Performance in the third sector: A micro-level framework and some lessons from israel

Organizational performance is perhaps the most studied topic in management literature. For many years much attention has been given to understanding performance of the first (private/business) and second (public/administrative) sectors. Only recently have studies shown interest in the performance of the rapidly evolving third sector. However, most studies on the performance of Voluntary and Non-Profit Organizations (VNPOs) have so far adopted a distinctly macro-oriented perspective, overlooking micro-level viewpoints which may have special merit for a broader understanding of effectiveness and efficiency in these bodies. This paper provides an insight into this less studied dimension of performance analysis and tries to illuminate its advantages for VNPOs. The model applies existing knowledge from other fields such as organizational behavior and labor studies, and puts forward a theory that may prove useful for third-sector organizations struggling to improve results in a turbulent public arena. Furthermore, we provide some preliminary findings as collected in Na'amat (an Israeli VNPO of working women) that support the usefulness of this model.