Non-For-Profit Organizations

Assignment

Non-For-Profit

Pay for performance is just as important in non-for-profit organizations. Assume you are founder of a non-profit public charity of your choice. Create a compensation program that will link pay to the performance of your employees.

Discussion Question
Sales Compensation Plan

Assume you take over a company and look to change the sales compensation plan.
What are some key indicators you will need to review and implement for success of your new plan?

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Pay for performance is just as important in non-for-profit organizations. Assume you are the founder of a non-profit public charity of your choice. Create a compensation program that will link pay to the performance of your employees.

There are several considerations and constraints that must be taken into account in designing an effective compensation program that links pay to the performance of employees in a nonprofit organization. As Katz and Meola (Chingos, 2002) point out, nonprofits are often draw from the same talent pools as for-profit companies and thus have to compete in terms of compensation – with the massively confounding factor that the regulatory and structural dimensions in which they do business are so different, such as in terms of tax rules, regulatory oversight, the lack of equity to distribute, etc. (p.128). Perhaps the most intrinsic of these constraints is this: for an entity not geared to the generation of revenue and profit, how should performance be evaluated in order to then index compensation to performance? What is performance in such an environment?
         Part of the answer must depend on the nature...