Basing on the research findings, non-profit organizations are coming up with a unique way of managing their financial base to remain significant in the offering of their services (Shirinashihama, 2013). The main strategy is by cutting down their spending habits hence operating on tight finances through a strategy called "materialization." Just like any other plan, "managerialization" in non-profit making organizations comes with its merits and demerits. The major limitation associated with this approach is that too much concentration on financial performance by these organizations will reduce the willingness and efforts to offer profitless services.
On the contrary, this "managerialization" comes with a lot of benefits to any organization that will install and implement it in their operations. To start with, this plan can lead to rationalization through boosting of their service provision and program control. This will entail the employment of fewer resources and in return accomplish more objectives (Shirinashihama, 2013). This will help contribute to the organization's financial health as little is spent but still achieves the set targets. The study also highlights that it clear experienced managers poses important knowledge and skills on how to successfully implement these business management tools in limiting budgetary allocation yet still meeting the intended objectives.
From the research, it is evident the top managers' actions are the determinants of the organization's success as they have the power to control other employees together with lower level managers regarding budget spending. Even though these organizations provide profitless services, they need not rely too much on surplus. Surplus may be inadequate to cater for all financial needs of the firm hence need to make some profits where necessary without compromising their major mission. Well, wishers need to support these organizations by pouring more surpluses to them (Shirinashihama, 2013).
It is notable that in Japan there is a high competition of providing elderly services between "Nonprofit Elderly Care" and its for-profit rivals. It is worth recommendations that the federal government of Japan has chipped in to help the nonprofit firms by supporting them financially and offering insurance for the elderly making it easy for the nonprofit to take of them. Those with insurance will save the organization's a lot as it will need to pay only 10% of hospital bills in case of illness to the elderly (Shirinashihama, 2013). The government has offered support to the Social Welfare Corporation (the largest nonprofit homes care to major in nursing facilities for the elders). For-profit firms at times decline receiving elders with unique cases such as critical illness or difficulties as they cost them a fortune hence lowering their profit making process. non- profit organization are therefore forced to take such as their mission is to offer service and help without expectations of profits.
Even though profit-oriented firms also lower their service fees, it remains relatively height at 74% willingness to demand payment. However, nonprofit homes will end up demanding nothing in return. On the variables affecting the effectiveness of the service delivery in both organizations, some of these factors include budgetary control and limitations hat least every organization needs capital to start on from. The effort and willingness to offer reliable and satisfactory services to the elderly, and an experienced and stable managerial team that can put the needs of needy people first among others (Shirinashihama, 2013). These factors will greatly help an organization improve its profitless missions even with a tight budget as they have the skill to use less for more production.
Yoshitaka Shirinashihama, (2013). Nonprofit and Voluntary Sector Quarterly. Hitotsubashi University. Retrieved from 11544359 | Shirinashiahma 2018 NVSQ (1).pdf
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