The Culture of the Samurdhi Program and ASB Sri Lanka.docx

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    An Assignment By

    Golden Flowers

    MGT 2208

    Organizational Culture

    Level II Semester VII

    Course Facilitator: - Dr. R Senathiraja

    Department of Management and Organization Studies

    Faculty of Management and Finance

    University of Colombo

    16/03/2012

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    Mine-clearance ....................................................................................................................... 17

    Public Infrastructure ............................................................................................................... 17

    Social Infrastructure ............................................................................................................... 17

    Emergency Relief .................................................................................................................... 18

    Activiteis of ASB .......................................................................................................................... 18

    Providing help as quickly as possible, as long as necessary ................................................... 18

    Strengthening local partners .................................................................................................. 18

    Promoting international partnership ..................................................................................... 18

    Bundling resources ................................................................................................................. 19

    Accounting for what they do .................................................................................................. 19

    The Culture of ASB ...................................................................................................................... 19

    Summary ..................................................................................................................................... 21

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    BACKGROUND OF THE SAMURDHI PROGRAM

    Social assistance programs can play an

    important role in reducing poverty.

    However, these programs are costly and

    impose a financial burden that must be

    covered by taxation or debt. Moreover,

    they can affect peoples economic

    behavior by distorting their incentives. In

    addition, any social assistance program

    must compete with other government

    social spending (such as basic education

    and health) and other government

    programs that alleviate poverty.

    Sri Lanka has a long history of social programs and of food subsidies in particular. The

    most recent poverty alleviation program, Samurdhi, was introduced in 1995. The

    program claims almost 1 percent of the gross domestic product (GDP) or roughly half

    of all welfare expenditures, excluding expenditures on education and health, and is the

    largest welfare program presently operating in the country. This program was

    conceived by the Government of Sri Lanka to alleviate poverty and create opportunities

    for the youth, women, and the disadvantaged. The bulk of program resources is

    distributed as transfers of consumption grants to households, with eligibility determined

    by means testing. In 1998, the household eligibility threshold was set at approximately

    one-third of the national poverty line. In the same year, the Central Bank reported the

    program covering 50 percent of households in the country while poverty rate was 20percent already in 1990. This outcome alone suggests that many non-poor households

    receive Samurdhi grants. A thorough investigation of the design, operations, and

    outcomes of the program is therefore warranted.

    The Samurdhi program has three major components. The first is the provision of a

    consumption grant transfer (food stamp) to eligible households. This component claims

    80 percent of the total Samurdhi budget. The second component of Samurdhi is a

    savings and credit program operated through so-called Samurdhi banks, and loans

    meant for entrepreneurial and business development. The third component is

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    rehabilitation and development of community infrastructure through workfare and

    social (or human) development programs.

    The administration of the program was given to the Ministry of Samurdhi, Youth, and

    Sports. Three departments within the ministry coordinate various Samurdhi functions:

    the Department of Poor Relief, the Department of the Commissioner General of

    Samurdhi, and Samurdhi Authority. There are district, divisional, and zonal-level

    Samurdhi authorities

    GOALS OF THE PROGRAM

    VISION OF THE SAMURDHI PROGRAM

    To build a prosperous Sri Lanka with the least possible poverty

    MISSION OF THE SAMURDHI PROGRAM

    To contribute towards a stable national development with the least possible poverty

    through development based on public participation.

    THE STRUCTURE OF THE SAMURDHI PROGRAM

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    ORGANIZATION STRUCTURE OF THE SAMURDHI PROGRAM

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    OBJECTIVES OF THE PROGRAM

    Providing a sound investment capacity to the poor people through theenhancement of their savings.

    Providing them with the necessary small scale credit facilities Developing their production capacity and introducing sound income sources Taking action to relieve them of poverty Saving beneficiaries from the grips of money lenders who charge exorbitant

    rates of interest

    Relieving them from problems such as the need to provide securities andguarantees

    To install them a credit discipline and thereby inculcate better banking habits

    SERVICES OF THE SAMURDHI PROGRAM

    Here is a list of services of Samurdhi program

    Agriculture Division

    Promotion of special projects for agro productions Promotion of local food crop cultivation Coordination of small scale plantation crop cultivators through line institutions Asweddumization of paddy field left fallow. Home gardening Development Project Post harvest technology and processing projects.

