Intro to third sector, non-profit organization, look at the assignemnt Essay

Intro to third sector, non-profit organization, look at the assignemnt and you will understand - Essay Example er to ensure that their performance is in complete alignment with the needs of the society, there is a need for an effective and transparent governance framework in organizations. This need for effective governance in NPOs gave rise to a new and rigid concept termed as ‘social governance’ which caters to not only ensure the legitimacy of the organization but also takes into consideration the expectations of shareholders as well as emphasizes on reducing he conflict between the stakeholders in order to enhance the decision making process thereby forming a good management – board relationship. Several definitions of governance have been explained by modern day researchers. Some define it as the characteristic of the board, the management and the relationship between them. Whereas others explained that, it is a system by means of which organizations are controlled and directed (Anheier, 2005). According to Cornforth (2010), governance can be defined as the framework which ensures a definite direction towards objective, proper control and accountability of an organization. It influences the performance of an organization which is very closely interlinked with the idea of stewardship. In light of these definitions, a NPOs governance framework can be explained in a way, where the locus of the governance is the board, and that of the management is the chief executive officer (Anheier, 2005). In a NPO, the board holds the key responsibility for governing the fact that the organization performs staying true to the mission thereby ensuring overall welfare of the organization itself. It is responsible for generating important sources of support in terms of finance thereby playing a boundary spanning role in the open system aligning the nonprofit to its community and... Personal Reflection Having explored well researched sources like Verschuere & Beddeleem (2013), Anheier (2005), Cornforth (2010), Worth (2013) and Barros & Nunes (2007), covering the topic of discussion, it can be concluded that my personal reflection is in complete alignment with the issues covered in the literature. As has been explained by Barros and Nunnes (2007), effective governance is an essential factor which contributes significantly to the performance of the nonprofit sector. Several variables attribute to the performance of a CEO of a nonprofit organization such as the organization performance variables, individual variables as well as the board composition variables. The presence of a robust governance framework will ensure that the organization is not being dominated by a single personality thereby preventing any issues of conflict of interests between the stakeholders. The author also concluded that a CEO pay and incentives also affect the performance of the organization. Having worked for a nonprofit organization (educational sector) for 2 years, I can say that robust governance framework is of utmost importance to the performance of the organization. The governing board and the management should have a clear understanding of the intricacies outlined under the governance framework in an NPO in order to ensure a smooth performance thereby satisfying the needs of both the organization and stakeholders. The governing board should cater to reduce any probability of conflict of interest between its stakeholders as it might prove to be an obstruction in the path of the organization’s progress. In addition to that, institutional governance being a traditional form of governance role in an NPO is a key factor ensuring proper decisions on polices and strategies, proper performance evaluation, management and accountability (Campbell & Hushagen, 2002).