POSDCoRBEF

Introduction

It is not difficult to see why social workers need

to know the role and functions of managers in formal

organisations. Social work profession seeks to improve

the well-being of the clients by providing a variety

of services. In most cases these services are provided

through governmental or non-governmental

organisations. A social worker, therefore, is often

part a large organisation and has to perform his

or her functions within such organisations.

Also, as the social workers grow professionally they

attain higher positions in the organisation. Their

role in the direct provision of services diminish and

their role as a manager gain significance. However

since the ultimate goal is the provision of welfare

services, social work administrator cannot be a

bureaucrat or a manager with concern only for

efficiency. Social work values will form the base for

the administrative decisions taken in the context

of service delivery.

POSDCoRBEF

POSDCoRB is an acronym which social welfare

administration has borrowed from management theory.

The classical management thinker, Luther Gullick

gave this acronym to describe the functions of a

manager in an organisation.

POSDCoRB stands 

P – Planning

O – Organising

S – Staffing

D – Directing

Co – Coordinating

R – Reporting

B – Budgeting 

This easy-to-remember acronym has become popular

with management theorists. Social workers have

also been using it to describe functions of social

welfare administrators. It was later felt that an

important component namely Evaluation (E) and

Feedback (F) were left out and so they were added

to the acronym and it became POSCoRBEF.

Let us now examine each of these functions in

detail.

Planning

According to Terry and Franklin ‘Planning is selecting

information and making assumptions regarding the

future to formulate activities necessary to achieve

organisational objectives’.

Every organisation does some form of planning, as

they have to prepare for the future. In large

organisations, planning is done by a separate division

or department which generally reports to the Chief

executive. Planning, here, is a highly specialized

area, as a number of factors have to be taken into

consideration. The department includes experts from

diverse fields such as economics, statistics,

management, etc. When any organisation operates

in more than one region or country, the complexity

of the planning process increases. In smaller organisations, the task is entrusted to staff members,

who handle other work but have the competence

and knowledge to do the planning function; do

planning. Either way planning is an important activity

of the administrator.

Major Steps in Planning

1) Define the problem.

Understanding the problem and its various

dimensions is the first step in the planning process.

Many experts say that if the problem is adequately

defined half the problem is solved.

2) Collect all relevant data and information about

the activities involved.

The sources of information can be from within

the organisation and outside it. The organisation

can use outside sources of information like

government reports, policies, legislations, Planning

commission documents etc. Sources from within

the organisation include policy statements, agency

reports, evaluation reports, minutes of meetings,

documents etc.

3) Analyze the information.

An enormous amount of data may be collected

from various sources. But if they are not seen

from the organisational perspective then they

cannot be of much use. Every component has

to be seen as part of the larger whole. Cause

and effect relationships have to be established.

4) Establish planning criteria and standards.

Planning criteria are assumptions on which the

plan is to be formulated. The criteria will be

drawn from the organisation’s ideology, socioeconomic factors, information gathered and the

priorities of the decision-makers. These criteria will form the basis on which different action

plans will be judged.

5) Preparation of different action plans for achieving

the goal.

Most organisations formulate a number of tentative

plans. This enables the decision-makers to choose

among the alternatives available based on its

advantages and disadvantages.

6) Decide on one plan from the different alternative

plans.

The Plan should be workable and cost effective.

It should be realistic enough to be implemented.

Often it is said that the plan was good but its

improper implementation ruined it. A good planner,

therefore, will take into account these factors

that impede implementation. A planner should

also take into account strengths and weaknesses

of the implementing agency.

7) Arrange detailed sequence and timing for the

plan.

Decide what activities have to be carried out

and when. Time is an important but scarce resource

and maintaining the time schedule is therefore

important.

8) Provide channels for feedback.

Constant feedback and monitoring are necessary.

It will help identify shortcomings in the plan

and its implementation. Some part of the plan

may have to be modified if unforeseen factors

influence the implementation process.

9) Implement the Plan.

The success of any plan sets on its effective

implementation.10) Evaluate the plan performance.

The last step of planning profess in the evaluation

of its performance. At his stage only the success

or failure of a plan is judged.

Advantages of Planning

1) Planning brings direction and order into the

functioning of the organisation. When objectives

are set and various steps needed to achieve these

goals are clear, employees can make decisions

easily. All efforts will be focused towards the

desired results and unproductive work will be

minimized.

