HSO Course Work cont

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HSO Course Work cont Recap Contrast For Profit Organizations (FPO) & Not for Profit Organizations Note HSO we study are non profit organizations Legal Aspects of Not for Profit HSO

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HSO Course Work cont. Recap Contrast For Profit Organizations (FPO) & Not for Profit Organizations Note HSO we study are non profit organizations Legal Aspects of Not for Profit HSO. Business side of the HSO is intertwined with the mission. - PowerPoint PPT Presentation

Transcript of HSO Course Work cont

Page 1: HSO Course Work cont

HSO Course Work contRecap

Contrast For Profit Organizations (FPO) & Not for Profit Organizations Note HSO we study are non profit

organizations

Legal Aspects of Not for Profit HSO

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Business side of the HSO is intertwined with the mission.

Putting financial/business goals ahead of service goals can be de-motivating and suck the spirit out of the organization-effect quality of service delivered

If you lose your soul and are unable to provide quality services, you will no longer be able to attract $- lose legitimacy You can run out of $ by being BAD at what you do no matter how

effective at fund raising and financial mgt. practices

HSO succeed in different ways, but fail in the same way-run out of money

Balance: frugal and effective in providing service Link $ and service quality

A MISER WITH A BIG HEART Bill Clinton

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Recap (cont.): What we have learned

What is an organization

Formal and informal aspects of an organization Informal is difficult measure/understand Informal processes can help/hinder org. from reaching goals

Research/investigating organization requires acting like a detective & gathering/analyzing data from multiple sourcesValidity and reliability

Definition of HSO

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Contrast FPO and HSOMission

Income

Product/Services

Profitability/legitimacy

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FPO vs HSO (non profit)Mission: FPO: A business (also known as enterprise or firm) is an

organization engaged in the trade of goods, services, or both to consumers. FPO are privately owned and administered to earn profit to increase the wealth of their owners.

HSO: Non-Profit An incorporated organization which exists for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially

Income: FPO: Income generated from a for-profit business can be

used as business owners want.

HSO: Nonprofits receive money mostly through grants and donations, and also through service and memberships fees. Grants and donations must be used as the donor intends.

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FPO vs HSO (cont.)Products/Services:

FPO: For-profits are free to develop many new avenues of business to boost their bottom line.

HSO: Income earned by a Not-for-Profit must be within the limits of its mission. A nonprofit cannot receive income from a regularly carried-on trade or business not related to its mission or it can lose tax-exempt status. For example, a nonprofit with the mission to help the

homeless find jobs might start a drug-addiction program, but can not use its funding to establish a Little League team

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FPO ProfitabilityGOAL is profitability.

Income must be Greater than cost.

Survival comes from approval by market and efficient management of resources.

Compete head to head with other, like firms.

Profitability determines the VALUE of the firm.Value can be determined mathematically, i.e.

Market Cap (share price x # of shares)

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Self Sustaining Loop: FPO

Input: ResourcesRaw Materials

Throughput:Manufacturing or Service Delivery

Output: Finished Good/Service exchanged

For $

$ For inputs

Note: Income > Cost= Self Sustaining System

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HSO LegitimacyLegitimacy is a conferred status the HSO

earns and or is granted by entities and forces outside of the organization.

HSO also needs money to operate, does not receive $ (in most cases) from the end-user.

The currency of an HSO is “legitimacy.”

Those capable of providing resources must view the HSO as legitimate.

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HSO: Exchange of Resources Not Directly Dependent on Output

Throughput: Service Delivered

Input: Clients

AcademicsExperts

$

Output:Transformed Client

Note: Beneficiary of service does Not provide Currency for new inputs

LegitimacyGovt.,Stakeholders

NOTE: We will discuss how HSO earn legitimacy in our hso/environment relations discussion

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Systems Theory Provides a Holistic Theoretical Perspective

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Open Systems Theory: Organizations

Borrowed from Biology- cell to larger system interaction

Systems theory: Organization is an open system that is part of a greater/larger system.

Provides comprehensive framework for studying organizational behavior (the what and the why).

