Non Profit Leadership - Research Paper Example

? Non Profit Leadership Leadership is an essence for all the sectors for ensuring smooth functioning of their operations. Likewise, its importance in nonprofit sector is also ascertained to be vital and indispensible. Correspondingly, intends to identify the roles of leaders in the nonprofit sector and prudently differentiate between the business leaders and leaders in the nonprofit sector. Accordingly, it has been identified that there exists a radical differences between business leaders and leaders in the nonprofit sector on the ground of demographic variables and diversity. It has been further observed that it is crucial for older leaders in the nonprofit sector to display concrete roles in order to motivate next generation leaders. Introduction Leadership has emerged as an indispensible element for both profit making organization as well as non-profit making organization. The implementation of leadership skills helps the organization to attain its objective by influencing the employees and their performance. The leadership style of any organization depends on its vision and mission and its nature of business. It can be argued that leadership style or the objective of the leader in a profit sector will be different from that of the non-profit sector. Notably, the quality of the leader and their outlook differs when initiating delegations and considerations for different sector (Manning and Curtis, 2003). The leadership style is effective only when the leaders have the requisite skill and have a fair knowledge about the objective of the organization. In the non-profit sector, leadership largely depends on the values, ethics and with the motive to enrich the society. The leadership goals vary in non-profit sector from profit sector as the leaders in the non-profit sector are generally concerned with the welfare of the society while in the case of profit sector, leaders are more inclined towards profit maximization (Salamon et al., 2000). The study will analyze the significance of leadership in a nonprofit sector. Furthermore, the paper will entail leadership role, their attitude and the effectiveness of leaders in the nonprofit sector. Demand for Leaders in Nonprofit Sector As stated above, leadership is a critical success factor in all the sectors and the demand for strong leadership talent is ever increasing to meet the challenges of the society. As per the nonprofit trend survey of 2013, nearly 69% of demand lacks to overcome the requirement of senior nonprofit leaders. There has been constant demand for the nonprofit leaders in order to provide proper staffing for the welfare of the society and to increase the source of funding. Since, the nonprofit sector have no profit generation capability and its available resources are limited thus, it is vital that leaders in this sector are more competent towards making the best possible use of the available resources with minimum wastage. Concurrently, the demand for effective resource planning, and motivating these individual engaged in the sector is extremely essential. Correspondingly, it can be argued that there is greater demand for leaders who are eligible and competent to fulfill the various requirements of the nonprofit sector. Moreover, fundraising is essential element for the successful performance of nonprofit sector. However, fundraising requires efficient planning and their execution in the most effective manner. Hence, it requires competent leaders who have planning as well as problem solving skills. Strategizing new initiates for the welfare of the society, educating children, assisting in eradication of poverty are general motive of nonprofit sector. Consequently, meeting those goals and objectives seeks for leaders who are capable of guiding and directing the activities of the non-profit organization. Staff retention, providing a flexible work environment, hiring staff also forms key elements for the success of non-profit sector. It can be argued without efficient and competent leaders, it is quite difficult for attaining requisite resource for the successful operation of the nonprofit sector. The nonprofit sector requires allocation of proper time, resources and seeks for diverse staffing. Thus, management of these tasks creates demand for competent and skilled leaders. It is therefore, essential that the leader needs to have a proper succession planning which would benefit the activities of the nonprofit sector (The improve Group, 2013). In generalized words, it can be stated that without leaders in the nonprofit sector, it quite impossible to sustain the works of the organization may be act as a daunting factor for other in the organization. The greatest issue faced by the nonprofit is staffing in order to replace the old experience individuals. The survey exhibits a declined trend in replacing experienced leaders. The reason for the shortfall of new leaders to replace retiring leaders in the nonprofit sector depends on various factors. The problem of leaders succession in nonprofit can be attributed to