2) The planning process gives an idea about the

future. Any exercise in planning has to study

how different political, social, economic and

organisational factors will affect the functioning

of the organisation. Further, threats and

opportunities have to be studied and ways to

deal with them should be identified.

3) ‘What if’ questions are consequences of decisions

that the organisation will have to take in future

while dealing with specific situations which may

come up. Complex sets of variables have to be

studied and their relationship with the situation

understood if these questions have to be answered.

For example, the additional financial costs have

to be calculated, if the organisation has to function

in new areas.

4) Planning gives a basis for enforcing accountability

and control.

Accountability and control are important elements

in the organisation. Control of the organisational

functioning through planning can be internal as

well as external. When an organisation formulates

a plan and makes it public, it is making itself accountable to the society. The organisation’s

actual performance will be judged on the basis

of the plan objectives.

Within the organisation also, the plan fixes targets

and deadlines. The employees have to achieve

these targets or else, give reasons for their

failures. This condition imposes a sense of

responsibility on the organisation’s functionaries.

Further, the manager can check from time to

time whether the organisation is able to meet

its interim targets and is moving towards its

objectives.

5) Encourage Achievement

Well-established and achievable targets and time

schedules encourage employees to take efforts

to attain them. That improves the morale and

motivation of the employees.

6) Compels a view of the whole

Managers often become so involved in the affairs

of their own department that they lose sight of

the overall objectives of the organisation. Managers

also, have the tendency to give their attention

to the immediate, but routine tasks, which keep

coming up in any organisation. Long-term needs

of the organisation are sidelined and effectiveness

of the organisation is adversely affected. A plan

gives a vision to the employees helping them

focus on the broader and long-term view.

7) Increases the balanced utilization of resources

Resources are always limited and their prudent

use is important. Plans help effective use of

resources.

Disadvantages of Planning

The planning process has some disadvantages also.

Planning consumes too much of already scarce resources of the organisation. A lot of money, time

and human resources are spent when a plan has

to be formulated. At times there seems to be no

corresponding benefit. Secondly, planning often

demands changes in organisation’s functioning and

the roles of the employers. This threatens people

who are afraid of new work situations and loss of

their status. Thirdly, planning affects initiative of

lower level managers adversely. As emphasized earlier,

planning should only give broad direction to the

managers. But if the plan is too rigid and does not

give enough flexibility to the managers, planning

may restrict their initiative. Planning, in general,

tends to increase centralization of authority in the

hands of the top executive in the headquarters at

the cost of the lower level mangers operating in

the field. Fourthly, planning as managerial activity

is seen as having limited value. Sometimes planning

is too theoretical and cannot be related to real life

situations. Many factors that are found in real life

cannot be taken account of when the plan is being

formulated. Further the planner assumes that there

will be no change that is so big that the relationship

between the variables could change drastically. For

example, an NGO which makes its plan on the basis

that the donor agency will provide funds for a specific

period will face difficulty if the donor agency stops

its funding.

Types of Plans

Strategic Planning

Strategic planning (also called long-term planning)

has two important elements. It covers a long period

of time which may extend from five to twenty or

more years and secondly it covers mostly all the

activities within the organisation. In other words,

it is long-term and comprehensive planning.Operationalised Planning

Operationalised Planning is also called tactical planning

and it indicates the specific activities to be taken

so that specific goals are to be achieved. Compared

to strategic planning, operationalised planning is

short-term and deals with specific areas. These two

types of planning are not inclusive. Strategic planning

depends on the operationlised planning for achieving

its goals.

Organising

Organising means establishing effective behavioural

relationship among persons so that they may work

together efficiently and gain personal satisfaction

in doing selected tasks under given environmental

condition for the purpose of achieving some goal or

objective.

The need for an organisation emerges when one

individual cannot perform all the necessary tasks.

As number of individuals increase, they are further

divided into groups each of which are given a specific

set of tasks to perform. How and on what basis

these tasks are divided among individuals and group

is the role of ‘organising’ in management.

Need for Organising

1) Clear-cut lines of authority and responsibility

in an organisation are created which help in

controlling and leading the organisation.

2) There are lesser opportunities for organisation

conflicts if organisational responsibilities are clearly

defined.

