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Management Practices: Are Not For Profits Different?

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Author Info

  • Josse Delfgaauw

    (Erasmus University Rotterdam)

  • Robert Dur

    (Erasmus University Rotterdam)

  • Carol Propper

    (University of Bristol and Imperial College, London)

  • Sarah Smith

    (University of Bristol)

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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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-094/1.

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Date of creation: 15 Jul 2011
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Handle: RePEc:dgr:uvatin:20110094

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Web page: http://www.tinbergen.nl

Related research

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

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References

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  1. Josse Delfgaauw & Robert Dur, 2004. "Incentives and Workers’ Motivation in the Public Sector," CESifo Working Paper Series 1223, CESifo Group Munich.
  2. Nicholas Bloom & Carol Propper & Stephan Seiler & John Van Reenen, 2010. "The Impact of Competition on Management Quality: Evidence from Public Hospitals," CEP Discussion Papers, Centre for Economic Performance, LSE dp0983, Centre for Economic Performance, LSE.
  3. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, Elsevier, vol. 81(1), pages 99-115, July.
  4. Oriana Bandiera & Luigi Guiso & Andrea Prat & Raffaella Sadun, 2009. "Matching Firms, Managers and Incentives," Economics Working Papers, European University Institute ECO2009/14, European University Institute.
  5. Josse Delfgaauw & Robert Dur, 2008. "Managerial Talent, Motivation, and Self-Selection into Public Management," Tinbergen Institute Discussion Papers, Tinbergen Institute 08-097/1, Tinbergen Institute.
  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. 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.
  8. Glazer, Amihai, 2004. "Motivating devoted workers," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 22(3), pages 427-440, March.
  9. Nicholas Bloom & John Van Reenen, 2010. "Human Resource Management and Productivity," NBER Working Papers 16019, National Bureau of Economic Research, Inc.
  10. 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.
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Cited by:
  1. Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2011. "Management Practices Across Firms and Countries," CEP Discussion Papers, Centre for Economic Performance, LSE dp1109, Centre for Economic Performance, LSE.

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