Table of Contents

1. INTRODUCTION ................................................................................................................. 1
2. OBJECTIVES ........................................................................................................................ 2
3. METHODOLOGY ................................................................................................................ 3
4. LIMITATIONS OF THE STUDY......................................................................................... 3
5. 7-S- model .............................................................................................................................. 4
5.1. The Hard S‟s ................................................................................................................... 4
5.2. The Soft S‟s..................................................................................................................... 5
6. Introduction to APMAS ......................................................................................................... 6
6.1. Organization‟s Profile ..................................................................................................... 7
6.2. History............................................................................................................................. 7
6.3. Area of Operation ........................................................................................................... 7
6.3.1. APMAS: Andhra Pradesh ........................................................................................ 8
6.3.2. APMAS: Across India ............................................................................................. 9
6.3.3. The Urban Operations of APMAS ........................................................................... 9
7. SHARED VISION ............................................................................................................... 10
7.1. Vision: ........................................................................................................................... 10
7.2. Mission:......................................................................................................................... 10
7.3. Core Values:.................................................................................................................. 11
8. STRUCTURE ...................................................................................................................... 11
9. LIFE CYCLE of APMAS .................................................................................................... 13
10.1. The Operating Core..................................................................................................... 15
10.2. The Middle Line ......................................................................................................... 16
10.3. The Strategic Apex ..................................................................................................... 16
10.4. The Techno-structure .................................................................................................. 16
10.5. The Support Staff ........................................................................................................ 17
10.5.1. Administration and Account ................................................................................ 17
10.5.2. Programme Support and Research Documentation Group .................................. 17
10.5.3. Library.................................................................................................................. 17
11. Structural Dimensions ........................................................................................................ 18
11.1. Complexity.................................................................................................................. 18
11.2. Formalisation .............................................................................................................. 18

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 11.3. Centralisation .............................................................................................................. 19
11.4. Professionalism ........................................................................................................... 19
11.5. Coordination ............................................................................................................... 19
12. SYSTEMS.......................................................................................................................... 20
12.1. Environment ................................................................................................................ 20
12.2. Communication and resource system ......................................................................... 21
12.3. Consultative forum...................................................................................................... 22
12.3.1. Members of the Forum......................................................................................... 23
12.3.2. Procedure for Policy Change ............................................................................... 23
12.3.3. Recommendations for APMAS from the Forum ................................................. 23
13. STRATEGY....................................................................................................................... 24
13.1. Key Areas of Support.................................................................................................. 24
13.2. Strategic Thrust Areas................................................................................................. 24
13.3. Major Thrust Areas: .................................................................................................... 25
13.3.1. Consolidation of support to the SHG movement in Andhra Pradesh .................. 25
13.3.2. Expansion to Select States ................................................................................... 25
13.3.3. Facilitation of self-organized supervision of SHG federations............................ 26
13.3.4. Facilitation of SHG federations as sustainable financial institutions .................. 26
13.3.5. Strategic partnership with NABARD & Government of India ............................ 26
13.4. Porter‟s Competitive Strategies .................................................................................. 27
14. STYLE ............................................................................................................................... 28
14.1. Management Style ...................................................................................................... 29
14.2. Rules and Customs...................................................................................................... 29
14.3. Social Behaviour ......................................................................................................... 29
14.4. Attitude to work .......................................................................................................... 30
15. SKILL ................................................................................................................................ 31
15.1. Capacity building ........................................................................................................ 31
15.2. Quality assessment (QA) ............................................................................................ 31
15.3. Livelihood promotion ................................................................................................. 32
15.4. Research and Advocacy .............................................................................................. 32
16. STAFF/HUMAN RESOURCE ......................................................................................... 33
16.1. Affiliate System .......................................................................................................... 33
16.2. Staff Recruitment Process ........................................................................................... 34

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 16.3. Human Resource System ............................................................................................ 34
16.4. APMAS Services for Staff Well Being ...................................................................... 34
16.5. Senior Staff Perks ....................................................................................................... 35
16.6. Compensation and benefits ......................................................................................... 35
16.7. Training and Development ......................................................................................... 35
16.8. Group processes .......................................................................................................... 36
16.9. Inter group relations .................................................................................................... 37
16.10. Appraisal system ....................................................................................................... 37
16.11. Use of Performance Appraisal .................................................................................. 38
16.11. Employee Turnover .................................................................................................. 39
16.12. Termination/Resignation........................................................................................... 40
17. PERFORMANCE: ............................................................................................................. 40
17.1. Other Major achievements of APMAS for the year 2007-2008 ................................. 41
17.1.1. The National Network of Resource Organizations (NNRO) ............................... 41
17.1.2. SHG Federations in India - A Status Report........................................................ 41
17.1.3. National Conference on SHG Federations ........................................................... 41
17.1.4. Expanding Initiatives to Bihar ............................................................................. 42
17.1.5. Sector Owned Control (SOC) / SNU ................................................................... 42
17.1.6. Promotion of SHG Federations in Urban Areas: ................................................. 42
17.1.7. Raks Thai Foundation .......................................................................................... 43
17.2. Major Donors .............................................................................................................. 43
18. References .......................................................................................................................... 44

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 List of Abbreviations

APMAS Andhra Pradesh Mahila Abhivruddhi Society

AGM Annual General Meeting

APUSP Andhra Pradesh Urban Services for the Poor Project

BC Business Correspondents

CBO Community-Based Organisation

CBs Commercial Banks

DFID Department for International Development

DHAN Development of Humane Action

HUL Hindustan Uniliver Limited

IKP Indira Kranthi Patham (earlier it is called Velugu Project)

JBY Janasree Bima Yojna

MACTS Mutually Aided Cooperative Thrift Society

MEPMA Mission for Elimination of Poverty In Municipal Areas

MFI Micro Finance Institution

NABARD National Bank for Agriculture and Rural Development

RBI Reserve Bank of India

SHG Self Help Groups

SLF Slum Level Federation

SDTT Sir Dorabji Tata Trust

TFI Total Financial Inclusion

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 List of Figures

Figure 1: 7-S- Model Framework .............................................................................................. 4

Figure 2: Areas of Operation of APMAS .................................................................................. 8

Figure 3: Areas of Operation of APMAS in Andhra Pradesh ................................................... 9

Figure 4: Organogram of APMAS ........................................................................................... 12

Figure 5: Life Cycle of APMAS .............................................................................................. 13

Figure 6: Mintzberg Model of APMAS ................................................................................... 15

Figure 7: Core System of APMAS .......................................................................................... 20

Figure 8: Environment of APMAS .......................................................................................... 21

Figure 9: Attrition Rate at various levels ................................................................................. 39

Figure 10: Reasons for Attrition .............................................................................................. 39

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 List of Annexure

Annexure 1: Members of the Governing Board ......................................................................... i

Annexure 2: Partners..................................................................................................................ii

Annexure 3: Financial Statements ........................................................................................... iii

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1. INTRODUCTION

“APMAS has given us reasons to save and........smile!”

- Lakshmidevi, Member of the SHG group

in the Bethovelu mosque slum area of
Gudivada who saved from the income
earned from weaving flowers.

The people behind these smiles are the dedicated pool of APMAS employees who have been
working continuously to improve the living conditions of these SHG members. As part of our
field visits we went to the greater mosque slum area in Guntakal town and met the SHG
members who run their own flower weaving shop and all the members of the group together
weaved the flowers to be sold in the nearby market. There were many such examples which
exhibited the self reliance of the poor women in the area and most of them were engaged in
some kind of income generating activity. They saved into the SHGs and took small loans
from the SHG. All credit goes to the APMAS field workers who organised the members and
brought a sense of discipline in them in terms of regularity of meetings apart from the
sustainability issues. The summer intern at APMAS provided us with an opportunity to
understand the organisation and the people involved with it to bring happiness to the lives of

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millions of women across country. APMAS is a national level resource organization that is
committed to enhance quality and the sustainability of the Self-Help movement in India.
Registered in 2001 as a non-governmental public society, APMAS is recognized nationally
and internationally as a credible and pioneering support organization in the field of SHG
Promotion. APMAS aims to meet the managerial and technical support needs of various
stakeholders involved in the promotion of SHGs and SHG federations. APMAS is a
professionally functioning and managed organization with devoted governing board and
dedicated staff. The Board of APMAS consists of 21 representatives from government,
NGOs, financial institutions, banks, academic institutions, SHG federations and eminent
individuals. APMAS has very high quality human resources comparable to the best in the
sector. APMAS strongly believes in collaborations and partnership in achieving the vision
and mission.

2. OBJECTIVES

The objectives of our study are as follows:

 To understand APMAS as an organization with respect to its purpose, structure,
culture, environment and strategies against the backdrop of classroom learning.
 To understand the external environment in which the organization operates such as,
the government regulations, clients, competition etc. - Understanding the external
environment was one of the chief objectives for us because not only is the external
environment very diverse, but it also has a telling effect on the way APMAS
functions.
 To understand performance parameters and impact of APMAS‟s work.
 To examine the internal coordination mechanisms within the organization‟s functions,
teams and various locations - Analyzing the working and functioning of the
organization was an indispensable part of our study. This gave us an insight into the
coordination mechanisms between the various teams and the various processes.
 To study the culture and its influence on the way the business is conducted within the
organization – APMAS culture is distinct in a number of ways due to its direct
interactions with the target rural population and also due to the various internal and
external limitations it faces. An insight into the organization‟s culture is mandatory to
understand its functioning.

