Welcome
To Attending
The Session
• Group Member’s are,
Kazi Mohidul Islam
Md. Mahedi Hasan
Md. Quiyumur Rahman Sajib
Mu. Juel Sikdar
Sonnet Bhowmik
Clamet Chandon Roy
ID NO: 10310059
ID NO: 10310058
ID NO: 10310430
ID NO: 10310163
ID NO:10310165
ID NO: 10310033
Term Paper On
Palli Karma Sahayak Foundation(PKSF)
Table of Contents
No:
Particulars
Page No:
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17.
Executive Summary
Introduction
Historical Background
Mission, Funding, Business Strategy and Main Business of PKSF
Training, On Site Technical Assistance, Major Objectives of PKSF
Programs and Projects of PKSF, Business Communication with Po’s
Organizational Communication
Formal Communication
Vertical Communication
Organogram
Management
Internal Communication
External Communication
Loan Disbursement Status
Some Lessons from PKSF
Recommendation
Conclusion
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Executive Summary
With the great success of Grameen Bank’s micro credit program,
many large NGOs in Bangladesh introduced micro credit program for
their target groups. Smaller NGOs followed the same path. But the
smaller NGOs lacked adequate financial support for their micro
credit program. However, there were not many donors ready to
come up with funds for micro credit programs for these small,
locally based NGOs. At the same time, for those which received
some support there was no guarantee about the continuity of donor
funds. However, NGOs had gradually acquired some skill and
organizational strength to organize local poor people and to extend
financial services to them. In this context, GOB set up the Palli
Karma Sahayak Foundation (PKSF) in May 1990 as an apex
organization to provide loans to the NGOs which in turn would
provide collateral free credit to their poor members and to provide
advisory services and training to NGOs for enhancing their
institutional capacity. PKSF set up as a “company not for profit”
by the government is unique in its character and operations.
We went to PKSF, collected necessary information's from PKSF and
then make a report of this collected information’s. PKSF is an
excellent organization working in a financial sector and its
organizational communicational system is very good. They have
achieved great reputations in home and abroad.
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•
•
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Introduction
Origin the report:
This is informed that the report paper on Palli Karma Sahayak
Foundation (PKSF). It has been prepared as a requirement of the course
title Business Communication (MGT-242). We have been assigned to
write a report on this subject by our class teacher of Business
Communication Lecturer Afrins Farid for the partial of the course. It has
been prepared for academic purpose only.
Sources and Methods of Collecting Data:
All information of this term paper is collected from two sources.
These are given on the below:
First one, we have collected information by visiting PKSF.
And another, we also took help from the internet.
Link: www.pksf.org
Limitations:
This report is not out of some limitations. Throughout the report we have
faced a lot of problems. Some of this areLimitations of time for make this report.
This is our first time to make that type of report.
Don’t have any knowledge to make a particular company report.
Historical Background
• Palli Karma Sahayak Foundation (PKSF) was set up by the Government
of Bangladesh in May 1990, as a non-profit organization for alleviation
of poverty. The meaning of Bengali ‘Palli Karma Sahayak Foundation’ is
‘Rural Employment Assisting Foundation’. But PKSF is also doing some
activities among the urban poor of Bangladesh in some selected areas.
PKSF is an apex funding agency, empowered to channel microcredit
funds to its Partner Organizations (POs), i.e. Micro Finance Institutions
like NGOs, Banks, Cooperatives etc, for on-lending to the rural poor,
especially to the women, for poverty alleviation through the creation of
self-employment opportunities (PKSF, 1990). PKSF also has a role in MEI
capacity building to promote financially viable partner MFIs in
Bangladesh. PKSF’s mission is to ensure that the funds it distributes are
used in ways that will ensure that PKSF has a repayment rate that is no
less than that which it expects its partner organizations to achieve.
• Since 1990, PKSF has been operating the loan fund from the
Government of Bangladesh, the World Bank, The Asian Development
Bank , and The International Fund for Agricultural Development and
The United States Aid for International Development.
• It appeared to have done so very successfully and has,
in the process, acquired valuable experience in the
fields of poverty alleviation , both income and wealth
creation based poverty reduction among the rural poor,
microenterprise development, MFI ratings, financial
intermediation product and services development and
capacity building for sustainable microfinance.
• From the very beginning PKSF got a learned governing
and dedicated management staffs to achieve its specific
objectives.
Some
factors
like
pro-microcredit
environment, population density and homogeneity,
geographical characteristics, less involvement of
Government etc. make easy to reach its goal. Though
PKSF has become one of the most successful apex
microfinance organizations in the World, but it has also
faced several challenges.This essay explores the
achievements of PKSF in each of these areas with a view
drawing out lessons learned and issues to be addressed.
