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The internal organizational performance influence factors study-an empirical test
Xiuling Yuan1, Lihua Ma1, Cheng Wang2
1School of Management Engineering and Business, Hebei University of Engineering, Handan, 056009, China.
Plos One
|April 4, 2024
Summary
Non-profit organizational performance is linked to internal governance. More managers negatively impact performance, while manager work hours and compensation show significant correlations, influencing organizational success.
Area of Science:
- Non-profit Management
- Organizational Governance
- Societal Development
Background:
- Growing interest in non-profit organization (NPO) development and performance research.
- Internal governance, including boards and management, significantly impacts NPO performance.
- Understanding these internal dynamics is crucial for effective NPO operations.
Purpose of the Study:
- To empirically investigate the relationship between internal governance and NPO performance.
- To examine the moderating effects of board size, manager work hours, manager numbers, work involvement, and compensation on this relationship.
- To provide insights for improving NPO management and development.
Main Methods:
- Utilized data from the US Internal Revenue Service Form 990 for empirical analysis.
- Focused on internal governance factors and their correlation with organizational performance.
- Assessed moderating variables such as board size and manager compensation.
Main Results:
- A negative correlation was found between the number of managers and NPO performance.
- Average weekly working hours of managers demonstrated a significant correlation with organizational performance.
- Manager compensation was also significantly correlated with organizational performance.
Conclusions:
- Internal governance structures, particularly manager numbers, work hours, and compensation, are key determinants of NPO performance.
- Findings offer practical guidance for NPO management and strategic development.
- Contributes to a foundational understanding for building effective NPO sectors.
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