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  To gather the various perceptions of the key role players in the organization – these
role players may be stakeholders, the clients and the employees. Their perceptions are
valuable in understanding the various roles the organization plays in their lives.

3. METHODOLOGY

Both primary and secondary sources of data were used for the study. The primary sources
include semi structured interviews and informal discussions. Semi structured interviews were
conducted with the CEO, employees and the field staffs. Informal discussions with the
support staff helped us immensely. We also got an opportunity to attend some of the training
programmes organized by APMAS. Through this we were also able to interact with some of
the APMAS trainers and field volunteers.
Primary sources of data
 Discussions
 Unobtrusive observations
 Semi-Structured interviews
Secondary sources of data
 Field visits
 Annual Reports
 Process And Policy Manuals
 Internal circulars
 Published Reports
 Internet

4. LIMITATIONS OF THE STUDY

 Paucity of time: our stay in the organisation was of 50 days only and in that period we
were also in the field for our organisational action component.
 Language barrier: although most of the staff was comfortable with English, still at
many instances inability to communicate in Telugu was a major constraint.
 Restricted reach: our access to employees was very much restricted as interaction with
every employee did not happen due to their field visits and busy schedule.

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5. 7-S- model

To achieve the above mentioned objectives we needed a holistic approach to extract and inter
relate information that we could gather from the organization through various sources. The 7-
S-model gives a complete picture of how the factors are affecting the core values of the
organization both in the preferred as well as in the adverse manner. The 7-S-Model is better
known as McKinsey 7-S. Two persons who developed this model were Tom Peters and
Robert Waterman, were consultants at McKinsey & Co. They published their 7-S-Model in
their article “Structure Is Not Organization” (1980) and in their books “The Art of Japanese
Management” (1981) and “In Search of Excellence” (1982). The model starts on the premise
that an organization is not just Structure, but consists of
Figure 1: 7-S- Model Framework
seven elements. Those seven elements are
distinguished in so called hard S‟s and soft S‟s.

The three hard elements or hard S‟s are feasible and

easy to identify. They can be found in strategy
statements, corporate plans, organizational charts and
other documents.

The four soft S‟s however, are hardly feasible. They

are difficult to describe since capabilities, values and
elements of corporate culture are continuously developing and changing. They are highly
determined by the people at work in the organization. Therefore it is much more difficult to
plan or to influence the characteristics of the soft elements. Although the soft factors are
below the surface, they can have a great impact of the hard Structures, Strategies and Systems
of the organization.

5.1. The Hard S’s

Strategy: Actions that a organization plans in response to or anticipation of changes in its

external environment.

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Structure: Probably the most important aspect to understand the organization as it gives an
overall picture of what are the basis for specialization and co-ordination that are influenced
primarily by strategy and by organization size and diversity.

Systems: Formal and informal procedures that support the strategy and structure. At the
current scenario having good systems increases efficiency and credibility of the organization

5.2. The Soft S’s

Style / Culture: Style or culture of the organization can be defined as the way in which the
organization is operating not in terms production and delivery of outputs but the type of
distinctive way the organization has which gives it the competitive advantage. It can be
divided into 2 types:

 Organizational Culture: the dominant values and beliefs, and norms, which develop
over time and become relatively enduring features of organizational life.
 Management Style: more a matter of what managers do than what they say; how do a
organization‟s managers spend their time? What are they focusing attention on?
Symbolism – the creation and maintenance (or sometimes deconstruction) of meaning
is a fundamental responsibility of managers.

Staff: The people or the human resource management in the organization. It deals with the
processes that are used to develop managers, their socialization processes, their ways of
shaping basic values of management cadre, introduction of the new recruits to the
organization and ways of helping to manage the careers of employees

Skills: The distinctive competences of the organization in terms of what it does best, ways of
expanding and shifting competences to meet the challenges of the market.

Shared Values: Guiding concepts or fundamental ideas around which a business is built –
must be simple, usually stated at abstract level, have great meaning inside the organization
even though outsiders may not see or understand them.

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Effective organizations achieve a fit between these seven elements. This criterion is the origin
of the other name of the model: Diagnostic Model for Organizational Effectiveness. If one
element changes, it will affect all the others. For example, a change in HR-systems like
internal career plans and management training will have an impact on organizational culture
(management style) and thus will affect structures, processes, and finally characteristic
competences of the organization. In change processes, many organizations focus their efforts
on the hard S‟s, Strategy, Structure and Systems. They care less for the soft S‟s, Skills, Staff,
Style and Shared Values. The soft factors can make or break a successful change process,
since new structures and strategies are difficult to build upon inappropriate cultures and
values. These problems often come up in the dissatisfying results of spectacular mega-
mergers. The lack of success and synergies in such mergers is often based in a clash of
completely different cultures, values, and styles, which make it difficult to establish effective
common systems and structures.

The 7-S Model is a valuable tool to initiate change processes and to give them direction. A
helpful application is to determine the current state of each element and to compare this with
the ideal state. Based on this it is possible to develop action plans to achieve the intended
objectives.

6. Introduction to APMAS

Andhra Pradesh Mahila Abhivruddhi Society (APMAS) was formed in 2001 in Hyderabad to
strengthen the SHG movement. Since inception, it has been actively supported by the
Government, Banks, NGOs and Community Based Organizations. It is registered as a non-
governmental public society and stands under the Foreign Contribution Regulation Act, 1976.
This is the 9th year of successful operation of APMAS. It is a professionally functioning and
managed organization with devoted governing board. The Board has a total strength of 21
members representing the Government, Financial Institutions, NGOs and SHG federations. It
aims to meet the managerial and technical support needs of various stakeholders involved in
the promotion of SHGs and SHG federations. APMAS has about 55 full time employees in
Andhra Pradesh and about 25 of them are based in head quarters in Hyderabad and at least 2
field officers in the other areas where it is operating in Andhra Pradesh.

6
6.1. Organization’s Profile

Name Andhra Pradesh Mahila Abhivruddhi Society (APMAS)

Head Quarter Plot 20, Rao & Raju Colony, Road 2, Banjara Hills,Hyderabad – 500034
Telephone & Fax Tel: 040-23547926 / 27
Fax: 040-23547926

Email info@apmas.org

Website www.apmas.org, www.shggateway.in

6.2. History

In March of 1999, the Government of Andhra Pradesh (GoAP), approached NABARD,

BASIX, CARE, and Vikasa Darshini to seek their inputs to design a Rs. 1000 crores
women‟s bank, owned by the GoAP, or a separate body to provide capacity building and
credit for SHGs in Andhra Pradesh. After several consultations, the Advisory group,
comprising of stakeholders in the microfinance sector submitted a concept paper proposing
the establishment of an Andhra Pradesh Mahila Mutually Aided Cooperative Society
(APMACS). The concept paper envisaged that APMACS would be a membership body of
the cluster federations and act as a specialized credit and capacity building organization for
its members. The final outcome, based on consultations and field studies, resulted in a shift
from the concept of APMACS to APMAS.

6.3. Area of Operation

APMAS works for poverty reduction by supporting the SHG movement through quality
assessment (rating), capacity building, livelihood promotion and research & advocacy.
Providing services to SHGs & SHG federations, self-help promoting institutions, government
agencies and civil society organizations, APMAS is a support institution aiming to meet the
needs of various stakeholders who are involved in the promotion of member owned and
member managed microfinance institutions.

7
6.3.1. APMAS: Andhra Pradesh

APMAS has its head office in Hyderabad and three regional offices are located in the districts
of Anantapur, Chittoor and Nizamabad . In addition, two DLRC offices have been established
in Adilabad & Kadapa districts. Within Andhra Pradesh, APMAS works in 8 districts
(Anantapur, Chittoor, Nizamabad, Adilabad, Kadapa, Kurnool, Mahaboobnagar, Ranga
Reddy) and 3 towns (Guntakal, LB Nagar, Gudiwada). In the remaining districts of Andhra
Pradesh, APMAS provides need-based and demand based services.

Figure 2: Areas of Operation of APMAS

8
6.3.2. APMAS: Across India

Though its initial focus was on strengthening the SHG movement in Andhra Pradesh,
APMAS now works to support the SHG movement in various States across India. Drawing
inspiration from the commendable contribution it has made in strengthening the SHG
movement, several APMAS-type institutions are now being created to support SHGs across
India. The State Governments of Madhya Pradesh, Rajasthan, Orissa, West Bengal and
Maharashtra are working along with donors and NGOs to promote SHG support institutions
with assistance from APMAS. It is also having its operations in Gujarat, Karnataka, Bihar,
Assam, Jharkhand, Uttarkhand, Chhattisgarh and many other Indian States.

