Governance in Not-for-Profit Hospitals: Effects on CEO Compensation and Performance

2014 ◽  
Author(s):  
Frans F.J.M. Schaepkens ◽  
Roland F. Spekle
Keyword(s):  
Ceo Compensation ◽  
For Profit ◽  
Not For Profit ◽  
And Performance

scholarly journals How performance measurement influences stakeholders in not-for-profit organizations

2017 ◽  
Vol 37 (9) ◽  
pp. 1164-1184 ◽  
Author(s):  
Haley Allison Beer ◽  
Pietro Micheli
Keyword(s):  
Performance Measurement ◽  
Single Case ◽  
Institutional Logics ◽  
Performance Goals ◽  
Content Type ◽  
For Profit ◽  
Not For Profit ◽  
And Performance ◽  
The Uk

Purpose The purpose of this paper is to examine the influences of performance measurement (PM) on not-for-profit (NFP) organizations’ stakeholders by studying how PM practices interact with understandings of legitimate performance goals. This study invokes institutional logics theory to explain interactions between PM and stakeholders. Design/methodology/approach An in-depth case study is conducted in a large NFP organization in the UK. Managers, employees, and external partners are interviewed and observed, and performance-related documents analyzed. Findings Both stakeholders and PM practices are found to have dominant institutional logics that portray certain goals as legitimate. PM practices can reinforce, reconcile, or inhibit stakeholders’ understandings and propensity to act toward goals, depending on the extent to which practices share the dominant logic of the stakeholders they interact with. Research limitations/implications A theoretical framework is proposed for how PM practices first interact with stakeholders at a cognitive level and second influence action. This research is based on a single case study, which limits generalizability of findings; however, results may be transferable to other environments where PM is aimed at balancing competing stakeholder objectives and organizational priorities. Practical implications PM affects the experience of stakeholders by interacting with their understanding of legitimate performance goals. PM systems should be designed and implemented on the basis of both their formal ability to represent organizational aims and objectives, and their influence on stakeholders. Originality/value Findings advance PM theory by offering an explanation for how PM influences attention and actions at an individual micro level.

The impact of relative CEO compensation on not-for-profit contributions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stacey Kaden ◽  
Gary Peters ◽  
Juan Manuel Sanchez ◽  
Gary M. Fleischman
Keyword(s):  
Large Scale ◽  
Ceo Compensation ◽  
Drop Out ◽  
Content Type ◽  
For Profit ◽  
Not For Profit ◽  
Survivorship Bias ◽  
Excess Cash ◽  
The Impact ◽  
A Current

PurposeThe authors extend research suggesting that external funders reduce their contributions to not-for-profit (NFP) organizations in response to media-reported CEO compensation levels.Design/methodology/approachEmploying a maximum archival sample of 44,807 observations from US Form 990s, the authors comprehensively assess the extent that high relative NFP CEO compensation is associated with decreases in future contributions.FindingsThe authors find that donors and grantors react negatively to high relative CEO compensation but do not react adversely to high absolute executive compensation. Contributors seem to take issue with CEO compensation when they perceive it absorbs a relatively large portion of the organizations’ total expenses, which may hinder the NFP’s mission. Additional findings suggest that excess cash held by the NFP significantly exacerbates the negative baseline relationship between future contributions and high relative CEO compensation. Finally, both individual donors and professional grantors are sensitive to cash NFP CEO compensation levels, but grantors are more sensitive to CEO noncash compensation.Research limitations/implicationsThe authors’ data are focused on larger NFP organizations, so this limits the generalizability of the study. Furthermore, survivorship bias potentially influences their time-series investigations because a current year large-scale decrease in funding due to high relative CEO compensation may cause some NFP firms to drop out of the sample the following year due to significant funding reductions.Originality/valueThe study makes three noteworthy contributions to the literature. First, the study documents that the negative association between high relative CEO compensation levels and future donor and grantor contributions is much more widespread than previous literature suggested. Second, the authors document that high relative CEO compensation levels that trigger reductions in future contributions are significantly exacerbated by excess cash held by the NFP. Finally, the authors find that more sophisticated grantors are more sensitive to noncash CEO compensation levels as compared with donors.

