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Institute of micro-finance and cooperative development.

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CEOs need to set Example

On 13th of December 2021, the Centre for Self-help Development (CSD) put forward its 17th episode of webinar entitling "Human Resource Development and Management in Microfinance Institutions: Problems and Way Forward". Mr. Uday Raj Khatiwada, CEO of the Swabalamban Laghubitta Bittiya Sanstha Ltd and Mr. Sanjay Kumar Manadal, CEO of the Jeevan Bikas Laghubitta Bittiya Sanstha Ltd. were featured as panelists and Mr. Ram Chandra Joshi, Chairman of the Neighborhood Society Service Centre moderated the program. Mr. Shankar Man Shrestha, Chairman of CSD chaired the program. The program was attained by 146 representatives from various MFIs and Cooperatives.

Mr. Bechan Giri, Executive Chief of CSD welcoming the panelists and moderators and all the participants, as well highlighted on the importance of the program.

Speaking from the chair, Mr. Shankar Man Shrestha, the Chairman of CSD,  reminisced how it was a herculean task to build the capable human resource in this sector, when he along with late Mr. Harihar Dev Pant, initiated microfinance nearly 3 decades ago. He further added that how a strong will power and determination as well personal commitments coupled with few assiduous staff that were refined through various training and following a well-disciplined Grameen culture help lay the foundation for successful replication of Grameen Model in Nepal. Their tireless effort brought more success in this poor focused program and after the involvement of commercial banks in this sector, it grew to the industry that we all know today.

However, despite a good salary and fringe of the employees, the microfinance sector at present has failed to alleviate poverty. The problem is that the available human resources are not mobilized and managed properly by CEOs. Now the microfinance service is deviating from its motto as the employees have become self-centered and the microfinance culture seems to be disappearing. Lastly, Mr. Shankar Man Shrestha opined that the responsibility of the CEO to set an example for others to follow. He also said that the loans should cater the targeted group and when they will start to progress microfinance institution will benefit automatically. Increased salary can motivate a person only for few months, so the main thing is to have a close relationship of the CEO with the employee. Similarly, the relationship had to be between field staff and customer members. CEOs have not been able to manage their staff properly and use the extra time they have. Due to which the employees have not been able to work as per their capacity. Therefore, it is important for the CEO to mobilize staff, solve problems in a timely manner, go to the field level to understand the situation as much as possible and convince the board to work according to the spirit of microfinance. In addition, the success of the organization lies in the CEO's manners, behavior, thinking, character, activism, etc. which play a role in tackling the big problems like poverty, carbon emissions and unemployment.

Moderator of the webinar, Mr. Ram Chandra Joshi, Chairman of the Neighbor Service Society Center, said that CEOs need to be familiar with the problems of the employees. There is no problem of manpower mobilization and management in a microfinance institution who's CEOs started his journey of microfinance from the field level. Therefore, it is important to get information about the staff as well as the member by visiting the field regularly. The details of the employee should be kept properly and the shortcomings of an employee should also be pointed out.

The Chief Executive Officer of the Swabalambam Laghubitta Bittiya Sanstha Ltd, Mr. Uday Raj Khatiwada, one of the panelists of the webinar stressed on the need to make the employees emotionally responsible towards the institution. The manpower is skilled and trained, but they do not seem to have implemented their capacities at 100 percent. For this, we must take measures to keep the employees emotionally positive towards the organization and the work of the organization. At the same time, microfinance is a service-oriented activity and we should be able to make the poor women feel proud that their living standards have risen. The organization should earn profit by serving the poor. It should be well defined that everyone will prosper in it. He further added that regular transfer, promotion and encouragement will enhance to fulfill the goals and objectives of the organization.

Another panelist of the webinar, Mr. Sanjay Kumar Mandal, the Chief Executive Officer of the Jeevan Bikas Laghubitta Bittiya Sanstha Ltd, expressed his view that microfinance should work for the wellbeing of the institution, its employees and the target group. We need to understand that we are here to solve problems, not to create problems in management. For this, it is important to explain to the employees that if the organization is good, then we all are good. Responsibility, accountability and authority are important in management. Employees also need to be held accountable. It should be understood from bottom to top and one must be able to explain. Staff audit is also necessary.

Experts also pointed out that these days the essence, spirit and principles of microfinance is lacking among microfinance workers. There is general tendency to take their jobs as the Banking Institutions and the Chief Executive Officers need to be exemplary to address this.

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