6.3.3. The Urban Operations of APMAS

APMAS has taken initiatives to Figure 3: Areas of Operation of APMAS in Andhra
Pradesh
strengthen the SHG urban movement in
the 3 towns of Guntakal, Gudivada and
LB Nagar with the help of Mission for
Elimination of Poverty in Municipal
Areas (MEPMA)1 which is a
government venture to implement
various schemes through the help of the
institutions like APMAS. A total of 2741
SHGs are functioning with good
practices within the 3 towns and 1,584
SHGs are linked with banks for financial
assistance. These numbers are continually increasing as more and more SHGs are forming
seeing the success story of the existing SHGs. To address the common needs of the SHGs
and ensure their long term sustainability, a total of 106 slum level federations (SLFs) have
also been formed. All the SLFs are registered under the Mutually Aided Credit & Thrift
Societies acts (MACTS). In addition, a town level federation (TLF) in each of the towns have
also been established to deal with larger issues unable to be met by the SHGs or the SLFs.
APMAS, in collaboration with LIC under Javari Baima Yojana (JBY) has implemented an
insurance program for SHG members in these three towns. A total of 9,731 SHG members

1
MEPMA, Mission for Elimination of Poverty in Municipal Areas, is an organization set up by the Government
of AP in 2007 for poverty alleviation in urban areas which is working in collaboration with APMAS to
strengthen the SHG movement in the urban slums.

9
and their spouses are covered under this insurance scheme which seeks to provide financial
assistance to the insured member‟s family at the time of her death. In addition, A Risk
Management Fund (RMF) has also been set up by the slum level federations. Out of Rs.100
contributed by each SHG member, Rs. 90 is paid out for the LIC insurance premium and Rs
10 is diverted towards the RMF fund. The RMF fund provides Rs.2,000 to the insured
member‟s family at the time of her death as a relief to meet funeral expenses and as
protection against financial risk and later recovers this amount when the member gets the
insurance claim. Other successful programmes that APMAS has implemented are “Food
Security Program”2 and “Pavla Vaddi”3 (1/4th interest) scheme. Community based sanitation
programs which raise awareness and educate members on better hygiene practices and the
availability of family counselling centres have also been created for members. SLFs also help
members to deal with various gender based issues and provide care the well being of orphans.

7. SHARED VISION

During the last 8 years, APMAS has grown into an organisation providing effective technical
and managerial support to SHGs, their federations and other major stakeholders in the self-
help movement within Andhra Pradesh and across India. In promoting the long term
sustainability of the SHG movement, APMAS through its vision, mission and major thrust
areas strives to ensure that continuous support is provided to existing SHGs and their
federations so that, members achieve a better quality of life both, economically and socially.
In addition, APMAS intensively works to reach underserved areas of the country so that more
women may benefit from this phenomenal movement.

7.1. Vision:
A sustainable Women Self Help Movement in India

7.2. Mission:
 To enable SHPIs to provide quality services to strong and vibrant SHGs and SHG
Federations.

2
FSS-The food security scheme is being implemented by the SLFs in the urban centers wherein the members
get the food grains at discounted price from the SLFs.
3
Pavla vaddi is a government scheme wherein the state government provides interest subsidy to the SHGs
having linkages to the banks.

10
  APMAS also believes in the self-reliance of CBOs engaged in microfinance and
livelihood promotion. Strives for excellence in whatever it does and promotes the
empowerment of women.
 APMAS will emerge as a national-level support institution by influencing appropriate
policy and effective supervision of federations

7.3. Core Values:

• Concern for quality

• Continuous learning
• Promoting self-reliance
• Integrity and honesty
• Openness
• Shared responsibility

Core values allow APMAS to provide the necessary framework to strive for excellence and
deliver high quality services. They are guiding principles for the staff to achieve the shared
vision of APMAS. The core values of APMAS are also incorporated into the mission
statement of APMAS. These values have descriptive indicators and are communicated to the
staff on a regular basis.

8. STRUCTURE

The way an organization is structured depends on its type and size. The „Structure‟ impacts
the individual in terms of where they commute to; their department, job, and workplace; and
to whom they report. The organization is also part of an environment of other groups,
agencies, partners and donors etc. which we collectively call the external infrastructure. The
organogram of APMAS is as follows:

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Figure 4: Organogram of APMAS

AVP-Associate Vice President, RM-Regional Manager, FTC-Full Time Consultant, RO-

Research Officer, RA-Research Associate, CO-Communication Manager, Sys.Admin.-
System Administrator, QAO-Quality Assessment Officer, CBC-Capacity Building
Coordinator, CBO-Capacity Building Officer, CBA-Capacity Building Associate,
LMLivelihoods Manager, LO-Livelihoods Officer, RM-Regional Manager, Exe.Sec-
Executive Secretary, AFM-Assistant Finance Manager, AO-Administrative Officer, AA-
Accounts Assistant, Recp.-Receptionist, OA-Office Assistant.

We can see that the CEO is the coordinating body between the Board of Directors and the
functional team of APMAS. This is a very typical situation where the decision making is
centralised and the span of control of the CEO is very wide where as when it comes to the
span of control of the AVPs and RMs it‟s quite low comparatively.

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9. LIFE CYCLE of APMAS

Figure 5: Life Cycle of APMAS

APMAS has completed 8 years of operation and is a comparatively middle aged organization
keeping in view that the promotion of SHGs extensively arrived in the 90‟s and then came the
micro financing concept. This gave rise to the need of organizations like APMAS which
could provide expertise in the form of technical and managerial support. There are not many
such organizations in this field and this organization has established its roots well and firm in
the entire system. This can be seen clearly as more and more states are partnering with
APMAS for the joint ventures which lead towards the common goal of eliminating the
phenomenon of poverty.

If we see the evolution of APMAS in the past 8 years we can see that in the entrepreneurship
stage when APMAS had just started, it had to offer only a few services. It being one of the
first in the field of service providing there was a lot of creativity and innovation. For example
the rating system, the capacity building modules, etc. were developed during this period.

13
This growth leads to a leadership crisis as there were diverse activities and fewer leaders to
manage. In the collectivity stage, the appointment of executives at various levels was done
and each was provided with certain amount of decision making power. The direction that
these executives or managers gave resulted in further growth of APMAS and each of the
activity started performing at its maximum efficiency. But sometimes there were conflict of
opinions and also conflicts of decisions in order to ensure profitability for the department
alone and not of APMAS as a whole. This lead to a crisis of autonomy and hence it was
decided to centralize the decision making process such that all the decisions are made
keeping in view the overall benefit of the organization. Te executives were delegated the
work and a minimum level of autonomy was given as the professionals who work here with
industrial expertise would not like being tamed and powerless. This delegation of work
efficiently increased the organisation further and it got into various ventures where the
environment played an important factor which disabled it from controlling the situation. To
overcome this control problem it joined hands with various government and non government
organizations under the expansion plan through collaboration. This is the phase where
APMAS is currently placed. The joint ventures are proving to be success stories. But very
soon this would lead it towards a crisis for staff as the bigger the organisation is getting the
more difficult it is getting for them to handle operations with the existing staff. Moreover,
attrition rate is also a prime concern in this organization. The stage where APMAS is now is
also known as formalization stage.

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10. Mintzberg Model:

Figure 6: Mintzberg Model of APMAS

10.1. The Operating Core

The operating core comprises those employees who perform the basic work related to the
delivery of product and services. In the case of APMAS the Regional Teams who works in
the different regions under different heads such as capacity building and livelihood promotion
are termed as operating core. Apart from these regional teams there are some teams who
perform services related Quality assessment and Research Advocacy in the head office itself.
These teams are responsible for the effective implementation of the support services
approved by the Board of Governors and also the coordination with the operating core of the
partnering agencies such as Society for Elimination of Rural Poor (SERP)and MEPMA.

Each regional team is comprised of the regional manager, one capacity building officer
(CBO) and one capacity building co-ordinator (CBC) apart from some interns from different
institutions. The regional manager is responsible for coordinating with the CBOs and CBC
and assisting them in service delivery. Besides, he also looks after the training at the the
training centre. Apart from such training centres, there are a couple of District Rural
Livelihood Resource Centre (DLRCs) and some Cluster Level Livelihood Resource Centre

15
supported by the organisation. Hence there are few livelihood officers who work under the
regional managers. Currently there are two DLRCs supported by APMAS - one at Cuddappa
and the other at Adilabad. The regional manager also works out the schedule for the whole
month along with the Town Project Officer and his team of Community Officers (CO) and
Community Development Workers (CDW). Trainings are mainly provided to the SHG
members (Nagardeepikas) and Community Resource Persons (CRP) about the financial
operations such as book keeping, dealing with the banks, form filling and also about different
government schemes, etc.

10.2. The Middle Line

Middle line comprises those managers, who connect the operating core to the strategic apex.
The Middle Line in the organisation consists of Associate Vice Presidents (AVPs) and
Managers. The managers and the AVPs remain in direct contact with the regional managers
who head the regional teams. These AVPs have certain level of autonomy and are experts
from the industry.

10.3. The Strategic Apex

The Strategic apex comprises of top-level managers, who are charged with the overall
responsibility of the organization. The Strategic Apex of the APMAS consists of the
Chairman, Board of Governors and the Chief Executive Officer. The CEO of APMAS is
responsible to the Board.

10.4. The Techno-structure

The Techno-structure is analyst who has the responsibilities for affecting certain forms of
standardization. The Techno-structure of this organization comprises the internal network of
computers which helps in quick sharing of information to all employees. Even employees of
regional teams have access to computers and they avail regular update on information and
happenings in the organisation as well as the in the sector. Such network and other technical
aspects are looked after by a full-time technical expert of the organisation who belongs to the
Information & Communications department. All accounts and administration related matters
are also assisted by the well maintained computer system.

