S.Rengasamy: Compiled by

Compiled by
S.Rengasamy
S.Rengasamy - Participatory Programme Planning & Management

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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 peoples 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 Peoples Participation ................................................................................................................. 15
Participation depends upon ......................................................................................................................... 15
Citizens Administrators Relationships & Participation ......................................................................... 15
Stages of participatory planning ................................................................................................................. 16
Box: Concept of Participation & On Beneficiaries & Stakeholders ....................................................... 17
About Projects and Peoples 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

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Understanding Project vs Program vs Operations ...................................................................................... 22
Steps in participatory planning in Local Governance (Model I) ................................................................. 23
(Steps followed in Keralas State wise Peoples Planning Program ........................................................... 23
General phases of a project. (Model II) ...................................................................................................... 23
Project managements processes (Model III) .............................................................................................. 24
Processes Sequence (Model IV) ................................................................................................................. 24
Processes Dynamics: ................................................................................................................................... 24
Project Managements Knowledge areas .................................................................................................... 24
Projects Life Cycle (PLC) ......................................................................................................................... 25
The Projects 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

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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

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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 Diasporas 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 NGOs ............................................................................................................ 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

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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

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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


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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 Peoples 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) Whos 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 Farmers 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 Trainers 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.

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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 peoples 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 peoples 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 peoples 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


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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 peoples 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.

Participationmeans 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

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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 peoples 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 peoples responses. Such a consultative process does not
concede any share in decision making and professionals are under no
obligation to take on board peoples 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 peoples lives.

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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.

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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 selfhelp 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

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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 subsurvient behavior.
2. Self-interest: Public must consider that its 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.
Peoples participation means politicization- this in the form of organized groups helps in
policy making & implementation

Nature of Peoples 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 NGOs & Civil Society Organizations / Co- operatives
Program of workers 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

Citizens Administrators Relationships & Participation
Development process distributes patronage & favorsenlightened 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
Lets 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 peoples 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 Vendors 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 Peoples 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 DONT 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 peoples 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 peoples 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.

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) Twoway 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 twoway 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
T
i
m
e
-
L
i
n
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
O
b
j
e
c
t
i
v
e
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
P
u
r
p
o
s
e

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
H
u
m
a
n

R
e
s
o
u
r
c
e
s

Project team (temporary) Program team ( as
projects but longer,
broader role)
Permanent staff (assigned to core
work of the organization)
D
y
n
a
m
i
s
m

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

M
e
a
s
u
r
e
m
e
n
t

o
f

S
u
c
c
e
s
s

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 organizations progress, reports on
ongoing operations

Steps in participatory planning in Local Governance (Model I)
(Steps followed in Keralas State wise Peoples 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 semistructured 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
intersectoral and the intrasectoral 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 wont 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 managements 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 Managements 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 dont
necessarily have the same weight in each and every project:
Scope managementthe processes required to ensure that the project includes all the work
required, and only the work required;
Time managementthe processes required to ensure timely completion of the project;
PSA/JGV, 1997.
The Process Groups:
Initiate
Plan
Execute
Control
Close-
out


25

cost managementthe processes required to ensure that the project is completed within the
approved budget;
Quality managementthe processes required to ensure that the project will satisfy the
needs for which it was undertaken;
Human resource managementthe processes required to make the most effective use of
the people involved with the project;
Communications managementthe processes required to ensure timely and appropriate
collection, dissemination, and storage of project information;
Risk managementthe processes concerned with identifying, analyzing, and responding
to project risk;
Procurement managementthe processes required to acquire goods and services for the
project implementation;
Integration managementthe processes required to ensure that the various elements of
the project are properly coordinated.

Projects 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 Projects Life Cycle (PLC) phases: (Model V):

Initiation Phase someone recognizes an opportunity to be gained or a problem to be
resolved
Planning Phasethe projects case and the detailed project plan are created;
Design Phasefurther 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 Phasethe execution of the project plan, the unfolding of the various steps
of the project until completion.
Evaluation Phasedetermining 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 1970s , inspired by
Paulo Freires 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 peoples
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 everyones strength reduces everybodys 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 communitys 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
areas 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
facilitators 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
Stakeholders 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
R
e
f
l
e
c
t
i
o
n
s

Conceptualization
E
x
p
e
r
i
m
e
n
t
a
t
i
o
n

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 Ds 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 peoples 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 peoples 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 peoples 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.

D
e
m
o
c
r
a
t
i
z
a
t
i
o
n

A
d
v
i
s
i
n
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 communitys 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 agencys 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 communitys
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 its 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 whats 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 sponsors 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 youre 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 agencys 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
A
v
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e
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a
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Budget Account Head
A
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3

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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 nonrecurring.
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.
Nonrecurring (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 donors 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.Bs 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 Diasporas 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 Committees
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 Diasporas 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 NGOs
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. Nonfeasance; [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. Malfeasance; [waste & damage, ignorance, technical incompetence]
Means that a public duty is performed with waste and damage because of ignorance, negligence
and technical incompetence.
3. Overfeasance; [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 administrators 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

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.


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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
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 Peoples
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 terminologys 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 peoples 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


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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
Replan

Reflect, critically
analyze & document
lessons
Embrace failures
Implement
Experimen
t
Revisit/ Revise
assumptions
Review all relevant
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
units 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.


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