S Rengasamy, Madurai Institute of Social Sciences 1

Introduction to NGO Management

VOLUNTARY ORGANIZATIONS/
NON GOVERMENTAL ORGANIZATIONS/
NON PROFIT ORGANIZATIONS
“Voluntarism” derived from Latin word ‘voluntas’ means ‘will’ (i.e. impulse, passion, desires,
appetite) ‘will’ is prior to or superior to the ‘intellect’ or ‘reason’. It is the will that produced
miracles and there by some of the social evils of which the unfortunate sections of the society are
the victims can be eradicated. All the
voluntary organizations are the The term, "non-governmental organization" or NGO, came into
expressions of ‘human will’. currency in 1945 because of the need for the UN to differentiate in
its Charter between participation rights for intergovernmental
specialized agencies and those for international private
The term volunteer is normally used organizations. At the UN, virtually all types of private bodies can
to denote someone who offers unpaid be recognized as NGOs. They only have to be independent from
service to a good cause. government control, not seeking to challenge governments either
as a political party or by a narrow focus on human rights, non-
profit-making and non-criminal.
Voluntary agency is a group
The structures of NGOs vary considerably. They can be global
organized for the pursuit of one hierarchies, with either a relatively strong central authority or a
interest or of several interests in more loose federal arrangement. Alternatively, they may be based
common usually it is contrasted with in a single country and operate transnationally. With the
involuntary groups like kin groups, improvement in communications, more locally-based groups,
referred to as grass-roots organizations or community based
castes, social classes, communities.
organizations, have become active at the national or even the
global level. Increasingly this occurs through the formation of
Voluntary agency is a group of coalitions. There are international umbrella NGOs, providing an
persons, organized on the basis of institutional structure for different NGOs that do not share a
voluntary membership, without state common identity. There are also looser issue-based networks and
ad hoc caucuses, lobbying at UN conferences. In environmental
control, for the furtherance of some
politics, this occurs in the unique form of the nine "Major
common interest of its members. Groups", listed in Agenda 21.
At times NGOs are contrasted with social movements. Much as
A voluntary organization, properly proponents of social movements may wish to see movements as
speaking is an organization which, being more progressive and more dynamic than NGOs, this is a
false dichotomy. NGOs are components of social movements.
whether its workers are paid or
Similarly, civil society is the broader concept to cover all social
unpaid, is initiated and governed by activity by individuals, groups and movements. It remains a matter
its own members without external of contention whether civil society also covers all economic
control- a private enterprise for social activity. Usually, society is seen as being composed of three
progress – William Beveridge. sectors: government, the private sector and civil society, excluding
businesses.
NGOs are so diverse and so controversial that it is not possible to
NGO – that are neither govt. nor for support, or be opposed to, all NGOs. They may claim to be the
profit. Economic orientation is non- voice of the people and to have greater legitimacy than
profit. NGO vs. for profit governments, but this can only be a plausible claim under
Catering the needs of social authoritarian governments. However, their role as participants in
democratic debate does not depend upon any claim to
diversity–e.g. English medium
representative legitimacy.
schools
Solution to some problems needs experimentation and flexibility- NGOs are open & flexible
whereas bureaucrats are inflexible & conservatives.
 S Rengasamy, Madurai Institute of Social Sciences 2
Introduction to NGO Management

Theories of Voluntarism
There are certain economic and organizational theories that need to be understood in order to know
why we need voluntary organizations at all.
1.Public Goods Theory 2.Consumer Control Theory 3.Subsidy Theory 4. Market Failure Theory
5.Govt (Contract) Failure Theory 6. Etzoni’s organizational Typologies
Public Goods Theory.

Public Goods: Goods or services which, if they are provided at all, are open to use by all members
of society. Examples include aided primary schools, law and order, govt. hospitals, public hospitals,
and parks. As nobody can be excluded from using them, public goods cannot be provided for private
profit.
Terminology, and types of public goods
Excludable Non-excludable

Rivalness Private goods(food, clothing, Common goods / (Common-pool

toys, furniture, cars resources) fish, water, air, CPR

Non- rivalness Club goods cable television Public goods national defense, free-to-air TV

Non-rivalness and non-excludability may cause problems for the production of such goods. These
goods may lead to instances of market failure, where uncoordinated markets driven by parties
working in their own self interest are unable to provide these goods in desired quantities. These
issues are known as public goods problems.

Public goods Theory

Public goods – enjoyed by everyone without payment or payment. So consumer won’t willing
to pay from which others benefit equally at no cost – so markets produce public goods. But
govt. either has to produce it directly or encourage others to produce it- but the govt. provides only
for the median voter.
But some may want to get more public good than the govt. is willing to provide. To obtain
additional quantity – they may start public services. Thus, the action of the non-profit organization
is explained as a private response to market failure.

Consumer Control Theory– [to avoid middle man – e.g. co-operative societies]

Subsidy Theory
Meaning of Subsidy
A benefit given by the government to groups or individuals usually in the form of a cash payment or tax
reduction. The subsidy is usually given to remove some type of burden and is often considered to be in
the interest of the public.
Financial assistance, either through direct payments or through indirect means such as price cuts and
favorable contracts, to a person or group in order to promote a public objective. Subsidies to
transportation, housing, agriculture, education, mining, and other industries have been instituted on the
grounds that their preservation or expansion is in the public interest. Subsidies to the arts, sciences,
humanities, and religion also exist in many nations where the private economy is unable to support
them. Examples of direct subsidies include payments in cash or in kind, while more-indirect subsidies
include governmental provision of goods or services at prices below the normal market price,
governmental purchase of goods or services at prices above the market price, and tax concessions.
Although subsidies exist to promote the public welfare, they result in either higher taxes or higher prices
for consumer goods
Types of subsidies
1. Direct subsidies 2.Indirect Subsidies 3.Labor subsidies 4.Tax Subsidy 5.Perverse subsidies
6. Production subsidies 7.Regulatory advantages 8.Infrastructure subsidies 9.Trade protection (Import)
10.Export subsidies (trade promotion) 11.Procurement subsidies 12.Consumption subsidies
 S Rengasamy, Madurai Institute of Social Sciences 3
Introduction to NGO Management

Market Failure Theory

In economics, a market failure is a situation where in the allocation of production or use of goods and
services by the free market is not efficient. Market failures can be viewed as scenarios where individuals'
pursuit of pure self-interest leads to results that can be improved upon from the societal point-of-view.
Market failure: A brief label for the view that the market does not provide a panacea for all economic
problems. There are various ways in which an unregulated market may fail to produce an ideal state of
affairs. The main sources of market failure are monopoly, externalities and income distribution. Profit
maximization under monopoly implies under-provision and over-charging for goods. If the production or
consumption of a good involves external economies, it is under-provided by an unregulated market.

