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Management practices: Are not for profits different?

Carol Propper, Sarah Smith, Robert Dur and Josse Delfgaauw

No 8498, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Impure altruism; Management; Not-for-profits (search for similar items in EconPapers)
JEL-codes: H8 J24 J45 L33 (search for similar items in EconPapers)
Date: 2011-07
New Economics Papers: this item is included in nep-bec and nep-hrm
References: Add references at CitEc
Citations: View citations in EconPapers (11)

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Working Paper: Management practices: Are not-for-profits different? (2011) Downloads
Working Paper: Management Practices: Are Not For Profits Different? (2011) Downloads
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