NGOs across the Globe and their Growth

Question:

Discuss about what is a Non-Government Organization, how is it different from Public Organizations, the Impact of NGO’s on the decisions of the associated Government.

There has been an unusual growth in the number of Non- Governmental Organizations in the past few years. The Non- Governmental Organizations have not only grown in numbers but have also witnessed growth in terms of organizational size and the reach. Non- Governmental Organizations have witnessed substantial growth and have been more successful in developing countries as compared to the developed and under- developed nations. Non- Governmental Organizations are usually dependent upon donations and voluntary human support for carrying out its operations. Non- Governmental Organizations utilize the entire amount received by them in the form of donations or support in the welfare and improvement of the economically backward communities. The Non- Governmental Organizations not only help the communities by providing them monetary support but also help them by offering them human support in the form of educational facilities and medical facilities. However, with the increase in the popularity of Non- Governmental Organizations and the rapid increase in their size, the operational complexities of these organizations have increased to a large extent (Brown, 2014). Therefore, the need of strategic management has aroused for efficiently managing stakeholders and the financial resources. Developing positioning strategies have also become complicated, which calls for strategic management for the growth and survival of Non- Governmental Organizations.  

The paper shall find the gaps in the literature and improve the understanding of the trends in the literature in order to provide a systematic literature review on “strategic management in Non- Governmental Organizations. The paper shall comprise of the objectives, review questions and the main findings along with the main themes and the future research proposal. The systematic literature review shall help the researcher in future research by providing the researcher with sufficient information to analyze and derive appropriate conclusions. 

The literature review emphasizes upon the Non- Governmental Organizations across the globe that provide aid in the form of financial and human support to the vulnerable individuals. The paper shall emphasize upon the Non- Governmental Organizations that help the vulnerable communities with the help of volunteers associated with the organizations. Secondary research methodology shall be used wherein; articles related to the research topic shall be analyzed that are available in Google Scholar. However, limitation of space has resulted in the exclusion of the following:

• Religious organizations
• Inter governmental organizations
• Professional organizations
• Community- based organizations
• Treaty- based organizations

Strategic Management in NGOs

Along with the above exclusions, the paper has also excluded the Human rights Non- Governmental Organizations, Peace Non- Governmental Organizations, Environmental Non- Governmental Organizations and Governance Non- Governmental Organizations. The paper focuses upon the several articles related to strategic management in Non- Governmental Organizations and the problems associated with them. The paper considers articles easily available over Google Scholar after the year 2012. The literature search resulted in the availability of approximately 100 articles on the research topic amongst which 25 articles were chosen at random. Approximately 96% of the chosen articles have supported the need and importance of strategic management in Non- Governmental Organizations whereas; mere 4% of the articles have criticized the need and importance of strategic management in Non- Governmental Organizations.  The paper covers the following important aspects related to Non- governmental organizations:

• Relationship of NGOs with the donors
• NGOs and Government relationships
• NGOs coordination
• NGOs accountability
• Strategic impact of NGOs

The main aim of the paper is to evaluate and analyze the information available regarding the importance of strategic management in Non- governmental organizations and the problems associated with it. The paper focuses on the causes that have led to the growth and development of Non- governmental organizations and the increase in the need of proper strategic management in these organizations.

The systematic literature review is aimed at finding appropriate answers of the following questions:

• What are the problems associated with the strategic management in Non- governmental organizations?
• What are the after- effects of applying strategic management in Non- governmental organizations?
• What is the link between the performance of the Non- governmental organizations and strategic management?

According to Worth (2013), strategic management is the formulation and implementation of goals and objectives by the top management of an organization for the betterment of the organization. These are the decisions taken by the top authorities regarding the use of available resources and the organizational environment, on behalf of the actual owners. Strategic management is capable of providing an appropriate direction to the organizational members, which enables them to work towards the achievement of the common objectives. Strategic management usually involves developing models, which enables them to take appropriate decisions. It involves environmental analysis, scenario planning, measuring and controlling implementation and final evaluation.