Contract Failure Theory

Traditional nonprofit theories, including the Market/government failure theory, the Contract failure theory
the Voluntary failure theory, are basically sector-based functionalistic theories, each of which gives
justification to intervention of a particular sector with the recognition of the limitations of the other two
sectors.
From the perspective of function transfer, what is implicit in the Market/government failure theory is that
service function transfers from the market to government and then from government to nonprofits. The
Contract failure theory has almost the same dimension, although slightly different. Therefore, Hansmann
(1980) suggests that contract failure is in its nature a sort of “market failure.” In contrast, the Voluntary
failure theory supplies an alternative explanation regarding the sequence of function transfer; that is,
social services move from the market to nonprofits and then from nonprofits to government

Three Sectors

Commercial Government Voluntary Sector

1. Primary Concern Produce Goods & Preserve social Actualize social
Services order visions
2. Principal Market Bureaucratic Consensus
Mechanism hierarchy
3. Co-ordination Negotiated Authority & Shared values
Mechanism Coercion
4. Enforcement Contracts Supervision and Moral obligation
Mechanism Reciprocity orms rules
5. Prototype Corporation Army Church
6. Sanctions State Authority Financial Social pressure

Attributes of Voluntarism
Voluntary energy * Low in cost * inexhaustible quantity * Self generating

Support for voluntary action mainly comes from

a. Anti-statism -Stateless society. (E.g. Gandhi)
Violence of private ownership is less injurious than violence of state
b. Traditional social collectivism
Philanthropy Mutual Aid Mutual Aid It indicates pro-social behavior of all types
Compassion, concern for collective good, selfless service.

Three perceptions of (Concept of) voluntarism (Harold L. Wilensky)

1. Voluntarism as an ideology:
Method- Philanthropy & self-help to solve problems
 S Rengasamy, Madurai Institute of Social Sciences 4
Introduction to NGO Management

This ideology is hostile to govt. efforts similar to residual social welfare

2. Voluntarism as voluntary associations:
Complementary to govt.
Labor intensive -govt. knowledge about local needs- community support
3. Voluntarism as volunteerism: Mass mobilization and utilization of volunteers in a myriad of
direct service roles

Voluntarism is supported by human freedom.

Voluntarism include *voluntary private nonprofit & * voluntary private for profit
Voluntarism is supported by the idea of human freedom minimization of state rules
Voluntary organizations are contrasted with involuntary organizations e.g. caste, family, king
groups.
Definition: Voluntary organization is a group of persons organized on the basis of voluntary
membership without external (state) control.

Leadership and class

Two groups i.e. volunteers and salaried employees
Motivation to join in voluntary agencies
Visibility – business promotion – expressing oneself
Using potential skills and abilities – identification – leadership development voluntary agencies –
persons from higher socio– economic status labor unions, churches and local organization –
middle in income.

In popular thinking, as well as in literature, there is some confusion

between voluntarism, which means ‘of one’s free will’, and volunteerism,
meaning ‘working without remuneration’. Volunteerism, is a small
though important subset of voluntarism, which describes self willed
action
 S Rengasamy, Madurai Institute of Social Sciences 5
Introduction to NGO Management

In societal context, voluntary organizations constitute the “third sector”, the first sector being the
“government” and the second sector being the “market” or private business. The “third sector” is also
known as the “independent sector”, emphasizing the important role voluntary organizations play as an
independent force outside the realm of government and private business though, in financial terms, this
sector depends heavily on both the government and private business.

As far as law is concerned, the various trusts Acts, the Societies Registration Act and the Income Tax
Act only refer to “charitable purpose”. A number of voluntary organizations, though forced to register
under some of these rather archaic Acts, do not quite identify themselves as “charitable” or their work
as being “charitable purpose”. This is particularly so with regard to development-oriented voluntary
organizations.

It is a fact that the 138-years’-old Societies Registration Act, 1860 and the Public Trusts Act operating
in various states are not broad enough to cover organizations working in areas of developmental
support and activities. Perhaps, it would be better to have a new and separate legislation to cover
these organizations that do work for humanitarian causes, but do not fit the traditional mould of
“charitable purpose”. Development organizations, today, encompass a wide-ranging field of activities,
including designing and implementing innovative developmental programs in various sectors of
development. It also includes work in various areas of research, reporting, documentation and training
to support grassroots initiatives and also involves high technical and technological outputs.

What is the key factor that distinguishes an ordinary organization from a “voluntary organization”? It is
the significant input that volunteers give to the management and operation of the organization. It is
this factor that gives voluntary organizations the other commonly used name “nonprofit” or “not-for-
profit” organization (NPO). “Nonprofit” or “not-for-profit” emphasizes the fact that the organization
does not exist primarily to generates profits for its owners, managers or members.

“Non-profit” or “not-for-profit” does not mean the organization must run at a perpetual loss and never
even dream of income, surplus or profits. Far from it, The NPO may certainly derive profits from
extension of services or sale of products, etc. What it cannot do is distribute the profits among
trustees, members of the managing committee, etc. In other words, the NPO may be “income-
generating” or “profit-making”, but it cannot be “profit-distributing”.

Some voluntary organizations also prefix the term “private” and call themselves PVOs. Private, here,
indicates that the organization is institutionally separate from the government. Hence, government-
formed organizations like NDDB, CAPART, etc., do not fall under the PVO category.
Some voluntary organizations like to call themselves non-government organizations (NGOs). This is,
once again, to emphasize that the organization is not controlled by the government or any other
outside agency.

So voluntary organizations that call themselves non-government organizations (NGOs), private

voluntary organizations (PVOs), non-profit organizations (NPOs) and a relatively new breed that
chooses to designate itself as “civil service organization” (CSO). One wonders, what’s next?
In other words, religious institutions / congregations, political parties, co-operatives (at least those
controlled by government), mutual savings banks, mutual insurance companies and government agencies
fall outside the purview of our definition of NGO, PVO, NPO, CSO, etc.
Private, i.e. institutionally separate from the government;
Self-governing, i.e., not controlled by the government or any other outside entity;
Not-for-profit, - i.e., non-profit-distributing;
Voluntary, i.e. involving some meaningful degree of voluntary participation, either in the actual conduct of
the organization’s activities or in the management of its affairs;
Non-religious, i.e. not primarily involved in the promotion of religious worship or religious education – this
automatically excludes temples, churches, synagogues, mosques, religious congregations, where religious
worship takes place but includes all not-for-profit service organizations affiliated to religious institutions,
e.g. schools run by the Arya Samaj or Christian missionaries, etc.;
 S Rengasamy, Madurai Institute of Social Sciences 6
Introduction to NGO Management

Differences between Govt. & Voluntary Agencies

Govt. Voluntary
1. Philosophy Justice Charity
2. Representation Majority Minority
3. Legal basis of service Right Gratuity
4. Source of Funds Taxes Contributions
5. Determination of Junction Prescribed by law Settled by governing groups
6. Source of policy making authority Legislative Board of directors
7. Accountability To the electorate To the constituency
8. Scope Comprehensive Limited
9. Administrative Structure Large bureaucratic Small
10. Administrative Pattern of service Uniform Variable
11. Organization of Program size Large Small

