Nonprofit Management Unit 2 Vocabulary
Stern v. Lucy Webb Hayes National Training School of Deaconesses and Missionaries
"The Sibley Hospital Case" The most definitive statement of nonprofit board responsibility. Parents of children who had been patients at the hospital alleged that members of the board had mismanaged the hospital's assets and had placed hospital funds in accounts at banks in which they had personal financial interests. Judge Gesell identified the legal responsibilities of care, obedience and loyalty.
John Carver Quote
"Without a market to summarize consumer judgement, a nonprofit organization literally does not know what its product is worth...In the absence of a market test, the board must perform that function
Strategic Mode
"create a true strategic partnership with management," addressing matters such as the organization's long-term directions and goals
Volunteer Program Practices
1. Assess the need for volunteers 2. Determine the structure of the volunteer program 3. Develop volunteer job descriptions 4. Develop formal volunteer policies 5. Provide a sufficient budget and personnel to manage the volunteer program 6. Recruit and hire volunteers as if they were employees 7. Provide orientation and training to volunteers 8. Set clear goals, evaluate performance, and recognize achievement
Ten basic responsibilities of nonprofit CEO
1. Commit to the mission 2. Lead the staff and manage the organization 3. Exercise responsible financial stewardship 4. Lead and manage fund-raising 5. Follow the highest ethical standards, ensure accountability, and comply with the law 6. Engage the board in planning and lead implementation 7. Develop future leadership 8. Build external relationships and serve as an advocate 9. Ensure the quality and effectiveness of programs 10. Support the board
Twelve principles that power exceptional boards
1. Constructive Partnership 2. Mission driven 3. Strategic thinking 4. Culture of Inquiry 5. Independent-mindedness 6. Ethos of transparency 7. Compliance with integrity 8. Sustaining resources 9. Results-oriented 10. International board practices 11. Continuous learning 12. Revitalization
Hotter Eight Step Change Process
1. Establish a sense of urgency 2. create a guiding coalition 3. Develop a vision and strategy 4. Communicate the change vision 5. Empower broad based action 6. Generate short term wins 7. Consolidate gains and produce more change 8. Anchor new approaches in the culture
Six behaviors of Herman and Heimovics
1. Facilitating interaction in board relationships 2. Showing consideration and respect toward board members 3. Envisioning change and innovation for the organization with the board 4.Providing useful and helpful information to the board 5. Initiating and maintaining structure for the board 6. Promoting board accomplishments and productivity
Production Orientation
A company that follows a production orientation chooses to ignore their customer's needs and focus only on efficiently building a quality product.
Managers should think about the salience of various rewards
A manager needs to listen, determine what each member of the staff finds important and provide rewards consistent with that insight
Managers should be honest with people about what rewards are possible and what rewards are not
A manager who is unrealistic in promising increased compensation, increased responsibility, community recognition, or some other reward for achievement of goals may buy some short-term motivation
Excess Benefit Transaction
A person's level or type of compensation is deemed to be in excess of the value of the person's services
Frame
A perspective or a way of seeing and understanding things
Political Frame
A perspective through which the CEO sees and understands the environment in terms of pressures brought by various constituencies that compete, bargain, and negotiate over the allocation of resources
Volunteering in America
A report published by the Corporation for National and Community Service. More than 61 million Americans engaged in volunteer service, providing over 8 billion hours of service. Edward M. Kennedy Serve America Act intended to triple the number of volunteers working in AmeriCorps
Contested
A special election initiated when the legality or validity of the result of a previous election is challenged by losing the candidate
Employee Orientation
A trait of a manager who cares about the people who work for him. For long-term motivation, employees generally want to know their leader cares about them as people.
Managers should participate in setting clear and challenging goals
Achievement requires that there be clear goals by which it is defined. The manager should establish goals in a participative manner so that the staff member accepts them as his or her own, provide regular feedback on progress, and grant recognition when the goals are reached
Relationship Behaviors
Actions that focus on the feelings of subordinates
Task Behaviors
Actions that relate to work to be done
Strategic Thinking
Allocate time to what matters most and hone the organization's direction
Policy Governance Model
Also known as the Carver Model Boards should be the leaders of the organization: Ends to be achieved: describe what the organization is to achieve and could be called results, impacts, goals and outcomes Means to the ends: boundaries that the CEO may not cross in pursuing the ends established by the board Board-staff relationship: what decisions are delegated to the CEO and which ones are retained by the board Process of governance: the board's own role and operation, clarifying which owners it represents and defining its own "job process and products"
Transition Planning
An ongoing practice that is focused on defining an organization's strategic vision, identifying the leadership and managerial skills necessary to carry out that vision, and recruiting, developing and retainining talented individuals who have or who can develop those skills.