3) Organised groups and organisations are more

likely to give satisfaction to the employees and

thereby positive results for the organisation.  Elements of Organising

There are four important elements in organising –

division of labour, degree of centralization and

decentralization, departmentalization and span of

control. Division of labour means that the total work

of the organisation is divided into smaller units

and distributed among the employees. Work is allotted

to person most suited to do it. It allows the employers

to attain proficiency in their work and thereby increase

the efficiency of the organisation.

Centralization and decentralization refers to the

degree to which authority is distributed among the

various levels of the organisation. If authority is

distributed in such a way that majority of the decisions

are taken by the top managers then the organisation

is called centralized. On the other hand, if the

lower levels of the organisations have authority to

make decision—without seeking approval from the

top level managers than the organisation is called

decentralized. Important decisions include those

related to financial matters, programme schedules,

administrative matters, staff problems, etc. The degree

of centralization and decentralization depends on

a number of factors like organisational history, level

of trust in the organisation, subordinate’s staff

competence, technology available etc. Excessive

centralization is likely to reduce employee’s motivation

and discourage initiative. It is also time consuming

when every decision has to be referred to the top

and approval obtained for the same. The quality of

decisions making may also suffer, as often it is the

lower level staff that know the local conditions better.

On the other hand, too much decentralization is

also harmful. Decentralization may result in declining

control of the top management. Consequently employees

at the lower levels may engage in empire building

at the cost of neglecting organisational objectives.

Coordination in the organisation may suffer as each part may chart its own course. Chaos and indiscipline

will be the result.

Departmentalization refers to the formal structure

of the organisation composed of various departmental

and managerial positions and their relationship to

each other. Departments are formed on the following

basis – function, product, territory, clients and process.

Some examples are provided here of departments

based on these factors.

Function based departments – Marketing

department, Personnel department. Planning

department, etc.

Product based departments – Micro-credit

department, water and sanitation department

etc.

Territory based departments – Northern Railways,

Southern Railways, Eastern Railways.

Client-based departments – Women and child

department, Welfare of SC/ST.

Process-based departments – Marketing, Planning,

administration etc.

There are at least three departments which will

almost inevitably be present in every  organisation.

They are namely administration, accounts and services.

Most of the large organisations have departments

based on more than one factors.

Span of control refers to the number of subordinates

an individual can supervise  and control. Control is

not to be seen as something narrow and negative.

It refers to the superior’s guidance, encouragement

and appreciation provided to  the subordinates.

Management experts recommend that no superior

can control more than five or six subordinates without

decline in the quality of supervision. Staffing

Staffing is the management function that deals with

the recruitment, placement, training and development

of organisation members. Any organisation is as good

as it’s employees’ performance shows. Staff of the

organisation should be selected, retained and promoted

based on the needs of the organisation and their

performance.

Staffing Process

Human Resource Planning should take into

consideration the following internal and external

factors. The internal factors that need to be taken

into consideration are the present and future skill

needs, vacancies, areas of priorities of the organisation

and its financial condition. External factors include

the policies of government, donor agencies, collaborating

organisations, the labour  market  etc.

Recruitment: Recruitment is concerned with

developing a large pool of job for candidates in line

in view of the needs of the organisation. This can

be achieved by giving wide publicity to the position

available and attracting many as eligible candidates

as possible for the positions.

Selection: Selection involves evaluating and choosing

among the job candidates. A number of means like

interviews, group discussion, and skill tests are used

to select the candidates.

Induction and Orientation:  After selection, the

newcomer has to be helped to fit into the organisation.

They are introduced to their colleagues, acquainted

with responsibilities and informed about organisation

policies and goals.Training and Development: The process of training

and development aims at increasing the knowledge

and skills of the employees along with attitudinal

changes. The overall aim is to increase organisation’s

productivity and employee’s level of job satisfaction.

Performance Appraisal: Performance appraisal aims

at judging the performance of the employee’s and

his/her contribution to the organisation. Performance

appraisal has to be done on the basis of objective

standards and not on the whims and fancies of the

superior officer. Further the employee should have

a clear job profile and should know on what basis

he or she is being judged. If performance is satisfactory,

the employee may be rewarded and if it is not,

corrective action is to be taken.

People join organisations not merely for monetary

gains. They also look for satisfaction of their social

needs, self-esteem needs and emotional needs. In

any case, after a person has achieved financial security,

he or she will most probably seek other kinds of

fulfillments namely pride in the job, a sense of

achievement, satisfactory associations at work place,

autonomy to function independently, etc. It is up

to the organisation to provide employees with these

opportunities.