Development of Voluntary Agencies in India

I Phase: Earliest 19th Century (1800 – 1850) Raja Ram Mohan Roy
Three aspects of voluntarism -Social Reform Religious reform Voluntary social work
Atmiya Society (1815) Unitarian Committee (1822) Brabmo Samaj (1826)

II Phase: Passing of Societies Registration Act (1850 – 1900)

Arya samaj (1875 Swami Dayanand Saraswathi) Ramakrishna Mission (1897 Swami Vivekanda)
Theosophical Society (1893 Annie Besant)

III Phase: Pre Independence Phase (1900- 1947)

Servants of India Society (1905) Harijan Sevak Sangh (1932)

IV Phase: Initial Decades of Independence: 1948 – 1965

Development is not uniform throughout the country- wide spread awareness about peoples needs-
Rehabilitation of refugees - CSWB established (1953)
Contribution of Vinobaji (Gram Dhan, Boodhan etc)

V Phase: New Generation of Voluntarism (1966 – 1973)

International influence on welfare & development- Paulo Firerrie contribution – Active
participation of educated and middle class urban youth.

VI Phase: Total Revolution JP Movement (1974 – 1979)

Nationalization of Banks, Abolition of Privy purses- Importance given to Rural Development -Rise
and fall of Smt. Gandhi – Janata Party came to power- Kudal commission.

VII Phase: Professional Phase (1980--)

Present generation of voluntarism.

Types of Voluntary Agencies

Voluntary and Private Social Welfare
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Introduction to NGO Management

(“Ralph Dolgof – ‘understanding social welfare”)

1. Classic Voluntary Board Directed Agency Core Capabilities of NGOs and
2. Federated Local or National Service Agency Grassroots Action
3. Indigenous self-help Mutual Aid Group Decentralized and Participatory
4. The Conduit or Vendor Agency perspective
5. Quasi – Government organization Better understanding of people's needs
6. Proprietary Private for Profit organization Less Bureaucracy
More efficiency in providing solutions
Autonomy
Funding Lobby for people and community friendly
Magnitude of spending policies
Total spending 6.1% of GNP (Private 1.6% + Public Key Limitations of NGOs
4.5%) (USA) Limited Focus/Scope
Magnitude of private spending Funding pressures
Privatization of social welfare / Advantages and “Outside” Leadership
Pre-conceived objectives of development
disadvantages To co-opt or oppose the market
Magnitude of volunteering 1500 million dollars To co-opt or oppose the Govt
Which is good? Govt. or Private Efficiency Vs Accountability

Linkages between the public & private

Funds *Tax laws & policy *Programmatic links *Accountability *Policy making

Relationship with state

Registration *Funds *Tax policy *Program links *Accountability *Policy making *Staff
Welfare
Contract State *Non profit federation *Third party Government--These are the terminology’s used
to mean expanding the state machinery without the growth of govt.
Impact of funding by govt. to private agencies- curtail of freedom & private autonomy

Towards the Future of V.A

Nationalization
Governmental operation
Re-privatization
Empowerment of voluntary organization
Pragmatic partnership

Why govt. reduce its responsibilities

1. Minimizing govt. role 2.Efficiency 3.Drift towards private enterprise
4. Professionalization of services

Role of govt. in protecting the freedom of voluntary agencies

Interdependent nature of govt. & private services
Combining the advantages i.e. To attain adequacy, Accountability, Effectiveness & Efficiency
Govt. & Private partnership is necessary. Govt. intervention is needed to protect the freedom of
voluntary agencies.
 S Rengasamy, Madurai Institute of Social Sciences
Organizational issues:
Forms of organization *Professionalism
*Leadership *Social charge
Changing Trends in voluntary Sector
In the Past:
Untrained *It was individualistic, moralistic
paternalistic *Elitist / Rich / higher caste
people
*Sporadic, occasional and unorganized
*Compassionate *Responded to crisis
situations and
not to systemic constraints *Part timers
problems. *Non Expectation *Altruism
Three major motives
Desire to help other people Relieve
suffering and increase happiness
Improve the conditions and to do right
wrongs
Personal needs to participate outside the
spheres of homework.
At Present:
Many joined welfare sector with
questionable motives, political ends,
voluntarism will soon become extinct and
nobody will be sorry for it.
7th FYP Planning Commission recognized
the voluntary effort. Retired govt. officers
established NGO.
NGO’s function as family establishment.
Foreign funding of V.A: -
Criticism as well as admiration foreign
funding – imperialistic strategy
Due to foreign funding NGO’s become big
bureaucratic spoilt & irrelevant.
Problems VA: -
Fragmentation of NGO
Competition*bickering,*mutual
suspicion,*little unity, *co-operation,
*Empire building Smaller NGO’s which
are unable to get funds, have become
members of the patronage network.
NGO’s have become extension of middle
class sensibilities, pro-establishment,
illusion creating who stood in the way of
social change and have reinforced the
exploitative system.
8
Introduction to NGO Management
The following explanations are taken from a document
adopted by UNCED as a program of action on sustainable
development for all sectors of government and society in
each country.
Caucus: A term derived from politics in the USA, meaning
a group of people who meet together to devise a common
political strategy.
CBO: Community-based organization.
Civil Society Organizations: A complex contested term,
usually referring to all people, their activities and their
relationships that are not part of the process of government.
It may also be used to cover all processes other than
government and economic activity.
Consultative status: The arrangements specified in three
resolutions of ECOSOC in 1950, 1968 and 1996, whereby
NGOs may be given the right to participate in ECOSOC and
all its subsidiary bodies.
CSD: UN Commission on Sustainable Development,
reporting to ECOSOC, the most important
intergovernmental policy-making body on environmental
questions. Its influence is through the impact on the policy
of governments. It has no programs of its own.
CSO: Civil society organization.
ECOSOC: Economic and Social Council of the United
Nations: one of the 'principal organs' specified in the UN
Charter and the body to which NGOs are accredited.
INGO: International non-governmental organization.
Major Group: One of a list of nine categories of NGOs
specified in Agenda 21.
National NGO: An NGO based in one country. It is a
misnomer as most countries are multi-national, but use of
this standard term cannot be avoided.
Network: A coalition of NGOs and/or individual people, at
the minimum sharing information and at the maximum
devising a common political strategy. Use of the term
implies the relationships are loose and informal.
Social Movement: A large number of people who
challenge established social norms and express themselves
through a variety of forms of mass social and/or political
action.
Transnational: Any relationship across country
boundaries, in which at least one of the actors is not a
government. Most commonly applied to companies, but only
when they go beyond trade, to own or control branches,
subsidiaries or affiliates in more than one country.
Umbrella group: A coalition of NGOs operating in
different fields, in a more formal, structured arrangement than
a network.
UNCED: United Nations Conference on Environment and
Development, 3-14 June 1992, held in Rio de Janeiro:
popularly known as the Earth Summit.
 S Rengasamy, Madurai Institute of Social Sciences 9
Introduction to NGO Management

Need for Voluntary Action

A developing country likes India, voluntary action is a three-stage process. First, it is based on
social conscience, which has been defined by Beveridge in his work, ‘Voluntary Action’, as ‘the
feeling of discomfort on the part of people in comfort about the people in discomfort’. Second
voluntary action has emerged from social consciousness generated by organized interest groups of
people who are committed to people-centered approach. Third organizations of various target
groups, particularly from among the weaker sections, have emerged. The membership of these
groups or associations generally cut across traditional boundaries of caste and occupational groups.
There is need for building up local initiative and leadership to take advantage of larger number of
rural development programs currently in operation as well as the new ones to be launched.

