Leadership in Non-Profit Organizations - Research Proposal Example

Leadership in Non Profit Organizations I. Introduction: There have been several writings regarding leadership and several concepts, theories and practices that have been documented in the past. The effectiveness and efficiency of any organization is based to a great extent on the leadership within the organization. Hence this topic is one of the most popular. This paper aims at dealing with a related topic, i.e. leadership in no profit organizations. The paper deals with concepts like the organizational charts and a comparison of flat organization chart versus broad organization charts has also been included. Other essential aspects like the theories of major authors like Deming, and Ishikawa have also been included. The paper also includes MBTI, and the possible usability in terms of the non profit organisations. II. Organizational Chart: The organizational structure of a company is an essential element for the success of the company. There are several different styles of organizational structures that are used in different companies. Puranam & Goetting explain, ‘The structure of an organization refers to the stable pattern of interactions between the individuals who compose it. The formal structure of an organization is explicitly mandated by those with authority; and “macro-structure” captures these patterns at high levels of aggregation- as in an organization chart’ (Puranam & Goetting, 2009). Here we discuss two common structures, i.e. flat organizational chart and broad organizational chart. a) Flat Organizational Chart: This type of organization structure is one where the all members of the organization stay close to and this type of organizational structure permits a more centralized control. In an article by Bill Gates, he explained the reasons for a flat organization as ‘Market leaders win by building an adaptive, innovation-friendly organization, establishing an inspiring culture and empowering employees. One key to successful business evolution and growth in today\'s rapidly changing economy driven by knowledge and innovation is to let go of centralized control. People who stay closer to customers know better the market needs and can respond faster to rapidly changing customer requirements. In flat organizations, decisions are made faster, entrepreneurial creativity of employees is released, and ideas are managed better’ (Gates, 2009). b) Broad Organizational Chart: This is an organizational structure where the organization follows a decentralized approach and the decision making is not completely based from one head. Here the decision making is decentralized and the heads of the departments are allowed to make their own decisions. The research conducted by Puranam & Goetting (2009) the authors have concluded that the following three features are most essential that need to be remembered: a) “No structure is perfect: every macro-structure emphasizes the integration of certain activities to the exclusion of others b) No structure is permanent: as external and internal conditions change, so will the appropriate structure c) The formal structure isn’t the whole story: the informal organization can play an important complementary role- either by supplementing the formal organization (i.e. enabling the same kind of actions that the formal organization does) or by compensating for it (i.e. by enabling distinct but also valuable actions not adequately encouraged in the formal organization)” (Puranam & Goetting, 2009). III. Managing By Mission: The Health Care sector has been faced with number of different issues. There has been an increasing uninsured and underinsured population and a continuous increase in capital needs along with high shortage of labor. A statement made by the HFMA Chairman, Joyce Zimowski a challenge was set out to go, ‘beyond the numbers. When we do that, the result is the business of caring’ (Rodriguez, 2005). In terms of the health care industry, it is essential to note that the industry can become caring only if a mission is set down and the management is based on the mission of the company. Having said, it has also been in the article Rodriguez brings out the story of a major physician Donabedian. Donabedian, a physician and scholar has been known for the concepts and ideas that he had developed over the years to improve the quality management in the health care sector. Rodriguez, bring out one of Donabedian’s main concerns, i.e ‘the trend toward treating health care as a business, in which the patient is called a "customer" and the medical treatment is the "product." He said, "I think that commercialization of care is a big mistake. Health care is a sacred mission. It is a moral enterprise and a scientific enterprise but not fundamentally a commercial one’ (Rodriguez, 2005). The above discussion brings out the important aspect that a caring organisation requires to have a well planned strategy however the organisation should remain as an organisation and not move on to become a money making machine. Also if the organisation wants to succeed in the markets, it is essential that it is customer centric and plans and executes all the business based on the customer needs and requirements. IV. Plan – Do – Check – Act Model of Planning: Kaoru Ishikawa used a ‘cause and