Discussion Board 1

Topics: Management, Non-profit organization, Non-profit organizations Pages: 6 (1328 words) Published: September 18, 2014

Organizational Design and Structure
For performance organization to be efficient, it must be based on a vertical organizational structure for the strategy formulation and decision-making to be accomplished by the top executives. This is then passed down the vertical hierarchical chain to be taken care of by lower workers within the organization or company. Due to this type of structure, all the control of the information that is used to complete any and all necessary tasks in order to obtain the goals of the organization sits with the upper management. The vertical or “top-down” management procedures are drastically different from the procedures followed within the horizontal management option. Both rely highly on information sharing within the organization however, the means in which the information is shared is very different between the two. A horizontal structure allows for the shared information to more both easier and quicker between staff and departments. The way the information is shared as well as the ease and speed with which it is shared is important to how the duties will be delegated and completed as well as the time it will take for these actions to be concluded. (Daft, 2010) Sharing information is a key factor utilized within a learning organization and the employees play a very important role in this type of organization. Without the proper procedures put in place to ensure this process runs smoothly, there is a high possibility of failure within the company. It is very important for all employees involved to hold the same information as well as mindset to work together as a team. Stakeholders in for profit and nonprofit organizations

A stakeholder is described in the textbook as any individual that holds invested interest in an organization or has influence over the decisions made within an organization. (Daft, 2010) There are many differences in the way nonprofit business are ran versus for profit businesses that could affect a stakeholders decision between one or the other that could affect a stakeholders expectations. An individual that is a stakeholder for a for-profit company would have the expectation of a return on their investment within the company whereas an investor in a non-profit company would not be expecting a financial return on his investment but rather a return to those affect by the purpose of the organization. For example, an investor in an animal rescue organization would expect their investment to be used to protect said animals whereas an investor in a stock or bond through a bank would expect to gain money on their investment. Managers if non-profit companies are required to pay closer attention to the operations within the business especially when they are directly linked to a stakeholder’s investment. Another issue that managers of non-profit organizations face is the close scrutiny by the government because of their assistance to the organization. Business managers for for-profit companies know the expectations of a stakeholder is to receive monetary gain from their investment whereas managers of non-profit organizations may not be sure what the stakeholder expects to gain from their investment and may not be able to provide the expectation because of extenuating circumstances that affect non-profits functioning. Stakeholders desire to see the managers of any company they plan to invest in display the ability to provide efficient performance strategies within the company in order to feel secure in their investment. Before making an investment, the individual wants to be informed of what they are investing in in order to make an informed decision whether they are investing in a non-profit to help the organization provide for the needs and goals of the company or in a for-profit company with the expectation of a return on their investment. With this being said, mangers of non-profits are faced with more challenges and therefore must be more focused and attending to their...

References: Daft, R. (2010). Organizational Theory and Design (11th ed.). Mason, OH: Centage Learning.
Elmuti, D. (2003). The Perceived Impact of Outsourcing on Organizational Performance.
American Journal of Business, 18(2), 33–42. doi:10.1108/19355181200300010
Kimmons, R., & Demand, M. (n.d.). What Are the Differences between Vertical & Horizontal in
Strategic Management? Small Business - Chron.com. Retrieved August 21, 2013, from
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