Observance as made by India’s first Plan (1951 – 1956). A national plan which embraces both
the public and the private sectors may yet be incomplete unless the enthusiastic support of large
number of voluntary organizations and voluntary workers engaged in constructive work can be
harnessed for national development.

There seems to be an erroneous impression among people in general that in a welfare state, and
particularly with socialism as an ideal, it is the state that has to do everything. It should not be
forgotten that since democratic socialism is the national goal, there is vast scope for voluntary
action in India’s political, social and economic spheres.

Because of the failure of the officially sponsored institutions, the role of the voluntary agencies has
become doubly important in a way few imagined it to be a decade ago. Political institutions and
government departments have exhibited growing differences to the felt needs of the poor and
indulged in misappropriation, of various degrees, of funds meant for the target groups.

Voluntarism in India is going through a process of evolution from altruism for its own sake, to
conscientious activity dictated by the needs of the situations. Voluntary agencies are destined to
occupy a significant place in the field of rural development at least for three important reasons.

1. NGOs have made rural development a pleasant task. Working in or for a village is no longer
considered to be infra dig. Consequently, international organizations, governmental bodies,
professional associations, affluent women and agencies sponsored by businessmen are talking
about and doing something in the rural areas.

2. Owing to their (NGOs) individualized style of functioning and the forceful and charming
personalities of the leaders, voluntary agencies have succeeded in breaking new ground. They have
made experiments, tried out new solutions and introduced novel elements. Rules and regulations
do not handicap them.

3. The work done by some of the big voluntary agencies is having international dimensions. They
have been able to conceptualize their strategies and many have had access to national and
international forums, where their voice had been heard with respect. They have been effective
because they are independent of the government and can talk with total frankness.

All Voluntary associations have similar nature. They are primarily social; using in addition
varying degree of pure normative power.
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Introduction to NGO Management

(Etzioni – Organizational typology)

Etzioni organizational typology was based on how people in organizations conform to organizational
requirements and follow the standards of behavior laid down. Goal-oriented, performance directed
organizations require the compliance of members - the problem is that deviance from these standards
occurs because of weaknesses in member commitment.
Compliance is ensured by organizational control and authority structures, formal hierarchies of
authority, supervision, job definitions, policies and specified procedures. There is a motivation element
to this as these structures shape the involvement of the individual within the origination he/she belongs
to. The simple proposition is that - the greater the individual is committed, the less formal control is
needed.
Etzioni's typology (classification scheme) includes coercive, calculative and normative systems.
We can thus label organizations or parts of organizations as:
Coercive Systems /organizations
- This reflects the organization's ability to apply physical, constraining force and pain for non-
compliance. Example: custodial organizations, prisons, control systems enable withdrawal of member
freedoms and privileges.
The involvement with the organization stemming from coercive systems of control is likely to be
alienated and at best passive with negative feelings and disassociation. Examples of coercive power in
organizations include the ability (implied or real) to fire, demote, transfer to undesirable positions or
strip subordinates of preferred perquisites.
Calculative Systems / Mutual Benefit organizations
- These organizational systems offer various kinds of material or non-material rewards to secure
member compliance. Membership is based on the member contracting with the organization and
bargaining over the desired reward in return for compliance, loyalty, reliability, performance. Members
calculate - "what's in it for me!" - Overtime, a pay raise, a promotion, a steady income, a long-term
future. This involves shades of willingness ranging from
Normative Systems (Moral Involvement)/Idealistic organizations
- The organization's system of control depends on shared values which are promoted and which
members subscribe to. The organization consciously generates and maintains these values which are
represented in signs and symbols - visual, verbal, behavioral and conceptual. Commitment to the
organization's ideology brings with it persuasive/suggestive power. Members internalize organizational
values which become their own and guide their behavior naturally. Individuals within the organization
act as one - with a very intensive commitment to the organization and which it (they) are trying to do.

Modern business organizations invest considerable effort and resource into creating such an
environment within which employees "join as one" - within a unitary, harmonious, frame work of
consensus - to achieve organizational goals. A monastic order is an obvious example of a normative
system of organizational control. But so too is the total quality/continuous quality improvement or
learning company culture.
Such systems are evident in most organizations. A large modern business relies heavily on calculative
and normative systems - albeit that for both we might conclude that there is a "motivational problem" if
employees display such alienative calculation requiring the organization has to constantly bargain with
individuals and groups over the substance of their rewards.

In organization theory, voluntary organizations have thus, been characterized as non-authoritarian,

commitment-producing entities that rely basically on the normal and idealistic value shared by the
organization members.

The term “Voluntarism” is derived from Latin word ‘voluntas’ which means will. The will
assumes various forms of impulse, opposites, of desire. It is prior to or superior to the intellect or
reason. It is the will that produce miracles and thereby some of the social evils, of which the
unfortunate sections of the society are the victims, can be eradicated. All the voluntary
organizations are the expression of human impulse (Will).
 S Rengasamy, Madurai Institute of Social Sciences 11
Introduction to NGO Management

The term volunteer is normally used to denote someone who offers unpaid service to a good cause.

Michael Banton, an anthropologist, characterized it as a group organized for the pursuit of one
interest or of several interests in common, Usually it is contrasted with involuntary groups, serving
a greater variety of ends such as kin groups, castes, social classes and communities.

A voluntary organization is a group of persons organized on the basis of voluntary membership

without State control, for the furtherance of some common interest of its members.

The previous definitions create several questions.

1) Whether the Govt. developed programs seeking increasing local participation – local structures
are voluntary organization?
2) Whether make a living associations (business firms, trade associations, production, marketing
and consumer co-ops, professional associations & trade unions) are voluntary organization?
3) Are Religious organizations are voluntary agencies?
4) Are political parties are voluntary organizations.