effect diagram’ to find a solution to quality. He brought out a diagram which helped the user see all possible causes of a result and also the root of the imperfection in the process. He went further on to use Deming’s theory as a base and to expand on the same. He converted the four step process to a six step to help provide an improvement to quality. The diagram below highlights his changes to the Plan – Do – Check – Act model. Figure: Ishikawa’s Plan – Do – Check – Act Model (Ishikawa, 1985) The theory provided by Ishikawa has been like a breakthrough in the quality industry and it has made it simpler to make root cause analysis for companies and to assist the companies find the issue and bring out newer training and education processes to help improve the quality. The Plan – Do – Check - Act method can be very effectively used in the Addiction Service Delivery Systems. The addiction service delivery systems require every step to be planned out at each stage before implementing any idea. Here it is essential to include a thorough check on the goals and targets before engaging into education and training and also implementation of work. Also it is essential for the teams to have a constant check on the effects of the implementation and to take appropriate actions to better the processes. Ishikawa’s model is very beneficial in the Addiction Service Delivery Systems as each step requires extreme care and attention. Dr. Kaoru Ishikawa has been able to contribute to the subject to a great extent. The theories that are provided by him as an extension to the Plan – do – check – Act model is very useful as it takes into account aspects of business that had been missed out earlier. It helps for overall improvements of the business in a more well presented and well planned manner. V. Deming’s Theory of Quality: “Quality management is an organisation-wide approach to understanding precisely what customers need and consistently delivering accurate solutions within budget, on time and with the minimum loss to society” (CQI, 2009). Quality is one of the most essential elements of any business. Stakeholder satisfaction and the success of any business are completely based on the quality of the products and services provided by companies. As explained by Willa A. Foster, and as has been followed over the years by various companies across the world, it is clear that “Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction, and skilful execution; it presents the wise choice of many alternatives” (Willa A. Foster). ‘The Deming System of Profound Knowledge’ was a philosophy of W. Edward Deming. He suggested that the quality can be increased if the appropriate principles are adopted and this will also allow for reduction of costs, by reduction of the other factors like wastes, rework, litigations and also staff attrition. He also explains that the effects are seen on the customer loyalty which sees a cleat rise. The most essential element as explained by him was the need for continual improvements and the need for a combined effort (Deming, 1993). His philosophy however was based on two main factors: a) There is a clear increase in the quality and decrease in costs when efforts and focus is completely on quality. This he explained with the following formula: Quality = Results of work efforts / Total Costs. b) He also points, that is the prime focus is cost and cost cutting, then the quality clearly declined over time. Deming advocated four main steps needed by all managers and this was regarded as the ‘Profound Knowledge’ and it included the following (Deming W. E., 2000): a) Appreciation of a System / Theory of Optimisation: He explained that the main objective of an organisation is to ensure appreciation of the entire system and not just a single subsystem. He explains that the total system consists of all stakeholders like, employees, customers, suppliers, shareholders, community and even the environment. b) Theory of Variation: Deming has highlighted one of the major reasons for the instability in systems is due to various variations that are present throughout the systems. He highlights the need to be able to recognise these variations and bring about a little stability to the systems. c) Theory of Knowledge: The need for knowledge is as important and essential as the need for experience. Deming has highlighted this need and explains that theories provide a cause – and – effect relationship within the organisations. d) Knowledge of Psychology: The need to be able to manage people is one of the most essential aspects and requires a high knowledge of psychology. It is essential to be able to note the need for extrinsic and intrinsic factors and factors that help motivate the employees as well. Deming’s Fourteen Principles include the following (Cohen, 2009): “Create constancy of purpose towards improvement Adopt the new philosophy Cease dependence on inspection Move towards a single supplier for any one item Improve constantly and forever Institute training on the job Institute leadership Drive out fear Break down barriers between departments Eliminate slogans Eliminate management by objectives Remove barriers to pride of workmanship Institute education and self-improvement, and The transformation is everyone's job” (Cohen, 2009). Considering Deming’s theories and philosophy, it