16
10.5. The Support Staff

The Support staffs are people who fill the staff units, who provide indirect support services
for the organization. The Administration and Account, Library, etc. are support staffs who
help in the effective implementation of the work of the organization.

10.5.1. Administration and Account

The main responsibilities of the accounts department is preparation of payroll, maintenance
of bank and cash accounts, reconciliation of bank accounts, maintaining the financial records,
maintenance of regional teams‟ financial statement, providing financial inputs to the top
management for the planning of the projects, preparation of the financial accounts, etc. The
administration department look after the matters related to the employees, like leave,
attendance also, the maintenance of office, stores, etc. Recently they have hired one HR
manager who develops modules for appraisal, grievances, etc. The secretary of the CEO and
a few other staffs at the head office play an important role in providing and ensuring a
smooth flow of communications and activities .

10.5.2. Programme Support and Research Documentation Group

Also known as office assistants or drivers the Programme support group has six employees
each of whom is responsible for providing support services and coordinate different teams.
They provide services such as finance and administration, reception, logistics, stationary, etc.

10.5.3. Library
The organisation has a good collection of books and subscribe to most of the journals and
magazines. This provides a huge literature resource to the organisation staff and help in
enhancing their knowledge base which ultimately helps in better service delivery of the
organisation.

APMAS has a simple structure with support departments centralised at the head office of
Hyderabad. The organisation also has characteristics of Matrix structure. Such a structure is
shown by the presence of multiple reporting of the employees especially the regional teams.
For example, the teams may need to report to the Research and Advocacy team as well as the
Livelihood team and QE team simultaneously.

17
11. Structural Dimensions

The structural dimensions help us analyse the effectiveness of the organisation structure and
enable an insight into the organisation and its functioning. Complexity, formalization and
centralisation are generally accepted as the core structural dimensions, which are discussed
below. Besides these, a number of other factors such as professionalization, autonomy etc
helps us analyse the coordination mechanisms and effectiveness of the processes and
functions of the organisation.

11.1. Complexity

Complexity is defined as the degree of differentiation in an organisation. The organization

has very low vertical and horizontal differentiation as there few levels in the hierarchy and
fewer levels of specialized activities grouped into departments The horizontal differentiation
of APMAS is low as there are not many (only 5) different departments specialized in
different set of activities and coordinate activities that have been horizontally differentiated.
However, these horizontally differentiated departments work with close association and there
is great mutual dependency on each other. The vertical differentiation of APMAS is low and
even CEO directly talks with the different team members, CBOs and CBCs. Due to the low
level of depth in the hierarchy of the APMAS the communication distortion is very low.

Spatial (Geographical) differentiation is relatively high as APMAS has its intervention in four
districts for rural sector and 3 towns for urban intervention across Andhra Pradesh. Also its
presence in other states such as Bihar, Orissa, Madhya Pradesh and Assam, etc. contribute to
the factor.

11.2. Formalisation

Formalisation is the degree to which the jobs in an organisation are standardised.. The nature
of work and activity in which APMAS is involved entails high level of formalization but it
also depends on the nature of the job and also the factors affecting it. There are very clearly
specified rules and regulations describing the activities of every employee and departments.
The guidelines about the roles of all and schedule is made before the start of every month for
every employee regarding his/her work for the whole month after discussing with him/her.
Besides, in case of livelihood promotion, it needs to be innovative and contextual so it can‟t

18
be standardised. Also, the dynamics of surroundings differs from each other. The level of
formalization however has not affected APMAS as it has build up an organizational culture
which is quite informal in nature.

11.3. Centralisation

The level of centralisation in decision-making is majorly defined by the risk factor associated
with the transaction. Centralization considers where the locus of decision making authorities
lies. A high concentration implies high centralization whereas a low concentration indicates
low centralization or what may be called decentralization. The field teams have been given
full discretion related to the delivery of services. The monthly schedule of employees is made
by the respective team heads after discussing with them. They can take decisions in those
matters. However, the financial matters are looked after by the CEO at head office in
coordination with the finance department and team leader at the team level.

11.4. Professionalism

Professionalism is very high in APMAS as the major activities of the organisation is in the
area of capacity building through training and research so, specialised people from varied
backgrounds and qualifications are required for each of the different activities. APMAS
accordingly chooses its employees. There are highly qualified personnel, who have PhD
degrees, acting as Associate Vice Presidents and others. Apart from these, the organisation
hires MBA graduates also.

11.5. Coordination

One of the major objectives of the organisation is to improve the coordination and make it
more effective. Both formal and informal co-ordination mechanisms exist for inter-team and
intra-team co-ordination. The delegation procedures necessitate immense coordination within
a team. There also exit periodic target achievement reviews, feedback sessions, team
meetings and unofficial outings to facilitate and foster intra-team co-ordination. To ensure
coordination employees are constantly reminded of the mission and vision of APMAS and
also the core value which the employees inculcate in them over a period of time serving the
organization.

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12. SYSTEMS

Figure 7: Core System of APMAS

The core system of APMAS constitutes of providing services in form of capacity building,
research &advocacy, livelihood promotion and quality assessment for the sustainability of the
SHGs and the federation. In the process the key inputs are the funding from several SHPIs,
government and non government agencies and the government schemes for promotion of the
SHG federations. The supporting role is being played by the HR, Outreach, ICT and
Accounting department to attain the output for APMAS. The output is in terms of the
technical and managerial support provided to various SHPIs and MFIs. Recently APMAS has
also entered into the financial product development for the federations and as part of our
OAC component we were working on the saving and loans product for the SHGs and the
federations.

12.1. Environment

The general environment of APMAS was quite diverse and constituted of the government
and related policies, Socio cultural aspects, economic conditions. The task environment
constituted of the funding agencies, different government schemes launched for the
sustainability of the SHGs and the competitors like the MFIs. The environment thus had low
moderate uncertainty.

20
Figure 8: Environment of APMAS

The four departments like the capacity building, R&A, livelihood promotion and quality
assessment play the role of boundary spanning and continuously maintain the linkage with
the external environment. There is large number of external elements and the elements are
dissimilar. Moreover elements remain the same and change slowly hence the environment is
complex but stable. But one of the major elements is the government policies and the external
agencies because most of the services that APMAS provides comes at a very low fee which is
not enough for it incur all the expenses. Hence it becomes imperative that the flow of funds
from the external agencies is on a continuous basis to meet the expenses. Again the
organisation has to continuously change itself in accordance to the change in the external
environment so all the four departments are vigilant to the respective changes that could
affect the organisation‟s performance.

12.2. Communication and resource system

As a technical and resource based organization, A key role of APMAS is its need to
disseminate effectively and efficiently, the sea of information and findings related to
microfinance, SHGs and SHG federations which it collects through research studies and
project initiatives. The information is made available to key players in the sector and to the
public through the APMAS resource center which holds numerous publications, books,

21
videos and documentaries, CDs and Brochures. In addition, the two APMAS websites are
also used extensively to disseminate the, latest publications and APMAS related news and
progress. APMAS also publishes a monthly Telugu news letter called Mahila Sadhikaratha
which focuses on a variety of women‟s Issues. This year the APMAS communications team
not only focused on improving the efficiencies of its various communication media but also
strove to disseminate information with results that would yield greater impact on recipients.
The team‟s initiatives also contributed significantly to generate revenues for APMAS.

During 2007-2008, the communications team

 Published SHG Federations in India – A status Report.
 Designed and printed brochures for the National Conference on SHG Federations
 Sold 17,368 APMAS publications yielding a revenue of Rs 5,34,000
 Printed all 12 issues of Mahila Sadhikaratha news letter in a timely fashion.
Subscriptions
 generated an income of Rs 1 lakh
 Revised and updated the currently existing APMAS brochure
 Printed over 10,000 copies of the MACS act book for use in Field operations.
 Added over a hundred new books to the resource center
 Supported SOC study in Kamareddy through the translation and publication of write
 ups in the News letter
 Assisted the Livelihoods Promotion unit with preparation of documentation for
 National level immersion workshops
 Translated various learning materials for use at workshops during National
 Conference on SHG federations
 Installation of Sonic wall and Symantec antivirus software for better protection of
 APMAS computer systems.

12.3. Consultative forum

In order to keep up with emerging issues that SHGs and their corresponding federations face
with respect to poverty eradication and women‟s empowerment as well as, how the rural
scenario as a whole, impacts the lives of the members, the Board of APMAS in 2004, put

22
forward the suggestion of establishing a Consultative Forum (CF) that would facilitate
APMAS keeping abreast of the ground realities faced by SHG members.

12.3.1. Members of the Forum

The APMAS Consultative Forum consists of twenty two women representatives from twenty
two districts of Andhra Pradesh. The selected women are experienced SHG members who
have been involved in the SHG movement at all levels including SHG, VO, sub district and
district level federations for a long period of time and who are capable of observing and
reporting to APMAS, various issues coming up on the field that affect SHG members. The
representatives meet with APMAS quarterly to talk about issues affecting women as well as
discuss the impact that various APMAS initiatives are having on SHGs and their federations.

12.3.2. Procedure for Policy Change

The recommendations put forward by the CF representatives are used by APMAS to make
policy changes at the State level and improve the regulatory frame work within which the
SHGs can operate. In so doing, it is hoped that these State level changes will uplift the social
and economic empowerment of the women in Andhra Pradesh.

