In: Operations Management
Non-profit organization roles can be categorized into two roles namely economic model and the voluntary spirit model.
Factors |
Economic Model |
Voluntary Spirit Model |
Basic assumption |
All organizations (private or public or non-profit) are relatively similar. |
Non-profit organizations are distinct from other organizations. |
Meaning |
Non-profit organizations envision is simply another type of business firm and efficiently responds to market failures and demands to meet the requirements. |
Non-profit organizations have a distinct place in democracy. It is based on the diversity of the principles in the economy. Hence, they are not similar to public or private sectors. |
Motivation |
Individuals are provided with three types of incentives such as material incentives, solidary (social interaction) and incentives, and purposive incentives (reward system). |
The non-profit organizations are based on charity and they do not view individuals as economic factors to influence. They are viewed as public-spirited to do charity. |
Marketing and competition services |
These practices are aggressive to raise funds and provide services to the people. |
Not very aggressive though. The people are involved as a drive for self- and mutual-empowerment |