On the other hand, Galaskiewicz (2016) mentioned that the organizational activities and processes of NGOs have gone through a drastic change over the past few decades. This has added to the importance of strategic management in Non- governmental organizations. There have been several changes in the international laws and politics, technologies, globalization, availability of natural resources, climatic conditions and socio- cultural changes. This has resulted in the need of strategic management in Non- governmental organizations. The Non- governmental organizations face several issues in terms of insufficient funds, lack of volunteer support, lack of support from the donors, lack of support from the corporate and inappropriate management. Strategic management provides solutions to more or less all the issues faced by the Non- governmental organizations and aids them in scaling up their world- wide operations.

Role of Donors in NGO Growth

The systematic literature review focuses on the link between the Non- governmental organizations and the donors associated with them. The NGOs are highly dependent upon the donors for carrying out their daily activities. Several researchers have criticized the unfair relationship between the Non- governmental organizations and the donors. According to Renz (2016), there is interdependence between the Non- governmental organizations and the donors. The Non- governmental organizations require donors for their financial help whereas the donors require Non- governmental organizations for gaining recognition. However, recognition is gained only when the donors ensure that they are associated with successful organizations. The NGOs have faced several problems in the past, which were associated with the international politics. The Non- governmental organizations have been successful in establishing sound relationships with the globally recognized institutions such as World Bank and the World Trade Organization.

The Non- governmental organizations have been always motivated by the World Trade Organizations for participating in the process of policy- making and in the process of handling disputes, which were directed towards safeguarding the under- developed and developing nations. According to Bryce (2017), there have been several limitations to the powers of the Non- governmental organizations while impacting the World Trade Organizations. The past few years have witnessed the growth in the power of the Non- governmental organizations as their influence on the global institutions and governments have substantially increased. On the other hand, Butler & Wilson (2015) mentioned that even after proliferation, the Non- governmental organizations do not have sufficient powers to influence the economic policies of World Bank. However, with the passage of time, the World Bank recognized Non- governmental organizations as their development partners in order to encourage the government borrowers. The systematic literature explains the role of the donors in the expansion of Non- governmental organizations.

Hill, Jones & Schilling (2014) mentioned that the NGOs obtain their basic requirements of finance from the donors, which helps the organization to survive in the long- run. The high level of dependency of the NGOs on the donors is because the NGOs do not have any alternate source of income. Non- governmental organizations are not involved in any kind of profit- making business, which makes them highly dependent upon the donors. The poor economical conditions of the under- developed and developing nations and the rifts between the common people and the governments of the respective nations have resulted in the growth and popularity of the Non- governmental organizations. The Non- governmental organizations play a pivotal role in the conservation of nature, society, culture and human rights, which has led to the development of the communities across the globe.

NGOs and Governments

Felício, Gonçalves & da Conceição Gonçalves (2013) stated that the worldwide growth and expansion of the NGOs has forced the NGOs to develop cordial relationships with the Governments of the nations in which they carry their activities. The large- scale operations of the NGOs require the support of the local governments due to which the relationship between NGOs and the Governments has gained substantial importance. Many a times the NGOs operating the authoritative nations have to go through severe political pressures and they can sustain only when they develop cordial relationships with the governments. Several times the NGOs fight against the unfair rules and policies of the governments for safeguarding the minorities and economically backward sections of the society. The NGOs address the issues related to equality, human rights and environmental problems.

On the contrary, Maier, Meyer & Steinbereithner (2016) stated that the Non- Governmental Organizations have successfully established cordial relationships with the Governments of several nations. According to West (2014), the NGOs have been facing immense political pressures in several nations such as the Middle East countries. Different types of strategies have been formulated and implemented by the NGOs in order to deal with the governments of different nations. The main strategies adopted by the NGOs involve cooptation, complimentary, cooperation, and confrontation. The Non- Governmental Organizations have the power to influence the Governments by initiating coordination and representativeness. According to Berman (2015), there are several ways in which the Non- Governmental Organizations can initiate and implement strong partnerships with the governments of different nations while ensuring their core values.

The systematic literature review mentions the problems associated with the NGOs in terms of government influence and restrictions. The governments of several nations have imposed various restrictions on the activities of the Non- Governmental Organizations with the aim of maintaining their power in the nation. However, the NGOs have been to an extent successful in eradicating these restrictions by entering into partnerships with the governments.

As per Akingbola (2013), very less research has been conducted on Non- Governmental Organization coordination. Despite limited research, substantial focus has been given to the coordination of the functions and activities of the NGOs. The international relief operations require NGO coordination and it has been of great use in the emergency situations. The assistance and support provided by the NGOs during the times of emergencies has been remarkable. Despite the advantages, there have been a few problems associated with coordination among the NGOs and the governments.

