participatory program planning and management

Compiled by

S.Rengasamy

S.Rengasamy - Participatory Programme Planning & Management

2

Contents

Syllabus: Introduction to Social Entrepreneurship ....................................................................................... 8

Overview of Participatory Project Planning and Management ..................................................................... 9

Introduction ................................................................................................................................................. 9

Terminologies associated with the concept .................................................................................................. 9

Participation, participatory ..................................................................................................................... 9

Project ..................................................................................................................................................... 9

Project management and Participatory development (intro) ......................................................................... 9

Beneficiaries and stakeholders ............................................................................................................... 9

Two main approaches to people‘s participation in projects ................................................................... 9

What do project teams need to have? ..................................................................................................... 9

Project Management methodology ............................................................................................................ 9

Overview of Project Management processes ................................................................................ 9

Overview of Project Management Knowledge areas .................................................................... 9

Overview of Project Life Cycle (PLC) ......................................................................................... 9

Overview of Participatory development philosophies and approaches ................................................. 9

Rapid rural Appraisal (RRA).................................................................................................................. 9

Participatory Rural Appraisal (PRA) ...................................................................................................... 9

Asset-based approaches (appreciative inquiry) ...................................................................................... 9

Participatory Action research ................................................................................................................. 9

What are the leanings about participatory approaches? ........................................................................ 9

Unit I ........................................................................................................................................................... 10

Concept, Meaning, Importance of Participation ......................................................................................... 10

Box: Principles of Participation .................................................................................................................. 10

Table: Types of Participation in development (I) ....................................................................................... 11

Table: Types of Participation (2) ................................................................................................................ 12

Box: Types of Participation (3) ................................................................................................................... 12

Advantages and disadvantages of participation to different stakeholders. ................................................. 13

Core Values for the Practice of Public Participation .................................................................................. 14

Why participation fails? .............................................................................................................................. 14

Administrators & Citizens –Attitudes that affect participation ................................................................... 14

Four requisites to achieve proper citizen participation: .............................................................................. 14

Importance of the role of citizens: .............................................................................................................. 15

Nature of People‘s Participation ................................................................................................................. 15

Participation depends upon ......................................................................................................................... 15

Citizen‘s – Administrator‘s Relationships & Participation ......................................................................... 15

Stages of participatory planning ................................................................................................................. 16

Box: Concept of ―Participation‖ & On Beneficiaries & Stakeholders ....................................................... 17

About Projects and People‘s participation: ................................................................................................. 18

How do we understand Participatory Approach?........................................................................................ 18

Concept, Meaning, Types of development projects. ................................................................................... 19

Definition of a project ................................................................................................................................. 19

Categories of projects ................................................................................................................................. 19

Box: Stages in Participatory Learning (1) & Types of Project Planning (2) .............................................. 20

Unit II .......................................................................................................................................................... 21

Project Management Methodology ............................................................................................................. 21

Where does it come from? .......................................................................................................................... 21

Purpose of participatory planning ............................................................................................................... 22

Salient features ............................................................................................................................................ 22

Defining Terminology: ............................................................................................................................... 22


3

Understanding Project vs Program vs Operations ...................................................................................... 22

Steps in participatory planning in Local Governance (Model I) ................................................................. 23

(Steps followed in Kerala‘s State wise People‘s Planning Program ........................................................... 23

General phases of a project. (Model II) ...................................................................................................... 23

Project management‘s processes (Model III) .............................................................................................. 24

Processes Sequence (Model IV) ................................................................................................................. 24

Processes Dynamics: ................................................................................................................................... 24

Project Management‘s Knowledge areas .................................................................................................... 24

Project‘s Life Cycle (PLC) ......................................................................................................................... 25

The Project‘s Life Cycle (PLC) phases: (Model V): .................................................................................. 25

Participatory development philosophies and approaches ........................................................................... 26

Background to Participatory approaches .................................................................................................... 26

Principles of Participation ........................................................................................................................... 26

Some of the key Participatory Approaches ................................................................................................. 27

Rapid Rural Appraisal (RRA) ..................................................................................................................... 27

RRA means: ................................................................................................................................................ 27

RRA techniques .......................................................................................................................................... 27

Participatory Rural Appraisal (PRA) .......................................................................................................... 27

Fundamental principles of PRA .................................................................................................................. 28

Participation: ........................................................................................................................................ 28

Flexibility: ............................................................................................................................................ 28

Team work: ........................................................................................................................................... 28

Triangulation: ....................................................................................................................................... 28

Optimal ignorance: ............................................................................................................................... 28

Some PRA tools .......................................................................................................................................... 28

Dia & Box: PRA Tools for various phases & purposes .............................................................................. 29

Asset-based approaches .............................................................................................................................. 31

Appreciative Inquiry ................................................................................................................................... 31

Participatory Learning and Action (PLA) ................................................................................................... 31

Appreciative Participatory Planning and Action ........................................................................................ 31

Asset-based Community development (ABCD) ......................................................................................... 31

The Capability Approach (CA) ................................................................................................................... 32

Different twists to the definition of Participation: ...................................................................................... 32

Classification of PRA tools: ........................................................................................................................ 33

Matching the Different PRA Tools for Each Step in the Project Cycle ...................................................... 33

Goals of Participatory Process .................................................................................................................... 34

Unit III ........................................................................................................................................................ 35

Professional Management of Projects/Programs. ....................................................................................... 35

Professional management ........................................................................................................................... 35

Classification of Professional Management Techniques. ........................................................................... 36

Resource – wise Classification of Management Techniques ...................................................................... 37

Select Techniques of Professional Management......................................................................................... 37

1. Man power planning (MPP) .................................................................................................................... 37

2. Organization Development (OD) ............................................................................................................ 37

3. Organizational Analysis .......................................................................................................................... 37

4. O & M ..................................................................................................................................................... 37

5. Performance Budgeting .......................................................................................................................... 38

6. Ratio Analysis Techniques...................................................................................................................... 38

7. Financial Accounting .............................................................................................................................. 38

8. Cost Benefit Analysis (CBA) .................................................................................................................. 38


4

9. Cost Effective Analysis ........................................................................................................................... 38

10. Quantitative Techniques ....................................................................................................................... 38

11. Electronic Data Processing (EDP) ........................................................................................................ 38

12. Management Information System (MIS) .............................................................................................. 38

13. Program Evaluation and Review Technique (PERT) ........................................................................... 38

14. Critical Path Method (CPM) ................................................................................................................. 39

15. Gantt Chart Method .............................................................................................................................. 39

16. Work Study ........................................................................................................................................... 39

17. Method Study ........................................................................................................................................ 39

18. Work Measurement ............................................................................................................................... 39

19. Economic Order Quantity (EOQ) ......................................................................................................... 39

20. ABC Analysis ....................................................................................................................................... 39

Unit IV Also in UNIT-111 of Introduction to Social Entrepreneurship.................................................... 40

The importance of finance in development ................................................................................................. 40

Fund Raising /Mobilization - Explanation: ................................................................................................. 40

Fund Raising- .............................................................................................................................................. 40

Sources of funds .......................................................................................................................................... 40

Government: ............................................................................................................................................... 40

Types of Grants: .......................................................................................................................................... 41

Conditions for getting Grants – in – Aid ..................................................................................................... 41

Private / Voluntary Sources: ....................................................................................................................... 41

Problems in raising funds for VAs/NGOs /NPOs/ Social Enterprises ........................................................ 41

Other Problems identified are: .................................................................................................................... 42

Fundraising Campaign –I ............................................................................................................................ 42

Planning the Campaign ............................................................................................................................... 42

Methods of Collection ................................................................................................................................. 43

Community Chest / United Fund / Joint Budgeting / Federated Financial Campaign ................................ 43

Community Chest: ...................................................................................................................................... 43

Fund raising through international agencies. See FCRA regulations ......................................................... 43

FUNDRAISING - II ................................................................................................................................... 43

Fundraising plan.......................................................................................................................................... 44

1. First Step ................................................................................................................................................. 44

Once Decided to Raise Funds ..................................................................................................................... 44

Fundraising Pyramid ................................................................................................................................... 44

Funding options .......................................................................................................................................... 44

Local Fund Raising Activities .................................................................................................................... 44

Raising Money through Membership ......................................................................................................... 45

Donations .................................................................................................................................................... 45

Sponsorship Strategy .................................................................................................................................. 45

Ways of recognizing sponsors .................................................................................................................... 45

Professional Fundraising Consultant .......................................................................................................... 46

Applying for funds ...................................................................................................................................... 46

Applying for Funds - Application Contents - Checklist ............................................................................. 46

Begetting ..................................................................................................................................................... 47

Estimation of Financial Requirement of a Project ...................................................................................... 47

Definition of a budget: ................................................................................................................................ 47

Purpose of the budget. ................................................................................................................................. 47

Assessment: .......................................................................................................................................... 47

Indication: ............................................................................................................................................. 48

Guidance:.............................................................................................................................................. 48


5

Helping: ................................................................................................................................................ 48

Informing: ............................................................................................................................................. 48

Methods of preparing a budget: (Steps) ...................................................................................................... 48

Estimation of Financial Requirement ......................................................................................................... 48

Note on Budget preparation: - ..................................................................................................................... 49

Foreign Contribution Regulation Act 1976 ................................................................................................ 49

Charter for NGOs / Associations Applying for Grant of Prior Permission / .............................................. 50

Registration under The Foreign Contribution (Regulation) Act, 1976. ...................................................... 50

Salient features of Foreign Contribution Regulation Act, 1976 ................................................................. 50

Need for Foreign Contribution Regulation Act, 1976 ................................................................................ 51

Foreign Contribution ................................................................................................................................... 51

Foreign Source ............................................................................................................................................ 52

Box: Getting Foreign Contribution ............................................................................................................. 52

Who cannot accept Foreign Contribution? ................................................................................................. 52

Types of permission .................................................................................................................................... 53

Registration ................................................................................................................................................. 53

Reasons for rejection of Registration Applications .................................................................................... 53

Must dos for the registered associations ..................................................................................................... 53

Box: Indian Diaspora‘s opinion on FCRA .................................................................................................. 54

Prior Permission when required .................................................................................................................. 54

Essentials of prior permission ..................................................................................................................... 55

Penalties ...................................................................................................................................................... 55

Role of Banks .............................................................................................................................................. 55

Bilateral Development Assistance Preferred Bilateral Partner Countries .................................................. 55

Preferred Areas for Bilateral Development Assistance .............................................................................. 55

Procedure for clearing the proposals ........................................................................................................... 55

Receipt of Foreign Contribution ................................................................................................................. 56

Amount wise break-up of foreign contribution received by reporting associations ................................... 56

Issues in the Functioning of NGO‘s ............................................................................................................ 57

Accountability ............................................................................................................................................. 57

Accountability – Authority – Responsibility: ............................................................................................. 57

Efficient Use of Resources .......................................................................................................................... 57

Administrative Accountability .................................................................................................................... 57

Why accountability? ................................................................................................................................... 58

Administrators are guilty of ........................................................................................................................ 58

Box: Defining Financial Accountability ..................................................................................................... 59

Accountability is achieved through [control mechanisms] ......................................................................... 59

External system controls: (people) .............................................................................................................. 59

The key principles of NGO Accountability ................................................................................................ 60

Accountability is determined by ................................................................................................................. 60

Methods to improve the Administrative Accountability ............................................................................. 60

Methods to improve accountability............................................................................................................. 61

Regulatory Authorities ................................................................................................................................ 61

Administrative Accountability .................................................................................................................... 61

Concept of Administrative Accountability is culture oriented ................................................................... 62

Accountability is achieved thro................................................................................................................... 62

Box: NGOs and Financial Accountability .................................................................................................. 62

Responsibility to the Legislature: ............................................................................................................... 62

Conduct & Discipline: ................................................................................................................................ 62

Accountability is established thro‘ conduct rules ....................................................................................... 62


6

Box: ............................................................................................................................................................. 63

Unit V ......................................................................................................................................................... 64

Project Monitoring ...................................................................................................................................... 64

Methods and Techniques of monitoring projects / Programs ..................................................................... 64

Purpose of Monitoring: ............................................................................................................................... 64

Steps in Monitoring: ................................................................................................................................... 65

Indicators for Monitoring: ........................................................................................................................... 65

Methods / Techniques of monitoring. ......................................................................................................... 65

Evaluation ................................................................................................................................................... 65

Meaning, Objectives, Scope, Principles, Functions, and Methods of Project Evaluation. Types (internal /

external) of Evaluation. A guideline for evaluating Projects ..................................................................... 65

Meaning of evaluation: ............................................................................................................................... 65

Evaluation primarily perceived from three perspectives. ........................................................................... 66

Areas of evaluation: .................................................................................................................................... 66

Purpose: ................................................................................................................................................ 66

Programs:.............................................................................................................................................. 66

Staff: ..................................................................................................................................................... 66

Financial Administration: ..................................................................................................................... 67

Box: Stages in Evaluation. ................................................................................................................... 67

General: ................................................................................................................................................ 67

Purpose of Evaluation: ................................................................................................................................ 67

From an accountability perspective, ........................................................................................................... 67

From a knowledge perspective: .................................................................................................................. 67

Principles of Evaluation: ............................................................................................................................. 67

Stages in Evaluation. ............................................................................................................................ 67

1. Program Planning Stage. ............................................................................................................ 67

Program Monitoring Stage : ........................................................................................................... 67

Box: Steps in Evaluation: ............................................................................................................................ 68

Types of Evaluation: ................................................................................................................................... 68

Evaluation can be categorized under different headings ...................................................................... 68

A) By timing (when to evaluate) .......................................................................................................... 68

Formative Evaluation ........................................................................................................................... 68

Summative Evaluation ......................................................................................................................... 68

B) By Agency. Who is evaluating? ..................................................................................................... 68

By Stages .............................................................................................................................................. 68

Internal / External Evaluation: .............................................................................................................. 68

Internal Evaluation: (Enterprise Self Audit) ........................................................................................ 68

External / Outside Evaluation: (This is done by outsiders /Certified Management Audit) ................. 68

Box: Five strategic M&E questions to manage for impact .................................................................. 69

Methods of Evaluation: (Tools / techniques) ............................................................................................. 69

First hand Information: ............................................................................................................................... 69

Formal / Informal periodic Reports. ........................................................................................................... 69

Project Status Report: ................................................................................................................................. 69

Project schedule Chart: ............................................................................................................................... 69

1) Project Financial Status Report: ............................................................................................................. 69

2) Informal reports: ..................................................................................................................................... 69

3) Graphic presentations: ............................................................................................................................ 70

4) Standing Evaluation Review Committees: ............................................................................................. 70

5) Project Profiles: ...................................................................................................................................... 70

Participatory Monitoring and Evaluation .................................................................................................... 70


7

Why is Participatory Monitoring and Evaluation important? ..................................................................... 70

What are the principles of Participatory Monitoring & Evaluation? .......................................................... 70

Box: Stakeholder (Group) participation in M&E........................................................................................ 71

The strengths and weaknesses of "insiders" and "outsiders" in project evaluation .................................... 72

Steps in Participatory, Stakeholder-Driven Evaluation .............................................................................. 72

Steps in Participatory, Stakeholder-Driven Evaluation .............................................................................. 73

Doing Evaluation –UNFPA Guidelines ...................................................................................................... 73

Doing Evaluation ........................................................................................................................................ 74

What is Program Evaluation? ............................................................................................................... 74

Why evaluate? ...................................................................................................................................... 74

What is the Relationship between ............................................................................................................... 74

Monitoring and Evaluation? ....................................................................................................................... 74

Characteristics of Monitoring and Evaluation ............................................................................................ 75

When do we need Monitoring and .............................................................................................................. 75

Evaluation results during the ...................................................................................................................... 75

What is the relationship between ................................................................................................................ 75

evaluation and audit? .................................................................................................................................. 75

The differing focus of Audit and Evaluation ........................................................................................ 75


8

Syllabus: Introduction to Social Entrepreneurship

MSW II Year Major Subject (Specialization Papers).14 /16.

Community Development

Max Marks 100 Int: 25 Ext: 75

Semester – 4 Participatory Program Planning & Management Hrs: 6 hrs week

Sub: Code: Credit: 5

1) To facilitate the learning on concepts of participatory program planning and management

and steps and issues related to project / program planning.