Mission and Objectives of PKSF
PKSF was set up in 1990 by the Government of Bangladesh with an
overall objective of alleviating poverty and improving the quality of
life of the rural poor – the landless and the asset less people by
providing them with resources for creation of employment for
enhancing economic conditions.
Funding of PKSF
PKSF mandate authorizes PKSF management to mobilize funds in
the forms of grants, loans and contributions from a wide variety of
sources which include the Government of Bangladesh (GOB), private
individuals and organizations, foreign governments, international
donors and lending agencies and capital markets.
So far PKSF has received funds from the GOB, the IDA/World Bank,
USAID and ADB
Business Strategy of PKSF
The basic business strategies of PKSF have been drawn from its objectives:
a)
It does not directly lend money to the landless and the asset less
people rather reaches its target groups through its
partner
Organizations (POs), the delivery mechanism for reaching
the
poor.
b)
It provides greater cooperation's to institutional development.
c)
It favors no particular model, instead innovations and different
approaches based on experience are encouraged.
Main BUSINESS OF PKSF
In order to achieve the objective of sustainability. PKSF performs the major
functions expected of an apex organization. These include, among others:
Provision of available funds to PO's
Developing best practices for micro credit management and operations of
PO's.
Institution/capacity building support to PO's.
Lobbying for appropriate policies and regulations useful for the expansion of
microfinance sector
INSTITUTION/CAPACITY BUILDING SUPPORT TO PO'S
PKSF involved in Institutional capacity building of PO's. Institutional capacity
building has implications on a number of areas comprising program
outreach, absorption capacity of the MFIs, supervision and monitoring,
financial management and control, personnel policy including human
resource development (HRD), sustainability of micro-credit program and
MCI itself etc.
The institutional development components include the following:
TRAINING
Training for POs personnel has been identified as one of the vital activities
of PKSF for enhancing institutional capacity for successful management of
micro credit program. To implement the training program PKSF has created
a Training Unit headed by General Manager Administration. The unit is
supported by a seven member Implementation Team (IT) consisting of
senior level staff members. The Manager and two Assistant Managers carry
out the routine works of the unit. PKSF has identified some Training
institutes belonging to both public and private sectors and out-sources its
training programs to these institutes following the training plan incorporated
in the yearly training calendar.
ON-SITE TECHNICAL ASSISTANCE
PKSF officers, when they make field visits for on-site monitoring of
POs’ programs, provide the POs advice on different aspects of
management and operations of their microfinance programs. This
on-site technical assistance has been found very effective in
improving the efficiency of POs’ programs.
MAJOR OBJECTIVES OF PKSF
The major objectives of PKSF are…….
To provide credit to MFIs for generating employment for the poor.
To initiate, undertake and promote research activities directed
towards poverty
alleviation and pro-poor employment generation
in rural Bangladesh
To establish strong advocacy for pro-poor policy in home and abroad
especially in the field of microfinance.
PROGRAMS AND PROJECTS OF PKSF
PKSF maintain some products by which it provides their loan based on this
products. During 2003-2004 PKSF began their projects with these
products...
RMC (Rural Micro Credit),
UMC (Urban Micro Credit),
MEL (Micro Enterprise Lending)
UP (Ultra Poor)
LIVESTOCK
In the final year 2004/05, PKSF increase their product from five to six, in
the fy 2005/06 six to eight, in the fy 2006/07 eight to nine and the last
2007/08 nine to ten products including DMF (Disaster Management Fund),
MFMSF (Microfinance for Marginal and Small Farmer), LRP (Livelihood
Restoration Program), Rehabilitation, REDP (Rural Electritrification
Development Project), RNPPO (Rehabilitation of Non Motorized Transport
Pullers and Poor Owners).
BUSINESS COMMUNICATION WITH PO’S:
Official corresponding over telephone, letter, fax, e-mail.
Meeting and discussions
Workshops/Seminars
Organizational Communication
Organizational
Communication
means
Communication among the organizational person. It
may be formal communicational. Decision making &
controlling communication by top management
include
this
communication.
An
area
of
Communication that has recently gained attention is
Organizational communication. Organizations usually
have a chain of command, with one or several top
managers
making decisions
and
controlling
communication.
Effective
communication
in
Organizations ensures efficiency for consumers.
