Sensegiving,Leadership, and Nonprofit Crises: How Nonprofit Leaders Make and Give Sense to Organizational Crisis

This study examined how 43 nonprofit leaders across 15 U.S. states make sense of organizational crises in nonprofit contexts, as well as what they think effective leadership is during crises. Findings revealed perceived nonprofit organizational crises emerging from disasters, disruption of mission delivery, internal stakeholder challenges, and unanticipated occurrences, while six major characteristics of effective crisis leadership emerged including being a team player, being strategic, being transparent with stakeholders, being quick to respond, being self-composed, and being prepared. Comparisons to previous empirical investigations of nonprofit leadership and crisis response yielded additional insights into effective crisis leader sensemaking in nonprofit contexts—most notably that nonprofit crisis leaders leverage sensegiving frameworks of instrumental knowledge, normalcy, and dynamic learning. Further analysis demonstrated these diagnostic and prognostic sensegiving activities to be more clearly observed than motivational sensegiving activities across crisis leaders in nonprofit contexts.     

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.     

The nonprofit leadership deficit: A case for more optimism

Recent headlines claim that a looming nonprofit leadership crisis will soon be precipitated by retiring baby boomers. Analysis of baby boom demographics, using national census data on the age distribution and other demographic characteristics of top leaders by sector, confirms the aging nonprofit workforce. However, the issue of whether the aging workforce portends a nonprofit leadership crisis, when analyzed within a theoretical framework of supply and demand in the market for nonprofit executives, reveals flaws in most commentaries about the leadership crisis. Workings of the labor market and nonprofit organizations themselves suggest trends that could be expected to affect labor supply and demand and mitigate a leadership deficit. Reasonable—and likely—market and organizational adjustments, including higher executive pay, increased labor force participation of older workers, skill acquisition of younger workers, possible consolidation of nonprofit organizations, board and volunteer skill sharing, and even venture philanthropy, can be expected to moderate the shock of baby boom retirements, much in the way that schools, job markets, and housing markets have accommodated the movement of this “bulging” generation through earlier decades of their lives.     

Casa de esperanza

Many nonprofit organizations struggle with the challenges of staying true to their mission in light of increasing reliance on public revenue streams. Casa de Esperanza, a mid‐size nonprofit in St. Paul, Minnesota, faces these tensions. Although it was founded to support Latinas who experience domestic violence, public funding streams mandated a different approach. This case explores the trade‐offs the organizational leaders must consider at a critical juncture in their development. Copyright © 2004 Jodi Sandfort.     

A Coalition Perspective on Nonprofit Governance Quality: Analyzing Dimensions of Influence in an Exploratory Comparative Case Analysis

We answer the call that governance research should focus more on processes outside the boundaries of boards, especially for nonprofit organizations. In particular, we suggest and elaborate concrete steps with respect to the advantages of a leadership coalition perspective to focus more on the behavioral and informal aspects of governance. Through a comparative case analysis of five nonprofit organizations, we explore contingencies between characteristics of nonprofit leadership coalitions and governance quality. We identify two dimensions to classify leadership coalitions: centralized versus diffused influence and specific versus holistic influence. These dimensions are subsequently related with observed governance quality. We frame our finding in the existing literature on group faultlines, which are socially constructed dividing lines within groups, and we discuss the importance of establishing a balanced coalition between a weak or nonexisting and a strong dominant coalition to ensure high governance quality. We also present propositions on how governance quality and its various sub-dimensions can be studied as a complex, nonlinear intermediate concept between coalitional aspects of leadership groups and nonprofit organizational performance. Finally, we discuss concrete avenues for further testing and verification of our theoretical interpretation.     

Exploring a model of servant leadership,empowerment, and commitment in nonprofit organizations

This study examined a model of servant leadership's relationship to organizational commitment through structural and psychological empowerment, focusing on leader–follower dyads in a nonprofit organization. Survey data was collected from 128 employees of a nonprofit organization in a northeastern U.S. city. After model re‐specification, a well‐fitting model emerged, indicating that structural empowerment mediates the relationship between servant leadership and organizational commitment. Moreover, the model suggests that structural empowerment's effect on organizational commitment is both direct and indirect—the latter occurring through the meaning dimension of psychological empowerment. This study provides initial support for structural empowerment being a mechanism through which servant leadership impacts organizational commitment in nonprofits. In addition, the role of meaningful work is highlighted as an antecedent to organizational commitment for nonprofit employees. Servant leaders are suggested to create structurally empowering working environments, which support employees' stronger commitment to the organization.     