2) To enlighten the students regarding administration financial management and monitoring

and evaluation. UNIT I

Concept, Meaning, Importance, Types of Participation in development. Advantages and disadvantages

of participation to different stakeholders. Role of Government and Non Profit Organizations in

promoting participation. Concept, Meaning, Types of development projects. UNIT II

Steps in Participatory Project / Programme Planning. Identification of needs –Determining priorities –

Assessing feasibility – Specifying goals and objectives – Identifying preferred solution – Preparing

Action Plan. Using appropriate PRA/PLA tools in each step. UNIT III

Administration of the Project. Concept of Professional management. Techniques to promote

participation. Stakeholder Analysis - Force field analysis - SWOT Analysis – PERT & CPM, Logical

Framework Analysis UNIT IV

Financial Management of the Project. Preparation of Budget. Financial Management tools to improve

the transparency and efficient utilization of resources. Statutory rules and regulations related to

Auditing, IT regulations and FCRA procedures. UNIT V

Concept, Meaning and Importance of Monitoring and Evaluation. Components of M&E- Physical,

Financial, Staff Performance. Technical aspects – Output, Outcome & Impact

Trends in People‘s Participation in M & E. Contribution of Right to Information Act. References

1. Andrea Cornwall & Garett Pratt, (2003), Pathways to Participation – Reflections on PRA, London

Intermediate Technology Publications.

2. Robert Chambers, (1997) Who‘s Reality Counts – Putting the First Last, London, Intermediate

Technology Publications.

3. Robert Chambers, (1997) Participatory Rural Appraisal (PRA) Challenges, Potential and

Paradigms, Sussex, Institute of Development Studies.

4. Ian Scoones & John Thompson, (2004),Beyond Farmer‘s First, London, ITDG.

5. Andrea Cornwall & Garett Pratt, (2003) Pathways to Participation – Reflections on PRA, London,

ITDG.

6. Neela Mukherjee, (1994), Participatory Rural Appraisal – Methodology & Applications, New

Delhi, Concept Publishing Company.

7. Jules Pretty, Irene Guijit, John Thompson & Ian Scoons, (1995) PLA – A Trainer‘s Guide, IIED.

8. Lock Dennis, (1997) Handbook of Project Management, New Delhi, Jaico Publishing House,.

9. Chandra Prasanna, (1995) Projects: Planning, Analysis, Selection, Implementation and Review,

Tata McGraw Hill Pub. Co. Ltd.


9

What Students are expected to learn? Participatory Project Planning and Management

Introduction Terminologies associated with the concept

Participation, participatory

Project Project management and Participatory development (intro)

Beneficiaries and stakeholders Two main approaches to people‟s participation in projects

What do project teams need to have?

Project Management methodology Overview of Project Management processes

Overview of Project Management Knowledge areas

Overview of Project Life Cycle (PLC)

Overview of Participatory development philosophies and approaches

Rapid rural Appraisal (RRA) Participatory Rural Appraisal (PRA)

Asset-based approaches (appreciative inquiry) Participatory Action research

What are the leanings about participatory approaches?

Participatory Project Inception and Design How to build on people‟s wish for change (initiating)

How to ensure collective contributions How to identify resources needed: existing skills and assets, external input (planning)

Participatory Project Implementation

Keeping people‟s agency at the heart of the action Identifying risks, mitigating them

Managing the action while keeping participation Managing resources: human, in-kind, financial

Some methodologies and tools Communication, never enough said

Project Follow-up and monitoring

Strategies for ongoing participatory assessment Tracking Changes, Confirming plan

When Change is needed: adjusting the course of action Participatory Project Evaluation

Why do a project evaluation?

Evaluate what and for whom: accountability vs learning Revisiting the change expected Taken from: Lucie Goulet

Overview of Participatory Project Planning and Management


10

Unit I

Concept, Meaning, Importance of Participation

Participation is considered as a voluntary contribution by the people to one or another of the

public programs supposed to contribute to national development, but the people are not expected

to take part in shaping the program or criticizing its content - ECLA.

Participation means… in its broadest sense, to sensitize people and thus, to increase the

receptivity and ability of the rural people to respond to development programs, as well as to

encourage local initiatives -- Uma Lele.

With regard to rural development … participation includes people‘s involvement in decision

making process, implementing programs… their sharing in the benefits of development

programs, and their involvement in efforts to evaluate such programs – FAN. Lisk

Popular participation in development should be broadly understood as the active involvement of

people in the decision making process in so far as it affects them – Upholf and Lhen

Community involvement means that people, who have both the right and the duty to participate

in solving their own problems, have greater responsibilities in assessing their needs, mobilizing

local resources and suggesting new solutions, as well as creating and maintaining local

organizations – W.H.O.

Participation is considered to be an active process, meaning that the person or group in question

takes initiatives and asserts his / her or its autonomy to do so. -- Md. A. Rahman.

Participation…means the organized efforts to increase control over resources and regulative

institutions in given social situations, on the part of groups and movements of those hither to

excluded form such control – Pearse and Stiefel.

Participation is a way of viewing the world and acting in it. It is about a commitment to help

create the conditions which lead to significant empowerment of those who at present have little

control over the forces that condition their lives. Marjorie Mbilinyi and Rakesh Rayani

Box: Principles of Participation

Unit I Concept, Meaning, Importance, Types of Participation in development. Advantages and disadvantages of participation to different stakeholders. Role of Government and Non Profit Organizations in promoting participation. Concept, Meaning, Types of development projects.

Principles of Participation 1. People are experts in their lives, others learn from them. 2. Participatory work tries to include everyone relevant to the activity. It includes include voices and ideas that

may not normally be heard. 3. In good participatory work people take ownership of the process that is developed together with others from

many different backgrounds. 4. Participatory work follows cycles of learning- each step helping to form the next step. 5. Participatory work requires people to be self-reflective. Practitioners continuously examine and develop their

practice. 6. Participatory work is rigorous and ethical. Participants continuously check their work and design ways of testing

the process and the findings. 7. Participatory work should lead to action. 8. Good participatory work should recognize the role of power in relationships and seeks to lead to empowerment

of those disadvantaged by the present situation


11

Table: Types of Participation in development (I)

Typology Components of Each Type

1. Passive Participation

People Participates by being told what is going to happen or has already happened. It is a unilateral announcement by an administration or project

management without any listening to people‟s responses. The information being shared belongs only to external professionals.

2.Participation in

Information Giving

People participate by answering questions posed by extractive researchers

using questionnaire surveys or similar approaches. People do not have the opportunity to influence proceedings, as the findings of the research are

neither shared nor checked for accuracy.

3. Participation

by Consultation

People participate by being consulted, and external agents listen to views. These external agents define both problems and solutions, and may modify

these in the light of people‟s responses. Such a consultative process does not concede any share in decision making and professionals are under no

obligation to take on board people‟s views.

4. Participation

for Material Incentives

People participate by providing resources, for example labour, in return for food, cash or other material incentives. Much on farm research falls in this

category, as farmers provide the fields but are not involved in the experimentation or the process of learning. It is very common to see this

called participation, yet people have no stake in prolonging activities when

the incentives end.

5.Functional

Participation

People participate by forming groups to meet predetermined objectives

related to the project, which can involve the development or promotion of

externally initiated social organization. Such involvement does not tend to be at early stages of project cycles or planning, but rather after major decisions

have been made. These institutions tend to be dependent on external initiators and facilitators, but may become self – dependent.

6.Interactive

Participation

People participate joint analysis, which leads to action plans and the

formation of new local institutions or the strengthening of existing ones. It tends to involve interdisciplinary methodologies that seek multiple perspective

and make use of systematic and structured learning processes. These groups take control over local decisions, and so people have a stake in maintaining

structures or practices.

7.Self – Mobilization People participate by taking initiatives independent of external institutions to change systems. Such self – initiated mobilization and collective action may

or may not challenge existing inequitable distributions of wealth and power.

Manipulative participation - Pretending– representatives only 1 – 4 – achievements are likely to have no positive lasting effect on people‟s lives.


12

Classification Principle

Types Classification Principle

Types

1. Degree of voluntariness

Free Participation Spontaneous included Forced Participation Legislative Force Socio economic condition Customary participation

6.Range of activities than can be influenced

Unlimited Participation Limited Participation

2. Way of Involvement

Direct Participation Indirect Participation

7.Degree of effectiveness

Effective Participation Complete Partial Ineffective Participation

3.Involvement in the planned development process

Complete Participation Partial Participation

8. Who is participating?

Members of the local community Local residents organized on the basis of territory Local residents organized on the basis of common interest Local leaders Government Personnel Outsiders

4.Level of organization

Organized Participation Unorganized Participation 9.Objective and

style of Participation

Participation in Locality development. Participation in Social Planning. Participation in Social Action

5.Intensity of Participatory Activities

Intensive Participation Extensive Participation

Table: Types of Participation (2)

Box: Types of Participation (3)

Manipulation and Therapy. Both are non participative.

The aim is to cure or educate the participants. Informing. A most important first step to legitimate

participation. But too frequently the emphasis is on a one way flow of information. No channel for feedback.

Consultation. Again a legitimate step – attitude surveys, neighborhood meetings and public enquiries. But Arnstein

still feels this is just a window dressing ritual.

Placation. For example, co-option of hand-picked „worthies‟ onto committees. It allows citizens to advise or

plan ad infinitum but retains for power holders the right to judge the legitimacy or feasibility of the advice.

Partnership. Power is in fact redistributed through

negotiation between citizens and power holders. Planning and decision-making responsibilities are shared e.g. through

joint committees. Delegated power. Citizens holding a clear majority of seat

on committees with delegated powers to make decisions. Public now has the power to assure accountability of the

programme to them.

Citizen Control. Have-nots handle the entire job of planning, policy making and managing a programme e.g.

neighborhood corporation with no intermediaries between it and the source of funds.


13

Advantages and disadvantages of participation to different stakeholders.

Benefits and Cost of Participation

Benefits Costs

A. National Leaders Participation can eliminate

popular resistance to decisions. Participation can increase the legitimacy of authority. Participation

can increase the speed of implementation. Via

participation benefits of projects can be more

directed towards the ‟felt needs‟ of the

population. Via participation it is possible to

mobilize more resources. Via participation it is possible to decrease the level of conflict.

A. National Leaders Participation can lead to

curtailment of power of leaders. As a result of participation the level of conflict in a society may

increase. As a result participation decisions are

forced less on the basis of technical criteria than on basis of misinformation and prejudices of the messes

Participation can delay (due to internal conflicts) the decision process concerning projects and office

programs of importance for staying in office for

political leaders.

B. Planners and Administrators Participation

can facilitate collecting of information for planning purposes. Participation can result in

more information about present behavioral

patterns and likely information. Participation enables planners to ascertain what people desire.

Participation can give more information on available resources (such as willingness

regarding self–help projects) Participation can

help planners to plan more ambitiously and at the same more realistically. When plans prepared

in a participatory way can be implemented quickly, planner will obtain merit by their

supervisors. Participation can increase the power

position of planners and administrators versus politicians

B. Planners and administrators As a result of

participation information processing becomes more complex. Participation requires an effort on the part

of planners to present alternatives in such a way that

compromise can be made. As a result of participation decision time is lengthened. Participation can make it

more difficult to ensure uniform quality and provide central services. When participation lengthens the

planning process and creates conflict at various

levels planners will lose influence by their superiors. Participation can decrease power position based on

experience. Participation used by planners and administrators can bring them in conflict with

politicians

C. Local administrators and government agencies: Participation can increase productivity

Participation can improve levels of information

for management. Participation can reduce negative conflicts. Participation can strengthen

the legitimacy for action. Participation can increase confidence of superiors in local

administrators.

C. Local administrators and government agencies: Participation increases decision time.

Participation can lead to relative loss of personal

power and status. Participation can lead to conflicts in their area of competence. Participation will result

in loss of confidence over the local administrators by their superiors.

D. Local Elites: Participation can channel existing conflicts at the local level and therefore

stabilize their position. By obtaining position of leadership in participatory organizations they

obtain another means to safeguard their power

basis.

D. Local Elites: Participation will diminish their power. Participation costs time to attend meetings,

to vote and to inform one self about issues.

E. Individual citizens Participation has

educational effects such as

A sense of effectiveness to action and solving problems.

An increased sense of personal efficiency. Participation can create an urge for self –

reliance that mobilizes social energy that can result in a better way of life in the community of

E. Individual citizens Participation costs time to

attend meetings, to vote and to inform one self

about issues. Participation requires accepting a greater responsibility; this is often psychologically

costly in case of conflict. Participation can lead to role conflicts in certain societies and can lead to

diminishing of relative levels of security due to loosening of certain types of relationships (client –


14

the individual citizens. Participation can lead to better distribution of power among citizens.

Participation can lead to a better distribution of

effects of development among citizens. Participation can give the participating citizens

more status and power.

patron).

Core Values for the Practice of Public Participation

1. Public participation is based on the belief that those who are affected by a decision have a

right to be involved in the decision-making process.

2. Public participation includes the promise that the public's contribution will influence the

decision.

3. Public participation promotes sustainable decisions by recognizing and communicating the

needs and interests of all participants, including decision makers.

4. Public participation seeks out and facilitates the involvement of those potentially affected by

or interested in a decision.

5. Public participation seeks input from participants in designing how they participate.

6. Public participation provides participants with the information they need to participate in a

meaningful way.

7. Public participation communicates to participants how their input affected the decision.

Why participation fails?

The bulk of the citizens come into contact with civil servants at the bottom; both civil servants

and citizens at this level are inarticulate and uninfluential. The problem of citizen dissatisfaction

well as civil servants point of view at the lower levels goes unrepresented and unattended to.

Administrators & Citizens –Attitudes that affect participation

Four requisites to achieve proper citizen participation:

1. Adequate knowledge about the operation of the administration - inadequate knowledge

facilitates despotic administration- too much knowledge will interfere in administration

autonomy and pride sub–survient behavior.

2. Self-interest: Public must consider that it‘s self interest is being served by the public

bureaucracy.

3. Principle Mindedness: Administration is done by certain principles. This should be

understood.

4. Prestige: Giving adequate value & prestige toward public employment as compared with

other types of carriers. Very low & very high prestige values interfere in the administrative

Administrators Callousness, aloofness, haughtiness,

Suspicion and resentment of administrators towards citizens requests of demands

Administrators properly respond to the needs &

demands of the public Extraneous influences affecting the day to day

administration Delays in the formulation of policies -universality

of low standard of conduct in public life

Citizens Ignorance, indifference, Reluctance fear &

recrimination Sympathetic understanding of the limitations

Low percentage of enlightened citizens

High degree of parasitic dependence citizens non- interest in acquiring knowledge

about govt.


15

ability - low prestige brings about subservient administration, high prestige value – result in

despotic administration.

Importance of the role of citizens:

Citizen participation is a slow process: takes time to get consensus – to compromise –

sometimes it may look like incompetence – but it is better to have faith in democracy or

otherwise requirements of speedy development may destroy the democracy.

People‘s participation means politicization- this in the form of organized groups helps in

policy making & implementation

Nature of People’s Participation

CD Program – economic & social regeneration. PR – democratic decentralization

Constitutional Amendment to guarantee participation & representation

Social Auditing – Public hearing – Environmental Impact Analysis – Stakeholders

consultation

Promotion of Promotion of NGO‘s & Civil Society Organizations / Co- operatives

Program of worker‘s education

Creation of a large number of advisory bodies

Participation depends upon

1. Size of the country

2. Political culture and extent of social awareness

Citizen’s – Administrator’s Relationships & Participation

Development process distributes patronage & favors–enlightened approach of co-operation

between politician & administrators is needed

Non interference in day to day administration

Understanding the complex task of resolving conflicts and cooperating whenever necessary


16

Stages of participatory planning

The

Stage One

Understanding among community members

Cohesiveness

Local resource identification

Self-initiated activities (SIA) started

Some activities with community ownership

Stage Two

Understanding among community members converted into community policy

Cohesiveness over individual interest

Local resource utilization started

SIA regularized

More activities with community

ownership

Stage Three

Community policy updated

Community norms established

Local resource diversification started

SIA become a part of community

More activities with community

ownership

Stage Five

Community policy established

Strong civil society established

Local resource base established

SIA sustained

More activities with Community ownership

Stage Four

Community policy refined

Feeling of civil society consolidated

Local resource pattern consolidated

SIA replace service sectors

More activities with community ownership

1 2 3

5 4

Stages of participatory planning


17

Box: Concept of “Participation” & On Beneficiaries & Stakeholders

The concept of “Participation”

Let‟s take these two situations: A) You are an active member of your community, you are an influential leader, and have

shown a strong sense of organization. A dam will be constructed in the area, and it will affect people‟s lives in many ways, not necessarily

positively. People will be displaced, will lose agricultural land, access to the village through the main road will be cut off by water. But people will have water on an ongoing basis. The district government

sent a representative to your house to ask you for a specific action: it wants you to participate in the

project planning so you can convince the community that it is a beneficial project for them. B) You are the same person as in case A.