Gender Differences in Hospital CEO Compensation: A National Investigation of Not-for-Profit Hospitals

2018 ◽  
Vol 76 (6) ◽  
pp. 830-846 ◽  
Author(s):  
Paula H. Song ◽  
Shoou-Yih Daniel Lee ◽  
Matthew Toth ◽  
Simone R. Singh ◽  
Gary J. Young
Keyword(s):  
Ceo Compensation ◽  
Pay Equity ◽  
Earnings Differential ◽  
For Profit ◽  
Not For Profit ◽  
Gender Diverse ◽  
Sample Data ◽  
Female Ceos ◽  
The Difference ◽  
Examine Gender Difference

Gender pay equity is a desirable social value and an important strategy to fill every organizational stratum with gender-diverse talent to fulfill an organization’s goals and mission. This study used national, large-sample data to examine gender difference in CEO compensation among not-for-profit hospitals. Results showed the average unadjusted annual compensation for female CEOs in 2009 was $425,085 compared with $581,121 for male CEOs. With few exceptions, the difference existed across all types of not-for-profit hospitals. After controlling for hospital- and area-level characteristics, female CEOs of not-for-profit hospitals earned 22.6% less than male CEOs of not-for-profit hospitals. This translates into an earnings differential of $132,652 associated with gender. Explanations and implications of the results are discussed.

Key Enablers for Knowledge Management for Australian Not-for-Profit Organizations

2017 ◽  
pp. 628-648
Author(s):  
Craig Hume ◽  
Margee Hume
Keyword(s):  
Knowledge Management ◽  
Employee Engagement ◽  
Knowledge Worker ◽  
Integrated Approach ◽  
Volunteer Retention ◽  
For Profit ◽  
Not For Profit ◽  
Grant Applications ◽  
And Performance ◽  
Government Grant

Not-for-Profit (NFPs) organizations operate in an increasingly competitive marketplace for funding, staff and volunteers, and donations. Further, NFPs, both in Australia and internationally, are growing rapidly in number in response to increasing needs for humanitarian services and environmental sustainability that local and national governments and established international aid organizations cannot or struggle to provide effectively. Many NFPs are being driven to adopt more commercial practices in order to improve their donor appeal, government grant applications, staff/volunteer retention, and service delivery. Knowledge Management (KM) is one such “corporate” practice being explored to address the increasingly competitive environment. Although the concept of knowledge management may be basically understood in NFPs, researchers and NFP managers are yet to explore and fully understand the complex inter-relationships of organizational culture, ICT, internal marketing, employee engagement, and performance management as collective enablers on the capture, coordination, diffusion, and renewal of knowledge in a NFP environment. This chapter presents research into the relationship of KM with those enabling elements and presents an implementation model to assist NFPs to better understand how to plan and sustain KM activity from integrated organisational and knowledge worker perspectives. The model emphasises an enduring integrated approach to KM to drive and sustain the knowledge capture and renewal continuum. The model provides an important contribution on “how to” do KM.

Innovation orientation and performance in the not-for-profit sector

2020 ◽  
Vol 23 (4) ◽  
pp. 540
Author(s):  
Mark Klassen ◽  
C. Brooke Dobni ◽  
Veronica Neufeldt
Keyword(s):  
For Profit ◽  
Not For Profit ◽  
And Performance

Linking HRM Systems with Public Sector Employees’ Performance

2021 ◽  
pp. 161-181
Author(s):  
Julian Seymour Gould-Williams ◽  
Ahmed Mohammed Sayed Mostafa
Keyword(s):  
Public Sector ◽  
Social Exchange ◽  
Management Practice ◽  
Organizational Level ◽  
The Public ◽  
For Profit ◽  
Not For Profit ◽  
Public Sector Employees ◽  
And Performance ◽  
Employee Experience

