Social Welfare Administration

Social Welfare
Social Welfare can be defined as the group of assistance programs designed to
ensure the well being of a nation’s citizens. In other words, it is a system that
aims to provide quality care to society participants.

Administration
Administration is a cooperative human effort towards achieving some common
goals. Thus every group activity involves administration, whether it is a family,
factory, hospital, university, or a government department. Whenever two or
more people cooperate in view of doing a thing that cannot be taken up alone,
the concept of administration appear.
Concept of SWA
Social welfare administration is a process through which social policy is
transformed into social services. It involves the administration of
government and nongovernment agencies.

John C. Kidneigh (1950) defines social welfare administration as the

“process of transforming social policy into social services…. a two way
process: (i). …transforming policy into concrete social services and (ii) the
use of experience in recommending modification of policy. The definition
here emphasis is that administration is the process of transforming
policies into action programmes for the betterment of the society
Concept cont.
• Rosemary Sarri (1971) has outlined the activities of social welfare administration as follows:
i) Translation of social mandates into operational policies and goals to guide organizational
behaviour;
ii) Design of organizational structures and processes through which the goals can be
achieved;
iii) Securing of resources in the form of materials, staff, clients etc. for goal attainment and
organizational survival.
iv) Selection and engineering of necessary technology.
v) Optimizing organizational behavior directed towards increased effectiveness and
efficiency; and
vi) Evaluation of organizational performance to facilitate systematic and continuous solution
to problems.
Features of social welfare Administration
• Social welfare administration deals with social welfare agencies and helps them to achieve their objectives for the target
groups for which they are working. It is specifically concerned with identification of social objectives, the formulation and
implementation of proposed programmes to achieve the objectives laid down.
• From functional point of view, social welfare administration includes three perspectives of social problems: (i) restoration
of impaired social functioning; (ii) provision of resources, social and individual, for more effective social functioning; (iii)
prevention of social dysfunction.
• Despite variations in size, scope, structure and types of programmes, every agency has a governing board as an apex body
for final decision-making. The board is generally represented by the community it intends to serve.
• Social welfare administration requires optimum utilization of its available resources together with active community
participation, so that the ultimate goal of programmes can be achieved properly.
• Social welfare agencies have to allocate certain portion of their resources for survival so that the organization can continue
to exist. But this should not limit their capacity to achieve quantitative and qualitative growth.
• Social welfare agencies generally function in a cooperative manner and ensure participation of all the members in
administration of their activities.
• There is a growing trend in these agencies to recruit professionally qualified manpower. It has helped in introducing
professional approach in their functioning.
Scope of Social Welfare Administration
• POSDCoRB view
This is a narrow view of social welfare administration and takes into account
mostly the execution of the government’s sponsored programmes. In other
words this view corresponds with the managerial view.
According to Henry Fayol the main categories of administration are: (i)
Organisation (ii) Command, (iii) Coordination, and (iv) Control.
P.M. Queen says that the study of administration deals with ‘men, material and
methods’.
L. Gulick has given a magic formula in a word ‘POSDCoRB’ with each letter
describing one technique. Gulick’s approach is ‘technique-oriented’ rather than
‘subject oriented
POSDCoRB
• Planning: Planning means working out broad outline of the things that need to
be done and the method to be adopted to accomplish the purpose set for the
enterprise.
• Organisation: It is the establishment of the formal structure of authority
through which the work is sub-divided, arranged, defined and coordinated for
the defined objective.
• Staffing: Staffing is the process of filling all positions in the organisation with
adequate and qualified personnel. Thus it means whole personnel, bringing in
and training the staff and maintenance of favourable condition of work.
• Directing: It is the continuous task of making decisions and embodying them in
specific and general orders and instructions and thus guiding the enterprise.
POSDCoRB continues
• Coordinating: It means integration of several parts into an orderly whole
to achieve the purpose of the undertaking. In other words, coordinating
means the all important duty of inter-relating the work of various
divisions, sections and other parts of the undertaking.
• Reporting: It is keeping those people informed to whom the executive is
responsible about what is going on. In other words reporting means
keeping both the supervisors and subordinates informed of what is going
on and arranging for collection of such information through inspection,
research and records.
• Budgeting: It is all that goes with budgeting in the form of fiscal planning,
accounting and control.
Contents of SWA
• Social Problems : Assessment of its causes, prevention and treatment through
public participation and effective implementation of social legislation.
• Social Services : Social services are meant for general public through provision of
health, education, housing etc. and make them more effective for the upliftment
of disadvantaged and vulnerable.
• Social Security : To make and implement effective social assistance and social
insurance provisions. It aims to compensate for the loss of income due to
unemployment, disability or death caused by accident and old age through social
insurance and social assistance.
• Social Policy : To make effective social policy for the welfare of underprivileged
sections of the society, to achieve the goals of welfare state through social action.
Principle of Social Welfare
Administration
Principles of SWA
Principle of Acceptance
Executive and staff members are encouraged to accept one another
and act in harmony
This does not rule out criticism, evaluation and suggestions for
improvement but does mean that all executives and staff members feel
a basic security as an individuals, with rights as well as responsibilities.
This principle not only helps to resolve differences among executives
and staff members it also establishes cordial relations among them
Principle cont.
Principle of Community and Client Needs
Need of the community and the individual within it are always the basis for the existence of
social service or SWO and the provision of the programs.
Therefore, it is essential that SWA must develop service and programs keeping in mind the
need of clients and targeted community.
This requires data and information of community and client.