The district government needs to address the chronic water shortage in its area and some ideas are identified, such as possibly building a dam, digging deep boreholes, or constructing small irrigation

schemes from a nearby river. The government sent a representative to your house and asked you for a

specific action: it wants you to participate in the project planning so that the project decided upon has the support and the collaboration of the community, is feasible and can be endorsed by

the government. For reflection and discussion: 1- Is the government asking you for the same type of participation in those 2 cases? … Who will you work with in case A? & in case B?

2- What Role are you asked to play with the community in A? & in B?... how do you think you can act in

each of those roles? 3- What is the “participatory process” in case A? & in case B? What do you think the government

understands as “participation” in each of the cases? Who is in?... Who is it for?...Who is it by…?

On Beneficiaries & Stakeholders

On beneficiaries

The concept of “beneficiaries” reflect the notion that there is a „giver” and a “receiver”, in some kind of a “giving” transaction. It reduces the relations and roles to the notion that there are “recipients” of

something that the State, or NGO, will “deliver” to them (a toilet, food aid, a well, a training). Talking of “beneficiaries participation” is often a way to reflect on a consultation process with people

who will “benefit” from something, but does not take away some notion of somewhat “passive

receiving” as opposed to active “take charge” characteristic of true emancipation processes. On stakeholders

The term comes from the government and private sectors. The „stakeholder” language was meant to reflect the “inclusivity” of the State apparel and of companies thinking processes and practices.

But in reality, the “people who have a stake” in something, are the ones for whom strategies, products, programs are decided for, what will be crafted around their “needs” or the demand of the market. They

“have a say” in what is done for them. But they are not necessarily “actors” in the project. They are

“concerned” within an existing reality, project, situation, but are they actors or decision-makers? Jacques Rancier, a French philosopher, who wrote Ten Theses on Politics, refers to this as the « politics

that makes decision on the people, for the people, instead of the people” The term “stakeholder” is to the private and government sectors what the term “beneficiaries” is to a

“charity”. A Street Vendor’s reflection …. For us, street traders, being a stakeholder is a slavery term. This is because government and big business think for us, plan for us and all we are left with is to fit in their plan and do as we are told…”


18

About Projects and People’s participation:

Traditional development projects are mostly “external” , top down and needs based

interventions :

NGO, State agency, see a need, a problem, look for solutions, and identify the process which

will become a project to respond to that need.

State, donor (or both), defined a broad based strategy (program approach) and solicits or

contracts out, the identification of where this strategy will unfold and projects to be defined

within the strategy, to implementing agencies (NGOs, private sector, etc)

They are often pre-determined based on identified needs, policies, interests of

governments, NGOs and international donors, with at time input from communities

themselves (they are as a result generally seen as ―institutional‖ endeavors)

Most ―participation‖ of communities is at the stage of needs assessment, or project

identification phase, and within specific activities where sub-sections of the community will

take part.

―Participation” is more and more seen now as a MUST in view of sustainable

development: if people DON‖T participate in a project that concerns them, they will NOT

own the process, results, and assets or outcomes, whatever these may be. The project will not

have long term success, and will not likely be sustainable, when external agencies (State

extension services, NGOs, etc) leave at the end of the project.

How do we understand Participatory Approach?

Two types of approaches to participatory projects: 1) Target oriented – 2) Experiential

Approach

Characteristics

Blueprint approach

(target oriented)

Experiential (participatory) approach

(process oriented)

Goal To deliver a pre-set package of outputs (goods and services) to

specific target groups

To create positive change in a community, by way of promoting people‟s capacity to

take charge and lead their own development process

Deliverables Identified at the onset of the

project, it “lands” on the community / target group

Not identified at the onset, it “emerges”

from the community

Results

expected

Can be listed as set and

predictable outcomes, fit in a RBM framework

Unpredictable, bound to people‟s choices,

know-how, assets and action

Agency (actors)

Externally driven, people as beneficiaries brought into the

agenda/plan at some stages of the

process

Endogenous (the people themselves), with facilitation support

Community

involvement

Buy-in sought after: Varies, from

passive recipients to consultative,

to engaging: willingness of people to take part in activities

Leadership and initiative: the people

take charge, and engage with other actors

through negotiating their plans, support needed, etc

Decision

making

Generally resides externally, at

project managers level

Resides within the community, based on

consensus or interests of collective groups

Role of NGO Direction and operational,

managerial

Facilitation , negotiation, and bridging

what emerges from the community to the outside world


19

Methodology Project Life Cycle; RBM, Project management (scope, time, cost, HR,

risk, etc). Managerial

Participatory planning, Appreciative inquiry, ABCD, PRA, RRA, etc. Interactive

Concept, Meaning, Types of development projects.

As in the case of all definitions, the term program /project has a variety of meaning.

Definition of a project

1. Programs / Projects are tools to achieve the plan goals.

E.g. Plan goal – Removal of poverty. Plan tool – IRDP, JRY, TRYSEM etc.

2. A project is an investment of resources in a package of interrelated time found activities. Thus

a project becomes a time found task. A Project should have definite beginning and an end.

3. A project can be defined as a scientifically evolved work plan devised to achieve specific

objectives within a specific period of time.

4. An activity (or, usually, a number of related activities) carried out according to a plan in order

to achieve a definite objective within a certain time and which will cease when the objective is

achieved.

5. A collection of linked activities, carried out in an organized manner, with a clearly defined

start point and end point to achieve some specific results desired to satisfy some clearly defined

objectives.

6. A group of activities that have to be performed in a logical sequence to meet pre-set objectives

outlined by the client.

7. A project is a temporary endeavor involving a connected sequence of activities and a range of

resources, which is designed to achieve a specific and unique outcome and which operates within

time, cost and quality constraints and which is often used to introduce change.

Categories of projects

Categories of projects

Based on levels

Centralized

Decentralized

Partially decentralized

Based on time

Normal

Crash Pilot

Disaster

Based on the purpose

Experimental

Production / Service.


20

Box: Stages in Participatory Learning (1) & Types of Project Planning (2)

1

2


21

Project objectives define target status at

the end of the project, reaching of which is

considered necessary for the achievement of planned benefits. They can be formulated as

S.M.A.R.T. • Specific,

• Measurable (or at least evaluable)

achievement, • Achievable (recently Acceptable is used

regularly as well), • Realistic and

• Time terminated (bounded). The evaluation (measurement) occurs at the

project closure.

However a continuous guard on the project progress should be kept by monitoring and

evaluating

Unit II

Project Management Methodology

Where does it come from?

The most widely accepted and used methodology on Project Management has been designed by

the Project Management Institute (PMI), a professional organization of 30,000 project

management professionals. It has drawn a widely recognized methodology called the Project

Management Body of Knowledge (PMBoK). Some elements of this methodology will be used

here as the foundation of the conceptual framework on Project Management.

Project management is a discipline that has evolved into very specific and detailed processes

mostly adopted to meet the systems needs for complex situations, and to integrate multiple

disciplines. Highly technical sectors (Aerospace and Defense) and government sector originally

started using Project management systems systematically in the 1940s. The private sector, in

high technology sub-sectors (construction, engineering, computers and electronics) started

adopting Project Management systems in the 1960s.

The informal sector and social services started later to recognize the value and use Project

management concepts and techniques for project

planning and implementation. Many concepts have

relevance to any sector and are useful to help

organize human activity that aims at creating a

product, a service or effecting a change. But the

―participation‖ notion, earmarked by social

science, is not mainstreamed in Project

management as we understand it. We will attempt

to integrate better the notion of participation into

the project management principles and the project

cycle.

Project Management is the application of

knowledge, skills, tools, and techniques to project

activities to meet the project requirements.

It boils down to a set of technical parameters,

clusters of processes and steps in view of achieving a result. It is comprised of tasks and

activities, grouped in phases under what is identified as ―Project Life Cycle‖. Each phase

completion is assessed before moving to the next phase. The project management process

includes properly ‗closing‘ the project.

UNIT II Steps in Participatory Project / Programme Planning. Identification of needs –Determining priorities – Assessing feasibility – Specifying goals and objectives – Identifying preferred solution – Preparing Action Plan. Using appropriate PRA/PLA tools in each step.

http://en.wikipedia.org/wiki/SMART_%28project_management%29


22

Purpose of participatory planning

The purpose of participatory planning is to create a platform for learning rather than plunging

directly into problem solving. The process is expected to enhance

(1) Identification of the felt needs of the people

(2) Bringing forth consensus

(3) The empowerment of local disadvantaged groups

(4) Integration of local knowledge systems into project design

(5) Two‐way learning process between the project and local people

(6) Political commitment and support

(7) Accountability in local governance

Salient features

The planning process should produce two sets of results:

1. In the short term, the tools of participatory planning should generate a two‐way learning

process, which will shape project interventions to local needs, opportunities and constraints.

2. In the long term, this learning process should lead to local empowerment and effective

support at the institutional level.

These are considered preconditions for strengthening both institutional capacity for decentralized

planning and local planning capacity.

Defining Terminology:

Understanding Project vs Program vs Operations

Project Program Operations

Tim

e-

Lin

e

Limited in time with a

beginning and an end

Spread over a large

timeframe, longer than project

Ongoing, daily and unbound in time

limits

Ob

jecti

ve

s

One Objective,

specific set of limited activities

A wide range of activities

regrouped under large scale strategies

Multiple Objectives, regular

maintenance and operating activities related to core business of the

organization

Pu

rpo

se

Aimed at creating a change, a specific

service, product or output

Aimed at creating sustainable response to

systemic & underlying causes of a problem/issue

Aimed at maintaining and growing the organization, realizing the

mission and mandate through structural organizing

Hu

ma

n

Re

so

urc

es Project team (temporary) Program team ( as

projects but longer,

broader role)

Permanent staff (assigned to core work of the organization)

Dyn

am

ism

Quite stable once plan is

defined, adopts a course until its termination

phase: changes only in

project parameters

Evolve in substantive

ways over time based on changes in the

environment

Adapts to strategically respond to

changing environment and technology


23

Me

asu

rem

en

t o

f

Su

cce

ss Success is measured by

completion of phases and

attainment of the

objective

Success is measured in the long term, on

progress noted in impacts

sought after long period of implementation

Success is measured by assessment of organization‟s progress, reports on

ongoing operations

Steps in participatory planning in Local Governance (Model I)

(Steps followed in Kerala’s State wise People’s Planning Program

1. Conduct focus group / gram sabha meeting to identify the needs of the people

Mobilization of people

Adopting small group approach

Preparation of a model agenda for focus group / gram sabha

Adopt a semi‐structured questionnaire approach derived from the PRA techniques for

discussions

2. Assessment of the local resources and problems and accordingly formulate development

reports

Generate a comprehensive database for every locality for local level planning

Identification of significant ecological variations in the village through RRA and PRA

Preparation of development reports that includes the information about the local economic,

social, geographical and human resources information

3. Preparation of project proposals through specific task forces

Preparation of a common project format that clearly defines the objectives, beneficiaries,

activities, organizations involved, financial analysis, assessment and monitoring

arrangements

4. Formulation of local plans by the people /elected bodies

Choice of the projects and programmes to be included in the annual plans

Design the structure of plan document and the procedures for its adoption by the decision

makers

Adoption of resolution by the elected representatives of the local bodies that enunciates the

inter‐sectoral and the intra‐sectoral priorities

5. Formulation of plans at the higher levels

Higher levels have to coordinate, integrate, and fill in gaps of the local plans

Integration of local level plans with the block or district level plans

6. Appraisal and approval of plans by an expert committee

General phases of a project. (Model II)

1. Conception phase

2. Definition phase

3. Planning and organizing people

4. Implementation phase

5. Project clean up phase

The above phases won‘t follow a sequence … rather they overlap; sometimes this overlapping is

done deliberately in the interest of compressing the overall project schedule. There are others

who would encourage natural growth.


24

Project management’s processes (Model III)

There are 5 “process groups” in project management, which are in summary the

steps or phases that need to be happening in the life of a project:

Initiating processes, which involve recognizing that a project or phase of a project should

begin and making a commitment to start;

Planning processes, which involve development of a workable scheme to achieve the goals

for which the project was undertaken; Defines and refines objectives, and plans the course of

action required to attain the objectives and scope of the project

Executing processes, which involve coordinating the step by step activities, the resources,

including human resources, required in the plan; Integrates people and other resources to

carry out the project management plan as designed

Monitoring and Controlling processes, which involve monitoring project progress and

taking corrective action, if needed; regularly measures and monitors progress to identify

variances from the project management plan so that corrective action can be taken when

necessary to meet project objectives

Closing processes, which involve bringing the project to an orderly and formal conclusion;

Formalizes acceptance of the product, service or result and brings the project or a project

phase to an end.

Processes Sequence (Model IV)

Processes Dynamics:

Project Management’s Knowledge areas

There are 9 “knowledge areas” recognized in project Management: those areas all integrate in

any project; they all have to be taken into account in the design of the project though they don‘t

necessarily have the same weight in each and every project:

Scope management—―the processes required to ensure that the project includes all the work

required, and only the work required;‖

Time management—―the processes required to ensure timely completion of the project;‖

PSA/JGV, 1997.

The Process Groups:

Initiate

Plan

ExecuteControl

Close-

out


25

cost management—―the processes required to ensure that the project is completed within the

approved budget;‖

Quality management—―the processes required to ensure that the project will satisfy the

needs for which it was undertaken;‖

Human resource management—―the processes required to make the most effective use of

the people involved with the project;‖

Communications management—―the processes required to ensure timely and appropriate

collection, dissemination, and storage of project information;‖

Risk management—―the processes concerned with identifying, analyzing, and responding

to project risk;‖

Procurement management—―the processes required to acquire goods and services for the

project implementation;‖

Integration management—―the processes required to ensure that the various elements of

the project are properly coordinated.‖

Project’s Life Cycle (PLC)

The term ―project life cycle‖ is used to refer to the totality of the various phases into which a

project is divided.

Each project phase involves completion of one or more deliverables, which are tangible and

verifiable outputs of a process (a design, a output, a set of recommendations, and so on).

Each phase also concludes with a review so that errors may be detected and corrected and so that

it can be determined whether the project should continue on to the next phase.

The Project’s Life Cycle (PLC) phases: (Model V):

Initiation Phase – ―someone recognizes an opportunity to be gained or a problem to be

resolved‖

Planning Phase—the project‘s case and the detailed project plan are created;

Design Phase—further definition of the need being met and description of the technical

aspects, step by step activities and tasks to be done to reach the objective;

Implementation Phase—the execution of the project plan, the unfolding of the various steps

of the project until completion.

Evaluation Phase—determining how well the project realization met the project objective

and how well the project was managed.

INITIATE

PLAN

DESIGN

IMPLEMENT

EVALUATE


26

Participatory development philosophies and approaches

Background to Participatory approaches

The concept of ―Participation‖ applied to development work, arose in the 1970‘s , inspired by

Paulo Freire‘s philosophy and activist movement, based on the fundamental recognition that

poor and disempowered people, and marginalized communities, abound with knowledge ,

creativity and capacities that are not recognized or valued by dominant research and

development practices.

Participation of the people in “participatory research”, in its original manifestation, intended to

stimulate through dialogue and positive conversations, the awareness of that knowledge and

capacity, and through it, the emergence of existing creativity leading to action. It was meant, in

other words, to bring ―power‖ back to the people and encourage their own ―take charge‖

attitude.

In that context and along that philosophy, ultimately, the agenda for development would be

driven by the people themselves, and the agencies or any outsiders claiming to support the

development process (researchers, NGOs, extension workers, etc) would in fact be acting as

Facilitators of this process in the community.

The concept of participatory research and how it was applied was mostly in a perspective of

social activism and in view of political action to benefit the under privileged, the marginalized

and the poor people.

In the years that followed, the notion that any development and social research process can

benefit from being participatory, came about in the area of Applied Anthropology where research

methods focused on valuing more the local knowledge and culture, the understanding of people‘s

behaviours and attitudes through taking the time to observe, engage and establish a rapport,

rather than acting as ―collectors of information‖.

In the 1970s and 80s, the concept of participatory approaches evolved along those lines, as

approaches to involve communities, create profound links between ―outsiders‖ knowledge and

peoples lived realities , support the need to build awareness on and about the rich indigenous

knowledge and experience, and support the process of analysis by people themselves and self-

driven development action. It moved from the attitude that we need to ―change‖ people, to the

attitude that change can happen without being ―prescribed from the outside‖ but rather,

stimulated within communities through real engagement, conversations, dialogue and

stimulating facilitation.

