Problems of Management in The 21st Century, Vol. 11, No. 2, 2016

Vol. 11, No.
2, 2016
ISSN 2029-6932
PROBLEMS OF MANAGEMENT IN
THE 21ST CENTURY
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Prof. Dr. Vincentas Lamanauskas, University of Šiauliai & Scientific Methodical Centre „Scientia
Educologica“, Republic of Lithuania
Editorial Board
Prof., Dr. Constantin Bratianu, Academy of Economic Studies, Romania

Dr. Luca Bussotti, International Studies Center of ISCTE, Portugal
Dr. Camille Carbonnaux, University of Lille Nord de France, France
Assoc. Prof., Dr. Tsai-Hsin Chu, National Chiayi University, Taiwan
Dr. Ioan Constantin Dima, „Valahia“ University of Targoviste, Romania
Dr. Iwona Gorzeń-Mitka, Czestochowa University of Technology, Poland
Assoc. Prof., Dr. Dana Egerova, University of West Bohemia, Czech Republic
Dr. Jerzy Kaźmierczyk, Poznan University of Economics, Poland
Dr. Grzegorz Michalski, Wroclaw University of Economics, Poland
Dr. Jorge Lima de Magalhães, Oswaldo Cruz Foundation/FIOCRUZ, Brazil
Prof., Dr. Ivars Muzis, Riga Teacher Training and Educational Management Academy, Latvia
Prof., Dr. Stephen Nzuve, University of Nairobi, Kenya
Asst. Prof., Dr. Ivona Orzea, Academy of Economic Studies, Romania
Prof., Dr. Sonia Teresinha de Sousa Penin, University of Sao Paulo, Brazil
Prof., Dr. Chris Rensleigh, University of Johannesburg, South Africa
Asst. Prof., Dr. Nikhil Chandra Shil, American International University, Bangladesh
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ISSN 2029-6932 © SMC „Scientia Educologica“, Lithuania, 2016

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Vol. 11, No. 2, 2016
Contents 67
Editorial
SHAPING OF ORGANIZATIONAL RESILIENCE IN AN UNSTABLE WORLD:

POSSIBILITY OR NECESSITY?
Iwona Gorzeń-Mitka ................................................................................................... 68
Articles
STRATEGIC MANAGEMENT PRACTICES AS A KEY DETERMINANT OF

SUPERIOR NON-GOVERNMENTAL ORGANIZATIONS PERFORMANCE
Mohammed Aboramadan, Elio Borgonovi .......................................................................... 71
HOW OUTSOURCING CAN CONTRIBUTE TO THE EFFICIENCY AND

EFFECTIVENESS IN THE PUBLIC SECTOR: SOME INDICATORS ABOUT PORTUGAL
Maria da Conceição da Costa Marques ..............................................................................93
THE SPECIFIC AND GENERAL NATURE OF LOGISTICS TASKS

Beáta Sz. G. Pató, Zoltán Kovács, László Szabó ..................................................................107
NONPROFIT MARKETING IN KOPAČKI RIT NATURE PARK AS TOURIST DESTINATION

Vesna Vučemilović, Biserka Vištica ..................................................................................124
Information
INSTRUCTIONS FOR AUTHORS ..............................................................................131
PROBLEMS OF PSYCHOLOGY IN THE 21st CENTURY ............................................... 133
QUALITY ISSUES AND INSIGHTS IN THE 21st CENTURY ......................................... 134
JOURNAL OF BALTIC SCIENCE EDUCATION ............................................................ 135
GAMTAMOKSLINIS UGDYMAS / NATURAL SCIENCE EDUCATION................................136
2nd INTERNATIONAL BALTIC SYMPOSIUM ON SCIENCE AND TECHNOLOGY

EDUCATION (BalticSTE2017) ................................................................................. 137
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68
SHAPING OF ORGANIZATIONAL
RESILIENCE IN AN UNSTABLE WORLD:
POSSIBILITY OR NECESSITY?
Iwona Gorzeń-Mitka
Czestochowa University of Technology, Czestochowa, Poland
Email: iwona.mitka@zim.pcz.pl
Increased complexity of economic, social and technological systems cause that crises,
uncertainty and risk have become an integral part of modern world. Undoubtedly, today’s
organizations face the necessity of dealing with a growing number of various risk factors-
generators: disasters, sudden bankruptcies of key participants of supply chain, loss of reputation,
highly innovative products/technologies entering the market or risk resulting from introducing
new legal regulations (Gorzeń-Mitka, 2015). Thus, U.Beck’s statement that the 21st century
can be described as the century of risk seems right (Beck, 2009).Operation of companies in the
current environment requires effective trade-offs among economic, environmental and social
outcomes while maintaining the longevity of organizational efficiency (Eltantawy, 2016). For
example, Maslaric et al. (2013) indicate that, modern trends in new business models, which
assume a strive for continuous improvement in efficiency by cutting costs and reducing waste
in every supply chain processes, create a new risk perspective. In this situation, striving to
achieve balance between organizational efficiency and organizational resilience is more
than a necessity. This has caused seeking for new approaches to protect value and results of
our activities. One of them is creation of resilience. According Oxford Advanced Learner's
Dictionary word "resilience" has two meanings: the ability of people or things to feel better
quickly after something unpleasant and the ability of a substance to return to its original shape
after it has been bent, stretched or (Oxford Advanced Learner's Dictionary, 2016).
Resilience is a multidisciplinary concept. It has become very interesting for researchers
in recent years. It is finding application in several scientific fields such as social sciences (Walker
& Cooper, 2011, pp. 143-160; Pike, et al. 2010, pp. 59-70; Martin, 2012, pp. 1-32), medicine,
psychology (Toland & Carrigan, 2011, pp. 95-106), environmental science (Folke, et al. 2010;
Miller et al., 2010), engineering (Steen & Aven, 2011, pp. 292-297), agricultural and biological
sciences (Dakos et al. 2015), disaster risk reduction, economy or organizational management
(Wardekker et al., 2010, pp. 987-998; Burnard & Bhamra, 2011, pp. 5581-5599).
The concept of resilience was adopted to management research as a practical response
to the decreasing lifespan of organisations. Organizational resilience is nowadays also
widely researched in the management literature. As suggest Lengnick-Hall et al. (2011),
resilient organizations thrive despite experiencing conditions that are surprising, uncertain,
often adverse, and usually unstable. As such, it is not surprising that many definitions of
organizational resilience have been offered. For example, British Standard, BS 65000 (2014)
defines organizational resilience as "ability of an organization to anticipate, prepare for, and
respond and adapt to incremental change and sudden disruptions in order to survive and
prosper. According to Australian Government "resilience is an organizational approach that
embraces asset and resource protection, performance and strategic leadership, organizational
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development, and a responsive and adaptive culture". McManus et al. (2008), in turn, define 69
this concept as "a function of an organization’s situation awareness, management of key stone
vulnerabilities and adaptive capacity in a complex, dynamic and interconnected environment”.
In academic literature we can find a few leading trends, how to create an organizational
resilient. Some researchers identify the organizational resilience as variety of approaches:
risk management, crisis management or business continuity management. But others propose
to develop an organization's capacity for resilience as through evaluation resilient indicators
(McManus, 2008; Seville et al., 2008), strategically managing human resources (Lengnick-Hall
et al., 2011), develop a tolerance to risk (Mitchell & Harris, 2012) and create risk- aware culture
(Gorzeń-Mitka, 2015).
Organizational resilience has become as a key competitive factor. Some researchers
suggest, that, especially in risk management and crisis management context, good risk taking
and communication on risk they are the leading factors to create enterprise resilience. Some
researchers (Seville et al., 2008; Lee et al., 2013) point out that organizational resilience is
stimulated by the crisis. It initiates by a short period of rapid change (i.e. the adaptive cycle), that
can be a source of the system reorganization and its renewal. It's very important to remember,
that resilience is not only the ability of an organization or community to rebound following a
crisis or a disaster event. It is also the ability to absorb strain and withstand destructive disasters.
As points out McCreight (2010), building resilience may often require a shift from a reactive to
a proactive approach for risk/crisis management and business continuity /emergency planning.
In the opinion of the author, although McCreight (2010) discusses the resilience problems with
respect to the city, state or region context, it may be adapted to the situation in enterprises.
As indicate, in turn, Burnard and Bhamra (2011) through proactively adjusting to
environmental uncertainty and building a risk-aware culture, organisations will not only be
better positioned and prepared to deal with the demands of high-impact events, but also seek
opportunity and gains through uncertainty. As such, through resilience, organisations may be
better placed to take and manage risks. A properly implemented proactive resilience strategy
should above all create and protect value, i.e. protect the achievement of objectives and increase
an organization’s effectiveness (Gorzeń-Mitka, 2008, p. 395-402).
Most academic studies on resilience in different areas highlight that resilience has
become a critical element of value protection in an organization. But some of them added,
that resilience especially in organizational context can effectively enable the use of additional
opportunities.
The concept of organisational resilience is still a largely undeveloped area that
yields an interesting stream of research. But, to recap, in my opinion, it can be accepted that
organizational resilience is not only NECESSITY, but it is also POSSIBILITY and the way to
create additional value in enterprise.
I hope that these few remarks on resilience will encourage you to getting acquainted with
the latest studies of the of shaping of resilience issues in modern organizations and that you will
find “added value” in them for yourselves.
References
Australia. Attorney-General's Department (2011). Organisational resilience: Position paper for critical
infrastructure: Australian case studies. Attorney-Generals Dept, Barton, A.C.T
Beck, U. (2009). World at risk. Policy Press, Cambridge.
BS 65000 (2014) Guidance on organizational resilience. http://shop.bsigroup.com/ProductDetail/?p
id=000000000030258792.
Burnard, K., & Bhamra, R. (2011). Organisational resilience: Development of a conceptual framework
for organisational responses. International Journal of Production Research, 49 (18), 5581-5599.
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Vol. 11, No. 2, 2016
70 Dakos, V., Carpenter, S. R., van Nes, E. H., & Scheffer, M. (2015). Resilience indicators: Prospects and
limitations for early warnings of regime shifts. Philosophical Transactions of the Royal Society B:
Biological Sciences, 370 (1659), 1-10. doi:10.1098/rstb.2013.0263.
Eltantawy, R. A. (2016). The role of supply management resilience in attaining ambidexterity: A dynamic
capabilities approach. Journal of Business and Industrial Marketing, 31 (1), 123-134. doi:10.1108/
JBIM-05-2014-0091.
Folke, C., Carpenter, S. R., Walker, B., Scheffer, M., Chapin, T., & Rockström, J. (2010). Resilience
thinking: Integrating resilience, adaptability and transformability. Ecology and Society, 15 (4).
Gorzeń-Mitka, I. (2015). Management challenges in the context of risk culture. Problems of Management
in the 21st Century, 10 (2), 60.
Lee, A. V., Vargo, J., Seville, E. (2013). Developing a tool to measure and compare organizations’
resilience. Natural Hazards Review, 14 (1), 29-41.
Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity for organizational
resilience through strategic human resource management. Human Resource Management Review,
21 (3), 243-255. doi:10.1016/j.hrmr.2010.07.001.
Martin, R. (2012). Regional economic resilience, hysteresis and recessionary shocks. Journal of Economic
Geography, 12 (1), 1-32. doi:10.1093/jeg/lbr019.
Maslaric, M., Backalic, T., Nikolicic, S., & Mircetic, D. (2013). Assessing the trade-off between lean and
resilience through supply chain risk management. International Journal of Industrial Engineering
and Management, 4 (4), 229-236.
McCreight, R. (2010). Resilience as a goal and standard in emergency management. Journal of Homeland
Security and Emergency Management, 7 (1) doi:10.2202/1547-7355.1700.
McManus, S. T. (2008). Organisational resilience in New Zealand (Doctoral dissertation, University of
Canterbury). http://www.resorgs.org.nz/images/stories/pdfs/organisational%20resilience%20
in%20new%20zealand.pdf.
McManus, S., Seville, E., Vargo, J., Brundsdon, D. (2008). Facilitated process for improving organization
resilience. Natural Hazards Review, 9 (2), 81-90.
Miller, F., Osbahr, H., Boyd, E., Thomalla, F., Bharwani, S., Ziervogel, G., & Nelson, D. (2010). Resilience
and vulnerability: Complementary or conflicting concepts? Ecology and Society, 15 (3).
Mitchell, T., & Harris, K. (2012). Resilience: A risk management approach. ODI Background Note.
Overseas Development Institute: London.
Oxford Advanced Learner's Dictionary (2016) http://www.oxfordlearnersdictionaries.com/definition/
english/resilience?q=resilience.
Pike, A., Dawley, S., & Tomaney, J. (2010). Resilience, adaptation and adaptability. Cambridge Journal
of Regions, Economy and Society, 3 (1), 59-70. doi:10.1093/cjres/rsq001.
Seville, E., Brunsdon, D., Dantas, A., Le Masurier, J., Wilkinson, S., & Vargo J. (2008). Organisational
resilience: Researching the reality of New Zealand organisations. Journal of Business Continuity
& Emergency Planning, 2 (3), 258-266.
Steen, R., & Aven, T. (2011). A risk perspective suitable for resilience engineering. Safety Science, 49 (2),
292-297. doi:10.1016/j.ssci.2010.09.003.
Toland, J., & Carrigan, D. (2011). Educational psychology and resilience: New concept, new
opportunities. School Psychology International, 32 (1), 95-106. doi:10.1177/0143034310397284.
Walker, J., & Cooper, M. (2011). Genealogies of resilience: From systems ecology to the political economy
of crisis adaptation. Security Dialogue, 42 (2), 143-160. doi:10.1177/0967010611399616.
Wardekker, J. A., de Jong, A., Knoop, J. M., & van der Sluijs, J. P. (2010). Operationalising a resilience
approach to adapting an urban delta to uncertain climate changes. Technological Forecasting and
Social Change, 77 (6), 987-998. doi:10.1016/j.techfore.2009.11.005.
Received: November 05, 2016 Accepted: December 12, 2016
Iwona Gorzeń-Mitka PhD., Assistant Professor, Faculty of Management, Czestochowa University

of Technology, Al. Armii Krajowej 19B, 42-201 Czestochowa, Poland.
Email: iwona.mitka@zim.pcz.pl
Website: http://www.zim.pcz.pl/profile/295,iwona-gorzen-mitka
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STRATEGIC MANAGEMENT PRACTICES 71
AS A KEY DETERMINANT OF SUPERIOR

NON-GOVERNMENTAL ORGANIZATIONS
PERFORMANCE
Mohammed Aboramadan
University of Pavia, Italy
E-mail: Mohammed.aboramadan01@universitadipavia.it
Elio Borgonovi
Bocconi University, Italy
E-mail: elio.borgonovi@unibocconi.it
Abstract
Based on a review of prior studies, this research seeks to enrich the management literature by examining
and empirically testing the impact of each of the strategic management practices (environmental
scanning, strategy formulation, strategy implementation, and strategy evaluation-monitoring) on
financial and non-financial performance of non-governmental organizations (NGOs). A questionnaire
was developed and validated to measure strategic management practices and NGOs financial and non-
financial performance. Questionnaires were distributed to projects coordinators, programs officers and
administration officers of seventy-nine international NGOs operating in the Palestinian Territories. 237
questionnaires were distributed and 160 questionnaires were returned and were usable for statistical
analysis. The research results demonstrates that strategic management practices have positive impact not
only on financial performance but on non-financial performance of these organizations. Moreover, the
research recommends that NGOs rely on strategic management as a means to achieve high performance.
Key words: financial performance, Non-Governmental Organizations, non-financial performance,
strategic management practices.
Introduction
The question "Why should an organization carry out strategic management practices?"
needs to be viewed by understanding the benefits strategic management gives to an organization.
Strategic management provides a framework for controlling managerial activities, allocating
better resources, supporting objectives and decisions and enhancing performance.
Strategic management brings considerable benefits not only to for–profit businesses and
government, but also to NGOs (Allison & Kaye, 2005; Bryson & Roering, 1988; Fowler, 1996).
This is due to the fact that NGOs operate in contexts which are characterized by complexity,
risks and financial uncertainty. Adding to that, Lewis (2003) claimed that NGOs work in
unstable, conflict-prone areas and alongside predatory or ‘failing’ states which may view their
presence with suspicion. In the NGO sector, according to Fowler (1997), the key challenge for
NGOs is the struggle to link vision, mission and role clearly. It is strategic management that
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72 offers these organizations the compass, process and strategy to deal with transformation made
necessary by difficult environments in order to deliver high quality services at low cost to its
customers (Koteen, 1997). Mosley, Maronick & Katz (2012) found that engaging in strategic
management efforts allows organizations to deal with funding uncertainty. Thus, the lack of
such a philosophy would result in having short-term oriented NGOs which could be harmful
for its financial sustainability. However, strategic management can have a fundamental effect
on NGOs beyond the potential funding benefits (Crittenden & Crittenden, 2000). For instance,
strategic management can help NGOs build and enhance relationships with key stakeholders
such as donors and partners and establish collaborations with external organizations (Abzug &
Webb, 1999; Allison & Kaye, 2005; Balser & McClusky, 2005; Boyne & Walker, 2004; Brown,
2010; Bryson, 2011). Siciliano (1997) demonstrated that those NGOs who plan, improve their
social performance and not only their financial one. Moreover, Strategic management might
assist NGOs not only to efficiently utilize limited resources, but also to support program and
project effectiveness and efficiency (Mara, 2000; McHatton, Bradshaw, Gallagher & Reeves,
2011; Medley & Akan, 2008). This supports the assumption that management effectiveness
may lead to better program performance since such effectiveness provides a foundation for
improvement and growth of the NGOs’ programs and services (Letts, Ryan & Grossman, 1999).
The literature has heavily underlined the adoption of strategic management in NGOs as
a mechanism to improve performance (Allison & Kaye, 2005; Bryson; 2011; Moore, 2000;
Morrisette & Oberman, 2013; Poister, Pitts & Edwards, 2010). Still, regardless of what has been
written on strategic management in the NGO sector, limitations exist concerning its relationship
with the performance. This has been stressed by some writers such as Stone et al. (1999) who
claimed that the relationship between strategic management process and NGOs’ performance
is a black box. Moreover, Poister et al. (2010) added that there is still no empirical support
concerning the relationship between strategic management practices and NGOs’ performance.
Therefore, this research attempts to test the impact of strategic management practices on the
performance of NGOs, highlighting the most relevant financial and non-financial performance
indicators. The significance of this paper comes from the fact that it outlines research carried out
in order to support and enrich and fill the gaps in the literature regarding strategic management
and performance in NGOs. It will also generate awareness among these organizations on the
importance of practicing strategic management as a means to achieve high organizational
performance.
NGOs Financial and Non-Financial Performance: What to Measure
Thinking of NGOs’ performance as a variable to measure is not an easy task, since it

is challenging to measure the performance of organizations whose main goal is to promote a
social mission (Drucker, 2010; McHatton et al., 2011; Moore, 2000; Oster, 1995; Sawhill &
Williamson, 2001). Moreover, these organizations have complicated relationships between their
activities and outcomes of their interventions (Fottler, 1981; Hatten, 1982; Kanter & Summers,
1994; Newman & Wallender, 1978; Nutt, 1984). The classical attempts of defining performance
in these organizations have always been those of using NGOs’ access to funds as the main NGO
performance indicator (Pfeffer & Salancik; 1978; Yuchtman & Seashore, 1967). Although
access to funds or fundraising efficiency is a valid indicator for measuring the financial strength
of NGOs, it doesn’t represent the full picture for NGOs’ financial performance. In addition to
the ability of acquiring funds, a comprehensive measurement of NGOs’ financial performance
should combine NGOs declaration of their financial activities and their demonstration of
financial transparency (Keating & Frumkin, 2003; McCarthy 2007; Whitaker, Altman-Sauer &
Henderson, 2004), together with their fundraising ability.
It is important also to treat these NGOs as projects-based organizations: as such the
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performance of their programs and services delivery should be scrutinized along with financial 73
performance. For instance, Kareithi & Lund (2012) addressed the fact that these organizations
are engaged in providing services and projects to their targeted beneficiaries so their performance
has to take into consideration the effectiveness of these services. Lewis (2009) added that
efficiency and effectiveness are performance measures of NGOs interventions. Several
frameworks have suggested, even if there is still no mutual agreement, that NGO programs can
be assessed by programs' impact, efficiency, and outcomes (Benjamin & Misra, 2006; Carman,
2007; Teelken, 2008). In addition, to the previous, mentioned indicators that partnership (Hall
& Kennedy, 2008; Niven, 2008) and quality (Hatry, 1997; Niven, 2008) are other important
measures of NGOs operations. Table 1 represents a summary of NGOs’ performance measures
and their main focus.
Table 1. Summary of performance measures in NGOs.
Performance Dimension Definition/ Focus