Organizational chart of PKSF
Organizational Table
BOARD
AND MANAGEMENT
MICROBANK
AREA
MICROBANK
STRATEGIC
AND
TECHNICAL
ASSISTANCE
MICROENTERPRISE
AREA
MICROBANK
FINANCIAL
SERVICES
ADMINISTRATI
ON FINANCE
AND CONTROL
NSTITUTIONAL
DEVELOPMENT
AND
COMUNICATION
RESEARCH
AND
ANALYSIS
Communicational Structure of PKSF
Formal Communication
Formal Communication is the easiest way to communicate in the
workplace, because it's all predefined by the by the organizational
structure. The organizational chart lays out the reporting structure,
lines of authority and channels of communication. The typical
organizational structure looks like a pyramid, at the top we find the
big boss, the position that hold the greatest authority, power and
responsibility over the rest of the organization. Within the
framework of the organizational structure, the formal channels of
communication include downward, upward, horizontal and matrix
communication.
PKSF organization follows formal communication, in general body
meeting governing body and general body members are formally
communicate with each other.
Governance
PKSF comprises of two constitutional bodies as per Article of
Association: the General Body and the Governing Body.
The General Body
The General Body of PKSF convenes once a year in the Annual General
Meeting (AGM) to provide overall policy guidance and approve the annual
budget that has already been endorsed by the Governing Body. As of March
2010, the General Body consists of 15 members. The total number of
members of the General Body shall not exceed 25 members, out of which
the GOB may nominate not more than 15 members from persons
associated with the government agencies, voluntary organizations or private
individuals having a successful record of service in poverty alleviation
and/or interest in such activities. The remaining 10 members, representing
POs and/or private individuals, are nominated by the General Body in the
AGM.
The Governing Body
The Governing Body of PKSF plays a role as the executive body that carries
out the responsibility of determining the direction and scope of PKSF’s
activities to achieve its goals. It is composed of maximum 7 members that
include: the Chairman of PKSF, who is nominated by the GOB from persons
who are not in government service; the Managing Director who is appointed
by the Governing Body in consultation with the GOB; two members are
nominated by the GOB from persons demonstrating achievement in poverty
alleviation; and the remaining three are non-GOB members having
noteworthy contribution in the development arena elected by the General
Body in the AGM. As of March 2010, there are 6 members in the Governing
Body.
Vertical Communication
In
a
organization,
vertical
communication
is
communication between those who are on different
levels of authority within the company. Examples are:
manager to employee, general manager to managers,
foreman to machine operator, head of the department to
cashiers, etc.
Vertical Communication consists of communication up
and down the organization’s chain of command.
Downward communication starts with top management
and flows down through management levels to line
workers and non-supervisory personnel. The major
purposes of downward communication are to advise,
inform, direct, instruct, and evaluate employees and to
provide organization members with information about
organizational goals and policies.
PKSF follows vertical communication, which is more
effectively for their internal communication. PKSF follows
vertical communication which is downward process.
Here is the PKSF Downward Vertical Communication chart:
Organogram
Organgram of Head Office
Board of Directors
Chart
Management
PKSF management is comprised of four broad divisions, including: OOSA,
BIPOOL, Administration and Audit. The divisions are as the followings:
A. OOSA Division: This division fully concentrates on credit program
with POs Operating in Small Areas (OOSA), which includes mid-size
and small organizations.
B.
BIPOOL Division: Its main responsibility is to implement credit
program with the Big POs Operating in Large (BIPOOL) areas. This
division also includes finance and IT cells.
C.
Administration Division: This division deals with day-to-day
general administration, alongside training, research, publications and
communications; library and archive; construction and maintenance;
human resource, security, and legal affairs among other things.
D.
Audit Division: It is a division that works as a watchdog for
ensuring
transparency in all aspects of financial affairs of
PKSF. It has two
wings — internal audit and external audit.
The audit division is
responsible for internal audit of PKSF and
ensuring regular audit of
the POs by external audit firms.
This OOSA division, BIPOOL division, Administration Division, and Audit
Division are including in managing director department. These divisions
are generally communicated horizontally between themselves.
Internal Communication
Authority of the company always keeps the attention for
improving the company. They discuss with their upper
level to lower level managers for the progression of the
company. They call meeting in the office for discussing
about the tasks. It is mandatory for all the managers to
attend in the meeting. In the meeting all kinds of
problems are raised. All the managers discuss with the
authority of the company by developing which process
they can reach the goal. After year to year the authority
calls seminar for detecting the problems faced by the
managers. Every times the managers keep the relation
with their higher posted officers by giving them actual
information related with the development of PKSF. In
official corresponding over telephone, letter, fax, e-mail.
Meeting and discussions, Workshops/Seminars that are
arranged in various times the authority of the company
discuss with the managers about the problems.
External Communication
Fax: Supervisors who are employed for managing the managers or management related employees
always concern about the company’s recognition. If the managers or management related
employees are not able to discuss about the problems face to face they inform their boss about the
problems with the help of FAX.