Principles of Participation

Key principles of participation have been named (Egger and Majeres, 1998) as:

Inclusion; of all people, groups, representative, affected by a project

Equal partnership; everyone brings capacity, equal right, skills to the process

Transparency; climate of open communication and building dialogue

Sharing power; avoid the domination of one group over the other,

Sharing responsibility; all have equal responsibility for outcomes and decision

Empowerment; encouragement of people with skills to apply them, mutual reinforcement and


27

promotion of what exists in people to be used for the project

Cooperation; operating together, ―sharing everyone‘s strength reduces everybody‘s weakness‖

Some of the key Participatory Approaches

Rapid Rural Appraisal (RRA)

Emerged in 1993 (Robert Chambers) –Institute if Development Studies, UK- as a result of

growing concerns with the use of formal surveys and the technocratic approach to field

assessments and visits. Realizing that these approaches were not always relevant to the

development objectives and achievements, RRA was designed as a “reversal of learning”.

RRA means:

Rural people look at and assess their own problems, spell out their own issues;

People themselves set their own goals

They define their plan for action based on their chosen objectives

They monitor their own achievements

RRA has been applied to rural livelihoods, health, nutrition, emergencies and disasters, water,

food production and is used intensely in marketing systems. RRA uses a range of simple

techniques to gather a summary picture of a community‘s situation, issues, problems and path to

improvement. It can be used for research, for project decision, for programming directions, for

needs assessment among others, but mostly as a basis for project planning. It is shorter than

traditional social research methods (weeks instead of months or years), it is cheaper, and targeted

(using sampling that are of high relevance). For instance, relying on multidisciplinary teams

rather than individuals.

RRA techniques

Interview of individual, household, and key informants in and around the community

Methods of cross-checking information from different sources (triangulation)

Sampling techniques that ensure quick access to result and information, adapted to an objective

Group interview techniques, including focus-group interviewing

Collection of quantitative data directly and by many means

Direct observation of physical site, set-up, environment, infrastructure, behaviors, etc.

Participatory Rural Appraisal (PRA)

Participatory Rural Appraisal (PRA)‘ and ‗Participatory Learning and Action‘ (PLA) grew out of

RRA, and is comparable in many aspects. But with PRA, the information collection and its

interpretation reside with the community itself, with outsiders playing the role of

facilitators instead of instigators, or “extractors’ of information. PRA is meant to be a

―shared learning‖ approach, where each of the people and the outsiders learn, and inform. The

Chambers cites the main biases of rural development tourism as being: spatial (urban-tarmac-and-roadside

biases, that is going only to easily accessible places), project (neglecting non-project areas), personal

contact (meeting the less poor and more powerful rural people, men rather than women, users of services rather than non-users, and so on), dry season (travelling in the post-harvest or post-rainy season, when it

is easier) and politeness-and-protocol bias (lack of courtesy and convention, lack of adaptation to local conditions, shortage of time, etc.). Source: Cited on the FAO website, www.fao.org


28

PRA approach is used at multiple stages and for multiple functions, not only for ―needs

assessment‖ of project identification phase. PRA techniques serve well to a wide range of

situations. The main principles are respect, capacity to listen and learn without prejudice,

accepting to step back and work as a catalyst in the facilitators‘ role, letting the people lead and

decide on the directions they want to take. It is also useful as a means for monitoring and

evaluation. The approach started to be used in rural settings but has also been used in urban

settings. It is an approach for shared learning between local people and outsiders. Though there

are many possible tools within PRA, it is recommended to use the more ―neutral‖ tools first,

while working to establish a solid rapport and trust with the community, then to use tools that the

community would have some reluctance in sharing information about, such as wealth ranking,

livelihoods revenues, etc.

Fundamental principles of PRA

PRA uses multiple techniques as well, but fundamental principles of PRA consist of:

Participation:

The full participation of people from the community is essential not only as a means to getting

information but as the ground on which the process of development is understood and exercised

as a collective process, with responsibilities and rights of involvement for everyone.

Flexibility:

Though many techniques and methods can be proposed in PRA, it is not a blueprint approach

and those using PRA will benefit from adapting and choosing methods that suit the context and

purposes. PRA, as RRA, is tied to a philosophy and a mode of operating in relation to

community participation, rather than a ―recipe‖ to use as a set of mechanical steps.

Team work:

The value of a multi-disciplinary team, including local people who have a good knowledge of the

area‘s condition and situation, people presenting diverse interests and occupation, age groups,

skills sets. This will allow to see the same things from different perspectives and viewpoints. The

facilitator‘s role is vital as it will require sometimes to challenge cultural patterns that may be

excluding people, challenge the ways people communicate, and similar realities that will require

sensitive facilitation.

Triangulation:

The accuracy of information and its relative value can be obtained or ensured by a process of

cross-checking the same information from at least 3 sources. This is to ensure the reliability of

data collected.

Optimal ignorance:

The idea is that not all information and data is relevant, and there needs to be an exercise done to

sort out what is the important and relevant information, and to limit the PRA exercise to that

scope.

Some PRA tools

Planned meetings with open agendas (transparent process)

Semi-structured interviewing

Mapping and modeling

Preference listing and ranking

Focus group discussions

Transect walk


29

Seasonal diagramming (historical)

Dia & Box: PRA Tools for various phases & purposes

Action /Implementing

Action Planning

Nominal Group Technique

Deciding

Card Technique

Interrelationship Diagrams

Stakeholder’s Workshops

Exploring

Brain storming

Cause effect Diagrams

Mind Mapping

Visioning

Social & Resource mapping

Semi structured Interviews

Seasonal Diagrams

mapping

Analyzing Venn Diagrams

Historical Analysis SWOT Analysis

Force Field Analysis

Matrix Analysis

Wealth Ranking

Priority Ranking

Experience

Re

flectio

ns

Conceptualization

Ex

pe

rime

nta

tion

PRA tools for many purposes: Gaining ideas •Brainstorming can be applied to gain as many ideas as possible without getting caught up in detailed discussion. Organizing and ranking ideas, factors, issues •Cause and effect mapping can be used to brainstorm on and organize causes for a particular problem •Card techniques are an easy way to cluster, organize and rank information. •The Delphi technique can be used to categorize ideas, issues or questions with a group •Mind mapping is a good exploring tool to cluster similar ideas and see links. •With Nominal group techniques you enable a group to quickly develop a ranked list of problems, issues or actions


30

Analyzing factors, steps, relationships •A conceptual model is a diagram of a set of relationships between certain factors that are believed to impact or lead to a target condition. •With flow diagrams you can map out steps that need to be taken and the factors that need to be taken into account •Force Field analysis is a tool for systematically analyzing the driving and restraining forces in a situation •Interrelationship diagrams are used to examine if factors are caused by or a cause of the other factor, and to show relations between factors with arrows. •Issue analysis is identification of major issues that have been raised from a range of other tools (focus groups, semi-structured interviews) and grouping these into major themes. •Matrix analysis can be used for ranking the value of a particular activity or item according to a range of criteria •SWOT is the identification of Strengths, Weaknesses, Opportunities and Threats Collecting information •Focus groups discussions take place with a small group of selected people to collect information about an issue. •With historical narratives you can create personal testimonies of past events and conditions. •Questionnaires and surveys are a structured way to gather quantitative information. •By semi-structured interviewing we mean guided conversations where broad questions are asked and new questions are allowed to arise as result of discussion. Participatory learning tools •With historical analysis you create a table with dates and topics which can be filled in with a group to create understanding about history and background. •Locality mapping is drawing on the knowledge of local people to develop a map of the local area. •A timeline is a widely used participatory tool to understand a kind of history of a community •A time trend helps to understand and analyze the fluctuation situation of development progress and their reasons during a certain time interval. •An empowerment circle aims to generate information from stakeholders about the progress of their empowerment situation after project intervention. •With institutional linkage or Venn diagrams you can visualize institutions and organizations and their influence for example. •Rich picturing is a kind of group work (4-8 persons) to visualize a situation on a large sheet of paper with symbols, pictures and words. Planning •Visioning is a nice tool to let people think about and describe how they would like things to be in the future Action plans are tables with tasks, resources, due date and responsible persons


31

Asset-based approaches

Appreciative Inquiry

Appreciative Inquiry emerged in 1990 (David Cooperrider, Case Western Reserve University) as

a response to the disempowerment that needs-based approach to communities create. In the years

following the adoption and development of participatory approaches, there had been more and

more attention paid to local knowledge, local strengths, assets, institutions and skills.

Appreciative inquiry turns the lens on valuing the skills that exist in people (helping them to

recognize them); the conditions and factors that trigger success among individuals and groups;

helping identify and build on individual and collective group capacities; and on mobilising

resources from within (harvesting first what is there, before seeking resources outside), to

achieve the ‗dream‖. It leads to the building up of community action plans, through a process of

positive inquiry and stimulus.

Appreciative inquiry builds on the ―4 D‘s‖ steps:

Discovery: recognizing and appreciating what exists and gives value to a community, a group ,

in its human experience, history, practices, resources, assets and people.

Dream: envisioning and looking at possible impact: what might be, creating a positive image of

a preferred future?

Design: constructing and developing together what is needed to attain the dream, starting with

what exists, and moving to what needs to be created to reach the ideal; a process of deeper

analysis, inquiry, consensus and negotiations.

Delivery: making it happen and sustaining it: how to empower, learn, assess achievements and

directions, adjust, build capacity as required, and sustain.

Participatory Learning and Action (PLA)

With the emphasis on learning defined as a result of “self-development through experience’

rather than the result of formal teaching, participatory learning and Action proposes

approaches, methodologies and tools around the principle of guiding self-development, both with

individuals and groups. The vision in this approach is that people themselves, when guided and

facilitated properly, are more likely to come up with appropriate solutions to problems and

issues. The PLA approach wants to help bring out people’s capacity to identify what needs to

be done, to prioritize, to organize and take action. Outsiders can help in facilitation of the

process but not with providing the answers and making the decisions. They can also play a

catalyst role, and a linking role, where groups identify a need for external resources or expertise.

Appreciative Participatory Planning and Action

Appreciative Participatory Planning and Action (APPA) combine the framework of

Appreciative Inquiry and the tools of Participatory Learning and Action (PLA). Its

objective is to find and emphasise the positive, successes and strengths as a means to empower

communities, groups and organisations to plan and manage development and conservation.

Asset-based Community development (ABCD)

The principles of Asset-based Community development, articulated by Jody Kretzmann and John

McKnight (in ―Building Communities from the Inside Out‖) rest on the recognition that many


32

successful community-driven initiatives have taken place with limited outside intervention.

These endogenous activities seem to take place through self-guided leadership, with citizens

rather than institutions at the centre of the development activity, and in communities that

are able to recognize and use their strengths, skills, capacities, social, financial and human

capital, as the building blocks of their own development. They are successful, on their own

merit, and get support from external agencies that play a catalyst and bridging role, helping to

facilitate and resource the community process rather than drive it.

ABCD has been called a philosophy, an approach, a method, a tool, and it is a bit of all but

nothing static. ABCD is grounded on the philosophical principle of communities, groups, people,

being ―in charge‖, making decisions and drawing action plans to improve their life. It uses a

range of methods and tools that are also used in PRA, PLA and CA approaches, and in some

cases, adapts existing tools to better suits the local context. The Coady International Institute

has been an important proponent of ABCD around the world, and has translated it into a

practical experience in Ethiopia, in partnership with Oxfam Canada, since 2003.

The Capability Approach (CA)

The Capability Approach was developed by Amartya Sen (―Development as Freedom, New

York:Knopf, 1999) to help conceive and share the principles of a foundation for human

development that includes ―participation, human well-being and freedom as central features of

development‖

In this approach, Sen clearly spells out that economic growth is the means of human well-

being rather than the end, as the traditional economic growth approach tends to believe and

promote; and that development work should expand people‘s capabilities and freedoms to

achieve what they value.

In this approach as well, people are active participants and agents of their own development. The

approach considers differences of values, positions, in groups. It includes tools to bring

awareness to disparities (race, gender, age, class and others) between people, communities and

nations. It is grounded on the belief that people cannot get to emancipation if subjected to other

external forces to make decisions for them, and that the process of community empowerment

resides with people gaining confidence, capacity and will remove themselves from

“unfreedoms”. In this approach, participation is put ―at the centre of development‖.

Different twists to the definition of Participation:

Participation implies “empowering people to

mobilize their own capacities, be social actors,

rather than passive subjects, manage the resources, make decisions. And control the

activities that affect their lives” Cernia, 1985

“Participation is the process through which

stakeholders influence and share control over

priority setting, policy-making, resource allocations and access to public goods and

services.” The World Bank

How are these 2 definitions different?

Reflecting on your experience:

Think of an experience you had, where you attempted to be participatory and inclusive in developing a project (in an organization or in a community), but the result was not very successful, or not up to

your expectations. a. What happened? What type of participation (see 7 types above) do you think you were using?

b. Why did it not work as you expected?

c. What are the major obstacles you have experienced in trying to use participatory approaches? d. What do you think we should do in a similar situation to achieve expectations and obtained a

well defined project?


33

Classification of PRA tools:

.

Matching the Different PRA Tools for Each Step in the Project Cycle

Alternative technologies or

methods like micro-finance,

sustainable agriculture, alternative medicine,

cooperatives, indigenous

forest management, appropriate

technologies for livelihoods, etc.

Strengths,

weaknessess, opportunities and threats (SWOT)

analysis, community

action plans, problem tree, objective

tree, Gantt chart, organizational chart, budget

Project cycle stages

Matching the Different PRA Tools for Each Step in the Project Cycle

1. Awareness Raising of the

Problems

Street theatre, consultations, focus-group discussions,

consultations, reporting the results of a

previous study

Data-gathering tools such as stakeholders'

analysis, wealth ranking, census

mapping, timelines, story

with a gap, demographic

profiles, seasonal calendars, Venn

diagrams, transect, etc.

2. Project Formulation

3. Project Planning

4. Resource Mobilization

Consultations where the PRA

reports are presented to justify need for support

from external agencies &

from community contribution

5. Project

Implementation

6. Monitoring

& evaluation

Gantt charts, focus-group discussions, community

based monitoring

tools based on the

data-gathering PRA tools,

other scales built for M&E,

reflection sessions


34

Goals of Participatory Process

Ravetz, (1997) states ‗policies for managing sustainability will be effective only if they have

the moral support of the great mass of people‘. This suggests that participatory processes

should be used as a way to democratize science and empower citizens. Others see it more as a

way to inform policy making and as advising in decision-making processes.

Van Asselt et al, (2001) describe four possible goals of participatory processes:

Mapping out diversity – ways to discover the diversity of opinion on a subject or test

reactions to a strategy in a contained environment

Reaching consensus – methods that seek to define one option or decision

Democratization – methods that enable participants to use their own knowledge and

experience to create options for tackling (policy) issues that directly concern them. Advising – methods which are used to reveal stakeholders knowledge, values and ideas that are

relevant to the process of decision-making

The figure below gives a categorization of participatory

methods (van Asselt et al (2001)). This focuses on participation

imposed by scientists. The upper

left quadrant is empty as these techniques are more associated with participatory processes organized by stakeholders

themselves. The position of the techniques as the goals may be

defined differently by different users.

Stakeholders each have different information and perceptions of an

issue. In looking a the impact of climate change in an area and how

people might adapt local people

have valuable knowledge about the locality, the history, who are the

most vulnerable and how they have coped in the past. Scientific knowledge is needed e.g. in the case of arsenic contamination in

Bangladesh. Scientific techniques were required to identify the problems and knowledge of the geology of the land but it was human factors that made the problem. Understanding these human

factors, and lay people‟s perceptions of the problem, will lead to the solution.

Glicken, identifies 3 types of information: Cognitive: based on technical expertise, presented by scientists in factual arguments about issues

such as the extent of damage, methodologies

Experiential: based on personal experience and common sense

Values-based: based on perceptions of social value, moral codes, the „goodness‟ of a particular

activity The process of stakeholder participation does not substitute lay knowledge for scientific knowledge

but uses them differently. Citizens, interest groups and business, for example, are participants who

express values, preferences and contribute to the non-scientific knowledge. Representatives of governmental institutions and scientific experts are not always actively involved in the process. Their

roles differ according to the techniques used. For example by providing information via a report or testimony or being actively involved in the discussions as full participants.

De

mo

cratiza

tion

Ad

visin

g

Participatory

Planning

Consensus

Conferences

Participatory

Modeling

Citizen Juries

Focus Groups

Scenario Analysis

Policy Exercise

Mapping out

Reaching Consensus


35

Unit III

Professional Management of Projects/Programs.

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

Unit III Administration of the Project. Concept, Professional management Techniques to promote participation. Stakeholder Analysis - Force field analysis - SWOT Analysis – PERT & CPM, Logical Framework Analysis Also relevant to UNIT-II Introduction to Social Entrepreneurship Professional Management for social enterprises -Meaning, Need and its Importance Approaches to Professional Management


36

b. Speed

c. Quality

d. Stability

e. Aesthetic or rhythmical approach.