Understanding the Compensation of Nonprofit Executive Directors: Examining the Influence of Performance and Organizational Characteristics

In this study we aimed to provide a better understanding of executive compensation in nonprofit organizations. We examined factors including organizational size, market, subsector, organizational type, staffing level, and organizational performance as potential influences driving variation across the nonprofit sector. The models utilize data on the population of nonprofit organizations required to file Form 990 returns with the Internal Revenue Service in order to broadly examine compensation. The results indicate associations between various measures of performance and compensation in nonprofit orga‐nizations and also suggest that different types of nonprofits may be sensitive to different measures of performance.     

Female leaders and board performance in member‐serving nonprofit organizations

Despite an active stream of “good governance” research, there is not yet much nonprofit scholarship examining how the gender composition of a board or its leadership relates to board performance. This article helps to fill this gap, focusing on the governance practices of US‐based nonprofits serving a domestic or international membership. A structural equation model finds that the presence of female leaders relates to the performance of nonprofit boards both directly and indirectly through these leaders' presumed influence on board characteristics and operation. This research advances the field by empirically testing a longstanding theory that board performance is both multidimensional and contingent on the market and labor environment, organizational capacity and other characteristics—in this case, gender dynamics. We find there are some positive relationships between female board leadership and clearly defined measures of board performance. These findings also suggest that a strategy to balance a board's gender may serve many nonprofits, but gender representation works in tandem with other board characteristics.     

Leadership Style in Relation to Organizational Change and Organizational Creativity: Perceptions from Nonprofit Organizational Members

As the environment within which organizations act continues to change and becomes increasingly competitive, maintaining an organizational climate that supports change and encourages creativity is a key objective for organizational leaders. This article examines the relationship between leadership style (transformational, transactional, laissez‐faire) and members' perceptions of the psychological climate for organizational change readiness and psychological climate for organizational creativity. Results indicate that transformational leaders have a direct positive relationship with psychological climate for organizational change readiness and organizational creativity, while laissez‐faire leaders have a negative relationship.     

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.     

Organizational innovativeness and its determinants in South Korean nonprofit human service organizations

This study compares the level of organizational innovativeness and its determinants in different types of nonprofit human service organizations. Based on theoretical conceptualizations of organizational innovation, it was hypothesized that community service organizations (CSOs) would be more innovative than residential service organizations (RSOs), and determinants of organizational innovation (such as organizations' characteristics, internal and external properties, and executive leadership) would influence innovativeness. Data from a survey of two types of human service organizations in South Korea (127 RSOs for children and 220 CSOs) revealed that the level of innovation in both types of organizations was not significantly different. The determinants of decentralization and formalization showed significant impacts on innovativeness in CSOs. Decentralization also had a significant positive effect on innovativeness in RSOs. However, executive leadership was a significant determinant of organizational innovativeness in CSOs only. Based on these results, administrative implications are suggested for the facilitation of organizational innovation in nonprofit human service organizations.     

Promoting social innovation amidst organizational complexity: Case study evidence from the German Red Cross

Social innovation is concerned with the creation and implementation of new solutions to social problems. Although research commonly frames social innovation as the domain of small, entrepreneurial organizations, an increasing number of large and well-established nonprofit organizations have started actively launching their own innovation initiatives. Using a case study of social innovation ventures within the German Red Cross (GRC), this study identifies organizational hurdles and viable management strategies targeting the promotion of social innovation within particularly complex organizations. Based on our results, we develop a conceptual framework highlighting that promoting social innovation in established organizations requires simultaneous attention to multiple dimensions of leadership and governance. Our study thereby offers a blueprint for management strategies that can guide nonprofit leaders in their quest to promote social innovation from within their organization.     

Common Agency in Nonprofit Advocacy Organizations

Most theories of nonprofit organizations and nonprofit leadership recognize the multitude of stakeholders—including board members, donors and volunteers, funders, the media, and policy makers—that organizational leaders must contend with in doing their work. For nonprofits engaged in advocacy, demands from stakeholders may be even more challenging to meet. Although stakeholder theory recognizes the effect of various groups on an organization, it does not explain how leaders manage the preferences of their often‐competing stakeholders while they make choices for the organization. This study develops a common agency framework, evaluating the roles of three groups crucial to nonprofit advocacy organizations: the organization's board of directors, elected officials, and donors/members. The common agency framework is then illustrated with interviews with leaders of nonprofit advocacy organizations in California. Findings suggest that the leaders of these groups have a significant amount of discretion in guiding their organizations’ activities and operations.     

