Pine Street Inn Case Study Solution
Problem Statement:
It can be argued that Pine Street Inc. is facing many problems in fulfilling the objective and goals of founders, employees and donors of the organization, but the main problem lies with the ability of the charitable organization to secure donations. The amount of donations are decreasing year by year from both the state and from the individual corporate channel. Apart from the financial problems, the upper and lower management is also facing significant distress and frustration which is ultimately causing great problem for Pine Street. There is only one protagonist in the case of Pine Street who is Lyndia Downie.
There can be many reasons which are resulting in the continuously adverse operating conditions for the Pine Street, the main reasons which are affecting the level of performance of Pine Street are poor levels of donations, poor morale and motivation of the management, frustration and dissatisfaction among the management and poor operational policies of the senior management.
Poor strategies of the &management:
Apart from the lower level of donations, the performance of Pine Street is also affected due to poor strategies and policies of the management. The management has done little research and there isvery little or no screening of the potential candidate for the shelter. It is highly likely that people that could afford a house also live there just to save money which is costing more to the Pine Street. Furthermore, it would be more beneficial for Pine Street as it can assist the organization to fulfill and achieve their goals by providing shelter services to the ones who deserves. Moreover, the management can also reduce the number of volunteers by encouraging the guests to carry out the administrative tasks of the organization.
As the management of Pine Street doesn’t refuse anyone coming for shelter, this policy often results in over occupancy and some guests have to spend their night on floors of the building which ultimately reduces the efficiency and effectiveness of the management. Furthermore, this increased demand also results in discomfort for the seriously ill medically disabled persons causing further reputational issues for the organization.
There are severe conflicts among the senior management and directors of the organization which is deteriorating the reputation and goodwill of Pine Street. When deciding the strategies regarding the nursing department of Pine Street there was a significant conflict between Downie and nursing director. The nursing director also resigned from his post as a protest against the strategies implemented by Downie, this issue was covered by local and national media as well which is also one of the main reason for the poor reputation and donation of the organization.
Lower spending on fundraising:
The management of Pine Street is spending just four percent of the total expenditure on fundraising and volunteer coordination which can be considered as quite low, even though spending large amounts on fund raising can create a problem, but it can be argued that it is very necessary to spend adequate money on fundraising and volunteer coordination.
Quantitative analysis:
The mean (average) length of stay in the shelter houses of Pine Street by an average guest is 26.22 days. It can be argued that this is quite high and will result in substantial outflow of economic benefit of Pine Street.
Poor financial performance and donations level:
The levels of donations are decreasing drastically in the recent years which is the main reason for the poor operational performance of Pine Street Inc. In the year 2004, the level of donations had been reduced by almost $3 million which can be considered very significant especially in the most difficult economic conditions. Donations from the state has been decreased because of many state-owned shelter schemes. Furthermore, the trend to spend onshelter causes has been decreasing in the recent years as the donor wants the charitable organizations to make people independent rather than dependent on the charitable organization. In addition to this, the ex-donors of Pine Street are donating to the charitable organization which provide jobs to disabled people according to their abilities. Lastly, the number of stray people is also decreasing in Boston which is also a major reason for reduced donations.....................
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