Leading and Managing Nonprofit Organizations

This research study discusses the strategic stakeholder relationships in nonprofit organizations and the success factors of leadership and stakeholder management. It analyzes the gaps in leadership and management and their impact on stakeholders. The article also explores the stakeholder theory and its relevance to nonprofit organizations.

Running Head: LEADING AND MANAGING NON PROFIT ORGANISATION
Annotated Bibliography: Leading and managing NON PROFIT ORGANISATION
Student’s Name
University Name
Author’s Note

2
LEADING AND MANAGING NON PROFIT ORGANISATION
Introduction
The primary objective of this research study is to discuss the strategic stakeholder relationships
in nonprofit organizations. The success factors of leadership and stakeholder management in
nonprofit organizations would be discussed in this assessment paper. Based on the findings, the
researcher would undertake and analysis of the gaps in leadership and Management and explain
it in context to the stakeholder theory. In this context it deserves mention that the popular
stakeholder theory of economist Milton Friedman who described stakeholder relationship as an
aspect of capitalism where the stakeholders in any organization should only care about the
interests of their shareholders and thereby satisfy the bottom line only, has not been regarded as
relevant to the nonprofit organization in the changing business environment. On the contrary, all
the stakeholder groups associated with nonprofit organizations including beneficiaries, donors
and funding sources, employees and volunteers, the surrounding community as well as Federal
state as well as country administration are impacted by leadership and Management in nonprofit
organizations (Boyd et al. 2017). This is why the stakeholder theory of Edward Freeman having
considered in this assessment paper. This Teddy holds that the stakeholders of any company
might be anyone who is impacted by the operations of the organization and the operational
outcomes.
Stakeholder relationship and leadership management in nonprofit organizations
Reference 1: McClusky, J & Deborah, B. (2005). Managing Stakeholder Relationships and
Nonprofit Organization Effectiveness, Wiley Periodicals, Inc. 15(3). 299-315.
This is a primary research based on how stakeholder relationship management takes place
in non-profit organizations. The researchers have closely analysed the management practices

3
LEADING AND MANAGING NON PROFIT ORGANISATION
implemented in NPOs and how these strategies help in achieving organizational effectiveness.
The use of open ended interviews involving the executive members of NPOs helped the
researchers to understand and later incorporate in this article the details regarding the primary
stakeholder types of NPOs. The authors highlight that the expectations from categories of
stakeholders are different. Fulfillment of these expectations is directly associated with the nature
of relationship with respective stakeholder groups.
Reference 2: Kearns, K. P., Livingston, J., Scherer, S., & McShane, L. (2015). Leadership skills
as construed by nonprofit chief executives. Leadership & Organization Development Journal,
36(6), 712-727.
Freeman’s theory underpins that the stakeholders of the NPOs are those groups whose support is
invincible for the existence of the organization. the authors of this article analyzes corporate
environment as an ecosystem developed with related stakeholder groups all of whom need to be
considered and whose contributions are essential for the growth of the organization. In context to
nonprofit organizations, the research findings of the article identifies that the beneficiaries are an
important stakeholder category where people as well as groups who are actually affected by the
services and the goods created allocated or distributed by the nonprofit organizations.
Reference 3: Stewart, A. J. (2016). Exploring nonprofit executive turnover. Nonprofit
Management and Leadership, 27(1), 43-58.
Research Trend and outcomes of this article show that project managers of nonprofit
organizations, on most instance is rarely associated with the outcome of the projects. Speaking of
NPOs, the authors argue that corporate terms it can be argued that the fundamental Exchange
with their customers, who are the beneficiaries in this instance, is weak. One of the primary

4
LEADING AND MANAGING NON PROFIT ORGANISATION
reasons behind this is that financial exchange does not take place in this instance and sustained
stakeholder relationship with the beneficiaries will not be able to impact the growth of nonprofit
organizations. Summarizing the article it can be highlighted there is a gap in leadership
management in nonprofit organizations.
Reference 4: Boyd, B., Henning, N., Reyna, E., Wang, D., Welch, M., & Hoffman, A. J. (2017).
Hybrid organizations: New business models for environmental leadership. Routledge.
Donors and funding sources are the people who found for the operations of nonprofit
organizations. While discussing new models of leadership, the researchers discuss the function-
ability donors and funders of the NPOs. This group of stakeholders derives economic benefits
from the brand awareness gained on account of their relationship with nonprofit organizations
(Herman, 2016). Nevertheless, since there is no important stakeholder group supervising the
impact on beneficiaries, the project leaders of nonprofit organizations less concerned with the
long term benefit of their projects on the dedicated to group of beneficiaries. Most of the
nonprofit organizations allow servant leadership among employees.
Reference 5: Herman, R. D. (2016). Executive leadership. Nonprofit leadership and
management, 167.
Researchers in this article have been constantly complaining about the sustainable growth of
employees or volunteers associated as stakeholders of nonprofit organizations. The regional and
localized nonprofit organizations are not able to provide large career scope to their employees
even in the respective sector. This is why the rate of attrition is high. In this context it can be
summarized that the lack of emoluments for recognition of the services of volunteers and
employees has been identified in the article as a major leadership gap existing in nonprofit

