Discussion
The business environment has changed in a subsequent context but has also added a few serious threats that need to be tackled at the earliest. Non-profit business entities are an association or groups of niche establishments which focus on delivering services irrespective of extraction of any profits. Employees who remain associated with the non-profit or social organisations never have the desire to generate profit by rendering any services. Even if these enterprises notice any monetary outcomes, they never get distributed between the directors and members of the association’s officers ((Maqbool et al., 2019)). Presently due to global dynamics in business, managing services and funding the non-profit organisations have become very difficult. Thus, the issue that the non-profit or social enterprises face needs to be tackled at the earliest with proper framework and theories.
Applying proper theories and frameworks will allow the management of the non-profit or social enterprises to incorporate services that could successfully investigate the issues and provide relevant measures to restrict operational challenges and management issues in front of these organisations (Swami et al., 2018). This research essay will highlight proper management responses that any non-profit or social enterprise can undertake to eliminate the management challenges and suggest relevant solutions to handle the management issues on an immediate basis.
Every organisation faces management issues at some point, but it is necessary to identify those issues and figure out ways by which the issues identified can be mitigated at the earliest. Although there are several issues that the management of the non-profit or social enterprises faces constantly, some of the most important management issues have been discussed in this section of the research paper so that the users can gain relevant knowledge about them and implement frameworks and theories to address them at the earliest. Management challenges of the non-profit or social entities are:
Money – according to recent surveys conducted by different non-profit administrators, the topmost concern that the management of the social or non-profit entities faces is the accumulation of high resources of capital. The requirement to generate revenues remains at the top of many concerns about social and non-profit business entities. The requirement to generate revenue growth rose to approximately 16.7%, the requirement for donors and funding rose to nearly 11.3% and lastly, the requirement to incorporate fundraisers was nearly 7.5% (Casais and Santos, 2018). Non-profit enterprises are mainly concerned with extracting revenues effectively by gaining more donors.
Fundraising is important for non-profit business enterprises because it allows them to resolve the pressures extracted in the amount of money that would help them accomplish their programming goals. The financial crisis of the non-profit business entities must be fixed at the earliest because it adds up to the frustration and stress level of the management (Conaty and Robbins, 2021). To identify the aggregate amount of the budget, it is very important to consider the proper analysis of the total number of donors, the success rate of different fundraising campaigns, consistent donors that are available in the hands of the companies, one-time donors and lastly, any specific type of financial considerations that are essential to incorporate at the workplace.
Management issues for non-profit or social entities
Membership retention and recruitment – Retention and recruitment are essential for any business establishment as it mitigates the business challenges at the earliest and allows for the entity’s growth. There are a few challenges in front of any non-profit business entity that needs to be managed by considering the ways to satisfy the concerns associated with the existing members. It becomes essential for any and every non-profit or social business entity to identify the potential donors who are ready to render proper support for the non-profit or social business entity to grow and expand globally (Nahrkhalaji et al. 2018). Engagement of this theory serves as the key for all the non-profit entities to serve constantly and ensure that the entity reaches its tipping point by the proper acquisition of the members who will enable the entity to expand elaborately.
Recruitment and retention are essential because it allows any social or non-profit entity to remain highly interactive and remain engaging to expand the digital expectations among the millennial. Any social or non-profit business entity must ensure that its aggregate membership number enhances from time to time.
Figure: Non-Profit business entity
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Volunteer and staffing – Managing the staff according to the terms of any non-profit or social institution is yet another challenge that needs to be managed by managing these social or non-profit Enterprises. Whether there is any human resource department within the social or non-profit enterprises, the management needs to appreciate the services provided by their workers and incorporate ways so that internal recognition, affirmation and model of the employees remain high during the time of rendering the work. The leaders associated with non-profit business entities need to learn the main language of recognition and information and deliver a high number of bonuses to the employees to make them appreciated, motivated and valued for their work. The management must learn the technique to allow the workers to work in shifting duties (Parnell et al., 2019). This is because, without developing a proper culture that will allow competition of the social and non-profit based work efficiently, such enterprises will never expand in the market.
Technology – This is yet another perpetual issue that the management of any company attached to the social or non-profit business entities must incorporate. At present technological development, the non-profit and social enterprises need to function according to the digitalised and automated process so that the services can be made simpler and unreliable reporting can be avoided. Balancing the services concerning innovation is another important perspective that the social and non-profit business entities must look for with the specific programming requirements. Issues related to paper Mishra techniques and processes manual adjustments and using outdated software mix problems among the respondents account for approximately 7.5% of the total concerns recorded by the non-profit business enterprises (Paalberends and Laarhoven, 2018). Addressing technological concerns is very problematic for any non-profit or social enterprise as this makes the organisation more productive and allows them the opportunity to quickly respond to adverse situations within an economy.
Theoretical approaches
Decision-making is yet another important management issue faced by social or non-profit business entities. A proper reactive approach is crucial to make a big difference between the practical framework and the theories that need to be incorporated. Every activity involves more or fewer mistakes that need to be handled with utmost efficiency (Nahrkhalaji et al., 2018). Resolving the mistakes related to decision making would enable the social and non-profit business enterprises to increase any type of vocational mistake and restrict the chances of occurrence of the risk of “mission creep” ((Conaty and Robbins, 2021)). An ineffective process makes a business entity highly ineffective and makes brand perception difficult for any social or non-profit business entity.
