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MANAGING A GROUP OF EQUALS
AUGUST 22, 1999 - THE STAR
                                                                                                           
IN a developing country, economic and social development are                                                                                          
driven by two sectors-private and public.                                                                                                             
                                                                                                                                                      
It is the role of the private sector to create wealth through                                                                                         
the operations of business enterprises while Government                                                                                               
mediates by providing the supporting infrastructure and                                                                                               
regulatory framework for business to be conducted in an                                                                                               
orderly and socially acceptable way.                                                                                                                  
                                                                                                                                                      
As the economy and society mature, there will be areas of                                                                                             
human concern which neither Government nor the private sector                                                                                         
will be in a position or be sufficiently inclined to assume                                                                                           
responsibility for.                                                                                                                                   
                                                                                                                                                      
These will cover concerns over standards of professional                                                                                              
practice care for the disadvantaged and the protection of                                                                                             
human rights and planet Earth.                                                                                                                        
                                                                                                                                                      
Quite a number of organisations dedicated to serving the                                                                                              
interests of these concerns have already begun to intervene as                                                                                        
a force in society.                                                                                                                                   
                                                                                                                                                      
Professional associations have been formed to promote high                                                                                            
professional practice. For example, the legal fraternity is                                                                                           
governed by the Bar Council, the doctors by the Malaysian                                                                                             
Medical Association and the engineers by the Institution of                                                                                           
Engineers Malaysia.                                                                                                                                   
                                                                                                                                                      
Likewise, community concerns have attracted many supporters in                                                                                        
organisations like Rotary, Lions Kiwanis, Red Crescent, the                                                                                           
Kidney Foundation and the Spastics Centre.                                                                                                            
                                                                                                                                                      
These and many other community service organisations have a                                                                                           
focus and, like the professional associations, apply                                                                                                  
management to achieve stated goals.                                                                                                                   
                                                                                                                                                      
As we develop as a nation, there will always be new concerns                                                                                          
which neither Government nor the private sector will be                                                                                               
addressing.                                                                                                                                           
                                                                                                                                                      
The vacuum will inevitably attract concerned citizens who will                                                                                        
sub scribe to form a society to look after the new interests.                                                                                         
	                                                                                                                                                     
Voluntary organisations, often referred to as non-Governmental                                                                                        
organisations (NGOs), are here to stay.                                                                                                               
                                                                                                                                                      
As with the developed world, they will grow and become                                                                                                
dominant as a force to bridge the two traditional sectors of                                                                                          
Government and the private sector.                                                                                                                    
                                                                                                                                                      
Business management and public administration have been                                                                                               
supported by a growing literature of knowledge, understanding                                                                                         
and skills.                                                                                                                                           
                                                                                                                                                      
Managers of business enterprises and in the civil service can,                                                                                        
therefore, be developed to be more competent practitioners of                                                                                         
management.                                                                                                                                           
                                                                                                                                                      
However, the concern over the management of voluntary                                                                                                 
organisations is relatively new and lacks the armoury of                                                                                              
established literature. While the principles of good                                                                                                  
management are universal, there exist organisationally unique                                                                                         
characteristics that will warrant some degree of customisation                                                                                        
in managing voluntary organisations.                                                                                                                  
                                                                                                                                                      
First, most voluntary organisations are governed and managed                                                                                          
by volunteers through a council or an executive committee. The                                                                                        
job often is to raise funds and to be involved in projects.                                                                                           
                                                                                                                                                      
Take the case of a Rotary Club.  The president and his board                                                                                          
of directors serve the interests of the community by being                                                                                            
directly involved with raising funds as well as initiating and                                                                                        
managing projects that benefit the community.                                                                                                         
                                                                                                                                                      
As there are no employees that the Rotary Club can delegate                                                                                           
the duties to, all Rotarians take time and contribute effort                                                                                          
directly in executing the project.                                                                                                                    
                                                                                                                                                      
This is as flat an organisation as can possibly be conceived                                                                                          
with the serving president as primus inter pares or first                                                                                             
among equals.                                                                                                                                         
                                                                                                                                                      
That is why it is customary for Rotary club presidents to be                                                                                          
in office for only one Rotary year.                                                                                                                   
                                                                                                                                                      
As-work is voluntary, the Rotary president has no legal power                                                                                         
over other Rotarians and he has, therefore, to manage quite                                                                                           
differently from corporate management.                                                                                                                
                                                                                                                                                      
As he has been elected to office, his authority is moral and                                                                                          
he will have to use enormous persuasion, human relations and                                                                                          
personal charm to elicit the-required response from his fellow                                                                                        
Rotarians to commit time and effort voluntarily to a common                                                                                           
cause.                                                                                                                                                
                                                                                                                                                      
The leader of a voluntary organisation who resorts to                                                                                                 
corporate management tactics will soon find a withdrawal of                                                                                           
enthusiasm and, maybe even resignations among its members.                                                                                            
                                                                                                                                                      
