STRATEGIC  MANAGEMENT  FOR  THE  NONPROFIT ORGANIZATIONS Cover Image

Strategické riadenie neziskových organizácií
STRATEGIC MANAGEMENT FOR THE NONPROFIT ORGANIZATIONS

Author(s): Helena Majdúchová
Subject(s): Economy
Published by: Ekonomický ústav SAV a Prognostický ústav SAV

Summary/Abstract: Strategic management in nonprofit organizations is the process of selecting an or-ganization’s goals, determining the strategic programs necessary to achieve specific objectives in route to the goals, and establishing the methods necessary to assure that the policies and strategic programs are implemented. Strategic management is the for-malized long-range planning process used to define and achieve organizational goals. Because strategic-planning techniques have developed out of the experiences and situations of large business organizations, they have not been easy to apply in nonprofit organizations. At the same time, the diversity among nonprofits makes it difficult to determine which formal planning experiences and problems of one type of nonprofit might prove relevant to others. The analysed method of strategic management, that the article deals with, is a universal strategic method. However its realisation in particular conditions of in a particular organisation will depend on the workers’ skills, on the length of the planning period, values of the organisation, its organisational structure, financial power, etc. In spite of this difficulty to classify the nonprofit organizations, we proposes a generic framework which includes the following steps in the nonprofit organizations: Steps in the formulation and implementation of strategy in the nonprofit orga-nizations: • Goal formulation: value of managers, define the organization’s mission and estab-lish the organization’s objectives; • Identification of current objectives and strategy; • Environmental analysis: identification of strategic opportunities , threats, strengths and weaknesses; • Strategic decision making: develop alternatives, evaluate alternatives, select alter-natives; • Implementation of strategy; • Measurement and control of progress. The first step to creating a successful strategic plan is defining the vision. The vision represents the final point, a picture of the final status, and a vision of fulfilment of the values which are respected by the organisation. The vision creates the frame for mission forming. The mission of the organisation differences it from others with the same vision. The mission answers the question: What is the sense of the com-pany’s existence and what should the company deal with? Principal values are reflected by the vision of the organisation and its mission. These are also the fundamental pillars of its work and it is the part of the strategy. Creating the vision and its mission in non-profit organisations is transformed into its goals. These goals have characteristics with certain particularities: absence of top goal (in a form of profit), taking interests of many cliques into consideration, etc.Analysis of the environment is the next step of the strategic management, which is the synthesis of analysis’ information from inner and outer surroundings.

  • Issue Year: 51/2003
  • Issue No: 07
  • Page Range: 877-894
  • Page Count: 18
  • Language: Slovak