PROJECT REPORT ON
ROLE OF HUMAN RESOURCE IN NON-GOVERNMENTAL
ORGANIZATION
SUBMITTED IN PARTIAL FULFILLFILLMENT OF THE
REQUIREMENT OF
DEGREE OF MASTERS OF HUMAN RESOURCE
MANAGEMENT STUDIES
FROM THE UNIVERSITY OF MUMBAI
SUBMITTED BY
BHUSHAN DALVI
ROLL NO 342
SEMESTER V 2014-2017
UNDER THE GUIDANCE OF
PROF ULHAS DESHPANDE
N.L DALMIA INSTITUTE OF MANAGEMENT STUDIES AND
RESEARCH MIRA ROAD (E), MUMBAI -401 104
CERTIFICATE
Prof.Dr.
Prof.
ACKNOWLEDGEMENT
Thanking You,
Bhushan Dalvi
DECLARATION
SignatureofStudent
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Introduction
Human resource practices play a vital role as humans are the main resource to
use rest of resources. It is now being increasingly realized that the people
working in organization are human beings. Investment for increasing the
resource is important, and the more an organization invest in its human
resources, the greater return from the investment is likely to be. Human resource
practices focuses on the different aspect that can enhance the potential of an
individual not in just in the reference of an organization but in his/her personal
life. Training and developing, performance appraisal, potential appraisal, career
counseling, employee welfare, health and safety are few of them.
INTRODUCTION
A non-governmental organization (NGO) is a not-for-profit organization that is
independent from states and international governmental organizations. They are
usually funded by donations but some avoid formal funding altogether and are
run primarily by volunteers. NGOs are highly diverse groups of organizations
engaged in a wide range of activities, and take different forms in different parts
of the world. Some may have charitable status, while others may be registered
for tax exemption based on recognition of social purposes. Others may be fronts
for political, religious, or other interests.
The number of NGOs in the world wide is estimated at 3.7 million. Russia has
277,000 NGOs. India is estimated to have had around 2 million NGOs in 2009,
just over one NGO per 600 Indians, and many times the number of primary
schools and primary health centres in India.
NGOs are difficult to define, and the term 'NGO' is not always used
consistently. In some countries the term NGO is applied to an organization that
in another country would be called an NPO (nonprofit organization), and vice-
versa. There are many different classifications of NGO in use. The most
common focus is on "orientation" and "level of operation". An NGO's
orientation refers to the type of activities it takes on. These activities might
include human rights, environmental, improving health, or development work.
An NGO's level of operation indicates the scale at which an organization works,
such as local, regional, national, or international.
The term "non-governmental organization" was first coined in 1945, when the
United Nations (UN) was created. The UN, itself an inter-governmental
organization, made it possible for certain approved specialized international non-
International Red Cross and Red Crescent Movement is the world's largest
group of humanitarian NGOs. Though voluntary associations of citizens have
existed throughout history, NGOs along the lines seen today, especially on the
international level, have developed in the past two centuries. One of the first
such organizations, the International Committee of the Red Cross, was founded
in 1863.
Globalization during the 20th century gave rise to the importance of NGOs.
Many problems could not be solved within a nation. International treaties and
international organizations such as the World Trade Organization were
perceived as being too centred on the interests of capitalist enterprises. In an
attempt to counterbalance this trend, NGOs have developed to emphasize
humanitarian issues, developmental aid and sustainable development. A
prominent example of this is the World Social Forum which is a rival
convention to the World Economic Forum held annually in January in Davos,
Switzerland. The fifth World Social Forum in Porto Alegre, Brazil, in January
2005 was attended by representatives from more than 1,000 NGOs.
EVOLUTIONARY STAGES OF DEVELOPMENT NGOS
Three stages or generations of NGO evolution have been identified by Kortens
(1990) Three Generations of Voluntary Development Action. First, the typical
development NGO focuses on relief and welfare, and delivers relief services
directly to beneficiaries. Examples are the distribution of food, shelter or health
services. The NGO notices immediate needs and responds to them. NGOs in the
second generation are oriented towards small-scale, self-reliant local
development. At this evolutionary stage, NGOs build the capacities of local
communities to meet their needs through 'self reliant local action'. Korten calls
the third generation 'sustainable systems development'. At this stage, NGOs try
to advance changes in policies and institutions at a local, national and
international level; they move away from their operational service providing
role towards a catalytic role. The NGO is starting to develop from a relief NGO
to a development NGO.
