is routinely applied makes appraisal less confrontational. The appraisal process revolves around the identification of realistic and attainable performance standards.


Standards should cover all functions of the manager’s job and can involve both outcome and activities. Setting the standards should be a joint activity of the manager and board. Performance standards should be continuously evolving with the growth and changing role of the cooperative.


Each board should develop an evaluation process that they are comfortable with. The sample evaluation form below can be used as a starting point. The form can be refined in future years as the board and manager develop and change. The one thing that should remain the same is that the evaluation process is used to help the cooperative move forward.



Management Evaluation Form


Name of the person being evaluated

_______________________________________________________________________________


Answer each of the following questions by ranking them according to the scale provided at the top of each section. There is also an opportunity at the end of each section to provide additional input by answering the questions provided.


Manager/Board Relations

General Performance Standards

                             Seldom 	                     Always
                              	1 	2 	3 	4 	5 

How well does the manager?

  • Provide information to the board on a timely basis that allows the board to make informed decisions.
                             	1 	2 	3 	4 	5 
  • Develop realistic budgets and operating plans, and provide timely reports identifying progress and reasons for variations.
                              	1 	2 	3 	4 	5 
  • Make good timely decisions, identify and follow up on problems, and provide general leadership?
	                        1 	2 	3 	4 	5
  • Advise the board on needed resources, facilities, capital and operating needs.
                              	1 	2 	3 	4 	5 
  • Assist the board in establishing strategic plans, implementing actions to achieve strategic goals and measure progress toward goals.
                              	1 	2 	3 	4 	5 
  • Seek new business opportunities or ideas for increasing productivity.
                              	1 	2 	3 	4 	5 

Rate the Overall Performance of the Manager in Manager/Board Relations.

                              Poor	                    Excellent 
                              	1 	2 	3 	4 	5 


Marketing/Market Share

General Performance Standards

                          Not Achieved         Met 	    Exceeded
                              	1 	2 	3 	4 	5  

How well does the manager?

  • Aggressively pursue grain market share.
                              	1 	2 	3 	4 	5 
  • Contract grain purchases.
                              	1 	2 	3 	4 	5 
  • Seek out new business opportunities.
                              	1 	2 	3 	4 	5
  • Market share in fertilizer greater than 25 percent of potential in trade territory.
                              	1 	2 	3 	4 	5 
  • Market share in grain greater than 40 percent of the potential in the trade territory.
                              	1 	2 	3 	4 	5 
                                	

Specific Performance Standards (examples)

  1. Annual grain turnover should be greater than 1.2 turns.
  2. Analyzed member satisfaction or sales patterns during previous year.

Rate the overall performance of the manager in Marketing.

                              Poor                          Excellent
                              	1 	2 	3 	4 	5 


Financial

General Performance Standards (each board should develop their own standards)

                           Standard  Actual Achieved   Met   Exceeded
                              	1 	2 	3 	4 	5 

How well does the manager?

  • Local income/sales.
                              	1 	2 	3 	4 	5 
  • Return on local assets.
                              	1 	2 	3 	4 	5 
  • Working capital.
                              	1 	2 	3 	4 	5 
  • Days' sales in accounts receivable.
                              	1 	2 	3 	4 	5 
  • Total expenses/gross margin.
                              	1 	2 	3 	4 	5 
  • Personnel expenses/gross margin.
                              	1 	2 	3 	4 	5
  • Debt/total assets.
                              	1 	2 	3 	4 	5 
  • Farm supply sales/average inventory.
                              	1 	2 	3 	4 	5 

Specific Performance Standards (examples)

  1. Not more than 15 percent of accounts receivable should be more than 60 days old.
  2. Met or exceeded all of lender’s financial covenants.

Rate the overall performance of the manager in Financial Management.

                              Poor	                    Excellent 
                              	1 	2 	3 	4 	5 


Coordination/Operations

General Performance Standards

                             Seldom 	                      Always
                              	1 	2 	3 	4 	5

How well does the manager?

  • Use an effective chain of command, delegates effectively, maintains current job descriptions and conducts regular performance evaluations.
                              	1 	2 	3 	4 	5 
  • Maintain grain shrinkage at below 2 percent.
                              	1 	2 	3 	4 	5 
  • Manage controllable costs.
                              	1 	2 	3 	4 	5 
  • Maintain compliance with policies and standard operating procedures.
                              	1 	2 	3 	4 	5 
  • Appropriately administer the cooperative’s credit policy.
                              	1 	2 	3 	4 	5 

Specific Performance Standards (example)

  • Maintain shrinkage at or below 2 percent.

Rate the overall performance of the manager in Coordination/Operations

                              Poor                         Excellent
                              	1 	2 	3 	4 	5 


Personnel Management

General Performance Standards

                              Poor 	                    Excellent
                              	1 	2 	3 	4 	5  

How well does the manager?

  • Aggressively seek out people to fill key positions in cooperative administration.
                              	1 	2 	3 	4 	5
  • Train personnel to assume a greater level of responsibility.
                              	1 	2 	3 	4 	5 
  • Apply policies and practices to the daily activities of the cooperative.
                              	1 	2 	3 	4 	5 
  • Encourage individual initiative and teamwork.
                              	1 	2 	3 	4 	5 
  • Enforce corrective action in a direct, but fair, manner when necessary.
                              	1 	2 	3 	4 	5 

Specific Performance Standards (examples)

  1. Performance evaluations of all employees should be conducted at least once a year.
  2. Conducted meeting of all employees once per quarter to discuss board actions, policies, plans, benefits or other employee-related topics.

Rate the overall performance of the manager in Personnel Management.

                              Poor                          Excellent
                              	1 	2 	3 	4 	5 


Member Relations

General Performance Standards

How well does the manager?

                              Poor 	                     Excellent
                              	1 	2 	3 	4 	5 
  • Plan for growth in volume and number of patrons in relation to market potential.
                              	1 	2 	3 	4 	5 
  • Make and maintain contacts with members, the overall community and organizations.
                              	1 	2 	3 	4 	5 
  • Inform membership of changes in cooperative policy.
                              	1 	2 	3 	4 	5 
  • Project a positive image to the patrons.
                              	1 	2 	3 	4 	5 
  • Respond promptly and effectively to patron concerns or complaints.
                              	1 	2 	3 	4 	5 

Specific Performance Standards (examples)

  1. What was the rate of growth in patrons and volume relative to the area’s overall market potential and cooperative objectives?
  2. Is the growth reflective of servicing all potential customer areas?

Rate the overall performance of the manager in Member Relations.

                              Poor 	                     Excellent 
                              	1 	2 	3 	4 	5 


Additional Written Comments

Please respond to these questions:

1. What are two things the manager does most effectively?

A.

B.


2. List two specific ways, not mentioned previously, the manager could be more effective.

A.

B.

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This work is supported by the USDA National Institute of Food and Agriculture, New Technologies for Ag Extension project.