The Governing Body

Peace and Community Action

ORGANISATIONAL DEVELOPMENT HANDBOOK

By Dave Williams

Adviser – Peace and Community Action

(Voluntary Services Overseas)

updated – July 2011
TABLE OF CONTENTS

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.

1. 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

1. 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