    Animal Husbandry and Fisheries Programme

    Milk Cow Programme Erection of cattle sheds Establishment of bio gas units and processing of bio gas units Goat keeping projects Pig keeping projects Poultry Keeping Projects Minor Fishing Year Projects Making tanks for ornamental fish

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    By products of milk Dry fish, Jaadi and maldive fish projects Milk sales and Milk Collection projects

    Industrial Development Division

    Development of small scale industrial projects. Development of mining villages Development of Model industrial villages

    Sales and Service Division

    Promotion of Samurdhi Domestic sales Outlets

    Promotion of Rice Sales Promotion of Mobile Trading Promotion of Saloons Promotion of restaurant / catering services Promotion of Servicing vehicles Promotion of Beauty Therapy Promotion of Domestic Services Promotion of Child Care Centers Promotion of Communication Centers

    Banking and Financial Division

    Providing Loan Facilities Promotion of Savings

    Maha Sangam Division

    Organization of training courses for livelihood Development Compilation of Project Reports Coordination of Support Services Maintenance of Data system

    Social Development Division

    Diriya Piyasa housing programme

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    Model Villages Programme. Programs on children and child care. Organizations structure of Samurdhi program

    ACTIVITIES OF SAMURDHI PROGRAM

    Provision of consumption grant Provision of social insurance Forced savings Voluntary savings Providing banking services Credit programs Social development programs Capital projects Youth employment

    WAYS OF FINDING THE NECESSARY CAPITAL FOR A

    SAMURDHI BANK

    Government donations Members shares Members and non members savings Loan grants obtained from the Samurdhi union Membership of the Samurdhi bank

    THE PROBLEMS FACED BY THE SAMURDHI PROGRAM

    ADMINISTRATIVE AND INFORMATIONAL COST

    The cost of targeting increases with the accuracy of targeting, and targeting involves

    trade-offs between under coverage and leakage. A large body of literature exists on

    both the theoretical underpinnings of the administrative and informational costs of

    implementation and empirical estimates of the cost of targeting. It is well understood

    that administrative cost is an increasing function of the accuracy of targeting and thatthe goal of minimizing leakage might lead to stigma effects and under coverage.

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    Samurdhi incurs the targeting cost of 8 percent of the total program that is comparable

    with the administrative cost of other targeted program. The inferior targeting outcomes

    of Samurdhi cannot, therefore, be explained on the basis of saving on administrative

    costs. On the contrary, the program employs the administrative capacity but fails to

    deliver expected outcomes. Substantial under coverage and leakage errors coexist. The

    efficiency loss due to these errors is compounded by the nonrandom nature of these

    errors.

    INCENTIVE EFFECT

    Targeted subsidies change relative prices faced by households and therefore might

    affect labor-leisure allocation and migration decisions. Literature in both developing

    and developed countries shows empirical evidence of these effects. Samurdhi, as

    means-tested program, has the potential to alter the price of leisure and imposes high

    marginal taxes on labor income. A household also loses its eligibility upon employment

    of any household member. The Samurdhi incentive scheme has the capacity to deter

    geographic mobility as well.

    POLITICAL ECONOMY

    In short, a transfer program might have less support from middle- and upper-income

    constituencies if it renders benefits to the poor only. It is not clear, nevertheless,

    whether political economy considerations alone can justify the existence of a largely

    inefficient program that nonrandomly excludes otherwise eligible households with

    particular characteristics.

    NATURE OF THE GOOD PROVIDED

    Presumably, a social planner would be less concerned with leakage if consumption of

    the transferred goods renders benefits to the whole society. While subsidizing

    consumption of those below the poverty level has short-run and long-run implications

    for the overall use of productive resources, subsidizing nonpoor households has

    diminishing benefits to society.

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    WEAK ACCOUNTABILITY

    Efficiency requirements imply that the checks of accountability and transparency must

    be embedded in the design of a transfer program. Most important, the program should

    embed an external mechanism for monitoring and evaluation. The Samurdhi program

    appears to lack these. Samurdhi officers are accountable to two authorities, one of

    whom is a local politician. Thus the people who carry out the program are not free of

    political influence, and no external checks and balances are present to prevent them

    from acting on the demands of politicians. The absence of strict rules for program

    eligibility does not help the cause either. Politicization is embedded in the design and

    influences both the selection of Samurdhi administrators and the selection of

    beneficiaries. These design flaws lead to implementation problems and compromise the

    system of social assistance at large.