Early research exploring the link between HRM and performance primarily focused on private sector and organizational-level factors (the firm’s HR policy and financial performance). Although the evidence revealed a positive link between organizational approaches to HR practices and performance, the effect on employees was not considered. Although there is now emerging evidence across the private and not-for-profit sectors which includes the employee experience, theory advancement remains limited. The aim of this chapter is to address this issue by identifying relevant theories that explain why HR systems affect employees’ responses. Of the three theories identified, namely (1) ability, motivation, opportunity (AMO); (2) social exchange; and (3) self-determination theory (SDT), it is believed AMO is the least suited for the public sector context, even though the results of a review study show that AMO is the preferred choice for analysis by public sector scholars. This chapter expands on the rationale for this choice and highlights implications for management practice and research.

Key Enablers for Knowledge Management for Australian Not-for-Profit Organizations

2014 ◽  
pp. 17-35 ◽  
Author(s):  
Craig Hume ◽  
Margee Hume
Keyword(s):  
Knowledge Management ◽  
Employee Engagement ◽  
Knowledge Worker ◽  
Integrated Approach ◽  
Volunteer Retention ◽  
For Profit ◽  
Not For Profit ◽  
Grant Applications ◽  
And Performance ◽  
Government Grant

Not-for-Profit (NFPs) organizations operate in an increasingly competitive marketplace for funding, staff and volunteers, and donations. Further, NFPs, both in Australia and internationally, are growing rapidly in number in response to increasing needs for humanitarian services and environmental sustainability that local and national governments and established international aid organizations cannot or struggle to provide effectively. Many NFPs are being driven to adopt more commercial practices in order to improve their donor appeal, government grant applications, staff/volunteer retention, and service delivery. Knowledge Management (KM) is one such “corporate” practice being explored to address the increasingly competitive environment. Although the concept of knowledge management may be basically understood in NFPs, researchers and NFP managers are yet to explore and fully understand the complex inter-relationships of organizational culture, ICT, internal marketing, employee engagement, and performance management as collective enablers on the capture, coordination, diffusion, and renewal of knowledge in a NFP environment. This chapter presents research into the relationship of KM with those enabling elements and presents an implementation model to assist NFPs to better understand how to plan and sustain KM activity from integrated organisational and knowledge worker perspectives. The model emphasises an enduring integrated approach to KM to drive and sustain the knowledge capture and renewal continuum. The model provides an important contribution on “how to” do KM.

scholarly journals Hospital Lobbying and Performance

2021 ◽  
Author(s):  
Yangmei Wang ◽  
Yuewu Li ◽  
Jiao Li
Keyword(s):  
Hospital Performance ◽  
Business Organizations ◽  
Hospital Ownership ◽  
Uncompensated Care ◽  
Return On Assets ◽  
For Profit ◽  
Not For Profit ◽  
Government Hospitals ◽  
And Performance ◽  
Care Costs

Lobbying is a primary avenue through which business organizations attempt to influence legislation, regulations, or policies. In this study, we examine the association between lobbying and hospital performance and find that the effects of lobbying activities on hospital performance vary according to the distinct types of hospital ownership. Specifically, we find that lobbying raises employee salaries in not-for-profit (NFP) hospitals, reduces uncompensated care costs in both for-profit and NFP hospitals, and increases return on assets (ROA) in for-profit hospitals. We also find that the effects of lobbying on employee salaries, uncompensated care costs, and ROA are not significant in government hospitals. Taken together, our findings suggest that NFP hospitals lobby to protect employees’ interests, while for-profit hospitals lobby to maximize investors’ interests. Our paper provides evidence to illustrate that the goals and effects of hospital lobbying vary according to hospital ownership types.

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