Some scholars consider these are not voluntary organizations. Reasons are as follows.
1. Membership in voluntary associations like trade union or professional societies may be a
condition of employment or professional status – thus may not be truly voluntary.
1. Membership in a Church or in a family may be inherited from one’s parents and in that sense,
not voluntary. Its primary purpose is glory and service to God.
Characteristics of Voluntary Organization: (Norman – Johnson)
1). Method of Formation: which is voluntary on the part of a group of people.
2) Method of Government: With self-governing organization to decide on its constitution, it’s
servicing, its policy and its clients
3) Method of Financing: With at least some of the revenues drawn from voluntary sources.
4) Motives: With the pursuit of profit excluded.

Smith and Fredman considered voluntary association as a structure formally organized, relatively
permanent, secondary grouping as opposed to less structured, informal, ephemeral or primary
groupings.

Formal organization means filling of offices which are filled through some established procedures,
scheduled meetings, qualified criteria for membership, formalized division and specialization of
labor – all these characteristics or more than one present in voluntary agencies.

Definitions:
1. “The Private action that is to say, action not under the direction of any authority wielding power
of the State, (therefore) is called voluntary action”.

2. “A voluntary organization, properly speaking is an organization which, whether its workers are
paid or unpaid, is initiated and governed by its own members without external control; a private
enterprise for social progress”. – Beveridge.

3.”A voluntary agency is an organized group formed in order to promote some common interest of
its members, in which membership is purely optional not forced or mandatory and exist
independently of the State. Its major activity is not related to the business of making a living.
 S Rengasamy, Madurai Institute of Social Sciences 12
Introduction to NGO Management

4.”The test of a voluntary agency is that, the volunteer (i.e., non-salaried) members constitute a
majority of the participants – Sill.

5. ”A voluntary agency may be defined as an organizational entity, set up by a group of

persons on their own initiative or partly by an outside motivation, to help the people of a locality to
undertake activities in a self-reliant manner (partly or wholly), to satisfy needs and also bring them
and the public sector extension services closer to one another, for more equitable and effective
development of the various sections of the rural poor – Dr. Paul Chowdhry.

6.”Voluntary agency is a group organized for the pursuit of one interest or of several interest in
common.

7.”Voluntary association is a group persons, organized on the basis of voluntary membership

without state control, for the furtherance of some common interest of its members.
8.”Voluntary organizations is characterized as non-authoritarian, commitment producing entities
that rely basically on the normal and idealistic values shared by the organization members.

9.”Action initiated by the founding people’s own volition and managed essentially by its own
membership qualifies to be recognized as voluntary action.

10.”Private enterprise for social progress” the essence of Voluntary Agency is its freedom from
external control). “Sir William Beveridge”

Classification of Voluntary Agencies

There are several criteria used to classify voluntary organizations. Following are some such criteria’s
1. Their size 2.Their internal political structure 3.Their independence or dependence on outside
control 4.Their societal functions 5.Source of their support 6.Their location 7.The class and
characteristics of their members 9.Intimacy of contact among members 10.Basis of the incentives
– material, solidarity or purposive 11.Beneficiary of the associations activities.
ii. Criteria
Majorial:
Associations which serve the interest of the majority institutions of society e.g. business professional,
educational etc.,
Minorial:
Serve the interest of the significant minority in the population e.g. Women’s Club, Church
organization.
Medial:
Associations mediate between major segment or institutions in the society E.g. Parent Teacher
Association.
iii Criteria
Allied with the State (b) Purely voluntary
iv. Criteria
1) a) Idealistic Organizations (b) Economically oriented c) Clientele’s own
2) a) Urban (b) Rural
3) a) Women (b) Non Female
4) Function wise – (a) Economic (b)Social (c) Cultural (d) Educational (e) Health & Medical (f)
Miscellaneous
5) Local, b) Regional and c) Federal
iv. Criteria
Single function b) Multifunction.
 S Rengasamy, Madurai Institute of Social Sciences 13
Introduction to NGO Management

Thus a variety of organizations are clubbed together and called voluntary organizations. They
differ in their background, ideology, motivation, legal status, level of operation, work programs,
funding sources, government control etc. Naturally different organization are having different
status. It is unfair to come to any general conclusion about their performance. Very often, simply
because some voluntary agencies are misusing the funds, the role of voluntary agencies in general
is belittled.

Depending on the approaches they adopt and the priority they give, voluntary agencies have been
classified into seven categories by J.B. Singh. This means that generally voluntary agencies
operate in seven distinct areas. There are
1. Charity: giving food, clothing, medicine, alms in cash and kind, land, buildings etc.
2. Welfare: Providing facilities for education, health, drinking water, roads, communication etc.
3. Relief: responding to call of duties during natural calamities like floods, drought, earthquakes
and man-made calamities like refugee influx, ravages of war etc.
4. Rehabilitation: Continuing and follow up of the work in areas struck by calamities and starting
activities durable in nature
5. Services: Building up infrastructure in depressed backward areas. Tractor hiring services,
providing or facilitating credit, supply of seeds, fertilizers, technical know-how etc.
6. Development of Socio- Economic Environment around human beings: Socio- economic
transformation on area basis covering all people in a given area or concentrating only on a
particular group of people normally neglected and in need of help.
7. Development of Human Beings: Conscious raising, awakening, organizing, recording of
priorities to suit social justice, redeeming the past and opening doors to opportunities to the
oppressed and the exploited.

Approaches 1 to 6 are related to delivery system. There is no controversy, no tensions in these

areas. The Government too extends full support to agencies operating in these six areas. However
area 7 is basically related to the ‘receiving mechanism’. So far as this area is concerned, the
government wants to be nonchalant, and hesitates to extend full support to the voluntary agencies.

This is so because the clashes of interests are greatest in this area. Voluntary agencies operations
in this area are bound to create misunderstanding. But, it is in this sphere, the voluntary agencies
are better placed than government departments. In other words, these are the tasks which can be
left only to voluntary agencies, and not to other agencies. In fact, the status of a voluntary agency
depends on its performance in this area

The voluntary agencies generally follow four clear-cut strategies, as pointed our by J.B. Singh.
These are
Strategy I: Simple charity, supplementing welfarism of the State
Strategy II: Encouraging people’s participation and in implementing programs launched by the
Government for the larger benefit of the community or village.
Strategy III: Involving people in program planning, raising resources, implementing activities and
sharing fruits of development.
Strategy IV: Conscience instilling and organizing people and enabling them to undertake planning
and implementation of development programs beneficial to them.

Voluntary agencies adopting strategy I generally suffer from inferiority complex and a feeling of
helplessness. It is based on ‘giver and receiver’ relationship. Most people believe that it is
paternalistic in nature and cause human degradation not up-liftment of human spirit.
 S Rengasamy, Madurai Institute of Social Sciences 14
Introduction to NGO Management

Strategy II is gaining importance in recent years. It is evident that the fruit of development are
denied to a large number of people mostly in less developed countries, leading to widening
inequalities in income and wealth. The opportunities and facilities provided by the government are
appropriated by ‘vested interests’. Of course, the poor too are to be blamed. They show interest in
the initial stages, and develop indifference afterwards. Efforts should, therefore, be initiated to
make the people to continuously participated in the programs.

