Drishtikon: A Management Journal

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Human Resource Administration in Relation To CEOs in Not-for-Profit Organizations


Affiliations
1 Assistant Professor Anna University, Coimbatore, Tamil Nadu, India
2 Assistant Professor, M.A.M.B-School Siruganur, Trichy-621105, Tamil Nadu, India
3 Assistant Professor, .A.M.College Of Engineering Siruganur, Trichy-621105, Tamil Nadu, India
     

   Subscribe/Renew Journal


The purpose of this paper is to consider whether those non-profit organizations whichexhibit more similar characteristics to market organizations regarding the percentage of paid employees with functions similar to the ones in market organizations in relationship with total workers have a different model of human resource management in relation to their CEO than those organizations which exhibit fewer similarities to market organizations. The hypotheses proposed in this study have been tested using asample of 1,999 Spanish non-profit organizations. The results show that the CEOs of non-profit organizations with most similarity tofor-profit organizations will have a more formal employment relationship and a higher level ofeducation than the CEOs of non-profits with least similarity to for-profit organizations The practical implications of this paper imply that non-profit organizations which are evolving, in terms of their workforce, towards a high percentage of paidemployees or those who are already in this position will have to adapt to the way in which for-profitorganizations operate if they wish to achieve levels of effectiveness and efficiency to make them competitive in this sector One of the reasons for proposing this work is the small number of empirical studies trying to address systematically the relationship between the CEO and the characteristics of non-profit organizations.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Arago´n-Correa, J.A., Rubio-Lo´pez, E.A. and Casado-Mateos, M.A. (2004), Gobierno y gestio´n de lasorganizacionesdeltercer sector. Proyecto “El tercer sector y la economı´a social en Espan˜a enEspan˜ a, Fundacio´n ONCE, Granada.

  • Armstrong, M. (1992), "A charitable approach to personnel" , Personnel Management, December, pp. 28-32. Association Management (2001), "Personal goals persuade nonprofit executives to go back toschool" , Association Management, Vol. 53 No. 8, p. 30.

  • Austin, J.E. (1998), "Business leaders and nonprofits" , Nonprofit Management & Leadership,Vol. 9 No. 1, pp. 39-51.

  • Ballou, J.P. and Weisbrod, B.A. (2003), "Managerial rewards and the behavior of for-profit,governmental, and non-profit organizations: evidence from the hospital industry", Journal of Public Economics, Vol. 87, pp. 1895-920.

  • Barbeito, C.L. and Bowman, J.P. (1998), Nonprofit Compensation and Benefits Practices, Wiley,New York, NY.

  • Batsleer, J. (1995), "Management and organization" , in Davies-Smith, J., Rochester, C. andHedley, R. (Eds), An Introduction to the Voluntary Sector, Routledge, London.

  • Blackmore, A. (2004), Standing Apart, Working Together: A Study of the Myths and Realities ofVoluntary and Community Sector Independence, NCVO Publications, London.

  • Brandel, G.A. (2001), "The truth about working in not-for-profit" , CPA Journal, Vol. 71 No. 10, p. 13.

  • Brickley, J.A. and van Horn, R.L. (2002), "Managerial incentives in non-profit organizations:evidence from hospitals" , Journal of Law and Economics, Vol. 45 No. 1, pp. 227-49.

  • Butler, R.J. and Wilson, D.C. (1990), Managing Voluntary and Nonprofit Organisations: Strategyand Structure, Routledge, London.

  • Clarkson, K. (1972), "Some implications of property rights in hospital management" , Journal ofLaw & Economics, Vol. 15, pp. 63- 384.

  • Coordinadora de ONG para el desarrolloEspan˜a (2001), Directorio de ONGD 2000, Coordinadorade ONG para el desarrolloEspan˜ a, Madrid.

  • Cosier, R.A. and Dalton, D.R. (1993), "Management-training and development in a non-profit organization" , Public Personnel Management, Vol. 22 No. 1, pp. 37-42.

  • Defourny, J. and Monzo´n, J.L. (1992), E ´ conomiesociale: Entree´conomie capitalisteete´conomiepublique. The Third Sector: Cooperative, Mutual and Nonprofit Organizations,De Boeck-Wesmael, Bruxelles.

  • Fama, E. and Jensen, M. (1983a), "Agency problems and residual claims" , Journal of Law &Economics, Vol. 26, pp. 327-49.

  • Fama, E. and Jensen, M. (1983b), "Separation of ownership and control" , Journal of Law & Economics, Vol. 26, pp. 301-25.

  • Frumkin, P. (2001), "Are nonprofit CEOs overpaid?" , The Public Interest, Winter, pp. 83-94.

  • Handy, F. and Katz, E. (1998), "The wage differential between nonprofit institutions andcorporations: getting more by paying less?" , Journal of Comparative Economics, Vol. 26,pp. 246-61.

  • Hansmann, H. (1980), "The role of non-profit enterprise" , Yale Law Journal, Vol. 89, pp. 835-901.

  • Holmstrom, B. and Milgrom, P. (1991), "Multitask principal agent analysis: incentive contracts,asset ownership, and job design" , The Journal of Law, Economics & Organization, Vol. 7,Supplement, pp. 24-56.

