2 Responses needed in -12 Hours Please-Operations Management homework help
The student must reply to at least 2 other classmates’ threads. Each reply must be a minimum of 400 words. Each group must then collaborate to enhance each other’s work and to develop a group response that synthesizes the individual replies. Please check the Grading Rubic very Strictly.
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Running head: DB1 – Chapter 1 Question 2
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DB1 – Chapter 1 Question 2
Discussion Board 1 – Chapter 1 Question 2
Liberty University
What are some differences that one might anticipate among the expectations of stakeholders for a nonprofit organization versus a for-profit business? Do you believe nonprofit managers have to pay more attention to stakeholders than business managers?
Organizations come in various shapes and sizes; from the small privately-owned and operated businesses to major corporations, domestic to international, and some that have parts of their organization in both the domestic and international arenas. Regardless of how they are organized, none of them are an exact match of the other. These organizations can be categorized many ways as well, from the auto industry and grocery store chains to nonprofit organizations. Even when the organizations fit into the same category, they all have their nuances that make them unique. All of these organizations provide one or more services to their customers in order to make their business successful. Advances in technology, changes in the market, needs and desires of the customer, and expectations of the stakeholder will change over time. As with the variations in organizations, the needs and expectation of every customer are different. The customer need may be based on their desires to improve their lives or that of their family, or combination of many factors; but it is certain that each person has their own expectations out of an organization. The expectations that one may anticipate from a for-profit business and for a nonprofit business are going to have many differences, especially in their management strategies and financial resourcing.
Management Strategies
Management strategies for nonprofit and for-profit organizations can be very different. The manager of a for-profit organization is looking to make changes and run their business in a manner that is in line with the desires of the customer, which helps build the revenue and gets their products sold. “In businesses, managers focus on improving the organization’s products and services to increase sales revenue. In nonprofits, however, services are typically provided to nonpaying clients, and major problem for many organizations is securing a steady stream of funds to continue operating (Daft, 2016, p.14).” They will focus their attention to making changes within the organization that can help generate more money for their stakeholders and the organization. They will also align their marketing strategies with the current trends and utilize social media to get their products in front of the desired customers. “Managers in nonprofits direct much of their effort toward generating some sort of social impact (Daft, 2016, p.14).” Nonprofit organizations managers will use their efforts to gain support for their particular cause, get volunteers involved with efforts in line with the cause, to gain donor support, and as a means of raising donations. Much of their marketing strategies will be in line with these same efforts. Organizations like Doctors Without Borders and the American Red Cross have to work with other countries and sometimes other organizations in order to coordinate their efforts. Many of these organizations not only depend on the volunteers, but the logistical efforts and supplies necessary to keep their organization running. “Nonprofit organizations use social media to streamline their management functions, interact with volunteers and donors, and educate others about their programs and services (Waters, Burnett, Lamm, & Lucas, 2009, p. 102).” Social media adds and websites are an excellent way of promoting the organization and the various activities they have been a part of in the past. It also helps with improving the level of financing they receive.
Financial Resources
Financial resourcing is different from organization to organization, and whether the organization is domestic, international, or nonprofit. For-profit organizations may solely generate their revenue from the products they sell, and some may use a combination of donations and items sold. Organizations that are in the medical or technology fields are unique as they may receive donations from private citizens, other organizations, or the government in order to help develop new and improved products or to finance ground breaking research. In 2012, “The General Motors Foundation announced it is donating $400,000 to the Barbara Ann Karmanos Cancer Institute, bringing to nearly $6 million the foundation’s support over the last 15 years (Entertainment Close-up, 2012).” Organizations have to take many factors into consideration before deciding to take their business overseas. International businesses need to consider conversion rates, tariffs, shipping fees, and many other factors into their financial resourcing plans. An organization may want to accept donations from an overseas partner, but may not be allowed to based off of governmental or ethical standards. Nonprofit organizations are the only type of organization that will receive their primary financing from donations and government funding. “Financial resources for government and charity nonprofits typically come from government appropriations, grants, and donations rather than sale of products or services to customers (Daft, 2016, p.14).” Regardless of the type of organization that a person works for, it is important to pay close attention to the stakeholders.
Attention to Stakeholders
Stakeholders in an organization play a major role in how a manager conducts their business. According to Daft, stakeholders are any individual or group that has a stake in the performance of the organization. This could be anyone inside or outside the organization. For-profit and nonprofit organizations both have to pay close attention to their stakeholders as they are going to have a major influence on the way a manger conducts their business. A for-profit manager will have to make changes to their products based off of the needs of their consumers and the particular direction the company is heading, but the need for their products can be the main reason a stakeholder keeps coming back. A nonprofit manager has to pay more attention to their stakeholders as they have a tougher sell. They may not have a specific product that keeps them coming back time after time, they usually working towards a cause that helps improve the lives that it touches. They have to work with different personalities from many organizations, both government and private, to gain the support and raise the financing necessary to keep their organization running. Many nonprofit managers will have to understand the differences of how business is conducted in various parts of the world, as they will need to work with international organizations to build relationships and garner support for their cause.
Conclusion
For-profit and nonprofit managers will do what they believe is best for their organization within the limits of their abilities. Expectations from the stakeholders are going to be different in each type of organization, especially in their management strategies and financial resourcing. “Without the guidance of good leaders a nation falls. But many good advisers can save it (Proverbs 11:14 NIRV).” As long as the managers of organizations take into consideration the needs and desires of their stakeholders, they are likely to be successful.
References
Daft, R. L. (2016). Organization theory & design (12th ed.). Boston, MA: Cengage Learning. ISBN: 9781285866345.
Entertainment Close-up (2012). Business insights: GM Foundation Makes Donation to Cancer Research.
http://bi.galegroup.com.ezproxy.liberty.edu/global/article/GALE%7CA278295059?u=vic _liberty
Waters, R. D., Burnett, E., Lamm, A., & Lucas, J. (2009). Engaging stakeholders through social networking: How nonprofit organizations are using Facebook. Public Relations Review, 35(2), 102-106. doi:10.1016/j.pubrev.2009.01.006
