ABSTRACT
Much like their counterparts in the for-profit and public sectors, nonprofit organizations (NPOs) produce a variety of goods and services to meet the needs of diverse populations. In this and many other ways, human resource management (HRM) processes and techniques are similar for most organizations, including NPOs. However, some unique qualities of HRM in the nonprofit sector exist. In particular, NPOs depend upon both paid employees and volunteers as part of their labor force. The mix of paid and volunteer labor used by NPOs makes the management of human resources in the nonprofit sector unique. This reliance upon volunteers coupled with the legal restrictions placed upon NPOs to maintain their not-for-profit status, creates an environment that offers unique challenges for human resource managers. The nonprofit sector needs to remain aware of these special circumstances and plan accordingly. The same motivational techniques utilized in other sectors may not translate to the volunteer or uniquely motivated labor force found in the nonprofit sector. In this entry, we will examine the state of HRM research in the nonprofit sector and the unique qualities and challenges for nonprofit managers and employees.
