Not-For-Profit Organizations: Complication of the Strategic Management Process
The main aspect of NFP organizations is not profit-seeking but to render service to the community. The aspect of profit-seeking is incidental and not the main essence of such a business. Professionals, in more ways than one, are more concerned with profits, turnover, meeting of corporate aims and objectives, and enhancing shareholder values. Fund generation and dissemination are crucial aspects of professional organizations as are cost-cutting, labor attrition, productivity, and human resource development and management. While it would be incorrect to state that these aspects do not impinge NFP agencies, these are not their primary motivators.
Thus, a mismatch between the assigned goals and objectives of an NFP organization, and the professional conduct of its personnel could work at cross purposes, thus defeating the purpose and set the mission of such an organization. Moreover, dual purposes and conflict in goal and objective management could further complicate matters and render ineffective, any opportunities for seeking to solve the issues. To say that such issues cannot occur in profit-seeking institutions would be also untrue. All corporate have priorities, Vision, and Mission statements for their governance and guidance.
It is often possible that sometimes, individual goals and objectives of professionals engaged in for-profit business (FPB) do not meet, or even conflict with organizational goals and objectives. This may lead to conflict situations. Again the priorities laid by individuals may not be endorsed by the management which creates misunderstandings and complicates procedures. Thus it is very important for the workforce, management and stakeholders to have unity of purpose and clear-cut directional strategies, whether in profits or nonprofit organizations. Only this could lead to all-around growth and developments in challenging business environments.
However, it needs to be said at this stage that the organizational framework and the psyches of individual workers are also major factors that need to be considered. Where individual goal achievements remain paramount in the minds of employees and the workforce, one cannot achieve furthering of stakeholders’ interests. Similarly, work cultures where employees are not given commensurating compensation are also ethically bound, which again vitiates the work ethos. Thus, it is necessary to strike the right balance between stakeholders and employee interests, the need to be profit-centric and society-focused. Even NFP organizations need funds and grants to operate and sustain over time, and similarly, corporates are also aware of their deep and abiding social commitment to society and societal values.