Elements include inputs, outputs, feedback from the environment within which it operates.

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What is a SystemSystem Defined: A functionally related

group of elements, A group of interacting, interrelated, or interdependent elements forming a complex whole.

Example: Digestive systemA system comprised of interrelated organ parts

responsible for breaking down and absorbing critical nutrients

Part of a greater system.

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Systems Theory ThemesComplexity and interdependence

No organization is an island or controls its world-IMPORTANT

Open system: organization has permeable boarders Information, resources, energy passes in and out

Energy/activity/feedback is exchanged with the environment Actions in environment effect Org. behavior and visa versa Organizations are self regulating/responds to feedback

The whole is greater than the sum of its parts-Can not understand the entire organization by studying its parts

example is engineered system functions as prototype, but not when mass produced

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Open System Model: ElementsInputs: Materials and resources necessary for

firm/system to remain functional.

Throughput: Transforming of inputs

Output: Finished good or service to be exchanged with the environment for new inputs

Environment/Feedback: information provided by the environment that effects the firm ability to continue operation.

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Inputs: Materials

Resources

Throughput/core technology

Output: Finished

Good/Svc.

Environment:Output exchanged for

InputsFeedback of info.

Healthy open systems regularly exchanges feedback with its external environment and adjust inner-systems as needed.

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ThermostatInput The gas or electricity which comes from power

company

Throughput thermostat monitors the temperature

(environment), thermostat sends a signal to our heater to turn on, the gas is burned, the fan turns on & blows warm air into the room, thermostat sends a signal to the heater to turn off.

Output Heat

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Thermostat (cont.)Feedback - when the temperature falls below

the desired level, the thermostat sends a signal to heater; When the temperature reaches the desired level, the thermostat sends a signal to the heater to turn off.

Feedback comes from the environment.

Environment is a very important concept in system theory and when studying HSO

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Inputs: Gas/Electricity

ThroughputSends signal to turn on,

Gas burned, fan turns onBlows warm air

Output: Heat

Environment:Temperature change

turning on or off of thermostat

.

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Describe the following in terms of the System Framework Elements:

Oil/Gas Company (Exxon)

Restaurant

RHP

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Inputs:

Throughput

Output:

Environment:

.

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Inputs:

Throughput

Output:

Environment:

.

CLASS EXERCISE

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RestaurantInput:

Cooks; waiters; hostesses; fresh food; kitchen equipment….

Throughput: process of taking orders and preparing meals

Output: Finished meal

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Inputs: Cooks, waiters

Fresh food, kitchen Equipment, Accnt. Sys.

ThroughputTaking orders,

preparing meals, schedulingWaiter/hostess shifts…

Output:Finished Meal

Environment:

.

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Inputs:

Throughput

Output:

Environment:

.

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RHPInput: Teachers; admin.; education technology;

STUDENTS (in HSO people are Raw Materials)

Throughput: Educational process (includes classroom and

experiential learning)

Output: Educated/college prepared young men and

women

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Forms of Feedback: RHPFeedback is

information provided by environment which causes the organization to make modification in some form.Note: not all

information is detected by the focal organization

Parents Satisfaction/

charitable giving

Colleges Acceptance Rates/Opinion of RHP quality

Future

Students

Application # changes

Economy Parents Propensity to spend/save

Competitors (Chadwick)

Reputation/

Attracting students

Examples Feedback

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Inputs: Students, teachers, admin

Smart boards…..

ThroughputEducational process,

lesson plans, outdoor ed. extra curricular

Output: Educated, college prepared

Young men and women

Environment:Economic conditions, College acceptances

Community perception# of people applying

.

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Next ClassRead: American Red Cross: under fire.Create a timeline of events beginning with the

viejas fire and ending with the wildfires of 2003. Include significant events such as the county supervisor

becoming involved, firings/hirings

Explain what is meant “give the shirt off your back; but put a knife in yours”

Were the San Diego chapter’s leaders good business managers?

What did the San Diego chapter do to restore legitimacy? (give 2+ examples)