E-mail: Supervisors who are employed for managing the managers or management related
employees always concern about the company’s recognition. If the managers or management
related employees are not able to discuss about the problems face to face they inform their boss
about the problems in e-mail.
Every times the managers keep the relation with their higher posted officers by giving them actual
information related with the development of PKSF.
Messaging: Every times the managers keep the relation with their higher posted officers by giving
them actual information related with the development of PKSF.All the members who are responsible
for the company’s recognition always try to satisfy their higher level officers. So they collect
information and inform their boss by messaging.
T&T Phone & Mobile: Every times the managers keep the relation with their higher posted officers
by giving them actual information related with the development of PKSF. All the members who are
responsible for the company’s recognition always try to satisfy their higher level officers. So they
collect information and inform their boss over T&T Phone & Mobile.
Media: PKSF, a very well known micro-credit organization has established its reputation throughout
Bangladesh even in foreign countries. It has a great relation with Media. Sometimes at various
occasion many programs are telecast live in reputed channels of Bangladesh even in foreign
channels.
Some Lessons from PKSF Model
PKSF is unique in its organizational structure, activities and management practices. A few
factors can be identified that have made it possible to register such an impressive
performance.
PKSF has been established and funded by the government, but it has been kept as an
independent organization outside government bureaucracy. That enabled PKSF to form its
own policies and develop its own management practices suitable for its activities.
The outstanding quality of the Governing Body has contributed most in guiding the
management and forming and revising policies whenever necessary.
The policy of recruiting officials of above average quality has contributed most to the
growth and performance of PKSF.
PKSF has been successful in utilizing the capacities of local NGOs in quickly reaching the
poor and developing the POs to deliver the financial services to the poor. Selection of the
right POs was the most crucial factor for PKSF’s success.
The key to the sustainability of POs is the assured source of funds and the improvement in
the capacity of human resources backed by good management practices. In both areas,
PKSF has proven itself to be effective.
Financial intermediaries (NGOs) backed by resources from PKSF have been found to be
effective in reaching the poor. Both PKSF and the POs can also become sustainable in the
process.
One area that needs top priority from PKSF is enhancing the capacity of POs. This can be
done by more investment in development of the POs’ human resources.
The PKSF model (as an apex second-tier organization) shows potential for replication. It
can further grow and make a significant contribution in improving the quality of life for the
poor and poorest.
Recommendation
•
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•
•
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•
Palli Karma Sahayak Foundation is organization that is related with providing as a
financial capital source, so it should sanction loan based on its RMC, UMC, UPP,
LRP and so products emphasisation.
PKSF’s cumulative loan disbursement was always higher than its final year loan
disbursement because cumulative loan disbursement is the summation of final
year loan disbursement.
PKSF works for its partner organization as a Govt. agent, so its POs are
increasing day after day. Its POs will increase more if it work deliberately for it
POs.
If PKSF’s loan borrowers are benefited more, they will accept more and more
loan from PKSF under developed project, as a result PKSF’s return will be high.
Woman borrowers are the best users of the loan disbursement, So PKSF should
be concern more about the loan user woman.
In the globalization age PKSF can provide high technological training for its
employers, POs staffs.
After getting higher technological training, PKSF’s partner organizations can
implement through their members and borrowers.
If PKSF works on a practical situation its activity will be more effective.
If PKSF can be able to open its some new branch, then its activity will be more
functional.
Conclusion
Palli Karma Sahayak Foundation (PKSF) is a non-profit organization
and apex funding agency in Bangladesh. It is the unique
organization in Bangladesh who works only for its partner
organization as a Govt. agent. PKSF’s activities are implemented
through its partner organization. Loan borrowers are benefited from
PKSF through partner organization. PKSF never interact with group
members or loan borrowers for their recovery amount. Whenever
partner organization fails to return its capital, then PKSF goes for
action against them. PKSF’s total group members are 1, 11, 65, 235
whereas its ninety percentage members are woman. PKSF’s woman
members and borrowers are more discussed. So PKSF also attaches
priority to woman under its micro credit program towards
mainstreaming them and also to empower them. The number of
woman members in the FY 2003/04 was 62, 34.970 which reached
1, 00, 55, 662 in the final FY 2007/2008. The growth of woman
members in this five years period is 61 percent. On the other hand
in the FY 2003/04 , the total micro credit borrowers under various
programs and projects of PKSF was 51,04,940 and the number
increased to 82,83,814 in the final year 2007/08.The number of
borrowers in the five year period recorded 62 percent increase.
Thank You
For Attending
The Session