Government Regulations impact to Organization
Introduction
It is noted that different organizations operates in accordance with the policies and provisions provided by the government. Such institutions must adhere to the regulations set by the government of the host country. In the United States, the government has been able to formulate different corporate policy and employment policy. These policies have direct impact in the management of different organisations. Hence, the focus of this paper is to analyse a non-profit organisation which is operating in the United States.
Herein the discussion will include details about the organisation and the services that it offers. Specifically, this paper will also describe the impact of the recent government policy in terms of delivering services among target market. This will also assess how new employment regulations affects the management of the organisation with its human resources. In this regard, the organisation that will be given emphasis is Syracuse Research Corporation.
Overview of the Organisation
Syracuse Research Corporation (SRC) is known to be an independent, not for profit research and development institutions which is chartered by the State of New York. The corporation was established in 1957 by the Syracuse University. However, in the early 1970s the management of the SRC decided to spin off from the University which make them become independent. For almost 50 years, the corporation has been able to support wide range of federal government institutions and agencies. In addition, the corporation has also created a national reputation in a broad level of technology areas. The employment of SRC has rises from 190 people to over 750 employees. It has offices in 10 different locations, along with numerous market support sites all over the United States.
The mission of the corporation is to keep the United States safe and strong by protecting its people, their environment and way of life. The company believed that in order to achieve such mission they will focus on the needs of their target market through the innovative uses of science, technology and information so as to solve problems of national significance.
The corporation is also known for providing quality products and services. Such superior quality has been attained using two-business strategies. First, the corporation has always maintained a policy of recruiting the best human resources and providing them with continuous development using more advanced training, mentoring and challenging task assignments. Secondly, Syracuse Research Corporation has been able to make significant investments in their operations which are used to develop both hardware and software products.
The organizational structure of Syracuse Research Corporation is composed of the Board of Trustees who is responsible for monitoring and managing the activities of the corporation. The Board of Trustees consists of senior executives and industry leaders. It is known that each members of the organization are distinguished members in diverse background which include insurance, government, banking, manufacturing, law and advances telecommunications services and systems. The highest position for the board is the Chairman of the Board. The role of this is to ensure that Syracuse Research Corporation adheres to its charter. They are also responsible for financial stability and for planning for the corporation’s future.
The main focus of the company is to provide solutions to programs in accordance with national significance through the innovative application and integration of science, technology and information. SRC was built to provide solutions for next generation challenges with their customers in terms of defense, environment and intelligence communities. SRC is responsible for finding solutions to problems encountered by different companies through the use of state of the arts information systems.
The innovative IS of SRC is used to facilitate the best possible deliverables for their target market. With these systems, the employees of the company can access the internet or intranet, interact with other groups or corporate resources, test software and communicate through electronic mail. Through the expertise of the corporation in different hardware platforms and operating systems enables the company to have a unique ability to select the most appropriate platforms for a specific situation. The IS employees of the company are experiences in all areas of client-server computing which includes:
v Software and application development
v Database design, implementation, and administration
v Client-server administration and support
v Network configuration and management
Approach for Funding
Technically, the company efforts span from the basic theoretical and scientific studies, to sophisticated design and manufacturing abilities which result in fielded prototype hardware and software systems. Being a not-for profit organization, Syracuse Research Corporation believed that they must always do their best to satisfy their target market to ensure financial growth. Being an independent and development organization, SRC aims to serve an innovative technology development and transfer bridge among government, academia and industry sectors. The company remains committed to this organizational goal and constantly looks forward to the challenges and opportunities that the future will bring.
The company takes prided in the development and use of technology to significant issues of national interest. In order to sustain its financial needs, the corporation is currently being sponsored by more than 100 government and commercial industries for research and development investigations. Hence, the funds usually came from the clients who want to avail the products and services of the corporation.
Government Regulations impact on Organisation
Most countries have policies which regulate both the establishment and management system of non-profit organizations. These regulations require compliance with corporate governance regimes. Consequently, larger organizations are asked to publish their financial reports which included information about their income and expenditure for the public. Part of the government regulation, the non-profit organization must have board members, or trustees who owe the firm a fiduciary duty of both loyalty and trust.
In the United States, these kinds of organizations are usually formed by incorporating in the state in which they expect to do business. Like for example, SRC is incorporated with the government of New York. The act of incorporating creates a legal entity which enables the firm to be treated as a corporation under law and to have the right to enter business transactions, form contracts and own assets like any other profit organizations or individuals do.
The government policies sees to it that they provide appropriate regulations for non-profit organizations which is different from the regulations they provide for profit organizations. A primary difference between a non-profit and profit organization is that the former does not issue stock or pay dividends and may not enrich its directors. But, like any other corporations the non-profit organization may still hire employees and can compensated their members within reasonable bounds (Johnson & Scholes 1997). The government policies affect the SRC in a way that the company always tries to adhere to the regulations set by the federal government to avoid illegal actions and further complexities. Through this, the government is assured that the company will always provide quality products and services among its target market may it be government or commercial institutions.
