Red Cross A non-profit organization (2023)

The International Red Cross is a non-profit organization known for its emergency-based planning, governance and management. Because the organization does not sell any products or services for a profit, it must comprehensively manage budgeting to deal with crisis and emergency situations like Hurricane Sandy. (Allen, 2011)

Current events around the world have a more dynamic impact on nonprofit organizations. For example, the Red Cross is an international disaster management organization. It has to reach areas where there are problems. As Alan (2011) has pointed out, non-profit organizations involved in disaster management today need to be more active and dynamic. Sometimes they have to deal with one disaster in Taiwan and the other in America. A few other projects in Africa and other undeveloped regions remain active throughout the year.

Impact of Hurricane Sandy on the Red Cross

The Red Cross dealt directly with Hurricane Sandy in 2012. The Red Cross took action by announcing 4,000 workers for the hurricane disaster. They worked in damaged and devastated areas with thousands of volunteers. The NY Times (2012) cited the Red Cross as the most active non-profit organization working to develop the regions in the wake of Hurricane Sandy. In addition to dispatching disaster relief workers for disaster management, the Red Cross also raised approximately $23 million for this particular hurricane.

The following report discusses various aspects of the Red Cross relating to planning, programming, budgeting, performance measurement and managerial control.

Administration of the Red Cross

The Red Cross has properly evolved as an organization with an effective change management strategy to be effective in their disaster management work around the world. Under “What we do” on the www.redcross.org website, it can be seen that the organization appears to follow a decentralized organizational structure with its international offices and branches around the world.

For the Hurricane Sandy program, the Red Cross (2012) began work immediately after various agencies became aware of the threat of the hurricane. The organization started the planning phase in order to manage it successfully.

planning

Planning is not the same in for-profit and non-profit organizations. Peters and Pierre (2012) have mentioned that the strategic planning of a for-profit organization is based on higher sales, market growth, higher target markets, revenue and hence net profits. You said that the strategic planning of a non-profit organization is based on greater benefit to society. The Red Cross has a similar type of planning in which they take care of society, especially against sudden disasters like Hurricane Sandy,

The Red Cross plans in accordance with its organization's mission and vision. The mission and principle of the Red Cross is to serve humanity whenever it is in trouble. The Red Cross cannot take on a project or program that is not related to its program. The Red Cross cannot help brokers who are experiencing financial difficulties due to the current recession in America as it is not in line with their mission and vision.

According to the Red Cross website, the organization plans after disasters and constant hunger and poverty. The planning takes place according to need. For example, when Hurricane Sandy was predicted, the Red Cross used all of its efforts and American resources to work on behalf of the people who might be affected by the hurricane.

programming

Bryson (2011) has done extensive research on public and non-profit organizations in their planning and programming arrangements. He said nonprofits plan and program with their mission and vision. You cannot program against their values. Strategic planning and programming should also be aligned. Senior management and the board of directors provide direction and approval for various programs. Conduct planning and programming with team-based activities. Potential customers are involved in the planning and initial programming in order to establish contacts for fundraising and donations.

The programming in the Red Cross follows the studies of Bryson (2011). They plan and work within their defined domains. It can be seen in the Hurricane Sandy Program by Red Cross (2012) that the Red Cross planned this before the problem actually started. The potential disaster was approved by the board because it aligned with their mission and vision. Programming has its value around the world in both for-profit and non-profit organizations. It is a way of managing all aspects of an organization.

budgeting

Funding for the Red Cross relies on fundraising and donations from the public and private sectors. The majority of non-profit organizations working for the good of mankind are based on donations to meet financial needs. Red Cross (2012) was able to raise $23 million for Hurricane Sandy disaster management through celebrities.

By budgeting non-profit organizations involved in humanitarian and disaster management work, financial resources can be raised as needed. For example, when Hurricane Sandy hit America, people began donating more than usual to the Red Cross. Similarly, other disaster management organizations have more opportunities to raise financial resources. (Weerawardenaa, McDonaldb & Mort, 2010)

Weerawardenaa, McDonaldb and Mort (2010) have further said that the nonprofit organizations that have proven to be effective and efficient in social work have a greater potential to generate financial resources. In America's current financial scenario, the whole country is in financial crisis due to higher inflation rate, higher unemployment and few business opportunities. Such current scenarios have limited some of the financial resources for the nonprofit organizations.

According to Vermeer, Raghunandan, and Forgione (2009), nonprofit organizations continue to play a large part in America's economy today. Some corruption and scandal issues have caused problems for the nonprofit industry, but they still have a unique impact. For example, when it comes to natural disasters, people turn to volunteer organizations. Organizations that have made a name for themselves enjoy more trust.

Performance measurement and management control

The Red Cross has developed a performance measurement strategy to assess their performance. In July 2004 they launched the "Performance Standards" chapter. On the Red Cross site (http://www.redcross.org.au/strategy-2015.aspx) the organization has mentioned its Strategy 2015 which focuses on performance measurement and governance management.

Achieving goals has been made mandatory at the Red Cross, where the organization must follow them. Performance is measured by managers to make improvements and take corrective actions. Performance is held accountable to stakeholders at the organizational level. Past and current organizational renewal projects are also analyzed for better future programs. Training and development will be part of the programs. (RedCross, Working as One – Strategy 2015, 2013)

Ridder and McCandless (2010) have focused on the human resource management of non-profit organizations such as the Red Cross. The authors agree that none of the nonprofit organizations can ignore the importance of human resource management in their programs. You must provide appropriate hiring, training, development, compensation and performance management programs. Human resource management plays a strategic role in an organization that cannot be ignored.