Second, some voluntary organisations have sufficient funding                                                                                          
to install a small staff force, particularly in areas that                                                                                            
require technical experience.                                                                                                                         
                                                                                                                                                      
Hence, professional associations, for example, do have support                                                                                        
staff to service the membership. Upon the staff falls the                                                                                             
responsibility of management. The job of the council is                                                                                               
governance.                                                                                                                                           
                                                                                                                                                      
There is a distinction between the two roles. Often this                                                                                              
distinction is not recognised and the staff is subject to                                                                                             
directives from different members of the council, making the                                                                                          
job of servicing its membership that much more difficult to                                                                                           
fulfil on a professional basis.                                                                                                                       
                                                                                                                                                      
It is part of the evolution of the voluntary organisation to                                                                                          
decide when to surrender management autonomy to its employed                                                                                          
staff.                                                                                                                                                
                                                                                                                                                      
When, for instance, the Malaysian Institute of Management was                                                                                         
first established in 1966, it was the elected members of the                                                                                          
governing council who behaved like the board of directors of a                                                                                        
Rotary Club, doing everything that needed to be done directly                                                                                         
in order to move the organisation.                                                                                                                    
                                                                                                                                                      
When resources warranted the appointment of a general manager                                                                                         
in 1975, the distinction between governance and management was                                                                                        
clearly recognised and all Council members then were no longer                                                                                        
directly involved in the daily operations of the Institute.                                                                                           
                                                                                                                                                      
Third, voluntary organisations are not profit-seeking. Because                                                                                        
of its community orientation, quite a number of voluntary                                                                                             
organisations are also exempt from income tax.                                                                                                        
                                                                                                                                                      
Therefore, they are not driven like business enterprises                                                                                              
towards a bottom line expectation. Neither are they entirely                                                                                          
cost centres like Government departments.                                                                                                             
                                                                                                                                                      
They do raise funds and they do organise activities. Their                                                                                            
effectiveness is measured by their ability to fulfil the                                                                                              
objectives of the organisation.                                                                                                                       
                                                                                                                                                      
Accordingly, managing voluntary organisations is quite                                                                                                
different in contextual terms from business management or                                                                                             
public administration.                                                                                                                                
                                                                                                                                                      
Performance indicators are less clearly defined and financial                                                                                         
incentives are much less attractive.                                                                                                                  
                                                                                                                                                      
Service in voluntary organisations is not meant for the                                                                                               
financially ambitious nor for those inclined to seek rewards                                                                                          
in titles bestowed by royalty.                                                                                                                        
                                                                                                                                                      
It is, therefore, not surprising that there will generally be                                                                                         
a much higher proportion of female employees and individuals                                                                                          
who find satisfaction in contributing to a cause in voluntary                                                                                         
organisations.                                                                                                                                        
                                                                                                                                                      
Perhaps the greatest concern and obstacle to the growth and                                                                                           
effectiveness of voluntary organisations is the issue of the                                                                                          
future.                                                                                                                                               
                                                                                                                                                      
There are examples of voluntary organisations whose growth                                                                                            
problem over the years suggests the lack of a clear vision                                                                                            
and/or the lack of driving power to fulfil the vision.                                                                                                
                                                                                                                                                      
Part of the problem rests with the constitutional make-up of                                                                                          
these organisations. Office bearers serve for short terms and                                                                                         
as successors take over, new directions and activities replace                                                                                        
what had been previously done.                                                                                                                        
                                                                                                                                                      
The focus on short-term projects coupled with the lack of                                                                                             
consistency and continuity weakens the effectiveness and                                                                                              
credibility of the organisation.                                                                                                                      
                                                                                                                                                      
It will take leaders of voluntary organisations to think about                                                                                        
contributing to creating the future for their organisations                                                                                           
rather than just serving out their term of office before any                                                                                          
significant difference can be expected.                                                                                                               
                                                                                                                                                      
In this respect, maybe a dose of corporate management practice                                                                                        
of crafting a business plan would be a useful beginning.                                                                                              
                                                                                                                                                      
Quite a number of voluntary organisations have a large                                                                                                
membership base, which suggests good community support.                                                                                               
                                                                                                                                                      
The most critical nexus is to network the membership to                                                                                               
produce the influence and impact it hopes to achieve.                                                                                                 
                                                                                                                                                      
How this is done is the job of management and the honorary                                                                                            
president or chairman and, in some cases, the paid executive                                                                                          
secretary or director has the responsibility to manage the                                                                                            
organisation in the best and most effective way.                                                                                                      
                                                                                                                                                      
Corporate management practice can offer guidelines, but                                                                                               
depending on the nature of the voluntary organisations, some                                                                                          
degree of customisation to the unique needs and                                                                                                       
characteristics of each organisation will he necessary.                                                                                               
 

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