Management of Non-Profit Healthcare Organizations Case Study

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Introduction

The management of non-profit organizations and achieving their goals in supporting society in conditions of a limited budget is not an easy task. Managers need to be leaders, decision-makers, fundraisers, and fulfill many other duties. This paper examines an imaginary agency that organizes community seminars on reproductive and sexual health for adolescents. The text considers decision-making techniques, financing, motivation, and leadership issues necessary for the organization of such workshops. The paper also includes a review of the organizational change case study.

Decision-Making Techniques

The need of the community may dictate the decision to hold a seminar. Based on the desired result and working backward, non-profit agencies can use the logic models technique (Denhardt et al., 2018). It includes inputs, activities, intermediate outcomes, and end outcomes elements. For example, the agency identifies a problem – the high prevalence of sexually transmitted diseases (STDs) among adolescents, and therefore, the end outcome is their sexual health. Measures that may contribute to improved health include condom use, avoidance of accidental sexual activity, regular medical screening, and other actions – these are intermediate outcomes (CDC, 2021). It is helpful to organize sexual and reproductive health training to achieve this purpose, representing activities in a logical model. Based on the required actions, the agency decides on inputs.

Current Cost of Free Seminars

The seminars’ cost depends on its purpose and the participants’ number. Jensen (n.d.) identifies several basic seminars elements, which are applicable to the case. Particularly, location and equipment can be provided under an agreement with schools, where seminars are held for groups of 10-12 participants. The agency should provide a specialist and materials, and there is no need for costs on food and marketing. Thus, funding should cover handouts – $15 per group and an employee’s salary, on average $25 per hour (“Non profit organizations,” n.d.). Funding for the agency’s activities comes from a government grant.

Alternative Sources of Funding for Future Seminars

  • One alternative source of funding for NGOs is the collection of donations. They can come in different amounts from individuals and are often the primary source of financing (Duquette, 2017). NGO representatives should develop and support relationships with major sponsors.
  • Another alternative for NGOs to receive funds is to invest. This measure involves the use of the stock market or bank deposits. However, investments may carry some risk, and NGOs should be cautious.

Motivation and Challenges

The Atmosphere

  • Such organizations should not be overly competitive but relatively calm and promote cooperation. However, the constant search for sources of funding, work in limited conditions is very stressful.
  • Moreover, public services often face complex social problems and their consequences, which have an oppressive effect.

Make the Difference

  • This motive often seems unattainable since a limited budget does not allow the agency to achieve all the goals. If it manages to execute the program, the results are more likely to be long-term and not material, and therefore difficult for evaluation.
  • A large number of problems in society do not allow workers to focus on achievements.

Leadership and Overcoming Challenges

Example 1

  • Loss of motivation of employees is a frequent challenge to the leaders of non-profit agencies. The problem can negatively affect the agency’s activities and effectiveness and cause employees burnout.
  • Overcoming the challenge is possible when striking a balance between work and life, recognizing the achievements of each employee, and involving them in various processes for the best collaboration.

Example 2

  • Another example of the problem is various conflicts between employees. They worsen the working environment and can lead to non-performance and staff turnover.
  • Leaders use negotiation strategies to resolve the conflict, such as distributive bargaining. The main thing is to establish a context for cooperation and help the parties resolve the disputed issue.

Organizational Change Case Study

The case study is a short reference to Jan Perkins’s activities as Fremont city manager. Having refused the consultant’s services, which was supposed to help solve economic difficulties in the city, Perkins independently managed the changes. The main actions included understanding the citizens’ needs and creating effective communication with them. Together with the team and representatives of the community, she managed to achieve significant success.

Resistance to Change

When organizations change their work processes, employees are often suspicious of the situation and do not want to change anything. Such actions are a manifestation of resistance to change, and opponents of change may sincerely believe that innovations will bring deterioration, but their opinion is more likely to be based on emotional and mental reactions (Denhardt et al., 2018). Overcoming resistance to change is critical for managers since in any area, only changes are permanent.

Reducing Resistance

Resistance can cause personal flow and, consequently, bring losses to the organization. However, if the administration considers such factors as employee participation in decision-making, relationship with management, job security, and personal qualities, they can mitigate resistance (Amarantou et al., 2018). Respect for the opinion of employees and providing them with guarantees will establish confidence. Then, the changes will bring benefits to the company and employees.