Principle of Social Work Values

The values of social work, such as worth and dignity of individuals, social justice, social
equality, empathy are the foundation upon which social welfare adminstrators develop
programmes or services and made available to persons who need them.
Purposeful relationship between community and agency
Principle cont.
The Principle of Agency purpose
The purpose of the social welfare organizations must be clearly
formulated, stated, understood and utilized before formulating the
policy and translating to services or programmes.
Clearly stating purpose means the clear step towards effective
implementation of the services or programme.
Otherwise, GOALs might not be achieved.
Principle cont.
Principle of cultural setting
The culture of the community must be understood in as much as it influences
the way needs are expressed and the way services are authorized, supported
and utilized by the people who need them.
A community consists of people belonging to varied culture settings and it is
possible that people from different cultural setting may have different needs.
Sometimes, it is observed that some people with a specific cultural setting do
not come forward and express their needs. Therefore, it is necessary that the
SWO must study and understand the need of people belonging from different
cultural settings.
Principle cont.
Principle of Purposeful relationship
The social welfare organizations need to establish a purposeful relationship among its
staff members, executives and the community.
For this, it is essential that the very purpose of the existence of the social welfare
organizations must be clearly stated and expressed to its stake holders.
Once the purpose is expressed it becomes very easy to establish purposeful relationship.
The Principle of Agency Totality
The agency must be understood in its totally and wholeness.
SWA needs to understand first of all the philosophy and goals of social welfare
organizations, followed by its objectives, financial status, organizational culture,
established procedures, conventions and practices.
Principle cont.
Principle of Professional responsibility
Social welfare administrator being a trained professional, is responsible for
the provision of high quality professional services based on standards of
professional practice.
Has to see that projects and programs are implemented as per the
guidelines and set procedures by the BOD of organization.
Principle of Participation
The success of SWO is depended upon the participation of its stakeholders,
i.e. members, BOD, staffs including client or beneficiaries.
So, try to get maximum contribution of stakeholders.
Principle cont.
Principle of growth
Growth of all the constituents of social welfare organizations, namely, BOD
and staffs.
The growth and development of all the participants is the one of the
primary functions of the social welfare administrator.
As a SWA, s/he should be able to provide challenging work assignments,
thoughtful supervision and opportunities for individual and group learning.
Principal of being in service.
As long as SWA are in service they are responsible for helping individuals,
families, groups and community.
Principle cont.
• Principle of Coordination
In the present age of super specialization, various programmes or
service in welfare sector are being provided by different types of social
service or social welfare organization.
If, these organizations operate in isolation, optimum utilization of their
programmes or services is impossible.
It is therefore, considered essential that if all kinds of programmes or
services in a particular area are provided through one organization with
single window, the work of social service or social welfare organizations
will be easier and definitely effective.
Principle cont.
• Principle of programmes adjustment
Programmes or services to be effective have to be changed with the
needs of client or beneficiaries. This, therefore, is the duty of SWA to
introduce changes in the services or programmes to suit the
beneficiaries or clients as and when necessary by bringing innovations
in services or programmes.
Principle of putting social policy into practice
Principle of adaption to local problems
Principle of democratic decision
Project Cycle Management
What is project?
A project is a series of tasks that need to be completed in order to reach
a specific outcome. A project can also be defined as a set of inputs and
outputs required to achieve a particular goal.
Projects can range from simple to complex and can be managed by one
person or a hundred. Projects are often described and delegated by a
manager or executive. They go over their expectations and goals and it's
up to the team to manage logistics and execute the project in a timely
manner. Sometimes deadlines can be given or a time limitation. For good
project productivity, some teams break the project up into individual
tasks so they can manage accountability and utilize team strengths.
Characteristics of a project
• Clear and specific objectives
• Fixed life span: Defined starting and ending dates
• Pre-defined budget
• Consume resources e.w. money people and equipment
Program vs Project
Program Project
A program implies a set of projects which are linked A project refers to the temporary activity, which is
to one another, in a sequential manner to attain undertaken to create a distinct product or service,
the combined benefits that has certain objective

Focus on context Focus on content

Time horizon: Long term Time horizon: Short term
Multiple functional unit Single functional units
Strategic in nature More technical in nature
Produce outcome Product output
Success is measured by the extent to which Success can be measured in terms of product
program meets out the needs and benefits, for quality, timeliness, cost effectiveness, compliance
which it was conducted and degree of beneficiaries satisfaction.
Project
Management
Cycle
• PMC is the process of
Planning, Organizing,
Coordinating and Controlling
of project effectively and
efficiently from start to the
end in order to achieve pre-
defined objectives.

