The organization that makes extensive use of portfolios will typically enjoy the following benefits:
1. the portfolio provides an equitable, open process for the review and evaluation of an employee’s performance;
2. the portfolio procedure is one which will hold up under both legal and union review;
3. the portfolio provides valuable guidelines in the development of services for employees who wish to improve their performance;
4. the portfolio procedure enables representatives from various constituencies to become actively involved in the review of this organization’s employees;
5. the portfolio procedure can be used to encourage the ongoing collection, analysis and use of information about the functioning of the organization and, in particular, the nature and scope of the human capital that already exists in the organization (see previous essay)
6. the portfolio can serve as a model and catalyst for the reform of other performance appraisal systems that operate in the organization.
More generally, portfolio processes can promote new levels of trust between employees, supervisors and others involved in the review process. It can make a performance appraisal system truly appreciative. The flexible, yet thorough, procedures that are followed in developing a portfolio enable a review committee to make an accurate assessment of the achievements of an employee and at the same time provide an employee with valuable information concerning areas in which improvement is needed. The portfolio procedure is compatible with the publicly acknowledged values of most contemporary organizations to promote open and rational analyses of people, programs and problems. The portfolio process will also reduce the animosity that so frequently accompanies performance appraisal systems.
Specifically with regard to the ten functions mentioned in a previous essay in this series, the portfolio procedure can be an effective, although initially inefficient, procedure for personnel decisions (Function One) and can be used in conjunction with many developmental programs (Function Two). It can also be incorporated in institutional goal setting (Function Three) and role clarification (Function Eleven), if the formulation of categories is made part of the clarification process with regard to the goals or roles. Portfolios are very effective in helping to build a team (Function Four), especially if team members help to establish the portfolio categories and collect the documents.