    CULTURE OF THE SAMURDHI AUTHORITY

    Values

    In Samurdhi authority delegating power and sharing knowledge is not the best way to

    make decisions. Government decisions are the way to achieve their targets. They help

    out with family matters of their subordinates and they consider suggestions of

    employees but the consideration of suggestion of customers is questionable.

    Degrees of involement

    Almost they make decisions as collective at lower level (branches level). Decisions

    related to the nature of the company are made by the government. There is the freedom

    to solve subordinate's problems collectively in Samurdhi program.

    Friendship

    There is a friendly environment among Samurdhi Development Officers in Samurdhi

    Bank societies and among Members in Samurdhi Societies as well as among customers

    in small groups. They organize trips in every years and they celebrate all religious and

    other ceremonies as a friendly team.

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    Creativity

    They believe that competition can be overcome through the creativity in providing

    service but there service at a bank is not greater to compete with others. There is not an

    opportunity to new things of employee because Samurdhi program is a government

    program. They do not use the modern technology in providing services.

    Competition

    They believe that the competition is the best way to improve the quality of the service

    but they do not consider about the competition. Advertising is not the way to expand

    the services and the market.

    Independence

    They have been given the independence to their employees at working. Employees of

    Samurdhi program are performing well. The manager does not provide a much

    supervision to development officers while working. But they must behave as well as

    possible.

    Risk taking

    They are taking a risk to perform well in the market and they have to follow a rigid

    procedure which has been provided by the government.

    Rationality

    The authority prepares a plan from year to year for their day to day activities. The

    target and the suitable plan for the branch must be identified. They must follow the plan

    to achieve the target. The manager must monitor the plan along actual activities and

    variances must be identified.

    Legality

    They must consider public interest and they must provide services according to the low

    as well as Authoritys regulations.

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    Customer orientation

    Samurdhi customers are well satisfied. Samurdhi program are satisfying the wants and

    needs of poor people in the country. The quality of the service can be consider as good

    rather than other poverty alleviation program implemented in Sri Lanka.

    Orderliness

    The success of the project is led by the proper plan provided by the authority. The bank

    must be open at normal working hours and employees report to work on time. No

    bribes and no misconduct in lower level of the program

    Loyalty

    They have recruit employees who loyal to the government but they loyal to their bank

    as well as costomers. Samurdhi development officers dedicate to provide a better

    service to their village people on other hand their customers

    Control

    Government authority must have a tight control system to achieve their target.

    Samurdhi program also have a tight control system which made by the government. All

    financial activities are through the central bank and the government treasury with

    higher custody. Corrective actions to identified variance are taken by managers of a

    Samurdhi bank.

    SUMMERY

    The Samurdhi program is the largest welfare program currently operated in the country.

    It is providing many services through many activities. Finally when we consider the

    overall process of the samurdhi program we can see a role culture in the program,

    because there is a core integration between the departments of the samurdhi authority.

    On other hand individual performance is not count and can see many departments.

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    BACKGROUND OF ASB

    Arbeiter-Samariter-Bund

    Deutschland - ASB

    (Workers' Samaritan

    Federation), a German

    NGO, was founded in 1888

    on humanitarian and

    democratic principles. ASB

    is the one of the largest

    NGOs in Germany with

    over one million members in Germany and more than 15,000 full-time employees, over

    11,000 honorary employees and over 5,000 employees in the community services.

    ASB's headquarters is located in Cologne. Over 110 years ago, people's life and their

    health were deemed to be at risk in the workplaces in industrialized Germany. In order

    to decrease the number of accidents at work and improve their protection, workers in

    Berlin initiated the first training course in first aid which led to foundation of today's

    ASB. Since then, ASB developed a number of different activities in the field of social

    and medical services such as emergency rescue services, housekeeping assistance, meal

    services, home care, assistance for the handicapped, and assistance for children, youth

    and elderly. Throughout the years, ASB became one of the key players in the field of

    social and medical services as a result of professionally implemented tasks carried out

    by dedicated volunteers and employees.

