We examine how formal performance measurement and management controls can have beneficial and damaging effects on social capital in these two NPOs. Social capital can take two forms: bonding and bridging. Bonding involves developing close interpersonal relationships based on shared aims, and bridging to building networks between the NPOs and other parties.
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Traditionally, the management of NPOs has relied on informal processes based on the shared norms and values of delivering humanitarian services, rather than on coercive or formalised procedures.