Financial The ability of identifying sources of funds and access to them (Andreasen
Perfor- & Kotler, 2008; Kanter & Summers, 1994; Lewis, 2009; Pfeffer & Salan-
mance cik, 1978; Yuchtman & Seashore, 1967). An organization is fundraising
Fundraising Efficiency
efficient if it gets a high response rate, minimizes its fundraising costs,
writes effective funding proposals (Niven, 2008), generates funds using
available internal funds (Lewis, 2009).
The preparation and declaration of financial information and reports con-
cerning NGOs programs and services to ensure honesty integrity and
accountability (Keating & Frumkin, 2003; McCarthy, 2007; Whitaker et
Financial Transparency
al., 2004). Moreover, it includes the use of external auditors, committing
to financial and accounting standards (Geer et al., 2008; Whitaker et al.,
2004).
The best utilization of financial resources acquired for the achievement of
Financial Efficiency the programs desired outputs, facilities (Barman, 2007; Kendall & Knapp,
2000; Median-Borja & Triantis, 2007).
Non-Finan- What is produced as a result of an NGO's services such as improved
cial Perfor- conditions for the immediate targeted beneficiaries (Bagnoli & Megali,
mance 2011; Barman, 2007; Greenway, 2001; Hall & Kennedy, 2008; Lampkin,
Winkler, Kerlin, Harry, Natenshon, Saul, Melkers & Sheshadri, 2006;
Outcomes
LeRoux & Wright, 2010; Letts et al., 1999; Moxham, 2009b; Mullen, 2004;
Penna, 2011).
To what extent is the organization achieving its planned goals and targets
(Fine & Snyder, 1999).
The best utilization of non-financial resources (staff, equipments, time)
Non- Financial Efficiency acquired for the achievement of the programs desired outputs, facilities
(Barman, 2007; Kendall & Knapp, 2000; Median-Borja & Triantis, 2007).
The ultimate direct or indirect long-term public value/effect and NGO
wishes to create for a community as a consequence of its programs and
Impact
services (Greenway, 2001; Hills & Sullivan, 2006; Lampkin et al., 2006;
Moore, 2003; Penna, 2011).
Networking and collaborating with other entities to support an NGO inter-
vention (Bagnoli & Megali; 2011; Hall & Kennedy, 2008; Herman & Renz,
2008; Niven, 2008).
Partnership Partnership can be assessed by the ability of NGOs to attract local, inter-
national and private-based partners. In other terms, it might be assessed
by the diversity of the network an NGO can build with other organizations
or entities (Niven, 2008).
The quality of the services provided by an NGO to its clients (Hatry, 1997;
Niven, 2008). Indicators to be taken into account are adherence to stand-
Quality ards of quality in service/ project delivery (Niven, 2008) and stakehold-
ers’ satisfaction, innovation of the provided services (Keystone for Bond,
2006).
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74 Empirical Review and Research Hypotheses
Strategic management can be interpreted as a process that produces managerial decisions

and actions which can be used to reach high levels of efficiency, effectiveness and overall
performance. The vast majority of strategic management scholars view strategic management
as a process that starts with an analysis of the environments, passes to strategy formulation,
strategy implementation and ends up with evaluation and monitoring of its strategies and
objectives (Allison & Kaye, 2005; David, 2009; Morden, 2007; Pitts & Lei, 2003; Thompson
& Strickland; 2003; Wheelen & Hunger; 1998; Wheelen & Hunger, 2006; Wright et al.,
1998). Poister & Streib (2005) mentioned that organizations need not only produce a strategic
plan, but also develop implementation plans, and finally link their strategies and plans with
their performance evaluation system. These stages in the strategic management process are
associated with generating alternatives to problems or strategic issues, making the alternative
produced function by adapting the structure and creating a supportive culture, and finally,
collecting evaluation feedback concerning the overall progress of these alternatives (Gluck,
Kaufman & Walleck, 1980).
The empirical research on strategic management in the NGO sector has been limited,
and examining mainly the adoption of several planning techniques. For instance, authors such
as Brown & Covey (1987), Crittenden, Crittenden & Hunt (1988), Jansson & Taylor (1978),
Jenster & Overstreet (1990), Odom & Boxx (1988), Stone (1989), Tober (1991), Unterman
& Davis (1982), and Wolch (1990) found in their studies that some NGOs do not utilize
strategic management or strategic planning philosophy, but rather they are more concerned
with short-term planning and informal planning procedure approaches. Moreover, the literature
reveals that the majority of the studies focus on the impact of organizational factors, mainly
size, experience and management styles, on the adoption of planning and how planning can
impact strategy outcomes in terms of the organizational hierarchy and mission attainment.
According to Odom & Boxx (1988), Tober (1991), Unterman & Davis (1982), Webster &
Wylie (1988), Wolch (1990), and Young & Sleeper (1988), larger NGOs are more inclined to
develop strategic plans than smaller NGOs. Odom & Boxx (1988) explained the link between
size and planning because of the need for greater coordination. Others such as Stone (1989)
attributed it to donor prerequisites. Young and sleeper (1988) considered that this is due to the
availability of the resources, while Jenster & Overstreet (1990), Unterman & Davis (1982), and
Wolch (1990) linked this with the availability of more qualified and experienced managers.
Schmid (1992) in his research found that the environment has an impact on the nature of the
strategy and structural design in NGOs. Moreover, he concluded that uncertain environments
lead to relatively informal decentralized structures while more stable environments lead to
more centralized structures. Other studies went on to investigate strategy implementation in
the NGO sector in which the majority of them examined which factors can affect the strategy
implementation phase. Studies conducted by Bartunek (1984) and Vogel & Patterson (1986)
demonstrated that major policy changes in the external environment produce important changes
in the structure of the NGO which will ultimately affect the strategy implementation. Martin
& Gilsson (1989) demonstrated that the social environment affects the values, leadership style
and structure of the NGOs. Moreover, Schmid (1992) concluded that organizational change or
instability impact organizational factors that will affect strategy implementation.
Generally, it can be said that the vast majority of studies that addressed strategic
management practices and performance were conducted in the business field or in general
organization terms. Studies such as Ahituv, Zif & Machlin (1998), Garg, Walters & Priem
(2003), Kohn (2005), Miller (1994), and Strandholm & Kumar (2003) found that environmental
scanning is an influencing variable on an organization performance. Other studies like Ansoff,
Avner, Brandenburg, Portner & Radosevich (1970), Bracker & Pearson (1986), Burt (1978),
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Fredrickson (1986), Guth (1972), Robinson & Pearce (1988), Sapp & Seiler (1981), and Welch 75
(1984) demonstrated that engaging in planning and strategies formulation would definitely
affect the performance. Also, it has been highlighted that bad or good performance depends
mainly on the implementation of strategy (Kennedy, Goolsby & Arnould, 2003; Simester,
Hauser, Wernerfelt & Rust, 2000). Kaplan and Norton (2005) claimed that a failure in strategy
implementation can result in a gap between strategy and performance. Bonoma & Crittenden
(1988) mentioned that the weaker the strategy implementation phase, the poorer the performance
will be.
On the other hand, the research on this relationship in the NGO sector is very limited, and
the relationship is not obvious (Lubelska, 1996; Singh, 1996 Cited in Courtney, 2002; Poister et
al., 2010; Stone, Bigelow & Crittenden, 1999). Few empirical investigations endeavored to test
the association between the utilization of formal planning and performance in NGOs. Crittenden,
Crittenden & Hunt (1988), Jenster & Overstreet (1990), and Odom & Boxx (1988) claimed
that adopting and practicing formal planning by these NGOs was related to organizational
performance in terms of access to funding. Siciliano (1997) on the other hand demonstrated a
relationship between formal process of planning and both financial measures (represented by
total ratio of revenues to expenses) and social mission fulfillment of NGOs. Moreover, several
studies demonstrated that there is a positive relationship between the use of planning and key
effectiveness indicators including organizational and social measures of effectiveness such as
board involvement (Bradshaw, Murray & Wolpin, 1992; Siciliano & Floyd, 1993). Also, studies
on strategy implementation did not emphasize the impact of this phase on NGOs’ performance.
Among those who did, they did not specify the measures and indicators of performance. Some
of these studies highlighted general indicators of effectiveness. For instance, Bailey (1992) and
Kushner & Poole (1996) mentioned that the level of centralization in the NGO structure and
administration systems impact the degree to which the strategy is implemented and the level of
effectiveness in NGOs. Also, Golensky (1993) and Murray, Bradshaw & Wolpin (1992) found
that the shape of the relationship inside the NGOs affect its effectiveness.
Recently, a few studies were conducted in an attempt to enrich the literature regarding
the relationship between strategic management and NGO performance. Blackmon (2008)
investigated quantitatively the impact of strategic planning on non-profits performance using
the balanced scorecard approach in which he found a significant relationship between strategic
planning and NGOs’ financial performance. Furthermore, Smith (2008) found, in a qualitative
research sampling two nonprofits, that strategic management practices in NGOs result in more
productive outcomes in nonprofits’ performance. Hu, Kapucu & O’Byrne (2014), who surveyed
twenty small community based organizations, demonstrated that strategic management has an
impact on the way NGOs serve community needs and deliver their programs and services.
Finally, using a large-scale survey of strategic planning, Reid, Brown, McNerney & Perri
(2014) found that 93% of the most successful organizations, regardless of size, budget, declared
that their strategic management efforts have impact on their overall success. They added that
both strategic plan development, an ongoing implementation practices and evaluation and
assessment represent strategic management practices.
Based on the previous discussion and given the fact that there still exists a gab in the
relationship between strategic management and NGOs’ performance, we propose a set of
hypotheses assuming that each of the strategic management practices contribute positively to
NGOs’ financial and non-financial performance. The hypotheses are the following:
H1: Environment analysis has a significant positive influence on the (a) financial
performance and (b) non-financial performance of NGOs.
H2: Strategy formulation has a significant positive influence on the (a) financial performance
and (b) non-financial performance of NGOs.
H3: Strategy implementation has a significant positive influence on the (a) financial performance
and (b) non-financial performance of NGOs.
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76 H4: Strategy evaluation and monitoring has a significant positive influence on the (a) financial
performance and (b) non-financial performance of NGOs.
Methodology of Research
The research takes a positivist view because the theory is tested by examining relationships
among variables without meddling with the variables being examined. A quantitative approach
is carried out in this research to test the hypotheses. The research adopts a correlational-survey
research design. The questionnaires of the research were distributed and re-collected late
summer of 2015 (July-September) using drop-off and pick up method.
Population, Sample and Target Respondents
The research population includes all the active international NGOs in the Palestinian
territories working in different areas and serving different sectors, which totals 99 NGOs
according to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA).
They were selected because they have the appropriate size, experience and enough resources
to practice some forms of strategic management practices, as it's not realistic to select small,
inexperienced organizations with poor resources and programs. Larger NGOs are more likely
to plan than smaller ones (Odom & Boxx, 1988; Stone, 1989, Tober, 1991; Unterman & Davis,
1982; Webster & Wylie, 1988; Wolch, 1990). Moreover, these NGOs contribute economically
to the communities and the target beneficiaries they serve. International NGOs represent a new
context for investigating managerial relationships in NGO research. They were also chosen
because they were reachable by telephone, fax and email. Finally, these organizations were in a
better position to provide the necessary information.
A random sample of 79 NGOs was selected from the ‘‘A to Z’’ list provided by OCHA,
Palestine Office. Then, a purposive sampling was used to select the target respondents. The
target respondents of the research were program officers, project managers ''coordinators'', and
administration officers. They were chosen for their perceived understanding and knowledge,
as appeared to other NGO employees, know more than other employees in the NGOs in terms
of policies, strategies, financial position, project performance and performance in general.
Moreover, these respondents represents the most important working positions in the NGO
context. Three questionnaires were administered to each selected NGO to be filled out by
the targeted respondents. Of the 237 questionnaires distributed, 160 (67.5 per cent) usable
questionnaires were returned.
Scale Development
A questionnaire consists of three sections and was designed to explore the relationship
between the research variables. The first section includes questions concerning the respondents’
profile and the organization’s characteristics. The second section is composed of questions
used to evaluate the extent to which strategic management practices, including environmental
scanning, strategy formulation, strategy implementation and strategy evaluation, are applied in
their NGOs. The last section contains questions on financial and non-financial performance of
NGOs.
The questionnaire was evaluated by a panel of three arbitrators who have academic and
practical experience in NGOs. One of the arbitrators was a senior director of an Italian NGO
(We World) based in Milan, the second was the head of the CERGAS research center at the
Bocconi university of Milan, and the third was a certified consultant of NGOs and international
institutions in the Palestinian Territories. The experts were asked to judge the questionnaire in
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terms of the following evaluation criteria: understandability, importance, relevance, and length. 77
Based on the experts judgment, some of the questions were removed, others were modified
and new questions were added to some of the research variables. A further step to pilot the
questionnaire was to conduct personal interviews with small group (N=6) of NGO’s project
coordinators, program officers and administration officers. The main objective of the interview
was to let the interviewees assess the questionnaire in terms of formatting, wording, design,
length. Moreover, they were asked to identify any item that is not clear and to add comments on
the overall items of the questionnaire. The results of this procedure were of extreme importance
since the respondents had some concerns concerning the length of the questionnaire, which
they asked to reduce length. The interviewees had identified some duplicated items. All the
comments given by the interviewees were taken into account.
Each of the four strategic management practices was measured using a multi-item scale
adapted from previous studies such as Analoui & Samour (2012), Hu et al. (2014), Mosley
et al. (2012), and Poister & Streib (2005). Seven items were used to measure environmental
scanning, six items for strategy formulation, seven items for strategy implementation, and
ten items for strategy evaluation and monitoring. Each item was measured using a five-point
likert scale to assess up to which extent strategic management practices are applied in these
organizations, with 1 indicating no extent of application and 5 indicating a great extent of
application. On the other side, two subjective rankings were developed to measure financial
and non-financial performance. Multi items on fundraising efficiency, financial transparency,
and program financial efficiency were generated from the literature to measure NGOs’ financial
performance. Similarly, multi items on program effectiveness, program impact, program non-
financial efficiency, partnership, and quality were developed to measure NGOs’ non-financial
performance. Responses to each item ranged from 1 (strongly disagree) to 5 (strongly agree).
Table 2 represents the scales used to measure strategic management practices. Included
are the Spearman Correlation of each item with each scale. The results show that the P-values
of the correlations for the items of the scales environmental scanning, strategy formulation,
strategy implementation, strategy evaluation are less than 0.05, so the correlation coefficients of
items used are all significant at α = 0.05. Therefore, it can be said that the items of these scales
are consistent and valid to measure what they were set for. Also, the internal consistency Alpha
coefficients ranged from 0.82 to 0.94. The results of Alpha Coefficients are satisfying and fits
with the threshold value of 0.70 of Nunnally & Bernstein (1994).
Similarly, table 3 and 4 show the scales used to measure financial performance and
non-financial performance of NGOs. Included are internal consistency correlation values for
each item with its sub-scale under the main scale. All correlations of the items of fundraising
efficiency, financial transparency, program financial efficiency, program outcomes, program
non-financial efficiency, program impact, partnership and quality exceeded 0.50 and their
P-values are less than 0.05, so the correlation coefficients of items used are all significant at α
= 0.05. Therefore, it can be said that the items of these sub-scales are consistent and valid to
measure what they were set for. The internal consistency Alpha coefficients for both scales and
sub-scales were higher than 0.70, except program financial efficiency with an Alpha value of
0.60. This can be tolerated since program financial efficiency was measured using 2 items and
the Apha is sensitive to the number of items used to measure a certain scale or sub-scale.
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78 Table 2. Questionnaire items used in four scales measuring strategic management

