Module 1:
Organisational Management
Rationale
Board and
Management have distinct and separate functions in principle but in practice
these often become confused, resulting in frustration and even conflict. This
module aims to clarify the different functions and responsibilities of Board
and Management.
Statement of
Learning Outcomes:
*Understanding
the different functions and responsibilities of Board and Management
* Be able to
use this understanding to clarify roles and procedures in one's own
organisation
Performance
Criteria:
Participants
will be familiar with the separate functions of Board and Management and will
be able to apply this knowledge to their own organisations.
Assessment
of Performance:
Questions
Lesson 1:
Governance and Management Functions
NGO's are
Accountable to their Communities and Members
NGO's are
founded on the principle that citizens have a right to associate freely.
Therefore,
NGO's pursue activities that meet a public or community need rather than
private profit-making interests. By acting responsibly, an NGO shows its
commitment to serving the public interest. Responsible behaviour in an
organisation is also known as Good Governance. Governance is the responsibility
of the Board of Trustees.
But the mere
existence of a Board is not enough. It is the way that the Board functions and
supports management that ensures a well-run organisation.
Board and
Management are Separate
What is the
difference between Board and Management?
*The Board
decides mission, policy and strategy, as well as general oversight of the
organisation's performance and resources such as funds, staff and assets(
including offices, equipment and vehicles).
*Management(represented
by the Director and senior staff) focuses on the implementation of the
strategies, policies, programmes and day-to-day activities. Managers should be
free to decide how they implement agreed programmes and policies.
Of course,
this doesn't mean that staff has nothing to do with strategy. The Board relies
on staff for information and advise in
developing strategic and policy decisions.
Why do we
need separate bodies?
A basic
principle of Good Governance is that Board and Management are separate. In
order to understand the importance of this separation, imagine an organisation
where paid staff are also Board members. In such a case the staff would be able
to decide their own salaries, working hours and special benefits. There would
clearly be a serious conflict of interest. A separate Board, therefore, acts as
a check on Management.
In small or
newer NGO's the separation of Board and Management can sometimes be difficult
to put into practice. If financial and human resources(staff and volunteers)
are limited, Board members often volunteer to perform the duties of staff. This
can be confusing and frustrating for staff. Finding enough funds to pay for
qualified staff as well as enough Board members to serve on a voluntary unpaid
basis may be challenging in the early life of an NGO. But in the long run it is
essential for Good Governance.
A Board can
rely so heavily on the Director that a seat on the Board table may seem
essential. There are many arguments for and against having the Director on the
Board. The solution that some NGO's rely on is to include the Director on the
Board as a non-voting member. This often referred to as 'ex officio'
membership. Of course, in this case the Director will have to absent when
discussions take about topics that concern him or her directly, such as salary
and performance.
Under NO
circumstances should the Director also serve as Chair of the Board. Such
concentration of power in the hands of one individual severely undermines
accountability( responsible behaviour) throughout the entire organisation.
Board and
Director Responsibilities
The Board's
Responsibilities
A Board's
basic duties are to set policy, exercise oversight, and provide strategic
direction in the following areas:
*Mission:
The Board safeguards the NGO's mission by making sure there is a clear sense of
mission shared throughout the organisation, a good mission statement and
appropriately planned programmes and services.
* Values:
The Board defines organisational values and sets the standard for professional
conduct through its own behaviour as well as in the policies it establishes for
others to follow.
* Resources:
The Board ensures that the NGO has adequate resources-finances, staff,
equipment and office space.
*Outreach:
The Board promotes the NGO in the community and serves as a link with members,
donors, beneficiaries, and other stakeholders.
#The Board
is also responsible for hiring the Director and for defining his/her job
description.
The
Director's Responsibilities
Duties
normally include:
* Hiring,
firing, and supervising the staff.
*Identifying,
acquiring, and managing resources.
*Preparing
and annual budget.
*Managing,
monitoring and evaluating programs and operations.
*Proposing
policies and strategic initiatives to the Board.
*Communicating
with stakeholders.
*Promoting
the organisation in the community.
*Keeping the
Board informed about the organisation's work
Board and
Director Coordination
Although the
Director reports to the Board's Chair, on a practical level the Board and the
Director work best together when the relationship is a horizontal and cooperative
one.
Each one of
them plays a supporting role for the other, offering advice and encouragement
when needed.
The most
important key to success is good communication, for which the Director and
Board Chair share equal responsibility.
Suggestions
for building rapport between the Chair and the Director
1. Schedule
a regular chat together, either in person or on the telephone
2. Answer
each other's telephone calls and, if you have access, emails promptly. Not only
is this common courtesy, but it shows that you take each other's concerns
seriously.
3. The Board
Chair should give regular feedback to the Director about his performance and
undertake his/her performance review.
4. The
Director should show his/her values the Chair's input. Asking for the Chair's
advice can help you with the hardest parts of your job and let you know what
your Board is thinking about.
Case Study
Activity
Read the
following case study and discuss whether there are similar situations that you
know of. Explain how your organisation can avoid ever being in such a
situation.
Case study:
The Chief, the Director and the Money
Organisations
such as Help International that work directly with Community Based
Organisations and support their capacity building, encourage COBs to include
the village leadership( the chiefs) in setting up, but not serving on the
governance structure. There have been cases where chiefs were invited to serve
mainly on the basis of their wisdom. This is usually done in good faith. In one
of such cases' however it led to some problems.
Some time
ago, Help International partnered with an established CBO from the HIV/AIDS
sector in Dowa. The CBO included the chief as a member on their governing body,
which they call the Steering Committee( SC). The chief and the director of the
CBO were very close. The CBO received funds for an HIV/AIDS intervention, but
after no implementation had taken place and stories started going around that
the director and the chief had taken the money for themselves.
The
community complained and Help International went to investigate. At first the
director blamed the chief for taking the money, but it later turned out that
the director had lied and that the chief did not take the money. The chief got
drawn into the mess because he was too close to the Director. The community
ended up by suspending the Director and banning him from the community. The
chief acknowledged that he should not have been involved in the SC.
The chief is
powerful-the community members could not go to him and tell him that he and /or
his friend the Director were taking the money. If he was not part of the SC,
the people could, however, have gone to him openly and he could have sorted the
situation out in his role as chief.
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