Principles of Non-profit Leadership - Research Paper Example

Principles of Non-profit Leadership Introduction Different societies may it be privileged or unprivileged have undergone through different complexities, both in developing and underdeveloped parts of the world. With governments’ resources having more constraints the importance of nonprofit organizations have breached to a large extent. Regardless of the services that are being provided by nonprofit organizations, they still contribute largely in sustaining society’s well-being, smooth functioning and development of a compassionate society (Hill, 90). However, for the purpose of delivering these results the first and foremost thing which is required by organizations is effective leadership of a nature that aspires to achieve these results in the best possible way (Principles and Practices for Nonprofit Management Excellence). Most of the nonprofit organizations believe that money is the only resource that can help an organization to achieve its desired objectives. Keeping this in view, many of the experts have argued that not only money but the leadership plays an important role. They argued that effective leadership is the only tool that helps an organization to achieve its intended objectives (A Guide for Board Members, Managers and Staff). The organization work towards achieving those goals and money only enables them to deliver results that are expected of them. In today’s era the two important resources for any organization are financial resources and human capital (Tierney). The set back or down turn in financial resources is impossible to avoid and difficult to overcome, but shortcomings in human capital can be very awkward for an organization and cannot be calibrated easily. Keeping in view above mentioned issues, the need for the nonprofit organizations is to have an effective leadership that goes all the way towards achieving intended and desired results. This paper will probe into the challenges that any nonprofit organization is expected to face while developing effective leadership (Hill, 135). It will further shed light on benefits derived by developing effective leadership along with advantages and disadvantages. It will provide an insight of the principles of nonprofit leadership. Thus, this paper is expected to make a valuable contribution in the existing stock of knowledge. Challenges in developing effective leadership It has become quite difficult for nonprofit organizations to manage in today’s tough economy. According to (Hill, 12) Following are few challenges that nonprofit organizations are facing while in the phase of developing effective leadership. With increased globalization and work force diversity managers in nonprofit organizations need to develop such skills and abilities that can enable them to cater the needs and solve the problems of people belonging from different backgrounds. With huge demographic shifts the number of old age people is increasing day by day. So the nonprofit organizations are facing problems in developing leaders that can serve them best (Tierney). In addition to this, managers in nonprofit organizations need to develop themselves in a way that can instigate change not only in them but in their organization too, and driving their organization towards adapting change and innovation. Principles of nonprofit Leadership The principles of nonprofit leadership are as follows (Principles and Practices for nonprofit management excellence): Planning for future Nonprofit organizations should realize that they aim at providing excellent social and public benefit to the societies and communities and therefore they should have written and clear plans that help them to achieve their organizational goals and objectives (Thomson and Ritvo, 115). The leaders and particularly the managers in nonprofit organizations that are involved in the planning process should set SMART objectives that can easily be attained within the prescribed time period as nonprofit organizations are meant to deliver excellence services to some specific people of the society (old generation/ orphans etc). A nonprofit organization should try their level best to link their objectives with their mission so that the employees that are striving towards achieving the set goals can easily follow the direction that is required to be followed for attaining success in accomplishment of goals and objectives (Thomson and Ritvo, 56). In addition to this, non-profit organizations should plan to seek partnerships with other donor and philanthropist organizations that help them to make use of society’s current and potential resources at its maximum potential for the welfare and well-being of unprivileged societies. The planning process should not overlook the importance of developing progress reports that should be reviewed by concerned authorities for comparing the actual results with the desired results (Hill, 85). Board of governance Board of directors of any organization may it be profitable or non-profitable should aspire to such policies and strategies that lead towards successful and objective development of mission statement. The purpose of developing mission statement for any nonprofit organization is to have a proper direction of all the activities that it has to render within the prescribed time period (A Guide for Board Members, Managers and Staff). In addition to this, the board of directors should set policies that aim at utilizing both financial and human capital resources at its optimum capacity for the welfare and well-being of communities and societies. Moreover they should direct the individuals regarding their public and social objectives and should evaluate effectiveness of their organization regarding upholding the public interest being served by the organization (Hill, 160). Human resources All type of nonprofit organizations, regardless of the region they operate from, should develop their human resource and work force in a way that aims at building the society for the benefit of the people and should be able to serve the diverse communities with a goal of sustaining excellence and betterment of their societies and communities (Principles and Practices for Nonprofit Management Excellence). They should provide their employees with all the facilities and should equip them with the desired skill set by giving them trainings. In addition to this, the top management of nonprofit organizations is responsible for creating a safe working environment that leads not only towards successful completion of the tasks for the betterment of society but also promotes mutual cooperation among employees (Tierney). Fundraising activity Fundraising is considered as an important activity being conducted by many nonprofit organizations. The policies governing the fundraising process require nonprofit organizations to clearly converse their goals and intentions to the contributors and other members that are participating voluntarily in philanthropic activities (Hill, 132). The leaders and particularly the top management should provide contributors and partner organizations with written and clear recording of all the funds. The leaders should communicate clearly the activities to which funds are being dedicated and strive together for a common purpose i.e. upholding of unprivileged societies (A Guide for Board Members, Managers and Staff). Ensure transparency and accountability As nonprofit organizations are involved in raising and collecting funds from donor organizations and general public so they are required to adhere to ethical standards and are required to ensure transparency and accountability in almost all of their activities being conducted at any scale (Tierney) The efficiency of the nonprofit organizations rely in the fact that how frequently they conduct social activities, how clearly they communicate all the necessary information about any funding schemes or how openly they communicate their mission, goals and objectives to general public and donor organizations. In addition to this, they are required to be very much consistent in devising their policies in a way that aim at the welfare of the society and should ensure the dissemination of all essential information to the stakeholders (Principles and Practices for Nonprofit Management Excellence). Involvement in public policy The nonprofit organizations and particularly the leaders are involved in directing the people for the welfare of the society. Keeping in view this, most of the nonprofit organizations should develop the policies by involving the donor organizations so that they can have clear idea of what organization intends to do in coming future and to what extent they are in need of the funds for proper accomplishment of their target and desired goals (Principles and Practices for Nonprofit Management Excellence). Conclusion Managers in nonprofit organizations stick to their old ways of doing and executing their tasks including handling of social issues. The need in the present era is to introduce policies that aim at bringing change and innovation in an effective way that works towards executing their day to day activities. Managers in nonprofit organizations must handle social issues in a way that provide maximum benefits to the disadvantaged part of the society. The intelligence of a competent leader lies in developing competitive strategies that aim at achieving these goals and objectives. Works cited “A Guide for Board Members, Managers and Staff”. Minnesota Council of Nonprofits. 2010. Web. 21st February 2012. Hill, Linda. Becoming A Manager: How New Managers Master the Challenges Of Leadership.USA: Harvard Business Press, 2003. Print. “Principles and Practices for Nonprofit Management Excellence”. Mississippi Center for Non Profits”. 2007. Web. 21st February 2012. Tierney, Thomson. The Nonprofit Sector’s Leadership Deficit. The Bridgespan Group. 2006. Web. 21st February 2012. Thomson, Holland and Ritvo, Roger. Nonprofit Organizations: Principles and Practices. Columbia University Press. 2008. Print. Read More