Non-profit organisations have been a major subject of discourse in the recent past, especially in regards to management planning. From an objective point of view, Hu, Kapucu and O’Byrne (2014, p.84) argue that most non-profit organisations that fail to succeed in the marketplace often lack robust strategic planning in their management styles. Needless to say, strategic planning is of great importance to non-profit organisations bearing in mind that most of them may easily miss out the benefits of professional and effective management strategies.
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It is prudent to mention that the operating environment for non-profit organisations is very dynamic. Therefore, this type of organisation is often compelled to embrace various strategies in order to remain relevant with the passage of time. In other words, change management is a crucial consideration that all non-profit organisations should adopt. In fact, one of the reasons why public or government and other profit-oriented organisations excel is the existence of a strong change management mechanism that takes care of the dynamic markets.
Hu, Kapucu and O’Byrne (2014, p.85) suggest that non-profit organisations have the broad options to initiate or increase participation in advocacy programs, boost the level of income earned, encourage and pursue joint program collaboration, cut off existing programs and also add new operations into the existing programs. These are some of the measures that non-profit organisations can put in place, especially when faced with market risks and uncertainties.
Better still, it is crucial for non-profit organisations to pay a lot of attention to current programs and services or seek external help or a close working relationship with other interested stakeholders. In the case of Otago Farmers Market Trust, there is a need for the group to develop a master plan for the market due to the expected expansion. The Otago farmers market will definitely expand in the future. Therefore, the market trust group should be ready to face the pending changes. In addition, the human services offered at the market might require regular improvement as the population continues to grow.
Alexander (2000, p.288) asserts that the current environment for non-profit organisations requires the adoption of adaptation strategies. In a survey carried out among not-for-profit human service organisations, it was found out that organisational viability can only be maintained if adaptive measures are firmly put in place. For example, non-profit organisations are supposed to expand their client bases and services offered continually. As a matter of fact, they should perform beyond the expectations of their targeted clients because they are also funded from other sources (Forsythe 2000, p. 494). As much as they are not oriented to make profits does not imply that service provision should be poor.
In terms of revenue streams, non-profit organisations are highly encouraged to increase their networks. Operations such as effective and strategic financial planning cannot be fruitfully accomplished by non-profit organisations in the presence of inadequate funding. Sufficient monetary resources are also required to boost the level of motivation of workers who are deployed in non-profit organisations. Hence, workplace satisfaction of both volunteers and salaried persons should be part and parcel of priorities for non-profit organisations. For a not-for-profit organisation like the Otago Farmers Trust, it is vital to oversee and take care of the workplace needs of employees. Outcome measures can also be generated by non-profit organisations when effective business techniques and technologies are employed. Other organisations or individuals who fund non-profit organisations are often interested in the overall service outcomes of such organisations before they can pledge their support.
Theuvsen (2004, p.118) observes that most non-profit organisations are conventionally managed in a completely different way compared to profit-oriented organisations. However, non-profit organisations ought to be managed well irrespective of their nature or purpose. It is not surprising that several non-profit organisations have adopted management styles that were initially crafted for profit-oriented organisations. For instance, the non-profit sector is rapidly adopting management styles such as strategic human resource management, profit centres, and strategic planning of the market sector. Performance appraisals for both the junior and senior employees are also being fast-tracked by a number of top-class non-profit organisations. It is becoming common practice for employees in non-profit organisations to receive their pay based on individual performance (Theuvsen 2004, p.119).
Although some non-profit organisations have fully implemented the pay-per-performance plans, it is crucial to mention that such a work plan might be applied only in certain strict circumstances. In this regard, the adopted goals are supposed to be compatible and controllable employees. Workers should be in a position to influence the projected goals before they can be evaluated against the same objectives.
On a final note, it can be concluded that non-profit organisations play fundamental roles in society, especially if the services and programs offered by the organisations target the improvement of human welfare in society. Hence, their scope, financing and structure are some of the core areas that should be brought into focus when exploring the organisations. In addition, it is vital to emphasise that non-profit organisations significantly differ in terms of size, character and role.
Alexander, J. 2000, “Adaptive strategies of nonprofit human service organisations in an era of devolution and new public management”, Nonprofit Management and Leadership, vol. 10, no. 3, pp. 287-303. Web.
Forsythe, D.W. 2000, “Management Control in Non-Profit Organisations / Financial Planning for Nonprofit Organisations / Nonprofit Investment Policies / and others”, Nonprofit and Voluntary Sector Quarterly, vol. 29, no. 3, pp. 490-496. Web.
Hu, Q., Kapucu, N. & O’Byrne, L. 2014, “Strategic Planning for Community-Based Small Nonprofit Organisations: Implementation, Benefits, and Challenges”, Journal of Applied Management and Entrepreneurship, vol. 19, no. 1, pp. 83-101. Web.
Theuvsen, L. 2004, “Doing Better While Doing Good: Motivational Aspects of Pay-for-Performance Effectiveness in Nonprofit Organisations”, Voluntas, vol. 15, no. 2, pp. 117-136. Web.