Examples

  • The situation in the city neighboring Fremont can be considered as one of the examples of resistance to change since their administration could not accept the recommendations of a professional and begin changes.
  • Denhardt et al. (2018) also give examples of changes that can cause resistance – new technologies use, increasing citizens’ requirements for agencies, and employees’ requirements for their jobs.

Perkins’s Strategies and Techniques in Bringing Change

Since all organizations are undergoing a process of change, several approaches to their bringing formed. Denhardt et al. (2018) highlight changes through Management Action or Reorganization, Organization Development, Adaptive Inquiry, and Six Sigma and the Lean Method. Their differing characteristics lead to the fact that any of the methods cannot be universal, and in different circumstances, a certain approach will be more successful than the other.

Perkins’s Actions

Perkins did not invite a consultant and managed the changes, which is close to bringing changes through management action or reorganization. However, some actions examples and features indicate that the city administration has taken a different approach. Therefore, Perkins is more likely to bring change through organization development (OD) in the presented case. She used strategies and techniques that correlate with the features of OD.

Examples

  • The OD approach extends improvements to the entire system in this case. Following OD, Perkins emphasized how to do better, not what. Essential action was using survey feedback – representatives of citizens shared their opinion on the city management work.
  • According to Denhardt et al. (2018), focus on improving communication with an audience, establishing assistance relations, and taking responsibility for the audience’s well-being are also examples of OD.

For-Profit Perspective

Differences between Not for Profit and For-Profit Organizations

The critical difference is hidden in organizations’ classification – some goal is to work for their profit, and others – to transfer profits to society’s needs. As a result, these organizations have different sources of financing – for-profit receive investments, loans, and earnings from sales and services, and not for profit use donations and grants. Accordingly, for-profits pay taxes, and not-for-profits are exempt from them.

Organizations have differences in management – commercial ones are led by people, who contribute to financial success, and non-profit ones by those who care about the problems being solved – the environment or society. This characteristic affects requirements and responsibilities for the organizations’ employees and the values and mission that guide them. In for-profit companies, they must contribute to financial success, and in non-for-profit – to solving problems.

Challenges to Change within a Not-for-Profit vs For-Profit

The effectiveness of workflows and change processes often depends on employee motivation. In the case study, employees were also motivated by being part of a society they sought to help, and it seems that such incentives do not work in for-profit agencies. However, Andrade and Westover (2020) have revealed that reasons such as benefits to society, communication with others were critical for employees of for-profit organizations.

Therefore, Perkins would be able to motivate employees of commercial organizations to make such a significant change. Important factors would be the type of company activity that benefits society or the choice of another substantial motivator, as employees’ autonomy or work-life balance (Andrade & Westover, 2020). Moreover, with more resources thanks to other funding sources, for-profits can overcome the changes in a less problematic way.

Orientation towards Change

What I found out About Myself

September 14, 2021, at 6 pm, I answered the quiz. According to the survey, I received 7 points out of 10, which suggests I am ready for change and will not show strong resistance. I like this result since flexibility at the moment is a significant advantage at work and in life. As a result, I understand that I can remain productive and not afraid of change.

How Will I Use to be an Effective Leader

Following the survey and my preferences, currently, I see myself more as a follower than a leader. Therefore, I can be a team member that welcomes innovation and inspires others with my example. As I develop my skills, I can become a leader in the future. Then, my focus on change will not only be inspiring for a team but also an incentive for innovation.

Conclusion

Changes are an integral part of the work, and managers need to control them effectively. In particular, one critical aspect is overcoming the resistance to change that often manifests itself among staff. The case studied demonstrated examples of resistance to change and the application of organizational development to bring the change. It also pushed for reflection on the motivation significance that inspires employees to work.

References

Amarantou, V., Kazakopoulou, S., Chatzoudes, D., & Chatzoglou, P. (2018). . Journal of Organizational Change Management.

Andrade, M. S., & Westover, J. H. (2020). American Journal of Management, 20(1), 46-63.

Centers for Disease Control and Prevention. (2021). CDC Website.

Denhardt, R. B., Denhardt, J. V., Aristigueta, M. P., & Rawlings, K. C. (2018). Managing human behavior in public and nonprofit organizations (5th Ed.). Sage.

Duquette, N. J. (2017). Nonprofit and Voluntary Sector Quarterly, 46(6), 1142-1165.

Jensen, K. (n.d.). Chron Small Business.

(n.d.). ZipRecruiter.

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