Strategy III & IV are considered as hard strategies and it should be left only to the voluntary
sector.

Attributes of Voluntary Agencies

1. Spontaneity of action (with reference to emergent situation)
2. Flexibility (with reference to differential people’s needs)
3. Freedom to experiment
4. Personal touch & Human touch
5. Easy accessibility
6. Capacity to initiate the experiment with new programs
7. Stimulation and mobilization of resources of the Community
8. Sensitivity of field problem
7. Self-help and self-reliance.

Role of Voluntary Agencies

1. To Supplement Government efforts and not compete with the govt..
2. To be the eyes and ears of the people at the village level (reliable feed back to the government)
3. To provide an example
4. To activate the system and make it respond
5. To disseminate information
6. To illustrate how local, village and indigenous resources would be used for their own
development.
7. To make communities as self reliant as possible
8. To train a cadre of grass root workers, who believe in professionalizing voluntarism.
9. To mobilizes financial resources from within the community
10. To mobilize and organize the poor to demand quality service and impose a community system
of accountability on the performance of grass root government functionaries.

Functions:
- Operating programs of public interest initiated by citizens.
- Perceiving and publicizing the changing social needs of community.
- Creating public opinion in favor of social reform legislation.
- Experimenting with changing attitudes, beliefs, consciousness and participation among people
in and towards development.

Criteria to identify rural voluntary agencies:

1. The organization should have a legal entity
2. It should be based in a rural area, and be working there for a minimum of three years.
3. It should have broad-based objectives serving the social and economic needs of the community
as a whole, and mainly the weaker sections. It must not work for profit, but on a no profit – no
loss basis.
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4. Its activities should be open to all citizens of India, irrespective of religion, Caste, Creed, Sex
or race.
5. It should have the necessary flexibility, professional competence and organizational skills to
implement programs.
6. Its office bearers should not be elected members of any political party.
7. It declares that it will adapt constitutional and non-violent means for rural development
purposes.
8. It is committed to secular and democratic concepts and methods of functioning.

Role of voluntary Agencies

(as identified by the Ministry of Home Affairs working Group)

q To set an example in the field of flexibility, initiative, low cost technique, simple and
effective methods and the ability to improve.
q To supplement government efforts without compromising on strategies, policies and
methods of reaching the rural poor.
q To be the eyes and ears of the people – give reliable feedback and reach the voice of the
people to the planners and policy makers.
q To activate the system to move and respond to the felt needs of the people. To ensure that
legislation like - Minimum wages Act, Abolition of Bonded labors Act, Protection of
Civil Rights Act are being adhered to.
q To disseminate information knowledge and information at the village level is power and
this power should be distributed to as many people as possible so that it is not used as
patronage.
q To show how local resources could be used for self-development to remove gross under
utilization of human and other resources in the villages. The voluntary agencies should
demystify technology and the development process of developing people.
q To train a cadre of grass root village workers with induction of professional expertise and
scientific knowledge so that the rural poor can depend on themselves and not depend on
intermediaries.
q To mobilize financial resources from the community and promote self reliance
q To mobilize and organize the poor so that by applying pressure, the quality of the service
and the attitude of the Government functionary could improve and
q To work for social justice and remove economic cultural and caste inequalities in rural
and urban areas.
 S Rengasamy, Madurai Institute of Social Sciences 16
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VOLUNTARY ACTION FOR RURAL DEVELOPMENT

(G.Pandey & M.V.K. Sivamohan in “HRD for Rural Development” by Rao & Sharma.)

In what way the development work undertaken by the Government and voluntary agencies differ?
Like Govt., voluntary agencies also divide the rural society into sectors (agri, edu, health and
cottage industries.), functions (services, training, education, social and political change) and target
groups. Is this development? No. Than what is development?

“Development has to be viewed in terms of achieving integration among ordinate and

inordinate entities, the environment and time. This means development of man an entity has
to be achieved in such a manner that it does not unduly affect fellow human beings, other
beings, environment and all these over time”.

Rural Development broad components

People’s Development Area Development

Skill Development
Entrepreneurial development
Attitudinal change
Intra group development & harmony
Inter group development & harmony
Creation of facilities
Betterment of existing facilities
Ensuring utilization of facilities by all.
Creation of job opportunities
Creation of infrastructure for business /
trade / professional.

Rural Development
Voluntary organizations tasks are classified as less soft, soft, less hard and more hard. The more,
one move from the most soft task to the most hard task, there is need for involving people in the
process of development and change, which is possible only through developing voluntary action.
Integration is also necessary between the two tasks. What is the condition available in India?

1. No attention is being paid to tackling hard tasks by governmental agencies.

2. Most of the voluntary agencies unfortunately are involved in tackling the soft tasks rather than
the hard tasks and
3. A few voluntary agencies concentrating on hard tasks are in fact confronted with stiff
opposition not only from the vested interests and the ‘have’ groups in society, but also from
governmental agencies at all levels, especially at the lower level.

Responsibility of achieving people’s development is voluntary agencies role.

But the tasks under area development can be achieved only through government.
Again, if only area development takes place without proper people’s development, there are more
chances of fruits of such development being usurped by the ‘have’ groups. e.g. tribal area
development

Voluntary agencies taking up area development tasks. E.g. Dr. Arole’s experiment in rural health
delivery systems.

Such experiments may successful but it cannot replace the tasks which the government alone can
achieve for all the villages. Voluntary agencies can take up area development tasks only in a
limited way (doing only one function) in a restrictive space (at the most a group of villages) in a
narrow sense (short duration)
 S Rengasamy, Madurai Institute of Social Sciences 17
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Distribution to tasks between government and voluntary organizations in Rural Development.

To be performed by Jointly Alone

Government (With voluntary 0rganization)
Ensuring utilization of
Facilities by all.
Creation of facilities /
betterment of facilities /
creation of jobs, opportunities
creation of infrastructure for
business Trade/ Professions.

Voluntary agencies (With Government) Attitudinal change behavioral

Skill development change Intra / Inter group
Entrepreneurial development. development.

Voluntary agencies & tasks:

If voluntary agencies restrict themselves to performing soft tasks, which are what most voluntary
organizations are doing at present in India, there is every possibility for receiving encouragement
and even support not only from Government, but also from different sections of the society. But,
such work will only be superficial in nature the terms introducing changes in the very order of
society will merely skin deep. The contention here is that voluntary agencies like the state are also
playing soft and hence are not willing to undertake those tasks, which might meet with opposition
and bring them into open confrontation with the government.

The extent of dependence of voluntary organization on Government.

Tasks of Development
Narrow Broad
Service Training Education Conscientization

Less dependence on government

Less dependence on government

More dependence on Government

Likely response to voluntary organization tasks:

Most Soft tasks Most Hard tasks
Support / Encouragement Indifference / Non-Co-operation Active Opposition.

