Nonprofit mission statement focus and financial performance

Mission statements have been adopted nearly universally in nonprofit organizations. Their ubiquity is based on a presumption that a well‐designed mission statement is linked to better organizational performance because it provides a framework for decision making, influence over staff and volunteer motivation, and a mechanism for signaling organizational legitimacy to stakeholders. Despite collective confidence in mission statement utility, the relationship between mission statements and performance has received minimal attention. In this exploratory study we measured several attributes of mission statements in women's rights nonprofit organizations, with particular attention to the degree to which the statement focuses on organizational purpose and the relationship between focus and several measures of organization financial performance. The findings indicated that mission statements with a more focused geographic scope were associated with lower overhead ratios. In contrast, mission statements that identified more target client groups were associated with larger one‐year increases in contribution. Despite the statistical significance, the relationships were weak, calling into question common assumptions about the importance of the mission statement to a nonprofit organization.     

On the same page: The value of paid and volunteer leaders sharing mental models in churches

We examine the idea that mental models shared among paid and volunteer leaders are associated with improved financial performance in nonprofit organizations. Our empirical analysis of thirty‐seven churches yields evidence that organizations are more effective if paid and volunteer leaders have a shared task mental model—that is, if they report similar conceptualizations of organizational goals and decision‐making processes. These findings suggest that the extent of leaders' agreement on organizational goals and the processes of how decisions are made matter for organizational performance. We argue that it is as important to ensure that everyone is on the same page with regard to goals and how decisions are made as it is to have the “right” goals or right decision processes in place. Implications for practice and future research on shared mental models are discussed.     

Terms of engagement: Facebook and Twitter use among nonprofit human service organizations

This study uses Lovejoy and Saxton's (2012) hierarchy of engagement to analyze how nonprofit human service organizations use Facebook and Twitter to engage stakeholders. Their framework has not been applied to this nonprofit subgroup, and most previous scholarship on this topic focuses on just one platform. We also contribute by drawing on organizational theory to better understand variation in the modes of engagement organizations emphasize. Based on our analysis, we add new subcategories to the hierarchy of engagement. In addition, we find that compared to other nonprofit subgroups examined in previous research, the organizations in our sample placed a greater emphasis on using social media messages to ask stakeholders to take action. We report only modest variations in how organizations were using Facebook and Twitter. Finally, according to our results, resource dependence and stewardship theories help explain the modes of engagement organizations prioritize.     

Family involvement in small,local nongovernmental organizations

The involvement of family members in nongovernmental organizations (NGOs) has been largely overlooked in the literature on the nonprofit and voluntary sector. This study draws on the family business literature to explore the main features of family involvement and the implications for organizational survival and effectiveness. It shows that the family is an important research variable. Exploring the NGO sector in India, the article demonstrates that family involvement can significantly influence the management of human and material resources, governance, and decision making. Although there are several advantages to family involvement, a large overlap of family and organization can threaten credibility and legitimacy. Family‐based NGOs must stress their value orientation to counter negative perceptions.     

Leadership succession and the performance of nonprofit organizations: A fuzzy‐set qualitative comparative analysis

Leadership succession is critical to the performance of nonprofit organizations. Existing research has mostly treated leadership succession as an instantaneous event, and it has examined the independent effects of certain factors on organizational performance. However, little research has focused on the combinations of causally relevant factors. This article integrated organizational life cycle, resource dependence, and institutional theories, as well as the organizational fit literature, to explain how contextual and strategic factors combine to affect postsuccession performance. A fuzzy‐set qualitative comparative analysis (fsQCA) was used to analyze 15 succession events in Chinese environmental nongovernmental organizations (NGOs). The study identified four pathways to good NGO performance after succession. It also highlighted that it is not succession per se but the succession context (i.e. founders' control, board governance, professionalization, and political environment) and the strategic orientations of the successor that affect postsuccession performance in nonprofit organizations.     

Wage Inequality and Performance in Nonprofit and For‐Profit Organizations

This article examines the effects of several forms of wage inequality on service quality and employee effort. We suggest that two popular theories, tournament and fair wage/equity, are not necessarily competing. Each theory accurately describes aspects of employee behavior, but because of sectoral differences in organizational objectives and employee attitudes, tournament theory's predictions are relatively stronger in the for‐profit sector, while fair wage/equity theory's predictions are relatively stronger in the nonprofit sector. Using an employer–employee matched data set of nursing homes linked to a federal regulatory database and a resident survey, we found that ownership moderates the relationship between wage inequality and service quality. Although wage inequality positively affects service quality in the for‐profit sector, the reverse is true among nonprofit organizations. We also found that overall wage inequality in the workplace has a more pronounced influence on employee discretionary effort than does the employee's place in the distribution of wages.     

