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Role of Leaders in Commercial and Non-Profit Sector

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Non-profit organizations can be identified as considerably different from commercial organizations in terms of their functioning prospects and structural demands. It is fundamentally due to the fact that unlike commercial organizations, non-profit organizations are principally focused on conducting philanthropic activities considering social interests with prime significance. The role of leaders in these two sectors also varies due to these underlying differences between the value-based and objective-oriented functionalities of commercial and non-profit sectors respectively. A leader in a non-profit organization is said to be successful when he/she ensures the organization to grow by expanding the resource base, discovering new communities to serve, satisfying the interest groups and identifying new approaches to innovative and efficient service delivery among others.

Therefore, both good leadership and good management roles are required to be played by leaders to succeed in both the sectors as stated by Bennis & Nanus (1997). Besides, empowering and inspiring the volunteers, resolving forecasted as well as unforeseen obstacles and making necessary changes to allow the beneficiaries to learn and grow are enlisted as the primary roles of leaders in a non-profit organization.

Performing these roles often becomes a challenging issue for non-profit leaders given the limitation of financial resources. In contrast, and much vividly, the roles and responsibilities of leaders in profit sector are to develop policies with a motive to create maximum revenue in the benefit of the organization, even though the pressure to consider societal welfare persists. Adding to that, controlling and supporting the team in the commercial organizations is equally an important task for-profit sector leaders, which involves both monetary and non-monetary aspects. But, leaders in the non-profit sector need to focus on non-monetary aspects with greater significance, where their roles are no more restricted to managerial operations but move beyond motivating, steering or channelizing the set values amid the team.

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