practices.
Item Correlated Item-

Questionnaire Item Question
Number Total Correlation
Environmental Scanning
1 The identification of the external threats and opportunities. 0.703**
2 The identification of the internal weaknesses and strengths. 0.695**
The analysis of environmental factors such as the economic, political, social and
3
technological ones. 0.748**
The determination of primary and secondary stakeholders influenced by the organi-
4
zation's interventions. 0.761**
5 The analysis of the needs of the communities and the potential beneficiaries. 0.803**
6 The participation of the organization employees in analyzing the environment. 0.547**
7 The participation of local consultants in analyzing the environment. 0.649**
Strategy Formulation
The establishment of objectives that have long term nature. (more than one year-
1
based objectives). 0.726**
2 The development of strategic alternatives and selecting a strategy among them.
0.833**
The revision and modification of the mission statement, strategies and plans in light
3
of threats/ opportunities and strengths/ weaknesses. 0.636**
The participation of the internal stakeholders (employees, board, etc) in formulating
4
the strategies and plans. 0.768**
The communication of mission and strategies to external the stakeholders (donors,
5 0.603**
partners, etc).
6 The reliance on consultants in developing the strategy. 0.773**
Strategy Implementation
1 The development of clear rules and procedures to guide strategic plans. 0.784**
The development of short term objectives, (equal or less than one year-based
2
objectives). 0.828**
The allocation of sufficient financial, human and other resources to implement the
3
strategies and plans. 0.784**
The establishment of clear activities or steps needed to accomplish the short term
4
goals. 0.694**
The adjustment of the organization structure to adapt with new changes brought by
5
their new strategic plans and decisions. 0.648**
6 The support from leadership to implement strategies. 0.710**
The organizational culture (core values, beliefs and norms) enables us to implement
7
our strategic plans. 0.726**
Strategy Evaluation and Monitoring
1 The development of a monitoring system. 0.886 **
2 Monitoring the strategic plans on regular basis. 0.865**
3 The identification of performance measures and standards. 0.799**
4 The evaluation of the outcomes of the strategies and plans. 0.773**
5 The modification of strategies, if needed, as a result of the evaluation. 0.750**
6 The communication of the evaluation results to the stakeholders. 0.833**
7 The consideration of the donor’s priorities in the evaluation of the strategy. 0.827**
8 The consideration of the community satisfaction in the evaluation of the strategy. 0.782**
9 The reliance on consultants in the evaluation to ensure objectivity and transparency. 0.811**
The use of various evaluation techniques such as strategic audit, performance ap-
10 0.733**
praisal and benchmarking.
Note: In rating each item, target respondents were asked, “Please tell us up to which extent the strategic management practices are
applied in you NGO using a scale of 1 (not at all) to 5 (to a great extent).” Alpha reliability coefficients were Environmental Scanning,
0.82; Strategy Formulation, 0.87; Strategy Implementation, 0.86; Strategy Evaluation and Monitoring, 0.94.
** Correlation is significant at the 0.01 level
Source: SPSS Analysis
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Table 3. Questionnaire items used in one scale (three sub-scales) measuring 79

financial performance.
Correlated
Item
Questionnaire Item Question Item- Total
Number
Correlation
Fundraising Efficiency
1 The organization writes effective funding proposals. 0.750 **
2 The organization uses available funds to generate more funds. 0.678**
3 The organization achieves high response rate from donors to funding proposals. 0880**
4 The organization minimizes its fundraising costs as much as possible. 0.858**

Financial Transparency
The organization commits to the international standards of accounting and financial report-
5
ing. 0.696**
6 The organization ensures accurate and up to date financial records. 0.833**
7 The organization declares annual financial reports audited by public qualified accountants. 0.763**
The organization ensures correct, timely preparation and submission of the financial
8 0.818**
reports to the concerned donors.
Programs Financial Efficiency
The programs of the organization are financially resourced in an adequate manner to en-
9
able the achievement of the desired outputs. 0.828**
The organization monitors the budget statements of the projects and programs to ensure
10
that the expenditures are in line with budgets. 0.855**
Note: In rating each item, target respondents were asked, “Please indicate your level of agreement using a scale of 1 (strongly disa-
gree) to 5 (strongly agree).” Alpha reliability coefficients were Fundraising Efficiency, 0.81; Financial Transparency 0.82; Programs
Financial Efficiency, 0.60; Total Financial Performance, 0.90.
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80 Table 4. Questionnaire items used in one scale (five sub-scales) measuring non-
financial performance.
Correlated
Item
Questionnaire Item Question Item- Total
Number
Correlation
Programs Outcomes (Effectiveness)
The organization’s programs are effectively achieved in contributing to the development of
1 0.801**
targeted beneficiaries.
2 The organization’s programs are effective in addressing crosscutting issues. 0.792**
3 The organization’s programs are effective in achieving beneficiaries satisfaction.
0.757**
4 The organization’s programs are effective in contributing to volunteers development.
0.707**
Programs Non-Financial Efficiency
The organization uses proper activities to transform non-financial resources of the pro-
5
grams into outputs. 0.544**
The organization recruits staff with the right skills, experience to achieve the planned
6
outputs of programs. 0.600**
7 The organization commits to time schedule to achieve the programs outputs.
0.693**
8 The organization’s programs provides a number of products/services as planned.
0.714**
Programs Impact
The organization’s programs contribute to achieving the overall objective of your organiza-
9
tion. 0.852**
10 The organization’s programs are effective in causing direct effects on the community.
0.891**
11 The organization’s programs are effective in causing indirect effects on the community.
0.777**
The organization's programs are effective in creating a long term effect or at social, eco-
12
nomic, technological level as resulted from the programs. 0.876**
Partnership
13 The organization considers collaborative partnership in its operations. 0.872**
14 The organization attracts local partners for the organization’s programs. 0.805**
15 The organization attracts international partners for the organization’s programs.
0.866**
16 The organization attracts private sector partners for the organization’s programs.
0.851**
Quality
17 The organization commits to quality systems and standards in programs delivery.

0.803**
18 The organization provides innovative services and projects. 0.680**
19 The organization’s stakeholders are satisfied due to the organization’s programs.

0.713**
20 The organizations has strong relationships with the community.
0.692**
Note: In rating each item, target respondents were asked, “Please indicate your level of agreement using a scale of 1 (strongly disa-
gree) to 5 (strongly agree).” Alpha reliability coefficients were Programs Outcomes, 0.84; Non-Financial Efficiency, 0.92; Programs
Impact, 0.90; Partnership, 0.89; Quality, 0.73; Total Non-Financial Performance, 0.96.
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Descriptive Statistics: Respondents Profile and Organization Characteristics 81
The results show that 41.3% of the target respondents were" program officers ", 28.8%
were "project managers-coordinators", and 30.0% were "administration officers". 52.5%
of the target respondents were "Male", and 47.5% of them were "Female". Third, 3.1% of
the respondents’ education level was "secondary", 50.0% had "Bachelor" degree, 37.5% of
the respondents possessed "master", and finally 9.4% had ''PhD'' degree. Fourth, 9.4% of the
respondents had an age of '' less than 25'' 28.1% of the respondents had an age of "from 25
to less than 30 years", 43.1% of the respondents’ age was "from 30 to less than 40 years",
and 15.1% had an age of "40 years and more ". Finally, 12.5 % of the respondents possessed
working experience of '' less than 3 years'', 28.1% had "from 3 to less than 5 years", 40.6% had
"from 5 to less than 10 years", and 18.8% had an experience of "10 years and more" working
experience.
The results show that 5.0% of the respondents indicated that their NGO has been operating
for ''less than 3 years'', while 20.6 % said that their NGOs had been in operation for ''3 to less
than 5 years''. Moreover, the results show that 74.4% of the respondents said that their NGOs
had more than 5 years of operations. Second, 23.8% of the respondents claimed that the number
of staff in their NGOs are '' less than 10'', 38.8% of the respondents were working within NGOs
with staff size of ''10 to less than 20'', 16.3% of the respondents said that the number of staff
in their NGOs are ''20 to less than 30'', 15.0% of the respondents were working within NGOs
with staff size of ''30 to less than 40'', and finally 6.3% of the respondents declared that they
work in NGOs with staff size of ''40 or more''. Finally, 19.9% of the respondents said that their
organization provide economic development activities and projects, 14.4% of the respondents
indicated that their organization provide democracy and human rights activities, 13.1% of the
respondents said that education and training was the main activity of their organization, 8.1% of
the respondents belong to health and rehabilitation activity providers, 5.0% of the respondents
declared that they work in a women and Child NGO, 3.8% of the respondents clarified that
they work in NGOs characterized by culture and art activities, 30.0% declared that they work
in social and relief services NGOs, and 5.0% of the respondents belong to the agriculture and
environmental sector.
Results of Research
Table 5 below depicts means, standard deviation, and Spearman correlations for the
research variables. The mean and standard deviation of environmental scanning are 4.28 and
0.425, respectively. The mean and standard deviation of strategy formulation are 4.11 and
0.527, respectively. The mean and standard deviation of strategy implementation are 3.78 and
0.749, respectively. The mean and standard deviation of strategy evaluation and monitoring are
3.73 and 0.872, respectively. The mean and standard deviation for financial performance are
3.64 and 0.708 respectively while non-financial performance has a mean and standard deviation
value of 3.59 and 0.805, respectively. Means and standard deviations of the sub-scales of both
financial and non financial performance are also presented in table 5.
As can be seen in table 5, the results show there is a positive relationship between each of the
strategic management practices and financial performance indicators (all recording a Spearman
coefficient higher than 0.500). Moreover, it can be seen that all the correlations were significant
at 0.01 level. For instance, it is found that the correlation between environmental scanning and
fundraising efficiency was significant at the 0.01 level with a Spearman coefficient of 0.843.
The correlation coefficients between environmental scanning and both financial transparency
and program financial efficiency were 0.760 and 0.543, respectively. The relationship between
strategy formulation and the three financial performance indicators were significant with
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82 correlation of 0.715 with fundraising efficiency, 0.706 with financial transparency, and finally,
0.602 with program financial efficiency. Furthermore, strategy implementation registered
the following correlation with the financial performance indicators: 0.756 with fundraising
efficiency; 0.797 with financial transparency; and 0.619 with programs financial efficiency.
Finally, strategy evaluation as the concluding practice of strategic management proved a
significant positive relationship with financial performance indicators in which the Spearman
coefficient was 0.769 with fundraising efficiency; 0.774 with financial transparency; and 0.608
with programs financial efficiency. The results suggest that the strategic management practices
are of extreme importance for financial performance in terms of fundraising, programs financial
efficiency and financial transparency. This implies that strategic management is vital for money
acquisition and utilization in an efficient way in addition to financial integrity.
The results also show that each of the strategic management practices was positively
related to the overall financial performance recalling that correlations are significant at the
0.01 level. The Spearman correlation shows strong positive relationship between financial
performance and all strategic management practices included in this research. Strategy
implementation had a correlation with financial performance in which the Spearman coefficient
was 0.850. Environmental scanning, strategy evaluation and strategy formulation scored 0.832,
0.877 and 0.758, respectively.
On the other hand, positive relationships exist between each of the strategic management
practices and non-performance indicators. In addition, all the relationships between strategic
management practices and indicators of non-financial performance were significant at the 0.01
level. The strategic management practices had the strongest correlations with program non-
financial efficiency. The values of the Spearman coefficient were 0.801 with environmental
scanning, 0.748 with strategy formulation, 0.838 with strategy implementation, and 0.821 with
strategy evaluation and monitoring. These results gives an indication that strategic management
practices are positively related to program non-financial efficiency in terms of using the proper
activities to produce the required outputs and providing a number of products and services
as planned. Similarly, correlation between environmental scanning, strategy formulation,
strategy implementation, strategy implementation and strategy evaluation and program impact
were 0.660, 0.588, 0.651, and 0.676, respectively. This suggests that strategic management
practices might lead to better impact of NGO programs in terms of causing direct, indirect
effects and long-term effects on the communities where they operate. Furthermore, strategic
management practices, according to the correlation analysis, proved to be beneficial to
partnership in which environmental scanning was positively correlated with partnership scoring
a Spearman correlation of 0.734, and strategy formulation, implementation, and evaluation
were also positively related to partnership with a spearman coefficient of 0.647, 0.746, and
0.766, respectively. Finally, strategic management practices were also positively correlated
with quality.
Based on the results, each of the strategic management practices is positively related
to the overall non-financial performance. The Spearman correlation shows a strong positive
significant relationship between non-financial performance and all strategic management
practices included. Among these practices, environmental scanning had a correlation with
non-financial performance in which the Spearman coefficient was 0.785. Strategy Formulation
scored 0.710 with non-financial performance. Strategy implementation and strategy evaluation
scored 0.817 and 0.813, respectively.
Although all the practices were positively correlated with NGOs’ performance, it is still
necessary to highlight that strategy implementation registered almost the highest correlations
with the financial and non-financial performance indicators, suggesting the important role of
this phase. This is expected since developing only well formulated strategies and goals are
worthless without having a real implementation for these strategies. Hence, an NGO that seeks
to achieve good performance has to consider the role of strategy implementation.
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Table 5. Means, standard deviations and correlations. 83
Variables Mean SD (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)
Environmen-
tal Scanning
4.28 0.425 1
Strategy
Formulation
4.11 0.527 0.740** 1
Strategy
Implementa- 3.78 0.749 0.771** 0.650** 1
tion
Strategy
Evaluation& 3.73 0.872 0.776** 0.787** 0.771** 1
Monitoring
Fundraising
Efficiency
3.55 0.750 0.843** 0.715** 0.756** 0.769** 1
Financial
Transpar- 3.71 0.858 0.760** 0.706** 0.797** 0.774** 0.745** 1
ency
Programs
Financial 3.69 0.696 0.543** 0.602** 0.619** 0.608** 0.703** 0.642** 1
Efficiency
Financial
Performance 3.64 0.708 0.832** 0.758** 0.831** 0.817** 0.924** 0.927** 0.806** 1
(Overall)
Programs
Outcomes
3.73 0.716 0.649** 0.549** 0.587** 0.602** 0.670** 0.653** 0.719** 0.742** 1
Non-Financial
Efficiency
3.57 1.053 0.80** 0.748** 0.838** 0.821** 0.873** 0.808** 0.731** 0.906** 0.679** 1
Programs
Impact
3.50 0.817 0.660** 0.588** 0.651** 0.676** 0.766** 0.680** 0.742** 0.800** 0.831** 0.834** 1
Partnership 3.53 1.000 0.734** 0.647** 0.764** 0.766** 0.782** 0.752** 0.696** 0.833** 0.653** 0.907** 0.844** 1
Quality 3.63 0.859 0.682** 0.600** 0.714** 0.684** 0.670** 0.618** 0.609** 0.703** 0.541** 0.797** 0.673** 0.816** 1
Non-Financial
Performance 3.59 0.805 0.785** 0.710** 0.817** 0.813** 0.842** 0.786** 0.774** 0.890** 0.803** 0.949** 0.924** 0.950** 0.859**
(Overall)
** significant at the 0.01 level, * significant at the 0.05 level.
Hypotheses Testing
Since positive relationships were found between strategic management practices,

financial performance and non-financial performance in the correlation analysis, it is deemed
necessary to employ regression analysis in order to determine whether there are any predictive
relationships between the dependent and independent variables. Hence, multiple regression
analyses (Enter Method) were performed to predict the research hypotheses. In this analysis,
two models were generated in which model 1 predicted the effect of the independent variables
on financial performance, while model 2 was performed to see the effect of the independent
variables on non-financial performance.
Model 1 had an R square equal to 0.863, indicating that 86.3% of the variations in
financial performance are explained by the four variables entered in the model (environmental
scanning, strategy formulation, strategy implementation, strategy evaluation and monitoring).
The f-statistic (ANOVA) of the model equals 244.429, with a p-value equal to 0.000. The
ANOVA finding revealed that the overall model is a significant predictor of the financial
performance of NGOs. By looking at each of the individual t-tests, in Table 6, it can be seen that
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84 all independent variables were significant predictors. However, in order to evaluate the strength
of each predictor variable in the model, it is important to use the standardized coefficients
(beta) (Pallant, 2007). The beta weight indicated that strategy implementation is the strongest
predictor (β = 0.379, p=0.000), followed by strategy evaluation (β = 0.248, p=0.000), next is
the environmental scanning (β = 0.220, p=0.000), and, finally, strategy formulation (β = 0.168,
p=0.002).
The R-square of model 2, predicting the effect on non-financial performance, was 0.825
indicating that 82.5% of the variations in non-financial performance are explained by the
four strategic management practices. The model is a significant predictor since the f-statistic
(182.81) is significant with a p-value equals to 0.000. All the independent variables entered
were significant predictors. The beta weight indicated that strategy evaluation is the strongest
predictor (β = 0.313, P=0.000), followed by strategy implementation (β = 0.295, p=0.000), next
is environmental scanning (β = 0.232, p=0.000), and, finally, strategy formulation (β = 0.153,
p=0.013).
In summary, all the strategic management practices were significantly associated with
financial performance and non-financial performance of NGOs. An increase in each strategic
management practice would not improve only financial performance but also program
performance.
Finally, in both models, multi-collinearity was not serious, since the tolerance values
ranged from 0.269 to 0.308 (>0.10) and the variance inflation factor (VIF) ranged from 3.243
to 3.722 (<10.00) (Pallant, 2007). Moreover, the Durbin-Watson value of model 1 was 2.151,
and model 2 was 1.678, suggesting no evidence of autocorrelation of the errors. The values of
Cook’s Distance for model 1 (0.084< 1.00) and for model 2 (0.111< 1.00) suggest that in the
models there are no potential problems with the outliers (Tabachnick & Fidell, 2007).
Table 6. Multiple regression for variables predicting financial and non-financial

performance.
Model 1. Dependent variable: Financial Model 2. Dependent variable: Non-Finan-