• PMC involves the series of

activities that is followed
through stages of project
completion to achieve its
goal.

• Four major phases of PMC

Initiation Phase
• This is the beginning phase of the project.
• Project has not been formed yet
• This is the phase where literature review and secondary data analysis is done.
• It includes information such as
- Purpose, vision and mission of the project
- Project description
- Summary milestones of the project
• The problem is identified and checked if the project can solve it
• Basically, the feasibility of the project is assessed and identified.
Initiation Phase
• Undertaking the feasibility study of the project
• Assessing the scope of work of the project
• Identifying the key deliverables
• Identifying stakeholders of the project
• Comparing the potential costs and benefits of the project
Planning Phase
• Planning phase is an important phase of the project. The better the plan,
easier will be the execution.
• In this phase, we need to break down larger activities into smaller tasks.
• Plans for conducting the project are formed in detail.
• SMART ( Specific, Measurable, Achievable, Realistic and Time Bound)
Goals and Objectives are set.
• Includes planning of resources, risk, finances etc.
• Roles and responsibilities of the staffs are clearly defined.
• Plan is also documented for the further purpose.
Two parts in planning phase
• Strategic Planning: Develop strategy and approach of project.
• Implementation Planning: Develop details of how the project will be
implemented.

- Creating a project plan

- Creating workflow documents or process maps
- Estimating budget and creating a financial plan
- Gather resources
- Anticipating risks and potential quality roadblocks.
Execution Phase
• Project executive is the phase where plan is now brought into action,
after the final approval and completion of all planning.
• A series of activities is carried out to meet the goals.
• Monitoring of the work goes side by side during execution.
• Monitoring is done to ensure that the activities are moving on track,
as planned.
• Moreover, it will also involve immediate rectification and changes
required to meet the overall goal and objectives of the project.
• This phase also involves mid-term evaluation of the project
Execution Phase cont.
• Create tasks and organizing workflow
• Provide necessary guidance, briefing and trainings to the team members.
• Regular communication with the team members
• Monitoring of the quality of work
• Managing budget

(Things to ensure during this phase)