TYPES OF NGOS
Apart from NGO` oftentimes alternative terms are used as for example
independent sector, volunteer sector, civic society, grassroots organizations,
transnational social movement organizations, private voluntary organizations,
self-help organizations and non-state actors (NSAs).
These include:
INGO stands for international NGO, such as CARE, Helvetas (Swiss Association
organization;
ENGO, short for environmental NGO, such as Global 2000;
actually not purely an NGO, since its membership is by nation, and each
nation is represented by what the ISO Council determines to be the 'most
broadly representative' standardization body of a nation. Now, such a
body might in fact be a nongovernmental organization--for example, the
United States is represented in ISO by the American National Standards
Institute, which is independent of the federal government. However, other
There are also numerous classifications of NGOs. The typology the World Bank
uses divides them into Operational and Advocacy:
scholars have argued that this definition is highly problematic as many NGOs
are in fact state and corporate funded and managed projects with professional
staff.
PURPOSES
NGOs exist for a variety of purposes, usually to further the political or social
goals of their members or funders. Examples include improving the state of the
natural environment, encouraging the observance of human rights, improving
the welfare of the disadvantaged, or representing a corporate agenda. However,
there are a huge number of such organizations and their goals cover a broad
range of political and philosophical positions. This can also easily be applied to
private schools and athletic organizations.
AIM:
There are many problems which could not be solved effectively within a
country. NGO emphasize the core issue related to human cause related to
sustainable development, development aid and other humanitarian issues. It
helps to raise the cause of the people, in the world social forum. They invite
the donors from various parts of the world, or within the country and gives in
hands of the real needys in the form they are in need of. The aim of the NGO
may differ, but the motto is common, to benefit the underprivileged by any
reason.
NGOs vary in their methods. Some act primarily as lobbyists, while others
conduct programs and activities primarily. For instance, such an NGO as
Oxfam, concerned with poverty alleviation, might provide needy people with
the equipment and skills they need to find food and clean drinking water.
Public Relations
Consulting
STAFFING
Not all people working for non-governmental organizations are volunteers. Paid
staff members typically receive lower pay than in the commercial private sector.
Employees are highly committed to the aims and principles of the organization.
The reasons why people volunteer are not necessarily purely altruistic, and can
provide immediate benefits for themselves as well as those they serve, including
skills, experience and contacts.
FUNDING
Large NGOs may have annual budgets in the millions of dollars. For instance,
the budget of the American Association of Retired Persons (AARP) was over
$540 million dollars in 1999. Human Rights Watch spent and received US$21.7
million in 2003. Funding such large budgets demands significant fundraising
efforts on the part of most NGOs. Major sources of NGO funding include
membership dues, the sale of goods and services, grants from international
institutions or national governments, and private donations. Several EU-grants
provide funds accessible to NGOs.
Years after R2P, the World Federalist Movement, an organization that supports
"the creation of democratic global structures accountable to the citizens of the
world and call for the division of international authority among separate
agencies" has launched Responsibility to Protect - Engaging Civil Society
R2PCS. The project, which is a collaboration of the WFM and Canadian
government, aims to bring NGOs into lockstep with the principles outlined
under the original R2P project.
2. GOONJ: A recipient of the NGO of the Year award in 2007 at the India
NGO Awards, this NGO aims at solving the clothing problems of the
downtrodden. Goonj also provides relief during Rahat floods in West Bengal,
Assam and Bihar.
3. AKSHAYA TRUST: The sole aim of this NGO is to restore human dignity.
Operating in Madurai, this NGO offers rehabilitation, healthy food and care to
the street destitute.
7. LEPRA Society: This NGO aims at prevention and control of diseases like
AIDS, leprosy and tuberculosis in poor communities.
10. HELPAGE INDIA: Established in 1978, the sole aim of this NGO is to
provide resources to the elderly people of our country. Their objective is to
make aware the senior citizens of their rights and protect the rights of the senior
citizens of our country so that they can also play a key role in our society. They
also work with the government (both local and national) to implement policies
that will be beneficial to the senior citizens of our country.
