Peace and Community Action
ORGANISATIONAL DEVELOPMENT HANDBOOK
By Dave Williams
Adviser – Peace and Community Action
(Voluntary Services Overseas)
updated – July 2011
TABLE OF CONTENTS
SECTION 1 – THE GOVERNING BODY / 8
A. TERMS OF REFERENCE
1.0 Membership
2.0 Purpose
3.0 Roles and Responsibilities
3.1 Overall Responsibility
3.2 Duties
4.0 Frequency of Meetings
5.0 Structure
6.0 Reporting Procedure
7.0 Quorum
B. BOARD RECRUITMENT
8.0 Policy on Trustee Recruitment, Induction, Training and Support (see separate New Board Members Information booklet)
9.0 Recruitment and Selection Procedures
10.0 Induction Procedures
C. ARTICLES
11.0 Memorandum of Articles for PCA (See Appendix A)*
SECTION 2 – MANAGEMENT / 14
A. MANAGEMENT OVERVIEW
12.0 Organisational Chart
13.0 Governance and Management: Division of Responsibility
13.1 Governance Responsibilities
13.2 Management Responsibilities
13.3 Joint Responsibilities
14.0 Board Roles and Responsibilities and Management Job Descriptions (see Appendix B)
B. PERSONNEL POLICIES AND PROCEDURES
15.0 Recruitment and Selection
15.1 Responsibilities
15.1.01 Director Responsibilities
15.1.02 Office Responsibilities
16.0 Recruitment and Selection Panel Procedure
16.1 Short Listing
16.2 Interviewing
16.3 Appointing
17.0 Induction
17.1 Line Manager Responsibility
17.2 Office Responsibility
18.0 Conditions of Service
18.01 Contract of Employment
18.1 Hours of Work
18.1.01 Working Hours
18.1.02 Alternative Work Arrangements
18.1.03 Compensation Time
18.2 Time Keeping
18.3 Salary and Stipend Scale
18.4 Payment
18.5 Deductions
18.6 Method of Payment
18.7 Public Holidays and Staff Leaves
18.8 Recognised Public Holidays
18.8.01 Public Bank holiday
18.8.02 Sri Lankan Public Holidays
18.8.03 Mercantile Public Holidays
18.9 If National Holidays Fall on a Weekend
18.10 Personal Annual Holiday/Vacation Leave
18.11 Sick Leave
18.12 Maternity/Paternity Leave
18.13 Compassionate Leave
18.14 Unpaid Leave
18.15 Health Benefits
18.16 Visa and Passport
18.17 Grievances
18.17.01 Formal Grievance Procedures
18.17.01a Mediation
18.17.01b Board Final Decision
18.18 Disciplinary Actions
18.18.01 Disciplinary Action: Step 1
18.18.02 Disciplinary Action: Step 2
18.18.03 Disciplinary Action: Step 3
18.18.04 Disciplinary Action: Step 4
19.0 Termination of Contract
19.1 Dismissal
19.2 Termination for Cause
19.3 Resignation
20.0 Performance Management
20.1 Supervision (Support)
20.2 Performance Evaluation
20.2.01 Performance Evaluation Policy
20.2.02 Annual Work Plan
20.2.03 Mid-Year Performance Review
20.2.04 Annual Performance Review
20.3 Professional Development
21.0 Code of Ethics
21.1 Conflict of Interest
21.2 Accountability and Transparency
21.3 Confidentiality
21.4 Data Protection
21.4.01 Collection of Information
21.4.02 Use and Disclosure
21.4.03 Data Quality
21.4.04 Data Security and Retention
21.4.05 Openness
21.4.06 Access and Correction
21.5 IT Communication
21.5.01 When to Use Email
21.5.02 General Points on Email Use
21.5.03 Email Etiquette
21.5.05 Program Downloading
21.5.06 Backing Up, Data Transfer and Storage
21.5.07 Miscellaneous
21.6 Anti-Bullying
21.7 Whistle blowing policy*
22.0 Other work related policies, procedures & guidance
22.1 Child Protection Policy, procedure and guidelines
(see Child Protection booklet)
22.2 Human Rights & Equal Opportunities Policy*
22.2.01 Gender Guidance documant*
22.2.02 Child Rights Guidance document*
22.2.03 People with Disability Guidance Document*
22.3
22.4 Disasters & Emergencies*
22.4.01 Internal emergency Escalation Policy*
22.4.02 Disaster Contingency Plan*
22.4.03 Global warming policy*
22.5 Conflict Sensitivity; Definition
22.51 Conflict Sensitivity Policy
22.7
22.8Staff Training Policy*
22.8.01 External training opportunities in Sri Lanka & abroad*
22.9 Regular Review of All Policies and Procedures
23.0 Vehicle use & responsibility guidance
23.1 Vehicle checks, servicing & repair
23.2 Vehicle legal requirements; licensing etc
23.3 Documentation; mileage charts etc
23.4 Staff Safety; PCA vehicles, hired Vans, & Motorcycles/Scooters
C. FINANCIAL MANAGEMENT AND OPERATIONAL PROCEDURES
