Internal Environment Assessment in Reviewing Term Paper

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The two major differences that appear to impact exact replication seem to go to the very nature of nonprofits. The accountability of nonprofits is one of a zero sum game. Although balance sheets should always zero out, profit and loss statements for nonprofits are also a zero sum or loss figure. The logic here, as opposed to the private sector, is that a nonprofit showing profit means that the funding sources gave too much money and that during the next budget submittal, their grant size could possibly be reduced. Showing a loss is a positive incentive at these agencies in some respect. This will show that the agency cannot operate without more funding. The mindset is often just the opposite in for-profits and the strategic planning a long-term objective for finance certainly needs to be adjusted.

The other factor is the social service nature of nonprofits. This pervades not only the consumer-ship but the staff as well. Social service agencies are geared toward the fundamental benefit of their clients. Everything else becomes secondary. Staff is almost always given the same benefit, often to the detriment of the organization. Employees are often kept on, making more in salary through automatic increases, long after they have perhaps outlived their usefulness. Although education is often provided in abundance, much is wasted on training that will never be utilized. This has a negative impact on long-term strategies regarding staff retention and viability.

The latter aspect is also related to the lack of managerial expertise.

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Due to lower salaries less qualified or experienced candidates are often hired that do not have the depth of understanding necessary for long-term planning. It was also noted that much planning is relegated to volunteers who may or may not have the needed expertise in these areas, causing a problematic outcome for long-term goals. Related to this, massive amounts of volunteers often assist nonprofits so that they can do without some technological advances. There is an idea in nonprofits that the greater the consensus when planning, the better the plan will be. This is often not the case. Private sector counterparts would never leave the creation of strategic planning to unqualified volunteers. In for profit the idea is, you get what you pay for.

An interesting note that also makes nonprofits different from for-profits is an unfortunate societal fact. Gender difference seem to suggest that the larger proportion of female staff in many non-profits, especially in the administrative sector, are more likely to have very little corporate planning experience and not be able to act as capable guides for strategic planning. The authors suggest that hiring more females from the corporate community would be advisable. And while perhaps the right idea, the difference in salary scales would probably an anathema to any potential recruits. And as the authors also point out, seeking staff from the private sector may negate the "cause" consciousness that is often the paramount strategic scheme......

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"Internal Environment Assessment In Reviewing" (2007, November 07) Retrieved June 29, 2024, from
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