A famous Indian NGO, Chintan was the first in India to receive the US
Innovation Award for Empowerment of Women and Girls, for its outstanding
contribution in this field. The award was received by Chintans founder Bharati
Chaturvedi from the US Secretary of State, Hillary Clinton. A further aid of
USD 5,00,000 was announced by the US Secretary of State to facilitate
Chintans endeavor to continue its noble efforts. The Award is funded by the
Rockefeller Foundation through the Secretarys International fund for Women
and Girls.
India was estimated to have had around 3.3 million operational NGOs in 2009.
The figure has no doubt increased in 2013. The best part about Indian NGOs is
that they dont blow their own trumpets and do their work seriously and
sincerely. They contribute more than their fair shares for the upliftment of the
society and enrichment of the lives of hapless and downtrodden people of India.
Without their contribution, it would have come as no surprise if the picture of
India was as grim as those of sub-Saharan countries.
CRITICISM
In many developing countries with dysfunctional economies, entry into the aid-
industry is the most profitable professional career path for young college-
graduates. As NGOs provide services in the community for free or at subsidized
rates (such as training), the private-sector is unable to evolve and compete
effectively as sustainable levels. Once an NGO begins offering products or
services for a fee (handicrafts, evaluations, digging wells, counseling, etc.), they
will over time inevitably compete with private-sector providers of these same
services. But with their donation-funding support or access to voluntary labor,
they have a significant competitive advantage. Co-option (by political or other
forces), mission-drift, changing core services based on an ever changing
funding landscape, transparency, accountability, moving beyond a charismatic
founding leader, and donor-driven rather than self-defined strategies are some
additional areas for concern. New NGOs occasionally receive 'do-gooder'
complaints of engaging in action to help, without understanding the full
complexity and interplay of issues, resulting in doing more harm than good. But
again, in general, NGOs are viewed as a beneficial complementary source
filling gaps in society not provided by the public or for-profit sectors. NGOs
have also played a crucial role in upholding International Law, especially
United Nations treaties. Their work continues to be the leading factor in social
and political change.
WHAT IS HUMAN RESOURCE (HR)?
Scott, Clothier and Spriegel have defined Human Resource Management as that
branch of management which is responsible on a staff basis for concentrating on
those aspects of operations which are primarily concerned with the relationship
of management to employees and employees to employees and with the
development of the individual and the group.
What is the role of HR in the company? This basic question must be addressed
first by the businesses to assure their success in the competitive climate of the
business world. It is common to all organizations to have HR (Human
Resource) Department. HR includes the talent management and organization
design. According to HR professors, HR is a one-stop shop for all employee
issues. HR looks for resolutions of the problem regarding employees. HR units
are formed to operate as the employment heart. HR is involved in making plans
for the organizations for the future. HR performs significant administrative
function like selection, evaluation, and payroll processes. As time pass by all
the activities of HR professionals has become more significant and more
complex. The degree of their workload has gone through tracking innumerable
data points on each employee, from personal histories, data, skills, capabilities,
experiences to payroll records.
Over the past years, the changes to human resource management have
gone rapidly. Most HR functions transformed faster. A study conducted
by(1995) notes that the traditional HR function represents an industrial
enterprise model. Playing a reactive and often subordinate role, HR (still
referred to by many as "personnel") limited itself to three sets of
responsibilities: a) administering personnel compliance functions; b) processing
personnel transactions; and c) sponsoring community and employee welfare
projects. According to (1998) HR has become a strategic partner of many
organizations in transforming the function from a low-level expense center to a
more visible and responsive investment center. (1997), & (1995) and
(1994) explain that one key dimension of this transformation is globalization,
incorporating the perspectives, customs, and laws of other countries into
effective HR policies.
Nowadays HR is playing a strategic role in the organizations. HR has risen
from its mere operational importance and has become partner of the business to
meet strategic goals. HR is now playing a role in giving a strategic drive for the
development of the organization. With the help of HR activities business plans
for every unit in the company has become synchronized. In addition, HR
competency development has become the means to achieve organizations
strategic plans. The transformation does not only happen on management
functions but also to the functions of the personnel. Today HR business-oriented
personnel who specialize in strategic HR are being criticized because they have
lost touch with the traditional operational side of HR.
HR PROFESSIONALS
Staffing/resourcing/hiring
This category involves the responsibility of getting the right people for
the appropriate role or position in the company.
