Reference no: EM133043067

Read the excerpt from the online article 'Nonprofit Leadership Development: The Importance of Leadership in Nonprofit Organizations' by ThirdSectorCompany.com

There is a huge importance of leadership in nonprofits, and there are some unique elements associated with leadership in the nonprofit sector. A primary difference in nonprofit leadership is that it takes both paid and unpaid people to fulfill the mission. Most for-profit organizations and most governmental organizations engage their people initially through employment while most nonprofits engage their people initially through voluntarism. A non profit leader must operate from a differentdefinition of equity than a business owner.

Community equity is both financial and nonfinancial. There is a "social value" to the work of nonprofits that can't be calculated solely using a "financial value" equation taught in most business schools. There is also an"in-kind"income stream that for-profits don't measure which is the "value" of people's volunteered time, donated goods, and pro-bono expertise that a for-profit would otherwise have to pay for in a vendor relationship. The nonprofit leader must provide a "social return" on investment as opposed to a "financial return" that these same individuals would be seeking from an investment in a business. The nonprofit leader has to engage people to not only create a positive "profit or financial bottom line" for the corporation but must also work equally hard with people to show a measurable "social bottom line or social profit" resulting from the work.

What makes that difficult is that the nonprofit has less control over some variables in its impact because it occurs in a community instead of inside a building or factory. These are just a few examples of the leadership outcomes that are different between sectors. Leadership is a life-long learning process for any professional whether he or she is employed by a corporation, by government or by a nonprofit.

(a) Referencing the article above, discuss the perspective 'Leadership involves social influence' in terms of its relevance and importance in a non-profit organisation. Illustrate with examples based on the article above.

(b) Explain Fielder's Contingency Model, discuss which leader style will fit a non- profit organisation using the three dimensions of situational control.