Performance cial Performance
Independent Variables Beta (β) T-value P-value Beta (β) T-value P-Value
Environmental Scanning 0.220 3.942 0.000** 0.232 3.682 0.000**
Strategy Formulation 0.168 3.131 0.002** 0.153 2.522 0.013*
Strategy Implementation 0.379 6.610 0.000** 0.295 4.551 0.000**
Strategy Evaluation and
0.248 4.406 0.000** 0.313 4.920 0.000**
Monitoring
R² = 86.3 R² = 82.5
F statistic= 244.429, Sig=0.000 F statistic= 182.817, Sig=0.000
Std error of the estimate=0.2651 Std error of the estimate=0.3410
Durbin Watson= 2.151 Durbin Watson= 1.678
Cook’s Distance, Maximum=0.084 Cook’s Distance, Maximum=0.111
** significant at the 0.01 level, * significant at the 0.05 level.
Discussion
The objective of this research was to explore the effect of strategic management on
NGOs’ performance. A set of hypotheses, using correlation analysis and multiple regression
analysis, were tested to better explore the relationship between strategic management practices
(environmental scanning, strategy formulation, strategy implementation and strategy evaluation
and monitoring) and both financial and non-financial performance of NGOs. The correlation
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analysis revealed a strong positive relationship between the strategic management practices and 85
financial and non-financial performance. Then, multiple regression analysis indicated that each
of strategic management practices showed statistically significant positive association with
both financial and non-financial performance, supporting hypotheses H1a&b, H2a&b, H3a&b
and H4a&b. Strategy implementation was the strongest predictor on financial performance in
NGOs, while strategy evaluation and monitoring was the strongest predictor variable on non-
financial performance of NGOs. These results provide compelling evidence in support of the
effects of strategic management on the performance of NGOs. In general, the results suggest
the those who aim to achieve higher financial performance in terms of fundraising, financial
sustainability, credibility and financial efficiency of programs, should consider the role of
strategic management practices, and these practices, furthermore can lead to better program
performance in terms of effectiveness, efficiency, impact, partnership and quality. These results
are certainly in parallel with prior writings on the importance of a strategic process for NGO
performance, such as Allison and Kaye (2005), Barry (1986), Bryce (1992), Bryson (1988),
Bryson (2011), Hay (1991), Moore (2000), Morrisette & Oberman (2013), and Poister et al.
(2010).
The results suggest that these practices are fundamental for NGOs’ financial performance,
as has been suggested by Mosley et al. (2012). The results are consistent with Blackmon
(2008), Crittenden, Crittenden & Hunt (1988), Odom & Boxx (1988), and Sciliano (1997).
The results also suggested that strategic management practices can lead to better non-financial
performance or ‘program performance’. These results are consistent with Hu et al., (2014),
Mara (2000), McHatton et al. (2011), Medley & Akan (2008), and Smith (2008). The results
are also consistent with Letts et al. (1999) who claimed that management effectiveness and
program performance are linked.
Implications for Managerial Practices
This research highlights the role of strategic management in NGOs’ performance. The
research suggests that those NGOs which analyze their present situation, including evaluating
the opportunities, threats, weaknesses, strengths, stakeholders, and needs of the communities;
define their strategic alternatives in terms of mission, goals and strategies; implement their
plans and strategies taking into account the important strategy implementation drivers; and
finally, monitor and evaluate their progress and strategies; would have better performance
from a financial aspect in terms of generating funds and utilizing these funds efficiently and
effectively. Moreover, it is clear that NGOs with better strategic management practices deliver
their services and projects successfully. Based on the results, we suggest the following strategic
management practices be adopted by the NGO sector as a vehicle to achieve higher performance:
1. An analysis of the present situation of the NGO in terms of services, beneficiaries

and stakeholders.
2. External environmental analysis: evaluating opportunities and threats in terms of its
competitors, donors, the economic and socio-political influences and stakeholder
analysis.
3. Internal environmental analysis: assessing internal strengths and weaknesses.
4. Developing specific, measurable, achievable, realistic and time-based, long term
objectives and short term goals.
5. Defining strategic alternatives in terms of objectives and strategies.
6. Regularly reviewing the goals, objectives and mission statement in light of changes
in the working environment.
7. Taking into account the importance of the organizational culture, structure, leadership
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86 as major drivers of the strategy implementation process.

8. Developing a monitoring system.
9. Regularly monitoring and evaluating goals, strategies and overall progress of the
organization to ensure that it is both flexible and adjustable.
10. Using a participatory approach to formulate mission statement, goals, strategies.
11. Taking into account the importance of participation of experts and consultants in the
strategic efforts of NGOs.
Conclusions, Limitations and Future Research
This research provides an important contribution to the empirical body of knowledge

of NGOs research through filling in an existing research gap of the relationship between
strategic management and NGOs’ performance, whereas there are less defined relationships
in this area. The results suggest a strong link between strategic management practices and
financial and non-financial performance of NGOs. Hence, these results give a clear indication
of the necessity of strategic management practices to enhance NGOs’ performance. Second,
the research overcomes the classical way of measuring performance only in terms of access
to funding. In this way, this research has an advantage over many studies, which investigated
the relationship only between the utilization of formal planning and financial performance
measured in terms of access to funding or income generation, ignoring other important elements
in the financial performance of NGOs, such as financial transparency and efficiency. Moreover,
this research gives a more sophisticated understanding of this relationship by including both
financial performance measures and non-financial measures believed to be of extreme necessity
to explore such a relationship. Finally, previous studies highlighted only the use of planning,
ignoring other important elements in a comprehensive strategic management approach, such as
implementation and evaluation.
The research, however, has some limitations. First, the research targeted only the
international NGOs working in the Palestinian territories. Future research might replicate and
extend this research to enrich and enhance these preliminary findings by including also local
NGOs. Another limitation is that data was gathered by a single data collection method which
might introduce a kind of bias. Although it has been argued that it is incorrect to assume that
single data method implies systematic bias, it is still recommended for future research to utilize a
quantitative-qualitative approach with multi data collection methods such as questionnaires and
interviews. Moreover, the inclusion of a qualitative investigation would be extremely useful to
understand how strategic management practices impact the performance of NGOs. Finally, the
research aimed only to explore the direct effects of strategic management practices on NGOs
performance. Future research might include some mediating or moderating variables such as
donors policies, conditional funding, external constrains. The inclusion of these variables in
further research will provide a much deeper understanding of the strategy-performance link in
NGOs.
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92 Whitaker, P., Altman-Sauer, L., & Henderson, M. (2004). Mutual accountability between governments and
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Received: August 24, 2016 Accepted: November 28, 2016
Mohammed Aboramadan PhD Candidate, Department of Economics and Management, University of

Pavia, via S. Felice 5, 27100 Pavia (PV), Italy.
E-mail: Mohammed.aboramadan01@universitadipavia.it
Elio Borgonovi Full Professor, President of CERGAS Research Center, Bocconi University,
via Roentgen, 1, 20136 Milano, Italy.
E-mail: elio.borgonovi@unibocconi.it
Website: http://faculty.unibocconi.it/elioborgonovi/
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HOW OUTSOURCING CAN CONTRIBUTE 93
TO THE EFFICIENCY AND EFFECTIVENESS

IN THE PUBLIC SECTOR: SOME
INDICATORS ABOUT PORTUGAL
Maria da Conceição da Costa Marques
Higher School of Accounting and Administration of Coimbra
(ISCAC Business School), Portugal
E-mail: conceicao.m@netcabo.pt
Abstract
Outsourcing is a practice used by different companies to reduce costs by transferring working with
outside suppliers rather than performing them internally. Cutting costs are presented as a key benefit in
hiring an outsourcing service. Besides to the overall increase efficiency by more rational and efficient
allocation of resources, the management of the contract with the external provider allows organizations
to adopt more stringent cost control mechanisms, as all components of the relationship with the provider
are formalized and systematically evaluated. It also allows the organization to transfer fixed costs to
variable costs, reducing the costs related to the acquisition, management, maintenance and updating of
equipment, supplies and infrastructure, as well as reduce costs with the management and supervision of
teams assigned to non-core activities.
The study presented here is an early stage of research to be developed on outsourcing in Portugal and
its position in relation to public authorities in other countries. It aims to propose a theoretical model
to explain the use of outsourcing in the public sector, as well as a set of variables that may improve
understanding of the key determinants of the success of this research.
Key words: exploratory research, new public management, public sector, outsourcing, qualitative
research.
Introduction
Within the public administration reforms, almost all governments have adopted and
implemented some of the known concepts and tools of New Public Management (NPM) for
inter and intra-organizational modernization of ministries and other government institutions,
the following, somehow the logic of decentralization, management contracts focused on
performance and results monitoring.
To evaluate the result of NPM in the size of the public sector (Hood, 1991 to 1995), there
are two major policies associated with NPM for the study: the outsourcing and decentralization.
The advantages of this selection based on two aspects. First, the effects of both policies can be
measured quantitatively and, second, there is substantial theoretical literature that states that
these policies may affect the public sector in size, expenditure and staff.
The outsourcing can assist in the conclusions about whether or not the reduction of
public spending and workers led to greater efficiency and effectiveness in the public sector
(Jensen & Stonecash (2005), whether the services provided improved or worsened or if there
were effects on social welfare. Despite the limited objectives, this is still a valuable test for the
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Maria da Conceição da costa MARQUES. How outsourcing can contribute to the efficiency and effectiveness in the public sector:
Some indicators about Portugal
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94 effects of decentralization, the size of the public sector, as outsourcing remains a popular tool
for almost all governments around the world.
Even though outsourcing does not lead to a smaller public sector, if the working
conditions and service quality improved and / or social well-being were enhanced, it can be said
that the use of outsourcing can be interpreted as a benefit such a policy. If, however, the increase
in government spending is not accompanied by this improvement, it may suggest the existence
of high transaction costs, coordination and social appropriation of income by the private sector,
or the private provision of public goods does not necessarily imply efficiency gains.
Outsourcing really has advantages to the public sector? Leads to efficiency gains? There
are potential risks associated with the outsourcing process?
These are relevant questions that are intended to answer in this study. Although the
phenomenon of outsourcing in Portugal is a relatively new procedure, we look to this study to
obtain a deeper knowledge of perception of the different business areas about the phenomenon
of outsourcing in the public sector.
This analysis focuses on the use of outsourcing by the Public Sector. The research method
used was qualitative research and literature review in order to study the underlying complexity
to the outsourcing problem, analyzing the interaction of certain variables and understand and
classify dynamic processes experienced by social groups.
A literature review was made based on a survey of theoretical references, published
by written and electronic media, such as books, papers and web sites pages. Proceeded to the
literature on the most relevant definitions in these areas and made an analysis of the important
documents published by international organizations such as the OECD and the United Nations,
and other data sources on the subject at hand. In turn, the exploratory research aimed to provide
greater familiarity with the issue, to make it more explicit in the construction of hypotheses.
Governance Models
The state's role has varied over time. In OECD countries highlights three types of public
management models: The Max Weber Model (traditional), the New Public Management and
the Governance Model.
The Max Weber Model
The liberal-oriented model was based on Adam Smith's view that the market is self-
regulating concept which lasted until the 1st World War, so it was necessary to introduce market
regulation mechanisms according to the Keynes theory.
With the reconstruction of Europe after the 2nd World War, there has been a strengthening
of state intervention in the economy, as a producer of public services, through nationalization
and the establishment of large enterprise public sectors.
In Portugal, the state intervention in the economy was recognized in the 1933 Constitution,
as well as the protective principle of national economy, which led to the "corporatism and a
capitalism of state direction", which lasted until the Revolution of April 25.
In the name of public service, in the 70s, state functions have widened in the social
area and the planning and economic coordination. The 1976 Constitution came to establish,
for the 1st time in Portugal an open economy, development-oriented and corrected by state
intervention, ensuring the existence of a multi-sectoral economic system, and various types of
economic initiative: public, private and cooperative.
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The current Constitution establishes a model of balance between public interest and 95
market economy, assigning different functions to the state in the organization of the economic
process:
• The Entrepreneur State, as a producer of goods and services.
• The regulatory State, in terms of guidance and control of economic activity.
The New Public Management
With the emergence of globalization in the 80s, was observed in OECD countries a
movement to reduce the state's role in economic and social life, which was accompanied by
outsourcing of state functions in the provision of public goods and services, using several ways:
privatization, outsourcing, public-private partnerships (concessions and licenses).
The outsourcing of state functions has two main objectives: restoring market mechanisms,
and reduce the state role in the economy, which is no longer the direct provider of services and
passes to the role of regulator.
For the mentors of the New Public Management (NPM), Osborn and Gaebler, there
is a difference between political decision (leadership / direction) and provision of services
(production): they defend the introduction of private management methods in the public
sector (focus on outcomes rather than on inputs, management by objectives, etc.) and the
corporatization of public services through partnerships between the public and private sectors.
In the NPM model, the allocation of resources is more efficient when resorting to markets
where potential suppliers compete to attract consumers by reducing the price and improving the
quality of services provided.
The NPM has become as a generic term covering a range of public sector reforms carried
out from the eighties around the world and in most OECD countries (Hood, 1991; Pollitt,
2003 and Dan Pollitt, 2011). Most of the scholars agree on the approach that the NPM began
as a phenomenon in Anglo-Saxon countries, and then absorbed and promoted by the OECD
in a world-wide scale (Kettl 2000). Today, the NPM style reforms have been implemented in
most of the Western world and beyond. However, setting up what it really means NPM, when
translated into discrete policies, it is very difficult (Dunleavy and Hood, 1994; Flynn, 2002;
Barzelay, 2002) and has made "hybrid" (Christensen and Laegreid, 2002).
The NPM is a standardized model for the reform of public administration. Originally
appeared in Anglo-Saxon countries such as the UK, USA or New Zealand, currently the NPM
is worldwide used. In Europe many municipalities are to start reforms within the NPM.
The Governance Model and the New Public Service
The governance model and the New Public Service appeared in the 90s appealing to the
concept of democratic citizenship and political of Aristotle and organizational humanism.
This model, said of political rationality, based on the participation of citizens in the
administration of Polis and shared notion of public interest through participatory management
and accountability and shared responsibility. It is a cooperative and adaptive model, centred on
partnerships between the public sector and the private sector, these partnerships that emerge
from the social-political context to resolve common problems.
According to this model, the resolution of certain problems resulting from market failures
or coordination failures is not feasible by the public sector without the involvement of a broad
partnership with other stakeholders, public and private.
Governance becomes the network management, defined as sets of various interdependent
actors in the provision of public services.
As the competition for the price is the central mechanism to coordinate the markets,
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96 cooperation and trust are key factors in the articulation of networks, as well as reputation,
reciprocity and mutual interdependence are essential to its success.
The Outsourcing
Framework
The purpose of this research is to determine whether the reforms resulting from the NPM
implemented in the public sector make it smaller. Clearly, the comprehensive response would
require at least quantification of all major practices associated with NPM. The problem here, as
noted by the OECD (2010) is twofold. Firstly, some of the policies related to NPM are difficult
if not impossible to quantify. Lead, for example, to the issue of league tables of the public
sector. Set up a league table of the public sector would be very controversial in one country but
would cause an outcry if implemented on a regional or international level, as each government
would state the purpose of your audience. This sector would be different from their peers,
making futile comparison. For many of the other policies, the main problem is the lack of data.
For example, it would be interesting to quantify the effect of the use of "pay-for-performance"
in the "performance budget" or "agentification".
What is Outsourcing
The government outsourcing can be defined as the provision of public services by other
actors than those government officials (Minicucci and Donahue, 2004). Governments may
outsource the provision of public services in two ways: they can buy goods and services from
the private sector or non-governmental organizations in order to include them in their own
production chain, called intermediate consumption, or can hire a company to provide public
goods and services directly to the final consumer or citizen, called social transfers in kind via
market producers (OECD, 2011).
There is no one definition of outsourcing. Let us then see some definitions. Outsourcing
is a practice used by different companies to reduce costs by transferring portions of work to
outside suppliers rather than performing them internally. Or an effective cost reduction strategy
when used correctly. Sometimes it is more affordable to buy goods to a specialized company
that produces them internally. Outsourcing is a way to add value to a business, becoming a
centre of internal costs in an external service through subcontracting, allowing the release of
the organization's resources and managers to focus their attention on the business areas of high
strategic importance1.
Outsourcing functions can take various forms, from the corporatization of function, to
outsourcing and public-private partnerships, where the private sector is responsible, in whole
or in part by financing, implementation and service management, and compensation based on
standards quality or availability (service levels) agreed between the parties.
Outsourcing ("out" means "outside" and "source" or "sourcing" means resource) denotes
the action that exists on the part of an organization to obtain resources / services from outside
the company, i.e. resources / external services.
Various definitions of outsourcing were advanced by several authors, however, they
seem to converge on the notion that outsourcing is associated with the procurement of services,
which the organization itself to develop, but who chooses to hand over to a third party, to better
focus in its core business.
Outsourcing, a term that often refers to the use of outsourcing is a strategic management
mechanism that organizations use and that is usually made for a specific period of time and may
1 http://www.knoow.net/cienceconempr/gestao/outsourcing.htm
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represent a partial hiring or even all services. The paid contract may also involve the complete 97
or partial transfer of human and technological resources, in which the supplier shall assume
responsibility for the same.
However, the concept of outsourcing is often confused with simply hiring a service
to a supplier. However, some authors try to define the concept a little further, defining it as
the strategic use of external resources to perform tasks that have traditionally been developed
internally (Jensen & Stonecash, 2005). There is clearly a difference between outsourcing and
the outsourcing of resources, that lies in the fact the latter involve a significant restructuring
of certain activities, often including transferring people from parent company to another
specialized company, generally smaller, with the necessary skills the development of these
activities.
Outsourcing began to have a greater expression within the Information Systems and
Technologies. The small companies resorted to outsourcing as a way of supporting the data
processing costs, which involved the purchase of expensive equipment as well as the allocation
of specialized personnel. Later, larger companies have chosen to adopt the strategy of transferring
the data processing department, including the said department workers for an outside company
that would undertake to provide the service.
Outsourcing, the result of increasing profitability as evidenced by some companies that
use these services has been growing significantly over time. The business model that began to
be established based on a simple trade deal between two entities, was evolving into other forms
of relationship where the prospect of sharing cost / benefit came to be present.
In line with what is happening elsewhere in Europe, also in Portugal the demand for
outsourcing services has been growing. The economic environment requires organizations to
adapt structures to make them more flexible and to focus the internal know-how in innovation in
core areas of the business. Simultaneously, the support areas have to be managed with increased
levels of efficiency and productivity. The need to integrate new technologies and restructure
operating systems and processes, generates costs and requires access to skills and expertise
which are not always within organizations.
Faced with these challenges, the use of the outsourcing of services to manage, optimize
and innovate systems and support processes, through external partners with expertise and
specialized technology, has been showing increasing financial benefits, operational and
technology for organizations. More and more organizations establish comprehensive and long-
term strategic partnership with external partners who take on the operational processes of the
organization.
Typologies and Outsourcing Models
So, raises the question of what level or depth with which it will promote outsourcing
in an organization. Determining the level and depth with which it will operate this implies the
adoption of the following types or outsourcing models:
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98 Table 1. Outsourcing definitions.
Whole Partial
Traditional Strategic out- International Transformation-
outsourcing outsourcing,
outsourcing sourcing outsourcing al outsourcing
or pure selective or
hybrid
In this case The strategic
In this case Traditional
it resorts to outsourcing International The transforma-
it resorts to outsourcing
outsourcing, consists in mov- outsourcing is tional outsourc-
outsourcing consists of
for example, ing the strategic used when we ing is defined as
to completely moving non-core
in the case of services to an talk about a an association
externalize services from one
information outside organi- subcontracting with another
a particular organization to
systems, only zation, namely relationship, but organization
function another, that is,
for program- services related to internationally, i.e with the aim
and in this organizations are
ming a new the core business between organi- of achieving
situation all more focused on
application, of an organization. zations from dif- together a devel-
inherent func- its core business
and the External entities ferent countries. opment to obtain
tions to this and choose to
system responsible for Sometimes it is a faster and
activity are hire other exter-
maintenance these services possible to obtain more sustained
transferred to nal entities for the
will continue have evolved from lower costs and a performance.
companies management of
to be made the main factor, greater exchange Today, this type
outside the services consid-
within the or- (reducing costs) of knowledge of outsourcing is
organization, ered non-strate-
ganization with to a trust relation and experience considered the
including the gic (distribution,
the human between the entity with this type of most advanced
specific needs security, food,
resources and that hires and the subcontracting. and effective.
of human cleaning, etc.).
organization supplier (subcon-
resources.
materials. tractor).
These models can still add up the outsourcing processes - a new typology that, in recent
times, has been extended to some areas of business. In this typology the contractor is responsible
for the development of an entire business function. It is also possible to identify other types
of outsourcing, which is associated with the benefits to the business of the organization. The
typology relates to contracts that are established based on contributions from external entity
to the company. The contract is indexed to the gains that the external organization can get to
the company, and financial compensation is dependent on these capital gains. The peculiarity
of this typology is that it provides a breakdown of risk both for the organization that resorts
to outsourcing, as by the provider of the services or products target of outsourcing. The main
difficulty relates to the identification, at the outset, both the benefits and potential risks.
In the case of Public Sector outsourcing can be differentiated into two types:
• The external outsourcing (contracting out), which is defined as subcontracting
existing external entities in the market.
• The internal outsourcing, whose definition is the subcontracting of other Public
Administration bodies.
Shared Services Outsourcing
This type of outsourcing is distinguished from others in that, in general, the provision
of goods and services, although no longer be made directly by the body, remains in the same
business group or, in the case of Public Administration, the same legal entity (State). It is the
creation of common structures and cross to the various bodies concerned with the realization
of non-integrated activities and tasks, generally, in the organization's core-business and which
therefore can be transferred to shared service centres. These tasks, although they mostly an
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administrative nature or logistics, are vital to the smooth running of the organization. Areas 99
such as the following may be included in shared services outsourcing:
Table 2. Activities.
Activity
Human resource management Transport Services
Financial management and accounting Car fleet management
Negotiation and procurement of goods and services Help desk and customer call centres
Building management Legal advice
Information systems and communication, including the
Security services
technical support
Cleaning services
If, in principle, the concept of outsourcing appears not to show the difficulties of
interpretation, and even often used as a generic term, the different types of outsourcing remit
the concept to more complex conditions that require further analysis, in deciding to adopt it.
It should therefore be considered a set of factors when assessing the possibility of using the
outsourcing, namely: (1) What services or products will be subject to outsourcing? (2) It will
resort to outsourcing of core services and / or products or non-core to the business? (3) What
outsourcing typology to adopt? (4) There will be an asset transfer of ownership? (5) What
responsibilities can be demanded? (6) Which degree of reliance that will be? (7) What are
the risks involved and what their distribution? (8) There is a possibility of loss or breach of
confidentiality?
These and other questions should be evaluated in advance and weighted together with
the advantages and disadvantages of using this instrument management in both the private
management, such as in public administration and in particular on the latter because it is
publicly funded.
As the outsourcing advantages we can enumerate the following: access to new
technology and human resources; clear and objective control schedules; objectivity in trading;
flexible management; highest concentration in business; access to skills and expertise;
acceleration of modernization processes; risk sharing; release of resources and respective
redirection; reduction and control of operating costs; potential gains derived from economies of
scale resulting of the subcontractor have access to an aggregate of enterprises, optimizing costs
and services; association of the organization to the performance of contractor (which can also
be considered a disadvantage).
Cutting costs are presented as a key benefit in hiring an outsourcing service. In addition
to the overall increase of efficiency by more rational and efficient allocation of resources,
the management of the contract with the external provider allows organizations to adopt
more stringent cost control mechanisms, given that all components of the relationship with
the provider are formalized and systematically evaluated. It also allows the organization to
transfer fixed costs to variable costs, reducing the costs related to the acquisition, management,
maintenance and updating of equipment, supplies and infrastructure, as well as reduce costs
with the management and supervision of teams assigned to non-core activities.
The existence of an outsourcing contract with clear identification of the fixed and
variable cost structure can ensure better financial control and cost forecast. The possibility
to benefit from the scale effect through access to more competitive services, allows a more
efficient management of investment that can be channeled into the core areas of business.
Outsourcing of processes allows the organization to optimize its internal resources and
simultaneously rationalize, automate and simplify them, enhancing efficiency and productivity
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100 gains. The contract with the external provider allows promote continuous improvement by
establishing demanding service levels, aimed at increasing the availability of services and
improving response times by the organization to its end customers.
The configuration and outsourcing contract management are also an important aspect
to ensure maximum benefit to the organization. Therefore, it is necessary to take into account:
a) A clear definition of the strategic objectives to be achieved;
b) A proper structuring of the contract between the organization and the provider and
the strict compliance with the rules of the relationship between the parties;
c) The adequacy of the implemented service model;
d) Assessment indicators and results.
The relationship of partnership with the service provider must ensure access to resources
and valences needed to ensure the stated objectives and the commitment to innovation on a
going concern perspective, considering the overall growth of the organization in its market
segment.
The use of cloud services has grown in recent years and allowed to add flexibility to
outsourcing contracts. The high flexibility that characterizes the management of outsourcing
services in cloud computing environments allows increasing speed of access to services and
enables a more flexible cost management. Enables organizations, for example, use additional
computing power as required without any initial investment in infrastructure. Organizations
can thus combine the advantages of outsourcing and cloud services, promoting agility and the
ongoing adjustment of its operational processes to changing business needs.
However, outsourcing can also have disadvantages, such as: inability to control the
entire production cycle / provision of goods / services; dependence on other entities / suppliers,
in particular if there is no competition between suppliers; Subject to the supplier instability
risks; subject to human resources management policies of third parties; potential breaches of
confidentiality in respect of internal processes; potential breaches of confidentiality regarding
customer or citizens data; loss of material property and / or intellectual; transaction costs
(associated with trading, maintenance and accountability of good service provider or contractor);
decreased productivity associated with internal discontent; potential reduction of public values
of neutrality and impartiality; the organization may be associated with the performance of the
contractor (which can also be considered an advantage).
In the case of the public sector, the use of outsourcing may involve risks such as high
costs, service provider dependency, loss of control and confidential information, decreased
level of quality, loss of capacity for innovation in processes and loss of skills and resources
strategically.
Outsourcing as Efficiency Factor in Public Sector
General strategies to achieve more flexibility, transparency and guidance for targets in
the relationship between different agencies and levels of government are well known.
With regard to funding, there is an evolution of hard and detailed budget of subsidiary
bodies for more comprehensive and flexible budgets. It is expected that the management of
human resources to leave the classic and uniform system of payments, career and promotion and
move to support more individualized and specialized solutions for each type of industry, agency
and personal. Finally, the main objective is to replace the traditional bureaucratic mechanisms
to enforce the rules and highly hierarchical, for network systems and peer relationships that
demonstrate flexibility, focus on results, and the ability to learn.
The main reason for the choice of outsourcing by the organizations, it is because they
want to bet on their core activities, subcontracting external entities for the remaining services.
In this way, organizations can free up internal resources to carry on its core business. These
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resources can be both financial and human, depending on the purpose of each organization; it 101
is a cost savings or a release of personnel in outsourced activities. The processes that should
be applied to outsourcing are the low strategic importance of processes for business and
simultaneously low risk.
Therefore, the processes that outsourcing is most often applied are: accounting, payroll,
economic and financial consulting, strategic consulting, billing services, freight transport, legal
advice, recruitment and selection of personnel, training, equipment maintenance, cleaning
services, market research and advertising, among others.
Outsourcing, by itself, is no guarantee of benefits; needs to be framed in the correct
models and with the necessary capabilities. Despite the outsourcing potential performance it
does not always meet expectations, with a number of issues to consider, such as: (a) confidential
information held by the outsourcer, (b) business premises activities provided in outsourcing, (c)
outsourcer staff contact with the end customers of the client company, (d) processing of personal
data, (e) contractual guarantees of level and quality of service, (f) reputation for competence
and service integrity, (g) adherence to good habits.
It is usual the organizations resort to outsourcing analyzing only the advantages associated
with them, disregarding the disadvantages or the very context that surrounds them. If for some
organizations the gains from the adoption of outsourcing were very positive, for others brought
terrible problems. Outsourcing is not an effective solution for every organization.
Only after a detailed evaluation of the advantages of outsourcing and a thoughtful
reflection about the disadvantages and the context in which the organization operates, it will
be possible to make a correct assessment of the viability of the use of this instrument. Even in
cases wherein is assumed to be advantageous to adopt outsourcing, should be designed carefully
the use of this tool, evaluating between different types that best respond to the organization's
objectives.
In the context of public administration outsourcing is understood as a practice by which
the government hires the provision of goods or services from the private sector. It is important
to understand that this contract differs from traditional purchases of goods and services, in that
it is based on a temporal contractual relationship of medium / long term. In this context the
term implies the outsourcing of some operations that had previously been made public within
the organization and that, by using market mechanisms such as outsourcing, have been made
by other organizations. Although initially it had been mostly used by private sector companies,
outsourcing came to the Public Administration in the context of reforms relating to management
undertaken in the public sector all over the world in the last decades of the twentieth century.
These reforms have favored a state setting dwindling, assuming delivery to the private sector of
a growing set of activities that until then were in the public sphere.
The Partial Outsourcing in Public Administration
Considering the application of new doctrines in administrative reforms, it is not surprising