24.0 Financial Policy and Responsibility
25.0 Separation of Duties
26.0 Budget
24.1 Preparation of Budget
27.0 Monitoring and Review
27.1 Framework
27.2 Board Overview
27.3 District/Project level
27.4 Managing risk
27.5 Fraud Policy
28.0 Operational Procedures
28.1 Income Received
28.2 Expenditures
28.2.01 Revenue (Operating/Recurring Costs)
28.2.011 Payroll, Preparation and Timekeeping
28.2.012 Rent and Utilities and Office Supplies
28.2.013 Travel
28.2.014 Hospitality Expenses
28.2.015 Petty Cash
28.2.02 Procurement
28.2.03 Capital Expenditures
28.2.04 Cash Advance and Reimbursements
29.0 Financial Reporting and Audit
29.1 Monthly Reports
29.2 Year End Report/Audit
30.0 Grant Compliance
31.0 Assest Register
SECTION 3 – APPENDIX / 56
A MEMORANDUM OF ARTICLES
B. SAMPLE BOARD ROLES AND RESPONSIBILITIES AND MANAGEMENT JOB DESCRIPTIONS
Chair or Deputy/Vice Chair of the Governing Board
Treasurer of the Governing Board
Secretary of the Governing Board
Director
Assistant Director
Office
Finance Officer
Accountant
Program Coordinator
Office Assistant
C. SAMPLE PERSONNEL FORMS
Shortlisting Form
Interview Score Sheet
Reference Check Form
Induction Checklist
Monthly Timesheet
Leave Request Form
Management Supervision Form
Annual Performance Evaluation Form
Appointment (Offer) Letter
Contract of Employment
Accident or Injury Report Form
D. SAMPLE FINANCIAL MANAGEMENT FORMS
Cash In Hand Certificate
Budget Report
Acquittal Form
Cash/Cheque Payment Voucher Form
Receipt Voucher Form
Project Budget Template
PREFACE
HOW TO USE THE OD HANDBOOK
This Organisation Development (OD) Handbook was developed to strengthen the organisational structure of PCA.
This OD Handbook provides a template to assist in the organisational development.
The information in the textbox is an explanatory guide to the template that follows.
The template may be modifiedor adapted to meet the changing needs of the organisation.
The template includes all the basic components necessary to run a strong organisation together with items needed specifically for PCA in their work.
DEVELOPED BY
This OD Handbook was created and developed by Dave Williams (VSO volunteer) supported by key staff and Board Members at PCA. It is based on the work undertaken by Tu Van Trieu, Flordeliza Lopez, and Dorothy Ann Engmann with local NGOs on the Thai-Burma border in 2008.
SECTION 1:THE GOVERNING BOARD
A. TERMS OF REFERENCE
1.0Membership of the Governing Board
The number of governing persons will be laid down by the Organisation’s Constitution.
See Section 1.C: Articles of Association.
2.0Purpose
The primary function of the Governing Board is to ensure good governance of the Organisation, and the setting of strategic policy and direction.
The Governing Board has overall legal responsibility for the work and finances of the Organisation, the employment of the staff and recruitment of volunteers.
3.0Roles And Responsibilities
See Appendix B for suggested board roles and responsibilities.
3.1Overall Responsibility
The aim and responsibility of every member is to ensure that Peace and Community Action operates in a manner which enables it to fulfil the objectives given in the Articles of Association in as effective a manner as possible
3.2Main Duties
Every member should:
▪Ensure a regular review of the Development Plan against the implementation timetables and targets
▪Develop and review policies and procedures to guide the everyday work of the Organisation
▪Ensure that the Organisation develops appropriate systems to manage its work and resources, including finances, premises, staff and volunteers.
▪Ensure that the Organisation is meeting its legal responsibilities
▪Ensure that the Organisation is meeting the changing needs of current and potential users.
▪Determine the Organisation’s mission and purpose
▪Guard the Organisation’s ethos and values
▪Develop and agree the Organisation’s strategic plan
▪Ensure that all the Organisation’s activities come within its objects as defined by the Constitution
▪Ensure accountability as required by law and to others such as the wider membership, donors, beneficiaries, staff, volunteers.