5. Professional Management in consistent in its results.

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.


37

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


38

bodies or in private firms who are asked to advise administrators or managers on the question of

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.

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.


39

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.


40

UNIT IV

The importance of finance in development

Of all the resources required for a Voluntary organization /NGO /NPO/Social Enterprises,

resources in the form of ‗money‘ is the most important one. Without this resource we cannot

activate the other resources in the agency / community. In the market oriented economy like

ours, it is the monetary resource, which determines the expansion or contraction of other

resources. The success of any NGO / community organization agency lies in its ability to raise

enough funds (monetary resources), or to convert other resources in such a way that it can be

exchanged for the money, or to plan its activities into fundable projects.

In the earlier days when ‗Alms Giving‘ and charity was held a high and respected place, the

persons who were concerned with community affairs, were able to collect the necessary funds

from the wealthy people. But at present the motives behind giving charity as well as the

dimensions of the community problems have drastically changed.

The resultant effect is that the resources are drying. At the same time more and more money is

required for welfare services of meeting the changing needs and adopting better methods of

helping the people. To get over this crisis, either the state aid is to increase or the agencies have

to depend largely upon the community‘s support. It is not possible to step up the aid from the

Government. This necessitates a change in our outlook and we should think of more suitable

ways and means of raising money from the public.

Fund Raising /Mobilization - Explanation:

Fund- Literally means a sum of money on which some enterprise is founded or expense

supported.

Mobilize / Raise- Means to bring about or to get.

Campaign- Means an organized and intensified series of operations in the advocacy of some

cause or object.

Fund Raising- Means obtaining the requisite funds for the operation of a voluntary agency.

Sources of funds

Government:

The major type of support extended by the Govt. to the voluntary agencies is in the form of

Grants – in – Aid. Grants – in – Aid is a sum of money assigned by a higher to a lower authority either out of the former exchequer or out of the revenue source specially designed for the purpose. (E.g.

Subsidy, Concession, Material incentive, Staff deputation)

UNIT IV Financial Management of the Project. Preparation of Budget. Financial Management tools to improve the transparency and efficient utilization of resources. Statutory rules and regulations related to Auditing, IT regulations and FCRA procedures.

Also in UNIT-111 of Introduction to Social Entrepreneurship

Mobilizing and managing capital for social enterprises. Aid Agencies –Government, Private, Corporate and Community Support. Venture capital for social enterprises. Financial Accountability. Methods to enforce accountability - Auditing and submitting returns. Foreign Contribution Regulation Act and other relevant procedures.


41

A system of centralized, partially decentralized and decentralized pattern of Grants-in- Aid

system evolved to support the voluntary agencies.

-Centralized – CSWB – directly distributing the grants

-Partially decentralized – CSWB giving it to SSWB and then to voluntary agencies.

-Decentralized – CSWB themselves grant it.

Types of Grants:

*One Year Grant *Plan Period Grant *Maintenance Grant*Development Grant*Non recurring /

Capital Grant *Discretionary Grant *Grants for Innovative and Experimental

Projects*Administrative Grant *Grants for Meeting Deficit *Grants for Appointing Staff

Conditions for getting Grants – in – Aid

Registration

Three year existence

Well established memorandum and bye – laws.

Paid / volunteer work with will established working condition.

Annual report submission and audited statement of accounts.

Submission of detailed project proposal.

Accepting the powers of Grant – giving agency.

Private / Voluntary Sources:

Private / Voluntary Sources consists of

Subscriptions

Donations

Sponsorship

Creating endowments /fixed deposits and getting interest from it

Service fees

Sponsorship

Paid ‗Solicitors‘ campaign

Collection by organizing premier shows

Collection of leftover food from hotels / second hand clothes / newspaper

Contributions / Collections (Hundial)

Problems in raising funds for VAs/NGOs /NPOs/ Social Enterprises

Problems in raising funds

Problems related

to sources

Problems related Voluntary Agencies

a. Voluntary Agencies want only cash b. Voluntary Agencies poor and limited contact with the prospective donars

a. Donors dictate the terms b. Donors specification to sources c. Donors using it for their political advantage d. Weakening of the religious sources e. New sources are not tapped

Problems related to the functioning of Voluntary agencies

a. Absence of proper public relations b. Poor staff morale and out moded working pattern c. Misuse & misappropriation of funds d. Lack of credibility among public


42

Other Problems identified are:

With the high cost of living, people have little money to donate

There is no co-ordination between the agencies located in an area. Several agencies

approaching one and the same person for collecting money for the same purpose.

Industrialists and businessmen find it more profitable to invest money in political fields to get

more advantages rather than donating money to charitable institutions.

The various agencies engaged in providing grants – in – aid programs appears to be gaining

more and more hold on the institutions through its rules and regulations for utilization grants.

Donors often do not have any idea about the standing of an agency. No systematic attempts

made by the agencies so that prospective donors‘ maybe prompted to contribute resources

through them.

Keeping in view the virtues of voluntary agencies (human touch, dedication, flexibility, nearness

to the community) and the problems faced by them in raising enough funds to carry out their

programs, it was decided to support the voluntary organizations with necessary funds in the form

of grants –in – aid. Grants – in – Aid was also not a new concept in the past. It was

discretionary and sporadic in nature. Govt. decided to make it as a permanent feature, that too

not through a govt. department but through an autonomous body.

Fundraising Campaign –I

To collect funds from regular sources such as getting grants from the government, subscriptions,

creating endowments, fees, and interest from endowments one need not resort to campaign

tactics, If the agency wants to tap from sources other than regular, say it form public, it has to

organize a fund raising campaign.

A fund raising campaign is a highly organized undertaking. Fund raising campaign is based on

five general principles.

1. Skilled planning and direction

2. Compilation, efficient distribution and constant control of a sufficient number of prospect

cards (i.e. appeals)

3. Organized use of large number of volunteer solicitors (canvassers)

4. The largest amount of publicity

5. A short and specific period to complete the work.

Planning the Campaign Preparing the Budget Preparing a list of

Patrons

Forming a fund raising

committee[FRC]

Selecting volunteers

Amount required Enlist their support Prepare a prospect Orientation training

Cost of fund raising

campaign [FRC]

Ask them to appeal Determine the strategy

i.e. Methods & Duration

Assignment of quotas

and prospect cards

Campaign supplies Solicitation of Prospects /Collecting fund

Review meeting /Dealing with Campaign Crises

Big Gifts Receiving / Recording / Auditing Sundry Collection

Campaign mop up / Dinner / Award / Appreciation

Evaluation of the Campaign


43

Methods of Collection

1. Mere collection methods Paid solicitors, campaign sponsorship program. Collection

at religious / ceremonial gathering Hundi / Musti Dan /

Birthday / Auspices day.

2.Partly Beneficial Methods Organizing premier shows. Publishing calendars / diaries

etc. Organizing lectures and demonstrations / exhibition

3. Wealth from waste Organizing matches

4. Lottery Method Collection and sale of old news paper arrangements for

utilization of left over foods in canteens / restaurants /

marriage parties.

Community Chest / United Fund / Joint Budgeting / Federated Financial Campaign

Fund raising is not an easy task. It requires the services of trained and experienced personals.

The agency has to spend a lot of time in collecting funds relegating its regular services. Even if

the agency can spare time and personals, there is no guarantee that the public will make positive

response. The prospective donor may also irritated, if too many organizations appeal to them

for funds. At times, the cost of the campaign may exceed the collections made during the

campaign. So, to solve the problems connected with the individual agency‘s attempt to raise

funds, innovative methods are being adopted. These methods are variously called as community

chest / joint budgeting, united fund / federated financial campaign etc. The main feature of these

methods is to raise funds collectively and appropriates it on the basis of already agreed upon

terms and priorities.

Community Chest:

The idea of community chest was first conceived in 1913 in Cleveland USA. A community chest

is a co-operative organization of citizens interested in fund raising for welfare work and

voluntary agencies needing the communities‘ financial support. Its main functions is to raise

money through the community and distribute it according to a systematic budget procedure and

to ensure more co-operative planning, co-ordination and administration of the community‘s

social welfare services. Community chest is not an adhoc organization, but a permanent agency

to raise funds for continuing services.

Fund raising through international agencies. See FCRA regulations

FUNDRAISING - II

Many community organisations need to raise funds to be able to continue their work in the

community or to carry out special projects. Seeking funding is one of the most important tasks

facing these organisations. For a number of them it‘s also a difficult task.

This material will give some tips on how to go about successfully raising funds, from how to

create a fundraising plan through to completing grant applications. A lot of what is covered can


44

be summarised into the following six-step approach to raising funds.

Step 1: Gather information about the organisation

Step 2: Gather information about the project or activity

Step 3: Find out about funding sources and possible activities

Step 4: Create a fundraising plan

Step 5: Implement the fundraising plan – send out applications and

complete fundraising activities

Step 6: Account for funding received and evaluate how your plan worked

Fundraising plan

The most important step in successful fundraising is to have a plan. You need to take time to

think through strategies for achieving that plan. Also set a timeline and break down tasks into

manageable pieces.

Producing a fundraising plan involves the following 3 steps:

1. First Step

• Identify the purpose of obtaining funds.

• Check whether fundraising is really necessary – consider what’s available now and whether there are

other ways of achieving what you want e.g. does another group have the equipment that you could use? Rather than money, could you get a donation of a service or item instead?

• Think about whom will gain from the fundraising e.g. will your target group benefit?

Once Decided to Raise Funds

• Establish a fundraising committee

• Describe the exact purpose for raising funds

• Set a budget

• Set goals

• Build a fundraising pyramid (see picture)

Fundraising Pyramid

• List the other (non-monetary) resources

needed

• Build a fundraising team

• Consult

• Evaluate (and choose) your funding options

(see ―Funding Options‖ below).

• Know how to account for any funding you

might receive

• Develop your strategies (including a timeline)

to put your final plan into action.

Funding options

Local Fund Raising Activities

• Food and entertainment

• Sales

• Money for labour


45

• Sponsored activities

• Exhibitions or demonstrations • Community services

• Competitions

Raising Money through Membership

• Membership fees

• Having patrons

• "Friends of the organisation" membership

• Business membership

• Local authority or government agency membership

• Major sponsors

Donations

Donor-donee relationship

Business sponsorships

Sponsorship Strategy

A sponsorship strategy involves:

• identifying activities suitable for sponsorship

• writing a clear summary of and budget for the proposed activity

• identifying potential benefits for the sponsors

• establishing the value to the sponsor

• identifying potential sponsors and selecting who you will approach

• writing the sponsorship proposal

• approaching the sponsor

• follow up with the sponsor.

Ways of recognizing sponsors

You could put the sponsor‘s name on:

• Clothing

• All stationery, which can be done cheaply with a self-inking stamp

• All promotional material such as entry or registration forms, posters, tickets

• Notice boards at clubrooms

• Cups, medals and ribbons

• A display by the sponsor in the clubrooms

• The club banner.

You could also:

• advertise the sponsor's wares or activity in programmes and club newsletters

• promote and foster the sponsor's name and products at, or during, an event, in your annual

report, or at the AGM

• have the organisation or its members become involved in promotional activities for the sponsor

• give the sponsor the opportunity to market products at the venue or to the participants

• distribute the sponsor's advertising material at clubrooms or to all participants

• have the sponsor's advertising on your venue

• have the sponsor use photos of events for their own promotions.


46

Professional Fundraising Consultant

Applying for funds

Whether you‘re applying for public funding, a trust grant or making a sponsorship proposal, a

well-presented application stands the best chance of success.

Applying for Funds - Application Contents - Checklist

Applying for Funds - Application Contents - Checklist A funding application typically requires the following information, which can be altered to suit the

organization (group) and the funding body:

Introduction – about the organisation, its staff and volunteers, services provided, community

served numbers.

Legal form –incorporation of the organization as a society or charitable trust? Does the organization have an umbrella organisation willing to receive money on its behalf? Is it registered under FCRA?

The problem – outline the problem the project seeks to address. Enclose any needs analysis, evidence or statistics.

Objectives – these should be specific, achievable and able to be evaluated.

Procedure – who will implement the project, how and with what?

Evaluation – explain how you intend to measure whether the project was worthwhile.

Budget – list all items of anticipated income and expenditure, including staff salaries and administration costs. Note any other sources of funding that the organization has approached for this

project, and when the organization expect a response. State how much the organisation is providing. Attach professional quotes.

Request – ask for a specific amount of money that is realistic in terms of the project budget and of the size of the grant usually made by the funding body. In many cases it will be less than the

total expenses identified in the budget.

Contacts – list address and phone numbers of two people who can provide the funder with any

further information or clarification.

Referees – list two or more referees from outside the organization organisation who understand

the project and support it.

Other information – attach any letters of support and other materials that support the

organization case such as media releases, annual reports, brochures, annual accounts etc.


47

Begetting

Estimation of Financial Requirement of a Project

Budgeting is the first step in the financial administration. It is a fundamental part of the planning

process. Budget is a statement showing the various sources from which money is to be raised

during a particular period and the programs and activities on which this will be utilized.

Indicates the financial conditions of the agency during the coming year.

Indicates the distribution of funds for certain definite welfare services.

Indicates the proposed expenditure for a specific period, and the purpose and the proposed

means of securing the income required.

Is a basic means of controlling the programs as well as funds

It is the program of work of the agency expressed in rupees and paise.

Definition of a budget:

Budget means formal quantitative statement of resources allotted for planned activities

over a stipulated period of time.

Future plans if it is expressed in quantitative numerical terms are called as budget.

Purpose of the budget.

The purpose of budget is

Assessment:

To assess the financial requirement of an agency

To start fund raising campaign

Steps

BUDGETTING

Statement showing the income & expenditure for a specific period in numerical terms

Accounts for the last 3 years Letters of sanction from donors

Request

from various heads

Preparing schedule of payments & expenditure budgeting statements for the last 3 years actual income and expenditure for the previous year budgeted income/ expenditure for the previous year proposed income and expenditure for the next year

BUDGET

MEANING

PURPOSE

Source / material

for budget preparation

Assessment Forecasting Guidance Helping Informing


48

To request various grant giving bodies for financial assistance.

Indication:

To indicate the lines on which money raised / received (forecasting) will be spent.

Guidance:

To guide the staff of the agency about the manner of spending money on various schemes

and heads of account.

Helping:

To help the managing committee to exercise financial control over the agency‘s work.

Informing:

To inform the community about sources of income and the plan for

incurring expenditure.

Methods of preparing a budget: (Steps)

1. Preparing a schedule of payments and expenditure in respect of each activity or heads of

expenditure. E.g. Salaries, Travel, Communication, Equipment, Medicine Contingencies.

2. Collecting the income / expenditure statement for the last three years, on each head of

account.

3. Actual income / expenditure during the previous year.

4. Budgeted income / expenditure during the previous year.

5. Proposed income / expenditure for the coming year.

Estimation of Financial Requirement

Proforma of budget estimate / accounts in respect an orphanage for the year ………….

Receipts Payments

Budget Account Head

Av

era

ge o

f th

e la

st 3

yea

rs

Bu

dg

ete

d

Actu

al

Pro

po

sed

for t

he

cu

rre

nt

yea

r

Budget Account Head

Av

era

ge o

f th

e la

st 3

yea

rs

Bu

dg

ete

d

Actu

al

Pro

po

sed

for t

he

cu

rre

nt

year

Grants Recurring

Donations Salaries of staff

Subscriptions Food & clothing

Sale proceeds Raw material for crafts

Interest Medicines

Rent of building Rent

Fees Light water etc

Value of services Contingencies

Value of donations in kind Non recurring

Balance from the previous

year

Van

Equipment

To be collected Building / maintenance

Other items Other items

Total Total


49

Note on Budget preparation: -

1. The list of heads of accounts is not exhaustive. An agency could adopt the above from as far as possible leaving

out items not applicable or adding a few items of Receipts and payments, if necessary.

2. The value donations in kind to be shown / separately against the relevant items with extra entry on the sides.

The above proforma explains not only the process of budget preparation but also indicates how to estimate financial

requirements of a project.

Financial estimates are usually done under two major headings i.e. recurring and non- recurring.

Recurring expenses are those expenses which happens regularly, includes salaries to the staff (Project Director,

Professional, Administrative, field staff) expenses related to project activities (depends upon the nature of the

project) and contingencies expenses.

Non–recurring (capital expenses that happens once in a while) includes building construction machinery and other

project related expenses.

Expenditure pattern not only differs from project to project but it also differs from phase to phase. The first phase

(planning) consumes less resources and the second phase (implementation) phase consumes more resources.

So, estimation of financial resources demand knowledge about the expenses that are to be incurred under various

headings and also the volume of resources required phase of a project.