Voluntary Organization – It nature of work – an evaluation:

There are many handicaps in voluntary work in development
1. They lack the will to undertake the “hard tasks”
2. They have no clarity on goals and objectives.
3. They woefully lack in eliciting participation of people in their programs.

Voluntary action for rural development will be voluntary and developmental only if voluntary
organizations enjoy full autonomy–financial, programmatic and administrative and use such
autonomy in performing the hard tasks.
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Introduction to NGO Management

Unfortunately in India, the situation is that voluntary action is dependent on Government aid & in
terms of activities performed i.e. in the name of rural development voluntary agencies are making
people dependent on Government.

Pseudo Ferirean voluntary groups are making a mockery of Freire’s philosophy, denying that
people have problem solving skills and go on to supply pre-packaged information on problem
solving methods and behavior.

Voluntary agencies enter into the community at a time where they should not, achieve the task
which they should not perform, and do not know when to get out.

VOLUNTARY ASSOCIATIONS AND THE POLITICAL CULTURE

Voluntary associations ‘play a major role in democratic political culture” – It is true?

q Almond & Verb’s research study concluded that a member of a voluntary organization when
compared with a non member is likely to consider himself more competent as a citizen, to be a
more active participant in politics and to know and care about politics. He is therefore, more
likely to be close to the model of the democratic citizens. The study has revealed that
economic development needs greater rate of political participation, because associated with
economic development is an expansion organizational infrastructure. Social class and
organizational life are the component of economic development, which most strongly affect
mass political participation. Further, organizational involvement appeared to have stronger
impact on the political participation than social status.

q Absence of private and non government organizations as a significant trait of totalitarianism

q Pluralists maintained that a democratic system required multitude of independent, voluntary,

non-government associations’ buffer between the individual and the state, preventing the habit
of exercise of government power and contributing to maintenance of the policy by educating
and socializing the citizenry.

q A/c. To Tocqueville, there is a connection between proliferation of private groups and the
egalitarian and democratic character of the society. Since individuals in egalitarian society are
weak, in contrast to the aristocratic individuals, the citizens become powerless, if they do not
learn voluntarily to help one another.

q Joiners’ in voluntary organizations are more likely to take an active political role than the non-
joiners i.e. if a person does not like to associate with others, he is unlikely to go into politics.
An affiliation with some social influence associations, some time provides the extra bit of
motivation and self-confidence that leads a man to try for public offices.
q Affiliation with voluntary organization provides them with channel of personal contact with
partial electorate and provides the latter with a sense of general identify with the public
officials.
q Voluntary agencies provide a base for free and open competition for leadership posts, wide
spread participation in selection of leaders, and curbs the power of the elite by preventing them
from exploiting the masses.
 S Rengasamy, Madurai Institute of Social Sciences 19
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PROFESSIONAL MANAGEMENT OF VOLUNTARY ORGANISATIONS.

In a developing country, such as ours there is a great urgency to achieve maximum growth and
progress in the shortest times as possible. It is felt that the scope of experimentation is a costly and
slow process. As such we need to learn from the experience of others and use their results to help
achieve our goals. Here comes the role of professional management and the various techniques
developed and adopted by its.

Some methods developed by the professional managers have gone to graveyard and some methods
have passed the test of time, and these methods can be tried by voluntary agencies to overcome some
of its problems like:

1. Overlapping, conflicting and competing organizations within the voluntary sector where system in
composed of unrelated and conflicting parts. It is not possible to manage voluntary organizations
program coherently no administrative structure can execute it.

2. Widely scatter funding mechanism with little control over the costs. Many voluntary agencies
have little idea of the true cost of some of their facilities or services.

3. Decision on the mixture of facilities and services without reference to the needs of the people and
with no information about those who use / why do not use the services. Voluntary agency
management thus tends to be based on currently met demand, not on proper planning and need.

Professional management techniques can solve these problems to some extent.

Professional Management is a set of procedural steps, which may be loosely stated as embodying a
multiple idea content and which are either concerned with decision – making in general or with
decisions relating to planning, organizing or controlling of human and / or other resources with a
view to achieve the specified objectives.

Professional management
Professional management has the following features:
1. Professional Management is a set of formal steps. This is basic to any management process.
Procedural or formal steps lead to “Systematic” approach which has been the highlight of any
scientific method. The systematic approach is that of analyzing a problem, evolving alternatives
and selecting one from amongst them, finding the most suitable, after evaluating and studying the
implications of all the alternatives.
2. Professional management has multiple idea content. They do not have a single idea, but a
number of them, through related ones.
3. It helps in decision making in general
4. Professional Management gives the idea of efficiency like
a. Economy of effects in terms of money and other resources
b. Speed
c. Quality
d. Stability
e. Aesthetic or rhythmical approach.
5. Professional Management in consistent in its results.
 S Rengasamy, Madurai Institute of Social Sciences 20
Introduction to NGO Management

CLASSIFICATION OF PROFESSIONAL MANAGEMENT TECHNIQUES.

Management techniques can be classified in different ways. For example, they can be grouped
according to the outlet and the department in which they are applied as, for example, marketing
techniques, production techniques and purchasing techniques. This does not, however, cover all
techniques. For instance, where would be place the technique of brain-storming or critical
examination? An alternative can be classified according to parent discipline. But it is more an
historical approach than their current use, because many of the techniques are developed in one field
but later on used in a number of fields. Clay gives a classification which is based on the objective of
the techniques i.e., what does the technique hope to achieve. He mentions the following eight
objectives which various management techniques attempt to achieve.

1. Detection (to find our discovering something e.g., What is happening or what is wrong?):
We can include such techniques here as Input – Output Analysis, Attitude Survey, Production
Study, Activity Sampling, Critical Examination, Break-even Analysis.
2. Evaluation (to measure or estimate the value of an item): We can include such techniques
here as job Evaluation, work measurement, Work Estimation Performance Appraisal, Cost
Benefit Analysis.
3. Improvement (to improve performance): We can include such techniques here as management
by Objectives Method Study, Value Analysis etc.
4. Optimization (to Optimize Performance): We can include such techniques here as linear
Programming, Ergonomics operation Research etc.
5. Specification (to specify a desired value or situation or action): Here we can include such
techniques as Strategic Planning Office and Plant layout, Designing etc.
6. Control: Here we can include such techniques as Cost control, Credit control, Labor Control,
Inventory Control, Production Control, Budget Control etc.
7. Communication: (to communicate information): Here we can include such techniques as
Incentive Schemes, Visual Aids, Suggestion Schemes, Report Writing, Communication Theory,
Information Theory, Management Information, etc.
8. Demonstration (to demonstrate something): Here we can include such techniques as
Programmed Learning, Job Instruction, Management Development and Training, etc.