▪Ensure the Organisation has adequate resources
▪Ensure the Organisation’ property, assets and other resources are protected and managed effectively
▪Agree the budget and monitor financial performances
▪Work in partnership with the Senior staff to lead the Organisation
▪Monitor the Organisation’s programme and activities by ensuring that regular written reports are made by staff and that full and proper records are kept
▪Participate in an annual review of the performance of the Governing Board
▪Take care in delegating powers to members of staff, subcommittees, honorary officers or other organisations, and ensure that anyone to whom power is delegated reports fully and regularly to the Governing Board
▪Establish procedures for recruitment, support, appraisal, remuneration of staff, and for dealing with disciplinary matters
▪Ensure that risk audits are regularly conducted and that strategies for handling risk are explored
In order to carry out these duties trustees must:
▪Meet as often as is necessary for the proper administration of the Organisation
▪Seek professional and other expert advice where necessary
4.0Frequency of Meetings
The Governing Board shall meet as often as determined by the Articles of Association.
5.0Structure
The meetings are chaired by the Chair or DeputyChair duly elected at the Annual General Meeting.
The meetings are serviced by the National Coordinator who is responsible for advising the Governing Board on matters pertinent to its work, and for implementing it decisions
The PCA National Coordinator is also a Director of PCA and therefore can also participate in Board decision making
6.0Reporting Procedure
The Minutes of each meeting are circulated to the wider membership. The Governing Board also reports to the wider membership at the Annual General Meeting.
7.0Quorum
The Quorum of any meeting of the Governing Board shall be set in the Articles of Association.
- BOARD RECRUITMENT
8.0Policy on Trustee Recruitment, Induction, Training and Support
The Governing Board is responsible for controlling the management and administration of this Organisation. Good governance begins with the proper recruitment, selection and induction of the members of that Board. The Governing Board can function effectively only when the individual members within it have the right skills and experience to contribute, have a genuine interest and commitment to the Organisation, and have been properly prepared for their role. Members should feel properly equipped, valued and supported by the Organisation in this role.
There are key principles which will help to ensure that those chosen to govern the Organisation are suitable, and are given proper preparation for their role and responsibilities. These are:
▪All members should receive ongoing training to meet any current or future needs relating to their role and responsibilities and the changing context in which the Organisation operates. Training should support members and enable them to develop their skills and competence.
▪The Governing Board should ensure that its performance and that of its individual members can be regularly evaluated and reviewed and that this is reflected in subsequent recruitment and induction procedures, and the development of future training and support mechanisms.
9.0Recruitment and Selection Procedures
Existing members should make sure that they retain overall responsibility and control of the recruitment, selection and induction process of new members. Whilst consultation with staff will be important in determining a full picture of the needs of the Organisation, it is the Governing Board’s role to oversee the effective management of an open and efficient recruitment process, whether in circumstances when members select new colleagues themselves, or where other arrangements such as election or nomination by a membership apply.
The Governing Board should carry out a structured audit of the existing skills of its members. This process should include consideration of what skills are required to perform effectively and whether there are any gaps in terms of current and future needs.
Whilst recruitment through personal recommendation and word of mouth can be an effective way of identifying the right people for the role, broader, more inclusive recruitment methods should also be used to encourage diversity. Where possible these methods should reach out beyond professional and social networks to help the Governing Board to find potential members who will help increase the diversity of the Governing Board in terms of members’ life experience, professional, social and cultural backgrounds.
All methods of recruitment should be open and transparent.
Members must be legally eligible and entitled to serve. Before appointing a member, the Governing Boardmust make sure that it is acting within the law and in accordance with the Articles of Association.
Potential memers who are considering joining the Governing Boardshould be familiar with and understand the Organisation’s purpose and aims.
Potential members must be asked about any interests they have outside the organisation that might conflict with the Organisation, and to consider potential conflicts that could arise which might prevent them from making a full and rounded contribution to discussions and decisions. These should be explored before any commitment is made on either side. Potential members must be able to demonstrate their commitment to managing the Organisation in the interests of the Organisation as a whole, and not in their own personal interests or those of a narrow interest group.
10.0Induction Procedures
This is an opportunity for new members to become fully inducted into their responsibilities for the Organisation and its resources. Proper induction should ensure that members are able to act in the best interests of the Organisation and are able to explain to future members what is required of them.
The induction process will be implemented by the Chair of the Board and the National Coorrdinatyor and should ensure that new members:
▪Have a clear understanding of the extent and parameters of their role and responsibilities.