Foreign Contribution Regulation Act 1976 Foreign Contribution (Regulation) Act, 1976 (FCRA) was enacted in the year 1976 with the

prime objective of regulating the acceptance and utilization of foreign contribution and foreign

hospitality by persons and associations working in the important areas of national life. The focus

of this Act is to ensure that the foreign contribution and foreign hospitality is not utilized to

affect or influence electoral politics, public servants, judges and other people working in the

important areas of national life like journalists, printers and publishers of newspapers, etc. The

Act also seeks to regulate the flow of foreign funds to voluntary organizations with objective of

preventing any possible diversion of such funds towards activities detrimental to the national

interest and to ensure that such individuals and organizations may function in a manner

consistent with the values of sovereign democratic republic.

The organizations seeking foreign contributions for definite cultural, social, economic,

educational or religious programs may either obtain registration or prior permission to receive

foreign contribution from Ministry of Home Affairs by making application in the prescribed

format and furnishing details of the activities and audited accounts. The registration is granted

only to such association which has proven track record of functioning in the chosen field of work

during last three years and after registration, such organization is free to receive foreign

contribution from any foreign source for stated objectives. Registration is granted only after

thorough security of the activities and antecedents of the organization and office bearers thereof.

However, such organizations which are newly established and do not have proven track record of

functioning may also receive foreign contribution for specific activities, for a specific purpose

and from a specific source after seeking project based prior permission (PP) from the Ministry

of Home Affairs.

In order to bring in transparency in the administration of the Foreign Contribution (Regulation)

Act, 1976 and the Rules framed there under, improve the functioning, disseminate the

information and enhance user friendliness of the various procedures the web-site is uploaded

with all the FCRA forms, Citizens‘ Charter, list of registered associations, State-wise status of


50

application for registration/prior permission, etc. In our efforts to bring in further improvements

in the system, the following additional charters/materials are uploaded for information and

guidance of all concerned:

Charter for NGOs / Associations Applying for Grant of Prior Permission /

Registration under The Foreign Contribution (Regulation) Act, 1976.

Any NGO wishing to receive Foreign Contribution (FC) must have a definite cultural,

economic, educational, religious or social program.

It shall neither receive nor utilize any FC without obtaining either prior permission or

registration from the Central Govt.

Details of FC received prior to obtaining either prior permission or registration should be

mentioned clearly at the time of applying for prior permission or registration, as the case may

be.

An application for seeking prior permission to accept foreign contribution is to be made

in Form FC – 1A, and for grant of registration in Form FC – 8, respectively. The forms

can be downloaded from Ministry of Home Affairs Web Site at http://mha.nic.in/fcra.htm

The application should be complete in all respects and no column should be left blank.

Each Prior permission application should be sent for receiving a specific amount, for a

specific purpose and from a specific donor. The donor‘s commitment letter specifying the

amount of FC and copy of project for which FC is solicited should invariably be sent along

with the FC-1A form.

Copies of following documents are required to be sent along with FC-1A and FC-8 form 1. Copy of certificate of registration issued under the Societies Registration Act, 1860 or Trust deed , as

the case may be; 2. Details of activities during the last three years; 3. Copies of audited statement of accounts for the past three years (Asset and Liabilities, Receipt and

Payment, Income and Expenditure);

If any printed work is brought out by the association, a certificate from the Press Registrar that

the publication is not a newspaper in terms of section 1(1) of the Press Registration of Books

Act, 1867

Salient features of Foreign Contribution Regulation Act, 1976

• An act to regulate the acceptance and utilization of foreign contribution or foreign

hospitality by certain persons or associations, with a view to ensuring that parliamentary

institutions, political associations and academic and other voluntary organizations as well as

individuals working in the important areas of national life may function in a manner

consistent with the values of a sovereign democratic republic, and for matters connected

therewith or incidental thereto.


51

Indian non-governmental organizations (NGOs) have not only been getting money from big donors

like the US, Germany, the UK, Switzerland and Italy, but are also receiving contributions from Pakistan. In fact, Islamabad has consistently been donating money to various associations in the

last three years. Although the amount contributed by Pakistan is quite small when compared to that given by the

bigwigs, it has put Islamabad in the august list of donors. The contributions by Pakistan and the

other big donor countries have gone to NGOs engaged in carrying out cultural, economic, educational, religious or social programs in different parts of India.

Statistics released by the home ministry regarding 'foreign funds to NGOs' show that India, which has a total of 33,937 registered associations, received Rs 12,289.63 crore in foreign contributions

during 2006-07 as against Rs 7,877.57 crore in 2005-06, a substantial increase of nearly Rs 4,400

crore (56%) in just one year. The US, Germany, the UK, Switzerland and Italy were the top five foreign contributors during 2006-

07. These five countries have consistently been the big donors since 2004-05. Spain, the Netherlands, Belgium, Canada and France are the other countries which figure prominently in the

list of foreign donors. The US has been the biggest donor to Indian NGOs in the last several years. It contributed over Rs

2,971 crore in 2006-07 alone. As far as Pakistan is concerned, the country contributed Rs 43.28 lakh

in 2004-05, Rs 71.70 lakh in 2005-06 and Rs 21.99 lakh in 2006-07. In response to a query on whether NGOs getting money from outside had been known to divert the

funds for illegal work or to spread terror activities, the home ministry, in a written reply in the Lok Sabha on Tuesday, said, "There are no specific inputs to indicate misuse of foreign contribution by

the registered associations (under the Foreign Contribution Regulation Act) for terrorist activities."

The ministry pointed out that no association having a definite cultural, economic, educational, religious or social program could accept foreign contributions without registration or prior

permission under the Foreign Contribution Regulation Act (FCRA), 1976. "However, as and when complaints relating to the violation of the provisions of the FCRA against associations come to the

notice of the government, appropriate action is taken," it said. Such activities may include prohibiting the NGOs from receiving foreign contributions, freezing their

bank accounts and prosecuting them in a court of law. On the basis of various complaints, as many

as 44 NGOs have been prohibited from receiving foreign contributions whereas the bank accounts of 11 others have been frozen. Besides, the cases of 17 organizations have been referred to the CBI

for detailed investigation. Among the states, Tamil Nadu has the distinction of having the highest number of registered

associations (3,009) and getting the highest amount of foreign contributions in India. Maharashtra,

Tamil Nadu, Delhi, Andhra Pradesh, Karnataka, Kerala, Jharkhand, West Bengal, Gujarat and Rajasthan are the top ten states which received major foreign contributions in 2006-07

Details of Foreign Contribution

Need for Foreign Contribution Regulation Act, 1976

• Regulating foreign contribution meant for influencing elections or individuals or associations

working in important areas of national life.

• Not meant to prohibit receipt of foreign contribution for genuine purposes.

• Security considerations.

Foreign Contribution

• Foreign contribution means the donation, delivery or transfer made by any foreign source

of any


52

Registering an NGO is the first step to get foreign funding

Societies Registration Act 1860

Each state has its own rules and regulations Century outmoded sections continues

Office Bearers are not eligible for remuneration as per certain state rules Re-registration is must in certain states

Takeover provisions Indian Trust Act, 1882

Applicable only for private trust but, can be registered as per public charitable trust

No external control It is considered non-democratic but depends on trust deed

Cooperative Societies Act Have became political weapon of ruling parties in certain states

Elections are not conducted and bureaucrats are ruling in those states

Section 25 Companies Administration has to control more time in filling forms

Rules & Regulations applicable as per Companies Act Medium & small NGOs needs proper personnel to handle the regulatory requirements

a) article, not given to a person as a gift, for personal use, if the market value in India of such

article exceeds one thousand rupees;

b) Currency, whether Indian or foreign;

c) Foreign security as defined in clause 2(i) of the Foreign Exchange Regulation Act, 1973.

NOTE: Contributions made by a citizen of India living in another country, from his personal

savings, through the normal banking channels, is not treated as foreign contribution. It is

advisable to obtain the passport details of the concerned citizen of India before accepting such

contributions.

Foreign Source

• Government of foreign country or any agency of such government.

• International agencies, not being of

a) United Nations or its specialized agencies

b) World Bank

c) International Monetary Fund

d) Such other agencies as so notified by the Central Government.

• Foreign Company or Corporation incorporated in foreign country

• Trade Union in a foreign country

• Foreign Trust or Foundation or Society or Club formed or registered outside India

• Company where more than half of shareholding held by foreign Govt., foreign citizens,

foreign corporations

• Citizens of foreign countries

Box: Getting Foreign Contribution

Who cannot accept Foreign Contribution?

• Candidate for elections.

• Correspondents, columnists, cartoonists, editor, owner, printer.

• Judge, Government servant or employee of any corporation


53

• Member of any Legislature

• Political party or office-bearer thereof.

Types of permission

An association having a definite cultural, economic, educational, religious or social program can

receive foreign contribution after it obtains the prior permission of the Central Government, or

gets itself registered with the Central Government.

Registration

• Means permanent permission to accept foreign contribution from any foreign source.

• Granted to associations with proven track record having definite cultural, economic,

educational, religious, social program.

Reasons for rejection of Registration Applications

• Association being in formative stage

• Association formed for personal gain

• Association involved in religious conversion (prosetylisation)

• Members of Executive Committee involved in illegal/criminal activities

• Sister association prohibited under the act

• Applicant association prohibited

• Association involved in anti-national activities

• Stated objects of the association not being pursued.

• Applicant having close links with another association with doubtful credentials

• Incomplete application.

Must dos for the registered associations

• Designated exclusive Bank account for receipt and utilization of foreign contribution.

• Submission of annual FC-3 returns.

• Change in members, home, address, objectives of the association to be reported to Central

Government within 30 days.

• Change in the O.B‘s by 50% or more with prior permission only

• Exclusive accounts for utilization of foreign contribution and audit by the Chartered

Accountant.

• Exclusive accounts for receipt and utilization of foreign contribution .

• Substantial proportion of foreign contribution to be spent on welfare activities


54

Indian Diaspora’s opinion on FCRA

The Indian Diaspora, particularly from the affluent Silicon Valley, had pleaded for the scrapping of the Foreign Contribution Regulation Act (FCRA). Instead of scrapping, its obnoxious features

got worse. Fears that money could incentivize conversions stymied any action. Fortunately, one obnoxious regulation making it compulsory for any contribution aimed for educational

institutions, overlooking that such contributions to the alma mater was a way of repaying back,

was scrapped by the new government. The FCRA was introduced in 1976 as an Act to „„regulate the acceptance and utilization of

foreign contributions/ donations or foreign hospitality of certain persons or associations with a view to ensuring that parliamentary institutions, political associations and academic and other

voluntary organizations as well as individuals working in important areas of national life function

in a manner consistent with the values of sovereign democratic republic.‟‟ Notwithstanding the unexceptionable (although somewhat pompous) objective, in practice its application has been

detrimental in multiple ways. The Act is administered by the Ministry of Home Affairs. The Foreigners Division of MHA is a

bureaucratic web scrutinizing thousands of applications; a vestige of the „„permission culture‟‟. Some 23,000 associations stand registered under the FCRA and roughly 700 associations get

permissions each year and over 14,598 such associations filed returns in 2001-02 alone. The Act

regulates a spectrum of activities: 1 International conference

2 Individual foreign scholars 3 Foreign contributions need prior approval.

4 Foreign hospitality,

5 Scholarships 6 Media

7 The Indian Diaspora finds the Act even more onerous because currently contributions from NRIs to corporate sector come under the Foreign Exchange Maintenance Act, while non-

corporate organizations are under the ambit of the FCRA. FERA was repealed some time ago and FEMA which was its replacement looks into foreign exchange utilization for business

purposes. However, even philanthropic activities are clubbed under FCRA and contributions do

not get any tax exemption for the donations given by them. Action on Singhvi Committee‟s recommendations has been tardy.

The FCRA is an archaic legislation. Even as India has become increasingly globalised, this Act reflects undue diffidence. It is a part of a misplaced paranoia that foreigners are busy conspiring

to destabilize us and even self-respecting Indians and recognized academic institutions can be

so easily subverted. Every country must protect attempts to subvert institutions and, given enhanced security concerns, keep a firm check on suspect money.

There are, however, other means to achieve this unexceptionable goal. Several existing laws like the Money Laundering Act, Foreign Exchange Management Act and other legislations under the

control of Ministry of Home Affairs can be strengthened to meet this objective. The FCRA

deserves to be scrapped. Democratic institutions and our pride in preserving an „„open society‟‟ need repeated vindication. Can we arrange a decent but quick burial for this outmoded law?

Box: Indian Diaspora’s opinion on FCRA

Prior Permission when required

• Where the association does not have a FCRA registration

• Where the association is placed under prior permission category

• Where registration is frozen


55

FCRA Problems Genuine groups applications with

documentary evidence of support

letters from donors, summarily rejected

If there is a change of 50 % or more of the office bearers, fresh

application – undemocratic Grey Areas:

When FC losses its characteristics.

Not able to support Grass Root level Orgs.,/CBOs

FC 8 Application recommendation letter from Collector or Govt.

officials

• Associations of political nature, not being political party

Essentials of prior permission

• Donor specific

• Donee specific

• Amount specific – within overall limits

• Purpose specific

Penalties

• Prohibition

• Placing the association in prior permission category

• Fine

• Seizure/confiscation of the foreign contribution

• Imprisonment upto 5 years

Role of Banks

• Prime source for receipt and utilization

• Can keep a watch over activities of doubtful

associations

• Information about foreign contribution

• Not to allow receipt and utilization of foreign contribution without Registration or prior

permission.

Bilateral Development Assistance

Preferred Bilateral Partner Countries

• Japan

• United Kingdom

• United States of America

• Germany

• European union Countries

• Russian Federation

Preferred Areas for Bilateral Development Assistance

Projects of economic and social importance

Technical assistance programs that aim at enhancement of knowledge/skills of Indian

Nationals

Each project to be cleared by the DEA. No blanket permission to any NGO based on

reputation/past performance

FCRA clearance compulsory

Procedure for clearing the proposals

• Bilateral partners to identify the recipient organizations and projects.

• Submission of brief particulars of program/project to the DEA.

• Response of DEA to bilateral partners.

• Approval of list of recipients/programs/projects.

• Transfer of funds by bilateral partner to the recipient organizations.


56

• Monitoring the physical and financial progress of the projects.

Receipt of Foreign Contribution

Year Amount Rs/crores % increase over previous Year

2000-01

2001-02

2002-03

4535.2

4871.9

5046.5

3.58

7.42

15.56

Amount wise break-up of foreign contribution received by reporting associations

Year Below

Rs.1 cr Between Rs.1-5 cr

Between Rs.5-10 cr

Above Rs.10 cr

2000-01 13815 669 62 52

2001-02 14761 721 77 52

2002-03 15650 798 76 66

Top Donor Countries

Foreign Contribution Rs/crores

2000-01 2001-02 2002-03

USA 1492.63 1658.29 1679.84

Germany 664.51 702.33 715.04

UK 677.59 679.29 685.38

Italy 269.78 304.55 315.82

Netherlands 227.04 237.37 261.88

Top Donors

Foreign Contribution (Rs. in crores

2000-01 2001-02 2002-03

Ford Foundation, USA 41.32 56.05 121.94

World Vision International, 80.43 78.33 90.24

Vicent E Ferrer Spain 63.26 63.06 79.16

Christian Children Fund.USA 43.07 44.27 75.15

Foster Parents Plan International, USA 76.37 72.37 53.73

Top Recipient States/Union Terrotory

Foreign Contribution (Rs. in crores)

2000-01 2001-02 2002-03

Delhi 763.05 794.42 880.77

Tamil Nadu 649.45 695.49 774.99

Andhra Pradesh 589.52 559.56 629.76

Karnataka 489.96 504.98 629.76

Maharashtra 466.91 464.35 505.13

Top Recipient Districts

2000-01 2001-02 2002-03

Bangalore 365.13 362.19 357.66

Chennai 310.77 311.55 363.45

Mumbai 240.25 298.28 283.53


57

Kolkotta 167.38 168.38 181.44

Anantapur 165.43 115.42 168.95

TOP PURPOSES

Rural Development 547.74 464.61 486.50

Establishment Expenses 170.05 859.00 673.77

Construction & Maintenance of School 192.46 242.24 275.74

Relief/Rehabilitation of Victims of Natural

Calamities

339.77 438.65 265.85

Construction of hospital/ dispensary/clinic

145.77 186.65

Trends

Year Registered Associations

Amount of foreign contribution received (in Crores)

1993-94 15,039 1865

1994-95 15,723 1892

1995-96 16,740 2168

1996-97 17,723 2571

1997-98 18,489 2864

1998-99 19,834 3402

1999-00 21,244 3924

2000-01 22,924 4535

2001-02 24,563 4872

2002-03 26,404 5047

Issues in the Functioning of NGO’s

Non-existent regulatory mechanism

Accountability

No perspective planning for NGO sector

Proliferation of paper organizations

No National NGO policy

Comprehensive National Legislation Required

Accountability

Accountability – Authority – Responsibility:

Efficient Use of Resources

Administrative Accountability

A few writers in the field of management indicate that accountability means the managers‘

liability for the proper discharge of the duties use the term accountability by his industries.