12.3.3. Recommendations for APMAS from the Forum

This year, APMAS organized three CF meetings at the newly established learning center. The
SHG representatives provided APMAS with the following recommendations aimed at
benefiting SHG members and strengthening the SHG federations;
 Board and staff Members at the federation level must be educated on book keeping
and on how to read and analyse financial statements. They should also receive
trainings on financial Management and the MACS act
 .APMAS should also work on identifying value added services for existing
livelihoods in the Districts
 APMAS should Facilitate Audit, Livelihood, Rating and Social issues committees at
District level
 Separate standards should be designed for SMFIs based on their age and geographical
conditions when rating them for credit worthiness
 Strengthen the SHG urban movement to reduce poverty and hardship for women in
urban areas. They too, are in need of financial and social assistance.
 Increase trainings for SHG members at the learning center and disseminate published
best practices related to MACS, Insurance and Financial Management in Telugu for
easier understanding by members.
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13. STRATEGY
7 years of dedication in supporting the SHG movement in India, with an extremely promising
and ambitious drive to continue efforts into the future, APMAS holds invaluable experience
and knowledge accumulated since its founding in 2001. Tools and methodologies used by
APMAS for strengthening SHGs and their federations stand at their highest degree in terms
of practicality and relevance. This is owing to the continuous refinement of tools to keep up
with the dynamics of the SHG movement. Future progress for APMAS will, thus, be
propelled by its tremendous experience and vast understandings of SHGs, their federations
and the external environment.
The rationale for APMAS‟s future strategy is to contribute to the sustainability of the SHG
movement. Large numbers of poor have gained access to financial services through SHGs.
To sustain the SHGs, federations have been emerging on a large-scale. However, the growth
of the SHG movement has been confined to a few States and areas. Many women in other
parts of India are still left out from the benefits of the SHG movement. Through the strategic
partnerships established this year, APMAS aims to direct its efforts in working harmoniously
with its partners to reach the underserved areas and contribute to the sustainability of the
SHG movement.

13.1. Key Areas of Support

APMAS recognizes that for sustainability of federations in the future, it must put its efforts
in four or five major areas; strengthening the management capacities of federations, help
federations to mobilize their resources more effectively, increase external linkages for
federations and ensure that federations are capable of managing their own operations through
a well grounded self regulation process.

13.2. Strategic Thrust Areas

To achieve the key areas of support mentioned above, APMAS will continue to work. Several
APMAS initiatives that are underway in AP require strengthening and consolidation. Besides
its intensive focus on Andhra Pradesh, expansion to other States in collaboration with various
partners has begun but requires much work. In addition, another major thrust area is the need
to support SHG federations in emerging as sustainable financial and livelihood promotion
organizations. There is also a need to push more aggressively, self-organized supervision for

24
SHGs and their federations. APMAS is confident that with continued collaboration from
NABARD, Government of India and NGOs, these thrust areas can be strengthened further, to
achieve sustainability of the SHG movement.

13.3. Major Thrust Areas:

1. Consolidation of support to the SHG movement in Andhra Pradesh

2. Expansion to select states
3. Facilitation of self-organized supervision of SHG federations
4. Facilitation of SHG federations as sustainable financial institutions
5. Strategic partnership with NABARD & Government of India

13.3.1. Consolidation of support to the SHG movement in Andhra Pradesh

To strengthen the SHG movement and ensure its sustainability within AP, APMAS will
continue to support the SERP projects (cluster approach) by providing increased CB support
to SHG federations in the 14 clusters that it has been working with. Considerable efforts will
also be made to strengthen support services for the urban SHGS as well as collaborate with
MEMPA to extend the SHG movement to beyond the 3 towns that APMAS currently works
in. With respect to the two DLRC‟s in Kadappa and Adilabad districts which are now full
fledged resource institutions, the next step for APMAS will be to ensure that both these
DLRCS evolve as organizations that are capable of sustaining themselves. An effort to
increase livelihoods promotion activities for SHGs also remains high on the APMAS agenda.
Not only will APMAS continue to research into new profitable and feasible livelihood
options for SHGs but will also play a facilitator role in ensuring that APLLG continues to
evolve into a valued platform for sharing and learning about livelihood promotion activities.

13.3.2. Expansion to Select States

Having established strategic partnerships with various SHPIs in other states of India this year,
APMAS now intends to get action on the ground going in terms of promoting the SHG
movement. Specifically, it will begin implementation of the SDTT funded SHG
strengthening project in Bihar and UP, Complete SHG quality studies in Bihar and MP with
funding from NABARD, Support Koraput & Gajapathi districts in Orissa to develop SHG
federations as sustainable organizations, Initiate Capacity Building support in Assam, Bihar

25
and MP with support from NABARD and provide capacity building support to SCALE
partners in Gujarat, MP and Rajasthan (AKRSP, DSC, ARAVALI and PRADAN) to
strengthen their SHGs and corresponding federations.

13.3.3. Facilitation of self-organized supervision of SHG federations

APMAS has completed the first year Of Sector Own Control (SOC) which is a 2 year pilot
study aimed at promoting self regulation of SHGs and their federations in the Kamareddy
cluster of Nizamabad district. In 2009-20010, it will study the lessons learnt from the study
thus far, make relevant changes to SOC processes, learning materials and systems being used
promote self regulation and increase the efficiencies and effectiveness with which it delivers
SOC over the last year of the pilot study. A process document of events of the entire study
will also be prepared and made available for dissemination at the end of reporting year 2009-
2010.

13.3.4. Facilitation of SHG federations as sustainable financial institutions

As the number of SHGs increase, the ability to be self sustaining financially will be vital for
their survival. To achieve this financial sustainability, APMAS, over the next reporting year,
will continue to ensure intensive enrollment of SHGs under MACS and other liberal
cooperative acts, raise SOC awareness within SHGs by educating them on the importanceof
standardized book keeping practices, regular savings and on the need to conduct periodic
internal and external audits as well as ensure quality assessments of federations are
undertaken to enhance their credit worthiness. APMAS believes that all the above mentioned
practices will allow for SHGs and their federations to become financially sustainable by
improving their access to funds both internally and externally. As part of NNRO, APMAS
will collaborate with the 7 partners from other States to implement the project that has been
approved by Ford Foundation. The sharing of individual strengths by all partners on a
common platform will allow for progress on the SHG movement to be made across India and
in so doing achieve sustainability of the movement.

13.3.5. Strategic partnership with NABARD & Government of India

APMAS will continue to ensure that it maintains a harmonious relationship with GOI and
NABARD as it is only with their support that, sustainability of the SHG movement can be
achieved at the National level. To strengthen the SHG movement in select states, to facilitate
appropriate legal form for SHG federations, to formulate national level policy and guidelines
on federation-bank linkage and to promote self-supervision of federations/MACS, APMAS
will work in tandem with NABARD. Likewise, APMAS, in cooperation with its partners,

26
will assist GoI in formulating national policies and guidelines in supporting the provision of
livelihood and financial services for SHGs and SHG federations and other forms of
community based organizations. The outcomes from the National conference on SHG
federations held this year will serve as the base from which APMAS, GOI and NABARD can
implement changes in policies to ensure an effective regulatory frame work exists for SHGs
and their federations.

13.4. Porter’s Competitive Strategies

Michal. E. Porter studied a number of organizations and introduced a framework describing

three competitive strategies: low cost leadership, differentiation and focus. The following
figure shows framework for analysing organizational strategies:

Competitive Advantage

Low Cost Uniqueness

Low-cost
Broad Differentiation
leadership

Competitive
Scope

Focussed Low- Focussed

Narrow
cost leadership Differentiation

The above figure shows that an organization can have competitive advantage because of two
reasons i.e. uniqueness of the goods & services that it delivers or the low cost at which it
delivers the services. APMAS in this context falls in the former category as there are very
few organization that provide support to the government in implementing its IKP project. Its
primary activity through which it supports government is capacity building services to the

27
SHG federations. As far as competitive scope of APMAS is concerned it can be seen that its
narrow, although the organization is trying to expand into other states but still it is limited to
activities mainly focussing on providing capacity building support to CBOs in other states.

Its other three departments are considerably smaller in terms of resources (both human
&economic). Apart from that, the level of activities has not yet achieved the scale with which
it can make considerable difference to its external environment. Hence the strategy that
APMAS should follow is that of Focussed Differentiation.

Under differentiation strategy, organization attempts to distinguish its services from others in
its competitive environment. The strategy usually targets customer who need specialise
services and are ready to pay for it. It can be seen here that SERP is funding APMAS as it is
providing it with such unique services which no other organisation is offering. APMAS
should also focus at a specific market or buyer group which in its case is other SHPIs. Since
APMAS vision is about bringing sustainability to SHG movement across country, it should
necessarily work in collaboration with the organisations that are in some or the other way
linked to SHG movement. APMAS should not pay excessive attention to other activities like
livelihood promotion. Livelihood promotion should be a part of overall support services to
the federations and should not be taken indigenously because in that case it will have to face
tough competition with other bigger organizations which are undertaking livelihood
promotion in a big way.

14. STYLE
Style refers to the cultural style of the organization and how key managers behave in
achieving the organization's goals. Moreover culture implies the existence of certain
dimensions or characteristics that are closely associated and interdependent. In order to
understand the organization culture we have used a multi- pronged approach. Firstly, we have
used observation method to judge the norms and the behavioural dimension of APMAS‟s
culture. Then we met key persons of various teams and the managers of district teams and
conducted unstructured interviews to understand the issues related to the structural
dimensions of APMAS that affect the culture.

