Management in Non-Profit Organizations

The formulation of strategy is often different depending upon the type of organization involved. Large businesses often use a planning department structured on formal lines. Specialized planning staff is needed to deal with all the factors which must be noted in making strategic decisions. In other large businesses, planning staff may work with line managers in strategic planning and not work in isolation in a formal planning team. Small businesses differ from large businesses. So, different methods of formulating strategy are used in small businesses. They are less formal or systematic than in larger organizations.

Organizations that do not try to make a profit differ greatly from each other, as they all have different reasons for existing. They also differ from profit making firms in the following ways:
•The influence of the 'customer' may not be strong;
•The service provided may not be easily measurable;
•There may be very strict rules and guidelines regarding the payment of rewards to employees;
•Resolution of conflict may be achieved mainly by the strength of character of the 'leader'.

There are other differences and they all affect the way the organization responds to the determination of strategy. The organization may have no strategies at all. It could be managed for short term budget cycles, rather than long term cycles. Alternatively, it may be managed for personal goals, rather than considering changes in its mission because of changing external circumstances. Examples of non-profit-making organizations include public schools the Red Cross, the Spastics Society and political parties.

There is no doubt that there is a trend towards a more professional approach in these organizations as more people from industry join them. This is highlighted in their more positive approach to marketing. They need to do this because of:
•increased competition from other organizations;
•Cutbacks in government or local funding.

Marketing these organizations is becoming more professional and could, for example, be aimed at;
•a person who would be the focus of attention, such as a political candidate;
•a place, such as a city or country. There are numerous promotions each year, e.g. fly drive holidays in the USA;
•An idea, such as child abuse or overeating.
No matter whether the organization is profit making or not, a marketing strategy is needed to reach customers effectively.
For More Detail:
How to Advertise For Your Non Profit Organization

The Accounting Of Non-Profit Making Organizations