Directing

Directing is the managerial function of guiding,

supervising and leading people. According to Chandan

‘it is concerned with directing the human efforts

towards organisational goal achievement’. Sometimes

directing and leading are seen as one function.

Often it is the success or failure of this function

that will determine whether the organisation will

achieve its objectives. Leading also determines the

levels of satisfaction the employees of the organisation

experience. Some of the requirements for successful leadership

in an organisation are: clear-cut objectives which

should be known to all the managers and employees,

meaningful supervision by the superiors of the

subordinates, participatory managerial style, unity

of direction, and purposive and effective follow-up.

Leadership

Leadership is defined as the relationship in which

the one person influences others to work together

willingly on related tasks to attain goals devised

by the leader and the group. Leaders can be formal

or informal. Formal leaders are found in formal

institutions like bureaucratic organisations, political

parties, and military. Here the organisational

functioning is governed by written and formal rules.

They determine how the leader is selected/elected

and what his/her powers are and how they are to

be exercised. On the other hand, informal leadership

depends on the personal qualities of the leader such

as the charm, intelligence, skills etc. French and

Rawen mention five sources of power that a leader

draws from (1) coercive, (2) reward, (3) legitimate,

(4) expert, and  (5) referent. The first three sources

– coercive, reward and legitimate are  primarily found

in formal organisations while the latter are found

in informal settings.

Leadership Theories

A brief overview of the various theories of leadership

is presented below.

Trait theories: Trait theories advocate that there

are a set of traits that help an individual to become

a leader. Some of the traits are listed as selfconfidence, courage and integrity, will power,

emotional stability, intelligence, enthusiasm, energy,

charisma etc. Trait theory has been criticized on

some counts. It focuses too much on the leader and not on the leadership process, the nature of followers

and the situation in which the leadership is provided.

It oversimplifies the leadership process and reduces

it to traits of the leader. Whereas it is a known

fact that different situations require different types

of leadership qualities. Also it does not explain how

leaders who were successful in the past fail and

vice-versa.

Behavioural theories: This perspective explains

leadership by looking at leaders in terms of what

they do. Many theories within the category see

leadership as comprising of two important factors:

Employees-centred dimension and production-centred

dimension. Employee-centred dimension stresses on

creating a work environment in which employees

can have satisfying work experience. Their main

concerns are employees’ welfare and happiness rather

than attaining organisational objectives. Production

centred dimension gives importance to attaining

organisational objectives rather be concerned about

employee welfare. In different situations these

dimensions have to balanced and a good leader is

one who can balance these two requirements

successfully.

Situational theories: These theories emerged when

management thinkers realized that the context in

which leadership is exercised influences the

leadership process. Earlier theories had failed to

take into account this important aspect. Most

situational theories support the view that there is

a relationship between organisational situation and

the leadership style. Some of the factors that influence

the process is the nature of work of the organisation,

the organisation’s past experience, the value system

of the leader and the followers, resources available

and the overall political–economic situation. Leadership Styles

Autocratic Leaders

Autocratic leaders are those who assume all authority

to themselves. Subordinates are discouraged to offer

suggestions or participate in decision making process.

Autocratic leadership has some advantages and are

useful in certain situations. In this style, firstly

decision making is quick and in emergencies it can

be advantageous. Secondly, decisions will reflect

the leader’s priorities and will not be diluted. Thirdly,

if subordinates are inexperienced or are not qualified,

then autocratic leadership is better. Autocratic

leadership has many disadvantages also. As autocratic

leaders do not take into account opinions of others,

it may result in bad decisions. Secondly, the lack

of consultation may adversely affect subordinate’s

motivation and alienate them. It will increase

resentment towards the leader and the organisation

as a whole.

Participative or Democratic Decision-making

In the democratic or participative decision making

process the subordinates are consulted. Their opinions

are actively sought and a consensus arrived at before

decisions are taken. The decisions thus taken may

or may not reflect the opinion of the leader.

The major advantages of this type of decisions making

are that maximum possible information is collected

and different view points are to be considered.

Participation of many individuals mean that decisions

taken will have a better chance of being accepted

by others. As a result, confidence and loyalty among

the workers will increase.

