Three Management Challenges in Performance Improvement in Human Services Agencies: A Case Study

Continuing cuts in government funding and intense pressure for accountability have promoted a considerable interest in performance improvement among nonprofit human services agencies. These human services agencies are struggling to balance the increasing demand for accountability against financial uncertainty, but this complex requirement often leaves them consistent performance challenges. This article argues that human services agencies are suffering from the three preeminent management challenges—value conflict, micromanagement, and low employee motivation. An analysis of organizational change in a community mental health center in Georgia demonstrates that these management challenges, while not the only ones facing human services agencies, represent significant threats to performance improvement. Given ever-rising performance expectations and the uncertainty of government funding streams, cutback management may be a viable strategic choice for human services agencies.