Evaluating/rewarding
Developing/maintaining culture
Managing/controlling
The role of the HR manager is transforming and answering the changes that
occur in his organization. In order for the organizations to succeed in
business environment they are now becoming adaptable, elastic, quickly
respond to changes and has become customer-centered. (2001) explains that
the HR professional must balance the roles of being a change agent, an
administrative expert, a strategic partner, and an employee champion.
ROLE OF HR IN NGO
If Non Governmental Organizations can play better role in the corporate social
responsibility, the question here is who can play better role in linking industry
with community. The answer here is Human Resource Management Department
of the industry. The HR managers should take lead in its effort to make a
linkage between community and the industry. To develop better rapport with the
people, HR managers have to make use of their Strategic Relationship
Management Skills. They should interact with the community by establishing
better linkage with the Non Governmental Organizations working there in the
locality.
The HR managers can initially conduct Focus Group Discussion (FGD) with the
community and community leaders with the help of Non Governmental
Organizations and need evaluation and need prioritization is to be conducted.
NGOs are the vanguard of civil society. They have increasingly been seen as the
vehicles of the new polices agenda of economic liberalization and political
channelling resource through northern and indigenous NGOs support grassroots
organizations, social change, political empowerment and sustainable
development. Developing states have ceded space to NGOs to deliver services,
perform contract development work and promote institutional capacity building.
The Human Resource Management for NGOs here aims to make small and
medium-sized NGOs understand and assess organizational behavior and
functioning; manage organizations through planning, implementing and
monitoring activities strategically; improve the performance of their staff; build
effective management systems, policies and plans and improve long-term
sustainability and resource mobilization.
Importance of HR in NGO
Here is an interesting introductory video from the Society for Human Resource
Management that explains how important it is to develop human resources to
achieve progress.
Human Resource Information System for NGO Employees
The Human Resource Information System (HRIS) is a database that records and
maintains information about all employees in an organization. This system is
useful in job recruitment, developing terms of reference, and monitoring,
assessing and coordinating work with each of the employee. This system also
ensures transparency of the organization in employing people.
Although this kind of information system is also used for carrying out job
analysis and career development of an employee is larger organizations, here is
a simple format which NGOs can use to record and store data related to their
employees.
It is better to use a Microsoft Excel sheet to fill in the information, save the file
in the computer and take a printout and file it at a safe place. The document
should be easily accessible for others to see.
Staff Recruitment Policy for NGOs
Staff recruitment is the process of hiring staff to carry out various activities in
an organization. In NGOs, staff recruitment is mostly determined by the
availability of ongoing projects and how they have been budgeted.
Nevertheless, staff recruitment is essential because many donors seek to know
what policies grantees have adopted in terms of hiring personnel for projects
funded by them.
6. Evaluation
A Simple Format for NGOs to write Job Descriptions for their
Staff
It clearly outlines the role and responsibilities of each staff working in the
organization and how the person is contributing to the overall vision of the
work.
It helps in recruiting the most suitable candidate for the expected job work
and it can be used for job advertising purposes as well.
A clear record of tasks listed in the job description also enables the
organization to provide better orientation for newly recruited staff.
Job descriptions are also useful for accounting and financial management
systems
A job description plays an important role for the organization in monitoring
and evaluating the performance of the staff.
Using the Annual Performance Plan for NGO Employees in
Performance Management System
The Annual Performance Plan is developed jointly by the NGO supervisor and
the employee together after discussing and planning the objectives, activities
and results to be undertaken by the employee. The Performance Plan for the
year specifically outlines the targets to be achieved by the employee over the
year and these targets will be used as benchmarks during the annual evaluation
and appraisal.
Position held:
Eg. Improve the capacity of Better delivery of services to Providingtraining and exposure
the field workers communities visits to field workers
Eg. Mobilization Availability of increased Researching donors, finding
of fundingresources for funding for the organization funding opportunities,
theorganization writingproposalsetc.
. . .
. . .
Activities Months
Jan Feb Mar Apr May June July Aug
Eg. Conducting a
baseline survey
Eg. Organize
ahealthcamp
.
.
.
