hso course work cont recap contrast for profit organizations (fpo) & not for profit...
TRANSCRIPT
HSO Course Work contRecap
Contrast For Profit Organizations (FPO) & Not for Profit Organizations Note HSO we study are non profit
organizations
Legal Aspects of Not for Profit HSO
Business side of the HSO is intertwined with the mission.
Putting financial/business goals ahead of service goals can be de-motivating and suck the spirit out of the organization-effect quality of service delivered
If you lose your soul and are unable to provide quality services, you will no longer be able to attract $- lose legitimacy You can run out of $ by being BAD at what you do no matter how
effective at fund raising and financial mgt. practices
HSO succeed in different ways, but fail in the same way-run out of money
Balance: frugal and effective in providing service Link $ and service quality
A MISER WITH A BIG HEART Bill Clinton
Recap (cont.): What we have learned
What is an organization
Formal and informal aspects of an organization Informal is difficult measure/understand Informal processes can help/hinder org. from reaching goals
Research/investigating organization requires acting like a detective & gathering/analyzing data from multiple sourcesValidity and reliability
Definition of HSO
Contrast FPO and HSOMission
Income
Product/Services
Profitability/legitimacy
FPO vs HSO (non profit)Mission: FPO: A business (also known as enterprise or firm) is an
organization engaged in the trade of goods, services, or both to consumers. FPO are privately owned and administered to earn profit to increase the wealth of their owners.
HSO: Non-Profit An incorporated organization which exists for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially
Income: FPO: Income generated from a for-profit business can be
used as business owners want.
HSO: Nonprofits receive money mostly through grants and donations, and also through service and memberships fees. Grants and donations must be used as the donor intends.
FPO vs HSO (cont.)Products/Services:
FPO: For-profits are free to develop many new avenues of business to boost their bottom line.
HSO: Income earned by a Not-for-Profit must be within the limits of its mission. A nonprofit cannot receive income from a regularly carried-on trade or business not related to its mission or it can lose tax-exempt status. For example, a nonprofit with the mission to help the
homeless find jobs might start a drug-addiction program, but can not use its funding to establish a Little League team
FPO ProfitabilityGOAL is profitability.
Income must be Greater than cost.
Survival comes from approval by market and efficient management of resources.
Compete head to head with other, like firms.
Profitability determines the VALUE of the firm.Value can be determined mathematically, i.e.
Market Cap (share price x # of shares)
Self Sustaining Loop: FPO
Input: ResourcesRaw Materials
Throughput:Manufacturing or Service Delivery
Output: Finished Good/Service exchanged
For $
$ For inputs
Note: Income > Cost= Self Sustaining System
HSO LegitimacyLegitimacy is a conferred status the HSO
earns and or is granted by entities and forces outside of the organization.
HSO also needs money to operate, does not receive $ (in most cases) from the end-user.
The currency of an HSO is “legitimacy.”
Those capable of providing resources must view the HSO as legitimate.
HSO: Exchange of Resources Not Directly Dependent on Output
Throughput: Service Delivered
Input: Clients
AcademicsExperts
$
Output:Transformed Client
Note: Beneficiary of service does Not provide Currency for new inputs
LegitimacyGovt.,Stakeholders
NOTE: We will discuss how HSO earn legitimacy in our hso/environment relations discussion
Systems Theory Provides a Holistic Theoretical Perspective
Open Systems Theory: Organizations
Borrowed from Biology- cell to larger system interaction
Systems theory: Organization is an open system that is part of a greater/larger system.
Provides comprehensive framework for studying organizational behavior (the what and the why).
Elements include inputs, outputs, feedback from the environment within which it operates.
What is a SystemSystem Defined: A functionally related
group of elements, A group of interacting, interrelated, or interdependent elements forming a complex whole.
Example: Digestive systemA system comprised of interrelated organ parts
responsible for breaking down and absorbing critical nutrients
Part of a greater system.
Systems Theory ThemesComplexity and interdependence
No organization is an island or controls its world-IMPORTANT
Open system: organization has permeable boarders Information, resources, energy passes in and out
Energy/activity/feedback is exchanged with the environment Actions in environment effect Org. behavior and visa versa Organizations are self regulating/responds to feedback
The whole is greater than the sum of its parts-Can not understand the entire organization by studying its parts
example is engineered system functions as prototype, but not when mass produced
Open System Model: ElementsInputs: Materials and resources necessary for
firm/system to remain functional.
Throughput: Transforming of inputs
Output: Finished good or service to be exchanged with the environment for new inputs
Environment/Feedback: information provided by the environment that effects the firm ability to continue operation.
Inputs: Materials
Resources
Throughput/core technology
Output: Finished
Good/Svc.
Environment:Output exchanged for
InputsFeedback of info.
Healthy open systems regularly exchanges feedback with its external environment and adjust inner-systems as needed.
ThermostatInput The gas or electricity which comes from power
company
Throughput thermostat monitors the temperature
(environment), thermostat sends a signal to our heater to turn on, the gas is burned, the fan turns on & blows warm air into the room, thermostat sends a signal to the heater to turn off.
Output Heat
Thermostat (cont.)Feedback - when the temperature falls below
the desired level, the thermostat sends a signal to heater; When the temperature reaches the desired level, the thermostat sends a signal to the heater to turn off.
Feedback comes from the environment.
Environment is a very important concept in system theory and when studying HSO
Inputs: Gas/Electricity
ThroughputSends signal to turn on,
Gas burned, fan turns onBlows warm air
Output: Heat
Environment:Temperature change
turning on or off of thermostat
.
Describe the following in terms of the System Framework Elements:
Oil/Gas Company (Exxon)
Restaurant
RHP
Inputs:
Throughput
Output:
Environment:
.
Inputs:
Throughput
Output:
Environment:
.
CLASS EXERCISE
RestaurantInput:
Cooks; waiters; hostesses; fresh food; kitchen equipment….
Throughput: process of taking orders and preparing meals
Output: Finished meal
Inputs: Cooks, waiters
Fresh food, kitchen Equipment, Accnt. Sys.
ThroughputTaking orders,
preparing meals, schedulingWaiter/hostess shifts…
Output:Finished Meal
Environment:
.
Inputs:
Throughput
Output:
Environment:
.
RHPInput: Teachers; admin.; education technology;
STUDENTS (in HSO people are Raw Materials)
Throughput: Educational process (includes classroom and
experiential learning)
Output: Educated/college prepared young men and
women
Forms of Feedback: RHPFeedback is
information provided by environment which causes the organization to make modification in some form.Note: not all
information is detected by the focal organization
Parents Satisfaction/
charitable giving
Colleges Acceptance Rates/Opinion of RHP quality
Future
Students
Application # changes
Economy Parents Propensity to spend/save
Competitors (Chadwick)
Reputation/
Attracting students
Examples Feedback
Inputs: Students, teachers, admin
Smart boards…..
ThroughputEducational process,
lesson plans, outdoor ed. extra curricular
Output: Educated, college prepared
Young men and women
Environment:Economic conditions, College acceptances
Community perception# of people applying
.
Next ClassRead: American Red Cross: under fire.Create a timeline of events beginning with the
viejas fire and ending with the wildfires of 2003. Include significant events such as the county supervisor
becoming involved, firings/hirings
Explain what is meant “give the shirt off your back; but put a knife in yours”
Were the San Diego chapter’s leaders good business managers?
What did the San Diego chapter do to restore legitimacy? (give 2+ examples)