Sawyer Business School
PAD 713AE: Budgeting and Financial Management
Research Paper
Performance Management in Non-Profit Organizations
Ruy N (Ryan) Ribeiro
05/01/2010
Introduction
Non-Profit organizations are trusted to address some the most challenging issues affecting society: ending violence in inner-city communities, educating disadvantaged children, diminishing health disparities and empowering disfranchised populations to bring about change are just a few of these very difficult tasks non-profits take on. Considering the importance of that work and the pivotal role these organizations play in alleviating the burden of those issues to society, it is fair to say that non-profits …show more content…
When dealing with a segment whose products are not tangible, how can one define the effectiveness of that kind of work? At the same time, the expectations being placed on these organizations to show results by their staff members, their boards, and public and private donors are rising. Nonprofit leaders are put in a difficult position where they need to demonstrate accountability and quantify the goals they want to achieve. For that reason, most of them have resorted to a set of commonly used performance measures to ensure they are being much more explicit about the results they intend to deliver and the strategies they’ll apply to achieve them. This paper will discuss some of the performance measures used in the non-profit …show more content…
The need to become more accountable to results has forced many of these organizations to adopt performance management systems. There are a few commonly used systems as explained in this paper, they each have their strengths and their weakness and it is up to each nonprofit manager to decide which one suits them best. This is a very new field, however, that has emerged with New Public Management and become more prominent in the 90s. There is a lot of room for new theories and approaches to be developed, and I am sure in the near future we will be hearing more innovative concepts coming into play. Regardless from which angle you look at predominance for nonprofit organizations, there will always be the issue of hard-to-define products and goals. And there will always be the cultural issues within those organizations where staff may not be as in tune as managers are of the needs to define success and measure performance. People join non-profits because they have affinity with their missions and the idea that they have to achieve goals and quotas may not be as tangible to them as their desire to help