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14.1. Management Style

Managers fall into two broad categories - those who start up organizations or departments and
the vast majority who administer the status quo. Each type requires different personal
qualities. In APMAS the Board takes decisions on the policy related matters, partnerships
with the outside agencies etc. The CEO takes decisions on day to day activities with the
assistance of team leaders. Decisions like staff promotion, recruitment, termination rests on
his discretion. The core team committee comprises of team leaders and regional managers
which decide on field operations, planning and implementation. The core team meeting is the
decision making forum of the organization. Based on the recommendations of the core team
meetings Board approves/disapproves the decisions. Team leader has decision making on
sanctioning the TA bill, approving the tour plan and operational kinds of things.

14.2. Rules and Customs

Rules and customs refer to what people can or should do in general, rather than the way
specific business processes are carried out. At the beginning of an organization's life there are
few rules but as it evolves and more people become involved, rules and customs start
appearing. These may relate to the way the organization operates or may govern the social
conduct of staff. APAMS has clearly laid rules, systems and procedures which help in its
proper functioning. The organisation has very sound internal systems related to financial
management, HR Policy and Gender Policy. Dress Code at APAMS is not well defined as
employees also wore semi formal dresses on job. People generally wore formals or semi
formals. The teams were very informal in their outlook and dealings. APMAS has a well
defined code of conduct which forms an integral part of the HR policy4.

14.3. Social Behaviour

The total number of employees in APMAS is 55 and most of the employees spend the
majority of their time in a small group or team. This is because most of the work in the
organization is project and team based giving very little scope for interaction with other
employees. All staff meetings, core team meetings, retreat and other inter team meetings are
formal ways of bringing employees together and providing them a platform to share their

4
A brief copy of it is attached in the Annexure on code of conduct

29
experiences. Moreover at lunch and tea time the office kitchen becomes a common place for
the informal interaction. The members of a team generally get along well with each other, are
polite and treat each other with courtesy and socialize outside work. One peculiar thing that
we noticed was that they communicated to each other using the local area network and the
language used on the ip messenger was very formal.

14.4. Attitude to work

APAMS has more than 40 staff, additional interns, affiliates and consultants who work with
APAMS to realise its vision. There is strong emphasis on recruiting qualified and
experienced professionals. The employees are committed to the values of the organisation
and are ready to put extra effort whenever necessary to complete the assigned job. Accepting
that the organisation structure is a matrix one and there is a possibility of carrying multiple
reporting, the employees take it as a challenge to produce quality output in a limited frame of
time. The people in the organisation are working for the larger contribution to the
development sector. There is no dearth of well-motivated people in the organization. Most of
them are highly qualified and competent to get much more the salary in other organisations.
This speaks volumes that most of the people working in the organisation are working for their
professional satisfaction and contribution to the sector.

In APMAS rewards are equally there for efforts as well as results. The following elements of
encouraging environment were seen:
Systems like reporting and planning example- Time sheets and MRPS, ARPs
on time payments
updating of sectoral information and knowledge sharing
Continuous learning
Appreciating performance
Staff development programmes
Energetic CEO ( support in personal and professional)
Performance Appraisal System and feedback
Openness in sharing knowledge
Commitment toward poverty reduction
Flexibility to work in other areas/job chart
Support by seniors

30
 Freedom and respect to employees
Very good human resource

15. SKILL

APMAS provides four distinct services; capacity building, quality assessment (rating),
livelihood promotion and research & advocacy to major stakeholders of the SHG movement
to achieve outreach and sustainability. These services are interrelated and are directed to
maximize the efficiency of APMAS is achieving the intended objectives.

15.1. Capacity building

APMAS is a leader in providing trainings at almost all the levels of the system, staring from
the training for book keeping and Accounts maintenance to the members of an SHG to
training for the executives of various organisations on how to deal with several issues related
to rural and urban poor. It basically focuses on training-of-trainers based on needs
assessment, hand-holding support and follow up of trainings conducted, facilitating exposure
visits and enabling the process of problem solving at the field level. Field visits are
undertaken to provide on-the-job support and to demonstrate good practices in the field.
Expansion of the SHG movement support services to other States by APMAS and promotion
of the urban SHG movement are also key initiatives under this unit. Over the past 7 years,
APMAS has trained more than 70,000 professionals and federation representatives. During
2007-08, a total of 18,223 participants were trained and supported.

15.2. Quality assessment (QA)

This being a very recent and innovative in the development field has gained the confidence of
all the institutions that need some credibility attached to the people they are going to deal
with. Rating of SHG federations contributes to the sustainability of the SHG movement.
Through six rating tools that have been designed by the QA team over the last 8 years,
APMAS has assessed 431 SHG federations for various promoting organizations. The findings
of the assessments are disseminated widely to gather consensus on the need to build
necessary systems and processes for the SHG federations to become sustainable, both
institutionally and financially. APMAS ratings have been extensively used by SHPIs to

31
improve the quality and to provide “seed capital” and by banks and other financial
institutions to make lending decisions. APMAS is now recognized as a specialized agency in
SHG federation rating in India.

15.3. Livelihood promotion

As SHGs mature and get larger loans from banks on a regular basis, the need for converting
those loans into additional sources of income for SHG members arises. APMAS thus initiated
a Livelihood Promotion Unit in 2004 with financial support from the Aga Khan Foundation
(AKF) under its SCALE project funded by the European Commission (EC). Through this
unit, APMAS plays a catalytic role in rural livelihood promotion in collaboration with
Government of Andhra Pradesh and other livelihood support organizations. The key
objectives of this unit are:
 To integrate livelihood promotion with the agenda of SHG federations
 Develop institutions to promote „natural resources‟ based livelihoods especially in
agriculture and livestock, which form the basis of livelihoods for about three-fourth of
people in rural India. For this, 2 DLRCs are being anchored by APMAS in Adilabad
and Kadappa districts to provide capacity building for livelihood enhancement.
 Documentation and dissemination of best practices in livelihoods.

15.4. Research and Advocacy

As a technical and resource organization, APMAS keeps abreast of the ground realities to
provide a wealth of resources to other stakeholders in the development sector. The Research
and Advocacy unit is divided into three components; Research, advocacy and
communications.
Action and applied research is conducted by the unit on various issues as they emerge on the
field. The findings from the studies are then not only used to design capacity building
strategies for SHGs and promoting institutions, but are also disseminated through various
workshops (Advocacy) and made available to the public, through APMAS websites
(www.apmas.org and www.shggateway.com), Mahila Sadhikaritha (Newsletter),
publications, videos, CDs and Brochures which are available at the APMAS resource centre
(communications).

32
With respect to Advocacy, the National Network of Research Organisations(NNRO), a pilot
initiative supported by Ford Foundation has been a success. A National Conference on SHG
federations was also organized on to enhance the profile of the community based
microfinance in India with almost 500 participants from across the country.

16. STAFF/HUMAN RESOURCE

Approximately over 50 staff, interns, affiliates and consultants are working, to realize the
APMAS vision and strengthen the SHG movement across India in APMAS this year. 30
permanent staff works at the head office in Hyderabad under the four respective units and
about 30 affiliates manage day to day field operations within the rural regions where APMAS
works.

16.1. Affiliate System

To increase its outreach, APMAS has selected several individuals as affiliates to provide
capacity building services to SHGs and SHG Federations. APMAS identifies and selects
individuals with experience in promoting SHGs, provides them capacity building inputs and
accredits them to become service providers to a wide variety of stakeholders. These
individual affiliates work under the certification of APMAS and the quality of their work is
also monitored by APMAS. Today, 30 individual affiliates support APMAS in all regions.
One review and two CB events are conducted each quarter and they are provided quality
assurance support by APMAS.
Interns
During the reporting year, APMAS received 18 interns from within India (Ahmedabad,
Delhi, Tirupati) and overseas (Canada, UK and Germany). APMAS values the contributions
made by interns in terms of research and implementation of initiatives; the interns in turn,
value the work experience gained and the balance between learning and contributing under
supervision from skilled and experienced APMAS staff and affiliates.

33
16.2. Staff Recruitment Process

To recruit qualified and experienced professionals, APMAS follows an elaborate process for
staff recruitment. Newspaper advertisements, job announcements on the website, head
hunting and maintaining a roster are the methods used for sourcing candidates for various
vacancies at APMAS. All the short listed candidates go through a rigorous selection process
including a written test, group discussion and interviews. Two references are checked for all
the selected candidates. The chosen candidate undergoes an induction program anchored by
the team that they join or by the Human Resource Manager.

16.3. Human Resource System

Performance management is an integral part of the HR system. Regular (monthly and annual)
team and individual performance reviews and appraisals form the basis for incentives and
promotions. APMAS has a well developed HR policy which is updated from time to time. In
addition, APMAS strongly believes that effective human resources are a necessity for
organizational excellence. For this purpose, staff development programs were introduced,
including in-house technical and behavioral trainings, exposure visits and sponsored
programs. Every staff member is enrolled in about four to five programs per year.

