1) How can you relate the problems shown in the documentary to the concept of government failure?

PA-501 Nonprofit Management Nihat Celik PhD. Michael J. Worth Nonprofit Management: Principles and Practice (2020, Sage Publications) Module 6 Managing Staff and Service Volunteers Motivation helps us to succeed. Both in public and private organizations it is important to have motivated employees. • Motivation is a key to employee productivity and performance • Motivation is defined as the drive or energy that compels people to act toward some goal. • Motivation is an enduring concern that is relevant to employees and employers, alike. • While for-profit organizations mostly depend on paid staff, NPOs employ both staff and volunteers. • In many NPOs, especially new organizations, the number of volunteers may exceed the number of paid employees. • Even though volunteers do not work for compensation, they also must go through the processes of human resources management (HRM), e.g., selection, training, evaluation, etc. • The blended nature of the NPO labor force, makes the HRM process more difficult. • Service volunteers: They are the people working voluntarily in the programs provided by NPOs. • They may sometimes serve as governing board members. • It brings the advantage of connecting the volunteers and community to the board in addition to their field level experience regarding programs. • However, they may favor a specific program, in which they currently serve or served in the past, and it may become a disadvantage (the loss of rationality in decision-making). For this reason, sometimes NPOs prohibit the service volunteers to be elected board members. • Policy volunteers: They are the people working voluntarily as board members or members of the specific boards (e.g., advisory board, scientific committee, etc.) • They are not involved in providing the services like the service volunteers; however, their knowledge and expertise may be useful to the organization (e.g., scholars, medical doctors, pedagogues, attorneys, etc.) Human Resources Management • Formal systems used to ensure the organization is applying people’s knowledge, skills, and abilities to achieve organizational goals. • Recruitment and selection • Training and development • Compensation and benefits • Evaluation and promotion • Dismissal • For-profit organizations produce capital intensive goods/services while NPOs mostly provide labor intensive services (e.g., tutoring). • As a result, it is expected that NPOs have high amount of personnel expenses / labor costs. • However, the high number of volunteers help to decrease the labor costs. Employment law • It applies to staff members; yet some of its aspects also may relate to volunteers • Wages, hours worked, and workplace safety • Prohibitions of discrimination (gender, race, ethnicity, color, age, disability) • There is no federal law against discrimination based on sexual orientation, however, many states have laws against it. • People are protected against discrimination at all stages of work life (not only in the hiring process) • Disparate impact: Even if there is no intentional discrimination, some policies (they may seem fair and neutral) may cause disadvantages for the protected group. If the policy is not job related, then it would be considered discriminative. • E.g., A university requires all applicants to the professor positions to complete the obstacle course. It is not a necessary qualification given the nature of the job and it may lead to discrimination against female or older applicants. Overview of Management Theories • Frederick W. Taylor – Scientific management • Emphasizes procedures and systems • Time and motion studies • People operate more like machines • Very strict division of labor and partioning of tasks • “Even a trained monkey can do it” • Workers are lazy so they must be motivated with carrots and sticks (financial incentives and threat of termination) Rewarding an employee increases motivation. • Moving assembly line, Henry Ford was a supporter of Taylor’s ideas and hired him. Since Taylor was highly pessimistic on human nature, he envisaged a very strong managerial control over them. Employees had to be observed and inspected by the management. In Taylor’s approach, because of their nature, human beings could only be motivated by incentives (e.g., piece-rate basis, higher pay) and sanctions (e.g. demotion, pay reduction and termination or fear of losing one’s job). • Hawthorne Plant Experiments (1920s, Illinois) • Influence of social and psychological factors • Attention of supervisors influenced worker performance • People change their behaviors when they know that they are being observed. If they have good relations with their supervisors, they become more productive (recognition, security, sense of belonging) The