Purposive Rational Model
Based on Max Webers theory of bureaucracy conceives of the board as the top of a hierarchy and the CEO as merely its agent.
Theory X
Based on the assumption that workers are lazy, resistant to change, and not concerned with the organization's needs. It is basically a negative view of human nature and might be used to justify an approach something like scientific management
Operant Behavior/ Conditioning
Behavior that is positively reinforced (rewarded) is repeated. Behaviors that result in punishment are less likely to be repeated. Positive reinforcement could include praise or monetary rewards.
Charismatic Leadership
Behaviors associated 1. The leader advocates a vision that is different from the status quo but still acceptable to followers 2. The leader acts in unconventional ways in pursuit of the vision 3. The leader engages in self-sacrifice and risk-taking in pursuit of the vision 4. The leader displays confidence in his or her own ideas and proposals 5. The leader uses visioning and persuasive appeals to influence followers, rather than relying mainly on formal authority 6. The leader uses the capacity to assess context and locate opportunities for novel strategies
Appointed Boards
Board members may be selected through appointment by some authority outside of the organization
Governance as Leadership
Boards are reactive to staff initiatives. Boards manage the organizations and CEOs articulate the mission. Boards set the agenda. There is a fiduciary, strategic, and generative mode.
Revitalization
Boards energize themselves through planned turnover, thoughtful recruitment, and inclusiveness
Intentional Board Practices
Boards intentionally structure themselves to fulfill essential governance duties and to support organizational priorities
Mission Driven
Boards shape and uphold the mission and articulate the vision
Millennials
Born after 1980. Came of age with the development of the internet and some were shaped by events that included the terrorist attacks of September 11, 2001. Because of the advance of worldwide communication and increased opportunities for travel, many millennials have developed a greater international awareness that previous generations held
Generation X
Born in the 1970s and early 1980s. The first to grow up in families with both parents employed outside of the home and witnessed such powerful events as the Challenger disaster and the fall of the Berlin Wall
Chief executive officer
CEO - the top paid staff person.
Role of "Politicians" and "Fundraisers"
CEOs are focused outside of the organization but concerned with present operations
Management
Concerned with day to day operations, with making things work. It emphasizes policies, procedures, rules, and processes.
Contentious Election
Controversial election
Life cycle theories
Describe specific stages through which organizations naturally evolve
Need theories (McGregor)
Describes managers views of motivation. Theory X is the traditional view that people are lazy, lack ambition, etc. Theory Y is the view that people are capable, enjoy work, accept responsibility, and accept change. Managers' behavior depends on which theory they hold
Ex Officio
Designated to be held by the individual who holds a certain office or position
Targeted recruitment
Designed to attract fewer, select volunteers for jobs that require particular skills or interests or are appropriate for specific age or cultural groups Two advantages 1. It can select people with right skills to meet its needs and those who are likely to remain committed to their volunteer responsibilities 2. The organization may be able to craft its volunteer program in order to include groups from prospective donor companies, religious congregations, or other groups with which it wishes to establish closer relationships
Situational Theories
Different styles might be more appropriate in certain situations than in others, that is, that leaders might need to adapt their styles to the environment in which they were working
Advisory Councils
Do not have legal responsibility or authority for governance of the organization, some are formal or informal, and most do not need to be mentioned in legal documents such as bylaws.
Ethos of Transparency
Ensuring that the donors, stakeholders, and interested members of the public have access to appropriate and accurate information regarding finances, operations and results
Life stages theories
Erik son identified needs that people have in different stages of their lives. Other theorists have discussed how the issues associated with certain life stages affect people at work and how organizations can provide appropriate support
Continuous Learning
Evaluate their own performance and assess the value that they add to the organization
Conflict of Interest
Example: When the board has to vote on whether to give a business contract to a company that may be wholly or partly owned by a member of the board itself or that perhaps may employ a board member's relative.