Time management, Cost management, Quality management, Change
management, Risk management, Issues management etc
Termination Phase
• As the project is temporary it has to come to an end.
• Closure phase provide final deliverables, release project resources,
and determine the success of the project.
• At the end evaluation report is also created that would evaluate the
overall success of the project and are useful for future references as
well.
• Analysis of project performance, team performance.
• Closing finances and budgetary aspects of the project.
Skills for Project Management
• Communication skills
• Organization skills
• Group building skills
• Leadership capacity
- Foresight, positive, courageous,
• Patient/Imitative skills
- Flexible, creative, confident
• Technical skill
- Experience and knowledge of project.
 Concept of
Organization Development
and Capacity Building
Concept of Organization Development
• Development is a continuous process and it accommodates in itself many
changes that occur in science and technology, economic, market, political
environment, education, knowledge, values, attitude and behaviour of people,
culture etc.
• Organization development is a part of overall development in general. It cannot
remain unaffected by the developmental process. The organization has to
change the beliefs, values and its structure to accommodate the new ideas,
beliefs and new technologies for progress. The organization must respond to
changes. So that it can face the challenges ahead. 
• Organization development accommodates and incorporates variety of planned
changes based on humanistic democratic values, technology that are sought to
improve the effectiveness of organisation and well being of its employees.
Concept of Organization Development
• Organization development is a planned, systematic process in which
applied behavioral science principles and practice are introduced into
ongoing organization towards the goal of increasing individual and
organizational effectiveness.
• Organizational development is a process for teaching people how to
solve problems, take advantage of opportunities and learn to do that
better and better over time.
• A well – planned strategy to bringing structural changes in belief,
practice and disposition of an organization to enable to tackle modern
technology, market and challenge is called organizational development.
Participatory model of OD
• The aim of organization development is to stimulate the local community to
evaluate, plan and coordinate efforts to provide for the community’s health,
welfare and recreation needs.
• Since every community is different and has its own history and ways of
doing things there are no fit model or strategies to address all communities
capacity building endeavor.
• However, most critically needed are methods of carrying out planning with
communities through a strongly participatory process to promote social and
economic development and create neighborhood supports that can improve
quality of life.
• Developing local leadership and building strongly participatory processes.
Characteristics of OD
• Planned Change: Organizational development (OD) is an educational
strategy for bringing about planned change. Planned change concept
makes it different from other approaches for change in organizations.
• Encompasses the Whole Organization: Organizational Development is
the development of the whole organization so that it can respond to
change effectively. OD tends to ensure that all parts of the organization
are well coordinated in order to solve the problems and opportunities
that are brought by change.
• Long range Change: OD is a longterm process. It may take months or
years to implement it. OD is never intended to be a stopgap arrangement
or measure.
Characteristics of OD cont.
• Problem Solving: OD emphasizes on problem solving rather than just
theoretical discussion of the problems. The focus on real, ongoing problems
rather than the theoretical or artificial ones is called actions research. Action
research is a very important feature of OD. Sometimes, OD is called
organizational improvement through action research.
• Experiential Learning: In the traditional approaches, training was provided to
the people by lecture and discussion method, in which people talk about only
abstract ideas. But in OD, particularly learn by experiencing in the training
environment the kind of human problems they face on the job. This approach
tends to produce more changed behaviour than the traditional approach.
Theory is also necessary and desirable, but the ultimate test is how it applies in
real practice. These answers are provided by OD.
Characteristics of OD cont.
• Collaborative Management: In contrast to the traditional management structure
where orders are issued at upper levels and simply carried out by low levels, OD
stresses collaboration among levels. In OD, organizations are viewed in a systems
perspective.
• Group Process: In OD, an effort is made to improve interpersonal relations, open
communication channels, build trust and encourage responsiveness to others. For this
OD relies on group processes like group discussions, inter group conflicts,
confrontations and procedures for co-operations.
• Team building: to build better team work throughout the organisation. OD tries to tie
all the groups, small and large, working in the organisation, together to make one
integrated and cooperative group. If any groups have some differences, OD will help
them to find out the ways for solving the differences. The result of effective team work
will be improved organisational performance.
Values of OD
Organisation development constitutes various people, professionals, technocrats, researchers,
managers and a host of other employees working in the organisation contributing to the
accomplishment of organisational objectives. They behave differently. Authority and power,
conflicts, control takes backseat during OD process.. The following are the values in OD efforts:
Respect People: People are the raison d’etre of organisation and they are responsible for creating
opportunities for growth. They must, therefore, be treated with respect and dignified manners.
Confidence and Support: Organisations are made up of people and they are to be believed and
supported in order to have effective organisation. The healthy environment prevails when people
are trusted and taken into confidence and a necessary support is extended to them as and when
needed.
Confrontation: Any conflict on any issue should not be suppressed. It should be dealt with
openness. Suppression leads to dampening of morale. Identifying the problem and its causes,
discussing it openly and finding out feasible solution leads to boosting up morale of the
employees and creating good environment.
Values cont.
Employee Participation: The participation of employees who will be affected by the OD
should be sought in decision-making.
Expression: Human beings differ in experience, maturity, ideas, opinions, and outlook.
The organisation is at the receiving end. It gains from the differences in quality, ideas,
opinions and experiences of its people. Human beings are social animals; they have
feelings, emotions, anger and sentiments etc. They should be allowed to express their
feelings and sentiments. This will result in building up high morale and the people will
be motivated towards hard work ultimately resulting in increased efficiency.
Seeking Cooperation: Managers should learn to seek cooperation from each of the
employees working under him in his department. This will develop in creating the
atmosphere of cooperation leading to organisational effectiveness and willingness to
accept change in the event of organisation development process.
 Elements of the
Organizational
Development

Phase 1: Planning
- Identification of Problem
- Development of Intervention Plan
- Explains a road map.
Phase 2: Leadership
- Shape organization as per the
plan
- Collect resources as necessary
- Innovation and Technology
Phase 3: Management
- Implementation
- Monitoring and Feedback
Phase 4: Maintenance
- Ensures that result remains
priority
- Strengthen the result
Source: catherinescareercorner.com
Organizational Development Intervention
and Technique
• Structural Intervention • People-focused Intervention
- Structural reorganization - Sensitivity training
- New reward system - Survey feedback
- Changing organizational culture - Process Consultation
- Task Technology intervention - Team building
- Intergroup development