factors such as issues of low compensations. At the same time, it has been ascertained that young leaders are often felt undervalued and invisible by older leaders in the nonprofit sector which has significantly created the emergence of leaders’ succession problem in the nonprofit sector (Tierney, 2006; Rodriguez & Herzog, n.d.). Role of Leaders in Commercial and Non Profit Sector The goals and objectives of the leaders in the commercial sectors significantly differ from the nonprofit sector. The major role of the leader in a commercial sector is to maximize the resources of the company and increase the level of the profit. However, the leaders in the nonprofit sector are largely focus on the welfare of the society by providing assistance to the community. The role of the commercial leader is to motivate the employees, allocate the resources in order to achieve the broad business goals of the organization. While on the other hand motivational factors, the values and the ethicality towards the society are generally embedded with the nonprofit leaders. It is worth mentioning that the mission of the company is given more importance by the leader in commercial sector and their ultimate goals are to provide maximum return to the shareholders of the company. On the contrary, there are no shareholders in the nonprofit organization instead there are trustees who provide funds for the operation of the nonprofit organization. Correspondingly, the leaders in the nonprofit sector are required to ensure and direct the funds obtained from the trustees and other fundraising activities towards the best interest of the community (Epstein & McFarlan, 2011). Furthermore, the commercial leaders were more profit driven and believe in optimum utilization of resources directed towards profit maximization (Non Profit Leadership Alliance, 2011). Skills and Traits of an Effective Nonprofit Leader The success and effectiveness of a nonprofit organization depends on the leadership, the knowledge, skill and abilities to manage. The skills include attracting the right stakeholder, hiring the right employees and proper governance. An efficient leader must be a strategic thinker; this would help in developing plan and proper utilization of available resource. In this regard, relation building is an important skill required for leaders in the nonprofit sector as this would help to gain support from the government and other bodies in raising fund. Moreover, the welfare of the society also depends on the relation building attitude of the leader with the staff and the people of the society (Crawford, 2010). Collaborative decision making ability, giving importance to the ideas of each member is also a significant aspect of the nonprofit leader. The leader of a nonprofit sector needs to be ethical, integrated and trust worthy in order to sustain the growth of the sector. The leader should be an effective communicator in order to influence the people and motivate the employees to work for the betterment of the society (Dewey & Kaye, n.d.). The leader should have the ability to make the people work together for the common purpose. The leader must be able to negotiate effectively in order to raise fund for successful execution of its broad objectives. The leader should have the feeling of helping the society and should not be profit oriented. It is further essential for leaders in the nonprofit sector to respect and value the emotions of society and the staff so that cordial environment is maintained. Nonprofit leaders are also required to have the skills of efficient organizers and managers in order to grow and thrive. Team building is an important aspect for the nonprofit leaders because the development of the sector depends a lot on the assistance by the volunteer. The leaders in the nonprofit sectors are also required to have problem solving skills that would facilitate the organization to effectively tackle and overcome chaotic situation (Dewey & Kaye, n.d.). Demographic Variables The leaders of the nonprofit organization significantly differ from the profit organization on the basis of demographic variables as well. The leaders of the nonprofit organization are mainly of middle or old age and focus more on the welfare of the society. It has been ascertained that salaries of leaders in the nonprofit organization is relatively less than the business leaders (The improve Group, 2013). It has been ascertained from the analysis of demographic variables of nonprofit sector that large number off leaders in this sector are at the verge of retiring and there is a greater requirement for identifying and developing young leaders in the nonprofit sector. Furthermore, leadership crisis situation is perceived to prevail in the later years to come within this sector. On the other hand there has been no such estimations forecasted for business leadership (The Annie E. Casey Foundation, 2007). It can be ascertained that diversity amid the leaders in non-profit sector is relatively less as compared to business leaders. Accordingly, it has been ascertained that leaders