PLEASE REBUTTAL, RESPOND, AND ANSWER EACH OF THE FOLLOWING QUESTIONS OR POST STATEMENTS. MUST BE 150 WORDS (PLEASE), WRITE IN 3RD PERSON.ONLY ONE REFERENCE CAN BE USED FOR EACH ANSWER.
DQ 1
Lewis et al. (2001) describes three types of non-profits: philanthropic organizations, mutual benefit organizations, and advocacy organizations. These are organizations that are privately owned and tax-exempt, donors can make tax-deductible contributions. The stakeholders that are affiliated with NPO's generally have a common interest in the organization's mission and are advocate for seeing the organization become successful. The organization should identify the stakeholders who are affiliated with their organization therefore they have insight into their interests and acquire an understanding of the type of support they will provide. The outcome that stakeholders are endeavoring to achieve by associating with certain organizations generally is the desire to improve community situations, educational forums or impose demands that may affect consumer needs in relation to goods or supply and demand. The effectiveness of NPO's relies heavily on stakeholders and identifying their needs, agendas and specifics of relationship with public policies, community, and economic interest. The satisfaction of stakeholders has to be in alignment with the specific objectives and goals of the organization.
References
Herman, R., & Renz, D. (1998). Nonprofit organizational effectiveness: Contrasts between especially effective and less effective organizations. Nonprofit Management & Leadership, 9(1), 23-38.
Lewis, L.K., Hamel, S.A. & Richardson, B.K. (2001) Communicating change to nonprofit stakeholders. Management Communication Quarterly: McQ,15(1),5-41
DQ 2
Traditional for-profit organizations are often sustained through the market. Therefore, stakeholders that have a vested interest in seeing that the company grows, are compliant and serve as moral components that represent several, but not all, stakeholders. Nonprofit organizations can having varying stakeholders depending on the type of organization it represents. Manetti and Toccafondi (2014) argue that two types of stakeholders appear with respect to nonprofit organizations based on whether the organization depends on the market or on donors and volunteers. While considering organizations that rely on the market, for example the National Football League, the stakeholders, one could argue, will mirror that of a traditional business. On the other hand, the United Way depends largely on donations and volunteers. Previously, my wife was an advocate for United Way and helped recruit new donors for the organization while continuing to build relationships with previous donors. In these type of organizations, when profits are not the goal, accountability takes on more than merely economic significance (Manetti&Toccafondi, 2014). In this case, donors and volunteers are large stakeholders as previously mentioned. As stakeholders, donors have significant influences and nonprofit organizations will have to address those stakeholder interests. Departure of a donor's concern or stakeholder interest could result in not donating further to the organization. This could have devastating consequences for an organization.
Manetti, G., &Toccafondi, S. (2014). Defining the content of sustainability reports in nonprofit organizations: Do stakeholders really matter? Journal of Nonprofit & Public Sector Marketing, 26(1), 35-61. doi:10.1080/10495142.2013.857498
DQ 3
Similar to their for profit counterparts, nonprofit organizations have multitudes of stake holders with whom they have developed relationships and the question is to what extent should stakeholders exert their influence over these organizations.
It is to be noted that nonprofit organizations have internal stake holders inclusive of management, employees, Board members whose very livelihoods depends on the continued existence and success of these organizations. In addition many such organizations are providing a valuable service to people in their communities many of whom would experience great difficulties in functioning if these services were not available. Lewis, Hamel and Richardson (2001) underscores the fact that leaders of such organizations must understand the needs of their stakeholders and when such organizations are not doing well it is a good thing to inform them that their performance is waning so that they can invest in improving their management practices.
Under the circumstances the argument can be made that not only should some stakeholders exert their influence whenever there is any presumption that things are not what they should be, but they are duty bound to do so in order to ensure successful organizational outcomes. Further many such nonprofit organizations, earn absolutely no income and their survival depends on the donations of philanthropic individuals, and thus many associated with the organization should ensure that the organization remains successful. Herman and Renz, (1998) underscores the fact that stakeholders of nonprofit organizations should be concerned with the extent to which such organizations are achieving their mission and objectives.
While nonprofit organizations were not established to be profitable, they do have objectives to attain and a mission to fulfill and the achievement of its mission and objectives to a large extent is a function of how it is governed and managed and thus stakeholders who are close to the scene of the action should forever cast their eyes to ensure that the organization is functioning as it should be.