that from the 80´s, intermediate consumption held by governments has increased considerably.
Intermediate consumption represents the set of goods or services that a government hires and
consumes during a production process aimed at the production of public goods or services.
In this case, the main activity continues to be developed in the public organization, but some
activities, generally supportive, are contracted abroad, by resorting to outsourcing.
According to an OECD study, Portugal was until very recently among the countries that
have a lower intermediate consumption in the government. The same study concluded that in
this context, among the activities that were more outsourcing target are the cleaning, security,
catering, maintenance of spaces and buildings, transportation, waste disposal and systems or
information technology.
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102 The Total Outsourcing in Public Administration
In a completely different perspective of the former, we have the option to outsourcing

as a management tool, which completely transfers the production activities and / or provision
of public goods and services to the market. In these cases the state continues to fund public
services, but refers back to the private sector to its provision. Portugal resorted to the total
outsourcing moderately, with near a fourth provided by the private sector.
Analyzing the type of service that was target total outsourcing, we could verify that the
public transport service and waste collection had higher values than the social services such as
hospitals, kindergartens and rehabilitation facilities, nursing homes or homes for the elderly.
As for education, which usually absorbs a considerable share of the resources of
government budgets in the case of primary and preparatory education, Portugal was not one of
the countries that resort to the private sector. Still in the education sector, but at the secondary
and tertiary level, Portugal was one of the countries that resort to the provision of the private
sector.
Outsourcing has emerged as a response to pressures to obtain a state dwindling. Functions
that were traditionally performed in the public sector began to be performed, in whole or in part,
by private sector entities. This decrease in the functions developed by the State was based on the
doctrines of managerialism, particularly the NPM (Pollitt & Bouckaert, 2003). The outsourcing
focused mostly on services not included in the entity's core business such as cleaning, security,
catering services, maintenance of spaces and buildings, transportation, waste collection systems
or information technology. The reason why these services were the most chosen has to do with
the lower use of public values, more present in services and goods such as health or education
and the possibility to identify, in the contract, the expected outputs.
If on the one hand the use of outsourcing appears to have had a positive impact
in a significant part of the services or goods provided, registering gains in efficiency while
maintaining, or even increasing, the quality of goods and services provided, by another
there were somewhere the use of outsourcing corresponded to a complete failure (Jensen &
Stonecash, 2005). The use of outsourcing has made the State was concerned with issues that
were not previously foreseen: the State had to negotiate a posteriori with the private sector the
protection of employees in the public sector which are now managed under different rules and
methods of work of those who had before.
Although outsourcing has matched to an increase of efficiency, must not be overlooked
important aspects such as the increase in administrative costs for the management and supervision
of contracts and the costs of the consequences and impacts on human resource management,
along with a possible loss quality by the absence of sufficient monitoring mechanisms to assess
the goods and services provided. Should not be a target for outsourcing goods or services whose
standards of efficiency and quality are not possible to accurately measure. The transfer itself or
risk sharing should be planned and safeguarded in the contract at the time of decision making.
It is therefore important that the decision to adopt the outsourcing be preceded by a
thorough analysis, first the nature of the good or service target of outsourcing, and second the
type resorting to outsourcing. Simultaneously, and thirdly, it must be made a proper planning of
contracts and monitoring mechanisms of contract enforcement, considering at the same time,
and at each stage, the advantages and disadvantages of adopting this solution. Furthermore, in
each of these phases there shall be traditional public values of impartiality, transparency and
neutrality, universal access, in addition to the values of efficiency and effectiveness that usually
drive the outsourcing decisions.
According to Ribeiro (2014, p. 87) in a study conducted at the municipal level, the
results have shown that the population variables, population density, income of municipalities,
municipal debt and civil servants influence outsourcing decisions of municipal executives.
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Financial issues are also important issues in deciding to outsource public services. Finally, 103
the lobby groups / stakeholders, including civil servants emerge as factors that have a strong
opposition to outsourcing decisions involving entities with a strong emphasis on business
management.
Production Costs and the Outsourcing of Government
In the opinion of the OECD (2013, p. 84), production costs are the share of government
spending dedicated to producing goods and services. While some governments generate most
goods and services, other entrust a third party a big part of the production, especially to the
non-profit organizations or private entities. Government decisions on the amount and type of
public goods and services to produce, and the best way to produce them, influences how they
are delivered to citizens. Outsourcing has been used as a way to get external knowledge about
providing products and services to more efficient costs, although actual results can vary. In
addition, the use of outsourcing increases the role of government as a source of demand for
employment in the non-governmental sector. The government outsourcing is measured by
the amount of expenditure on goods and services purchased by the state, central and local
governments.
According to the same source, in 2011, the production costs of government goods and
services amounted for nearly a quarter of GDP on average among OECD member countries.
Between 2001 and 2011, the share of government production costs in GDP increased on average
by 1.6 percentage points among OECD member countries. However, this trend reversed itself
after 2009, resulting in a contraction of 1 percentage point. About 56% of the adjustment took
place through a reduction of salaries of civil servants.
Table 3. Production costs as a percentage of GDP (2001 and 2011).
2001 2011
Total Compen- Costs of Con- Total Compen- Costs of Con-

pro- sation of goods and sump- production sation of goods and sumption
duction general services used tion of costs general services of fixed
costs govern- and financed fixed govern- used and capital
ment by general capital ment financed
employ- government employ- by general
ees ees government

PRT Portugal 22,2 13,9 6,4 1,9 23,0 11,4 9,4 2,3
ESP Spain 18,3 10,1 6,7 1,5 22,3 11,6 8,7 2,0
United
GBR 20,8 10,1 9,7 0,9 24,6 11,1 12,5 1,1
Kingdom
OECD OECD 21,6 10,8 8,9 1,9 23,2 11,0 10,1 2,0
United
USA 18,5 9,8 7,3 1,4 21,5 10,7 9,2 1,6
States
Source: OECD (2013, p. 82-83)
In terms of the structure of production costs, almost half (47%) is the remuneration of
civil servants in 2011, while a lower percentage (44%) corresponded to outsourcing (used goods
and services financed by the government). The remaining 9% of production costs represent
fixed capital consumption. In 2011, in OECD member countries, outsourcing of government
represented on average 10% of GDP, although its importance varies greatly between countries.
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104 Table 4. Structure of production costs (2011).