Refer books page 157 and 158 for elaboration

Organization and Project
Development and
Management
Identification of Problem
• A good project comes from a good problem definition. It is important
to first identify the problem you want to address, whether it be in
your country, community or school. In general, try to describe what
you want to change and why you want to change it.
• Problem Identification consists of:
Clearly identifying the root cause of a problem
Developing a detailed problem statement that includes the problem’s
effect on people
(Workshop: Problem Tree vs. Solution Tree)
Vision
• A vision (or vision statement) outlines what an organisation wants to
be or how it wants the world in which it is working to be. It is a long-
term view that focuses on the future.
• Presents where we want to go describes the future (of the organization)
• Clear and concise- easy to read and understand
• Typically inspiring.
For eg: Save the Children: Every child attains the right to survival,
protection, development and participation; The Global Fund: A world free
from the burden of AIDS, tuberculosis and malaria, FIFA: Develop the
game, touch the world, build a better future
Mission
• A mission statement defines what an organization is, why it exists, its
reason for being. At a minimum, your mission statement should
define who your primary customers/community are, identify the
products and services you produce, and describe the geographical
location in which you operate.
SWOT and PESTLE analysis
• SWOT analysis and PESTLE analysis are tools for preparation and
planning.
• For example, digital marketers need to sell products and services.
They will benefit when using PESTLE analysis before a new campaign.
Since PESTLE is about the six macro-environmental influences
affecting business, products and locations. It gives much needed
insight about policies, economics, technologies and so forth.
• It shows limitations, regulation and attitudes regarding a product or
services.
• E.g. Supplements marketing.
SWOT analysis
• By understanding a product/projects strengths, weakness,
opportunities and threats, its much easier for the marketer to sell it.
• Once identified, they can work on weakness while bringing strengths
to the forefront of consumers minds.
• They can also prepare for the future opportunities and potential
threats.
• It is easier to set and meet goals with PESTLE and SWOT analysis.
SMART
Specific
Your goal should be clear and specific, otherwise you won't be able to
focus your efforts or feel truly motivated to achieve it. When drafting
your goal, try to answer the five "W" questions:
• What do I want to accomplish?
• Why is this goal important?
• Who is involved?
• Where is it located?
• Which resources or limits are involved?
SMART
Measurable
It's important to have measurable goals, so that you can track your
progress and stay motivated. Assessing progress helps you to stay
focused, meet your deadlines, and feel the excitement of getting closer
to achieving your goal.
• A measurable goal should address questions such as:
• How much?
• How many?
• How will I know when it is accomplished?
SMART
Achievable
Your goal also needs to be realistic and attainable to be successful. In
other words, it should stretch your abilities but still remain possible.
When you set an achievable goal, you may be able to identify previously
overlooked opportunities or resources that can bring you closer to it.
• An achievable goal will usually answer questions such as:
• How can I accomplish this goal?
• How realistic is the goal, based on other constraints, such as financial
factors?
SMART
Relevant
This step is about ensuring that your goal matters to you, and that it also aligns with
other relevant goals. We all need support and assistance in achieving our goals, but it's
important to retain control over them. So, make sure that your plans drive everyone
forward, but that you're still responsible for achieving your own goal.
• A relevant goal can answer "yes" to these questions:
• Does this seem worthwhile?
• Is this the right time?
• Does this match our other efforts/needs?
• Am I the right person to reach this goal?
• Is it applicable in the current socio-economic environment?
SMART
Time-bound
Every goal needs a target date, so that you have a deadline to focus on and
something to work toward. This part of the SMART goal criteria helps to
prevent everyday tasks from taking priority over your longer-term goals.
• A time-bound goal will usually answer these questions:
• When?
• What can I do six months from now?
• What can I do six weeks from now?
• What can I do today?
Project Goal and Objectives
• Goals are high-level statements that provide the overall context for
what the project is trying to accomplish.
• Goals are dreams with deadlines.
• Objectives are concrete statements describing what the project is
trying to achieve. The objective should be written at a lower level, so
that it can be evaluated at the conclusion of a project to see whether
it was achieved or not
• A well-worded objective will be Specific, Measurable,
Attainable/Achievable, Realistic and Time-bound (SMART).
Result Chain
Output, Outcome and Impact are the terms that are used to describe
changes at different levels from the delivery of goods and services to
long-term, sustainable change in people's life.
• Activities lead to services or products delivered (Output). Output tell
the story of what you produced.
• Outcome is the level of performance or achievement that occurred
because of the activity or service that your organization provided.
• Impact is the ultimate change that the organization wish to bring.
What is a Project Budget?
• It is a tool used by a project mangers or SWA to estimate the total
cost of a project.
• A project budget template includes a detailed estimate of all costs
that are likely to be incurred before the project is completed.
• Initially, the project budget allows the project manager to determine
how much the project is likely to cost.