However, success of democrats decision making

depends on certain conditions. A pre-condition for

democratic decision making is that individuals are

motivated to contribute to the decision making process.Absence of this motivation will lower the quality of

decisions made. There should also be trust between

the leaders and the members. If there are vested

interests or if the organisation has something to

hide from the employees then the decision making

process will be flawed. Further, there should also

be a spirit of give and take as no one can get totally

satisfactory decisions.

Laissez-faire or Free-rein Leadership

The leader gives the organisation maximum freedom

to make decisions. The leader is in most cases a

figure head and at other times a coordinator between

the various members. It gives maximum autonomy

to the members leading to creativity and freedom

of expression. The major disadvantages are that in

under-motivated organisations this type of leadership

will result in chaos.

Autocratic leadership style, democratic leadership

style and laissez-faire leadership style are models

of leadership which may not be found in the real

world. Leadership characteristics of all these models

are found in different leaders in difference situations

and at different times.

Another point to be noted is that in different

organisations the nature of work and tradition makes

the leader adopt one or other leadership styles.

The leaders adopt the laissez-faire method in situation

where encouraging creativity is the aim – for example,

in universities or laboratories. On the other hand,

in family run business houses where control is

considered as important, leadership styles adopted

are closer to the autocratic leadership style.

Coordinating

Coordination is the process of integrating the objectives

and activities of two or more units (departments or functional areas) of an organisation in order to achieve

organisational goals efficiently. In the organising

function, we have seen the need for division of work

among the various units of the organisation. Efficiency

increases with specialization of activity and grouping

of related work. But the division of work brings

about its own problems. Departments become so

involved in their work that they forget the

organisational objectives. Departmental interests are

placed above organisational interests.

Ways to Achieve Coordination

Hierarchy is an important method to achieve

coordination. People who are high in the hierarchy

have more authority and responsibility. Hierarchy

in fact channels and regulates the exercise of

authority, work allocation and flow of communication.

Problems between departments if and when they

arise can be sorted out by the superior officer.

Another important method of coordination is rules

and regulations. Rules and regulations make

organisational work predictable. Rules and regulations

standardize routine work which saves the time of

the managers. Everyone in the organisation will

know what behaviour is expected from him/her and

from others. Tasks will be performed accordingly.

The identification of objectives and formulation of

plans also improve coordination. This gives the

organisation a unity of purpose and a unity of direction.

They help the various units with different

responsibilities to direct their efforts toward achieving

their targets.

Larger organisations often use committees to improve

coordination. These committees consist of members

of different departments of the organisations.

Committee meetings help them exchange information,

understand each others viewpoints and problems

and resolve conflicts.Vertical and horizontal communication system are

used in all organisations to share information. Intra

organisational official communications in the form

of departmental notes, memos, official letters etc.,

help improve coordination between the various sections.

Nowadays, with the rise of information technology,

IT enabled Management Information Systems are

used to transmit data up and down the levels of

the organisation. This system enables quick reporting,

processing, storing and retrieval of information as

and when required.

Till now we have discussed the formal means of

improving coordination. But it is now realized that

informal relationships between employees are as

important as the formal means of coordination. Personal

relationships between the various members improve

overall coordination within the organisation. In

organisations where proper understanding and trust

between employees exists, the need for formal means

of coordination, which are time consuming and

cumbersome, will be less. This will contribute to

a better work environment and improve efficiency

of the organisation.

Reporting

Reporting means keeping the superiors informed

about the various aspects of work including progress

of the various programmes, problems in implementation

and problems related in staff. Reporting is done at

every level.

The Annual Report of the organisation is its statement

of achievement and shortcomings to the general

body of the organisation and to the society at large.

Within the organisation, the Chief Executive Officer

reports to the Board of Management or the governing

body. Subordinates of the executive officer will report

to him/her and so on down to the lowest level of

the organisation.

Need for Effective Reporting

1) Reporting keeps the management informed about

the organisation’s performance.

2) Reporting allows the management to take

corrective actions when things go wrong.

3) Reporting inculcates a sense of responsibility

among employees as they have to report the

programme activities to the higher authorities.

Reporting Process

1) Establish means by which reporting is done.

2) Keep a time period within which the report is

done.

3) It should be decided as to whom the report should

go and in what form.

4) Reporting also includes action to be taken on

the report.

