Differences in Decision-making in Nonprofit Organizations in Developed and Developing Countries

Decision-making and Valuation

 

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Decision-making and Valuation > Best Practices

Thabo Johnson
Decision making in nonprofit organizations (NPOs) differs between developed and developing countries. My observations are that Northern-hemisphere NPOs are wealthy global 'corporate' entities, whilst Southern-hemisphere NPOs are donor-dependent entities, whose decision making environments differ from those of their wealthier northern counterparts. These variations impact on even the adaptability of traditional business theory to the sector most of which has its origin in the Northern hemisphere. The variations are also influenced by regional cultural and political differences. (...) Read more? Sign up for free

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  Jaap de Jonge, Editor, Netherlands
 

Differences in Decision-making in Nonprofit Organizations

Hi Thabo, thank you for starting this interesting topic. Can you indicate some key differences you observe between the 2 decision making environments?

  Thabo Johnson
 

Decision Making in non Profit Organisations

Vroom and Yetton and later Vroom and Jago developed the Normative Decision Making Model which identifies variable levels of follower participation. The model may be suited to Non Profit Organization's in developed countries countries where decision making styles are suited to different situational characteristics to realize decision effectiveness in non profit organization's.
This position is impacted on by cultural values such as Ubuntu in South Africa which posits that "you are because I am". This notion makes it taboo for a leader in NPO sector to even consider making unilateral decisions because they are viewed as community organizations.
Failure to adhere to these practices actually supersedes the dimensions of effective decision making identified by the Normative Decision Making model of Vroom and Jago.
This raises questions on whether contemporary business models are actually effective for application in the NPO sector without some tweaking and adaptation.

 
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