Finance and Management: Non-Profit Organizations
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This paper examines non-profit organizations, focusing particularly on profit measure criterion, and argues how it can benefit a hospital facility grappling with high costs and high expectations. In so doing, the paper looks at several of the broad characteristics that define non-profit organizations and suggests how an effective policy governance model and health care provisioning can be achieved simply by paying attention to the bottom line. The paper concludes that hospitals must understand that they have finite resources and that offering a few core services at a high level is infinitely preferable to running up a high debt offering numerous services at a low level.
From the Paper:"One of the strengths of using the profit measure approach is how it can succeed in ensuring that there is no confusion about who does what, what is expected when they do it, and what the final outcome(s) should be. According to Carver & Carver (2006), the properly-functioning Policy Governance Model will accentuate the following: self-imposed rules (for the board) vis-a-vis the delegation of authority and the method by which "board-stated" criteria will be utilized during the evaluation process; clarity in terms of who is responsible to whom; and a determination to see to it that board decisions (while open to possible change) are never undermined. While Carver and Carver do not touch upon it, the preceding governance approach clearly functions best when there is one easily quantifiable, easily transferable, means of measuring who is performing and who is not performing across the whole breadth of the organization's activities. The profit measure obviously does this and thereby sees to it that long-term goals are not compromised by short-term mismanagement in one department (or group of departments)."
Sample of Sources Used:
- Anthony, R.N. and Young, D.W. (2003). Characteristics of non-profit organizations. In Management Control in Non-Profit Organizations (pp.48-77). New York: McGraw-Hill Irwin.
- Anthony, R.N. and Young, D.W. (2003). The Management Control Function. In Management Control in Non-Profit Organizations (pp.1-24). New York: McGraw-Hill Irwin.
- Carver, John, and Carver, Miriam. (2006). The Policy Governance Model. PolicyGovernance.com. Retrieved March 31, 2007 from <http://www.carvergovernance.com/model.htm>
- Emanuel, Ezekiel J., and Emanuel, Linda M. (1996, January 15). What is accountability in health care? Annals of Internal Medicine, 124(2): 229-239.
Cite this Term Paper:
Finance and Management: Non-Profit Organizations (2008, April 07) Retrieved September 18, 2020, from https://www.academon.com/term-paper/finance-and-management-non-profit-organizations-102937/
"Finance and Management: Non-Profit Organizations" 07 April 2008. Web. 18 September. 2020. <https://www.academon.com/term-paper/finance-and-management-non-profit-organizations-102937/>