Budgeting

The word ‘budget’ originally meant a bag, pouch or

pocket attached to a person. But in the modern

sense, a budget is a complete statement regarding

the organisation’s income and expenditure of the

past financial year and provides an estimate of the

same for the coming financial year. The organisation’s

budget is usually approved by the highest controlling

body, the Board of Management or the Governing

Council.

Once the budget is approved, the allocation of funds

to various sections/departments of the organisation

takes place. The concerned heads of departments

have to function within the funds allocated to them.

Sometimes due to changes in environment or inside

the organisation, a revised budget is formulated after a period of time which may increase or decrease

the funds allocated to a particular department.

Budgeting is a specialized activity and persons involved

should possess considerable knowledge in accounts,

economics, costing etc. to prepare a proper budget.

Any organisation which is developing a budget for

the first time does a lot of guess estimates as available

information may not be enough to prepare a budget.

Subsequent budgets can be made on the information

collected from the previous experiences. A budget

is very much like a plan in the sense that it is

forward looking and aims at making things happen.

A budget contains the expenditure, income and

outcome planned for a specific period of time. Usually

budgets are made for a year, that is, annually. Through

the budget, the manager controls the activities of

the organisation. Therefore budgeting refers to the

controlling of the organisation based on a budget.

Need for Budgeting

1) Finance is the fuel on which the organisation

runs. One of the most effective ways of directing

and controlling the organisation is by controlling

the financial part of the organisation.

2) Budgeting helps to control the excessive

expenditure. Sometimes managers tend to over

spend with justifications and sometimes without

justifications. Well prepared budget with clear

allocations to various heads prevents this costly

practice.

3) Budgeting also helps in preventing administrative

and financial malpractices. At times, unscrupulous

employees try a variety of means to earn money

at the cost of the organisation. But budgetary

allocation prevents this practice to a great extent.after a period of time which may increase or decrease

the funds allocated to a particular department.

Budgeting is a specialized activity and persons involved

should possess considerable knowledge in accounts,

economics, costing etc. to prepare a proper budget.

Any organisation which is developing a budget for

the first time does a lot of guess estimates as available

information may not be enough to prepare a budget.

Subsequent budgets can be made on the information

collected from the previous experiences. A budget

is very much like a plan in the sense that it is

forward looking and aims at making things happen.

A budget contains the expenditure, income and

outcome planned for a specific period of time. Usually

budgets are made for a year, that is, annually. Through

the budget, the manager controls the activities of

the organisation. Therefore budgeting refers to the

controlling of the organisation based on a budget.

Need for Budgeting

1) Finance is the fuel on which the organisation

runs. One of the most effective ways of directing

and controlling the organisation is by controlling

the financial part of the organisation.

2) Budgeting helps to control the excessive

expenditure. Sometimes managers tend to over

spend with justifications and sometimes without

justifications. Well prepared budget with clear

allocations to various heads prevents this costly

practice.

3) Budgeting also helps in preventing administrative

and financial malpractices. At times, unscrupulous

employees try a variety of means to earn money

at the cost of the organisation. But budgetary

allocation prevents this practice to a great extent.after a period of time which may increase or decrease

the funds allocated to a particular department.

Budgeting is a specialized activity and persons involved

should possess considerable knowledge in accounts,

economics, costing etc. to prepare a proper budget.

Any organisation which is developing a budget for

the first time does a lot of guess estimates as available

information may not be enough to prepare a budget.

Subsequent budgets can be made on the information

collected from the previous experiences. A budget

is very much like a plan in the sense that it is

forward looking and aims at making things happen.

A budget contains the expenditure, income and

outcome planned for a specific period of time. Usually

budgets are made for a year, that is, annually. Through

the budget, the manager controls the activities of

the organisation. Therefore budgeting refers to the

controlling of the organisation based on a budget.

Need for Budgeting

1) Finance is the fuel on which the organisation

runs. One of the most effective ways of directing

and controlling the organisation is by controlling

the financial part of the organisation.

2) Budgeting helps to control the excessive

expenditure. Sometimes managers tend to over

spend with justifications and sometimes without

justifications. Well prepared budget with clear

allocations to various heads prevents this costly

practice.

3) Budgeting also helps in preventing administrative

and financial malpractices. At times, unscrupulous

employees try a variety of means to earn money

at the cost of the organisation. But budgetary

allocation prevents this practice to a great extent.after a period of time which may increase or decrease

the funds allocated to a particular department.