• Throughout the course of the project, it lets the project manager
check whether or not the project is sticking to its budget.
Creating a project budget involves:
• Being able to identify all the items that are going to cost money
• Building a complete picture of what you need to spend.
• Getting approval for that amount.
Types of Project Cost
There are several ways of categorizing project cost:
1. Direct cost: They are the things that you have to buy or pay for in
order to move the project along.
2. Indirect cost: They are the costs involved with keeping the project
team running. They are the costs of doing business and are not
normally included in project budget. For e.g. salaries, national
insurance, office space etc.
Types cont.
Capital costs: Capital costs are what are incurred when you buy stuff. Spending capital
gives you assets for the company/organization.
• This can be building, vehicle, - tangible things.
• Capital costs are also involved when you are upgrading an existing asset or repairing
something that is broken to extend its life.
• It represent an investment in the organization, through which you will benefit over
several years, if not longer.
Operating cost: Operating costs are to do with running the project and the team, abit
like the indirect cost. (Value of company isn’t only capital, but good will and values)
Travel expenses, routine maintenance, licencing and support fees, project
communication
Key components of Project Budget
• S.No.
• Item description/Objectives
• Unit type
• No. of Unit
• Unit cost
• Total cost
• Remarks
Accounting
• A process of keeping financial accounts.
• The accounting process includes summarizing, analyzing, and
reporting these transactions to oversight agencies, regulators, and tax
collection entities.
• It helps to obtain financial picture of the organization during or after
project/program implementation.
• Through accounting organization can know how strong and weak the
organization is financially.
• Account is prepared by a skillful accountant.
Accounting and Accountancy
• Accounting refers to the process of keeping or maintaining financial
records
• Accountancy is referred to as the actual process of communicating
information about the financial state of a company to its
shareholders, usually in the form of financial statements, which show
the assets and resources under the company’s/organizations control
in monetary terms.
Types of Accounting
Financial Accounting is the basis of all accounting. It is sometimes called
financial reporting prepare reports for parties external to organization.
• Investors and creditors are primary users of financial accounting.
• It consists of profit and loss account or income statement depicting
profit and loss made by organization for the time to time its preparation
of Balance sheet or position statement.
• It shows snapshot picture of assets, capital and liabilities.
• This will help to determine the future course of action in the long term.
In economical terms, financial accounting treats money as a factor of
production.
Types of Accounting cont.
• Cost and management accounting are tools to enable management
to take decisions on a day to day basis.
These two functions assist management in the conduct of the business
along with other key factors involved in running of the business. Key
factors could be demand, supply, competition, availability of raw
material, logistics etc.
Types of Accounting cont.
• Cost accounting, seeks to ascertain the value of direct costs and indirect
costs involved in production.
Cost accounting is the classification, recording and appropriate allocation of
expenditure for the determination of the cost of products or services, and for
the presentation of suitable arranged data for the purposes of control and
guidance of management.
• Management accounting has a broader role to play in management
decisions. It provides information to manager to assist in their planning,
controlling and decision-making activities of an organization in order to
reach organizational goals.
Management accounting, is closely interrelated with costing accounting.
Types of Accounting cont.
• Governmental or Not for Profit Accounting are accounting that
requires for organization that are not-for-profit, such as government
legislative body, charities and NGOs.
Since the primary objectives of these organization is not generating
profit for its share holders, accounting is concerned with the process of
measurement of the contribution made by the organization to the
society in which organizations are born and grow.
Social benefit created by organization is kept as a record of accounting.
For example: Job creation, housing support, health situation
transformation, environment protection and education support.
Auditing
Audit means to evaluate. (Evaluate – where the money is coming from, where is it
going and what is it doing?)
• Financial auditing is the process of examining an organization's (or individual's)
financial records to determine if they are accurate and in accordance with any
applicable rules (including accepted accounting standards), regulations, and laws.
• External auditors come in from outside the organization to examine accounting and
financial records and provide an independent opinion on these records. Law
requires that all public companies have their financial statements externally
audited.
• Internal auditors work for the organization as internal employees to examine
records and help improve internal processes such as operations, internal controls,
risk management, and governance.
Auditing cont.
• Not only completing the legal compliances, the goal of auditing is to
assure investors and other stakeholders that their cashflow, balance
sheet and profit and loss statement is not materially misstated.
• Firms often hire external auditors to perform this audit because they
can provide an independent review of how company is offering.
• They can get valuable sight on how their company is performing.