16.4. APMAS Services for Staff Well Being

The over all well being of its staff is important to APMAS. As a result, a range of services are
provided to the staff to ensure their comfort and security. The services include; a peer
mentoring system to help staff achieve their personal and professional development goals or
view their problems within both spheres and employee welfare and safety schemes like the
Mediclaim Policy and Accident Insurance policy. This year, a major policy initiated by
APMAS for its staff has been the CASH (Committee Against Sexual Harassment) Policy.
The purpose of this policy is to show APMAS‟s commitment towards maintaining a positive,
harmonious and productive working environment free from sexual harassment. The policy
allows for a procedure by which inappropriate conduct will be dealt with effectively and
appropriately thereby providing utmost protection for staff with respect to any cases related
to sexual harassment should they arise.

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16.5. Senior Staff Perks

Senior staff of APMAS is eligible to take one month leave to undertake consultancy
assignments which will give them some incentive and also benefit the organization through
the experience gained from such assignments. To institutionalize the strong culture based on
our core values, the APMAS values are discussed in the regular meetings and are displayed
for all staff to read at the head and regional offices.

16.6. Compensation and benefits

APMAS seeks to provide a compensation package, which attracts, retains and motivates the
best for its employees. HR policy of APMAS contains adequate information regarding the
compensation and other benefits to the employees. Benefits include personal accident
insurance, medical Insurance, medical Insurance advances and others. Also aspects like
annual increment, leave travel allowance, gratuity benefits etc. are covered in the HR policy.

16.7. Training and Development

There are two broad areas under training and development. First is the induction of new
employees and second, the capacity building of the existing employees. Both are discussed in
the following sections.
Induction
As participation and continuous learning are the major components in the work culture of
APMAS, the Induction System in APMAS is in the form of a Buddy System along with the
orientation is given to the new entrant of APMAS, where an individual would be
coordinating with both the Regional and Head Office Staff and Departments depending on
the requirement especially in performing the work. Following are the salient objectives of
APMAS. It is a formal introduction and is a part of induction where the new employees are
given proper guidance and direction to their new job, new co-workers, and new working
environment.
Objectives of induction process at APAMS:
Understand APMAS
Understand field realities of Microfinance in Andhra Pradesh

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 Understand the need for and role of Quality Enhancement, Quality Assessment, Research
and Advocacy, Livelihoods, internalize and develop Job Descriptions
Understand the procedures and policies of APMAS.
Most of the employees who joined recently in the organisation are highly experienced. So the
process was not carried formally. But all employees went through some kind of induction so
as to get basic understanding of the activities of APAMS.
Training and staff development programs
It strongly believes that effective human resources are a necessity for organizational
excellence. For this purpose, employees undergo staff development programs, which include
in-house technical and behavioural trainings, exposure visits and sponsored programs. Every
staff is enrolled in about four to five programs per year. APMAS has also introduced a peer
mentoring system to help staff to achieve their professional and personal development goals.

16.8. Group processes

Team Meetings are held on 1st week of every month. In case of special need, meetings can be
held twice also. The team leader informs about the place, timings and date of the meeting.
The time sheets and monthly progress reports of each staff are sent to the team leader prior
the team meeting starts. The team leader reviews the time sheet before the team meetings. In
the team meeting last month‟s activity plan is reviewed and simultaneously action plan for
coming month is prepared. Topics are discussed and new tasks are delegated by the team
leader to the team members on voluntary and capability basis.
In the team meetings members discuss freely their anxiety, their achievements, their failures,
their strategy, reasons for change in strategy to the team leader as well as all team members.
After listening to the progress reports the team leader weighs the progress vis a vis last year,
gives areas to be focussed on and expresses readiness for timely support for any resource
needed to accomplish task assigned.
Apart from the Team meetings, in order to share information among inter teams there are also
meetings like all staff meetings and core team meetings. Core team meetings consist of all
regional manager and team leaders including the CEO. Core team meeting hence becomes the
decision making forum for the organisation. All decisions are made on consensus basis and
preparatory steps to be taken for the upcoming meetings are discussed. Action plan prepared
at the cluster team meeting is discussed by the Regional Manager (for regional offices) with
the Project Director. In the team meeting the RM also explains some of the points of HR

36
policy. After completion of team meetings the team leader consolidates the progress reports
along with the time sheets and sends it to the CEO and the Program Support.

16.9. Inter group relations

The teams actively provide need based support the other teams. For example QE team
provides input data to the R&A team. The process to seek help from other team is simple.
The team leader will request the team leader of another team and seeks help of any particular
person. The team members from some team may also help the PS team in development of
pay slip, time sheet formats etc. Also while conducting flagship programmes collaboration
between teams is needed. Core team meetings comprising of team leaders and regional
managers are held once in two months.

16.10. Appraisal system

Performance Management is an integral part of the HR policy. Regular (monthly and annual)
team meetings are held to access the individual performances. The appraisal forms a basis to
decide the incentives and promotions.
The objective of Appraisal System is to identify the performance gaps of the staff in their
existing job responsibilities, and thus, filling theses identified gaps through staff development
programs, which enable staff for a better performance. At APMAS, there is 360 degree
Annual Performance Appraisal System: It is the process in which an Employee evaluates
him/herself on a set of criterion, that his/her peers, Manager/Superior evaluates the employee.
Appraisal System in the organization is primarily done on a team based approach. There is an
appraisal format in use. The appraisal process consists of the following steps-
1. A preliminary discussion takes place between the Supervisor and the Employee so that
they come to an agreement on the process of the appraisal: it must be positive and serve the
purpose of self development. During this discussion, existing job description, annual
performance plan and also the performance indicators are reviewed. An agreement must be
made on the no. of inputs into the appraisal of the employee, a minimum of 2 people and
maximum of 6 persons.
2. The employees have to complete the appraisal format within a particular frame of time.
Those identified for providing inputs have to give their written inputs focusing on what have

37
been their major achievements of the employees during the reporting year and what are the
areas for improvement.
3. Discussions are held on performance appraisal between employee and the supervisor based
on the self-appraisal and the input provided by others.
4. Supervisor drafts the appraisal for every year and shares it with the employee for feedback.
5. Based on the feedback, the appraisal is revised and finalised after discussion with the
employee.
The concept of peer grading also exists in some of the teams where members rate not only
their team mates but also their team leader. Normally the team leaders and regional managers
are appraised by the CEO and inputs are provided from team members, team leaders of other
department or the employees from field who have been closely working with the concerned
employee to be appraised.

16.11. Use of Performance Appraisal

The performance appraisal process enables the organization to document an employee‟s

performance during the year for current and future reference, which provides the base for
merit increase, promotion & rewards. Also it links the organization‟s vision, strategy,
priorities and values to an individual performance and contribution, thus creating a positive
and healthy working climate in the Organization.
The performance appraisal process enables the employee‟s for their future job
responsibilities, by providing an opportunity for self reflection & individual goal setting by
the employee. It also encourages continuous feedback and communication between
employees and supervisor & identification of the developmental needs of the employee. It
enhances in filling of the gaps in the performance level of the employees in their roles &
functions, in relation with the strengths & weaknesses. It enables the employee to understand
how the organization meets its goals with segregating the performance of the employees,
thereby setting clarity about employees‟ roles & responsibilities. The Appraisal process thus
provides an opportunity for mutual understanding between the Supervisor and Subordinate in
matters relating to the Subordinate‟s performance and conduct of the same or different
department.

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16.11. Employee Turnover

On an average three to four people leave the organization every year. The last year has been
exceptional as 10 people left during this period (Figure 2). The Quality Assessment team
which once comprised of 8 members is now left with 2 members. The CEO reported that it
happened because of the decline in demand of quality assessment. High turnover in the last
year was attributed to better pay and better benefits offered by the commercial MFIs.
Figure 9: Attrition Rate at various levels

5
4
3
2
1 Attrition rate
0
Level Level Level Level Level
1 2 3 4 5

Figure 10: Reasons for Attrition

2%1%2% 2%
Better pay

4% 10%
39% Better
opportunities
8%
Better benefits

19% Field Conditions

13%

39
One of the major reasons behind the high attrition rate was the higher slary offered by the
MFIs in the region. Many of the other NGOs in the development sector were offering better
perks and pay for the same service due to which some of the people drifted to other
organisations. The quality assessment department of APMAS was the major sufferer as of
now only two people are left with the department. The quality assessment Chief Mrs.
Vijaylakshmi said that over the years the demand for the quality assessment has decreased
and thus people are drifting from the field.

16.12. Termination/Resignation

As all employees of APAMS are under contractual job, the contract can be terminated by
either side by giving a one month notice. The general practice in the organization is that, if
any problem is observed in performance of the employee, he/she is counselled by the Team
Leader and the CEO. If some capacity building need is observed he/she is sent to training
program. Even after repeated counselling and capacity building the performance does not
improve in that case the respective employee may be asked to leave. However, till now such
situation has not arisen.

17. PERFORMANCE:

Growing at an exponential pace with a very promising future in strengthening the SHG
movement across India, the year 2008-09 has been an extremely exciting year for APMAS in
terms of both, extending its services to other States of India and strengthening with vigor, the
existing SHG movement in Andhra Pradesh (AP).