References
Herman, R., & Renz, D. (1998). Nonprofit organizational effectiveness: Contrasts between especially effective and less effective organizations. Nonprofit Management & Leadership, 9(1), 23-38.
Lewis, L. K., Hamel, S. A., & Richardson, B. K. (2001). Communicating change to nonprofit stakeholders. Management Communication Quarterly: Mac, 15(1), 5-41.
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Part 2
DQ 1
As the name suggests, nonprofit organizations, provide goods and services to citizens and residents of a community or the society at large without a profit motive. While the nature of the goods and services that some nonprofit organizations are at a fee for service, the surplus generated are not distributed to members of a board or stock holders as there are none but are ploughed back in the organization in order to increase and improve service delivery. Lawrence and Weber (2014)
In many instances many nonprofit organizations draw their funding from philanthropic individuals and organizations or solicit small dollar amounts from the general public during their annual fund raising activities. Under the circumstances in order to continue to provide services to the public there I a constant need to keep their funding sources alive.
According to Knox and Gruar (2006) nonprofit organizations, present very difficult and difficult challenges in managing stakeholder relationships particularly in times of changes in their various organizational environments. Accordingly, the leadership of such organizations need to place great emphasis on the salience of their various stakeholders.
Given that this is the case, the question arises as to what is the best or rather most appropriate strategy, for an NPO to manage the diverse and complex needs of its various stakeholders, so that the organization's funding cycle remains intact.
Knox and Gruar (2006) advance the Relationship Marketing approach for managing stakeholders. Drawing from a number of other scholars on the subject, they define the concept as an attempt at creating, and maintaining especially strong relationships with customers and stakeholders as a process oriented towards the long term in order to create and maintain customer satisfaction. While the authors did not explicitly infer from the argument that this is the case , but one can infer that the ultimate objective of the approach is one of creating and generating good will towards the nonprofit organization.
The question also arises as well, as to why the exploration of the approach and three arguments have been advanced by Knox and Gruar (2006) for the use of the management strategy. In the first instance, nonprofit organizations are increasingly willing to explore the issues of self funding and thus creating customer satisfaction and organizational good will is one way of achieving this.
Secondly we are living in changing times and the private sector although having a profit motive, is increasingly becoming more altruistic and many wish to develop their Corporate Social Responsibility Profile. In this regard, many are increasingly competing with nonprofit organizations for the decreasing pool of financial resources in order to provide services particularly in health, education and services to the elderly. Knox and Gruar (2006). This therefore represents a situation, where nonprofit organizations have to become extremely effective and efficient in managing scarce resources in addition to be seen in a favourable light in the eyes of the public.
Given the decreasing pool of resources from the private sector and government, nonprofit organizations have developed large organizations and are being managed by very competent professional managers who have recognized the need for new and improved strategies for the survival of organizations in the Nonprofit sector.
References
Knox, S., &Gruar, C. (2007). The application of stakeholder theory to relationship marketing strategy development in a non-profit organization. Journal of Business Ethics, 75(2), 115-135. doi:10.1007/s10551-006-9258-3
Lawrence, A. & Weber, J. (2011). Business and society: Stakeholders, ethics, public policy (13th ed). New York, NY: McGraw-Hill/Irwin.
DQ 2
NPOs have the difficult task of having to deal with diverse groups of stakeholders that have their own different needs. Dealing with the various stakeholder groups could become overwhelming to NPO organizations. Lewis, Hamel, & Richardson, (2001) explain that how the NPO organization decides to communicate with its stakeholders, will influence the ability to maintain two important factors, legitimacy and credibility. Finance is one of the most important elements in most for profit and non-profit organizations and reducing stakeholder conflict could ease the process of attaining funding from potential donors. Knox &Gruar, (2007) argue that more and more NPO are increasingly eager to control their funding destiny by creating effective relationship marketing strategies. However in order to achieve these strategies senior management must address these two issues prior to developing a new marketing strategy (Knox &Gruar 2007): first they must develop a rigorous approach to determining and agreeing stakeholder alliance throughout the entire organization, then must proceed to audit their current marketing practices and assess how effective they are.
Knox, S., &Gruar, C. (2007). The application of stakeholder theory to relationship marketing strategy development in a non-profit organization. Journal of Business Ethics, 75(2), 115-135. doi:10.1007/s10551-006-9258-3
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Lewis, L. K., Hamel, S. A., & Richardson, B. K. (2001). Communicating change to nonprofit stakeholders. Management Communication Quarterly: McQ, 15(1), 5-41.
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