5
LEADING AND MANAGING NON PROFIT ORGANISATION
organization. The nonprofit organizations which are a global brand or a popular face over the
country actually implement good employee management practices.
Reference 6: Ferkins, L., Shilbury, D., & O’Boyle, I. (2018). Leadership in governance:
Exploring collective board leadership in governance systems. Management Review, 21(3), 221-
231.
The federal, state as well as country administration also has a crucial role to play as stakeholders
to nonprofit organizations. This is the focal point of discussion in this article. Government is
undoubtedly an important stakeholder for the nonprofit organizations. However, researchers have
also raised questions regarding involvement of government representatives in nonprofit work. On
many instances government funding are wasted or improperly utilized by nonprofit organizations
and there is no representation from the end of government to gather feedback from the intended
beneficiary groups associated with the project activities of nonprofit organizations.
Reference 7: Mitchell, G. E. (2015). The attributes of effective NGOs and the leadership values
associated with a reputation for organizational effectiveness. Nonprofit Management and
Leadership, 26(1), 39-57.
Traits of nonprofit leadership are evident in this research article. The author suggest that the
higher management of nonprofit organizations should take initiative to furnish periodical reports
of the various kinds of activities that we have undertaken within that time period and also report
the sustained impact of their activities on the dedicated community groups. We should have an
indicator approach towards the government by supplementing such reports and documents. This
will help the country administration to validate their importance and the effectiveness of their

6
LEADING AND MANAGING NON PROFIT ORGANISATION
work towards the society so that they can decide how they might or how they should help the
respective non-profit Organization in various ways.
Reference 8: Muller, R., & Turner, J. R. (2017). Project-oriented leadership. Routledge.
It is evident in the research evidence of this article that out of 1200 nonprofit projects, working
over community causes and health and hygiene development issues in South Africa Zimbabwe
and other smaller nations of Southern Africa only 30% have been found to be confident about the
leadership abilities to lead a team working with the the respective beneficiary groups.
The uncertainty regarding work is a major factor because of why stakeholder contentment is an
issue with nonprofit organizations. Another big leadership gap in nonprofit organizations is that
none of the team leaders have any formal succession plan for their own or the other leadership
positions.
Reference 9: Prentice, C. R., & Brudney, J. L. (2018). Are you being served? Toward a typology
of nonprofit infrastructure organizations and a framework for their assessment. Journal of Public
and Nonprofit Affairs, 4(1), 41-58.
It is necessary to highlight some changes in nonprofit practice that might address some of the
leadership and management gaps in similar organizations. In the first place, it has been observed
in recent times that potential funders are currently showing interest in leadership development of
nonprofit organizations. The researcher argues that it might be the outcomes like failure in
potential projects where serious funders had invested money. The funders, nowadays, are not
only interested to remain as passive stakeholders for any philanthropic project of nonprofit
organizations. Rather, they want to work as active stakeholders involving themselves in The
Definitive projects so that they can trace the outcome of the projects also.

7
LEADING AND MANAGING NON PROFIT ORGANISATION
Reference 10: Subramony, M. (2017). Service organizations and their communities: perspectives
and new directions for management research. Academy of Management Perspectives, 31(1), 28-
43.
The above discussed trend of leadership skill development has been observed to some extent in
nonprofit organizations operating in Asia Pacific region and to some extent in Middle Eastern
region, in this article. The outcomes of these organizations show that the nonprofit companies
investing in leadership development outperforming those which do not invest in development of
leadership skill. This is the reason by in almost all Nations there are specific and few handful of
nonprofit groups that lead the activities on a global or National scale. The smaller Agencies
operating on local or regional bases find it very hard to promote them to higher standards.
Conclusion
Leadership gap is one of the major impediments in development of nonprofit organizations. This
assessment papers successfully portrays that involvement of stakeholder groups from all
hierarchical levels are very important in nonprofit organizations. The leadership and
Management issues in nonprofit organizations have also been studied in depth in order to
highlight that the leadership gaps impact stakeholders of all categories associated with nonprofit
organizations. Lack of perceived development and list growth opportunities give way to high
turnover rate. This report has established that leadership turnover creates great turmoil which
was the impact of projects undertaken. This is why training, skill development and professional
attitude of organizational leaders in nonprofit organization have to be planned so that they are
able to exhibit positive leadership behaviors.