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Human Resource Management Practicing at Non-Profit Organization
What is Human Resource Management
Human resource management is the most famous and broad topic. A number of recognized researchers and professionally qualified figures had given a respectable explanation for HRM means. Out of these, some is
“HRM is concerned with all aspects of how people are employed and managed in organizations; and it can be defined as a strategic, integrated, and coherent approach to the employment, development, and well-being of the people working in organizations. Thus, HRM includes all aspects of employing people and managing them in organizations” (Armstrong,2014)(Opatha, 2021)
“The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concern” (Dessler and Pearson, 2013)
Understanding Non-Profit Organization
We can understand that simply, the organization’s (Formal) main objective is not earning profit and distribution of the profits among the shareholders. It does not mean Nonprofits can’t earn profits but their main focus is not earning the profit. This Condition is traditionally called the non-distribution constraint(Hansmann, 1987)
Most of the time we can see Non-Profit Organizations are self-governing
and staff involvement is voluntary.
Other than this we can identify most of the time Non-profit organization objectives are more meaningful to society's well-being. (Kanter and Summers ,1987)
What are the main differences that can identify in the HRM practice of
nonprofit organizations and profit-based organizations
There are several differences in the HRM (Human Resource
Management) practices of nonprofit organizations and profit-based
organizations. Some of the main differences are:
Organizational Structure: Nonprofit organizations typically have a
flatter organizational structure with fewer levels of hierarchy, whereas
profit-based organizations tend to have a more hierarchical structure with
multiple levels of management.
Recruitment and Retention: In nonprofit organizations, recruitment
and retention of staff are often more challenging due to limited resources and
lower salaries compared to the for-profit sector. Nonprofits often rely on
attracting employees who are motivated by the organization's mission and
values.
Performance Management: In nonprofit organizations, performance
management may focus more on the achievement of social impact goals and the
organization's mission rather than solely on financial metrics.
Compensation and Benefits: Compensation and benefits in nonprofit
organizations are often lower than in for-profit organizations due to limited
resources. Nonprofits may offer non-monetary benefits such as flexible work
schedules, more vacation time, or opportunities for professional development.
Work Environment: The work environment in nonprofit organizations
may be more collaborative and less competitive than in for-profit
organizations. Nonprofits often rely on a team-based approach to achieve their
mission, while for-profit organizations may have a more individualistic
approach to performance.
Training and Development: Nonprofit organizations may have fewer
resources to invest in training and development for their employees compared to
for-profit organizations. However, nonprofit organizations may offer more
opportunities for employees to gain experience in a variety of roles and
responsibilities.
Conclusion
When we look from the outside it's not shown very dept in HRM
functions in nonprofit originations but when we look closely, we can see it's a real challenge to maintain correct practices and the same energy within the HR
functions compare to other business structures. (Profit Focus)
HR managers faced real pressure when they come to arranging salary
and other benefits for staff and make retaining top talents within NPO
References
Burke, R.J. and Cooper, C.L. eds., 2012. Human resource management in the nonprofit sector: Passion, purpose and professionalism. Edward Elgar PublishingDessler, G. and Pearson (2013). Human resource management. Boston: Pearson, Cop.
Jegers, M. (2008) Managerial economics of non-profit organizations.Kanter, R.M. and Summers, D.V. (1987) Dilemmas of performance measurement in nonprofit organizations and the need for a multiple-constituency approach
Opatha, H.H.D.N.P. (2021). A Simplified Study of Definitions of Human Resource Management. Sri Lankan Journal of Human Resource Management, 11(1), p.15
Pynes, J.E. (2008). Human Resources Management for Public and Nonprofit Organizations. John Wiley & Sons.
HRM deefined as
ReplyDelete"The process of acquiring, training, appraising, and compensating employees, and of attending to their labour relations, health and safety, and fairness concerns" (Dessler, 2020).
When it is come to non profit organisation it is a challenging task. As long as it is employees can be manageable however if it is volunteers it is hard to manage them. Lack of commitment and engagement towards the job. At demotived volunteers may less moral and ethical work. Which I'll cause affect on organization reputation
You make an excellent point about the distinct issues that non-profit organizations confront when managing volunteers versus workers. Because volunteers are not often compensated for their work, motivating them and ensuring their dedication to the organization's vision and objectives can be tough.