  • Hudson, M. (1999), Managing Without Profit, Penguin, London. Jager, U., Kreutzer, K. and Beyes, T. (2009), "Balancing acts: NPOleadership and volunteering" ,Financial Accountability & Management, Vol. 25 No. 1, pp. 79-97.

  • Kalleberg, A.L. and Marsden, P.V. (2005), "Externalizing organizational activities: where andhow US establishments use employment intermediaries" , Socio-Economic Review, Vol. 3No. 3, pp. 389-415.

  • Kellock Hay, G., Beattie, R., Livingstone, R. and Munro, P. (2001), "Change, HRM and thevoluntary sector" , Employee Relations, Vol. 23 No. 3, pp. 240-55.

  • Langer, S. (1992), "Do you have a competitive pay plan?" ,Nonprofit World, Vol. 10 No. 1, pp. 30-2.

  • Muehrcke, J. (1997), "Nonprofit education is coming to your town" , Nonprofit World, Vol. 15 No. 2,pp. 36-41.

  • Palmer, G. (2003), "Employee relations in the voluntary sector" , paper presented at the BritishUniversities Industrial Relations Association Annual Conference, Leeds, 3-5 July.

  • Parry, E., Kelliher, C., Mills, T. and Tison, S. (2005), "CEO comparing HRM in the voluntary andpublic sectors" , Personnel Review, Vol. 34 No. 5, pp. 588-602.

  • Pauly, M.V. (1980), Doctors and their Workshops: Economic Models of Physician Behavior,University of Chicago Press, Chicago, IL.

  • Perry, T. and Zenner, M. (2000), "Compensation in the 1990s: shareholder alignment orshareholder expropriation?" , Wake Forest Law Review, Vol. 35 No. 1, pp. 123-52.

  • Preyra, C. and Pink, G. (2001), "Balancing incentives in the compensation contracts of non-profit hospital CEOs" , Journal of Health Economics, Vol. 20, pp. 509-25.

  • Rosen, S. (1982), "Authority, control and the distribution of earnings" , Rand Journal ofEconomics, Vol. 13, pp. 311-23.

  • Salamon, L. and Anheier, H. (1992), "In search of non-profit sector I: the question of definitions" ,Working Paper No. 2, Johns Hopkins University, Baltimore, MD.

  • Santoro, E. (1996), "Salaries up for non-profit CEOs" , Fund Raising Management, Vol. 27 No. 7, p. 8.

  • Schweitzer, C. (1998), "Corporate assets" , Association Management, January, pp. 30-7.

  • Tuft, B.L. (1986), "The greening of the nonprofit executive" , Association Management, Vol. 38No. 6, pp. 78-86.

  • Watad, M. and Ospina, S. (1999), "A program for strategic management development" , PublicPersonnel Management, Vol. 28 No. 2, pp. 185-96.

  • Wimberley, T. and Rubens, A. (2002), "Management support organizations and universitypartnership in nonprofit education, training and consultation" , The Social Science Journal,Vol. 39, pp. 129-36.

  • Wise, D. (1999), "Would the payment of market rates for nonexecutive directors strengthencharity governance?" , International Journal of Non-profit and Voluntary Sector Marketing,Vol. 6 No. 1, pp. 49-60.

  • Wish, N.B. and Mirabella, R.M. (1998), "Non-profit management education: current offerings andpractices in university-based programs" , in O'Neill, M. and Fletcher, K. (Eds), Non-profit Management Education: US and World Perspectives, Praeger Publishers, Westport, CN,pp. 12-22


Abstract Views: 328

PDF Views: 2




  • Human Resource Administration in Relation To CEOs in Not-for-Profit Organizations

Abstract Views: 328  |  PDF Views: 2

Authors

C Muthu Velayutham
Assistant Professor Anna University, Coimbatore, Tamil Nadu, India
R.V Palanivel
Assistant Professor, M.A.M.B-School Siruganur, Trichy-621105, Tamil Nadu, India
R Anbarasan
Assistant Professor, M.A.M.B-School Siruganur, Trichy-621105, Tamil Nadu, India
M Sinthuja
Assistant Professor, .A.M.College Of Engineering Siruganur, Trichy-621105, Tamil Nadu, India

Abstract


The purpose of this paper is to consider whether those non-profit organizations whichexhibit more similar characteristics to market organizations regarding the percentage of paid employees with functions similar to the ones in market organizations in relationship with total workers have a different model of human resource management in relation to their CEO than those organizations which exhibit fewer similarities to market organizations. The hypotheses proposed in this study have been tested using asample of 1,999 Spanish non-profit organizations. The results show that the CEOs of non-profit organizations with most similarity tofor-profit organizations will have a more formal employment relationship and a higher level ofeducation than the CEOs of non-profits with least similarity to for-profit organizations The practical implications of this paper imply that non-profit organizations which are evolving, in terms of their workforce, towards a high percentage of paidemployees or those who are already in this position will have to adapt to the way in which for-profitorganizations operate if they wish to achieve levels of effectiveness and efficiency to make them competitive in this sector One of the reasons for proposing this work is the small number of empirical studies trying to address systematically the relationship between the CEO and the characteristics of non-profit organizations.

References