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Management practices: Are not-for-profits different?

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  • Josse Delfgaauw
  • Robert Dur
  • Carol Propper
  • Sarah Smith

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Abstract

Recent studies have demonstrated the importance of good management for firm performance. Here, we focus on management in not-for-profits (NFPs). We present a model predicting that management quality will be lower in NFPs compared to for-profits (FPs), but that outputs may not be worse if managers are altruistic. Using a tried and tested survey of management practices, we find that NFPs score lower than FPs but also that, while the relationship between management scores and outputs holds for FPs, the same is not true for NFPs. One implication is that management practices that work for FPs may be less effective in driving performance in NFPs.

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File URL: http://www.bristol.ac.uk/cmpo/publications/papers/2011/wp263.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 11/263.

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Length: 18 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:bri:cmpowp:11/263

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Keywords: Not-for-profits; management; impure altruism;

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  1. Nicholas Bloom & Carol Propper & Stephan Seiler & John van Reenan, 2010. "The Impact of Competition on Management Quality: Evidence from Public Hospitals," The Centre for Market and Public Organisation, Department of Economics, University of Bristol, UK 10/237, Department of Economics, University of Bristol, UK.
  2. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 122(4), pages 1351-1408, November.
  3. Bandiera, Oriana & Guiso, Luigi & Prat, Andrea & Sadun, Raffaella, 2009. "Matching Firms, Managers, and Incentives," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7207, C.E.P.R. Discussion Papers.
  4. Delfgaauw, Josse & Dur, Robert, 2010. "Managerial Talent, Motivation, and Self-Selection into Public Management," IZA Discussion Papers 4766, Institute for the Study of Labor (IZA).
  5. Josse Delfgaauw & Robert Dur, 2008. "Incentives and Workers' Motivation in the Public Sector," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 118(525), pages 171-191, 01.
  6. Brekke, Kjell Arne & Nyborg, Karine, 2010. "Selfish bakers, caring nurses? A model of work motivation," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 75(3), pages 377-394, September.
  7. Nicholas Bloom & John Van Reenen, 2010. "Human Resource Management and Productivity," NBER Working Papers 16019, National Bureau of Economic Research, Inc.
  8. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, Elsevier, vol. 81(1), pages 99-115, July.
  9. Canice Prendergast, 2007. "The Motivation and Bias of Bureaucrats," American Economic Review, American Economic Association, American Economic Association, vol. 97(1), pages 180-196, March.
  10. Glazer, Amihai, 2004. "Motivating devoted workers," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 22(3), pages 427-440, March.
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Cited by:
  1. Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2012. "Management Practices Across Firms and Countries," NBER Working Papers 17850, National Bureau of Economic Research, Inc.

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