Leaning Out: Exploring Organizational Advocacy Activities From an Open Systems Perspective

This article explores the effect of organizational culture on engagement with advocacy activities, both traditional and electronic. The Competing Values Framework offers a model for understanding how organizations’ culture influences behavior. Using a sample of nonprofit providers from across the country, the author hypothesized that organizations that use electronic advocacy tools are more involved with advocacy activities of all types. A paper and pencil survey was used to collect data on organizational culture, advocacy tools and techniques, perceived effectiveness of the advocacy tools, policy goals, organizational sustainability goals as well as barriers and facilitators of electronic advocacy. The study used path modeling to describe the connections between organizational culture and engagement in advocacy activities. The article examines the barriers and facilitators of electronic advocacy, the penetration of electronic advocacy use in this sample of agencies and the perceptions of effectiveness associated with using these strategies; lastly, the implications of these findings for managers and organizational leaders are discussed.     

The Attributes of Effective NGOs and the Leadership Values Associated with a Reputation for Organizational Effectiveness

Building on prior research characterizing organizational effectiveness as a social construction, this article identifies the perceived attributes of effective transnational nongovernmental organizations (NGOs) and the leadership values associated with higher reputations for organizational effectiveness. Results are based on an in‐depth, mixed‐method interview study of 152 NGO leaders located in the United States and representing all major sectors of organizational activity. Among the twenty‐nine attributes that leaders identified in peer organizations that they regarded as particularly effective, leaders stressed instantiation of sound principles or strategy, a grassroots approach, large organizational size and resources, being collaborative, singleness of focus, campaigning abilities, funding and fundraising prowess, global scope, and quality people. Furthermore, statistical analysis reveals that NGOs with leaders who value similarities with peer organizations, grassroots approaches, diversity of strategies, dedication, professionalism, and distributed organizational structures have significantly higher reputations for effectiveness.     

Organizational Change-Too Much,Too Soon?

ABSTRACT

Recent changes in government policies and practices, especially managed care, have led many nonprofit organizations to embrace collaboration as a competitive strategy. This article presents a case study of a large human service agency that has adopted a management service organization (MSO) model, a type of collaboration particularly suited to handling third-party contracts, at the urging of the founding CEO. A new governance model was also adopted. Using chronology as an analytical approach, the case examines key decisions made by professional and lay leaders during four distinct stages of organizational development. The actions taken by the board of directors to restore financial stability and protect the organization's reputation after learning from the CEO of the existence of a significant deficit demonstrate the need for strategic planning and better communication among all relevant parties involved in a collaboration.     

Revisiting Agency and Stewardship Theories

Using principal–agent theories, this study examined differences in the perceptions of nonprofit chief executive officers (CEOs) and board chairs on key governance aspects, including board performance, leadership, satisfaction with diversity, and board meetings. Using data from the CEOs and board chairs of 474 nonprofit organizations, we found statistically significant differences in the governance perceptions of these leaders of nonprofit organizations. The findings provide support for an agency theory explanation about the differing interests of principals (board chairs) and agents (CEOs). The findings suggest that these two sets of nonprofit actors frequently operate from different perspectives, potentially affecting the governance of their organizations.     

Growth and resilience of pioneering nonprofit human service organizations: a cross-case analysis of organizational histories

Knowledge of organizational history is important for recognizing patterns in effective management and understanding how organizations respond to internal and external challenges. This cross-case analysis of 12 histories of pioneering nonprofit human service organizations contributes an important longitudinal perspective on organizational history, complementing the cross-sectional case studies that dominate the existing research on nonprofit organizations. The literature on organizational growth, including lifecycle models and growth management, is reviewed, along with the literature on organizational resilience. Based on analysis of the 12 organizational histories, a conceptual model is presented that synthesizes key factors in the areas of leadership, internal operations, and external relations that influence organizational growth and resilience to enable nonprofit organizations to survive and thrive over time. Both cross-sectional and longitudinal examples from the organizational histories illustrate the conceptual map. The paper concludes with a discussion of directions for future research on nonprofit organizational history.     

A Review of Models for Measuring Organizational Effectiveness Among For‐Profit and Nonprofit Organizations

Induced by unprecedented growth, invasion of for‐profit organizations in the nonprofit domain, and high‐profile cases of mismanagement in the nonprofit sector, a recent surge in the literature suggests ample opportunities for research to compare the organizational effectiveness of for‐profit and nonprofit organizations. This article presents a literature review of nonprofit organizational effectiveness from which four models of organizational effectiveness are selected. These models are discussed and analyzed because they apply to both for‐profit and nonprofit organizations.