Performance Measurement Practices of Nonprofit Organizations: The Case of Selected Nonprofit Organizations in Addis Ababa in Ethiopia
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Date
2012-03
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A.A.U
Abstract
Nonprofit organizations are under pressure to demonstrate their achievements. As a result,
nonprofit Organizations performance measurement is receiving increasing academic and
practitioner attention. Despite this fact, there are many challenges that exist when measuring the
performance of nonprofit organizations. For instance, intangibility of service offered,
in measurability of their missions, and differing interests of different stakeholders are few of them
and have been addressed in the literature.
To address the objectives of study, mixed method research design was adopted. Data was
collected from forty Nongovernl1lental organizations operating in Addis Ababa through survey
in the first phase and in the second phase; interviews were held with two interviewees to better
understand the result obtained in the first phase. The techniques of analysis used in this study
were descriptive (frequency, percentage and mean) and inferential analysis (chi-square test).
Result indicate that external reason mainly the requirement from funder and government were
the main reason for measuring performance as compared to the internal reason. Besides, out of
eight reasons for measuring performance included in the survey instrument, more than fifty
percent of respondents showed a higher degree of agreement to four items as the most reason for
measuring their performance. Result also showed the dominance of output performance
measurement whereas outcome measures were the lowest areas of activities. Furthermore, result
in the second phase of shows lack of resource and staff skill in conducting outcome measurement
as the main barriers towards the low implementation of outcome performance measures.
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Keywords
performance measurement; nonprofit organizations; profit oriented organizations.