Welcome To Attending The Session

1. Welcome To Attending The Session

2. Group Member’s are, Kazi Mohidul Islam ID NO: 10310059 Md. Mahedi Hasan ID NO: 10310058 Md. Quiyumur Rahman Sajib ID NO: 10310430 Mu. Juel Sikdar ID NO: 10310163 Sonnet Bhowmik ID NO:10310165 Clamet Chandon Roy ID NO: 10310033

3. Term Paper On Palli Karma Sahayak Foundation(PKSF)

4. Table of Contents No:ParticularsPage No: 01. Executive Summary 01 02. Introduction 02 03. Historical Background 03 04. Mission, Funding, Business Strategy and Main Business of PKSF 04 05. Training, On Site Technical Assistance, Major Objectives of PKSF 05 06. Programs and Projects of PKSF, Business Communication with Po’s 06 07. Organizational Communication 07 08. Formal Communication 08 09. Vertical Communication 10 10. Organogram 11 11. Management 12 12. Internal Communication 13 13. External Communication 14 14. Loan Disbursement Status 15 15. Some Lessons from PKSF 16 16. Recommendation 17 17. Conclusion 18

5. 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.

6. 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 are- Limitations 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.

7. 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.

8. 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.

9. 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

10. 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

11. 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.

12. 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.

13. PROGRAMS AND PROJECTS OF PKSF PKSFmaintain 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

14. 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

15. Organizational Table

16. 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.

17. Governance PKSF comprises of two constitutional bodies as per Article of Association: the General Body and the Governing Body.

18. 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.

19. 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.

20. Here is the PKSF Downward Vertical Communication chart:

21. Organogram Organgram of Head Office Board of Directors Chart

22. 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.

23. 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.

24. 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.

25. 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.

26. Recommendation • 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.

27. 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.

28. Thank You For Attending The Session