Challenges
The following are the human resource problems identified within the local
NGOs;
Some of the local NGOs sampled do not have in place HR guidelines that
support staff management. Where they exist they are not utilized and are
instead used as tools to get donor funds. Much of the staffing
management issues are done in an adhoc manner and it is never clear
what the employee is expected to do at a given time. In some
organizations the policies that exist are not aligned with government
labour policies. For example the government has a policy that a nursing
mother will be given three months leave with pay but in some
organizations they gave either one month or the policy was not included
at all. Some NGOs did not have contracts, job descriptions or letter of
appointments for the staff. It is therefore difficult to get records of when
staff were employed, what they are entitled to, length of contract and
what their responsibilities were. In some organizations because they did
not have contracts some of them went without pay during some months,
were never given leave breaks from work, were deducted some of their
pay for some unexplained expenses by management.
In some organization a staff was placed in a position that they did not have
the required competency or the skills to perform the tasks adequately. For
example a staff trained in procurement was recruited as an accountant or an
engineer as a program coordinator in a health project. In other scenarios
those holding management positions did not have the relevant skills or
knowledge to support the other staff they supervised. These scenarios
resulted to poor performance in the organizations as the staff was not able to
undertake their duties effectively. Local NGOs need to understand that they
cannot succeed if employees perceive they are underutilized or are utilized at
the wrong time or in the wrong position.
Many local NGOs are entering into alliances and partnerships with either
National or international organizations, business or government, and
these engagements require them to recruit or restructure their human
resources to exploit the new opportunities. This means staff appointments
are sometimes project based, contractual and for specified periods. In
some organizations there exist 2-3 projects supported by different donors
who may unfortunately implement different salary schemes and work
practices and this creates conflicts within the organization and creates
management challenges. Where organizations are in partnership with a
donor agency and the donor does not provide funds to hire additional staff
then the existing staff are sometimes required to take up multiple roles
without having the necessary skills required. This causes an increase in
workload, stress, dissatisfaction among staff and eventually causes
underperformance of the entire organization.
Many local NGOs made the assumption that the staff they recruited had
the skills required to perform their duties. Yet many fail to realize that the
staff recruited need to understand the organization mandates and projects
for them to work effectively. Many young people joining local NGOs felt
that there is not enough mentoring or clear career direction, while at the
same time there is a pressure to learn and deliver on the project outcomes.
Staff in some of the local NGOs felt their supervisors did not give them
clear guidance about the day to day tasks required to perform their roles
and this scenerio was made worse where there were no job descriptions.
This resulted in supervisors setting unrealistic demands on the staff or the
staff ended up not undertaking the tasks as required.
Many staff felt the organizations did not reward or recognize staff for
good or exemplary performance and sanctions against poor performers
was something that many of the organizations failed to address or
ignored. Some staff felt that as long as the staff was linked or perceived
to be loyal to management poorly performing staff would remain in
service for long without any action being taken. This caused tensions
among those who felt they worked extra hard to contribute to
achievement of organization objectives yet they were not recognized for
their efforts. It was noted that the criteria for allocation of benefits was
not clear and was mostly associated with loyalty to management rather
than performance.
Recommendations
I see there is a need for local NGOs to borrow and contextualize best and
promising HRM practices used by the business sector to improve organizational
HR management. This will address the issues that arise as a result of having
adhoc HRM practices that are influenced by the founders of the local NGO or
are not contextualized to fit the context in which an organization operates.
The following are posible solutions that would be relevant if adopted and
implemented to address the current challenges that local NGOs have in
managing human resources. There is evidence that the earlier small
organizations adopt HRM approaches and the extent to which they invest in the
practices and people, have long-term impacts on organizational growth and
survival.
Local NGOs need to develop structures and create opportunities that will
fully utilize the potential of their employees. People are undervalued, not
adequately trained, underutilized and poorly motivated in many
organizations and consequently perform well below their true capability.
Many employees feel they are wasted and not given the opportunity to
develop their capacity or use the knowledge they have gained in similar
previous positions. Local NGOs need to use different approaches in job
design/redesign and placement so that they can adequately utilize their
existing staff capacity. Organizations need to employ talent management
processes that involve instituting initiatives to utilize and develop
capacity of personnel. The local NGOs can develop simple human
resource information database which they can use to record and store data
related to their employees. This will help in tracking the skills available
that are not utilized and those that are lacking and need to be developed.
Outsourcing HR Functions
Local NGOs that are small and lack the adequate funds to have a HR unit
and find the different HR functions intensive and complex to manage
from within can consider outsourcing. Some key HR functions that can
be outsourced may include; development of organizational policies and
practices, career development, staff counseling, recruitment and selection.
This is especially important for local NGOs whose size is not too large to
warrant having an internal HR team.