Executive Leadership
Exists when the leader has the power to simply make decisions
Emotions theories
Explain how emotions may cause people to behave in ways that are not considered rational
Trait Theories
Explain leadership in terms of the innate characteristics of individuals who are leaders. (physical traits and personality traits)
Intermediate Sanctions
Financial penalties to punish individuals who engage in or permit improper transactions
Need theories (McClelland)
Focuses on three needs for achievement, for power, and for affiliation. Examines how managers' needs affect their behavior
Follower-centered
Follower-centered styles achieve organizational success through the realization, growth and development of the followers. Participative, Servant, and Transformational leadership
Fiduciary Mode
Generally addressing legal responsibilities: The board is concerned with matters such as stewardship of tangible assets, faithfulness to the mission, performance accountability, and obedience to the law. *Most work in this mode
Goal theories
Goal-setting and the existence of goals motivate people
Managers should make the work satisfying and meaningful
Good managers provide their staff members with opportunities to grow personally and professionally, to take on new challenges, and to develop new skills in a variety of areas. Those who are employed in nonprofits are usually motivated by the impact of their work on the lives of clients.
Role of "Coach"
Guiding staff and others who are performing the organization's work
Expectancy theories
Human motivation can be understood by the strength of a person's desire for an outcome (valence) and the person's expectation that a certain behavior will be related to that outcome (expectancy). Valence and expectancy determine motivation force
Dissatisfiers/ Hygiene Factors
Hygiene factors are things that can upset employees in the workplace. They are outside the control of the individual but have a huge influence on the roles of each worker. Ex. Company policies and administration, relations with supervisor, interpersonal relations with co-workers, working conditions, compensation, status and security.
Need theories (Herzberg)
Identifies separate factors that are satisfiers and dissatisfiers. Satisfiers are motivators. Managers should reduce or eliminate dissatisfiers and increase satisfiers.
Internal Preparation
If the organization is large enough to have staff members capable of eventually filling the CEO position, the CEO can intentionally prepare those individuals by including them in important meetings and decisions, providing them with opportunities for additional professional training, giving them assignments with responsibility that can help develop their leadership skills, and exposing them to the board so they will know the board and the board will know them.
Policy Volunteers
Individuals who may serve on a board or council but may not be engaged in delivering services
Managers should treat people equitably and fairly
Inequities in salary paid to individuals who perform similar work or put forth comparable effort may create more dissatisfaction than fair compensation that is modest in absolute terms. No person should be treated unfairly for reasons of his or her race, nationality, gender, religion, sexual orientation, disability, political perspective, or other personal characteristics
Four quadrants in which the CEO may focus and operate at any given time
Inside the organization, outside the organization, on present operations, and on future possibilities
Culture of Inquiry
Institutionalize a culture of inquiry, metal respect, and constructive debate that leads to sound and shared decision-making
Myers-Briggs
Instrument used to reveal personality style
Board Centered Leadership
Is not common
Alignment Map
It encompasses the characteristics of the individual as well as the characteristics of the organization and of the community or market that the organization serves
Skills Theories
It is not the innate qualities of individuals, such as physical appearance or even intelligence, that make them effective leaders. There are specific skills that effective leaders possess; in other words, effective leadership depends less on what the leaders are and more on what they are able to do.
Prescriptive
It tells more about how to lead and much less about how leaders actually go about their business
Functional Responsibilities
Job descriptions listing the duties that boards should perform
Volunteer Management
Job development, recruitment, training, and education of volunteers
Technical skills
Knowledge of the job, profession, or task
Leader-centered
Leader-centered styles achieve organizational success through the self-realization and self-projection of the leader
Path-Goal Theory
Leaders can adapt their behavior to motivate followers and enhance satisfaction and performance
Kotter (1996)
Leaders often fail to develop a powerful guiding coalition in support of change. They underestimate the power of the vision, they try to operate behind the scenes, they under communicate the vision, they do not create short term wins, and they risk declaring victory too soon
Servant leadership
Leadership begins with the leader's values and commitments and moral leaders are more concerned with serving others than with meeting their own self-interes
Transformational Leadership
Leadership that changes people inspires and enables people to grow both morally and in terms of their levels of motivation
Sustaining resources
Link bold visions and ambitious plans to financial support, expertise, and networks of influence
Role of "Change Agent"
Looking inward but with a view to the future
Regular Volunteers
Makes a commitment to the activity and gains a sense of gratification and accomplishment from the work. They have the formality of a regular paid job; there may be job descriptions, clear statements of responsibility, and specific skills required to perform the work
Duty of Loyalty
Members of the board put the interests of the organization above their own personal financial interests or that of another organization with which they may also have a formal relationship
Board of Directors
Members of the governing board that are directors of the corporation under the law.
Leadership
More about purpose, vision and direction. More about where and why rather than how
Executive Psychological Centrality
Most organizations use this. The CEO is actually the one that is seen as responsible for the organization's success or failure.
Self Perpetuating
New Members of a self-perpetuating board are selected by the existing members of the board, who identify and enlist individuals according to criteria established by the board itself.
