For Profit v. Nonprofit

The vast majority of key business performance measures of for profit organizations do not apply to nonprofit organizations. As Miller & Jentz (719) explain, the key difference between the nonprofit organization and the traditional for profit organization is that the "over-arching goal" of the latter is to generate "profits" - a goal the former does not share given its emphasis on "service." This distinction makes it necessary for nonprofit organizations to develop specialized measures to help the entire organization achieve goals and, simultaneously, to assist staff members and directors or managers in improving efficiency and performance.

One area where nonprofit and for profit organizations are highly similar is in their need to use organizational leadership and resources to empower followers in ways that result in a highly motivated workforce that performs at high levels of efficiency in achieving organizational goals. Kouzes and Posner (13) identify five practices associated with exemplary leadership: (1) modeling the way; (2) inspiring a share vision; (3) challenging the process; (4) enabling others to act; and, (5) encouraging the heart. At their core, then, successful leadership in nonprofit and for profit organizations requires successful human resource strategies and management. This analysis will compare and contrast human resource leadership and strategies in both types of organizations. A conclusion will address the importance of human reso

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developers and keeping them in the company" (Microsoft 4). Many nonprofit organizations, in contrast, often rely on mentoring programs with college students or others who are involved in government volunteer programs like AmeriCorps. The National Mentoring Center (NMC) is designed to assist more than 5,000 youth mentoring partnerships annually in service programs that are delivered by nonprofit organizations (About 1). One CEO of a nonprofit agency maintains that the kind of individuals who are recruited for staff must be intrinsically motivated because of the "unique challenges of the nonprofit and human services world" (Best 1). Nonprofit organizations are often hampered in recruiting and retaining of staff by conditions not serving as barriers in the for profit world. One nonprofit industry analyst maintains these challenges to finding and keeping good personnel for nonprofit organizations are as follows: . Heavy workloads or caseloads . Little time and resources to reengineer work for greater efficiency and effectiveness . Staff burnout leading to high levels of turnover and absenteeism . Tight budgets . Resources spread too thin or require sta

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