PurposeThis paper aims to examine the impact of board of directors on the performance of not‐for‐profit (NFP) organizations. The study also aims to utilize the six dimensions of effective board performance as suggested by Chait et al., using the theoretical explanations of the resource dependency theory, the agency theory, and the group/decision processes theory. By explaining how these board activities influence organizational performance, we can begin to understand the importance of board influence in determining organizational effectiveness as measured by organizational performance.Design/methodology/approachFor the purpose of this study, organizational performance attributes are used in line with the strategy used by Nobbie and Brudney. The measurement used includes the perception of board members' view of the overall success in meeting organizational goals, increase or decrease in the number of programs offered by the organization, improvement in the quality of service offered by the organization, and the level of satisfaction by the clients with the level of service provided.FindingsThe survey revealed that the strategic and the political dimensions have a stronger relationship with the perceived organizational performance in nonprofit organizations as compared to the other dimensions.Research limitations/implicationsGiven that the majority of the respondents (30) of the study served in religious organizations, this may have skewed the results toward a certain direction that is difficult to ascertain until other studies compare results across different NFP classifications. This suggests that it is important to repeat such a study with a much diverse group of NFPs in addition to measuring other board and organizational dimensions such as board size, executive perceptions, and organization size, and age.Practical implicationsThe efforts to link board effectiveness and organizational performance will remain tenuous at best. This is an illusive phenomenon that will continue to elude researchers as long as the dimensions of board effectiveness and organizational performance remain perceptual. The need to understand the strategic orientation of NFPs governance is even greater as these organizations continue to play a major role in the lives of ordinary people in various communities around the world.Originality/valueIn order to understand the effectiveness of the board in NFPs, this study examines three theoretical perspectives that can be utilized to connect the different dimensions of board performance and organizational performance. In previous research, Chait et al. examined the practices of board members at independent colleges and identified six competencies of effective boards. The identified dimensions are: contextual: effective boards understand and take into consideration the culture and norms of the organization they govern; educational: effective boards ensure that their members are knowledgeable about the organization and the board's roles, responsibilities, and performance; interpersonal: effective b...
I n 2009, IBM conducted interviews with more than 1,500 chief executive officers worldwide. In a note to the fellow CEOs Samuel J. Palmisano, Chairman, President and Chief Executive Officer of IBM defined the challenges facing firms today:We occupy a world that is connected on multiple dimensions, and at a deep level -a global system of systems. That means, among other things, that it is subject to systems-level failures, which require systems-level thinking about the effectiveness of its physical and digital infrastructures (IBM, 2009).
PurposeThis paper focuses on not‐for‐profit (NFP) general management competencies and examines the predominant desired knowledge skills and abilities as a key component of general management responsiveness capability in empirically validated strategic success hypothesis. The strategic success hypothesis postulates that the performance of an organization will be optimized when the strategic aggressiveness and the responsiveness capability of general management is aligned with the respective environment.Design/methodology/approachThe research utilizes a content analysis approach whereby the contents of job postings for the top positions in NFP organizations from different sources were analyzed and summarized. The analysis involved the collection of a comprehensive list of the top‐level general management position or job advertisements posted in both print and electronic media. Some of the sources include the Non‐Profit Times, job postings by agencies, and electronic job posting boards.FindingsOne of the key findings was that the NFP sector utilizes the top‐level general management to address the fiscal management dynamics. Fundraising experiences and skills are emphasized and were listed as the key responsibility of the top‐level general management. There was also some emphasis on not‐for‐profit organization management skills and experiences along with communication, governance, interpersonal skills, budgets and fiscal management. The other finding was that in addition to the above sector related desired competencies, generic experience, skills and position responsibilities were emphasized.Research limitations/implicationsThe limitations of this study include: Using job postings as a proxy for actual preferences for certain competencies has certain disadvantages. For instance, the quality of job postings in terms of information included might be a reflection of the writing skills and depositions of the drafters. The size and the life cycle stage of the organization might impact the need for certain competencies. For example, a small start‐up agency might not be concerned with governance or ethics issues like a huge organization such as the United Way. The nature of the NFP's activity may also influence the type of competencies sought.Practical implicationsThe most important feature of any organization is the quality of its human resources. The NFP sector is currently faced with many challenges which include fiscal, technological, human resources, governance and overall effectiveness. While leadership is recognized as a powerful resource in determining the direction and the future of the organization, leadership alone is not sufficient to address all the problems facing the sector. Firms do need effective managers, good strategic management systems, motivated staff, and adequate financial resources to drive success.Originality/valueThe study found that formal educational requirements were emphasized with over 77 percent of the job postings listing bachelor degree and above as criteria for selection. This indicates t...
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