Question:
Discuss about the Strategic Management in Non-Profit Organisations.
The previous decades have witnessed an exemplary growth in the number of international Non- Governmental Organizations (NGOs), which have also grown in terms of size and reach. NGOs have been a success in most of the developing countries. These organizations have been highly dependent upon voluntary human and financial resources and have aided in the development of the nations by utilizing millions for the welfare of the community. However, the increase in the size and functions of these organizations has increased the complexities, which demand a proper systematic management. This has given rise to the need of strategic management in NGOs in order to manage the finance and the stakeholders associated with the organizations. Developing strategies for the purpose of positioning the NGOs have has become a complicated task and have threatened the growth and survival of these organizations (Brown, 2014).
In order to enhance the knowledge of the important trends in the literature and to find out the gaps in the literature, this report shall offer a systematic literature review on strategic management in NGOs. The following sections shall include the objectives, research questions, and major findings of literature review, key themes and the proposal of a future research agenda.
The major focus of the literature review is Non- Governmental Organizations that help vulnerable individuals by providing them with human and financial services, which are mainly managed by volunteers. Limitation of space has forced the exclusion of religious organizations, professional organizations, intergovernmental organizations, community- based organizations and treaty based international organizations. Additionally, the researcher has excluded environmental NGOs, governance NGOs, human rights NGOs and peace NGOs.
The research has emphasized upon articles related to strategic management in non- governmental organizations and the issues involved in them. The articles have been selected from the year 2013 till date using Google Scholar. The literature search resulted in more than 100 articles on strategic management in non- governmental organizations out of which 20 articles have been chosen for the research purpose. 95% of the articles have mentioned the importance and need of strategic management in NGOs whereas; only 5% of the articles have criticized the need of strategic management in NGOs. The following are a few important aspects on which the research has been based:
The major objective of the systematic literature review is to synthesize the information available regarding the issues and importance of strategic management in Non- governmental organizations. The report emphasizes upon the reasons behind the rapid growth of Non- governmental organizations and the rising need of strategic management for the proper management of the organizational activities.
The systematic literature review is conducted in order to find an answer to the following questions:
According to Worth (2013), strategic management refers to the development and implementation of the objectives and goals and the steps taken by the top management of an organization on behalf of the owners while considering the available resources and the internal and external environments. Strategic management provides a proper direction to an organization in accordance with the organizational objectives. The organizational managers are often involved in developing models that shall assist in the strategic decision making. Strategic planning often involves environmental analysis, scenario planning, measuring and controlling implementation and final evaluation.
Galaskiewicz (2016) stated that there have been several changes in the working of NGOs in the past few years, which give rise to the importance of strategic management in Non- governmental organizations. The changes in the international politics, new technologies, industrial development and globalization, scarcity of natural resources, changes in the climate and the social and cultural changes have been the most important factors that have given rise to the importance of strategic management in Non- governmental organizations. The third sector comprises of non government and not- for- profit organizations. The NGOs face several issues in the form of lack of funds, lack of support from the donors, inadequate corporate support, lack of professionalism in the management of NGOs and long term sustainability. Strategic management provides solution to all the issues faced by the NGOs. In order to scale up the operations of NGOs, it is necessary to implement strategic management framework within the organizations.
The literature mainly emphasizes upon the relationship of the Non- governmental organizations with the donors, who provide funds to the Non- governmental organizations. Several researchers have argued that there has always been an unequal relationship between the donors and the Non- governmental organizations. According to Renz (2016), non- governmental organizations and donors are interdependent on each other. The NGOs require financial capital while the donors are required to be recognized as effective in the distribution of resources. This is possible only when they ensure that they favor successful organizations. The Non- governmental organizations have faced several issues in the past in terms of international politics however; the NGOs have established their relationships with the international global institutions such as World Trade Organization and the World Bank. The World Trade Organization has motivated the NGOs to take active participation in its policymaking process and in the process of settling disputes with the prime motive of protecting the under developed and developing countries. On the contrary, according to Bryce (2017), the power of the NGOs have been limited while influencing World Trade Organization. However, in the past few years, the influencing power of the NGOs has grown and they have greater impacts on the governments and the international institutions.
On the other hand, according to Butler & Wilson (2015), despite proliferation, the Non- governmental organizations have limited powers to impact the economic policies of World Bank. However later on, the officials at World Bank had encouraged the government borrowers by accepting Non- governmental organizations as their development partners. The literature mentions the role played by the donors in the growth and development of NGOs.
According to Hill, Jones & Schilling (2014), the donors provide the NGOs with the basic finance required to survive. Since the NGOs are not involved in any profit- making business, therefore, they are completely dependent upon donors and volunteers. The poverty of the under- developed and developing countries, along with the frustrations of the citizens with the governments led to the growth of NGOs. The NGOs have been involved in several activities such as safeguarding the environment, society and human rights. They play an important role in the development and improvement of the societies and the communities. All these factors led to the expansion and growth of the Non- governmental organizations.
According to Felício, Gonçalves & da Conceição Gonçalves (2013), with the rapid growth and development of the Non- governmental organizations across the globe, the NGOs have been involved in large- scale activities due to which their relationships with the governments have become an important aspect. The NGOs often have to deal with the political pressure in some countries with authoritarian rule. The NGOs often challenge the policies of the Governments for the welfare of the society especially the poor sections of the society in order to safeguard their rights. The NGOs usually emphasize upon human rights, equality and environmental issues.
