Management assignment final - Introduction The widely used...

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Introduction The widely used definition for a Not for profit organization is, existence for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially. To be more precise a not for profit organisation do not have any owners. The not for profit sector is an important part of everyday life however there is very little that is known about how not for profit organisations (NPO’s) operate on the ground, in reality. Research has shown that only a few NPO’s are ran on a corporate style of management, or provide formal reporting on activities, which makes the sector a more difficult one to gather information on in order to assist with organizational developments and performance assessment. The main reason why NPOs are formed is to provide community service, whether it is in the form of charitable organisation e.g. Oxfam providing for poor or needy or an education sector providing education e.g. Manchester metropolitan university. NPOs are not always formed at such large size, smaller organisations such as youth clubs are also part of NPOs. In the following report, we will critically discuss the alternatives and challenges faced by NPOS (not for profit organisations) and propose how the organisation might best assess the performance of their activities. The not for profit organisation that we will discuss in this report is NHS. NHS is a UK based health service organisation set up by the government. Structure of NPOs and NHS There are three major structures of NPOs. Governance is the main central body which organises the whole structure of the company. They provide guidance and support for the organisation. In NHS as it is government service the UK government would be considered its governance. The second part of structure is program. Program contains the core principle of the organisation which in the case of NHS is to provide good health to everyone regardless of their wealth. The other things in program it contains the process of how the work is carried out. In NHS it provides health services to everyone in the UK and the third one is central administration. Central administration contains staff and facilities. NPOs tend to have least amount of paid staff in order to keep their cost minimum. However, NHS is such a large organisation their staffs vary from doctors, nurses to IT technicians. Devolution Challenges faced by NPO vary from organisation to organisation. It depends on their initial size, their popularity and the type of work they provide. One of the major challenges faced by NPOs is devolution. Usually in devolution, the work is controlled by local authorities and less by the governmental organisations, which means the government’s funds are greatly reduced in the process. On average 30% of the funds, for NPOs are provided by governmental funds reducing them could be devastating.
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