This particular chapter of the research essay paper offers a broad overview of different theoretical attributes that various social or non-profit business entities could undertake to develop a proper solution against such management issues. Before depicting the range of theories, the management needs to introduce the users of this research paper to fundamental concepts essential for the sociological and economic development of any social or non-profit business entity (Nahrkhalaji et al., 2018). Famous researcher Richard Titmus, in his famous novel, raised the question that when different services and goods that are channelized within the market are measured according to the price mechanisms, then why not the services provided by the social or non-profit organisations? Do not enter the category of price mechanisms.
Figure: Reasons for the existence of Non-profit or social entities
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In response to the background created by the Titmus reasoning, some of the major theories are crucial for the enterprises dealing with different kinds of social and non-profit business functions to incorporate within their operational areas. Adoption of the theories and frameworks by these enterprises will address the primary challenge in the form of “why” any social or non-profit entity exists and the institutional choices made by such entities. Secondly, incorporating these theories will allow the non-profit and social enterprises to develop and proceed with operations according to the recommendations and preferences related to the person obtained by the feedback or the dedicated services (Swart et al., 2018). Secondly incorporating these theories will allow the non-profit and social enterprises to develop and proceed with operations according to the recommendations and preferences open by the feedback of the persons to which the services are dedicated. A liberal market economy can be created due to the incorporation of the theories that guarantee the development of a liberal market.
During the year 1975, famous economist Burton Weisbrod remained the first person to publish this theory which guaranteed the existence of non-profit or social enterprises. The theory is regarded as an extension of the non-profit organisation that describes the collective action of a proper economic rationale to satisfy the presence of any social or non-profit business entity. According to this theory, two important concepts that are “demanded rigidity” and “median voter” help identify the persons to meet up the qualitative and the quantitative levels of the public. The array of non-profit business entities is very helpful in enhancing the diversity of the customers in terms of ethnicity, religion or language, preferences and lifestyle etc.
As the persons who are associated with the non-profit or social enterprises work without any motive to earn revenue or extract profits from the market, hence it becomes necessary for the establishments to hire higher individuals who will be completely dedicated to their work (Gratton, 2018). Application of the trust-based issues makes the employees of the social or the non-profit organisation function according to the establishment’s mission and take the decisions according to the mission towards the society and remain efficient and effective. Building a proper culture by incorporating the “trust-based theories” is crucial because it will enable the workers to respond accordingly and support internal recognition.
This is yet another important theory that supports heterogeneity and emphasises different aspects that would help the enterprises to scale up their services and support their existence based on a supply-side perspective. The application of entrepreneurship approaches maximises the chances to extract more returns in the form of donors and workers responsible for maximising the ideologies and non-distributive constraints from the markets (Conaty and Robbins, 2021). These theories enable the entrepreneurs to drive the goals, missions and outputs for every business entity engaged in social and non-profit based services.
Another important theory focuses on incorporating the established approaches and principles to specify the concept of governance and interdependence. This theory mainly strives to provide a base for different entities dealing with the social or non-profit organisations to overcome the philanthropic efficiency and develop goodwill within the market regarding the delivery of social and non-profit based services (Maqbool et al., 2019). The enterprises can become more reliable in developing a quasi-public environment so that the delivery of the services remains constant and effective. Philanthropic centralism and amateurism are yet another important feature that the social and non-profit entities can extract by applying the interdependence theory.
Conclusion
Completion of this research paper concludes the fact that figuring out the donors and staying connected with them is the main idea behind the success of any social or non-profit business entity. Arranging for a proper source of finance is yet another important aspect that any social or non-profit entity should arrange. Completion of this paper depicts adoption of the theories and frameworks by these enterprises will address the primary challenge in the form of “why” any social or non-profit entity exists and the institutional choices made by such entities. The paper concludes the fact that non-profit organizations needs to be managed effectively because it will help in making the enterprises more competent enough to address the management issues in an efficient way. This can be possible only by application of different theoretical frameworks and application of correct approaches for better social services towards the communities.
References
Gratton, P.C., 2018. Organization Development and Strategic Planning for Non-Profit Organizations. Organization Development Journal, 36(2).
Nahrkhalaji, S.S., Shafiee, S., Shafiee, M. and Hvam, L., 2018, December. Challenges of digital transformation: The case of the non-profit sector. In 2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1245-1249). IEEE.
Conaty, F. and Robbins, G., 2021. A stakeholder salience perspective on performance and management control systems in non-profit organisations. Critical perspectives on accounting, 80, p.102052.
Witjas-Paalberends, E.R., van Laarhoven, L.P.M., van de Burgwal, L.H.M., Feilzer, J., de Swart, J., Claassen, E. and Jansen, W.T.M., 2018. Challenges and best practices for big data-driven healthcare innovations conducted by profit–non-profit partnerships–a quantitative prioritisation. International Journal of Healthcare Management, 11(3), pp.171-181.
Garg, E., Swami, S. and Malhotra, S.K., 2018. Branding effectiveness measurement in the non-profit environment. Journal of Advances in Management Research.
Parnell, D., May, A., Widdop, P., Cope, E. and Bailey, R., 2019. Management strategies of non-profit community sports facilities in an era of austerity. European Sport Management Quarterly, 19(3), pp.312-330.
Casais, B. and Santos, S., 2018. The corporate propensity for long-term donations to non-profit organisations: An exploratory study in Portugal. Social Sciences, 8(1), p.2.
Maqbool, N., Razzaq, S., Ul Hameed, W., Atif Nawaz, M. and Ali Niaz, S., 2019. Advance fundraising techniques: a piece of evidence from non-profit organisations. Pakistan journal of humanities and social sciences, 7(1), pp.147-157.
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