DeleteNon-profit organizations may need to create initiatives to engage and retain volunteers in order to overcome these difficulties. This could include giving volunteers opportunity to learn new skills and gain experience that will help them in their personal and professional lives. Non-profit organizations can also foster a pleasant work atmosphere that recognizes and appreciates volunteer contributions.
Furthermore, it is critical for non-profit organizations to communicate clearly with volunteers about their roles and duties, as well as any expectations for their work. This can help to ensure that volunteers appreciate the significance of their contributions and are encouraged to support the organization's cause in the future.
Finally, non-profit organizations must acknowledge the need of preserving a positive community reputation. Volunteers can play an important part in this by acting as ambassadors for the organization and assisting in the development of strong relationships with stakeholders. Non-profit organizations can help to assure the longevity and effectiveness of their mission-driven activities by prioritizing volunteer engagement and retention.
Strategic HRM which based on improving the goals of these NPO,might however have a negative influence on the employees. What is your idea about that?
ReplyDeleteIt is possible that strategic HRM initiatives aimed at improving the goals of a non-profit organization could have a negative impact on employees. For example, if an organization seeks to increase efficiency and reduce costs, this could lead to job cuts or increased workloads for remaining employees. Similarly, if an organization seeks to improve performance metrics, employees may feel pressured to meet unrealistic targets, leading to stress and burnout.
DeleteHowever, it is important to note that strategic HRM initiatives can also have positive impacts on employees. For example, initiatives aimed at improving employee engagement, development, and well-being can lead to higher job satisfaction, improved performance, and greater commitment to the organization's mission.
Grate article, the following six personnel issues, as described in the Business Administration publication Human Resources Management, must be addressed by nonprofit organizations in order to achieve this goal: assessing personnel needs, recruiting personnel, screening personnel, selecting and hiring personnel.
ReplyDeleteAssessing personnel needs, recruiting, screening, and selecting and hiring individuals are all essential personnel challenges that non-profit organizations must handle in order to effectively manage their human resources. Organizations may guarantee that they have the right people in the proper roles, and that these individuals have the skills, knowledge, and experience required to meet the goals and objectives of the business.
DeleteNon-profit organizations can guarantee that they have the right people in the proper jobs, and that these people are devoted to the organization's mission and objectives, by addressing these personnel issues. This can help to improve the overall performance of the organization and its capacity to fulfill its goals and objectives.
The article discusses the importance of human resource management (HRM) in nonprofit organizations, highlighting the differences in HRM practices between nonprofit and for-profit organizations. The article points out that effective HRM can help nonprofits attract, retain, and develop talented employees, ensure legal compliance, and meet stakeholder expectations. The article also notes that HR managers in nonprofit organizations face real pressure when arranging salaries and benefits for staff and retaining top talent. Despite these challenges, nonprofits can adopt best practices in HR management and create a positive work culture.
ReplyDeleteTrue, effective human resource management is critical to the success of non-profit organizations. Non-profits rely largely on their staff and volunteers to carry out their goal, therefore efficiently managing these human resources is critical. Non-profit organizations confront unique HRM problems, including as limited resources, the requirement for high levels of commitment and enthusiasm from employees and volunteers, and frequent dealing with sensitive and emotional issues relating to the organization's mission.
DeleteHuman resource managers in non-profit companies must be able to attract, retain, and develop competent employees and volunteers despite typically low salary and benefits budgets. To motivate and engage employees and volunteers, as well as to build a positive work culture, they must have great communication and leadership skills. Furthermore, non-profit HR managers must maintain legal compliance and meet the expectations of stakeholders such as donors and the general public.
Hi Lahiru, very informative article. I would add that the work stress in the nonprofit sector is always lower than in the for-profit sector. This will definitely boost the happiness and wellbeing of the employees who work in the nonprofit sector.
ReplyDeleteWhile some studies have found that work stress in the nonprofit sector may be lower than in the for-profit sector, this might vary depending on the organization and the various responsibilities within it. Non-profit organizations have particular problems and stressors, such as limited resources, a high level of emotional involvement with the organization's objective, and a constant need to demonstrate the effect to stakeholders and donors.
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