Hawthorne Plant of Western Electric Company. • Elton Mayo was a member of the team that conducted the Hawthorne Studies. This process led to increasing focus on human behavior and contradicted Taylor’s theory. What was the aim? • The Hawthorne experiments were conducted in the Western Electric Company’s production plant (near Chicago) in the 1930s. • Elton Mayo and Fritz Roethlisberger conducted the experiments. • The initial aim was to determine if better lighting would improve employee productivity. Abraham Maslow (1908-1970) Maslow’s theory, The Hierarchy of Needs, is important because it identifies other sources of motivation and shows that financial incentives are not the only incentives managers can rely on. Understanding Human Motivations Maslow’s Hierarchy of Needs: • We try to meet the lower-level needs before addressing higher-level needs. • For example, a person facing the risk of losing his/her job, may find innovation risky and avoids it. Abraham Maslow’s “Hierarchy of needs” • The hierarchy of needs: • Basic drives around existence such as the ability to pay for food and housing • Physical and psychological safety such as job security • Belonging such as friendship with peers and supervisors • Self-esteem such as recognition for a job well done • Self-actualization such as the innate pleasures of doing what one likes and finds fulfilling • https://www.topic.com/life-inside-the-rvs-of-silicon-valley Safety at home and workplace is also important. As human beings are in a sense ‘social animals’ , we need to build rapport with other people. That is why solitary confinement has always been a harsh disciplinary measure even at prisons. • Friendship is also important for human beings. It is for this reason organizations have Happy Hour, parties, dinners, birthday parties. Without friendship at the workplace, it is difficult to develop team culture at the workplace. Self-esteem and feeling of prestige or success motivate employees as well. We cannot explain why people voluntarily (without compensation) work at nonprofit organizations with the traditional (Taylorist) approach to motivation. However, Maslow’s self-actualization helps us explain it. Douglas McGregor (19061964) developed a new management theory which emphasized the human aspects of administration. McGregor’s Theory X and Theory Y • Theory X • Workers are not motivated • Theory Y • Workers are motivated • A manager’s duty is to eliminate the factors that lead to dissatisfaction with the job and also provide people more autonomy, decentralize responsibility and unleash human potential. McGregor’s Theory X and Y A totally different view of the human nature. As a result, the management style is not authoritarian. It allows employees to be creative and to take responsibility. Orders given in a disagreeable manner triggers defensive measures. McClelland’s Three Needs Theory • Managers are human beings too • Managers have their own psychological needs that influence how they manage subordinates • Need for achievement • Need for power • Need for affiliation Myers–Briggs Personality Types • Personality test based on the theories of the psychologist Carl Jung • Identify personal insights about perspectives and preferences • May help individuals understand their own behavior and that of others • Especially important is the distinction between the introverts and extroverts. • A manager may use the knowledge gained through the personality test or his/her own observations to find out if the person is an introvert or extrovert and assign jobs more suitable to the nature of the employee. Knowledge of yourself and your employees is important. When appointing a project-team leader, you may analyze the skills of your employees and find the right person. Frederick Herzberg in his motivation theory argued that salary and benefits are not enough to cause motivation. As “dissatisfiers” they decrease motivation if not met. However, even if they are met, without motivators, they fail to increase employee motivation. Herzberg’s Motivators and Hygiene Factors • Motivators (satisfiers; intrinsic motivational factors) • Individual’s feeling about the job itself • Hygiene factors (dissatisfiers; extrinsic motivational factors) • Individual’s perceptions of the work environment • Such as poor interpersonal relationships with a supervisor, unsafe work environment Motivators (Satisfiers) can be factors such as • Achievement • Recognition • The work itself • Advancement • Growth • Responsibility Hygiene factors (Dissatisfiers) • Company policies and administration • Relationship with supervisor • Interpersonal relations with coworkers • Working conditions • Compensation • Status and security Motivations of nonprofit staff • Congruence between personal and organizational values • Rewarding work • Monetary and nonmonetary