>> MIM Speaks
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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