On the contrary, according to Maier, Meyer & Steinbereithner (2016), the NGOs have been successful in establishing collaborative relationships with the governments in several nations. West (2014) mentioned that the NGOs face immense international pressure in the Middle East for political reform. The Non- governmental organizations have adapted different types of strategies while dealing with the governments of different countries. The major strategies applied by the NGOs involve cooptation, complimentary, cooperation, and confrontation. The NGOs can influence the governments in a better manner by becoming better coordinated and representative. Berman (2015) mentioned the ways in which NGOs can establish sound partnerships with the governments and simultaneously ensure their core values.
The literature mentions the issues faced by the Non- governmental organizations due to the government control and restrictions. The government imposes several restrictions over the activities of the NGOs in order to maintain their power and position. However, these restrictions can be reduced or eradicated by establishing partnerships between the Non- governmental organizations and the governments.
According to Akingbola (2013), there has been limited research conducted on NGO coordination however; appropriate emphasis has been laid upon the coordination of the activities and operations. The need for NGO coordination has increased especially in cases of international relief operations. NGO coordination is extremely useful in times of emergencies. The help and assistance of the NGOs during the time of emergencies is very useful. However, there are several coordination issues among the NGOs and also between the NGOs and the governments, which are witnessed during times of emergencies.
On the other hand, Almog-Bar & Schmid (2014) stated that strategic management is essential for enhancing the NGO coordination. Proper communication and integration are the key elements of NGO coordination. The NGOs are required to scrutinize their effectiveness at regular intervals. It is necessary to emphasize upon acquiring reliable staff with specialized knowledge. The human resources in NGOs are the most important assets who are always ready to assist.
The growing power of the Non- governmental organizations often challenge the practices of political forces that comprises of public criticism, operational controls, questioning the legitimacy of the Non- governmental organizations and questions on the accountability of the Non- governmental organizations. Malatesta & Smith (2014) has mentioned several techniques for improving the accountability of the Non- governmental organizations. The several shortcomings in terms of accountability of NGOs involve providing greater priority to the donors and lesser priority to the beneficiaries, emphasizing more upon control than collaboration, unrealistic goals and falling prey to huge costs.
According to Wheelen & Hunger (2017), legitimacy of of Non- governmental organizations is dependent upon their effectiveness in developing strategies for the development of a nation or state. Therefore, international NGOs must be accountable to the communities in the state or nation where they implement their strategies and programs. If the Non- governmental organizations aim at achieving their goals and mission, they need to be more accountable for their actions of bringing reforms.
On the other hand, Peppers & Rogers (2016) mentioned that the need for NGO accountability has been observed in all directions with the motive of improving the operations and activities of the NGOs. The comprehensive approaches to promote the accountability of NGOs have not yet emerged. However, the NGO accountability is required to empower them to deal with political attacks, enhance their performance, satisfy the stakeholders and provide benchmarks that ensure achievement of the objectives and goals.
Conclusion
The increase in the complexities of the external environment of the Non- governmental organizations has increased the need of strategic management within the organizations. The NGOs have been involved in several activities such as safeguarding the environment, society and human rights. They play an important role in the development and improvement of the societies and the communities. The changes in the international politics, new technologies, industrial development and globalization, scarcity of natural resources, changes in the climate and the social and cultural changes have been the most important factors that have given rise to the importance of strategic management in Non- governmental organizations. The NGO managers are in need of better analytical tools for identifying and understanding the complexities. The strategic management tools help in managing the relationship of the NGOs with the donors and governments along with enhancing the accountability and coordination. Implementation of strategic management tools helps the NGOs to improve their overall performance. However, there is still lack of sufficient research and literature on the implementation of strategic management tools for improving the performance of the Non- governmental organizations.
References:
Akingbola, K. (2013). A model of strategic nonprofit human resource management. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 24(1), 214-240.
Almog-Bar, M., & Schmid, H. (2014). Advocacy activities of nonprofit human service organizations: A critical review. Nonprofit and Voluntary Sector Quarterly, 43(1), 11-35.
Berman, E. (2015). Performance and productivity in public and nonprofit organizations. Routledge.
Brown, W. A. (2014). Strategic management in nonprofit organizations. Jones & Bartlett Publishers.
Bryce, H. J. (2017). Financial and strategic management for nonprofit organizations. Walter de Gruyter GmbH & Co KG.
Butler, R., & Wilson, D. C. (2015). Managing voluntary and non-profit organizations: Strategy and structure. Routledge.
Felício, J. A., Gonçalves, H. M., & da Conceição Gonçalves, V. (2013). Social value and organizational performance in non-profit social organizations: Social entrepreneurship, leadership, and socioeconomic context effects. Journal of Business Research, 66(10), 2139-2146.
Galaskiewicz, J. (2016). Social organization of an urban grants economy: A study of business philanthropy and nonprofit organizations. Elsevier.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Maier, F., Meyer, M., & Steinbereithner, M. (2016). Nonprofit organizations becoming business-like: A systematic review. Nonprofit and Voluntary Sector Quarterly, 45(1), 64-86.
Malatesta, D., & Smith, C. R. (2014). Lessons from resource dependence theory for contemporary public and nonprofit management. Public Administration Review, 74(1), 14-25.
Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A Strategic Framework. John Wiley & Sons.
Renz, D. O. (2016). The Jossey-Bass handbook of nonprofit leadership and management. John Wiley & Sons.
West, J., Salter, A., Vanhaverbeke, W., & Chesbrough, H. (2014). Open innovation: The next decade.
Wheelen, T. L., & Hunger, J. D. (2017). Strategic management and business policy. pearson.
Worth, M. J. (2013). Nonprofit management: Principles and practice. Sage.
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