Some others conceive that accountability as the requirement of those organization members

to whom responsibility and authority are delegated be held answerable for results.


58

Accountability

People often talk about accountability of NGOs. Sometimes this makes scandalous headlines. Other

times, it may lead to a heated argument in a drawing room. ■What is financial accountability?

■How is it enforced in the context of NGOs?

■How do NGOs look at it?

■What are public expectations in this connection?

■How does the corporate sector deal with this issue?

Perceptions

Different people have widely differing views of financial accountability of NGOs. Some believe them to be extremely honest; others argue equally vehemently that they are all corrupt. As always, the

truth lies somewhere between these two extreme views.

In our experience, there are some NGOs who may not be doing any real work, but maintain their accounts very nicely. These NGOs may be primarily vehicles for self-enrichment or for tax evasion.

Then again there are many NGOs whose work is exemplary but the quality of accounting is quite poor. Sometimes this is due to lack of accounting personnel or skills. Other times, this may be due

to faulty budgeting policies or organizational pressures. There are also some NGOs whose work and accounts both shine equally well. These can be held up as models to be emulated by all.

Responsibility, authority. accountability are related terms. The purpose of all this is to make

efficient use of resources. Efficient use of resources is again depending on administrative

ability.

Administrative accountability involves the ability to mobilize allocate and combine the

actions that are technically needed to achieve development objectives. -Katz

Administrative accountability involves efficiency related to the conversion of inputs and

outputs, with special attention as to how the inputs are used.

Administrative accountability is the capacity of the administration to achieve the desired

objective of socio –economic progress and nation building.

Accountability means taking responsibility for the omissions & commissions of the

subordinates

related to efficiency

Ability to mobilize, allocate & combine actions that are needed to achieve development. Box: Accountability

Why accountability?

D.A is the arm of the state; they can enact & enforce law. D.A at times regulates the activities of

other administration. Because of these public expect that D.A should rise above the normal

patterns of management in commerce & industry

Accountability is like electricity, is difficult to define, but possess qualities that make its

presence in a system immediately detectable.

Accountability means liability to give a satisfactory account of the exercise of the power, falling

which some kind of evil or punishment may follow.

Administrators are guilty of

1. Non–feasance; [laziness, ignorance, want of care, corruption.]

Officials have not done what the custom or law requires them to do owing to laziness, ignorance

or want of care for their charges of corrupt influences.


59

2. Mal–feasance; [waste & damage, ignorance, technical incompetence]

Means that a public duty is performed with waste and damage because of ignorance, negligence

and technical incompetence.

3. Over–feasance; [dictatorial power, vanity ambition genuine, sincere, public spirited

enthusiasm]

Means when an official duty is undertaken beyond what law & custom oblige or empower. If

may occur act of dictatorial temper, vanity and ambition of an official or his genuine, sincere,

public spirited enthusiasm.

Box: Defining Financial Accountability

To control them accountability is stressed;

Accountability is achieved through [control mechanisms]

Internal system controls; (department)

Hierarchy; a body successively classified in subordinate grades.

Span of Control: Define the number of subordinates an administrator can efficiently control

or direct.

Unity of Command: States that subordinates should have no more than one superior to whom

they are directly responsible.

Inspection Supervision.

External system controls: (people)

Legislative, electorate or the people, professional bodies counts

Political

Legislative

Financial, Judicial / normative accountability

Through prescribing conduct & rules.

Defining Financial Accountability

The word accountability has many different interpretations in the NGO sector, and is a complex, multi

faceted concept. In the present context, the discussion is limited to financial accountability. Fortunately, this is simpler to deal with. Simply put, financial accountability is the ability to account for

money properly. This would mean that a person is able to show how they have used the money. They should also be able to show that the money was used properly and accounted fairly. Finally, their

financial reports should be financially true and not misleading. Simply put, financial accountability is

the ability to account for money properly.

Hierarchy

Span of control

Unity of command well known accountability facilitating

devices.

Inspection

Supervision


60

The key principles of NGO accountability, and how can it be applied? The four principles of accountability call for responsibility and authority to be clearly specified, guidance

and support to be provided at all stages to everyone involved, exercise of responsibility and authority to be monitored and assessed, and appropriate action to be taken.

One of the first principle is that responsibility and authority has to be clearly specified. The responsible

person must be informed of the expected program results and resources (financial and human) allocated for the purpose. Monitoring and evaluation systems should be clarified, along with organizational values,

policies, rules and regulations, and the behavioral standards. The second principle calls for providing guidance and support to the responsible person in the form of

regular and timely management information, training and development, access to senior managers, and

advice from financial and human resource management experts. The third principle calls for the monitoring and assessment of the needs of responsibility and authority.

This is done by an objective comparison of results against targets and standards, covering such issues as delivery of programs, cost and quality; management of human and financial resources; decision-

making - authority fully exercised but not exceeded; and compliance with policies, values, rules and regulations, and behavioral standards.

The final principle is on taking appropriate action. This deals with issues such as excellence, satisfactory

performance, unsatisfactory execution of responsibility and authority as a result of carelessness or ignorance, unacceptable execution of responsibility and authority due to deliberate flouting of policies, rules and regulations, or exceeding the limits of decision-making authority.

Internal individual controls –administrator‘s values towards law, his moral development,

promise keeping mutual aid, respect for persons / property.

Ombudsman type institutions– Lokpal & Lokayukta

The key principles of NGO Accountability

Accountability is determined by

Nature of political structure.

Nature of social organization

Nature of political culture

Level of popular expectations

Value system of the public

Levels of administrative morality

Power relations.

Methods to improve the Administrative Accountability

1. There should be decentralization of authority because concentration of power and authority

corrupts bureaucrats

2. The duly elected representatives of the people in the legislatures should tighten their group

and no exclusively depend on the bureaucrats for running day-to-day administration of their

department.

3. Institutions like those of the Lokpal and judiciary tribunals should be encouraged and

empowered to look into the grievances of the public against the bureaucrats.

4. They should be constantly reminded that they are the servants of the people with whom they

must establish healthy contacts.

5. Socially, they should never be allowed to develop a sense of class and self-consciousness.


61

Regulatory Authorities

Different Government departments approach this issue from different perspectives. For example,

Ministry of Home Affairs is concerned with whether some NPOs, which receive foreign funds, could use these to influence electoral politics. It is also concerned with whether the funds could be used to

influence media or effect religious conversions. The new FCRA Bill 2006 takes it further to whether foreign funds could be used for anti-national activities.

The Income Tax Department is focused on whether the tax exemptions granted to NPOs could be misused as a tax shelter and thus cause the Government to lose revenue. This normally happens

when people set up paper-based NPOs and use these to mask their business activities. Or they could

use these to provide fake tax deductions to taxpayers. Contrary to general perceptions, the society registrars are normally not concerned with ensuring

accountability of NPOs. They essentially function as a public record office. This role varies from one state to another

However, in some states, such as Maharashtra and Gujarat, the Charity Commissioner is also

concerned with preventing theft of funds or properties entrusted to trusts and societies. Similarly, the Companies Registration office also tries to ensure that section 25 companies are not used for personal

enrichment. Thus, it can be seen that Government authorities are primarily not concerned with financial accountability of NPOs. They do not see themselves as arbiters of good financial management.

6. Top bureaucrats must be taught at responsive to public opinion, which they should be told by

direct & indirect means and methods.

7. Nepotism in making appointments should be ruthlessly crushed.

8. The bureaucracy should be deprived of judicial powers so that people can hope to get justice

against their high handedness. Effective political control, good management, efficient

personal administration, internal review professional moral and non official participation in

administration can go a long way to improve the administrative accountability and there by

removing many of the evils of bureaucracy.

Methods to improve accountability.

Decentralization Political control

total dependency on the bureaucrats should be avoided

Institutions like Lokpal should be encouraged

Bureaucrats should be remained that they are servants

Not allowing them to develop a class consciousness

Depriving them judicial powers.

Effective political control, efficient personal administration internal review, professional

moral non-official participation.

Regulatory Authorities

Administrative Accountability

Dovetailing of professional judgment into citizens‘ preferences.

Accountability, like electricity, is difficult to define, but possess qualities that make its

presence in a system immediately detected.


62

Financial Accountability

1. An NGO should operate in accordance with an annual budget that has been approved by the

board prior to the beginning of each fiscal year. 2. An NGO should create and maintain financial reports on a timely (at least quarterly) basis,

accurately reflecting the financial activity of the organization, including the comparison of actual to budgeted revenue and expense.

3. Quarterly financial statements should be provided to the board of directors. The statements should

identify and explain any significant variation between actual and budgeted revenues and expenses. 4. An organization should subject its financial reports to an annual audit by a Chartered Accountant.

5. An NGO should provide employees and volunteers with a confidential means to report suspected financial impropriety or misuse of organization resources.

6. An NGO should have written financial policies governing the following matters, where appropriate:

(a) investment of the assets of the organization; (b) internal control procedures; (c) purchasing practices; (d) reserve funds; (e) compensation, including salary and benefits; (f) expense account

reporting; and (g) earned income. 7. The organization should have clear and written policies on loans and staff advances.

8. Wherever possible, the organization should ensure that its funding base is diversified.

Concept of Administrative Accountability is culture oriented

Administrative Accountability It power is not to be abused, it must be accompanied by responsibility / accountability.

Accountability means liability to give a satisfactory account of the exercise of the power, failing

which some kind of evil or punishment may follow.

Accountability is built up in constitutional provisions, statues, rules, judicial decisions &

precedents and customs & usages

Accountability is achieved thro ‗

the legislature

the electorate or the people

the administrative superiors

professional bodies

courts

So accountability in administration is political, administrative, professional and judicial.

Box: NGOs and Financial Accountability

Responsibility to the Legislature:

To hold office, they have to win the confidence

If the party is powerful/majority – then what?

Questions, resolutions and debates are the methods

Conduct & Discipline:

Accountability is established thro’ conduct rules

1) Maintenance of correct behavior towards official superiors and of loyalty to the state.

2) Restrictions to engage in private trade, business, contracting debt, acquisition & disposal of

property etc.


63

Resources are the inputs that are used in the activities of a program. Broadly speaking, the term

encompasses natural, physical, financial, human, and social resources, but the vast majority of the resources are financial resources. In kind resources such as the provision of office space, seconded

staff, or partner participation at board meetings are a second level of resources.

Resource mobilization is the process by which resources are solicited by the program and provided by donors and partners.

The process of mobilizing resources begins with the formulation of a resource mobilization Strategy, which may include separate strategies for mobilizing financial and in-kind resources.

Carrying out a financial resource mobilization strategy includes the following steps: identifying potential sources of funds, actively soliciting pledges, following up on pledges to obtain funds,

depositing these funds, and recording the transactions and any restrictions on their use. The process

is generally governed by legal agreements at various stages. Financial management refers to all the processes that govern the recording and use of funds,

including allocation processes, crediting and debiting of accounts, controls that restrict use, and accounting and periodic financial reporting systems.

3) Observance of a certain code of ethics in the official, private & public life.

4) Regulation of political activities of the public servants public servant has to forego certain

citizen rights.

5) All India service rules.

Box:


64

Unit V

Project Monitoring

Methods and Techniques of monitoring projects / Programs

Projects even with a good planning, adequate organizational machinery and sufficient flow of

resources cannot automatically achieve the desired result. There must be some warning

mechanism, which can alert the organization about its possible success and failures, off and on.

Constant watching not only saves wastage of scarce resources but also ensure speedy execution

of the project. Thus monitoring enables a continuing critique of the project implementation.

Monitoring means keeping a track of implementation process.

Monitoring involves watching the progress of a project against time, resources and

performance schedules during the execution of the project and identifying lagging areas

requiring timely attention and action.

Monitoring is defined as a management function to guide in the intended direction and to

check performance against pre – determined plans.

Monitoring means periodic checking of progress of works against the targets laid down in

order to ensure timely completion of the project.

Purpose of Monitoring:

Project monitoring helps

to provide constructive

suggestions like.

Rescheduling the

project (if the project

run behind the

schedule)

Re budgeting the

project (appropriating

funds from one head

to another; avoiding

expenses under

unnecessary

heading).

Re – assigning the

staff (shifting the

staff from one area to

other; recruiting

temporary staff to meet the time schedule)

UNIT V Concept, Meaning and Importance of Monitoring and Evaluation. Components of M&E.-Physical, Financial, Staff Performance. Technical aspects – Output, Outcome & Impact. Trends in People’s Participation in M & E. Contribution of Right to Information Act.


65

Definitions for four levels of an objective hierarchy

Goal: The long-term objective, change of state or improved situation to which a development intervention,

such as a project or project component, is intended to

contribute. For IFAD-supported projects, the goal is some form of poverty reduction. The extent to which the project

contributes towards the goal is the impact of the project. Purpose: The overall objective of the project (or project

component), in terms of overall observable changes in

performance, behavior or status of resources that the project (or project component) is responsible for

achieving. Standard log frames use one project purpose while IFAD recognizes that a complex project may have

several purposes. Outputs: The products, services or results that must be

delivered by the project implementers for the project

purpose(s) or project component purposes to be achieved. Activities: The actions taken by project implementers,

which are required to deliver the outputs by using inputs such as funds, technical assistance and other types of

resources.

Steps in Monitoring:

1. Identifying the different units involved in planning & implementation

2. Identifying items on which feedback is required.

3. Developing proforma for reporting.

4. Determining the periodicity of reporting.

5. Fixing the responsibility of reporting at different levels.

6. Processing and analyzing the reports.

7. Identifying the critical / unreliable areas in implementation.

8. Providing feedback to corrective measures.

Indicators for Monitoring:

Projects are usually monitored against

Whether the projects

Running on schedule

Running within the planned costs

Receiving adequate costs.

Methods / Techniques of monitoring.

Project reporting, project appraisal,

project monitoring project evaluation

are inter – related terminology‘s with

minor differences in their meaning. In

project evaluation monitoring is

referred as interim or concurrent

evaluation. So many of the methods

used for evaluation can also relevant for

monitoring the project.

First hand information.

Formal reports

Project status report

Project schedule chart

Project financial status Report

Informal Reports.

Graphic presentations.

(Methods of monitoring & evaluation are similar. See methods of evaluation)

Evaluation

Meaning, Objectives, Scope, Principles, Functions, and Methods of Project Evaluation.

Types (internal / external) of Evaluation. A guideline for evaluating Projects

Evaluation has its origin in the Latin word ―Valupure‖ which means the value of a particular

thing, idea or action. Evaluation, Thus, helps us to understand the worth, quality, significance

amount, degree or condition of any intervention desired to tackle a social problem.

Meaning of evaluation:

Evaluation means finding out the value of something.


66

Some PME Tools

Transect walk

Spider web diagram

Participatory mapping

Photographic comparisons

Matrix ranking

Time line

Well-being ranking

Evaluation simply refers to the procedures of fact finding

Evaluation consists of assessments whether or not certain activities, treatment and

interventions are in conformity with generally accepted professional standards.

Any information obtained by any means on

either the conduct or the outcome of

interventions, treatment or of social change

projects is considered to be evaluation.

Evaluation is designated to provide

systematic, reliable and valid information on

the conduct, impact and effectiveness of the

projects.

Evaluation is essentially the study and review

of past operating experience.

Evaluation primarily perceived from three

perspectives.

Evaluation as an analysis – determining the merits

or deficiencies of a program, methods and

process.

Evaluation as an audit – systematic and

continuous enquiry to measure the efficiency of

means to reach their particular preconceived ends.

In the agency context

Evaluation of administration means appraisal or judgment of the worth and effectiveness of all

the processes (e.g. Planning, organizing, staffing etc.) designed to ensure the agency to

accomplish its objectives.

Areas of evaluation:

Evaluation report may be split into various sections, so that each area of the work of the agency,

or of its particular project is evaluated. These may be,

Purpose

Programs

Staff

Financial Administration

General.

Purpose:

The review the objectives of the agency / project and how far these are being fulfilled.

Programs:

Aspects like number of beneficiaries, nature of services rendered to them, their reaction to the

services, effectiveness and adequacy of services etc. may be evaluated.

Staff:

The success of any welfare program / agency depends upon the type of the staff an agency

employs. Their attitude, qualifications, recruitment policy, pay and other benefits and

organizational environment. These are the areas which help to understand the effectiveness of

the project / agency.