compensation • Past research has identified that most of the public employees are motivated for working for the public and their values are distinguishable from the people working in the for-profit sector. • In addition; employee benefits, job security and opportunities for advancement can be considered as other motivators. • While it is possible to say that the NPO staff can also be motivated with public service motivation, because NPOs serve the public and communities, there are other factors such as • Family-friendly environments • Opportunities to take on more responsibility. • The lack of very rigid hierarchies in NPOs and higher chances for autonomy in contrast to the public sector, also contribute to the motivation in the NPOs. A manager’s duty in the NPOs is to provide the staff and volunteers opportunities for • Achievement • Recognition • Advancement • Growth • Traditionally, the approach to compensation in NPOs has ignored the importance of money as a motivating factor. • However, this started to change by time and the studies on the expectations of different generations contributed to this change. • Research suggests that the millennials (Generation Y, people born after 1980) are expected to place a higher emphasis on compensation when compared to the Baby-boomers (1945-1964) and Generation X (1965-1979). • The millennials may also place more emphasis on recognition and opportunities for growth (such as training programs). Life Cycles and Generations • Life-cycle theories • Workers’ skills and needs change over time • Youth • Look for opportunities to learn and be promoted • Middle-aged and older workers • Value job security and salary more • Generational differences shaped by • Economic conditions that prevailed during the formative years • Critical historical events that occurred within their lifetimes (9/11, 2008-9 recession). • The millennials are more open to change, innovation and personal growth. They are more prone to take risks and change jobs and sectors. • They also want to be satisfied financially. • Baby Boomers • Born between 1946 and the mid-1960s • Influences: Cold War civil rights movement • Committed to institutions and organizations • Motivated by praise, money, and position • Generation X • Born in the 1970s and 1980s • Influences: Fall of the Berlin wall, invention of the computer • May be distrustful of large organizations • Motivated by independence and involvement • Millennials (Generation Y) • Born after 1980 • Influences: Internet, 9/11 terrorist attack • Motivated by work that provides meaning and makes a difference • Greater emphasis on financial compensation Applying Theories to Managing the Nonprofit Workforce • Managers should be • Reflective about their own motivation • Know that what motivates them may not motivate others • Realistic about the extent they can motivate others • Managers should • Set clear and challenging goals • Think about salience of rewards • Be honest about availability of rewards • Treat people equitably and fairly Favoritism causes demotivation for other employees. Gender discrimination in compensation may cause inequity. • Managers should • Make work satisfying • Make work meaningful • Support life stages of staff and volunteers Managing Volunteers • Volunteer workforce statistics • 63 million Americans volunteer • Provide 8 billion hours of service • Volunteer time worth $24.15 per hour (The Corporation for National and Community Service (2015), Independent Sector (2017) ) Types of Volunteers • Spot–Casual and not repeated • Episodic–Time to time • Regular–Makes a regular commitment • Marginal–Encouraged or mandated • Virtual–Participates electronically • Vacation–Travel projects Spot volunteers cleaning a park People who volunteer tend to • Have diversity of friendships • More education • Intense religious beliefs • Participate in social groups Why people volunteer • Motivated by mission • Desire to advance a cause • Desire to repay for some benefit received • Altruistic reasons • Benefits received (such as training programs or management experience) Managers should not •Apply pressure •Set deadlines •Be overcontrolling Micromanaging • Assess the need of volunteers (training programs, supervisors to oversee their works) • Determine structure of volunteer programs (they may be given tasks based on their skills) • Develop volunteer job descriptions (so that you can attract the people with necessary qualifications) • Develop formal volunteer policies (evaluation, rules, standards) • Provide resources to managing volunteers (tools, books, computers, etc.) Recruit and hire volunteers as employees • Provide orientation and training • Set clear goals • Evaluate performance • Recognize achievement • Points of Light in the USA every year celebrates the National Volunteer Week and provides rewards to people and