Managing Human Behavior in Public and Nonprofit Organizations
Nine suggested ways of acting for nonprofit and public sector managers 1. Managers should be reflective and proactive about their own motivation 2. Managers should be aware that what motivates them is not necessarily what will motivate others 3. Managers should have realistic expectations about the extent to which they can influence the motivation of others 4. Managers should participate in setting clear and challenging goals 5. Managers should think about the salience of various rewards 6. Managers should be honest with people about what rewards are possible and what rewards are not 7. Managers should treat people equitably and fairly 8. Managers should make the work satisfying and meaningful 9. Managers should think about the life stages of the people they work with and offer appropriate support
Princeton Survey Research Associates and supervised by the Brookings Institution
Nonprofit workers are indeed driven by mission rather than money
Non distribution constraint
Nonprofits cannot use their profits to benefit owners, nor can they pay unreasonable amounts to board members or executives, which might have the same effect as sharing the profits with them.
Private Inurement
Nonprofits cannot use their profits to benefit owners, nor can they pay unreasonable amounts to board members or executives, which might have the same effect as sharing the profits with them.
Form 990
Nonprofits that have at least $50,000 in annual revenues are required to file
Social Constructionist Model
Official or intended goals, structures, and procedures may exist only on paper. Actual goals, structures, and procedures emerge and change as participants interact and socially construct the meaning of ongoing events.
Self-starters
Often described as ideal candidates in job advertisements. They are in essence free to pursue their goals for fulfillment and achievement by having met lower-level needs
Marginal Volunteer
One who is pressured (or encouraged) to engage in service. Ex. mandatory community service for graduation requirement, a class, or court mandated service
Scientific Management
Organizations operate much like machines. This theory by Frederick W. Taylor emphasizes procedures and systems rather than human motivations and relationships
Board of Trustees
Organizations such as educational, cultural, and medical institutions use this in the place of the board of directors.
Authority obedience management
Organizations that are high on production and low on relationships. They are dictatorships although they may be productive
Impoverished management
Organizations that are low on both concern for people and production. These are dreadful places to work, and most people would probably not stay long in an uninspiring environment
Episodic Volunteers
Participate more than once, but only for a short period of time or during a certain time of year
Spot Volunteers
Participation is casual. There is usually a one-day commitment. The effort may not need to be repeated again. There are no special skills or qualifications required
Duty of Care
Paying attention and exercising due diligence in monitoring the organization's finances and supervising the actions of its management
Participation
People are motivated through participation in goal setting and a democratic approach to determining rewards, methods, and evaluation
Managers should be aware that what motivates them is not necessarily what will motivate others
People are not all alike. They bring their own needs to the workplace, which may reflect circumstances in their personal lives, their cultural backgrounds, or other characteristics.
Need theories (Maslow)
People behave in ways that satisfy their needs. Needs are in a hierarchy: physiological, safety, love (social), esteem (ego), self-actualization. People are motivated to meet higher level needs once lower level needs have been satisfied
Equity Theories
People expect a fair relationship between effort and reward and change their behavior in response to perceived inequity
Sarbanes Oxley Act
Places new requirements on the governance of publicly traded for-profit corporations. The destruction of documents and protection for whistle-blowers
Compliance with Integrity
Promote strong ethical values and disciplined compliance by establishing appropriate mechanisms for active oversight
Personality Style
Refers to the manner in which individuals gather and process information
Legislative Leadership
Relies more on persuasion, optical currency, and shared interests to create the conditions for the right decisions to happen
Give or get policy
Requires that each board member either give personally or solicit gifts from others to total the minimum amount
Alignment Model
Seeks to integrate the major leadership theories, that is, to provide "an overarching conceptual framework that brings the theories together, or at least, describes how the theories relate to one another
Virtual Volunteers
Serving the nonprofit via e-mail, the Web, or postings on Twitter, Facebook, and other social media
Voluntourism or Volunteer Vacations
Some are structured to place the primary emphasis on the volunteer project, with some period of vacation attached. Others are primarily vacations with work on a volunteer project incorporated for some portion of the trip.
Hybrids
Some members being elected, some appointed, some self-perpetuating and some serving ex officio
Hierarchy of Needs
States that human needs progress from those at lower levels to those at higher levels as the lower level needs are met. Human beings strive to meet their lower level needs before addressing those in higher categories. In the lowest category that is, at the bottom of the hierarchy are basic physiological needs
Contingency Theories
Take situational theories on step further and provide a way of matching leader styles to defined situations. The most effective style of leadership is contingent on the situation
Hawthorne Experiments
The Hawthorne studies were conducted with the workers at the Hawthorne plant of the Western Electric Company in the 1920s. The studies suggested that employees have social and psychological needs—along with economic and financial needs—which must be met in order to be motivated to complete their assigned tasks. The studies originally looked into whether workers were more responsive and worked more efficiently under certain environmental conditions, such as improved lighting.
