Final answer:
Identifying effective nonprofit leaders based on perceptions of effectiveness is subjective and problematic, as it does not account for more objective performance indicators like revenue and staff turnover.
Step-by-step explanation:
A common and problematic method that researchers have used for identifying effective nonprofit leaders is perceptions of effectiveness. This method is subjective and can be heavily influenced by personal biases or cultural expectations. Instead of gauging actual performance or outcomes, perceptions can be based on how well leaders communicate, their charisma, or simply how they are seen within the organization or community. This can leave out more tangible measures such as revenues generated, staff turnover, or organizational growth and impact, which can serve as more objective indicators of a leader's effectiveness. When identifying effective nonprofit leaders, a major issue arises from focusing mainly on perceptions. Decisions based on these can overlook the true, measurable performance indicators. It's also essential to recognize that different personalities may lead effectively in different contexts; for example, an expressive leader who might excel in a community-based nonprofit may not perform as well in a corporate environment.