Overall Program ObjectivesThis series of four courses will focus on management
principles and practices as applied to: Consumer Behavior Corporate Governance Economic Systems and Transformation Essential competencies required to effectively
manage and govern Nonprofit Organizations [that can lead to collaborative partnerships with private and public sector organizations]
Learning Objectives1) Culture as a management issue
2) The relevance of studying Nonprofit Management
3) The Scope of America’s Nonprofit Sector
4) A contextual framework provided by history and tradition
cultural competencycultural attachéculture-shockcultured-personcultural revolutioncultural exchangecounter-culturearts & culturecultural herocultured pearlcultural centeramong others
Culture & Management
In the context of discussing and learning about the practice of management, the term Culture takes on two different complex forms and applications.
Cultural Impact
Values, Beliefs, Assumptions, Artifacts, Language, Mores, Styles of Learning
Internal Organizational Perspective
Com
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Culture & ManagementTwo Forms:
1. Culture from an external or comparative Social/Societal Perspective
2. Culture from an internal, micro- perspective of an organizational entity.
Societal DifferencesAs Managers, we need to be aware that there are,
in fact, differences of style, customs, ways of working and thinking as reflected in how a person has been “acculturated” in his/her upbringing.
Cross-Cultural Differences
Differences based on:
Nationality:
Country of origin
Regional differences
Local Community
Scope of the Nonprofit Sector There are approx. 1.6 million identifiable
organizations in the nonprofit sector
Nonprofits represent about 6% of all types of organizations among the three sectors of government, nonprofit,and for-profit.
Scope of the Nonprofit Sector Revenues of $670 billion, equivalent to 9% of
the US gross domestic product (GDP)
Exceeds the GDP of Australia, Canada, India, Netherlands, Spain and most of the countries in the world
Scope of the Nonprofit Sector
Nonprofits control cash, investments and property that exceed $1 trillion.
Scope of the Nonprofit Sector
Approximately 134 million people work in full and part-time positions in all types of nonprofits. (11 million people work as employees of 501 C 3 & 4 nonprofit organizations.
Scope of the Nonprofit Sector
In addition to paid employees, nonprofits employed the equivalent of 9.4 million fulltime volunteers who contributed 12.7 billion hours of volunteer time, estimated at $250 billion of free labor.
56% of the adult population volunteer an average of 3.5 hours per week.
Scope of the Nonprofit Sector
11% of all employees in the US economy (combining paid employees and volunteers) work for nonprofit organizations.
The Context of the Sector Five cogent explanations for the origin of the
nonprofit sector: Historical Market Failure Government Failure Pluralism Solidarity
Historical Context Society preceded the establishment of the
state. In the absence of government organizations,
individuals had to deal with common concerns and problems on their own.
It was advantageous to join with other people in associations, organizations, and voluntary groups.
Historical Context A provision of a range of services (charity,
housing, health, adoption, legal, vocational, etc) were developed without government support or regulations.
Market Failure Economists point to the marketplace for the
production of goods and services that are consumed individually.
For goods and services that are consumed collectively by groups of people, problems can arise in the marketplace. Individuals have incentives to be “free riders”
Market Failure Since all economically rationale individuals
will make the same calculation, the result will be inadequate production of collective goods, such as : security/community safety clean streets parks and nature preserves Etc.
Market Failure There are two solutions to market failure:
Government - through the levy of taxes compels all citizens to assume the cost of providing collective goods.
Market Failure
Nonprofits - groups of individuals can pool their resources to produce goods and services they mutually want but cannot convince a majority of citizens to support.
Groups linked by common social, economical, and/or cultural goals can provide the collective goods desired in the absence of majority endorsement or government involvement.
Government Failure
Democratic governments encounter difficulties in providing collective goods: mobilizing for a majority of citizen support
necessary for public action is a long and arduous process.
When government has won a majority of citizen support, citizens often find fault with the size, cost, and unresponsive nature of government systems.
Government Failure
Regardless of the validity of the complaints, citizens may prefer that a non-governmental organization deliver the services.
These preferences have fueled “privatization,” a complex pattern of cooperation and interdependence between the public and nonprofit sectors.
Pluralism Expressive aspects leading to the existence of
nonprofits. Gives a voice to the great diversity of viewpoints
held by citizens.
The most significant social reforms known in this nation are attributed to a voluntary sector
Solidarity Preserves a capacity for joint action among
citizens. Coming together to pursue common purposes
through associations, voluntary groups, and organizations.
Alex de Tocqueville observed that in democratic societies, equality of conditions can render individuals relatively powerless.
Blurring Boundaries Nonprofit organizations do many things that
are also done by for-profit businesses and government entities. While the boundaries are not clear-cut, there are some distinctive activities (such as religious worship).
The Theory of the Third SectorA Context for Understanding Today’s Nonprofit Sector & Civil Society Activities
Unlike the study of political science which can more easily be traced to Plato and Aristotle, or the field of medicine capable of being traced to Hippocrates of Cos, the lineage of nonprofit management is not clear-cut and precise.
-- Stephen R. Block
“A History of the Discipline”
The Origins of the Sector1. The Roots of Charity and Philanthropy
2. The Development of the Volunteer Role
3. The Evolution of Tax Exemption
4. The Adaptation of Management Techniques for Nonprofit Organizations
Developing more complex societies
using rules and structure, such as
the Babylonians Code of Hammurabi.
Religious doctrines,
ideology and influences on giving.
The Egyptians notion of blessed giving,
2300 years before the Christian Era
The Reformation and the breakup of England’s feudal system.
The Poor Laws of 1601 codified:- Public responsibility
- Local responsibility - Relatives’ responsibility
The Development of the Volunteer Role
The evolution of Volunteerism parallels the evolution of charity and philanthropy
The Influences of Participation
- Protestant Patrician Tradition
- Urban Ethnic Influence
- Organizational Tradition
- Impact of Philanthropy
The Evolution & Impact of Tax-Exempt Status
The relationship between
tax and charity is a symbiotic one.
In the United States:
Tax exemption follows from an historical, unwritten rationale for tax exemption to various statutes as Revenue Acts.
From Management Practice to the Emergence of Nonprofit Management
The advancement of management
practices can be traced from the Dark Ages
to the development of commerce in the Mediterranean.
Management Thought
The influences of: Henry R. TowneJoseph WhartonFrederick Taylor
Henry GanttHarrington Emerson
Henry FayolHorace B. Drury
The Human Relations Movement
The Contingency Approach &
The Systems Approach
Management in the Modern Organization
Management tools are being widely used in the nonprofit sector and applications of those tools are being modified to achieve goals that are not addressed in the for-profit or government sectors.
Or, in some cases, nonprofits address goals as equal partners with government and the for-profit sector.