(Please review the differences between accounting and auditing from

your text book page. 113)
Types of Organization
• Public organization: Owned by government (e.g. Teaching hospital)
• Private organization: Owned by person or group of people (e.g. Chaudhari
Group) It includes all businesses that are for-profit that are not government
owned or operated.
• Non-governmental organization: Non-profit organization that operates
independently of any government, typically one whose purpose is to
address a social or political issue. (e.g. ‘We’ for Change)
• International organization: An organization established by a treaty or other
instrument governed by international law and possessing its own
international legal personality. (e.g. United Nations, the World Health
Organization)
Organization Structure
An organizational structure is a system that outlines how certain activities are directed
in order to achieve the goals of an organization. These activities can include rules,
roles, and responsibilities.
The organizational structure also determines how information flows between levels
within the company. For example, in a centralized structure, decisions flow from the
top down, while in a decentralized structure, decision-making power is distributed
among various levels of the organization.
Having an organizational structure in place allows companies to remain efficient and
focused.
A strategic, carefully planned organizational structure helps an institution run
effectively and efficiently.
An ineffective structure can cause significant problems for a company, including lost
profits, rapid employee turnover and loss in productivity.
Type of Organization Structure
Line Organization Structure
• Line organizational structure is one of the simplest types of
organizational structures. Its authority flows from top to bottom and
responsibility flows from bottom to up.
• The chain of command and each department head has control over
their departments. The self-contained department structure can be
seen as its main characteristic. Independent decisions can be taken by
line officers because of its unified structure.
• The main advantage of a line organizational structure can be identified
as the effective communication that brings stability to the organization.
Type of Organization Structure cont.
Functional Organization Structure
• Under a functional organization structure, people who do similar
tasks are grouped together based on specialty. So all the accountants
are placed in the finance department and so on for the marketing,
operations, senior management and human resources departments.
• The advantages of this kind of structure include quick decision
making, because the group members can easily communicate.
• They can also learn from each other, since they already possess
similar skill sets and interests.
Type of Organization Structure cont.
Divisional Organization Structure
• In a divisional structure, company groups workers into teams based
on the products or projects that meet the needs of a certain type of
customer.
• In an organization, a team works together to complete the project or
target combining to roles of different sector. For example: To
complete WASH project in Surkhet, All program, finance, HR and
logistic people work together to complete the project.
Type of Organization Structure cont.
Matrix Organization Structure
• A matrix structure combines elements of the functional and divisional models, so it’s
more complex. It groups people into functional departments of specialization, then
further separates them into divisional projects and products.
• In a matrix structure the team members are given more autonomy and expected to
take on more responsibility for their work.
• This increases the productivity of the team, fosters greater innovation and creativity,
and allows managers to cooperatively solve decision-making problems through group
interaction.
• This type of organizational structure takes lots of planning and effort, making it
appropriate for large companies that have the resources to devote to managing a
complex business framework.
Key elements of organizational structure
1. Departmentalization: It refers to how the organizational structure groups
the institution’s functions, offices, and teams. Departments are usually
sorted on the basis of the kinds of tasks the workers in each department
perform. (also brand lines, geographic locations)
2. Chain of Command: Most organizations, from businesses to nonprofits to
the military, utilize a chain of command. This helps eliminate inefficiencies
by having each employee report to a single manager, instead of to several
bosses. In the corporate context, this type of chain of command is reflected
in the organizational structure and affects job descriptions as well as office
hierarchies. Managers assign tasks, communicate expectations and
deadlines to employees, and provide motivation on a one-to-many basis.
Key elements cont.
3. Span of Control: An organization’s span of control defines how many employees each
manager is responsible for within the company. Based on the manager’s individual style
or approach, the span of control could range from three or four to 15 or more. Of course,
managers who are placed higher up the chain of command typically have a tighter span
of control, as they are directly responsible for middle-manager or team leaders.
4. Centralization and Decentralization: Organizational structures also rest somewhere on
a spectrum of centralization. Generally, more conservative corporate entities adopt a
centralized structure. In this design, C-level managers make all the decisions,
management designs a plan for execution and front-line employees carry out that plan. C-
level officers are generally those at the uppermost level of the organizational chart, such
as the chief executive officer, chief operating officer and chief marketing officer.
A decentralized system allows all levels of management the opportunity to give input on
big-vision goals and objectives. Larger, company-wide decisions are still generally
reserved to C-level officers, but departmental managers enjoy a greater degree of
latitude in how their teams operate.
Key elements cont.
5. Work Specialization: In any business, employees at all levels typically
are given a description of their duties and the expectations that come
with their positions. In larger companies, job descriptions are generally
formally adopted in writing. This approach helps ensure that the
company’s specific workforce needs are met, without any unnecessary
duplication of effort. Work specialization ensures that all employees
have specific duties that they are expected to perform based on each
employee's work experience, education and skills. This prevents an
