« Taiwan Journal of Political Science No.28Publish: 2006/06

Problems and Solutions in Measuring Performance of Nonprofit Organizations

Author: Way Sun

Abstract / Chinese PDF Download

Contemporary nonprofit organizations often replicate public and private sectorperformance  management  styles  in  an  attempt  to  outdo  competition.  Performancemeasurement is the main task within performance management. This thesis aims toexplore potential problems that may occur when nonprofit organizations carry outperformance  measurement  and  propose  solutions  that  can  effectively  improve  theapplication of performance measurement to nonprofit organizations. Recent relevantarticles  and  journals  from  domestic  and  international  sources  have  been  used  asreferences  in  order  to  identify  various  performance  measurement  approaches.  Amulti-dimensional  model  of    comprehensive  performance  measurement  has  alsobeen  introduced.  Based  on  this  model,  and  through  the  analysis  of  three  practicalcases in America and Taiwan, five questions will be explored, including causes andconsequences,  overlapping  objectives,  negative  impact,  measurement  techniquesand  institutional  constraints  that  might  result  from  the  adoption  of  performancemeasurement  in  nonprofit  organizations.  Because  of  the  unique  organization  andmanagement  of  nonprofit  organizations,  this  thesis  suggests  that  performancemeasurement  should  focus  on  five  solutions:  the  level  of  achieving  missions,  theutilization  of  different  types  of  performance  measurement  mechanisms,  commondecisions about the dimension and criteria for performance measurement made by allrelevant parties, measurement made from multi prospects and the primary functionof focusing on increasing the adaptability of the organizations. Last but not the least,the  thesis  emphasizes  the  significance  of  performance  measurement  in  nonprofitmanagement  and  the  position  and  recognition  of  researchers  and  practitioners  inperformance measurement.

Keywords:nonprofit management、nonprofit organization、performance management、performance measurement