in the non-profit sector reflect less on the diversity in the communities. Correspondingly, it has been observed that race and gender are still quite hard to address in the non-profit sector. It has further been identified that age factor do not act as the major determinant element although it has been ascertained that older leaders were more defensive than their younger counterparts. Moreover, as oppose to business leaders, it has been ascertained that there has been conflicting situations amid younger leaders and older leaders in the non-profit sector (The Annie E. Casey Foundation, 2005). Skills of Nonprofit Leaders for Future Change During the transition process robust leadership is an important aspect for sustaining and building existing social change organization. It is essential for older leaders to play proactive role in order to motivate next generation leaders. In order to achieve this purpose, older leaders should engage in nurturing younger leaders from the contemporary perspectives concerning with both within and outside the organization. The leaders in the nonprofit sector are also required to frame strategies supporting leadership diversity who are able to invent and implement ideas necessary responding to critical problems (Hailey, 2006; The Lee Institute, 2013). It is equally important for leaders in the non-profit sector to ensure adequate financial support to next generation leaders. It is also vital for leaders in the nonprofit sector to identify ideal approaches that would empower employees and value ‘participatory democracy. It is worth mentioning that clear approach can substantially aid the nonprofit organization retain younger staff members and create new decision making model (The Annie E. Casey Foundation, 2005). Conclusion From the above analysis, it can be firmly stated that leadership is an essential element in all the sectors. The leaders in any organization have significant influence on the performance of the organization as well as on its objectives. Correspondingly, the need for leaders is also ascertained to be extremely vital in the non-profit sector due to several reasons. More specifically, the non-profit sector is concerned with the welfare of the society and has limited resources. Thus, it requires efficient utilization of the available resource which seeks for competent leaders. The role of leaders in the non-profit sector can be identified to be diverse and more complex than the role of leaders in the commercial sector. Leaders in the non-profit sector are required to possess certain personality traits such as problem solving skills, planning and organizing skills, team management skills and relationship building skills among other for successful execution of various function required to meet the objectives of the non-profit organization. Furthermore, it has been identified that there are relatively less diversity concerning with leaders in the non-profit sector as compared to business leaders. To sum up, it can be asserted that leaders in the non-profit sector are required to display proactive role in order to encourage young leaders. It is equally important to develop approach that would provide financial support to young leaders as well as to implement innovative ideas that would radically promote the goals and objectives of the non-profit organization. References Crawford, J. (2010). Profiling the non-profit leader of tomorrow. Retrieved from: http://iveybusinessjournal.com/topics/leadership/profiling-the-non-profit-leader-of-tomorrow#.UoXrhHBT5e9 Dewey & Kaye. (n.d). Nonprofit leadership development: a model for identifying and growing leaders within the non-profit sector. Summary, 1-29. Epstein, M.J., &McFarlan, F.W. (2011). Non-profit vs. for-profit boards. Cover Story, 28-35. Hailey, J. (2006). NGO Leadership Development. A Review of the Literature, 1-38. Manning, G. & Curtis, K. (2003). The art of leadership. New York: McGraw-Hill International. Non Profit Leadership Alliance. (2011). The skills the non-profit sector requires of its managers and leaders. A Research Report, 2-42. Rodriguez, A., & Herzog, N. (n.d.). Replacing passionate leaders: the current challenge for community development. Building The Organizations That Build Communities, 93-116. Salamon, L.M., Hems, L.C., & Chinnock, K. (2000). The non-profit sector: for what and for whom? The Johns Hopkins University Centre for Civil Society Studies, 1-39. The improve Group. (2013). Non-profit employment trends survey. Non Profit HR Solution, 1-32. Tierney, T.J. (2006). The non-profit sector’s leadership deficit. Executive Summary, 2-4. The Lee Institute. (2013). Charlotte non-profit sector 2013 priorities research project. Purpose, 1-26. The Annie E. Casey Foundation. (2005). Generation change and the leadership of nonprofit organization. Retrieved from http://www.aecf.org/upload/PublicationFiles/LD2928K643.pdf The Annie E. Casey Foundation. (2007). Beyond the nonprofit leadership crisis. Retrieved from http://www.aecf.org/~/media/Pubs/Other/N/NextShiftBeyondtheNonprofitLeadershipCrisis/Next%20Shift.pdf Read More