Strong planners versus weak planners: An analysis of nonprofit organizations

Abstract

Previous academic research found that two broad approaches characterize non-profit foundations when setting objectives. In the first approach, the business-like model, nonprofit foundations are inspired by for-profit organizations, and they adopt methodologies, tools, and practices typical of business management to better respond to social issues connected to their local dimensions. The second approach, the charity-like model, conversely argues that hybridization toward the market risks undermining the peculiarities of the nonprofit sector, thereby emphasizing the need of nonprofit foundations to be guided by the solidarity of interests that resides in the natural interdependencies of various members of society. To date, no study has fo-cused on the role of nonprofit foundation employees to understand the impact of a business-like approach on employee professionalism and job performance. Using responses from 277 employees of nonprofit foundations, this study investigates whether increased participation in planning and control tools increases employees' perceptions of the effectiveness of the grant process. The results show that a busi-ness-like approach to planning, if well-balanced and considered, can contribute to greater employee professionalism and lead to improved information clarity and project innovation.