    ASB first came to Sri Lanka in late 2002, with an initial visit to explore possibilities for

    establishing a program of activities to support IDP resettlement and rehabilitation. At

    that time during the early days of the ceasefire there was a great degree of optimismand hope that it would be possible to assist people and communities in the important

    transition from conflict to long term development. Subsequently ASB registered as a

    Sri Lankan NGO under the ministry of social welfare in Sri Lanka. This optimism

    proved to be short lived when a massive tsunami struck the island nation in December

    2004 and 2006 when the armed conflict resumed. During the period of January 2005

    April 2009 in cooperation with various UN agencies and INGOs, ASB implemented a

    range of humanitarian and socio economic assistant activities based on a one country

    programme strategy. ASB have also implemented several other projects deemed critical

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    for increasing employability of marginalized youth, building and sustaining community

    peace at the grassroots, linking marginalized groups with government and non

    government services providers and creating sustainable livelihoods opportunities for

    the rural poor.

    ASB Sri Lanka today has its own independent systems in order to support its

    countrywide programme and project activities and stands ready to help those in need of

    urgent care and assistant. ASB currently works in six districts in Sri Lanka.

    GOALS OF THE ASB

    ASBVISION

    We believe in a world of solidarity, tolerance, and respect in which all people live in

    dignity and peace.

    ASB MISSION IS TO HELP

    In all programmes aimed to overcome hardship and poverty, ASB is focused on the

    needs of people and includes them together with local partner organizations, in the

    planning and implementation process. Thus the skills and expertise of the local

    population and the resources available in the area can be used effectively while at the

    same time peoples capacities for self help are strengthened. ASB hands over

    responsibility for the projects to its local partners at the earliest possible stage in order

    for the activities to be carried in independently. An essential component of ASBs

    foreign aid programme is the support of civil society also based on the principle of

    helping people to help themselves.

    To complement its mission in rescue services extending from emergency rescue to

    disaster protection-ASBs tasks cover care for the elderly, child and youth services,

    assistance for disable people as well as education and further training for adults. ASB

    extended its mission to foreign aid in the 1980s and at present is actively engaged in

    emergency aid, rehabilitation and long- term development projects in Africa. Asia,

    Central America and Eastern Europe.

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    THE STRUCTURE OF ASB

    OBJECTIVES OF THE PROGRAM

    Disaster risk reduction. Humanitarian aid. Return and reintegration. Disaster management.

    SERVICES OF ASB

    ECONOMIC ASSISTANCE

    The ASB's programmes throughout the South Eastern Europe region has been

    contributing significantly to income generation through employment in public works

    projects purchase of local materials, supplies, services and local contracting.

    Additionally, donations in kind are used to rehabilitate small and medium enterprises

    (SMEs) in the selected project areas.

    RECONSTRUCTION OF HOUSING UNITS

    The reconstruction of property destroyed in the war and the provision of adequate

    housing is still a precondition for return for most refugees and displaced persons (DPs).

    Countrydirector

    Account

    Finance

    manager

    Assistant

    finance

    manager

    Administration

    Projects

    managers

    Project

    coordinators

    Transport

    coordinators

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    Therefore, the current ASB's programmes still cover the reconstruction of damaged

    housing units throughout the region of South Eastern Europe. Assistance is provided to

    all categories under the ruling laws: category 1-3, minor damages and category 4-6,

    more severe structural damages

    MINE-CLEARANCE

    Mine-clearance is a precondition for many reconstruction projects and safe return to

    war- affected areas. In the last fifteen years of its presence in the Balkans region, ASB

    has been providing an extensive humanitarian mine-clearance in order to secure the

    safety of the returnees, support the sustainability of their return and to ensure further

    normalization of life throughout the war-affected countries

    PUBLIC INFRASTRUCTURE

    The rehabilitation of the technical infrastructure in the targeted areas is as important as

    the reconstruction of houses since it is necessary to meet the future needs of the

    returnees and entire communities. Major parts of the utility network in war-affected

    areas are still substandard if existing at all. Local governments are rarely able to meet

    the infrastructure needs of the local communities. However, this situation has improvedin some countries of the South Eastern Europe (SEE) but still continues to present a

    serious problem for the economic revitalization and development, particularly of the

    war-affected areas. This also applies to environmental issues.

