Management Control Issues at Not-for-Profit Organizations

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Management control issues within not-for-profit organizations (NPOs) pose challenges that diverge significantly from those encountered in for-profit enterprises. These challenges are deeply rooted in the distinctive characteristics of NPOs, mission-driven objectives, unconventional performance evaluation criteria, external oversight dynamics, and unique employee attributes. This discussion aims to elucidate these multifaceted issues with clarity and professionalism.

A primary concern in NPO management control arises from the inherent ambiguity surrounding their objectives. Unlike their for-profit counterparts, which pursue financial profit as a primary goal, NPOs are mission-oriented entities that address societal or community issues. This mission-centric orientation introduces goal ambiguity as the criteria for measuring success become less quantifiable and