Conclusion

On the other hand, according to Almog-Bar & Schmid (2014), NGO coordination can be improved only when there is proper strategic management within the NGOs. The key elements of NGO coordination are appropriate communication and integration of the activities. It is necessary to scrutinize the effectiveness of the activities of the NGOs from time to time in order to ensure the organizational efficiency. The major focus must be the efficient staff with appropriate knowledge as human resources are the most crucial assets of NGOs.

The rise in the power of the NGOs has often raised several questions related to the legitimacy of the NGO activities. Several questions have been raised against the accountability of the NGOs. According to Malatesta & Smith (2014), there are several methods of enhancing the accountability of the NGOs, which involves offering equal powers to the donors and to the beneficiaries and laying more emphasis upon collaboration than on mere control.

As per Wheelen & Hunger (2017), the legality of the NGOs are highly dependent upon the efficiency of the NGOs in formulating and implementing development strategies. Therefore, it is necessary for the NGOs to be accountable to the society and community in the nation or state wherein they implement their plans and strategies. It is necessary for the organizations to increase their accountability and be more accountable for their actions in order to achieve their long- term goals and objectives.  

On the other hand, Peppers & Rogers (2016) state that the requirement for NGO accountability has been felt in every direction with the objective of enhancing the functions and operations of the NGOs. There is a lack of comprehensive approach that promotes the NGO accountability but, accountability shall empower the NGOs while dealing with political pressures and shall also help them in improving their overall performance.

Conclusion:

The rise in the complexities in the internal and external environments of the NGOs has increased the need and importance of strategic management in NGOs. The increase in the popularity of Non- Governmental Organizations and the rapid increase in their size, the operational complexities of these organizations have increased the need of strategic management for efficiently managing stakeholders and the financial resources. There have been several changes in the international laws and politics, technologies, globalization, availability of natural resources, climatic conditions and socio- cultural changes. This has resulted in the need of strategic management in Non- governmental organizations. The Non- governmental organizations face several issues in terms of insufficient funds, lack of volunteer support, lack of support from the donors, lack of support from the corporate and inappropriate management. Strategic management provides solutions to more or less all the issues faced by the Non- governmental organizations and aids them in scaling up their world- wide operations. Formulation and implementation of strategic management tools and methodologies enable the Non- Governmental Organizations to improve their overall performance. However, there persists lack of sufficient research and literature on the formulation and implementation of strategic management tools for improving the performance of the Non- governmental organizations.

References:

Akingbola, K. (2013). A model of strategic nonprofit human resource management. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 24(1), 214-240.

Almog-Bar, M., & Schmid, H. (2014). Advocacy activities of nonprofit human service organizations: A critical review. Nonprofit and Voluntary Sector Quarterly, 43(1), 11-35.

Berman, E. (2015). Performance and productivity in public and nonprofit organizations. Routledge.

Brown, W. A. (2014). Strategic management in nonprofit organizations. Jones & Bartlett Publishers.

Bryce, H. J. (2017). Financial and strategic management for nonprofit organizations. Walter de Gruyter GmbH & Co KG.

Butler, R., & Wilson, D. C. (2015). Managing voluntary and non-profit organizations: Strategy and structure. Routledge.

Felício, J. A., Gonçalves, H. M., & da Conceição Gonçalves, V. (2013). Social value and organizational performance in non-profit social organizations: Social entrepreneurship, leadership, and socioeconomic context effects. Journal of Business Research, 66(10), 2139-2146.

Galaskiewicz, J. (2016). Social organization of an urban grants economy: A study of business philanthropy and nonprofit organizations. Elsevier.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

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Malatesta, D., & Smith, C. R. (2014). Lessons from resource dependence theory for contemporary public and nonprofit management. Public Administration Review, 74(1), 14-25.

Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A Strategic Framework. John Wiley & Sons.

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West, J., Salter, A., Vanhaverbeke, W., & Chesbrough, H. (2014). Open innovation: The next decade.

Wheelen, T. L., & Hunger, J. D. (2017). Strategic management and business policy. pearson.

Worth, M. J. (2013). Nonprofit management: Principles and practice. Sage