    SOCIAL INFRASTRUCTURE

    The reconstruction of social infrastructure is an equally crucial factor in supporting the

    return and reconciliation process. It improves basic living conditions and the

    environment within the community, particularly for younger families. Thus for the

    success of the ASB's programmes in the South Eastern Europe region, emphasis

    continues to be placed on the provision of these services. "Community Reconstruction"

    also has a direct impact on the number of people returning to their pre-war homes.

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    EMERGENCY RELIEF

    The comprehensive approach of ASB in the Balkans has been linking relief,

    rehabilitation and development following the 'LRRD' strategy acknowledged by the

    European Commission in 1996. In accordance with this strategy, 'rehabilitation' forms a

    bridge between relief and development and eases the transition between the two. Better

    emergency relief is contributing to the development process while better development

    can diminish the need for emergency relief. However, this is not a linear process and

    very often, interventions have to be applied in the field of emergency relief.

    ACTIVITEIS OF ASB

    PROVIDING HELP AS QUICKLY AS POSSIBLE, AS LONG AS NECESSARY

    Their work is based on an integrated and holistic approach. In a event of a sudden crisis

    of disaster, they help as quickly as possible, for example by developing their rapid

    response team and through the help of reliable partners and established country officers

    on site. They furthermore feel obliged to provide support to people struck by a sudden

    crisis or disaster as long as necessary. Therefore they not only first aid services but they

    also help communities to rebuild and provide long term measures to fight the reason of

    poverty and help the population to better prepare themselves for future disasters.

    STRENGTHENING LOCAL PARTNERS

    They aim to improve the living condition of local population and to rescue their

    dependence on external support. They strengthen the local populations capacity to help

    themselves by systematically supporting local groups through consultation, further

    education and financial means. Our flexibility in terms of programs and strategy

    enables them to react in an optimal way to local needs in the respective country.

    PROMOTING INTERNATIONAL PARTNERSHIP

    Within their Samaritan cooperation for central and Eastern Europe, they promote and

    accompany international partnership between German local and regional associations

    and international Samaritan organizations. Thus they help to establish sustainable

    welfare structures in their countries and to provide a range of social services for people

    in need.

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    BUNDLING RESOURCES

    As part of leading welfare an organization, they can rely on a wide range of experience

    and know-how. They share this knowledge with their partners and, on a basis of trust,

    cooperate in national and international networks.

    ACCOUNTING FOR WHAT THEY DO

    A responsible and efficient use of their financial means is part of our philosophy.

    Therefore, they undertake towards the recipient of their help as well as towards their

    donors and the public that they account for what they do.

    THE CULTURE OF ASB

    Values

    Delegating power and sharing knowledge is the best way to achieve goals. They always

    consider suggestions of customers, government and employees. All workers are

    working as a family.

    Friendship

    There is a friendly environment among top level management and lower level workers.

    They celebrate all religious and other ceremonies as a friendly team and they

    organizing annual trips for their staff.

    Creativity

    They believe that competition can be overcome through the creativity in providing

    service. They use modern technology for providing services and always try to help their

    target people.

    Competition

    They believe that the competition is the best way to improve the quality of the service.

    They believe that without advertising it is difficult to expand service and market but

    they do not consider about the competition. Therefore nonprofit organizations need not

    advertising.

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    Independence

    The manager does not provide much supervision while working because employees are

    performing well.

    Risk taking

    They are taking a risk to perform well in the society. They have to follow a rigid

    procedure which has been provided by the government.

    Rationality

    They are following a plan to achieve the target. They evaluate programs annually.

    Legality

    They must provide services according to rules and regulations of government as well as

    organization regulations. They must consider public interest and social welfare.

    Customer orientation

    Always try to help their target people and satisfy them. Mainly consider the quality of

    the services they provide.

    Orderliness

    The success of the project is led by the proper plan provided by the administration as

    well as they encourage workers who take initiatives and work without much

    supervision.

    Loyalty

    They have recruit employees and volunteers who loyal to nonprofit organizations. They

    are loyal to the society as well as their employees.

    Control

    Their all financial transactions are mainly operated through banks and Always give a

    high priority for punctuality. They maintain a complete accounting system. They have a

    proper plan for all activities and assess and monitor the progress according to the plan.

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    SUMMARY

    ASB is a non government organization which is providing many services through many

    activities to the country. It also has characteristics of a role culture like many

    departments, core integration, but when we consider the overall process of the

    organization there is a task culture because their main purpose is to complete a task or a

    project through the communication the expert power.