Budgeting is a specialized activity and persons involved

should possess considerable knowledge in accounts,

economics, costing etc. to prepare a proper budget.

Any organisation which is developing a budget for

the first time does a lot of guess estimates as available

information may not be enough to prepare a budget.

Subsequent budgets can be made on the information

collected from the previous experiences. A budget

is very much like a plan in the sense that it is

forward looking and aims at making things happen.

A budget contains the expenditure, income and

outcome planned for a specific period of time. Usually

budgets are made for a year, that is, annually. Through

the budget, the manager controls the activities of

the organisation. Therefore budgeting refers to the

controlling of the organisation based on a budget.

Need for Budgeting

1) Finance is the fuel on which the organisation

runs. One of the most effective ways of directing

and controlling the organisation is by controlling

the financial part of the organisation.

2) Budgeting helps to control the excessive

expenditure. Sometimes managers tend to over

spend with justifications and sometimes without

justifications. Well prepared budget with clear

allocations to various heads prevents this costly

practice.

3) Budgeting also helps in preventing administrative

and financial malpractices. At times, unscrupulous

employees try a variety of means to earn money

at the cost of the organisation. But budgetary

allocation prevents this practice to a great extent. At the end of the year audit is done in which

budgetary allocations are compared with actual

expenditure incurred. Discrepancies if any have

to be explained. This ensures that there is a

check and balance.

4) Budgeting improves the coordination in the

organisation. Proper appropriation to different

overheads within the organisation helps prevent

conflict and overlapping.

5) Budgeting also helps in measuring the performance

of the organisation. The actual performance of

the organisation can be seen in relation to

objectives set forth in the budget.

6) Budgets are also a source of information. Budgetary

allocations to various activities of the organisation

reveal the priorities of the organisation. This is

useful to people outside the organisation as well

as its employees and supporters.

7) Lastly, the very process of budget preparation

is an educative exercise. Managers review the

existing situation, discuss the needs of the

organisation in the coming year, and keeping in

view the priorities of the organisation, prepare

the budget. Thus the budgeting process makes

the managers aware of the objectives of the

organisation, its resource base and anticipate/

forecast trends and changes in the external

environment. 

Evaluation and Feedback

Evaluation means ‘to assess the value of every

organisation’s rationale for its existence and the

contribution it makes for the welfare of the society.

It is for this reason that government and donor

agencies provide funds and the people support these

organisations. Naturally it has to be seen whether the organisation has been fulfilling its mission or

not. Thus evaluation of the organisation’s functioning

and its programmes is a logical necessity.

Socially relevant programmes of NGOs have multiple

dimensions. Therefore, evaluation of the programme

has to include the following dimensions— the relevance

and the need of the programme for the client/s;

the extent of participation of clients/community in

the various stages of the programme; accessibility,

availability and quality of the services rendered;

sustainability and financial viability of the programme.

Lately it has also been felt that the gender dimension

of the programme should be part of the program

evaluation process. Therefore, the extent of female

participation and the benefits obtained for women

has become an important part of the evaluation process.

Due to the decline in donor funds and government

support, most organisations are hard pressed for

funds. Therefore the financial aspect of the programme

is of crucial importance. Thus evaluation takes into

consideration cost effectiveness and timeliness of

the programme implemented.

The American Public Health Association defines

“evaluation as the process of determining the value

or amount of success achieved in terms of its

predetermined objectives”. It includes at least the

following steps; formulation of the objectives,

identification of proper criteria to be used in measuring

success and determination and explanation of the

degree of success, recommendation for further

programme activity.

According to the ‘Encyclopedia of Social Work in

India’, 1) evaluation should have an objective approach

to the study of problem, 2) it should focus on positive

as well as a negative aspects of the problem, 3)

evaluation should contribute to the improvement in

the functioning of the organisation. In other words,

evaluation has educative aspects also.

 Evaluation can be of two types— (i) internal, which

is done by the organisation’s functionaries themselves

to assess their progress, and (ii) external, which

is done by outside agencies like government, donor

agencies etc.

Conclusion

We have seen the seven functions of a manager.

We also had an overview about the role of these

functions in the organisations. You were also given

an introduction on how some of these functions

especially planning, directing, coordination and

budgeting are done. In your own field work agencies

you can collect further information on how specific

agencies perform these functions.