67

Financial Administration:

The flow of resources and its consumption is a crucial factor in any project / agency. Whether

the project money is rightly consumed any over spending in some headings, appropriation and

misappropriation. These are some of the indicators that reveal the reasons for the success or

failures of any project. Box: Stages in Evaluation.

General:

Factors like public relations strategies employed by

the project / agency, the constitution of the agency

board or project advisory committee and their

contribution future plans of the agency are important

to understand the success or failures of any project.

Purpose of Evaluation:

From an accountability perspective,

The purpose of evaluation is to make the best

possible use of funds by the program managers who

are accountable for the worth of their programs.

-Measuring accomplishment in order to avoid

weaknesses and future mistakes.

-Observing the efficiency of the techniques and skills

employed

-Scope for modification and improvement.

-Verifying whether the benefits reached the people for whom the program was meant.

From a knowledge perspective:

The purpose of evaluation is to establish new knowledge about social problems and the

effectiveness of policies and programs designed to alleviate them.

Understanding people‘s participation & reasons for the same.

Evaluation helps to make plans for future work.

Principles of Evaluation:

The following are some of the principles, which should be kept in view in evaluation.

1. Evaluation is a continuous of the process.

2. Evaluation should involve minimum possible costs (inexpensive)

3. Evaluation should be done without prejudice to day to day work (minimum hindrance to day

to day work).

4. Evaluation must be done on a co-operative basis in which the entire staff and the board

members should participate (total participation).

5. As far as possible, the agency should itself evaluate its program but occasionally outside

evaluation machinery should also be made use of (external evaluation).

6. Total overall examination of the agency will reveal strength and weaknesses. (Agency /

program totality).

7. The result of evaluation should be shared with workers of the agency (sharing).

Stages in Evaluation.

1. Program Planning Stage. Pre – investment evaluation or

Formative evaluation or Ex – ante evaluation or

Early / Formulation evaluation or Pre project evaluation or

Exploratory evaluation or

Need assessment. Program Monitoring Stage :

Monitoring evaluation or . Ongoing / interim evaluation

Concurrent evaluation

1. Program completion Stage : Impact evaluation or

Ex- post evaluation or Summative / Terminal / Final evaluation.


68

Box: Steps in Evaluation:

Types of Evaluation:

Evaluation can be categorized under different headings

A) By timing (when to evaluate)

Formative Evaluation

Done during the program -Development stages

(Process Evaluation, ex-ante evaluation, project appraisals)

Summative Evaluation

Taken up when the program achieves a stable of operation or when it is terminated

(Outcome evaluation, ex post evaluation etc.)

B) By Agency. Who is evaluating?

Internal Evaluation External Evaluation

It is a progress / impact Unbiased, objective detailed

Monitoring by the management it self assessment by an outsider

(Ongoing / concurrent evaluation)

By Stages

Internal / External Evaluation:

Internal Evaluation: (Enterprise Self Audit)

Internal evaluation (or otherwise monitoring, concurrent evaluation) is a continuous process

which is done at various points and in respect of various aspects of the working of an agency by

the agency staff itself i.e. staff board members and beneficiaries.

External / Outside Evaluation: (This is done by outsiders /Certified Management Audit)

Grant giving bodies in order to find out how the money given is utilized by the agency or

how the program is implemented sent experienced and qualified evaluators (inspectors) to

assess the work E.g. Central social welfare Board

On going

During the implementation

of a project

Terminal

At the end of or immediately

after the completion of a project

Ex – post

After a time lag from

completion of a project

Learning about the program

Creating on evaluation plan & Evaluation indicators

Briefing the concerned people about the evaluation plan & indicators

Revising and elaborating the evaluation plan

Initiating Evaluation

Utilizing / Sharing the Information


69

Five strategic M&E questions to manage for impact

Relevance - Is what we are doing now a good idea in terms of improving the

situation at hand? Is it dealing with the

priorities of the target groups? Why or why not?

Effectiveness - Have the plans (purposes, outputs and activities) been achieved? Is the

intervention logic correct? Why or why not?

Is what we are doing now the best way to maximise impact?

Efficiency - Are resources used in the best possible way? Why or why not? What could

we do differently to improve implementation, thereby maximising impact,

at an acceptable and sustainable cost?

Impact - To what extent has the project contributed towards poverty reduction (or

other long-term goals)? Why or why not? What unanticipated positive or negative

consequences did the project have? Why did

they arise? Sustainability - Will there be continued

positive impacts as a result of the project after the project funds run out in four or five

years? Why or why not?

Some donors may send consultants in order to see how far the standards laid down are put

into practice.

Inter agency evaluation. In this type two

agencies mutually agree to evaluate their

program by the other agency.

Inter agency tours. Box: Five strategic M&E questions to manage for impact

Methods of Evaluation: (Tools / techniques)

Over the years, a variety of the methodologies

have been evolved by academicians, practitioners

and professionals for evaluating any program /

project. Some of the commonly used practices are

given below.

First hand Information:

One of the simplest and easiest methods of

evaluation by getting first hand information about

the progress, performance, problem areas etc,. of

project from a host of staff, line officers, field

personnel, other specialists etc who directly

associated with the project. Direct observation

about the performance and pit falls further

facilitate the chances of an effective evaluation.

Formal / Informal periodic Reports.

Evaluation is also carried out through formal and

informal reports.

Formal reports consists of

Project Status Report

Project Schedule chart

Project financial status Report.

Project Status Report:

From this one can understand the current health, performance, schedule, cost and hold ups

deviations from the original schedule.

Project schedule Chart:

This indicates the time schedule for implementation of the project. From this one can understand

any delay, the cost of delay and the ultimate loss.

1) Project Financial Status Report:

It is through financial report, one can have a look at a glance whether the project is being

implemented within the realistic budget and time.

2) Informal reports:

Informal reports such as anonymous letters, press reports, complaints by beneficiaries, petitions

sometimes reveal the true nature of the project even though these reports are disserted, biased

and contains maligned information.

3) Graphic presentations:

Graphic presentations through display of charts, Graphs, Pictures, illustrations etc. in the project

office is yet another instrument for a close evaluation.

4) Standing Evaluation Review Committees:

Some of the organizations have setup standing committees, consisting of a host of experts and

specialists who meet regularly at frequent intervals to discuss about problems and to suggest

remedial measures.

5) Project Profiles:

Preparation of the project profiles by the investigating teams on the basis of standardized

guidelines and models developed for the purpose is also another method of

Participatory Monitoring and Evaluation

What is Participatory Monitoring & Evaluation?

Participatory monitoring & evaluation (PM&E) is a process through which stakeholders at

various levels engage in monitoring or evaluating a particular project, program or policy, share

control over the content, the process and the results of the M&E activity and engage in taking or

identifying corrective actions. PM&E focuses on the active engagement of primary stakeholders.

Why is Participatory Monitoring and Evaluation important?

Participation is increasingly being recognized as being integral to the M&E process, since it

offers new ways of assessing and learning from change that are more inclusive, and more

responsive to the needs and aspirations of those most directly affected. PM&E is geared towards

not only measuring the effectiveness of a project, but also towards building ownership and

empowering beneficiaries; building accountability and transparency; and taking corrective

actions to improve performance and outcomes

What are the principles of Participatory Monitoring & Evaluation?

Conventionally, monitoring and evaluation has involved outside experts coming in to measure

performance against pre-set indicators, using standardized procedures and tools. PM&E differs

from more conventional approaches in that it seeks to engage key project stakeholders more

actively in reflecting and assessing the progress of their project and in particular the achievement

of results.

Core principles of PM&E are:

primary stakeholders are active participants – not just sources of information

building capacity of local people to analyze, reflect and take action

joint learning of stakeholders at various levels catalyzes commitment to taking corrective

actions


71

Group identifies and selects indicators

Group identifies and clarifies objectives, based on its dreams

Group identifies activities for achieving its objectives

PM&E committee systematizes & analyzes information

PM&E committee disseminates the information to the interest group

Group uses the information to make decisions

Group elects a committee to be responsible for PM&E.

Tools for recording information are

designed &implemented

1

2

3

4 5 6

7

8

Box: Stakeholder (Group) participation in M&E


72

The strengths and weaknesses of "insiders" and "outsiders" in project evaluation

Steps in Participatory, Stakeholder-Driven Evaluation

Steps In Participatory, Stakeholder-Driven Evaluation

Phase I:

Preplanning meetings (Evaluation

Coordinating Group)

Step 1: Define evaluation goal & objectives

Step 2: Identify Evaluation Team members

Step 3: Plan logistical & administrative arrangements

Step 4: Develop visual framework of the project

Step 5: Orient evaluation planning workshop facilitators

Phase II:

Evaluation planning Workshop (Evaluation Team)

Step 6: Organize stakeholders into a working group

Step 7: Define evaluation questions

Step 8: Identify data collection sources and techniques

Step 9: Develop data collection instruments

Step l0: Finalize sample of data collection sites & interviewees

Phase III: Fieldwork: preparation ,data collection

& analysis (Fieldwork Team(s))

Step 11: Prepare fieldwork teams: Data collection techniques

and logistics

Step 12: Conduct interviews & observations

Step 13: Analyze information collected

Step 14: Summarize fieldwork findings

Phase IV: Workshop to formulate lessons learned

(Evaluation Team)

Step 15: Formulate lessons learned for each evaluation question

Step 16: Team assessment of the evaluation process

Phase V: Summarize evaluation results

(Evaluation Coordinating Group)

Step 17: Summarize evaluation findings & lessons learned

Phase VI: Development of an Action Plan

(Key program stakeholders)

Step 18: Develop an action plan based on evaluation findings

Phase VII: Finalization, dissemination &

discussion of evaluation Report (Evaluation Coordinator & Evaluation

Coordinating Group

Step 19: Write evaluation report

Step 20: Distribute and discuss evaluation results with

program stakeholders

The strengths and weaknesses of "insiders" and "outsiders" in project evaluation.

Strengths Weaknesses

Insiders

Evaluate their own objectives

*responsive decisions *intuitive analytical skills

*aware of community dynamics *instant feedback to community

Poor feedback to outsiders

*subjective *have a stake in decisions made

*peer pressure experienced *afraid to challenge power

Outsiders have extra time

*can represent poorer factions of community

*not afraid to speak up

poor feedback to outsiders

*only outsider objectives/values *determine terms of measurement

*have no real stake in community


73

Steps in Participatory, Stakeholder-Driven Evaluation

Doing Evaluation –UNFPA Guidelines

Registering an NGO is the first step to get foreign funding Societies Registration Act 1860

Each state has its own rules and regulations

Century outmoded sections continues Office Bearers are not eligible for remuneration as per certain state rules

Re-registration is must in certain states Takeover provisions

Indian Trust Act, 1882

Applicable only for private trust but, can be registered as per public charitable trust No external control

It is considered non-democratic but depends on trust deed Cooperative Societies Act

Have became political weapon of ruling parties in certain states Elections are not conducted and bureaucrats are ruling in those states

Section 25 Companies

Administration has to control more time in filling forms Rules & Regulations applicable as per Companies Act

Medium & small NGOs needs proper personnel to handle the regulatory requirements

State assumptions Review all relevant existing information Conceptualize / Plan generally

Reflect, critically analyze & document lessons Embrace failures

Implement

Experiment

Revisit/ Revise assumptions Review all relevant existing information Replan

Reflect, critically analyze & document lessons Embrace failures

Implement Experiment

Revisit/ Revise assumptions Review all relevant existing information Replan

Doing Evaluation UNFPA Guidelines

What is Program Evaluation?

Program evaluation is a management tool. It is a time-bound exercise that attempts to assess

systematically and objectively the relevance,

performance and success of ongoing and completed programs and projects. Evaluation

is undertaken selectively to answer specific questions to guide decision-makers and/or program

managers, and to provide information on whether

underlying theories and assumptions used in program development were valid, what worked and

what did not work and why. Evaluation commonly aims to determine the relevance, efficiency,

effectiveness, impact and sustainability of a program or project.

Why evaluate?

The main objectives of program evaluation are: To inform decisions on operations, policy,

or strategy related to ongoing or future program interventions;

To demonstrate accountability to decision-

makers (donors and program countries). It is expected that improved decision-making and

accountability will lead to better results and more efficient use of resources.

Other objectives of program evaluation include: To enable corporate learning and contribute to

the body of knowledge on what works and what

does not work and why; To verify/improve program quality and

management; To identify successful strategies for

extension/expansion/replication;

To modify unsuccessful strategies; To measure effects/benefits of program and

project interventions; To give stakeholders the opportunity to

have a say in program output and quality; To justify/validate programs to donors,

partners and other constituencies.

What is the Relationship between Monitoring and Evaluation?

Monitoring and evaluation are intimately related. Both are necessary management tools to

inform decision-making and demonstrate

accountability. Evaluation is not a substitute for

information. Systematically generated monitoring data is essential for successful evaluations.

monitoring nor is monitoring a substitute for

evaluation. Both use the same steps (see Box 1), however, they produce different kinds of

information. Systematically generated monitoring data is essential for successful evaluations.

Monitoring continuously tracks performance

against what was planned by collecting and analysing data on the indicators established for

monitoring and evaluation purposes. It provides continuous information on whether progress is

being made toward achieving results (outputs,

outcomes, goals) through record keeping and regular reporting systems. Monitoring looks at both

program processes and changes in conditions of target groups and institutions brought about by

program activities. It also identifies strengths and

weaknesses in a program. The performance information generated from monitoring enhances

learning from experience and improves decision-making. Management and program implementers

typically conduct monitoring.

Evaluation is a periodic, in-depth analysis of

program performance. It relies on data generated through monitoring activities as well as information

obtained from other sources (e.g., studies, research, in-depth interviews, focus group

discussions, surveys etc.). Evaluations are often

(but not always) conducted with the assistance of external evaluators.

Evaluation Steps The evaluation process normally includes the following steps: Defining standards against which

programmes are to be evaluated. In the UNFPA logframe matrix, such standards are defined by the programme indicators;

Investigating the performance of the selected activities/processes/products to be evaluated based on these standards. This is done by an analysis of selected qualitative or quantitative indicators and the programme context;

Synthesizing the results of this analysis; Formulating recommendations based on

the analysis of findings; Feeding recommendations and lessons

learned back into programme and other decision-making processes.


75

The differing focus of Audit and Evaluation

Evaluation =Accountability + Learning Audit = Accountability

Characteristics of Monitoring and Evaluation

Monitoring Evaluation Continuous Periodic: at important milestones such as the mid-

term of program implementation; at the end or a substantial period after program conclusion

Keeps track; oversight; analyses and documents

progress

In-depth analysis; Compares planned with actual

achievements

Focuses on inputs, activities, outputs,

implementation processes, continued relevance, likely results at outcome level

Focuses on outputs in relation to inputs; results in

relation to cost; processes used to achieve results; overall relevance; impact; and sustainability

Answers what activities were implemented and results achieved

Answers why and how results were achieved. Contributes to building theories and models for

change

Alerts managers to problems and provides options for corrective actions

Provides managers with strategy and policy options

Self-assessment by program managers,

supervisors, community stakeholders, and donors

Internal and/or external analysis by program

managers, supervisors, community stakeholders, donors, and/or external evaluators

When do we need Monitoring and

Evaluation results during the

Program Cycle? During situation analysis and

identification of overall program focus, lessons learned from past program

implementation are studied and taken into

account in the program strategies; During program design, data on

indicators produced during the previous program cycle serve as baseline data for the

new program cycle. Indicator data also

enable program designers to establish clear program targets which can be monitored and

evaluated; During program implementation,

monitoring and evaluation ensures continuous tracking of program progress and adjustment

of program strategies to achieve better

results; At program completion, in-depth

evaluation of program effectiveness, impact and sustainability ensures that lessons on

good strategies and practices are available for

designing the next program cycle.

What is the relationship between

evaluation and audit?

Like evaluation, audit assesses the effectiveness, efficiency and economy of both program and financial

management and recommends improvement. However, the objective and focus of audit differ from that of

evaluation.

Unlike evaluation, audit does not establish the relevance or determine the likely impact or sustainability of

program results. Audit verifies compliance with established rules, regulations, procedures or mandates

of the organization and assesses the adequacy of

internal controls. It also assesses the accuracy and fairness of financial transactions and reports.

Management audits assess the managerial aspects of a unit‟s operations.

Notwithstanding this difference in focus, audit and evaluation are both instruments through which

management can obtain a critical assessment of the

operations of the organization as a basis for instituting improvements.


76

participatory program planning and management

Documents

participatory approaches

project management methodology

project teams

participatory action

main approaches

peoples participation

principles of participation

importance of participation