Organizational ethics, decision making, undecidability

In this paper we develop a conceptualisation of organizational decision‐making as a practice that is, necessarily, ethical. The paper starts with a discussion of the notion of decision‐making as it relates to organizational rationality and the relationship between management and control. Drawing on Derrida's discussions of undecidability and responsibility, we suggest that as well as being able to consider organizational decision‐making as an instance of (albeit bounded) rationality or calculability, it can also be regarded as a process of choice amongst heterogenous possibilities. On that basis, we follow Derrida in arguing that for a decision to be considered an instance of responsible action it must be made with neither recourse to knowledge of its outcome nor to the application of pre‐ordained rules. Illustrating our argument with a discussion of Eichmann's ‘I was just following orders’ defence, we suggest that rules for ethical decision making, rather than ensuring ethical outcomes, can work to insulate organizations from moral responsibility. We conclude with a discussion of ethics and democracy in relation to responsible decision making in organizations.     

Where you stand depends on where you sit: Participation and reactions to change

Although a considerable body of research on strategic planning, organizational decision making, and organizational change has emphasized the importance of participation by key stakeholders for the successful management of organizational change, few empirical studies have produced in‐depth understanding of the differing perspectives of stakeholder groups according to their level of involvement in decisions about major change. This case study examines the differing perspectives and perceptions of stakeholders leading into and during the merger of two nonprofit arts organizations. It refines and enriches existing empirical research on the effects of participation on the implementation of change.     

Organizational Values and Their Relation to Organizational Performance Outcomes

The communication of organizational values and their relation to employee outcomes is evaluated between two departments within a Health Care Organization. Organizational values that are congruent with employees' values have been shown to increase employee satisfaction, commitment, and performance outcomes. This article discusses how values are defined and different ways that values can be communicated to acquire improved organizational outcomes. Past research on values within organizations is reviewed.

Questions from the Organizational Culture Survey and the Communication Satisfaction Questionnaire are combined to measure employee satisfaction, morale, and perceived involvement in decision making. The organization provided data on employee absenteeism, turnover, and performance ratings. An analysis of the results indicates employees in departments that have clearly defined and communicated organizational values perceive they are more involved in the organization and more participatory in decision making. Implications of the results for organizations are detailed.     

Why engage?

Foundations, consultants, and nonprofit managers have become interested in learning more about how to create effective strategies and interventions to strengthen nonprofit management and organizational capacity. In this article, we examine the extent to which organizational theory can explain the motivation to engage in different types of capacity‐building efforts. Using data gathered from focus groups and interviews with nonprofit executives, foundation executives, and capacity‐building professionals, we illustrate that while different organizational theories can explain the incentive to engage in capacity building, no single theory can truly capture the complexity of the decision‐making process. We show how a multitheoretical approach not only allows us to explain the evolution of capacity‐building efforts over time, but also helps us to identify and explain the problems that can be created by misinterpreting the incentive to engage in building individual and institutional capacity.     

Engaged at work? An employee engagement model in public relations

ABSTRACT

Engagement has emerged as an important concept in public relations scholarship. Yet a theoretically informed model with a clear and coherent explication of the construct is still lacking. By situating our study in the internal organizational context, we provided an updated conceptualization and operationalization of employee engagement, proposing a strategy-engagement-behavior three-step employee engagement model. Results from an employee survey (n = 568) supported our conceptual model, showing that organizational engagement strategies positively predicted employee engagement, which in turn accounted for employees’ positive and negative messaging behavior, as well as their contextual performance behavior. After controlling for significant demographic variables such as gender, age, organizational size, number of subordinates, and level of management position, we identified a complete mediation effect of employee engagement in our two-step structural equation modeling analysis.     

Family decision making in child welfare: challenges in developing a knowledge base for practice

Over the past two decades, engaging families in decision‐making has grown in popularity across child welfare systems internationally. The family group conference in particular has generated interest as a practice model that facilitates broader family engagement in care and protection. As the practice has flourished, research has been undertaken to strengthen the knowledge base and to support the introduction of family engagement strategies across jurisdictions. This paper examines the recent research relating to family engagement strategies in child welfare and explores the ways in which family involvement in decision‐making can be incorporated into emerging protective practices. Copyright © 2010 John Wiley & Sons, Ltd.     

Karriereerfolg als Ergebnis des Personalmanagements

Strategic human resource management has avoided to evaluate its efforts in relation to employees’ careers. Recent research has investigated a selection of individual human resource management (HRM) practices (e.?g., training and development, mentoring, career development, talent management, performance appraisal) in relation to objective and subjective career success, but failed to study HRM systems or bundles. This paper argues that HRM systems and career success can be connected via human capital theory because human capital is understood as an organizational resource and as an individual antecedent to careers. Based on extant research that relates individual HRM practices to objective or subjective career success, this paper reviews and discusses the relationship between bundles of HRM practices and the individual practices contained therein and career success. The final conclusion suggests that evaluations of HRM systems should take careers into account because organizations rely on employees’ human capital. Future research should focus more intensely on the role of HRM for the development of careers also across organizations.     

