Strategic Issues In Non-Profit Organizations

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STRATEGIC ISSUES IN NOT-FOR-PROFIT ORGANIZATIONS
There can be both private and public/ government organizations, working with non-profit objective. Knowing further about such not-for-profit organization is important; the major reason for this is employment opportunities given by these organizations and its contribution towards economic development.
Private not-for-profit organizations include private hospitals, educational institutions and organized charities and the public organizations include welfare departments, prisons and other state universities. The objective of this topic is to high light the major differences between the two categories of not-for-profit organisations.
IMPORTANCE OF NOT-FOR-PROFIT ORGANISATIONS
• It provides public
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The reason behind this is the above persons are directly connected with the operations of the organisations.

IMPACT OF CONSTRAINTS ON:

1. STRATEGY FORMULATION

• Goal conflicts interfere with rational planning
The not-for-profit organisations typically lack in a single goal to be achieved unlike the profit-making organisations. Diversified goals and objectives multiple sponsors create challenge to the organization this prevents the management from stating the organisation’s mission.

• Shift in focus from results to resources
The planning in the organization is mostly concerned with management of input rather on the result or outcome, as it is intangible in nature and not easy to measure.
• Internal politics and goal displacement
The effectiveness of the not-for-profit organisations is connected with the level of satisfaction of the funding group, the management tend to ignore the needs of the public or clients and focus on the desires of the sponsors. The process of formulating strategies and policies are vested in the hands of the paid director and not the board members.
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The management should always be alert to the view of the sponsors, this complicates the process of decision making and the managers will not be supported to make quick decisions.
• External-internal become important
When the organization is generating revenue from various sources such as donations, membership fees, government funds etc., the need arise for the people in the organization to relate both the internal external groups. This role is necessary in all service related organisations.
• Effect of professionalism
Not-for-profit organizations prefer and employ only professionals s their business is spread across the fields of health care, education, public safety etc., these professionals will have a clear cut idea of their job design. The addition done to the job design of a professional may create a negative image in the superiors and hence job enlargement is viewed negatively in these organisations.

3. EVALUATION AND CONTROL
• Performance is not influenced by reinforcements
As the expected results are not clearly defined and judging the efficiency of performance is subjective, there is no scope for predictions and any impersonal feedback, therefore the rewards and punishments have very little influence on the performance of the people in the organization and the organization

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