Comparing Leadership Styles in Not-for-profit and For-profit Organizations
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.
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?
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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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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