managing in small buinesses and non profit organizations

The research paper and presentation assignment requires that the student conduct research from scholarly sources and writes a paper on any topic found in the text. In order to receive full credit, the paper will be 3 pages long and must be typed in  APA 6th edition 12-pitch, double spaced font.

The topic can be managing in small buinesses and non profit organizations. Must have 2 scholarly source regarding the topic  also do a power point  based on the paper.

Managing in Small Businesses and

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Nonprofit Organizations

Small businesses are growing in importance. Hundreds of small businesses are opened

every month, but the environment for small business today is highly complicated. Experts

believe entrepreneurial ventures are crucial to global economic recovery, yet small companies

can be particularly vulnerable in a turbulent environment. Small companies sometimes

have difficulty developing the managerial dexterity to survive when conditions turn chaotic.

Appendix A provides detailed information about managing in small businesses and entrepreneurial


One interesting finding is that managers in small businesses tend to emphasize roles

different from those of managers in large corporations. Managers in small companies often

see their most important role as that of spokesperson because they must promote the small,

growing company to the outside world. The entrepreneur role is also critical in small businesses

because managers have to be innovative and help their organizations develop new

ideas to remain competitive. Small-business managers tend to rate lower on the leader role

and on information-processing roles compared with their counterparts in large corporations.

Nonprofit organizations also represent a major application of management talent. Organizations

such as the Salvation Army, Nature Conservancy, Greater Chicago Food Depository,

Girl Scouts, and Cleveland Orchestra all require excellent management. The functions

of planning, organizing, leading, and controlling apply to nonprofits just as they do to business

organizations, and managers in nonprofit organizations use similar skills and perform

similar activities. The primary difference is that managers in businesses direct their activities

toward earning money for the company, whereas managers in nonprofits direct their efforts

toward generating some kind of social impact. The characteristics and needs of nonprofit

organizations created by this distinction present unique challenges for managers.27

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Financial resources for nonprofit organizations typically come from government appropriations,

grants, and donations rather than from the sale of products or services to

customers. In businesses, managers focus on improving the organization’s products and

services to increase sales revenues. In nonprofits, however, services are typically provided to

nonpaying clients, and a major problem for many organizations is securing a steady stream

of funds to continue operating. Nonprofit managers, committed to serving clients with

limited resources, must focus on keeping organizational costs as low as possible.28 Donors

generally want their money to go directly to helping clients rather than for overhead costs.

If nonprofit managers can’t demonstrate a highly efficient use of resources, they might have

a hard time securing additional donations or government appropriations. Although the

Sarbanes-Oxley Act (the 2002 corporate governance reform law) doesn’t apply to nonprofits,

many are adopting its guidelines, striving for greater transparency and accountability, to

boost credibility with constituents and be more competitive when seeking funding.29

In addition, because nonprofit organizations do not have a conventional bottom line,

managers often struggle with the question of what constitutes results and effectiveness. It

is easy to measure dollars and cents, but the metrics of success in nonprofits are much more

ambiguous. Managers have to measure intangibles such as “improved public health,” “a

difference in the lives of the disenfranchised,” or “increased appreciation for the arts.” This

intangible nature also makes it more difficult to gauge the performance of employees and

managers. An added complication is that managers often depend on volunteers and donors

who cannot be supervised and controlled in the same way a business manager deals with

employees. Many people who move from the corporate world to a nonprofit are surprised

to find that the work hours are often longer and the stress greater than in their previous

management jobs.30

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The roles defined by Mintzberg also apply to nonprofit managers, but these may differ

somewhat. We might expect managers in nonprofit organizations to place more emphasis

on the roles of spokesperson (to “sell” the organization to donors and the public), leader (to

build a mission-driven community of employees and volunteers), and resource allocator (to

distribute government resources or grant funds that are often assigned top-down).

Managers in all organizations—large corporations, small businesses, and nonprofit

organizations—carefully integrate and adjust the management functions and roles to meet

challenges within their own circumstances and keep their organizations healthy.

  • Good management is just as important for

small businesses and nonprofit organizations

as it is for large corporations.

  • Managers in these organizations adjust

and integrate the various management

functions, activities, and roles to meet the

unique challenges they face.

  • Managers in small businesses often see

their most important roles as being a

spokesperson for the business and acting

as an entrepreneur.

  • Managers in nonprofit organizations direct

their efforts toward generating some kind

of social impact rather than toward making

money for the organization.

  • Nonprofit organizations don’t have a

conventional bottom line, so managers

often struggle with what constitutes

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