Knowledge and Skills for Managers
Managers in a not-for-profit organization need similar management knowledge and skills like their counterparts in the private sector because of the reasons identified in the succeeding paragraphs…
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First, because in both situations, managers head an organization that needs to exercise problem solving, logical thinking, technical knowledge, effective communication, reasonableness and understanding. Joane Fritz explains in an article entitled “What are the key characteristics of a non-profit organization” published in About.com in 2011, that non-profit organizations and private organizations may differ in their purpose when it comes to income distribution, but in either way, managers in both organizations are directly responsible to their stakeholders. Non-profit organizations are sometimes referred to as “non-stock” corporations and most often registered as a corporation, an individual enterprise, association, partnership or foundations. WEX article, entitled “Non-profit Organizations” published in Legal Information Institute of Cornell University Law School cited churches, public charities, public schools, public clinics and hospitals labor unions, professional associations, research institutes, museums, and some governmental agencies as good examples of a non-profit organization. As compared to private organizations? the non-profit organization belongs to the public as no one person controls the organization. Its assets are assigned to the charitable, educational, literary, scientific or religious purposes of the organizations. Thus, a manager under this set up is guided by the principles of non -profit organization in pursuance of his duties. What makes the non-profit organization distinct from private organizations is their treatment of profit in the operation. Non-profit organization also derives profit from its operations but the profit does not go to the members of the board not even to its founders. In this manner, managers see to it that this policy is followed as he becomes accountable to donors of the organization. As a manner of control, managers are required to render financial accounting report to the Federal State and government as non-profit organizations are entrusted with funds in accomplishing their mission. Working for a non-profit organization takes a lot of sacrifice. Fritz, in the same article previously cited, said the law requires that board of directors should not be compensated except for expenses for travel and for attending board meetings. Salaries of the five highest paid officers of the non-profit organization are also required to be declared, and that includes salaries of the manager. The manager, too, has to do a lot of corporate reporting aside from the Federal State through its annual income tax return. He is also controlled by the State Attorney’s General Office that makes it a point that non- profit organization follows the laws (Fritz, Joane. 2010). The “Basic Business Principles of Management” as explained by Raul Thadani in an article in Buzzle.com remain the same whether one is managing a big corporation, a small one and a non-profit organization. These basic principles do not isolate usage for non-profit organization and same rules and concepts are universally applied in every situation wherein management is deemed necessary. (Thadani, 2010) The managerial task Thadani of Buzzle.com in same article of Basic Management Principles outlined five basic management principles a manager should follow which I have explained below (Thadani 2010). The first step a manager does in a non-profit organization is to set the goals of the company or the activity to be done. Most often, this is expressed in the mission and vision statements established by the company and the realistic targets set by the managers. The duty of the manager here is to convey these goals to the employees so that
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