Comparing Leadership Styles in Not-for-profit and For-profit Organizations
Abstract
Academic researchers have not found it important to attempt to complete studies based on leadership in non-profit organizations. A main problem that arises is that people tend to confuse the terms leadership and management with each other. Also leadership researchers tend to associate leadership in non-profit organizations with general research about leadership.
These two problems result in a minimum amount of research done to support studies about leadership in non-profit organizations. This lack of study about leadership in non-profit versus for profit can tend to make people believe that there are no differences between the two.
This study will attempt to differentiate between the two based on definitions, characteristics, tax laws, funding sources, organizational structure, incentives, leadership styles and human resources. This study will include semi structured interviews by the CEO of Guadenzia, a for profit organization in Baltimore City that provides counseling services for at risk youth in Northwest Baltimore and The Director of Northwest Baltimore Youth Services, Inc., a non-profit organization that also provides counseling services to at risk youth in Northwest Baltimore. This information will then be examined in regards to their similarities and differences.
Statement of Problem
Although there have been an unlimited amount of research done in reference to leadership styles in for profit organizations, there have been a lack of research done in the non-profit sector in regards to leadership. There have also been few research studies that address the differences in management process between non-profit organizations and for profit organizations.
Research Questions
1. Is there really a difference in leadership styles between non-profit and for profit organizations?
2. Is the management process different in a non-profit organization than a for profit organization?
Hypothesis
1. When it comes to problem solving, non-profit organizations is less concerned with the cost of a solution than a for profit organization.
2. In non-profit organizations they tend to find the “best solution” versus the “best cost solution” in the for profit sector.
3. It takes longer to solve a problem in a non-profit organization than in a for profit organization.
Statement of Limitations
This research will not attempt to prove that one form of business is better than the other, nor will it make any recommendations on what business to be part of or start.
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Show MoreNonprofit and voluntary type organizations play a major and integral role in American society. Each group exists today because they were established with the desire to help those in need by providing products, good and services. In the article “Toward Nonprofit Reform in Voluntary Spirit: Lessons From the Internet”, the authors stated the that nonprofit and the voluntary sector can include professional, the paid nonprofit, and grassroots organizations (Brainard & Siplon, 2004, p. 435). Even though these organizations may have the same or similar structures, I will compare and contrast the economic and political difference and similarity between the two.
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One, Marcel presented fifteen years of experience as a manager of a local utility company. This particular factor made her accountable towards all the business knowledge, organizational skills, and years of experience in the for-profit sector; traits that are highly valuable and transferable for a management position in the third sector. Second, the board members realized her involvement with nonprofit organizations; Marcel volunteered with various agencies and served as a board member
Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.
Performance challenges are faced in the same manner on both types of organizations non-profit and for profit organization. However they might be measured in a different way due to the different types of mission they have set for themselves and the different outcome they might expect. There are different ways that a manager can measure the work performance of their employees, by what they produce, b...
Throughout Dan Pallotta’s TED Talk he argues that the discrimination against nonprofits is limiting their ability to change the world. He believes that nonprofits operate under one rule book, while for-profits operate under another. And the book for-profits are encouraged to operate under, allows them to attract the best talent, spend money to make money, take risks, pay dividends, and take their time returning profits to investors.
5. Not-for-profit leaders are uniquely positioned to galvanize partnerships and resources across sectors, thereby expanding an idea's reach and achieving greater scale. Does your idea put this "stretch principle" into action? If so, how?
...conclusion may not always be the case. Like the charity organizations I’ve listed, both have been showing great effort of group behaviors.
Yukl, G. (2002). Leadership in organizations. Upper Saddle River, NJ: Prentice Hall. p. 1-19. Retrieved from http://www.blackdiamond.dk/HDO/Organisation_Gary_Yukl_Leadership_in_Organizations.pdf
Worth, Michael J. Nonprofit Management: Principles and Practice. 3rd Ed. Copyright 2014 by SAGE Publications, Inc.
Increasingly, not-for-profit organisations have taken to emulating the moneymaking practices of corporations. This trend has three primary causes: the decrease in funding from the public sector, the increase in competition for funds among an expanding number of not-for-profit organisations and the rise in funder pressure for not-for-profit organisati...
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Holloway, Joseph. “Leadership Behavior and Organizational Climate: An Empirical Study in a Non-profit Organization.” Emerging Leadership Journeys 5. 1 (2012): 9-35. http://www.regent.edu/acad/global/publications/elj/vol5iss1/ELJ_Vol5No1_Holloway_pp9-35.pdf
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