Costs of goods and ser-
Compensation Consumption of fixed
2011 vices used and financed by
of employees capital
general government
PRT Portugal 49,4 40,7 9,8
ESP Spain 52,2 38,9 8,9
GBR United Kingdom 45,1 50,7 4,3
OECD OECD 47,4 43,6 8,9
USA United States 49,8 42,7 7,5
Source: OECD (2013, p. 82-83)
Taking into account the data from the OECD (2013, p. 82-83), Belgium, Japan and
Germany, less than 40% of expenditure correspond to intermediate consumption, which
implies that resources are spent primarily as provision delegated to third parties. In contrast,
Switzerland, Denmark, Finland and Estonia are spending about 80% of outsourcing resources
in intermediate consumption and therefore the government remains responsible for the direct
provision. In relation to the outsourcing data, Portugal has a balance between providing handed
over to third parties and the direct provision.
Table 5. Expenditures on general government outsourcing as a percentage of

GDP (2011).
Goods and services used by general Goods and services financed by

2011
government general government
Portugal 4,7 4,7

Spain 5,9 2,8
United Kingdom 12,5 0,0
OECD 6,7 3,4
United States 9,2 0,0
Source: OECD (2013, p. 82-83)
Conclusions
Outsourcing has emerged as a response to pressures to reduce the state. Functions that
were traditionally performed in the public sector began to be performed, in whole or in part, by
private sector entities. The reduction of state functions was based on managerialism doctrines,
particularly the NPM. Existing studies on outsourcing occurred in countries which earlier
applied these doctrines and, for this reason, they showed early results.
It cannot be forgotten that the NPM has pursued not only a leaner public sector, but also a
more efficient and effective public sector, to increase consumer satisfaction and choice. Though
outsourcing has not led to a smaller public sector, if the working conditions of public sector and
the quality improved or welfare has been strengthened, this could be interpreted as a benefit of
such a policy.
If, however, the rise in government spending was not accompanied by such an
improvement, this may suggest the existence of high transaction costs, coordination and
ownership of social performance by the private sector, or the private provision of public
goods does not imply necessarily efficiency gains. The use of outsourcing measures in public
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administration must be well-considered and evaluated, it is necessary to ensure that the values 105
of efficiency and effectiveness that usually drive the outsourcing decisions are safeguarded.
In respect of the outsourcing, Portugal is well positioned as it awarded to the third parties
substantial part of supplies of goods and services; however, there are still not enough data to
assess whether this measure has resulted in benefits to the state and if should be strengthened
or decreased.
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Received: September 21, 2016 Accepted: November 25, 2016
Maria da Conceição da Costa PhD., Coordinator, Professor of the Higher School of Accounting and Admin-
Marques istration of Coimbra (ISCAC Business School), Portugal.
E-mail: mmarques@iscac.pt, conceicao.m@netcabo.pt
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THE SPECIFIC AND GENERAL NATURE OF 107
LOGISTICS TASKS
Beáta Sz. G. Pató, Zoltán Kovács, László Szabó

University of Pannonia, Hungary
E-mail: patog@vnet.hu, kovacsz@gtk.uni-pannon.hu, szabo.laszlo@uni-pen.hu
Abstract
There are many ways to define and to describe jobs and assigning to people. This is a key issue in both blue
collar and in white collar jobs. This analysis focuses on the work content of jobs in logistics. However,
the methodology allows the exploration of closely related issues to determine competence requirements
as well. Jobs can be seen to have bearing on many areas including effectiveness, efficiency of individual
and organizational level, social and political issues.
The purpose of the research carried out by authors was to identify the necessary competencies in logistics
jobs. It included the analysis of the tasks using company document (job description) analysis in order
to identify the tasks and required competencies. Researchers extracted and then standardized the verb -
noun pairs which described the tasks. The frequency of these pairs gave the weight of the task in a job.
This method allowed the researchers to determine the overlapping rate of activities in different fields
(trade, transport, comprehensive activities). It was found that the most different/independent field in the
terms of similarities is warehousing.
Results suggest the rethinking of the training content in order to find the right balance between the
general and specific competencies. They also help organizations to optimize the composition of cross-
functional staff.
Key words: analysis of the tasks, supply chain, generalist logistics jobs, job descriptions, necessary
competencies, cross-functional staff.
Introduction
Research Premises
As logistics systems are becoming more and more complex, the need has arisen to
develop a set of criteria related to job tasks that can be used as guidance in choosing the most
suitable person (Garbacanová, 2012) for the given field of logistics.
There exist various sets of criteria which help the employer decide who to choose for
certain jobs. This decision, however, is not easy for blue collar jobs, and even more difficult for
white collar jobs, which might have a basic influence on the success of the organization. It is
nowadays not enough to measure skills, qualifications and general intelligence to find the right
person for a logistics job, one has to examine individual competencies, which help predict an
excellent level of employee performance in the near future (Hwan‐Yann Su at al, 2013). In
our study, we focus primarily on describing this task, although our database is also suitable for
analyses of competence.
The basic aim of logistics tasks is to satisfy the needs of business partners in an
environment of tough competition on the side of sellers, at the highest level possible. (Arnolds
et al, 2013; Cetinkaya, 2011; Christopher, 2005; Erturgut, 2012; Monczka, 2010; Pettersson and
Segerstedt, 2013; Ruston at al, 2010 & Scott et al, 2011) In order to perform this task optimally,
you need to select employees who are trained to the sufficient level (Erturgut & Soysekerci,
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108 2011). This is why we need a proper definition of tasks people employed in the area of logistics
must be able to complete. Research of tasks that are associated with logistics functions, with the
help of a well-built research model, can help formulate such definitions.
Organizations and companies are also in need of the results of scientific research that
can assist HR in clearly defining their requirements and define tasks in certain departments of
the company that management considers important from the point of view of competitiveness.
A logistics task means the flow of material or information in the supply chain.
Recognizing that Jobs influence several areas, like effectiveness, efficiency of individual
and organizational level, social and political issues, the European Union started programs
related to the world of work. Two continuous projects were involved: Novalog and Central.
They were run by extensive consortia from countries throughout Europe. These international
analyses were completed by local research in Hungary.
Many studies deal with tasks in logistics systems (Pfohl, 1996; Jünemann 1989; Halászné;
1998; Weber, Weise, Kummer,1993; Huising, 1993; Chikán, 2001; Kohut, Nagy, Dobos, 2005).
Weakly- and non-structured documents – like job descriptions (Pató, 2014b, Pató 2014c,
Pató, Kovács, Pató, 2006, Kovács, Pató, 2014) – require language-specific solution.
Asimakopoulos et al, (2011) use hierarchical task decomposition (HTA) as a grammar to
map actions in context. HTA is used in their application to describe what expert literature has
identified as the stages in producing sales forecasts. In order to evaluate this against reported
scenarios and observations of actual use, they apply an approach that uses a parallel to the
grammar of everyday language to represent user activities.
Abramowicz and Piskorski (2003) investigate the applicability of information extraction
techniques in real-world business applications dealing with textual data, since business
relevant data is mainly transmitted through free-text documents. They give an overview of the
information extraction task, design information extraction systems and provide some examples
of existing information extraction systems applied in financial, insurance and legal domains.
There are different ways to assign tasks. Lou et al. (2011) presented a negotiation-based
way. While it can be appropriate among organizations in an (open) supply chain, this sample can
hardly be followed inside an organization. ’From top to bottom’ breakdown is more common.
Market mechanisms work better among inter-organization situations than intra-organization
ones. Shodi et al. (2008) gave examples to activities that can be performed in the supply chain
of manufacturing and entertainment. The authors define the supply chain in this study according
to Ballou (2004). According to Ballou (2004), the supply chain comprises every activity that
passes and transforms products and services to the final consumer, along with the information
flow that accompanies these processes. (Ballou, 2004 in Pettersson-Segerstedt, 2013) “Logistics
is the planning, realizing and controlling process of the efficient and cost-effective flow of
input materials, semi-manufactured goods, end products and the related information from the
provenance to the site of use, all with the aim to satisfy consumer needs.” (Szegedi, 1998)
This research is very important not just on a local level but on a global level as well. The
organizations, companies require a result of an academic research that can provide help to the
human resources rational application through the correct task- need manifestation’s phrasing.
If the task definition, determination is explicit i.e. the proper scope of work is tied to the proper
work tasks and competencies than even inside of an organization the employee satisfaction
can increase and lead to more efficient working. Actually the working process becomes self-
synchronized with connecting the exact tasks. If the tasks are not accurately defined (e.g. to
generalized than the overlaps between the scope of work (the same task belongs to several
scope of work); possible ’gaps’ (unfinished work) can interfere with the flexible working.
However, with the economy’s globalization (Fodor, Jackel, Papp, Csiszárik-Kocsir,
Medve, 2015) it is not enough to be aware of this just locally but across organizational borders
even though the whole (SCM) Supply Chain Management (Christoher, 2011; Bylka, 2013;
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Iida, 2012; Rosing, Scheel, Scheer, 2015; Neeraja et al, 2014) must direct the working tasks 109
definitions and the total organization’s optimum performance. This is especially true – both at
the local or global level – for logistics which can be seen as the motivation of the economy. If
there is no link, a cooperation between the organization’s different departments then we have
to consider the emerge of the competition or “territorial egoism”, which can lead to the spread
of the logistical functions and tasks affecting the companies’ competitiveness and their roles
in the market.
This research provides an answer about what tasks are necessary and required for the
smooth operation of the different functional logistical areas and working. In order to create a
flexibly responding scope of work to meet the customer needs, the starting point will be the
exact definition of the tasks. The results of the research can only be useful if the logistical
scope of work has been created with proper care in the organization. When creating a scope of
work not only the task but assigning to it the assumptions and responsibilities will have key
importance as well. The results of this research can be a contribution to the definition of the
logistical scope of works which can be specified according to the organizations character.
Research Design and Research Questions
The main aim of this research is to focus on the logistical function. It is important to
identify the task of the functional logistical fields – such as purchasing, warehousing, production,
distribution. The tasks are defined according to the scope of work documentation. The scope
of work is a well-known and successful working organizational-management document around
Europe, including in Hungary. Therefore, with this research not only the functional logistical
fields must be brought into focus but also the importance of the scope of job description too
which is used as a manual to inform the scope of work.
This analysis was a part of an extensive study aimed at drawing the competency profile
of logistics jobs. Collection of tasks helped us to identify the necessary (and unnecessary)
competencies. Research questions related to tasks were:
• What individual/personal tasks are to be performed in order to achieve organizational
goals?
• What is the basic nature of these tasks in the terms of goal, task and process orientation?
• What is the level of specialization? How specific and general is the task formulation?
The research also seeks to define recommendation according to the repertory of tasks
of the different functional logistical fields. Further aim is to be also a guideline that how much
it is a necessity to define specifically the given tasks or rather communicate them universally.
The approach began by reviewing basic information sources including the existing job
descriptions from companies. These documents are standardized only on company level, if they
are at all. The document analysis was designed to:
a. Gather tasks
b. Gather competencies
Given that job descriptions are weakly structured, statistical task analysis was rather
difficult. Depending on the company, technology, culture, job designers use a wide variety of
synonyms when they describe the tasks of employers. Therefore, when we want to process
inputs from company documents the first step is to address the simplification and unification of
the terms being used in the documents. In the most simplified way tasks can be written using
word pairs (verb - noun). Researchers identified verb - noun pairs which could be statistically
processed. For example ‘order material’, ‘fill in a form’, ‘receive material’, ‘pick goods’.
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112 Table 1. Characteristics of the phases of research.
Stages 1. stage 2. stage

Phases Set up of the Analysis of the “Secondary analy- Set up of the Case stud-
database of job database of job sis”, comparison questionnaire ies /in-depth
descriptions descriptions of the results of based database interviews
- work tasks-compe- - work tasks- “Novalog” research and analysis
tencies of logistics competencies of thereof
logistics
Characteristics
Goal of activity Determine logistics Statistically analyse Compare the Confirm the Confirm the
work tasks and the database domestic empiric results of the results of the
competencies results with the in- competency competency
ternational research research research
results
Source of pattern Job descriptions Processing of 349 International 80 pcs question- In-depth
612/349 job descriptions research results naires completed interview
of 3 years of 16 validly conducted at
countries 2 companies
Method of data Documentary analy- Documentary Comparison of
Getting students Interviewing,
collection sis of job descrip- analysis of job de- research results
to help complete monitoring
tions scriptions the question-
naires
Methods, tools of Qualitative and Preparing of simple Qualitative methods Preparing of Qualitative
data analyses quantitative methods and multi-variable Preparing of simple simple and multi- methods
statistics and multi-variable variable statistics
statistics
According to Pfohl (1996) the most important tasks in a logistics system can be seen as
(Table 2).
Table 2. Decisions and activities in logistics systems (Pfohl, 1996).
Receiving order
Order process- Order processing
ing Order analysis by information sources
Forwarding order information
Giving the number of merchandise to be stored (selective storage, in alphabetical order)
Inventory Quantity of order and order point for loading stock to be stored
Determine safety stock
control Control of stock to be stored
Preparation of short-term prognosis of demands
Purchase or lease of storage and storage equipment
Determination of quantity, place of origin, storage capacity and transport area
External or own management of the warehouse
Determination of the requirements of storage technical equipment for storage and takeover
Warehousing Definition of storage area of the warehouse
Method of storage (establishing the loading area)
Establishing the loading ramp
Management of the means of transport modes
Arrangement of takeover
Productive employment of storage staff
Type of the means of transport
External or own operation of the means of transport
Purchase or lease of the means of transport
Transport Combination of the modes of transport
Organization of transport (optimal transport routes, implementation plans, load of the means of
transport)
Fulfillment of logistics functions of packaging (functions of protection, storage, transport, market-
Packaging ing and information)
Making logistics units (storing-, box-, and transport units etc.) as prerequisites for rational trans-
port chain
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114 Following the rules of document analysis (Kippendorf, 1995), we created 311 verb-noun
pairs in the first round. They were ‘raw’ pairs. The main objectives at this stage were a high
level of standardization and low information loss.
There are distinctions between main and other tasks/activities. As a result of that, three
categories emerged:
• Main task/activity
• Additional activity
• Questionable, hard to categorize into the two above.
During a revision of the raw pairs, we combined the similar ones. It was quite challenging
because sometimes the word-for-word identity still meant different tasks, while in other cases
different words covered the same tasks depending on context. After combining them, we found
that 226 noun-verb pairs are enough to describe logistics tasks.
Coding was carried out using the next categories:
Direction of related material flow
1. External relations
10. External relations, direction cannot be identified
11. Purchase (incoming)
12. Sale (outgoing)
2. Transport
20. Transport direction cannot be identified
21. Inbound transport
22. Outgoing transport
3. Inventory/warehousing
4. Production/transformation
40. Production/transformation
41. Handling/movement
42. Transformation
5. Packaging
50. Packaging in general, no specific information is available
51. Packing
52. Unpacking
Nature of activity: physical and/or mental

Content of flow: material and/or information
The competence database was set up with codes in the same way, but that analysis is out
of the scope of this study.
Results of Research
During the analysis there were several methodological considerations such as the issue
of representativeness of the statistical analyses. The used database cannot be considered as
representative data source, so the results of the research are able to define the general thesis to
the given sample group. This gives the opportunity for further research to develop the thesis
based on a representative sample.
During the research we analysed the scope of work documents. Content analysis is a
research technique which uses special applications and protocols to process the data. The aim of
content analysis is to lead to new experiences and to forecast the observable which can help the
decision making or to articulate the reality and to get results that can be used in practice as well.
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Tasks on Different Areas 115
The following organizational functions were identified:

• Trade – purchase,
• Transportation – material handling,
• Inventory,
• Sales,
• Company level/comprehensive logistics activities,
• SCM related functions.
Analyses were carried out on every area. However, given the large extent of the research
findings, this article presents only the findings from the trade - purchase area.
87 noun-verb pairs were identified in the analysis of trade purchase jobs. 87% of total
pairs suggest a large overlapping of tasks with other areas. 11 of those 87 appeared at least 20%
in each job description. They can be seen as ‘common’ tasks/activities.
In the case of both verbs and nouns there are differences between ‘key’ and ‘involved’.
‘Key’ noun and verb means that the word or its synonyms appeared in the document. ‘Involved’
means these verbs had different word forms, but the content was close. ‘Key’ can be seen as
category. The logic is similar in the case of nouns and verbs. “Key noun’ assigned to ‘key
verb” and is inherited. Based on this principle, one key verb and one key noun (as a pair) were
determined for each group while there were many involved verb and noun pairs. The numbers
in brackets show the position of the original (raw) verb-noun pair in the list. To make it clear,
we can demonstrate by working through an example:
Key verbs: to identify, to make it identifiable. Related key nouns: product, part, material.
During the overview of the verb-noun pairs in the database we found a verb “to label”
at position 32. Considering its content is ‘making something identifiable’ we have involved
this verb under the key verb. Subsequently, it has brought its nouns ‘material, goods, finished
products’ as involved nouns. There were more nouns for the verb ‘to label’ in job descriptions.
‘Key’ refers to the task when there is an explicit reference to it in the job description.
They are regarded as important, characteristic, typical, main tasks. ‘Involved’ is the task, when
there is a definite reference that they can be performed but not key tasks. ‘General’ is a task that
has no reference for its importance. An example would be a simple task list where there is no
distinction between tasks.
‘Keeping contact with clients/colleagues/suppliers/haulers’ appeared in 37.8% of total
job descriptions, in trade-purchase job descriptions. Most frequently mentioned tasks in that
area were:
• To keep contact with clients/colleagues/suppliers/haulers.
• To give information / providing data.
• To check activity/work/achievement/execution of tasks.
• To observe work, activity (for example material handling, packaging, loading).
‘To keep contact with clients/colleagues/suppliers/haulers’ as general task is present in
26.3 % of job descriptions. This proves the importance of communication, smooth and efficient
information flow on this area.
Analyses of other areas were carried out in the same way.
Analysis of Specificities
Tasks which are present in at least 20 % of job descriptions from the point of view of
specificity were examined.
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116 There are three tasks which are in the jobs of all the four functional areas:
• ‘To keep/to make them keep rules’
• ‘To control work’
• ‘To keep contact with clients’
Tasks which are present in three functional areas:
• ‘To give information’
• ‘To check activity’
Tasks which are present in two functional areas:
• ‘To preserve/to keep in order/to use properly, to save; to preserve; to protect
instruments/materials/goods conservation/building and equipment/stocks
materials/products; company asset; materials, stocks ; property, asset’
• ‘To ensure/to arrange; to pay attention to /to keep/to ensure/to care order in
the warehouse, at the work area’
• ‘To make identifiable/to identify/to label product, part, material,
merchandise/finished good’
• ‘To do other task/ ad hoc task/ what the superior orders him/her to do
• ‘To do work/ tasks/activity’
Tasks that belong to only one area can be regarded as specific ones. In the case of trade-
procurement they are the following:
• ‘To control work, operation, activity, process, the completion of tasks,
manufacturing, connection with contacts, loading; organization; planning;
selection; traffic; transport, forwarding; production’
• ‘To evaluate/to qualify; to operate work, activity, employee/supplier,
performance, worker, offer, evaluation system’
• ‘To provide to satisfy; to serve works, company, user, production, demands,
order; works, orders; customers’
• ‘To indicate/notify problem, extraordinary affair, mistake, deflection’
There are three tasks on transport- material handling area which occur in at least 20% of
job descriptions:
• ‘To answer for work, for tasks, for completion of work, for activity’
• ‘To consider decision’
• ‘To organize work, activity (e.g. warehousing, material supply activity,
storing, transport, testing, transfer’
Following the logic above, tasks specific to warehousing:
• ‘To check/verify; to monitor order, material, goods, finished goods, quality/
quantity etc.; condition of goods; cargo’
• ‘To receive / to accept materials/goods, product, parts, bundle, tools, foreign
goods, return goods, pallet, cargo’
• ‘To participate/to take up in stock taking, on inventory stocks’
There was only one task that occurred only in the company’s overall, comprehensive job
description:
• 'To decide, to determine; to set up/to organize stocks, tasks, plans work,
tasks
After the analysis of job descriptions we can conclude that the general task formulation
is common.
Table 3 shows the result of the analysis. Researchers marked ‘YES’ where the task is
required for certain field (appears at least in 20% of job descriptions related that area). /number
tells the rank number in the terms of frequency in the area task list.
For example ‘to consider decision’ occurs in at least 20% of job descriptions related to
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transport-material handling. Looking at the whole task list of transport-material handling ‘to 117
consider decision’ can be seen in 9th position.
Table 3. Comparison of tasks.
Comparison
Description of tasks and activities Comparison of the task demands appearance in at least 20% of job descrip-
with noun-verb pairs tions with the job description samples of the examined area
TRADE - PURCHASE
TRANSPORT – MATERIAL HANDLING
WAREHOUSING
COMPANY
COMPREHENSIVE LOGISTICS WITHIN THE
related to tasks Process oriented goal ori-

