Non-Profit Management and Leadership-Free-Samples for Students

Question: Identify the Importance of Strategic Management on the Non-Profit Organizations. Answer: Introduction Literature review is the secondary research that involves the researcher to go through the existing literatures on a given topic. This study identifies the importance of strategic management in non-profit organizations like charity or NGOs. This study focuses on the concept of strategic management and its impact on the non-profit organizations. It will again identify the theories of strategic management and relate it with the success of the non-profit organizations. The report stretches its focus on the nonprofit communication with the stakeholders involved in the operation. This study includes some of the important peer reviewed articles cover the above mentioned areas. They are: Wiggill, M. N. (2011). Strategic communication management in the non?profit sector: a simplified model.Journal of Public Affairs,11(4), 226-235. Scherhag, C., Boenigk, S. (2013). Different or equal treatment? Donor priority strategy and fundraising performance assessed by a propensity score matching study.Nonprofit Management and Leadership,23(4), 443-472. Malatesta, D., Smith, C. R. (2014). Lessons from resource dependence theory for contemporary public and nonprofit management.Public Administration Review,74(1), 14-25. Method Selection The review of literature can be done using various approach that are argumentative, integrative, historical, methodological systematic and theoretical. However, the approach required for this particular study is the systematic review that is a summary of available evidence pertinent to a clearly formulated research question. Aim of this approach is to record, critically evaluate and scientifically sum up all the research incorporated in the paper to define the research problem. Hence, a systematic review tries to explain the following: Identifies the extent of existing research for clarifying a particular approach Recognizes contradictions, gaps, inconsistencies and relations in the literature. Prepare conceptualization. It is to summarize the points made by the previous scholars Evaluates comments and criticizes the already developed theories. It also proposes direction for the future research. The process of carrying out a systematic review includes: Formulation of the research question Formulation of the research design Description of the theme of the research Measurement of the key variables Discussion of the finding made through the empirical literature review The journals used in the literature review re collected from the Google Scholar. This database is considered as it contains authentic resources. Moreover, extra care has been taken selecting the journals available in the database. Only the peer reviewed journals were considered for the research as it provides more authentic data. Journals describing the theories of strategic management are given priority as they helped in clearing the concept. The next priority was given to the journals that identify the benefits strategic management can provide to the nonprofit organizations. The research was kept within the limits of advantages the nonprofit organization can obtain from using strategic management and how it should be different from the for-profit organization. Literature Review (Finding and Discussion) Strategic Management and Organizational Success Hill, Jones and Schilling (2014) stated strategic management as a process that involves continuous planning, monitoring, analysis and assessment of all the necessities in an organization for meeting the goals and objectives. Organizational success on the other hand as defined by Ricciardi, Rossignoli and De Marco (2013) is the attainment of increased and sustainable results. Success in relation to nonprofit organization can take multiple forms as the success is seen from the point of view of the stakeholders that includes donors, executive directors, volunteers, staffs and clients. They have a unique public-trust function in the society that offers public benefits through private and voluntary actions. Hence, they have a multi-faceted mandate. It leads the nonprofit organization to turn to strategic management, which is a long standing practice in the business world. It is to satisfy the stakeholders essential to a nonprofit organizations success. This is because the stakeholders are the supporting pillars of the overall movement of a nonprofit organization. The stakeholders in a nonprofit ranges from clients, donors and resource providers, experts or regulators, staffs, partners or allies, constituents, policy influence targets, members, general public and the media. These stakeholders exist in both internally and externally to their respective organization, and in relation to compound organizations. Need of Strategic Management in Non-profit Organizations Nonprofit organizations have critical impact on the lives of diversified stakeholders. Hence, it requires a nonprofit organization to be strident in their operation and minimize the waste in the process. Minimizing the resources helps them in having greater impact on its stakeholders and broadcast the positivity. They also need to maintain greater transparency and accountability I their operation. These are some of the challenges now a day every nonprofit organizations face as the funding of the organizations is considerably decreasing over time. This is due to various reasons that can be identified in the existing literatures. The new paradigm identified by Kerlin and Pollak (2011) is the declination in the government funding. It had been a stable source for the nonprofits for a long period of time until recently. They now have to look for other sources to increase their resources required for continuing their operation. This issue has developed due to the increase competition in the market. A number of nonprofit organizations have started their venture on same community with similar goals. It is hence becoming a pressing issue for the donors to decide where to invest to receive a greater outcome. Balassiano and Chandler (2010) on the other hand have identified the tax challenges currently being faced by the nonprofit organizations. Rules and standards related to the tax and accounting has considerably changed in the recent years. However, the rules for the for-profit and nonprofit are not similar. The nonprofit receives tax exemptions. However, there are some criterions in the operation that needs to be followed to avail the tax exemption. Polonsky and Grau (2011) have stated that these issues are the initiators for nonprofit organizations to turn to the strategic management. It helps them in developing and determining the long-term goals, direction, programs and performance of the organization. Many of the approaches adopted in the nonprofits have been taken from the for-profit sectors. However, Polonsky and Grau (2011) have identified that the strategic management in nonprofit organization has to be different from the for-profit ones. It is due to the difference in the nature between the two types of organizations. The nonprofit organizations are more human-driven and human-focused than the for-profit ones. Theories of Strategic Management and Nonprofit Organization Balanced Scorecard Theory The balanced scorecard is used as a measuring tool used by the organizations. It is a performance metric used in the strategic management for identifying and improving various internal functions of a business and their resulting external outcome. Greilings (2010) study on the German nonprofit organizations found out that organizations implementing balanced scorecard reflects an unexpected viewpoint. It is due to the incompatibility the tool in the nonprofit. The organizations studied failed to adapt it to the distinct requirements of the nonprofit operations. Resource Dependency Theory This theory on the other hand identifies the impact of external resources of the organizations on the behavior of the organization. These external resources in case of nonprofit organizations are the donations received from the external stakeholders. The organizations behavior completely depends on the donations received from the external source. The management ensures the demands of a donor controlling the resources. Malatesta and Smith (2014) in their study identify the importance of resource dependency theory in the nonprofit organization. He stated that this provides guidance to the managers of nonprofit organizations to understand the considerations and consequences relevant to different types of inter-organizational partnering. It will in turn help the organization to choose its donors wisely and manage the operations accordingly for achieving success in their vision, mission and objective. A mixed methods study conducted by Scherhag and Boenigk (2013) on the cultural nonprofit organizations identifies the importance of communication between the organization and its donors. According to the authors, this theory helps the organizations to monitor and manage the revenue expectations, but fails to modify the marketing, outreach and other communication approaches. Strategic Communication management in Nonprofit According to Wiggill (2011), the strategic communication management focuses on the importance of engaging with stakeholders for building strong relationship with its stakeholders that will in turn assist the organization in achieving its goals. However, implementation of this on the typical nonprofit organization that regularly experiences functional constraints when compared to the realities of for-profit organization. This is because of their limited financial resources and partly because of the limited public purposes as chartered. Wiggill further identifies in her study that the nonprofit might face some of the challenges due to the inaccurate implementation of the SCM. There can be two hurdles an organization can face that are lack of fund and lack of knowledge. Lack of knowledge is the greater obstacle the companies are currently facing in the process of implementation, due to the lack of understanding the purpose and benefits of SCM by the leaders. She further comments in her study that SCM is potentially capable of providing benefits to the nonprofit organization. It seeks managers of these organizations to receive training on SCM before implementing SCM in the nonprofit sector as it considerably varies from the for-profit organization. Conclusion It can be concluded from the above that the strategic management and organizational success is interrelated and can facilitates each other. However, strategic management in case of nonprofit organization will be different from the one implemented in the for-profit organization. The recent development in the market situation made it necessary for the nonprofit organizations to implement strategic management in their venture. The primary hurdles identified from the review are the funding and tax issues that made it necessary for the organizations to strategically manage their resources. Moreover, the theories reviewed above identify the process of planning, communicating, managing and leading unique organizations in the public trust. It identifies that the BSC uses the point of view through the lens of process. Similarly RDT implements it by managing the resources and SCM identifies usefulness through human relation. References Balassiano, K., Chandler, S. M. (2010). The emerging role of nonprofit associations in advocacy and public policy: Trends, issues, and prospects.Nonprofit and Voluntary Sector Quarterly,39(5), 946-955. Bryson, J. M. (2011).Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement(Vol. 1). John Wiley Sons. Greiling, D. (2010). Balanced scorecard implementation in German non-profit organisations.International Journal of Productivity and Performance Management,59(6), 534-554. Hill, C. W., Jones, G. R., Schilling, M. A. (2014).Strategic management: theory: an integrated approach. Cengage Learning. Kerlin, J. A., Pollak, T. H. (2011). Nonprofit commercial revenue: A replacement for declining government grants and private contributions?.The American Review of Public Administration,41(6), 686-704. Malatesta, D., Smith, C. R. (2014). Lessons from resource dependence theory for contemporary public and nonprofit management.Public Administration Review,74(1), 14-25. Polonsky, M., Grau, S. L. (2011). Assessing the social impact of charitable organizationsfour alternative approaches.International journal of nonprofit and voluntary sector marketing,16(2), 195-211. Ricciardi, F., Rossignoli, C., De Marco, M. (2013). Participatory networks for place safety and livability: organisational success factors.International Journal of Networking and Virtual Organisations 4,13(1), 42-65. Scherhag, C., Boenigk, S. (2013). Different or equal treatment? Donor priority strategy and fundraising performance assessed by a propensity score matching study.Nonprofit Management and Leadership,23(4), 443-472. Wiggill, M. N. (2011). Strategic communication management in the non?profit sector: a simplified model.Journal of Public Affairs,11(4), 226-235