Ethics of care in action: Overview of holistic framework with application to employee engagement

At the heart of public relations is the act of creating relationships that facilitate dialog, collaboration, and ongoing trust. This paper aims to conceptualize a framework based on ethics of care (EoC) that harnesses these core underpinnings, which propel the public relations industry, to enhance employee engagement. The ethics of care applied to employee engagement (EoCAEE) framework combines the success found within the EoC phases, along with the landscapes presented in the Applied Model of Care Considerations (AMCC), to ensure ethical, holistic decision making. EoCAEE repositions employee engagement as an ethical practice for organizations to prioritize with actionable steps.     

The Subjectivity of Fairness: Managerial Discretion and Work–Life Balance

We use organizational justice theory to examine how perceptions of fairness affect the decision‐making process of line managers. In‐depth interviews were conducted with 35 Irish managers to explore how managers make organizational allocation decisions in cases where it is impractical to offer work–life balance accommodations to all employees. The findings suggest that firstly, managers construct the ‘life’ aspect of work–life balance within a heteronormative framework, where the emphasis is on caregiving and most usually parenting. Secondly, managers actively use their decision‐making powers around both formal and informal work–life balance supports to minimize injustice within their departments. By bringing together ideas about organizational justice and managerial decision‐making, we indicate how managers determine fairness through a decision‐making process narrowed by embedded gender role beliefs. Implications for future research and practice are discussed.     

Inclusion and commitment as key pathways between leadership and nonprofit performance

Given the projected growth of workforce diversity in the United States and the fact that heterogeneous workforces result in both positive (increased retention and performance) and negative (increased conflict and turnover) organizational outcomes, nonprofit leaders are faced with the challenge of effectively managing their workforces. Findings ways to ensure positive workplace outcomes, such as employee commitment (an emotional attachment to the organization) and performance, is especially critical for the overall functioning of nonprofit organizations. Using longitudinal multilevel path analyses, this study examined whether transformational leadership influenced work group performance through both creating a climate for inclusion and increasing employee affective commitment in a diverse nonprofit health care organization. Results indicate that transformational leaders help increase perceptions of inclusion, which improves employee commitment to the organization, and ultimately enhances perceived work group performance. This suggests inclusion and affective commitment as key factors for how leaders can increase nonprofit performance.     

CEO credibility,perceived organizational reputation,and employee engagement

The current study explores how corporate leadership influences the effectiveness of internal public relations by linking CEO credibility, employee evaluation of the organizational reputation, and employee engagement. An online survey of 157 employees from a Fortune 500 company shows that CEO credibility is positively associated with perceived organizational reputation and employee engagement. Perceived organizational reputation significantly and positively affects employee engagement. Employee perception of organizational reputation fully mediates CEO credibility impact on employee engagement.     

Nonprofit organizations in between the nonprofit and market spheres: Shifting goals,governance and management?

In spite of the belief instilled by the New Public Management reforms that nonprofit organizations (NPOs) can benefit from more management, more measurement and more market practices, systematic knowledge on the organizational effects of NPOs incorporating business practices in their day‐to‐day functioning remains absent to date. This research note addresses this limitation by reviewing 49 research articles. The focus lies on the redefinition of nonprofits' mission and income streams, changing governance arrangements and shifting management practices. We find that, despite numerous detrimental effects cited in the literature, (a) generating commercial income can contribute to the financial stability of NPOs, and (b) hybridization towards the market domain can strengthen the organizational legitimacy of NPOs, suggesting that imitating for‐profit enterprises might contribute to nonprofit functioning in perception, rather than in practice.     

Past work experience and organizational assimilation in nonprofit organizations

This study compares seven dimensions of organizational assimilation (OA)—familiarity with coworkers, familiarity with supervisors, recognition, acculturation, involvement, job competency, and role negotiation—into nonprofit, for‐profit, and governmental organizations incorporating the role of similarity of past work experience (magnitude of transition [MoT]). An online survey of 294 employee newcomers (tenures of 3 months or less) revealed differences in OA between those entering nonprofits and those entering for‐profit, and governmental organizations. Compared to newcomers entering for‐profit and governmental organizations, nonprofit newcomers reported higher levels of job competency, involvement, acculturation, and role negotiation. Interactions between organization type and MoT from past work to current roles were examined for effects on OA. When MoT was low, nonprofit newcomers were higher on acculturation and involvement than for‐profit newcomers; governmental newcomers with high MoT were significantly higher on role negotiation than for‐profit newcomers. Theoretical and practical implications for nonprofit organizational management, trainers, and nonprofit newcomers are discussed.     

From Consultation to Participation

Empirical research in the literature on accountability of nonprofit organizations (NPOs) toward their beneficiaries is scarce, and the available studies have a number of limitations. Our study attempts to overcome some of them and focuses on one specific component of accountability toward beneficiaries: beneficiary impact on organizational decision making and output. Data were collected by surveying general managers of 790 Belgian NPOs in fourteen industries. Results show that most NPOs implement some mechanisms to involve beneficiaries and their representatives in organizational policy making, mechanisms that vary between and within industries. Despite the existence of such mechanisms, their perceived association with impact on policy making and associated potential organizational effects is weak, though positive.