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University AAicrofilms International 300 N. Z eeb Road Ann Arbor, Ml 48106 8224194 Fleischaker-Suarez, Deborah A DESCRIPTIVE STUDY OF MANAGEMENT IN SELECTED NONPROFIT ORGANIZATIONS The University of Oklahoma Ph.D. 1982 University Microfilms I ntern&tionsil 300 N. Zeeb Road, Ann Arbor, MI 48106 Copyright 1982 by Fleischaker-Suarez, Deborah All Rights Reserved THE UNIVERSITY OF OKLAHOMA GRADUATE COLLEGE A DESCRIPTIVE STUDY OF MANAGEMENT IN SELECTED NONPROFIT ORGANIZATIONS A DISSERTATION SUBMITTED TO THE GRADUATE FACULTY In Partial Fulfillment of the Requirements for the Degree DOCTOR OF PHILOSOPHY By DEBORAH FLEISCHAKER-SUAREZ Norman, Oklahoma 1982 A DESCRIPTIVE STUDY OF MANAGEMENT IN SELECTED NONPROFIT ORGANIZATIONS Approved by: AA, DISSERTATION COMMITTEE 11 "Of those to whom much is given much is required." John F. Kennedy This work is dedicated to my parents, Richard Henry Fleischaker and Adeline Singer Fleischaker, who have provided me, both by their example and their generosity, the desire, direction, and means with which to accomplish my goals. 11 1 ACKNOWLED GEMENT S Upon completion of this work it is only fitting that I should acknowledge those who have lent me their support and guidance during this process; to Dr. Don Udell, Committee Chairman, Dr. Lloyd Korhonen, Dr. Loy Prickett, Dr. Wilbur Scott, and Dr. Gary Sandefur, 1 extend my sincere appreciation. To those who were/are part of an invaluable support system, my "caretakers", Janice Menser, Robbie Shook, and Mary Lee Ingram; my humble thanks. 1 would also like to acknowledge the contribution of time, energy and thoughts so generously extended to me by the administrators of the organizations. I feel particularly fortunate to have been received by such a conscientious and responsive group of professionals. And finally I would like to acknowledge a very special friend, Mr. Toby Thompson, whose assistance ran the "gambit". Toby is not a contributor to this work - he is a part of it. IV TABLE OF CONTENTS P a g e LIST OF TABLES.............................................................................................v i i i LIST OF FIGURES ............................................................................... x C h a p te r I. INTRODUCTION................................................................. 1 The Third Sector in Perspective: Significance and Contributions . 2 Needs for the Study ....................................... 6 Statement of Problem: Related Q u e s t i o n s ......................... 10 D efinition of Terms .......................................... 10 Limitations of the Study ...........................11 Organization of the Study ...........................12 F o o t n o t e s .....................................................................13 I I . REVIEW OF LITERATURE................................................15 Introduction .......................................................... 15 R e l a t e d L i t e r a t u r e ........................................... 16 Organizational D ialectics ......................16 Organizations: D efinitions and C lassifications ................................ 16 O rganizational Environment, Design, and Adaptation. 27 Management Fundamentals ...........................29 H istorical Developments in Management Theory ........................... 30 Management Functions ...........................32 Management's Skill Areas. 34 Profits and Nonprofits Compared. 35 Nonprofits According to Anthony. 35 Absence of the Profit Measure . 35 Tendency to Be Service Organizations ..................................... 36 The Lesser Role of the M arketplace .......................................... 37 The Dominance of Professionals. 38 Differences in Ownership. 39 V TABLE OF CONTENTS, C ontinued Chapter Page A Tradition of Inadequate Management Controls ..................... 39 Other Analysis across the Sectors. 40 Propositions ..................................................................... 43 U niversality of Management P r i n c i p l e s ...........................................................44 Legitimacy of the Profit/N onprofit D ic h o to m y ..................................................................... 44 Dominance of Financial C onstraints ......................................................45 Externally Directed ........................... 45 Internally Directed ........................... 45 F o o t n o t e s .......................................................................... 48 III. METHODOLOGY......................................................... 49 Introduction ..................................................................... 49 P o p u l a t i o n ...........................................................................50 S a m p le .....................................................................................51 Instrum entation ..................................................... 59 Data C ollection ........................................................... 61 Data Treatment ................................................................ 61 F o o t n o t e s .......................................................................... 63 IV. FINDINGS.....................................................................................64 Introduction .......................................................... 64 Environment ..................................................................... 65 O rganizational Summaries ........................... 68 #01 Areawide Aging Agency ............................68 #02 Oklahoma Council on Adoptable C h i l d r e n ................................................................ 74 #07 C elebrations ................................................ 78 #11 City Rescue M ission .................................81 #17 Goodwill Industries .................................85 #20 Hospital Hospitality House . 88 #24 Lutheran Social Services . 93 #26 Mid Del Youth and Family C e n t e r ..................................................................... 98 #27 Midwest City Senior Center . 101 #28 Native American Center ..... 106 #37 Opportunities Industrialization Center. 109 #38 Oro Development Corporation. 114 VI TABLE OF CONTENTS, C o n tin u e d C h a p te r P ag e Sample Summary .................................................... 119 Organizational Characteristics . 119 A g e ....................................................................... 119 Services and Programs ..................... 119 Client Population ................................ 119 P e r s o n n e l ........................................................122 B u d g e t .................................................................. 122 G o v e rn a n c e ........................................................124 Administrative Profiles .............................. 124 Management Functions ................................ 127 Management Concerns .........................................132 O rganization-Specific ................................... 133 F o o t n o t e s ........................................................................148 V. SUMMARY, CONCLUSIONS, RECOMMENDATIONS . 149 S u m m a ry .............................................................................149 D i s c u s s i o n ........................................................................150 Recommendations, .......................................... 156 S u m m a ry .............................................................................157 APPENDIX A: SECTION 501(c)(3) OF 1RS TAX CODE...................................................