organizations. Many NPOs organize special events for the week, and they reward their volunteers in recognition of their efforts. Volunteer Management as a Career Field • Distinct specialty • Paid professionals • Training programs • University-based and online courses • Professional certification The Future of Volunteerism Old Volunteering • Based on connections • Sense of membership • Altruism • Collective good • New Volunteering • Not loyal to any organization • Choosy about what they do • Expect some personal benefit from the experience PA-501 Nonprofit Organizations and Government Nihat Celik PhD • Nihat Celik PhD. Michael J. Worth Nonprofit Management: Principles and Practice (2019, Sage Publications) Module 2 Overview of the Nonprofit Sector Diversity • Sharp Healthcare • $1,718,662,628 (Gross receipts) • $3,699,480,680 (Assets) • Ruling year: 1957 (The year the Internal Revenue Service granted the tax-exempt status) • Source: www.guidestar.org • ArtBusXpress • Funds transportation to the arts & sciences for the San Diego County Students (for field trips) • $57,624 (Gross Receipts) • $51,113 (Assets) • Ruling year: 2006 • Source: www.guidestar.org • Nonprofit organizations are very diverse. There are differences regarding their mission, the structure of the labor force (volunteers vs. professional employees), the amount of resources at their disposal, scope and legal and tax status. • Their legal status has an enormous impact on their activities and may shape the behavior of the donors. •All cultures have charity traditions and caring for the poor for example, has a long history across the world. However, the legal status and tax regulations vary from one country to another. • Some organizations, may seem like nonprofit organizations at first. However, this may deceive the people. • The legal status of the nonprofits is complex, due to different classifications, and nonprofit organizations may have for-profit affiliates. • For example, the National Geographic Society (1888) is a nonprofit organization. • Its mission is to support geographic exploration and education. • The National Geographic Partners is a for-profit organization which publishes the National Geographic journal and produces documentaries which are popular worldwide. • “National Geographic Partners is a joint venture between The Walt Disney Company and the National Geographic Society. We return 27% of our proceeds to the nonprofit Society to fund work in the areas of science, exploration, conservation, and education. This unique partnership creates a virtuous cycle of storytelling and exploration that inspires people to act, enlightens their perspective, and often provides the spark to new ideas and innovation”. https://nationalgeographicpartners.com/about/ • While it is sometimes a bit difficult to distinguish for-profit organizations from nonprofit organizations, to add to the complexity of the picture, the line between the nonprofit sector and government is getting increasingly blurry. • One third of the revenue of charitable nonprofits (33%) comes from the government grants and payments for services under the programs such as Medicare and Medicaid. • Some nonprofit organizations, especially in the healthcare sector, are government contractors solely. • As a result of these blurring lines and complexity, it is necessary to have a close look at the organizations in order to determine their status. • In fact, many of them have become hybrids that operate also in the for-profit sector. A Historical Overview of the Nonprofit Sector Moral foundation • It is built upon the Greek, Roman, Judeo–Christian values. Legal foundation • English law • Statute of Charitable Uses and the Poor Law of 1601 which regulated the relationship between the Church of England and British government and made the trustees of the charitable institutions more accountable. •Alexis de Tocqueville •Democracy in America (1838) •Americans form voluntary associations Religious establishments provided many services. • The rise of great wealth resulting from the Industrial Revolution led to the modern era • John D. Rockefeller • Andrew Carnegie • In the Gospel of Wealth (1889), Carnegie mentioned the responsibilities of the wealthy people toward the society. • The tradition set by the early industrialists influenced the future generations. Charity or Philanthropy? Charity • Giving to meet individual human needs or alleviate human suffering Philanthropy • Giving for a longterm investment in the infrastructure of society • The term voluntarism (a.k.a. volunteerism) is also used in the same vein. Robert Payton defines philanthropy as “voluntary action for the public good”. (1988) • However, there is a difference. While philanthropy could involve just a donation from afar, volu …
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