is seen that Deming has taken into account all the factors of the traditional management process while dealing with the quality management of a company. However, he has not taken into account the need of the company to keep in line with the budgets and the costs that are involved. Also it is true that quality will only allow the companies to grow further but the excessive costs on training the employees can lead the company to be faced with lesser productive hours as well as amounts that could otherwise be spent on processes and the raw materials. VI. Myers Briggs Type Indicators (MBTI): The MBTI is a self reporting questionnaire that has been designed to put into action the theory of psychological types. The main aim of this indicator has been to identify the differences between normal individuals and to assist them use these differenced in a more positive manner. This also allows people to identify the unique gifts and to recognize what they can do. It is a method that can be used to enhance the self – understanding, motivation, strengths and also the areas of possible growth (MBTI, 2006). a) Effectiveness of MBTI at Work Place: The MBTI can be very put to a lot of effective use in the nonprofit organizations. Using this to know the type of a coworker allows individuals to work in a more cooperative and effective manner. The main benefits of utilizing this to understand the type of a boss, is that it allows the employee to work in accordance with the boss and understand his temperament. This allows higher and better team work among the team and a successful team (MBTI, 2006). b) Creative uses of MBTI for Nonprofit Organizations: MBTI can be used in numerous effective and creative ways in nonprofit organizations. Considering the managed care organization, the MBTI can be used to test the psychology of the people being treated and this can assist them to be treated in a more effective and efficient manner. Also, the MBTI can be used on every employee to ensure that all the individuals at the organization have similar goals and objectives for the job (MBTI, 2006). VII. Money Matters of Nonprofit Organizations: a) Revenues of Nonprofit Organizations: The nonprofit organizations do not have the benefit of huge sums of free money available for use. The organization need to use several different methods to raise as much funds as possible as this can be utilized very effectively for the working of the organization. A few of the essential aspects that need to be remembered are: "fundraising is not raising funds, it's [sic] raising friends." Nonprofit organizations raise funds via large corporations; solicit donations, establishing a partnership with the local corporations, government assistance, donations and grants, and also special events. b) Expenses of Nonprofit Organization: The expenses of the nonprofit organizations are similar to that incurred by normal organizations and businesses. The only difference being that nonprofit organizations do not calculate profits and they try to increase the income to the maximum possible to use the funds to improve their services. Hence it is essential to understand that a nonprofit organization is faced with the same level of expenses as any other organization however the profits and savings are not a concern. The mission and vision are the influential factors that affect how the money that comes into the account is spent. VIII. Course Information: a) Best Features of the course: The best features of this course is that it allows the students to get a wide range of ideas and a scope to research to a great extent. The course is well structured and assists the students to develop a flair for topics and to gain a better insight into the topic. b) Least liked features of the course: The course has a few drawbacks as well. Firstly there is a lot of importance given to the text books rather than practical experience. There is a high need for a practical exposure here in this course as the interactions with others in the field will allow the students to get first hand information about the actual events in the real world scenarios. References Cohen, P. (2009). Deming's 14 Points. Retrieved October 12, 2009, from HCI: http://www.hci.com.au/hcisite2/articles/deming.htm Deming, W. E. (1993). The New Economics. Cambridge: MA: MIT Center for Advanced Engineering Study. Deming, W. E. (2000). The New Economics for Industry, Government, Education, 2nd edition. MIT Press. Gates, B. (2009). Flat Organizational Structure: Empowering People and Making Faster Decisions. Retrieved October 23, 2009, from 100ventures: http://www.1000ventures.com/business_guide/organization_flat.html Ishikawa. (1985). What is Total Quality Control? Englewood Cliffs, NJ: Prentice-Hall Inc. MBTI. (2006, March 9). The Myers-Briggs Type Indicator personality inventory:. Retrieved October 22, 2009, from MBTI Today: http://www.mbtitoday.org/# Puranam, P., & Goetting, M. (2009). NOTE ON ANALYSING ORGANIZATIONAL MACROSTRUCTURES. Retrieved October 24, 2009, from London Business School: http://faculty.london.edu/ppuranam/assets/documents/NOTE_ON_ANALYSING_ORGANIZATIONAL_MACROSTRUCTURES.pdf Rodriguez, R. (2005, June). The business of caring: "no margin, no mission". Retrieved Ocotber 25, 2009, from BNet: http://findarticles.com/p/articles/mi_m3257/is_6_59/ai_n13822498/ Read More