This achievements criteria tells us that these techniques can help us in discovering of finding
something is evaluating the performance, in improving the performance, in optimizing the
performance, in specifying a desired value or a situation in controlling a variable, in communication
or in demonstration. The management techniques can also be classified in terms of the various
resources of any organization.
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Resource – wise Classification of Management Techniques.

S.N Source Management Techniques

1. Men a. Organizational analysis b. Manpower planning c. Job evaluation
Training d. Incentive schemes e. Suggestion schemes f. Method
study g. Work measurement
2. Materials a. Inventory control Value analysis
b. Material handling Standardization
c. ABC Analysis Economic order quantity
3. Machinery & Equipment a. Method study Value analysis
4. Money a. Cost benefit analysis Budgetary control
b. Performance budgeting Management accounting
c. Ratio Analysis
5. Minutes a. Method Study Work measurement
b. Network analysis (PERT / CPM)
6. Markets a. Break even analysis Value analysis
b. Technological forecasting Profit volume Ratio
c. Marginal Costing
7. Message a. Management Information System
8. Methods a. Quantitative techniques
b. Mathematical models

SELECT TECHNIQUES OF PROFESSIONAL MANAGEMENT

Before we proceed to discuss the systematic applicability of management techniques according to the
level of activities of management let us discuss in brief the meaning and utility of some of the
techniques as under:

1. Man power planning (MPP)

It is the key-stone in the arch of personnel management. Manpower planning looked at from the
statistical point of view, is a process of information, collection, analysis and projection to determine
the likely effects of existing or proposed manpower policies on the manpower system under study
and to present, and advise upon, possible course of action to overcome present or future problems.
In simple words it helps the management to match manpower supply to requirement and, if
practicable, to achieve this without creating promotional blockades or shortages of having annual
fluctuations in recruitment.

2. Organization Development (OD)

In the context of organizational building, this techniques aims at increasing the
capability of an organization which is so vital for the performance of any human and economic
activity. Organizational Development implies that planned changes in one or more of the sub-system
should be such as to build flexibility and adaptability into the system to cope effectively with
turbulent and complex external environment while maintaining its own dynamic equilibrium.

3. Organizational Analysis
It is a technique in the direction of organization building. It is mainly concerned with division of
work, fixing responsibilities, and creating environment for the accomplishment of organizational
objectives with maximum costs.

4. O & M
It is generally used to describe the activities of groups of people in Government or other public
bodies or in private firms who are asked to advise administrators or managers on the question of
 S Rengasamy, Madurai Institute of Social Sciences 22
Introduction to NGO Management

organizations and method so as to increase the efficiency of work for which they are responsible,
either by providing a better service, or a cheaper one or both

5. Performance Budgeting
It is one of the cardinal tools of financial management to facilitate better programming, decision –
making, review and control. It is defined as a comprehensive operational document conceived
presented and implemented in terms of programs, projects and activities, with their financial and
physical aspects closely interwoven.

6. Ratio Analysis Techniques

It is another technique of financial management to serve as a guiding force in determining the trend
of performance over a period of time. Ratio analysis aims at taking intelligent decisions by
comparing and measuring the current and past achievements with regard to profitability, solvency,
effectiveness and efficiency of the organization.

7. Financial Accounting
This technique is used to interpreting the financial conditions and operations of an organization. In
simple words, financial accounting is described as the art of classifying, recording and reporting
significant financial events to facilitate effective economic activities.

8. Cost Benefit Analysis (CBA)

This technique is designed to consider the social costs and benefits attributable to the project. The
benefits are expressed in monetary terms to determine whether a given program is economically
sound, and select the best out of several alternate programs. Its advantage lies not in making
decision making simpler but in its possibilities for systematic examination of each part of a problem
in hand, for putting diverse decisions on a per and following logical sequence.

9. Cost Effective Analysis

It is a more promising tool than Cost – Benefit Analysis. It is similar to do the later except that
benefit instead of being expressed in monetary terms, in expressed in terms of results achieved.

10. Quantitative Techniques

The quantitative techniques are those which are increasingly being used in almost all the areas of
management for studying a wide and varied range of problems. For example linear programming is
used to solve resource allocation problems, decision theory is used to select the best course of action
when information is given is probabilities, games theory determines the optimum strategy in a
competitive situation, simulation is used to initiate an operation or process, and index numbers
facilitate in measurement of fluctuation in prices volume, economic activity or other variable over a
period of time relative to a base.

11. Electronic Data Processing (EDP)

The rationale is using this techniques is to reduce the manpower required, the time taken for a given
process and to reduce the possibility of error.

12. Management Information System (MIS)

This technique is tailored to provide such information to the decision makers which are most
relevant, accurate, complete, concise, timely, economic, reliable and efficient. A good information
system provides data for monitoring and evaluating the programs and gives the requisite feedback to
the administrators and planners at all levels.
 S Rengasamy, Madurai Institute of Social Sciences 23
Introduction to NGO Management

13. Program Evaluation and Review Technique (PERT)

It emphasizes the efficient performance of a project. In the simplest form of PERT, a project is
viewed as a total system and consists of setting up a schedule of dates for various stage and exercise
of management control, mainly through project status reports, on its progress.

14. Critical Path Method (CPM)

It aims at reducing the time required to implement a project by breaking the project into activities
that must be undertaken for its implementation and by determining their sequence, it is possible to
isolate most critical activities in the project and to complete the critical path schedule for their
implementation.

15. Gantt Chart Method

It is one of the techniques used in the efficient implementation of a project. Simply started, it is a
graphical presentation displaying the schedule of activities amenable to a comparative assessment of
the schedule and actual performance.

16. Work Study

It is one of the most important techniques aiming at eliminating inefficiency and ensuring all-round
performance in the administrative organizations as well as at the works. Work study is thus
primarily concerned with increasing productivity by optimum use of human and material resources.

17. Method Study

It is one of the techniques of work study. It is not only concerned with reducing the work content of
a job or operation but also improving the methods of work to raise the level of productivity of staff,
equipment and materials. According to British Standard Institution Method study is the systematic
recording and critical examination of existing and proposed ways of doing work as a means of
developing and applying easier and more effective methods and reducing costs.

18. Work Measurement

It again forms a part and parcel of work study technique. It aims at fixing yardsticks to measure the
individual and collective performance. In simple words, it is the application of techniques designed
to establish the time for a qualified worker to carry out a specified job at a defined level of
performance.

19. Economic Order Quantity (EOQ)

This technique is an off-shoot of the Inventory Management. It facilitates in planning production
schedules / procurement of goods at such economic costs / quantity that there is neither pilling up of
stocks nor shortage of materials.

20. ABC Analysis

It is that technique which would enable a busy executive to chase those files ardently which would
quicken the wheel of administrative machinery. By arranging his work into an order of priorities, he
can decide on which items to concentrate first, which other to deal later and yet which other to
delegate to his assistance. When done more systematically and in quantitative terms this system of
building up priorities of work is called as the ABC Analysis.