Value Based Management

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A Proposal to Introduce Value Based Management in NGOs of Bangladesh Munima Siddika[1]

Abstract: Presently the rapid growth and diversification of the gigantic NGO sector of Bangladesh has given rise to questions and concerns, about their trade-offs between sustainability and pro-poor orientation; the impact and quality of services; corporate governance; management and accountability. The paper is based on a proposal to introduce a modern management system viz. value based management (VBM) in the NGOs of Bangladesh. Value-based management can be defined as an integrated management control system that measures, encourages and supports the creation of net worth. The report of Transparency International Bangladesh ‘Problems of Governance in the NGO Sector: The Way Out’ (TIB) 2007 is used here as an information source of finding out the flaws of existing management techniques. Finally the paper recommended implementation techniques of VBM in order to regain the image of the NGOs as a pioneer of social welfare in Bangladesh.

Keywords: NGO, Transparency, Governance, Management, Strategies, Value Addition, Value Based Management etc.

1. Introduction

Bangladesh has largely failed to assist the poor or reduce poverty because of limited resources and faulty planning, while Non Government Organizations (NGOs) have grown dramatically and ostensibly to fill up this gap. There are more and bigger NGOs here than in any other country of equivalent size. Bangladesh’s NGO sector is remarkable for the speed with which it grew to its present size and prominence (World Bank, 2005). It is difficult to find out the real number of NGOs operating in Bangladesh, because they are registered under different Government agencies as development partners. ADAB has a membership of 886 organizations of which 231 are central members and 655 are chapter members (as of December 1997). A survey held on 1997 shows the there are 206,142 non-profit organization of which 189,309 are religious are operating in Bangladesh. The NGO Affairs Bureau of the Government of Bangladesh (GOB), which has to approve all foreign grants to NGOs working in Bangladesh, released grants worth about $564 million US dollars in FY 2006-07 to 2,156 NGOs, of which 1959 are local and 197 are foreign (NGO Affairs Bureau, April, 2007). NGOs have mainly functioned to service the needs of the landless, usually assisted by foreign donor funding as a counterpoint to the state's efforts (Lewis, 1993). NGOs in Bangladesh are engaged in diverse activities: Micro-credit (a legally authorized income generating activity), education, health, family planning, environment, human rights, women and children welfare, etc. but they have increasingly become subject to question and criticism from the government, political parties, intellectuals and the public in general for misuse of funds; gender discrimination; nepotism; lack of accountability, good governance and transparency. The recent Transparency International Bangladesh (TIB) report 2007 pointed out enormous problems of governance in NGO sector besides its robust growth and great contributions to public welfare. It creates a need and obligation to manage the NGOs by introduction of modern management system. This paper will demonstrate the guidelines for introducing value based management system (a modern management system) in NGOs of Bangladesh.

2. Objectives of the study

The broad objective of the study is to explore the ways of implementing value based management in the NGO sector of Bangladesh. The specific objectives of the study include the following:

1. To highlight the importance of implementing modern management system in the non-profit sector.

2. To emphasize the magnitude of exploiting organizational resources by the NGOs in Bangladesh.

3. To make some recommendations to overcome the lack of good governance and accountability in the NGO Sector in Bangladesh.

3. Methodology of the study

This is a...
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