Strategic Management in Non Profit Making Organization

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Strategic Management in Non Profit Making Organization

By | March 2013
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Introduction
Strategic Management is the process by which managers make the choice of a set of strategies that will enable it to achieve better performance.

The context of strategic management can be defined as the societal role of the organization, environmental, technological and human resource factors. With changes in a context, a unique set of managerial constraints arise (Stevens & McGowan, 1983). Context influences the nature of managerial behavior: the actions of a manager in arriving at a decision regarding how to deal with a given context.

The way that a strategic plan is developed depends on the nature of the organization's leadership, culture of the organization, complexity of the organization's environment, size of the organization and expertise of planners. The not-for-profit sector is extremely diverse in terms of the organizations it encompasses and the work it undertakes.

In recent years, there has been a substantial increase in the creation and consolidation of non-profit organizations of various sizes, with diverse objectives and different scopes of action. More often than not, these organizations are managed by individuals who are dedicated or committed to the company's goals but have not had the opportunity to undergo specific training for this purpose.

There are diverse types of non-profit organizations globally e.g. hospitals, social, cultural and political organizations. Most of the NGOs startups will usually come up with a strategy formulation paper which will consist of the vision, goals and objectives, implementation strategies and the budgets.

This is because most of them are funded through grants and donations which will normally require a well done funds mobilization proposal. However, most of them are less likely to engage in procedural strategic management implementation as a formal exercise. Also, these organizations are less likely to exhibit the features of a sound strategic plan as follows: • Whereas one of...
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