functional areas
number of
oriented
ented, task oriented, process
Specialist - Generalist2
1
Key verbs To keep/to make sure they are kept
Verbs involved To keep (14,15); to execute/to keep (302)
regulations e.g. certificate discipline, quality regulations, instructions, safeguarding regulations,
health protection rules, environment protection, security, certificate system, stock taking system,
Key nouns
rules, cleaning system, description of instruments use, document handling rules, organizational and
operational rules, statutory and other authority regulations, ISO standard requirements
Nouns
Labour safety, fire safety, operation regulations; work order, work discipline; instructions, tasks
involved
4
YES/33 YES/1 YES/1 YES/4
C Á
Key verbs To check
Verbs involved To check/verify (87,88,90, 94); to monitor (133)
Key nouns Order, material
Nouns
Materials, goods, finished goods, quality/quantity etc.; condition of goods; cargo
involved
1
NO NO YES/2 NO
C Á
Key verbs To receive / to accept
Verbs involved To accept (140)
Key nouns Materials/goods, product, parts, bundle, tool, foreign goods, return goods, pallet
Nouns
Cargo, goods
involved
1
NO NO YES/3 NO
F Á
Key verbs To preserve/to keep in order/to use properly
Verbs involved To save (224); to preserve(225); to protect (301)
Key nouns Instruments/materials/goods conservation/building and equipment/stocks
Nouns
Materials/products; company asset; materials, stocks ; property, asset
involved
2
NO YES/3 YES/4 NO
C Á
Key verbs To participate
Verbs involved To take up
Key nouns In stock taking, on inventory
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118 Nouns
Stocks
involved
1
NO NO YES/5 NO
F S
Key verbs To give
Verbs involved To supply (238)
Key nouns Information (to inform)
Nouns
Data
involved
3
YES/2 NO YES/6 YES/6
F Á
Key verbs To control
Verbs involved
Key nouns Work, operation, activity, process, the completion of tasks, manufacturing, contact keeping
Nouns
Loading; organization; planning; selection; traffic; transport, forwarding; production
involved
4
F Á
Key verbs To keep contact
Verbs involved
Key nouns With customers/with colleagues/with suppliers/carriers
Nouns
involved
4
F Á
Key verbs To ensure
Verbs involved To arrange (272); to pay attention to /to keep/to ensure/to care (294)
Key nouns Order in the warehouse, at the work area
Nouns
Warehouse; for order, for cleanness
involved
2
NO YES/6 YES/10 NO
C Á
Key verbs To make it ready for identification, to identify
Verbs involved To label (32)
Key nouns Product, parts, material
Nouns
Materials; goods, material; finished product
involved
2
YES/7 NO NO YES/2
C Á
Key verbs To do
Verbs involved
Key nouns Work/ tasks/activity
Nouns
involved
2
NO YES/7 NO YES/3
C Á
Key verbs To decide
Verbs involved To decide (42); to determine (230); to set up/to organize (258)
Key nouns About stocks, tasks, plans
Nouns
Work, tasks
involved
1
NO NO NO YES/7
F Á
Key verbs To do
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Verbs involved 119

Key nouns Other task/ ad hoc task/ what the superior orders him/her to do
Nouns
involved
2
YES/6 NO NO YES/8
C Á
Key verbs To check/verify
Verbs involved To monitor (137)
Key nouns Activity/work/performance/the completion, execution of tasks
Nouns
Work, activity; material handling; packaging; loading
involved
3
YES/4 YES/2 NO YES/9
F Á
Key verbs To answer
Verbs involved
Key nouns For work, for tasks, for completion of work, for activity
Nouns
involved
1
NO YES/8 NO NO
C Á
Key verbs To consider
Verbs involved
Key nouns Decision
Nouns
involved
1
NO YES/9 NO NO
C Á
Key verbs To organize
Verbs involved To organize(235)
Key nouns Work, activity (e.g. warehousing, material supply activity, storing, transport, testing)
Nouns
Transfer
involved
1
NO YES/10 NO NO
F Á
Key verbs To do
Verbs involved To inform (211)
Key nouns Improving suggestion (to improve/develop)
Nouns
Critical remarks
involved
1
YES/5 NO NO NO
F Á
Key verbs To control
Verbs involved
Key nouns Work, operation, activity, process, completion of tasks, manufacturing, keeping contact
Nouns
Loading; organization; planning ; selection; traffic; transfer, forwarding; production
involved
1
YES/8 NO NO NO
F Á
Key verbs To evaluate/to qualify
Verbs involved To qualify (241); to operate (243)
Key nouns Work, activity, employee/supplier, performance, worker, offer
Nouns
Evaluation system
involved
YES/9 NO NO NO 1
F Á
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120 Key verbs To provide

Verbs involved To satisfy (198); to serve (205, 206)
Key nouns Works, company, user, production
Nouns
Demands, order; works, orders; customers
involved
YES/10 NO NO NO 1
C Á
Key verbs To indicate/notify
Verbs involved
Key nouns problem, extraordinary affair, mistake, deflection
Nouns
involved
1
YES/11 NO NO NO C Á
Analyses of other areas were carried out in the same way.
Discussion
During the analysis of the main characteristics and function specific task of the functional
areas we are looking for the answers for the following yes or no questions:
• Is the logistical scope of work aim-, task- or process oriented according to the
documentation?
• Is the phrasing in the logistics scope of work specialist or generalist (universal or
general)?
Using qualitative approach, we classified the representative (at least 20%) tasks from the
point of view orientation. Results show that about the half the representative tasks are goal/task
oriented while the other half are process oriented.
Another observation is that there are general (universal) formulations in 90.5 % of total
cases and only 9.5 % are area specific.
The task overlapping between areas can be seen in Table 4. It also suggests a low level
of specialization.
Table 4. There is a significant common activity in the area of comprehensive

logistics within the company and in the functional area of
tradepurchase.
Comprehensive
Trade – pur- Transport – mate-
Warehousing (%) logistics within
chase (%) rial handling (%)
the company (%)
Trade - purchase X 67.6 38.9 70.3
Transport – material handling X X 34.0 69.0
Warehousing X X X 30.5
Comprehensive logistics
X X X X
within the company
The overlapping is the least (30.5%) between warehousing and comprehensive logistics
activities. Next are warehousing – transport, material handling (34%), warehousing – trade,
procurement (38.9%), transport, material handling - trade, procurement (67.6%), comprehensive
logistics activities - transport, material handling (69%)
It seems that warehousing has the least similarities with others.
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Conclusions 121
The results of this research contain originality both in the experimental and theoretical
professionals. These results can be used both in practice and both theoretically. As a result of
this research we have an objective picture of the scope of works in logistics which are based on
empirical results, which is supplementary to the specialized literature.
An important result of the research is the research input-output multidimensional data
model (Figure 1; Pató, 2014a), which can be useful in other researches, to relationship account,
exploration and introduction.
In the same time it is possible to articulate recommendations about the logistical scope
of works according to the results of the research focusing on task-activity. The results of the
research are recommended to use according to the aims of the organization and the possibilities.
In the same time the results can be used not only in the work but in the education as well,
according to for what they should prepare, and to make able the future’s logistical employees.
The researchers are planning the repetition of the research focusing on how the
logistical scope of work fields and task requirements are changing i.e. what tendency can be
seen in the task’s changing, varying, transformation.
The empirical research pointed out some characteristics of jobs on logistics. There are
large overlaps in task requirements between areas. This suggests that people’s multifunctionality
is important. Results can be utilized in training and staffing. It seems that logistics students
in different educational systems have to get more general knowledge and competencies. To
become a specialist might happen at the employer and can be only temporarily. This allows
flexibility in the labour market.
It is important to maintain an optimal ratio of these for an employer too. They are
suggested to have efficient specialists and generalists who have the overview of the whole
system and in the case of necessity they can substitute or can become specialists.
If the professionals have the correct information about the requirements then according
to this research with accurate scope of work documentation the organizations can get a real
competitive advantage.
Footnotes
1 „C” indicates the goal-task oriented approach, „F” indicates the process oriented
approach in the chart.
2 „S” indicates the special task definition mode, „Á” indicates the general (universalist,
generalist) definition mode.
3 „/” mark after „YES” indicates, where the examined task-activity in the given functional
area task-list appears, i.e. the significance of its existence.
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Received: October 05, 2016 Accepted: December 02, 2016
Beáta Sz. G., Pató PhD., Associate Professor, University of Pannonia, Egyetem u. 10, 8200 Veszprém,
Hungary.
E-mail: patog@vnet.hu
Website: http://www.gtk.uni-pannon.hu
Zoltán Kovács Professor, University of Pannonia, Institute of Management, Department of Supply

Chain Management, Egyetem u. 10, Veszprém, 8200, Hungary.
E-mail: kovacsz@gtk.uni-pannon.hu
László Szabó Assistant, University of Pannonia, Hungary.

E-mail: szabo.laszlo@uni-pen.hu
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124
NONPROFIT MARKETING IN KOPAČKI RIT
NATURE PARK AS TOURIST DESTINATION
Vesna Vučemilović
College for Management in Tourism and Informatics in Virovitica, Republic of Croatia,
E-mail: vesna.vucemilovic@yahoo.com
Biserka Vištica
Ministry of the Sea, Transport and Infrastructure, Republic of Croatia
E-mail: biserka.vistica@gmail.com
Abstract
Eastern part of the Republic of Croatia as a tourist destination is not fully valorized yet, despite its
natural values and rich cultural heritage. Stronger contribution to touristic development could be
ensured by Kopački rit Nature Park as potentially great tourist attractor. Its flora and fauna attract
people for educational and tourist reasons. Tourism in nature parks has certain limitations due to
primary goals which are protection and preservation of nature together with sustainable management
of nature resources and ensuring an undisturbed course of natural processes. The aim of this research is
to emphasize importance of marketing tools implementation in process of tourist activities development.
Through application of marketing techniques and especially nonprofit marketing, primary goals related
to nature protection can be harmonized with development of self-financing through tourism activities.
Research was conducted by using case study methodology. Relevant persons for the topic were interviewed
and from collected information SWOT analysis was made which may be used for policy suggestions in
process of creation adequate tourist products and services together with ensuring quality education for
visitors and minimizing visitors influence on natural resources.
Key words: Kopački rit, protected areas, tourism in nature parks, nonprofit marketing.
Introduction
Kopački rit Nature Park is a non-profit organization whose primary task is managing one
of the most important protected wetland area in the Republic of Croatia. As a protected area of
international significance and with unique features, Kopački rit Nature Park has strong potential
for improving tourist activities. Currently, majority of visitors are organized groups that take a
standard tour through the park which generally includes a short presentation of the Nature Park
in the admission presentation center, a boat tour across some of the lakes and channels in the
Nature Park and walk over the boardwalks. In order to increase number of visitors and make
their visits longer, Nature Park management understands that they must be more proactive.
Their biggest concern is how to expand tourist activities and at the same time ensure sustainable
development and effective nature protection. The answer to their problems lays in marketing
management implementation and especially nonprofit marketing.
Marketing management (Kotler, 2001) is a process of analyzing business opportunities
and limitations on the market, planning strategies and marketing-mix, execution of marketing
tasks and control of marketing actions effectiveness. It helps in process of creating values
such as ideas, products, services, institutions etc. which are being exchanged on the market
to satisfy consumers’ needs, desires and demand with purpose of achieving business goals
(Kotler, 2001). Marketing experts select target markets, position product and services on
selected market and create specific marketing mix i.e. price, distribution, range of products
or services and promotion. Kotler et al. define marketing management as selection of targeted
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Vesna VUČEMILOVIĆ, Biserka VIŠTICA. Nonprofit marketing in Kopački rit nature park as tourist destination
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markets and creation of long term profitable relations with customers (Kotler et al, 2006). 125
According to American Marketing Association “marketing management is the process of setting
marketing goals for an organization (considering internal resources and market opportunities),
the planning and execution of activities to meet these goals, and measuring progress toward
their achievement. The process should be ongoing and repetitive (as within a planning cycle)
so that the organization may continuously adapt to internal and external changes that create
new problems and opportunities” (2016, October 25). Retrieved from http://www.marketing-
dictionary.org/Marketing+Management. Marketing management begins with internal and
external analysis. Through research and market selection based on present market condition
and future demand assessment targeted market is being selected and marketing strategy
is being defined. According to Meler marketing for nonprofit organizations such as nature
parks, has been developed to increase their effectiveness (Meler, 2006). Basic problems of
nonprofit organizations are insufficient financial resources, inadequate legislation and lack of
professionalism in management structures (Meler, 2006). One of the ways for solving these
problems is acceptance and implementation of marketing management.
The aim of this research is to give recommendations for more efficient marketing
management in nature parks through management of their tourist offer. By increasing the
range of offered products and accepting the fact that improvement of visiting system can be in
accordance with primary goals related to nature protection, Nature Park management can gain
certain benefits for Kopački rit Nature Park, local community and a whole region.
Problem of Research
Primary aim of this research is to contribute in development of appropriate marketing

management strategy of Kopački rit Nature Park as tourist destination. Tourist demand for
visiting protected areas is increasing as an answer to accelerated rhythm of urban life. Market
is being divided on segments defined by life style, personal preferences and life circumstances.
This particular elements can be used in process of creating and managing tourist products and
services in Kopački rit Nature Park. Currently, Nature Park management is focused on primary
goals related to nature protection. Visiting activities are only one part of their operations which
have been stagnating. In order to improve these activities and ensure stabile income they have
to be more proactive. Nature Park management has to implement marketing techniques and
develop new products and services which will be in accordance to trends in tourist demand.
Research Focus
The most important research of national parks and nature parks consumers’ attitudes and
consumption was conducted by Institute for Tourism in the study TOMAS 2006 prepared for
the Ministry of See, Tourism, Transport and Development. Primary task of this research was
to collect actual and exact data related to tourist demand and consumption in national parks
and nature parks. This information was supposed to be the base for creation of tourist products
in accordance to market demands, protected areas promotion and marketing management
improvement. Research was conducted in six national parks and two nature parks. Our goal
was to see which improvements were made in Kopački rit Nature Park in part of management
improvement through marketing management implementation.
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126 Methodology of Research
General Background of Research
Research in Kopački rit Nature Park was conducted by using case-study methodology
which is often used for different business situations simulation. Information used are primary
and secondary data. Primary data are collected through interviews of relevant persons for the
topic. Secondary data are statistical data from publications of State Bureau of Statistics, legal
acts, international agreements and conventions (RAMSAR), regulation and EU directives
regarding nature protection and Strategy and Action Plan for the Protection of Biological and
Landscape Diversity of the Republic of Croatia (OG 143/08). Primary data used are collected
through research conducted by Institute for Tourism “TOMAS 2006 - National Parks and Nature
Parks – Attitudes and consumption of visitors in National parks and nature parks in the Republic
of Croatia”. This research included visitors’ socio-demographic characteristics, visitors profile
related to life style, visiting frequency, motives for visiting protected areas, information sources
about protected areas, activities during their stay and their intention to visit protected areas
again. Research was conducted by interviewing randomly selected 2.258 visitors.
Instrument and Procedures
The basic techniques of data collection were interviews with former and present
employees including management structures, analyses of documentation, statistical data, legal
acts, international agreements, conventions and EU regulation. Collected data were used in
SWOT analysis which gives conceptual framework for strategic planning. As a result of SWOT
analysis matrix shows which resources may be used to seize opportunities on the market.
According to the results appropriate strategy can be developed: maxi-maxi, maxi-mini, mini-
maxi and mini-mini strategy (Weihrich & Koontz, 1993).
Data Analysis
Collected data through interviews with former and present employees was analyzed by
qualitative methods such as analysis, synthesis, comparison and classification. Conclusions
based on collected data are presented in SWOT matrix without ranking because of similar
significance of each one.
Results of Research

