A Review of Models for Measuring Organizational Effectiveness Among For‐Profit and Nonprofit Organizations

Abstract

Induced by unprecedented growth, invasion of for-profit organizations in the nonprofit domain, and high-profile cases of mis-T HE issue of organizational effectiveness (OE) has been one of the most sought out yet elusive of research subjects since the early development of organizational theory. Although it may be intuitively apparent that a measure of organizational performance would be readily available in management literature, quite the contrary is true. This study is based on research of the literature and identifies the most reliable model available that can measure OE among for-profit and nonprofit organizations.The need for research in cross-sector OE emerges at a time when at least three determinant trends are transforming the nonprofit landscape. First, a surge of academic interest in nonprofit organization performance has been observed (Speigel, 1990). A second noticeable trend is that, as a reaction to current pressures, nonprofits are haphazardly implementing management practices of the for-profit sector (Eisenberg, 1997). Finally, nonprofits are increasingly being

Comparing The Affects Of Management Practices On Organizational Performance Between For-Profit And Not-For-Profit Corporations In Southeast Wisconsin

“…But which management practice was the equivalent of a commonly accepted accounting practice? Furnham (2005) Unfortunately many commercial management theories have not always produced the best solutions for NPOs (Rojas, 2000). Speckbacher (2003) noted that one reason commercial concepts did not always succeed in the NPO sector was because the assumptions underlying the economic and organizational models were alien to the missions of many NPOs.…”

Market Orientation and Organizational Performance in the Nonprofit Context: Exploring Both Concepts and the Relationship Between Them

“…One of them, the competing values model (CVM) comprises the following four models: rational goal, open system, internal processes and strategic constituencies (the last one is also called "ecological", "human relations" or "participant satisfaction" model). Rojas (2000) explains that this CVM could be useful for comparing for-profit and nonprofits organizational performance. But for specific nonprofit performance analysis Herman & Renz (1998) point out the multiple constituencies model as the most useful, which should be combined with a social constructionism perspective.…”

Improving performance? The adoption and implementation of quality systems in U.K. nonprofits

“…Nonprofits have responded to the performance improvement imperative with a variety of approaches (Rojas, 2000). The research literature shows that some have focused on evaluating individual programs or projects, some have implemented self-evaluation or selfmonitoring systems (Ball, 1998;Boerner, 2004), and some have taken a broader organizational learning or capacity-building approach (Blumenthal, 2003;Cairns, Harris, and Young, forthcoming).…”