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Overviews of Nonprofit Organizational Development


The effective organization must be able to meet
today's and tomorrow's challenges. Flexibility and awareness are vital to
survive and prosper. A mission, vision, and a plan are essential to a nonprofit,
but its capacity to achieve its goals is a function of effective organizational
development. Organizations go through different stages of development in their
lifetimes. Many nonprofits are considering a fundamental change in
organizational structure, because of economic pressures such as increased
competition from business, Government, and other nonprofits.

How the organization development
relate to a nonprofit world. The Organizational Development is not as difficult
as it may sound with that term. But it is a very important aspect, and very
exciting dimension that, often times, gets overlooked in nonprofit management.


The Organizational Development of
nonprofit has to do with the five core elements:

  • Leadership;

  • Structure;

  • Systems;

  • Processes;

  • People.

..\..\Armine Arustamyan -
MGT 616.mpg

First of all, the OD has to do with
looking at the leadership of a nonprofit; the quality of characteristics; the
competency of those who is in charge both at voluntary level and paid staff
level. Nonprofits are governed by the board of directors. A director, officer
or incorporator of a corporation shall perform his or her duties as such,
including, in the case of a director, his or her duties as a member of a
committee of the board on which he or she may serve in good faith and in a
manner he or she reasonably believes to be in the best interests of the
corporation, and with such care as an ordinarily prudent person in a like
position with respect to similar corporation organized under this chapter would
use under similar circumstances.

Secondly, to look in the organizational
development is the structure of the nonprofit. Is non profit set up the most
efficient manor or way to reorganize: is the re-organization even necessary?
It is taking time to make sure that the
nonprofit is structured properly and set up for success. Is the re-structuring
is a must, what are the main questions to address at the strategic

1. How can we best describe the options for strategic

2. Is the climate right for strategic restructuring
and will restructuring improve the operations?

3. What pressures lead nonprofits to consider
mergers, consolidations, and joint ventures?

4. How can funders encourage nonprofits to undertake
restructuring without being alleged as applying pressure to do so?

5. What educational activities can funders promote to
encourage strategic restructuring activities such as mergers, consolidations,
and joint ventures?

The third area has to do with systems.
Those are the concrete tools that are in place to make sure that nonprofit
operate efficiently. The examples are the book-keeping systems, the database management
systems or the hiring systems.

The fourth area is more saddle, but
it is as important, if not more important of the rest, is the processes.
Processes have to do with the invisible, or so-called while space of the
organizational chart. It addresses the very critical aspects: the quality of
communication, trust and team work among the various individuals in the organization.
The above factors can be equally valid for the nonprofit with three staff
members or three hundred staff members. Understanding of processes and how to
make those better – better teamwork, better communications and more trust is
really significant.

The last area of Organizational
Development has to do with people. Are there right people on the boat, if not
what should be done to develop them and if not working how to invite them off the


Historically, organizations have
reorganized periodically in one or the other mode as environment, technologies,
and strategies changed. Organizations need to "work smarter" and
apply creative ideas. This requires sophisticated management tools. Therefore,
Organizational Development is important for all types of organizations – tax-exempt
or not.

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