▪Understand the relationship between the Governing Board, staff and volunteers.
▪Are able to assert their authority and address any challenges that the Organisation may face.
▪Are aware of the kind of circumstances when the Governing Boardmay need to seek specialist advice.
▪Are clear that personal affairs, interests or resources must be kept separate from the Organisation and be able to identify potential conflicts of interest if these do arise.
▪Feel part of a team and a united Governing Board.
▪Attend a General Induction Session into the Organisation to learn about individual activities, staff and the induction process itself.
▪Feel part of the Organisation as a whole.
C. Articles of Association (GOVERNING DOCUMENT)
11.0See Appendix A for PCA’s Articles of Association.
SECTION 2: MANAGEMENT
- MANAGEMENT OVERVIEW
12.0Organisational Chart
The following is a *sample organization chart.
13.0Governance and Management: Division of Responsibility
Governance and management have different roles but they need to work together in partnership. The Governing Board is responsible for strategic planning, policy making, and monitoring the efficiency and effectiveness of the organisation overall. The Senior Staff support the Board in completing these duties. Operational matters are usually delegated to the staff.
13.1 Governance Responsibilities
Governing Board responsibilities include:
▪Agreeing policies and procedures
▪Setting long term aims (strategic planning)
▪Having the final say when setting annual objectives
▪Ensuring the Organisation’s Mission is adhered to
▪Oversight of finali budgets & allocation of funds
▪Approving any major purchases or additions outside the budget
▪Oversight of financial records (Internal Audit)
▪Ensuring programmes, services & products are evaluated and lessons learned by the organisation are put into practice
▪Appointing new members to the governing board
▪Ensuring regular attendance at Board Meetings.
▪Evaluating members of the governing board and their performance
▪Employing the two most senior members of staff (ie Director/ National Cooordinator & Assistant), setting his/her salary & evaluating his/her performance
▪Taking ultimate responsibility for all legal matters & regulatory compliance matters
▪Appointing external auditors and approving audited accounts
▪Managing sub-committees (Finance Sub-Committee)
▪Building & maintaining the organisation’s public image
13.2 Management (the staff) Responsibilities
Managers’ responsibilities include:
▪Providing information to the governing board, including recommendations for action
▪Supporting the governing board’s planning function
▪Implementing governing board decisions, including the implementation of policies through appropriate procedures
▪Determining community needs
▪Operating programs and reporting on their successes & shortcomings
▪Evaluating staff and project performance
▪Organising events, fundraising including proposal writing etc when approved by the governing board
▪Managing staff & volunteers
▪Conducting day to day financial operations
▪Managing & monitoring daily operations
13.3 Joint Responsibilities
Joint responsibilities include:
▪Drafting and approving appropriate policies and procedures
▪Discussing ideas and forming long term aims
▪Planning organisational strategies
▪Designing programs to achieve the organisation’s Mission
▪Proposing fundraising ideas
▪Implementing risk management programs
▪Ensuring that achievements are recognised and documented
▪Promoting the organisation
▪Working collaboratively in the identification and recruitment of Board Members
14.0Board Roles and Responsibilities and Management Job Descriptions
See Appendix B for sample board roles and responsibilities and managementjob descriptions.
B. PERSONNEL POLICIES AND PROCEDURES
The personnel procedures will cover the following areas:
▪Recruitment and Selection
▪Contract of Employment
▪Performance Management
▪Code of Ethics
15.0Recruitment and Selection
Peace and Community Action is committed to providing a recruitment, selection and hiring process that is fair and consistent. The process is designed to identify the needs of each vacant position and assist in locating the best qualified applicant for the position.
The purpose of these guidelines is to ensure that a standard approach that is fair and effective is used for recruitment and selection of all vacant positions at the Organisation.
Recruitment and selection procedures and decisions will reflect PCA’s commitment to equal opportunity by assessing all potential candidates according to their skills, knowledge, qualifications and capabilities.
To be eligible for employment with the Organisation, applicants should meet or closely satisfy the stated requirements indicated in the person specification.
15.1Responsibilities for recruitment & selection
15.1.01 Director Responsibilities
It is the responsibility of the Director and direct supervisors/managers to:
▪Be familiar with the recruitment policies and procedures and to follow them accordingly.
▪Ensure that project staffing needs are correctly determined and authorised.
▪Ensure that all positions have current detailed job descriptions with skills required for position. If no comparable job position is available, then develop a job description for the position
▪Make sure that recruitment and selection policy and procedures are developed and maintained.
▪Make sure all managers are aware of their responsibilities in the recruitment and selection process, including all the forms that must be completed