Nonprofit Management Unit 2 Vocabulary

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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.


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