Governance & Leadership
A classic work that reveals a set of differences between nonprofit organizations and profit organizations, compares the characteristics of public and private organizations to find the significant differences regarding the factors environmental, the relation environment / organization and internal structures and processes, all of which results in a set of strategic implications in the definition of the purposes, objectives, and planning, selection of human resources, management and motivation, and in control performance measurement. (Hopkins et al. 2005)
As a complement to the previous study, distinguish a set of factors that differentiate the public and the private. Such factors include: the complexity and ambiguity of goals, organizational structure, the degree of formalization, and the attitudes and values relating to work. (Jehn & Bezrukova, 2004) However, studies by analyzing previously, the authors find that managers public companies considered having goals clear and unambiguous, therefore, which must play in certain periods of time, only these goals do not relate to maximize the value of heritage. (Tung, 2008)
In addition, managers Public companies do not feel that the work environment be informal in nature, but they estimate that there internal processes that companies differ private. Similarly, performing a meta-analysis study the results of organizational change in the public sector compared to private sector. (Jehn & Bezrukova, 2004) The results indicate that in both the private and public sector change organization can be beneficial, but in the sector public organizational readiness to change is slower, due to the formal structure, goals, administrative procedures and systems reward. Also in the private sector intervention which global effects positive individual behavior in the public sector the results generated for intervention in a process of change have greater variability. (Jehn & Bezrukova, 2004)
Leadership in three sectors: Public, private and voluntary
The central point is to recognize that companies nonprofit idiosyncratic differ in relation to for-profit firms. However, studies that have sufficient importance to this situation are relatively few. (Jehn & Bezrukova, 2004) Among the studies that have considered, in the form due, the difference between nonprofit organizations and profit executives emphasize that the profit and nonprofit organizations view conflict as undesirable, but executives nonprofit organizations understand that this is necessary and improves the quality of decision- decisions because it leaves out the needs of different groups. (Jehn & Bezrukova, 2004)
Instead, executive's for-profit organizations underestimate the importance of conflict and try to avoid it. These different perceptions of the conflict are explained by in nonprofit organizations involving multiple interests and the executives of these institutions understand and accept that those interests are expressed through conflict in decision-making. Similarly, in an important work in an attempt to elucidate some possible conditions for success in making decisions, we find that the profit organizations success or, rather, the effectiveness of the decision is associated with the existence of information and means to the implementation of the decision.
In contrast, in the nonprofit organizations success or effectiveness of the decision is linked to the right of the people to participate and also is important reaching agreements and the absence of intervention by senior management profit and for-profit firms. (Hopkins et al. 2005)
In Indeed, states that the difference between for-profit companies and nonprofit organizations profit lies in the way both types of entities develop and evaluate its mission, since nonprofit organizations in the purposes escape the strategic pursuit of profitability economy. It also suggests that, although management teams of nonprofit organizations and for-profit firms have a moral reasoning equivalent, the internal climate each other different teams. (Jehn & Bezrukova, 2004)
In fact, in firms with profit in the decision-making processes strategic members of the senior management team use higher levels of rationality and greater time to resolve their decisions, in contrast to happens in top management teams in the nonprofit organizations. (Tung, 2008)
Understanding the idiosyncrasies of the profit organizations and non-profit is an essential task to measure the effectiveness of such organizations and the impact of leadership style. Consequently, from a theoretical perspective is that institutions need to consider non- profit and, therefore, public organizations have a number of features that make it different from the private firms. (Ely, 2004)
These characteristics determine the impact of the relationship between leadership style and organizational effectiveness. Studies have linked the process of making decisions with the results of decisions have...
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