Republic of Croatia has extraordinary biological and landscape diversity which can be
seen from the fact that 19 national parks and nature parks are declared till now. Each one of
them attracts certain type of visitors. Importance and beauty of these protected areas strongly
contribute to tourist image of the country. They are important tourist attractors which can
positively influence tourist results. According to Nature Protection Act (OG 80/13) nature
parks are managed by public institutions founded by Republic of Croatia. Their basic activity
is protection, maintenance and promotion of protected area which helps them to protect and
preserve nature, ensure undisturbed course of natural processes and sustainable usage of natural
resources. Nevertheless, although public institutions are nonprofit organizations they have to
respect marketing rules. Their primary goal is to protect and preserve protected area but also
develop visiting activities.
According to research conducted by Institute for Tourism “TOMAS 2006 - National
Parks and Nature Parks – Attitudes and consumption of visitors in National parks and Nature
parks in the Republic of Croatia” socio-demographic research of nature parks visitors showed
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that foreign visitors are majority in national and nature parks at the coast (NP Plitvička jezera 127
90%, NP Paklenica 88%). Visitors from Republic of Croatia were majority in Kopački rit
Nature Park (73%) and Sjeverni Velebit Nature Park (69%). Average age was 41 years old, they
have higher education and they are mainly not members of associations for nature protection or
associations involved in recreation activities in nature. Visitors’ motive for visiting national and
nature parks was enjoyment in beautiful landscape, holiday and relaxation. The most important
source of information about protected areas for respondents was internet (33%), brochures
and advertisements (16%), friends and relatives (38%) and their previous experience during
their stay in national and nature parks (22%). Activities taken during their stay were nature
photographing (84%), food and beverages consumption (38%), visiting info center (31%) and
souvenirs shopping (31%) (2016, October 17). Retrived from http://www.iztzg.hr/UserFiles/
Pdf/Tomas/2006_TOMAS_NP_I_PP_HR.pdf.
Kopački rit Nature Park is located in the northeastern Croatia. “It has a typical relief
structure because of the river's water activity and the floodwaters that flood the area. Rivers
create banks and islands called “ade” and armbands called 'dunavac' or 'old Drava' in their
live streams. On the other hand, the water in the floodplain deposits sediments in one place
but deepens the ground in another, so the whole area obtains a specific undulate appearance.
This kind of pond and beam layout gives the area a unique appearance. The entire floodplain
obtains a delta kind of look and is extremely exceptional because the Danube creates a so-
called “inland delta” in its middle stream with the assistance of the Drava. A phenomenon
like this is not notable for other European rivers in this form and therewith gives this area a
global significance.” (2016, July 05). Retrieved from http://pp-kopacki-rit.hr/about.html. Due
to the importance as a wetland habitat and habitat of a large number of birds, in 1986 it was
included in the inventory of Important Bird and Biodiversity Areas (IBA) and in year 1993 it
was included on the List of Wetlands of International Importance, under the Convention on
Wetlands (Ramsar).
Basic activity of Public Institution that governs Kopački rit Nature Park is protection
of nature. One of the activities is also development of visiting system through professional
guidance, sightseeing and visitors’ transportation within Nature Park together with education
about ecology and nature protection. People are usually attracted to wetlands because of their
unique ecological values, aesthetic appeal and specific beauty of nature. Visiting activities
in Kopački rit Nature Park are currently within reception center “Mali Sakadaš” which has
various facilities for visitors such as reception, souvenir shop, coffee bar, multimedia exhibition
and board walks which includes educational boards, children’s playground and parking space
for buses, cars and bicycles. There are also visiting activities in the part of special zoological
reserve but only by boats, rowboats and canoes. Recreation in nature is possible in many ways
in Kopački rit Nature Park. There are many biking trails and bicycles can be rented. It is also
possible to take a train tour, amphibian tour or walks on bridges of Kopački rit Nature Park.
There are several canoe tours, bird watching program, photo safari program and ranger junior
program. Occasionally, special events are being organized. After complete renovation, Tikveš
castle complex will have special role in future development of visiting system because of
historical and cultural values.
Contemporary analysis of tourist market demand are stating that ecotourism, cultural
tourism, thematic tourism, adventure tourism etc. are the most dynamic market segments.
Kopački rit Nature Park can develop its offer on tourist market covering all this market
segments. Ecotourism has developed from ecologically and socially acceptable way of traveling
to important element of tourist offer regarded as tourism with strong nature component. It gives
an opportunity for growth to less developed tourist areas. Consumer market of Eco tourist
destinations has two segments. First segment are small groups of tourists which have special
interest for ecotourism and they are spending whole vacation in that way. Second segment are
great number of those who spend vacation in classical tourist destinations and take excursions
to national and nature parks. This type of tourism together with adventure tourism and tourism
in rural areas is potential type of tourism activities in national and nature parks.
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128 Table 1. Kopački rit Nature Park SWOT analysis.
Strengths Weaknesses
• Measures for protection of ecosystems are set and • Undeveloped and insufficiently differentiated
defined. tourist offer.
• Highly motivated nature parks management and • Tikveš castle complex is still not completely
employees. renovated and ready for visiting activities.
• Good cooperation with users and wider society. • Lack of awareness in local community regarding
• Unique nature. importance and uniqueness of Kopački rit Nature
• Exceptional biological diversity. Park.
• Adequate transport infrastructure. • Insufficient uniformity in business operations
• Brand familiarity on European level due to interna- related to complementary services in surround-
tional convention (Ramsar). ings of Kopački rit Nature Park.
• Member of protected areas network along the Dan-
ube River Danubeparks.
• Well established relations with present customers/
clients.
Opportunities Threats
• There is market segment for excursions in nature. • Negotiating power of customers/clients is increas-
• It is possible to enter new markets and market seg- ing.
ments. • Just one same product can’t be profitable on the
• Stronger product differentiation can be done. long run.
• New technologies such as internet can be used in • Low purchasing power of local inhabitants.
promotion and sales of nature parks product and • Long period of recent recession.
services. • Possible ecological threats to ecosystem.
• It is possible to develop tourist offers by networking
with other nature parks.
In the previous period Kopački rit Nature Park established itself as Eco touristic
destination. Nevertheless, it has great potential for developing these activities through
thematic tourism, adventure tourism and cultural tourism. Thematic tourism is one of the
major development initiators of growth in less developed areas. It is based on 3E principle
“Entertainment, Excitement, Education” because it includes tourist offer which combines these
three elements. Kopački rit Nature Park due to potential in nature beauty, cultural and historical
values has prerequisites for development of thematic tourism. In that way, new market segments
can be entered and new potential visitors can be attracted. Adventure tourism in global market
of tourist services represents market niche which has significant growth tendency. Because
of its natural potential, Nature Park has numerous ways of developing an offer for adventure
tourist services such as canoeing as only one of them. Cultural tourism can become an important
part of tourist offer in Kopački rit Nature Park. Today, it is existing but it is not sufficiently
presented and promoted. For that purpose, improvement must be done in marking of cultural and
historical monuments, further installing information boards, completing renovation of Tikveš
castle complex and presentation of cultural values within the nature park and its surroundings.
All these activities would significantly improve quality of tourist offer in this segment.
Discussion
The only relevant research regarding this issue was conducted by Institute for Tourism
“TOMAS 2006 - National Parks and Nature Parks – Attitudes and consumption of visitors in
National parks and nature parks in the Republic of Croatia”. There are only several studies
covering this topic but related to organizational aspects in management of nature parks.
Marketing management in development of tourist activities in Kopački rit Nature Park
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can bring numerous benefits to Nature Park through increased self-financing but also to a 129
neighborhood area and whole northeastern Croatia. Unique ecosystem, biological diversity and
abundance of preserved nature is competitive advantage of this area related to other protected
areas in the Republic of Croatia and neighborhood countries. Results of SWOT analysis
showed that there are strengths that enable Kopački rit Nature Park to use opportunities on
the market especially in a segments of ecotourism, cultural tourism, thematic tourism and
adventure tourism. Nevertheless, Nature Park management has to implement marketing way of
thinking and procedures which are necessary for entering new market segments. Without that
stagnation will be continued and current opportunities on the market will not be used for further
development of tourist activities in Kopački rit Nature Park.
Conclusions
High quality management of visiting activities which is in accordance with primary goals
meaning protection and preservation of nature, is key to a successful marketing management
nature park. This may be achieved through careful management of visiting capacity for each
location within the nature park. By implementation of visitors dispersion regarding visiting
time and space, the most visited locations will be relieved, seasonal crowds decreased and
peace will be provided in protected areas. Through that dispersion it is possible to expand
visiting season from nine months at present, to the whole year. New possibilities for increase
in visiting activities can be achieved through networking with other national and nature parks
which would provide an opportunity for creation an offer of excursions to several protected
areas. Distribution channels for products and services provided by Kopački rit Nature Park
should be improved by establishing long term business relationships with mediators on the
tourist market. One important part of activities is definitely customer relationship management
(CRM) which can contribute to better and more quality communication with customers together
with collecting data regarding customers’ habits and behavior. Promotional activities should be
intensified and include new technologies such as applications for mobile phones and social
networks which may reinforce communication with customers, especially younger population.
In accordance to primary goals of nature protection, management should consider establishing
educational center in Nature Park especially for younger population. In that way they would
contribute to activities in Nature Park and help in process of establishing connection with future
consumers.
Organizational structure in Nature Park is set in a way to achieve planned goals primary
related to nature protection. For improvement of present situation in tourist activities management
Nature Park management should consider new possibilities in organizational structure based on
marketing orientation, promotion improvement, coordination and synchronization of business
operations in total. All that should result with customer orientation and better position on the
tourist market.
It must be noted that Kopački rit Nature Park is perceived as destination for one day or
half day excursions so further research should be done regarding that issue.
References
American marketing Association: AMA Dictionary (2016). Retrieved October 25, 2016, from http://www.
marketing-dictionary.org/Marketing+Management.
BirdLife International (2016). Important bird and biodiversity area [Fact sheet]: Alluvial wetlands of the
River Danube. Retrieved from http://www.birdlife.org July 05, 2016.
Institute for Tourism: TOMAS 2006 - National Parks and Nature Parks – Attitudes and consumption of
visitors in National parks and Nature parks in the Republic of Croatia (2006). Retrieved October
17, 2016, from http://www.iztzg.hr/UserFiles/Pdf/Tomas/2006_TOMAS_NP_I_PP_HR.pdf.
Kopački rit [Kopački rit Nature Park] (2016). Retrieved July 05, 2016, from http://pp-kopacki-rit.hr/
about.html.
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130 Kotler, P. (2001). Upravljanje marketingom: analiza, planiranje, primjena i kontrola [Marketing
management: Analysis, planning, implementation and control]. Zagreb: Mate d.o.o.
Kotler, P., Wong, V., Saunders, J., Armstrong, G. (2006). Osnove marketinga [Principles of marketing].
Zagreb: Mate d.o.o.
Kotler, P., Keller, K. L., Martinović, M. (2014). Upravljanje marketingom [Marketing management] 14.
izdanje. Zagreb: Mate d.o.o.
Meler, M. (2006). Marketing u kulturi [Marketing in culture]. Osijek: Ekonomski fakultet.
Ozretić-Došen, Đ. (2010). Osnove marketinga usluga [Principles of services marketing]. Zagreb:
Mikrorad.
Ramsar List of Wetlands of International Importance [Fact sheet]: Information Sheet on Ramsar Wetlands.
Retrieved October 26, 2016, from https://rsis.ramsar.org/ris-search/?f[0]=regionCountry_en_
ss%3AEurope&f[1]=regionCountry_en_ss%3ACroatia&pagetab=1
Rocco, F. (2000). Marketinško upravljanje [Marketing management]. Zagreb: Školska knjiga.
Strategy and Action Plan for the Protection of Biological and Landscape Diversity of the Republic of
Croatia, (OG 143/08)
The Nature Protection Act 2013 (Official Gazette 80/13) (Croatia).
Weihrich, H., Koontz, H. (1993). Menadžment [Management] X izdanje. Zagreb: Mate d.o.o.
Received: November 16, 2016 Accepted: December 12, 2016
Vesna Vučemilović M.Sc., Senior Lecturer, College for Management in Tourism and Informatics in
Virovitica, Matije Gupca 78, 33000 Virovitica,
Republic of Croatia.
E-mail: vesna.vucemilovic@yahoo.com
Biserka Vištica Professor, Senior Advisor, Ministry of the Sea, Transport and Infrastructure, Prisav-
lje 14, 10000 Zagreb, Republic of Croatia.
E-mail: biserka.vistica@gmail.com
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GAMTAMOKSLINIS UGDYMAS / NATURAL
SCIENCE EDUCATION
ISSN 1648-939X
NATURAL SCIENCE EDUCATION – is a periodical, peer reviewed, scientific-methodical

journal, issued by the SMC „Scientia Educologica“. It is an international journal, wherein the scien-
tific and methodical articles published in Lithuanian, English and Russian languages. This journal
is intendent for the teachers of general education schools, the lecturers of higher educational institu-
tions and all, who are interested in the problems of natural science education.
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ISSN 2029-6932
PROBLEMS
OF MANAGEMENT
IN THE 21st CENTURY
Vol. 11, No. 2, 2016
2ND INTERNATIONAL BALTIC SYMPOSIUM ON SCIENCE 137

AND TECHNOLOGY EDUCATION (BALTICSTE2017)
„SCIENCE AND TECHNOLOGY EDUCATION:

ENGAGING THE NEW GENERATION“ 
12-15 June 2017, Siauliai, Lithuania
Dear Colleagues,
On behalf of the organizing committee, we are delighted to welcome you to Šiauliai,
Lithuania, for the II International Baltic Symposium on Science and Technology Education,
BalticSTE 2017.
The Symposium will be held in Šiauliai (Lithuania) in June 2017 during days 12-15.
We cordially encourage you to attend and contribute to one of the major events of
2017 on the field of science and technology education. We are confident that you will ap-
preciate the scientific program and the city of Šiauliai. We look forward to seeing you in
2017 in Lithuania.
Organizer of the Symposium
Siauliai University, Faculty of Education, Natural Science Education Research Cen-
tre, Lithuania, http://www.gutc.su.lt/
Scientific Methodical Centre „Scientia Educologica“, Lithuania
http://www.gu.puslapiai.lt/indeks_en.htm
Ways of Participation Paper Submission:
• Paper Presentation Original unpublished short scientific papers (2 - 3
• Oral Presentation pages) written in English should be submitted in
• Interactive Poster Presentation electronic form as WORD files and send to the sym-
• Workshop posium secretariat via e-mail: balticste@gmail.com
• Listener Information on paper submission, format and the
review processes is available on symposium web-
Topics and Areas site.
The BalticSTE 2017 will cover all Symposium proceedings will be published before
aspects of science and technology the symposium.
education. Authors of selected outstanding papers will be in-
vited to submit extended versions of their papers for
consideration of publication in the reputed Journals
(JBSE, PEC, GU/NSE, SPVK/EPMQ).
Important Dates
Abstract/Paper/Poster Submission 20 April 2017

Abstract/Paper/Poster Submission 30 April 2017
Registration and payment 20 May 2017
Camera-ready paper submission 20 May 2017
Announcement of the Final Symposium
01 June 2017
Program
12 – 15 June 2017
Symposium Dates
(11/12 - arrival; 16/17 - departure)
Symposium Website: http://www.scientiasocialis.lt/balticste

E-mail: balticste@gmail.com
Phone: +370 41 595736; Fax: +370 41 595710
© NSERC, Siauliai University, 2015
ISSN 2029-6932
Problems of Management in the 21st Century, ISSN 2029-6932
Vol. 11, No. 2, 2016
Compiler Vincentas Lamanauskas (E-mail: v.lamanauskas@ef.su.lt)

Designer Jurgina Jankauskienė
Paste-up artist Loreta Šimutytė-Balčiūnienė
Contact person Laima Railienė (E-mail: laimarailiene@yahoo.com)
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20 December 2016. Publishing in Quires 4,562. Edition 200.
Publisher SMC „Scientia Educologica“,

Donelaicio Street 29, Siauliai, Lithuania
E-mail: gu@gu.puslapiai.lt
Phone: +370 687 95668
http://www.jbse.webinfo.lt/centras.htm
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Printing Šiauliai printing house

9A P. Lukšio Street
LT-76207 Šiauliai, Lithuania
Phone: +370 41 500 333.
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E-mail: info@dailu.lt

Problems of Management in The 21st Century, Vol. 11, No. 2, 2016

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Vol. 11, No.

Scientific Methodical Center „Scientia Educologica“, Lithuania,

Index Copernicus Zeitschriftendatenbank (ZDB)

Prof., Dr. Constantin Bratianu, Academy of Economic Studies, Romania

Address: Scientific Methodical Center “Scientia Educologica”

ISSN 2029-6932 © SMC „Scientia Educologica“, Lithuania, 2016

SHAPING OF ORGANIZATIONAL RESILIENCE IN AN UNSTABLE WORLD:

STRATEGIC MANAGEMENT PRACTICES AS A KEY DETERMINANT OF

HOW OUTSOURCING CAN CONTRIBUTE TO THE EFFICIENCY AND

THE SPECIFIC AND GENERAL NATURE OF LOGISTICS TASKS

NONPROFIT MARKETING IN KOPAČKI RIT NATURE PARK AS TOURIST DESTINATION

INSTRUCTIONS FOR AUTHORS ..............................................................................131

PROBLEMS OF PSYCHOLOGY IN THE 21st CENTURY ............................................... 133

QUALITY ISSUES AND INSIGHTS IN THE 21st CENTURY ......................................... 134

JOURNAL OF BALTIC SCIENCE EDUCATION ............................................................ 135

GAMTAMOKSLINIS UGDYMAS / NATURAL SCIENCE EDUCATION................................136

2nd INTERNATIONAL BALTIC SYMPOSIUM ON SCIENCE AND TECHNOLOGY

Received: November 05, 2016 Accepted: December 12, 2016

Iwona Gorzeń-Mitka PhD., Assistant Professor, Faculty of Management, Czestochowa University

STRATEGIC MANAGEMENT PRACTICES 71

AS A KEY DETERMINANT OF SUPERIOR

NGOs Financial and Non-Financial Performance: What to Measure

Thinking of NGOs’ performance as a variable to measure is not an easy task, since it

Table 1. Summary of performance measures in NGOs.

Performance Dimension Definition/ Focus

74 Empirical Review and Research Hypotheses

Strategic management can be interpreted as a process that produces managerial decisions

Population, Sample and Target Respondents

78 Table 2. Questionnaire items used in four scales measuring strategic management

Item Correlated Item-

Table 3. Questionnaire items used in one scale (three sub-scales) measuring 79

4 The organization minimizes its fundraising costs as much as possible. 0.858**

17 The organization commits to quality systems and standards in programs delivery.

19 The organization’s stakeholders are satisfied due to the organization’s programs.

Descriptive Statistics: Respondents Profile and Organization Characteristics 81

Table 5. Means, standard deviations and correlations. 83

** significant at the 0.01 level, * significant at the 0.05 level.

Since positive relationships were found between strategic management practices,

Table 6. Multiple regression for variables predicting financial and non-financial

Model 1. Dependent variable: Financial Model 2. Dependent variable: Non-Finan-

Implications for Managerial Practices

1. An analysis of the present situation of the NGO in terms of services, beneficiaries

86 as major drivers of the strategy implementation process.

Conclusions, Limitations and Future Research

This research provides an important contribution to the empirical body of knowledge

Received: August 24, 2016 Accepted: November 28, 2016

Mohammed Aboramadan PhD Candidate, Department of Economics and Management, University of

HOW OUTSOURCING CAN CONTRIBUTE 93

TO THE EFFICIENCY AND EFFECTIVENESS

The Max Weber Model

The New Public Management

The Governance Model and the New Public Service

Typologies and Outsourcing Models

98 Table 1. Outsourcing definitions.

Shared Services Outsourcing

Outsourcing as Efficiency Factor in Public Sector

The Partial Outsourcing in Public Administration

Considering the application of new doctrines in administrative reforms, it is not surprising

102 The Total Outsourcing in Public Administration

In a completely different perspective of the former, we have the option to outsourcing

Production Costs and the Outsourcing of Government

Table 3. Production costs as a percentage of GDP (2001 and 2011).

Total Compen- Costs of Con- Total Compen- Costs of Con-

INSTRUCTIONS FOR AUTHORS ..............................................................................131

PROBLEMS OF PSYCHOLOGY IN THE 21st CENTURY ............................................... 133

QUALITY ISSUES AND INSIGHTS IN THE 21st CENTURY ......................................... 134

JOURNAL OF BALTIC SCIENCE EDUCATION ............................................................ 135

GAMTAMOKSLINIS UGDYMAS / NATURAL SCIENCE EDUCATION................................136