expectation that employees will perform tasks for which they have no
previous experience or training and to keep them from performing
beneath their capacities.
Human Resource Management
• Human resource Management comprise of the formal system
designed to manage people in an organization.
• Including time, money and project management – it is essential to
manage people in the organization.
• Managing people is one of the most challenging task, thus, the
significance of HRM has emerged dramatically.
• Specially after 1990s with rapid globalization and competition
required HR department to become more concerned with cost,
planning and the implication of various HR strategies to both
organization and their employees.
Role of the HR Management
The role of human resource management professionals has
dramatically evolved over the years.
1. Strategic: Linking up the human resource strategy with
organizational mission and the work of the people in the
organization.
2. Operational: Managing functional human resource activities and
serving and ‘employee champion’.
3. Administrative: Recordkeeping, process administration and
compliance efforts.
HR management in eight key functional
area
Pinwheel model suggest that the management of human resources in an
organization centers eight key functional areas.
These functions are a collection of specialized HRM work. For each
functional areas, HR professional are responsibly for Key activities.
1. Strategic and Planning: Identifies and manages current and future
needs to achieve organization goals. The activities of strategy and
planning include Analysis, planning and effectiveness of HR processes.
2. Compliance: Doing what is asked or required by federal, state and local
government. Activities: Equal employment, Federal regulation, State
regulation, Local gov, laws and regulation.
HR management in eight key functional
area
3. Talent Management: Integrated processes to attract, motivate and
retain productive, engage employees. Activities: Recruitment,
Interview, Selecting, and onboarding
4. Training and Development: Betterment of people and performance
through information they will use. Activities, Training, capacity building,
career planning etc.
5. Performance Management: Processes to ensure the organization
connects mission with the work of employees. Activities: Performance
Appraisal, Improvement and Intervention. (Its all about managing
performance of employee at the right time for right reasons)
HR management in eight key functional
area
6. Total Rewards: Financial and non-financial tools used to attract,
motivate and retain employees. Activities: Compensation, Benefits,
Recognition and work life balance.
7. Safety and Health: Ensuring the safety, health and welfare of people
at work. Activities: Employee safety management, security and workers
compensation.
8. Employee and Labor relations: The relationship of employees with
organization and with each other. Activities: HR Policy management,
work place Investigation, Labor relations, ensuring employee rights.
Staffing
• Staffing is the process of hiring eligible candidates in the organization
or company for specific positions. In management, the meaning
of staffing is an operation of recruiting the employees by evaluating
their skills, knowledge and then offering them specific job roles
accordingly.
• Staffing is a critical organizational function which consists of the
process of acquiring, deploying, and retaining a workforce of
sufficient quantity and quality to create positive impacts on the
effectiveness of the organization.
• Staffing is one of the significant functions of the management
Process of staffing
• Staffing involves mapping the organisational structure through proper and effective
selection, appraisal and development of personnel to assign the roles so designed.
• An enterprise without the human resource cannot perform any functional activity.
Every activity of an organization is centred on the employees of an organisation.
Staffing is concerned with procurement of people and placement and managing
them to achieve the goals of an enterprise.
• Staffing is a continuous process of repetitive nature. Many employees may leave the
organisation and may join other and vice versa.
• Employee’s turnover process is affected due to various reasons like voluntary
retirement, discharge, dismissal, transfer, retrenchment, etc. This ratio of employee’s
turnover has to be constantly monitored by the management to have a clear picture
of incoming and outgoing employees. This would enable the management to
maintain an optimum level of staffing at all times.
Process of Staffing
1. Manpower Planning – This is the first step in the process of staffing. It is
concerned with determining the number and types of staff required for the
organisation.
2. Employment of Personnel – It involves recruitment and selection of
personnel as needed in the organisation. Recruitment refers to
identification of the sources of manpower availability and making of efforts
to secure applicants for the various job positions in the organisation.
Selection is the process of choosing and appointing the right candidates for
various jobs in the organisation. It includes receiving and screening of
applications, employment tests, interview and medical examination of
candidates.
Process cont.
3. Placement – When a new employee reports for duty, he is to be placed
on the job for which he is best suited. Placement is a very important
process as it can ensure ‘right person doing the right job’. If a new
employee is not able to adjust on his job, he may be given some training
or transferred to some other job.
4. Induction – Induction is concerned with the process of introducing or
orienting a new employee to the organisation. The new employees are
familiarised with their units, supervisors and fellow employees. They are
also to be informed about the working hours, tea or coffee breaks, lunch
period, procedure for availing leaves, safety precautions, medical
facilities, transport facilities, etc.
Process cont.
5. Training – Systematic training helps in increasing the skills and
knowledge of employees in doing their job. Various methods of training can
be used to enhance the knowledge and skills of the employees. On-the-job
methods are more useful for the operative employees and off-the-job
methods can also be employed for the supervisory personnel.
6. Compensation – Remuneration of workers involves fixation of their
wages and salaries depending upon their level, nature of work, degree of
risk involved, etc.
7. Performance Appraisal – It is concerned with the rating or evaluation of
the performance of the employees. Transfer and promotion of the staff are
based on performance appraisal.