ARSI UNIVERSITY

FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE (MSc)

ASSIGNMENT ON ARTICLE REVIEW FOR THE COURCE OF

GOVERNMENT AND NFP ASSIGNMENT

BY

HABTAMU DEBELE ID/NO GS/EX/0156/12

SUBMITTED TO INSTRUCTOR; TEFERI (PHD)

AUGUST 2020
The authors John, Martjn, and Alice (2017)

The authors studied on the title of the Governance Challenges for Not-for-Profit Organizations:
Empirical Evidence in Support of A Contingency Approach. The main objective of the study was
to assess the governance challenges and contingencies in the NFP sector and its specific
objectives were: Identifying the governance challenges faced by NFP organizations and
exploring theoretical and practical implications of these challenges. In order to achieve these
objectives the Authors employed an online survey and semi-structured interview for data
collection. the major finding of the study revealed that NFP organizations are influenced by
internal and external contingencies that affect governance systems and processes, Other finding
that researchers obtained was the role of the board, monitoring system and attracting resources
attractions, Recruitment of suitable directors is a significant challenge for NFP organizations,
particularly concerning those NFPs with membership-based board models, In practice lack of
time and resources are obstacles for director development, Funding circumstances represent
contingencies that can affect the governance model of a NFP organization and Last but not least
The author finds that broad governance standards are likely to be too non-specific to provide
substantial guidance. Based on these findings the researchers concluded that the effectiveness
of governance systems is influenced by internal and external contingencies that NFP
organizations face, such as variations in board roles, stakeholder and membership demands,
funding arrangements, board member recruitment processes, skills of board members, and
resources for training and development and the researchers recommend that NFP organizations
should be able to choose how to model their governance frameworks according to different
circumstances, The NFP organizations should adapt the best practice governance systems by
using analytical tool that assist to identify major factors that influence the organizations, There
should be resource available to develop the skills and abilities of the directors, Generally the
Author recommended that the NPF for a shift of focus away from prescriptive and normative
NFP governance models, and contend that generic best practice governance standards for NFPs
ought not to be further pursued, and that a contingency approach is more promising.

N.B Its strength is the authors of the study could clearly explored the specific area of the problem on the
case and they could reveal the objectives of the study in short and precise manner and its weakness was
the researchers delaminated the research scope on only two approaches and the researchers employed
limited data collection method.