Evaluation of different programs should be done when a particular phase or the whole program is completed. For example, the Red Cross should have a full assessment and reporting on the Hurricane Sandy project. It will help them to know their weaknesses and strengths. The evaluation helps them to take corrective action in the future and to improve themselves.

Human resources management should focus on areas such as personnel costs, salaries, training, space, travel, development, hierarchy, structure, etc. It should be effective in allocating staff and volunteers to different programs. For example, for the Hurricane Sandy program, they can only use those volunteers who have high stamina and more willpower to fight against natural disasters.

Management in non-profit organizations

The management of a non-profit organization must have the same importance as in a for-profit organization. Finance, accounting, human resource management, strategic management, planning, control, training and development, performance management, assessment, corrective action, and all other business and managerial practices have a similar importance and impact on nonprofit organizations today.

Management of all kinds should be given appropriate space and focus in nonprofit organizations. A research showed that out of 229 non-profit organizations based on charities (such as the Red Cross), it was found that higher level non-profit organizations operating in accordance with modern business practices, technology and business strategy were able to achieve higher results. It also showed that such organizations with successful planning and implementation of various programs focused on strategic human resource management. (Guo, Brown, Ashcraft, Yoshioka, and Dong, 2011)

Red Cross and Hurricane Sandy

Through the Hurricane Sandy program, the Red Cross has published reports and online material demonstrating its fight against the natural disaster. With the planning and organization of the Red Cross, the organization was able to provide 1,400 evacuation centers for around 450,000 evacuees. More than 68 million meals have been provided to affected people. 1.4 million families were helped with basic needs such as food, groceries, clothing, etc. (RedCross, Hurricane Recovery Program, 2012)

The Red Cross has a positive image of showing teamwork and the idea of ​​being together in society. This is a marketing tactic also used by various for-profit organizations to show their togetherness approach. For example, Nokia "Connecting People" is a way for the company to show integration into the market and society. Similarly, the Red Cross has shared an image of being with the victims of Hurricane Sandy. They stood by the people and helped them regain their normal lives.

Emotional behavior is another tactic used by companies through advertising to attract the target market. The Red Cross also used emotional behavior to attract donations and financial resources to administer its Hurricane Sandy program. They were so effective in their emotional appeal and marketing that around 200,000 people volunteered to participate in the Hurricane Sandy program. The Red Cross's Hurricane Sandy program was successful, providing approximately $110 million in aid to victims. Red Cross management proved successful in fighting the disaster. (RedCross, Hurricane Recovery Program, 2012)

Current management control in a non-profit organization

The modern and current management control in profit and non-profit organizations has changed significantly. As the Red Cross operates in situations where risk and sudden management control requirements may arise, appropriate action must be taken. Power (2011) has mentioned “risk management” for situations where current organizations have to face sudden dynamic changes in the external environment.

Current management control in the modern world is also related to information technology. In order to keep up to date with the external environment, risk management and modern aspects of business, management control of various organizations must remain active with information technology in today's world. Information technology helps organizations to be efficient not only within the organization but also in the outside world, industry and the international market. (Li, Peters, Richardson and Watson, 2012)

In the modern business world of for-profit and non-profit organizations, performance management is another important aspect associated with risk management and information technology. The current management does not follow the typical or classic way of the old days where the number of production of a work was seen or calculated.

Organizations today see their employees as both individual employees and team/group colleagues. Individual performance is now measured in both tangible and intangible terms. Behavior, ethics, manner of communication, work itself, production, teamwork and other related aspects are part of performance measurement and management. Such modern management control practices have completely changed management practices. (Dyck & Neubert, 2008)

Recent events that have shaped and changed management control and performance management practices are international business expansion, the world turning into a global village, globalization, the whole world into a financial crisis, the interdependence of different industries on each other, etc. All these events hang together other today. Today the world is more connected. If a tsunami hits any part of the world, thousands of international companies and NGOs will join forces to save humanity.

Conclusion

For any program in a nonprofit organization like the Red Cross, it starts with planning. Planning is critical for both for-profit and non-profit organizations. The Red Cross was aware that Hurricane Sandy was coming and its consequences could be seriously devastating for many families. From the beginning, the organization began planning its program initiatives and marketing strategies to generate donations and charities.

Hurricane Sandy's program was properly defined with goals and mission. Thousands of volunteers have been registered and trained to help affected societies. During and after the program, donations were made to help victims and corrective actions were taken to be more effective in future programs.

Budgeting was done by the organization through donations. $110 was raised and spent on various subprograms under the Hurricane Sandy program. Management teams have also implemented performance measurement programs so that they can be demonstrated to stakeholders and corrective action can be taken in future programs.

It is important to see the leadership similarities between for-profit and non-profit organizations. There are many differences in terms of sales, revenue generation, target marketing, etc.; but internally there is an almost similar style of management, decision making, planning, hiring, training and development, performance measurement and evaluation.

A nonprofit organization also has a mission and vision that guides it for its ventures and programs. The Red Cross has a mission to serve humanity that was in alignment with Hurricane Sandy and so they took an active part in it. Management aspects of nonprofit organizations differ a little from other organizations, but are not alien to traditional organizations.