Conceptual skills
The ability to understand ideas and principles
Human skills
The ability to work with people
Satisfiers/ Motivators
The aspects of a workplace that give individuals job satisfaction. Achievement, recognition, the work itself, advancement, growth, and responsibility.
Duty of Obedience
The board makes sure that the organization is complying with the law and, in addition, that any decisions or actions taken are consistent with the organization's mission and governing documents, including its charter.
Founder Syndrome
The board may begin to add more outsiders, people who are not personally selected by the founder and who bring more professional skills. These outsiders have less loyalty to the founder, and the balance begins to shift, increasing tension between the founder/executive director on the board.
Constructive Partnership
The constructive partnership between the board and the CEO. They are interdependent
Leader-member relations
The degree of trust, cooperativeness, and friendliness between the leader and the followers
Service Volunteers
The focus of chapter 9. A person who voluntarily offers himself or herself for a service or undertaking and a person who performs a service willingly and without pay.
Position power
The formal position of authority the leader holds
Blake and Mouton Managerial Grid
The grid is based on different combinations of task and relationship behaviors and defines four styles
Team management
The ideal type, showing high concern for both people and production
Warm body recruitment
The implication being that if the person is breathing and willing, they are signed on as a volunteer
Transactional Leadership
The leader exchanges rewards or punishments for the behaviors of others Ex. If you come to work, then you will get paid; if you don't, you won't
Managers should think about the life stages of the people they work with and offer appropriate support
The life stage theories describe the needs and motivations of people in various periods. There may be differences among generations in what workplace culture or management style may be preferred and most effective.
Change-centered
The main focus is on the impact of the organization and changing the leadership to make it better. Leaders must overcome resistance and be willing to change
Managers should be reflective and proactive about their own motivation
The manager's own psychological needs and motivations affect how he or she interacts with and communicates with colleagues and subordinates. The manager's values and worldview may affect his or her behavior with regard to people supervised
BoardSource
The mission is to inspire and support excellence in nonprofit governance and board and staff leadership
Three principal needs of managers
The need for achievement, the need for power over others, and the need for affiliation or good relationships with others
Panel of Nonprofit Sector
The panel's principles address governance and ethical practices of nonprofit organizations. They encompass but also go beyond the practices of governing boards.
Behavior and Style Theories
There are certain behaviors associated with effective leadership. Two types include: Task behaviors and relationship behaviors
Unambiguous
They are defined by law
Managers should have realistic expectations about the extent to which they can influence the motivation of others
They are motivated to meet whatever psychological needs they may already have. If individuals needs and motivations simply do not align with the goals of the organization, it may be best to suggest that they find employment in a more suitable environment
Results Oriented
They measure the organization's advancement toward its mission and evaluate the performance of major programs and services.
Country club management
Those high on relationships and low on concern for production. They are great places to work but they get little or nothing accomplished.
Governing Boards
Those that have legal responsibility for governing their organizations
Social distance
To be perceived as charismatic, the leader cannot permit himself or herself to be too familiar
Bernard Bass
Transformational leaders also use transactional techniques in that they do provide goals and rewards for reaching them
Leader member exchange theories
View leadership in terms of interactions between leaders and followers
Theory Y
Views employees as capable of self-motivation and self-direction and sees his or her role as a manager as supporting the development of the people supervised.
International Volunteer
Volunteers, generally from the United States and other western nations, travel to other parts of the world to work on conservation, educational, and humanitarian projects, generally for a brief period of time
Role of "Visionaries" and "Strategists"
When CEOs are focused externally and looking to the future
Independent Mindedness
When making decisions, board members put the interests of the organization above all else
Task structure
Whether the job to be done is clear and specific or ambiguous and uncertain
Succession Planning
a process for identifying and developing internal people with the potential to fill key business leadership positions in the company. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.
Equity Theory
a theory that states that people will be motivated when they perceive that they are being treated fairly
Pro forma vote
done as a matter of form or for the sake of form. A formality vote
Expectancy Theory
proposes that motivation depends on individuals expectations about their ability to perform tasks and receive desired rewards
Generative Mode
the creative, out of the box thinking in which visionary leaders often engage. Coming to understand things in new ways. Necessary foundation for setting direction and goals and thus an essential activity of leadership.