Since SRC is a not for profit organization, the company is considered as exempted from income tax and other taxes. In this manner, the sponsors of the organisation may claim back any income tax paid on donations, or deduct from their own tax liability the amount of the funds given. Furthermore, SRC is also exempted from other taxes such as sales and property tax. This exemption is really helpful especially for a company like SRC which do not have enough sources for funding their research and development project.
Their financial resources may only come from sponsors who will provide their financial needs during the project. Furthermore, SRC is also affected by this government policy in terms of assuring quality services among their target market. With the government regulations, there is no room for mistakes. One wrong move, the company may face legal problems which may affect their organizational performance.
Employee Policy
The federal government of the United States has been able to issue different employee policy to meet the needs of employees all over the states. One of the recently provisioned employee policies is the Workforce Investment Act of 1998 (WIA). The Workforce Investment Act of 1998 (WIA) represents a potentially important reshaping of the federal government's approach to worker training as part of publicly funded workforce development services.
WIA replaced and repealed the Job Training Partnership Act (JTPA) and amended the Wagner-Peyser Act in response to a variety of concerns about how the existing public workforce development system was designed and operated. Among these concerns, it was noted that a multitude of employment and training programs—by some counts over 150 separate programs, including, among others, those operating under JTPA, Vocational Rehabilitation, Vocational Education, the Trade Adjustment Assistance Act, and the Wagner-Peyser Act—often operated without effective coordination or collaboration. The resulting system suffered from redundancies and inefficiencies and confronted customers with a confusing maze of programs through which they found it difficult to navigate (U.S. General Accounting Office, 2000).
Second, JTPA services were limited to those who met narrowly prescribed eligibility criteria, thereby curtailing access to potentially valuable workforce services to the broader population in need of skills upgrading or retraining. In JTPA's adult program, participation was limited to those who were economically disadvantaged and (after the JTPA Amendments of 1992) at least 65 percent needed to be identified as hard to serve, by virtue of having at least one barrier to employment from a list of seven that were specified in the legislation. These stipulations arguably served to target services on those who needed them the most. However, as the U.S. workforce development system moved toward a model of one-stop service delivery over the several years before JTPA's repeal, these eligibility restrictions created awkward problems regarding funding and staffing support and hampered the ability of JTPA-supported programs to operate effectively with its partners (Kogan et al. 1997). Moreover, they hampered the ability of the public workforce investment system to be agile in upgrading workers' skills to meet evolving employers' needs in a rapidly changing economy.
WIA was enacted to address the concerns of having effective and efficient training program for all employees in all organizations in the United States Building on reforms that some states and the federal government had already begun (D'Amico et al. 2001), it does so by purportedly improving system integration and service coordination, providing universal access while rationing services to promote efficiency, promoting customer choice and system accountability, and bringing business to the fore as a key customer of the workforce system.
This new policy affects the human resource management (O’Shea, & King 2001) of Syracuse Research Corporation positively. In this policy, SRC has been able to provide training activities for their employees. Training is an attempt to improve employee performance on a currently held job or one related to it. This usually will lead to changes in specific knowledge, skills, attitudes, or behaviours. These changes can result to long-term productivity which in return helps SRC in gaining competitive employees. However, it often the case that companies only consider training for new hires. The policy has been formulated to give opportunities for both new and old employees for continuous knowledge and skills enhancement.
According to Allis (2003), the quality of the employees is determined by their development through training and education. In turn, quality employees are factors in defining the long-term stability and profitability of the company. It is a fact that the rigorous hiring process of many companies a ways of ensuring that they will only be hiring the best of the best. Knowing these principles, the human resource management of SRC has been able to provide adequate trainings programs needed for assuring quality products and services from their employees.
Training of employees’ pertains to giving the employees the basic knowledge necessary for them to be able to perform their tasks. In addition, employee training will also enhance the inherent capacity of the employees. Development needs to be dealt with continuously enhancing employees’ abilities through training to match the changes in the business industry. With employee training, the performance of every employee in the company will naturally be improved to its maximum level. In addition, various skills may be absorbed by the employee being trained, which in turn makes them more independent, resourceful and flexible. There are various reasons why employee training must take place. These reasons are closely linked to the company’s sustainability and profitability. According to Graham and Salas (2002), training is being used to facilitate education. In addition, training is also seen as a tool to retain employees, improve corporate culture and design incentive programs for employees (Graham & Salas, 2002).
Trainings are also being conducted so that the company will be able to create a pool of employees that can readily and adequately replace those who have left the company. Due to fats technological developments, employees must be continuously and/or regularly trained to be able to adapt to the developments that will affect the company. Training also motivates a team by allowing them to become more efficient. If a company is able to train and develop highly-competent employees then they will be able to fill positions needed for expansion (Allis, 2003). Through this provision, Syracuse Research Corporation has been able to realise the value of training programs for their employees.
Since training can develop efficient employees and create rooms for expansion, this means that training can also result to lower employee turnover rates for the organisation. The results of training and development start a chain reaction. When the company is able to produce effective employees then their profitability will increase. When this happens, they will also be able to compensate their employees based on their contribution to the company’s growth. In turn, it will create a feeling of satisfaction that will motivate them to improve further their efficiency and then the cycle will once again begin (Parker, 2005). Hence, the human resource management of SRC sees to it that they follow all the policies provided by the government to ensure quality business performance.
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