Performance Measurement of Social Welfare Organizations in Pakistan

Abstract

The paper attempts to measure the output of social welfare organizations in Pakistan and propose improving suggestions. For this purpose, a theoretical model with nine components, namely mission, strategy, processes, people, financial health, organizational infrastructure, people satisfaction, donor satisfaction and client satisfaction, is used and applied to social welfare organizations in Pakistan. The data was collected from a sample size of 70 social welfare organizations working in Pakistan through close ended questionnaire and was analyzed using Confirmatory Factor Analysis and Structured Equation Modeling. The results demonstrate that the relationship of mission with some major contributors of organizational growth is largely ignored in the non-profit sector of Pakistan. However, the correlations of other performance indicators were positive, such as, organizational infrastructure and processes; process and stakeholders’ satisfaction, etc. Hence, this study infers and signifies the eminence of creating performance measurement systems for capacity building of social welfare organizations in Pakistan and, subsequently, channelization of public and private funding.

Keywords: performance measurement, non-profit organizations, social welfare, Pakistan, financial sustainability, NPOs’ productivity, growth hindrance