Financial Analysis of APMAS in the year 20087-08 highlights the following points:
• It Earned Rs.11,265,170 as consulting and service fees in 2008
• Grant received Rs. 19,097,546
• Earned Rs.418,981 on sales of Publications and Magazines
• Total Income Rs. 31,697,420
• Excess of Income over Expenditure Rs.973,459

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17.1. Other Major achievements of APMAS for the year 2007-2008

17.1.1. The National Network of Resource Organizations (NNRO)

Although the SHG movement is growing at a phenomenal pace and has reached a quarter of
total families in India, SHG quality remains uneven across the country with certain regions
being under served or un-reached. To promote and strengthen the SHG movement which has
significantly contributed to poverty alleviation and empowerment of women, five pioneer and
committed resource organizations in MF and the SHG sector from different parts of the
country; namely APMAS (Hyderabad), Chaitanya, Rajgurunagar (Pune); ISMW,
(Ahemadabad), CMF (Jaipur) and Reach India (Kolkatta), West Bengal came together and
formed a network known as the NNRO. With funding support from the Ford Foundation for a
16 month pilot phase in June 2007, the G5 have worked in strong collaboration with each
other, sharing valuable knowledge in microfinance and livelihood promotion to extend the
SHG movement across India. APMAS is happy to inform that the pilot phase was a success
and that the Ford Foundation has agreed to extend the funding to the next 3-5 year plan of the
NNRO. In the expansion phase, West Begnal SHG Promotional Forum (WBSHGPF) and
Grameena Mahila Okka Koota (GMO), Karnataka has joined as members.

17.1.2. SHG Federations in India - A Status Report

Another significant accomplishment for APMAS this year had been the publication of SHG
Federations in India- A Status Report. The publication covers a country wide dynamics of
SHG federations from their existence to their progress to the challenges they face. Such an in-
depth study of SHG federations in India is the first of its kind and APMAS takes great
pleasure in being the pioneer of this study. The study was release at the Microfinance India
Summit in October 2007.

17.1.3. National Conference on SHG Federations

To widely disseminate the findings of the publication on SHG federations in India – A status
Report, and to facilitate cross learning among diverse stakeholders, APMAS took the lead
role in organizing a national conference on SHG federations in collaboration with the
Government of India, SERP, NABARD and the National Network of Resource Organizations
(NNRO) during the month of February‟08. More than 500 participants from 18 different
States and union territories took part in the conference. An event of its kind, integrated with
field visits, the conference facilitated 231 primary stakeholders (representatives of SHG
federations) to meet with more than 275 secondary stake holders and resource persons
(governments, pioneering NGOs, SHPAs, banks, academic and research institutions) to

41
discuss and share experiences and expectations on one platform. It hopes that the
Government of India, respective State Governments, NABARD and other policy making
bodies will act on these suggestions to create an appropriate and supportive regulatory
environment for the sustainability of SHG federations across India.

17.1.4. Expanding Initiatives to Bihar

Strong in its commitment to strengthening the SHG movement across India, a commendable
expansion project initiated this year that is worthy of mention is the APMAS- Bihar initiative
aimed at enhancing the quality and sustainability of SHGs in Bihar. APMAS submitted a
proposal for this initiative to Sir Dorabji Tata Trust (SDTT). The proposal was approved and
SDTT will be funding this expansion project for the next six years. Work in Bihar has begun
and APMAS is providing extensive capacity building support to both promoting institutions
forming SHGs as well as to SHG members. The same project will be extended to Uttar
Pradesh in 2008-09.

17.1.5. Sector Owned Control (SOC) / SNU

SOC is a new APMAS initiative aimed at self regulation of SHGs and their federations. With
funding support from InWent and DGRV, Germany, the 3 year pilot study began in February
2007 and is being conducted in 6 Mandals (Kamareddy Cluster) of Nizamabad District. In
order to be self-reliant and sustainable, SHGs and their federations need to strengthen internal
capacities, improve systems, increase accountability and manage their own financial, human
and material resources. The SOC team has, thus, developed user friendly learning modules
for SHG members to manage their own operations. APMAS believes Self regulation is vital
for long term sustainability of the SHGs and the project is making good progress. The project
is named as Swayam Niyantrana Udhyamam (SNU – is a Telugu name which means
“Movement for Self Regulation”) for SHG members in the 6 Mandals.

17.1.6. Promotion of SHG Federations in Urban Areas:

APMAS initiated support for the SHG movement in urban areas a few years. During 2007-
08, the promotion of SHG federations at slum level and also at the town level was initiated in
3 towns. The results have been excellent as 112 SHG federations have been formed and they
are undertaking several activities like food security and health in addition to the strengthening
of the SHGs in their operational area. It has emerged as resource organizations in the urban
SHG movement.

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17.1.7. Raks Thai Foundation
This year, APMAS also undertook an international assignment to strengthen and provide
capacity building support to Community Based Microfinance Institutions (CBMFIs) in
Thailand at the request of Raks Thai Foundation. This was a one year project under which,
APMAS, conducted studies to identify gaps that need to be strengthened for CBMFIs in
Thailand, provided CB services, streamlined existing systems and designed various modules
aimed at revitalizing the institutions.

17.2. Major Donors

The following donors provide considerable support to APMAS Initiatives and have as a result
contributed significantly to the SHG movement within and across various states of India. The
Aga Khan Foundation (AKF) and Ford foundation continue to support a range of APMAS
initiatives generously and have contributed significantly to the growth and development of
APMAS. InWent- Germany, must not be forgotten for providing financial support for
APMAS‟s five year Impact Assessment Project and for supporting the first year of the new
two year pilot on SHG self regulation (SOC). Likewise, the establishment of the NNRO,
Learning centre and Cluster approach projects could not have been possible without funding
from FORD Foundation. DGRV will be funding the 2nd year of the SOC pilot study.

43
18. References

Reports
a) SHG federations in India (2008), APMAS ,Hyderabad
b) APMAS Annual Report 2007-08

Articles
a) Waterman, R. Jr., Peters, T. and Phillips, J.R. “Structure Is Not Organisation” in Business
Horizons, 23, 3 June 1980. 14-26.
b) Pascale, R., Athos, A. (1981) “The Art of Japanese Management”, London: Penguin
Books;
c) Peters, T., Waterman, R. (1982) “In Search of Excellence”, New York, London: Harper &
Row

Website
a) www.apmas.org
b) www.shggateway.com

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Annexure 1: Members of the Governing Board
1. Mr. Madhava Rao, Former Chief Secretary Chairman IAS (Retd.) of AP & Central Board
Member of RBI
2. Ms. Nandita Ray Chairperson, Outreach Vice Chairperson
3. Mr. Koppula Raju, IAS. Principal Secretary Board Member Dept. of Rural Development
4. Mr. Akella Laxmi General Manager Ex-Officio Member Nageswara Rao Andhra Bank &
Chairman of Audit Committee
5. Mr. Aluri Samba Siva Rao Chief General Manager Ex-Officio Member NABARD
6. Mr. CV Rao DGM SIDBI Ex-Officio Member
7. Ms. Vijayalakshmi Das Executive Director, FWWB Board Member
8. Ms. Ramaprabhakar CEO – Jagruthi MACs Board & Audit Committee Member
9. Mr. J. Neelaiah CEO - Ankuram Board Member Sangamam Poram
10. Ms. Peta Usha Rani SPM (IB)-SERP Board Member
11. Mr. P.V.A Rama Rao Former NABARD MD Board & Audit Committee Member
12. Prof. Sheela Prasad Professor–Central University Board Member
13. Prof. K.V Raju Professor IRMA Board Member
14. Mr. Jayesh Ranjan IAS Govt. Service APTDC Board Member
15. Ms. Sudha Kothari Chaitanya Board Member
16. Ms. Vidya Ramachandran Myrada Board Member
17. Mr. T. Vijay Kumar IAS CEO SERP Special Invitee
18. Zilla Samakhaya President Srikakulam District Board Member
19. Zilla Samakhaya President Anantapur District Board Member
20. Zilla Samakhaya President Ranga Reddy District Board Member
21. Mr. Tupalle CEO – APMAS Ex-Officio Member Chandrashekar Reddy

i
Annexure 2: Partners
APMAS collaborates with government, non-government and private organizations to provide
and receive technical, managerial and funding resources. The following is a list of
collaborators, partners and network associates;

 Department for International  Sa-Dhan

Development,  BASIX
 United Kingdom of Great Britain  THINKSOFT
 CARE India (CASHE Project)  WASSAN
 Aga Khan Foundation  GRAM
 Ford Foundation  CEAD
 Society for Elimination of Rural  AKRSP
Poverty(SERP)  ASMITA
 District Rural Development  Commissionerate of Rural
Agencies(DRDAs), Development
 District Water Management  LV Prasad Eye Institute
 Agencies (DWMAs)  DSC
 Andhra Pradesh Urban Services  ARAVALI
for the Poor(APUSP)  PRADAN
 Andhra Pradesh Rural Livelihoods  Mission Shakti – Orissa
Project  Sir Dorabjee Tata Trust (SDTT)
 (APRLP)  Center for Microfinance (CmF)
 Participatory Research in Asia  Chaitanya, Pune
 Centre for Good Governance  Indian School of Microfinance for
 Indian School of Livelihood Women (ISMW)
Promotion  Reach India, Kolkatta.
 Consultative Group to Assist the  West Bengal SHG Promotion
Poor Forum (WBSHGPF)
 Centre for Environmental Concern

ii
Annexure 3: Financial Statements
Financial Statement 1

iii
Financial Statement 2

iv
Financial Statement 3

v
Financial Statement 4

vi