trainers manual on shg formation mk sinha
TRANSCRIPT
Trainer’s Manual on Self-Help Group Formation
1
Trainers Manual on Self Help Group
Formation
By Manoj Kumar Sinha
Grameen Development Services
Head Office: B1/84, Sector B, Aliganj, Lucknow (UP) e-mail: [email protected] Ph- 0522 2334112, 2334432
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C o n t e n t s P a g e s
A B O U T T H E M A N U A L 1-2
CHAPTER 1 INTRODUCTION 3-27
1 What is a Group 3
2 Characteristics of a Group 4
3 What is the Importance of a Group 5
4 What is a Self Help Group 6
5 What are the functions of a Self-Help Group 6-7
6 What are the Different Types of Self-Help Groups 8-9
7 What are the Salient Features of a Self Help Group 9-10
8 Why Women’s’ Self-Help Group 10-11
9 What is the Ideal Size of a Self-Help Group 13
10 What should be the Composition of an SHG 14-15
11 What should be the Frequency of an SHG Meeting 15-17
12 Timing of an SHG Meeting 17-18
13 Duration of an SHG Meeting 18
14 Venue of an SHG Meeting 19
15 Exercises 21-27
CHAPTER 2 PRE GROUP FORMATION STEPS: GAINING TRUST OF THE COMMUNITY
28-48
1. Situation Analysis 28-30
2. Rapport Building with the Community Members 30-31
3. Conducting PRA Exercises 32
4. Meeting with the Members of the Target Community
33-34
5. Exercises 35-48
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CHAPTER 3 STAGES OF GROUP DEVELOPMENT 49-76
1. Initial Stage of Group Development 51-53
2. Intermediate Stage of Group Development 53-56
3. Mature Stage of Group Development 57-59
4. Phasing out Stage of Group Development 60-63
5. Exercises 64-76
CHAPTER 4 IMPORTANT GROUP PROCESSES 77-105
1. Participation (What is participation all about, Factors Influencing Members’ Participation in a Group)
79-83
2. Communication (What is Communication all about, Factors Influencing Effective Communication in a Group)
83-86
3. Leadership, Decision Making, and Conflict Resolution (What is Leadership, Role of Leadership in running a Self Help Group, What is Decision-making All about, What is a Conflict, Steps to Conflict Resolution)
86-94
4. Exercises 95-105
CHAPTER 5 MANAGEMENT AND FUNCTIONING OF AN SHG
106-141
1. What happens in a Routine SHG Meeting 106-109
2. Framing Norms (Norms for Timing, Frequency, and Venue of the Meeting; Norms for Membership; Norms for the Termination of Membership; Norms for the Group Leaders; Norms for Savings and On-lending among the Members; Other Administrative Issues; Reviewing and Modifying Group Norms)
109-115
3. System for Record Keeping and Accounting 115
4. Control over the Common Fund of the Group 116
5. Mechanism for Information Flow within the Group 117-118
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6. Monitoring and Review 119-123
7. Registering a Group 123
8. Federating the Groups 124-126
9. Linkage with the Banking Institutions (The Need to Open an Account in a Bank; Formalities Required for Opening an Account; When to go in for External Funds)
126-128
10. Exercises 129-141
CHAPTER 6 BASIC RECORDS OF A SELF-HELP GROUP 142-156
1. Cash Book 142-144
2. Ledger Book 145-146
3. Pass Books 147
4. Minutes-cum-Attendance Register 148
5. Financial Auditing in a Self-Help Group 149
6. Exercises 150-156
CHAPTER 7 SOME GUIDELINES FOR FIELD WORKERS 157-177
1. Tools to Conduct a Situation Analysis (Participant Observation; Case Studies; Key Informants; Individual in-depth Interviews; Social Surveys; Group Discussions; Wealth Ranking)
157-162
2. Focusing on Women in SHG Formation 163-164
3. Interacting in the Community and the Group 164-165
4. Facilitating Group Meetings 166-167
5. Loan Repayments and Monitoring 167-168
6. Various Financial Transactions within a Group (Capital of the Group; Income of the Group; Expenses of the Group)
169-170
7. Common Reasons behind breaking up of a Group 170-171
8. Exercises 172-177
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About the Manual
This manual on Self Help Group formation is primarily
addressed to the trainers who are required to train
field/community workers involved directly in the role of
mobilization and formation of self-help groups at the
community level. The field worker at this point is the key
human factor responsible for promoting and sustaining all
development programs. Howsoever sophisticated and well
intentioned the policy and design of a social development
program or project, its success or failure largely depends upon
the quality and commitment of the field level worker. S/he
intermediates between the formal project system and the
community of project service users. The systematic training and
capacity building of the field worker therefore is essential for
any successful community based intervention.
The manual seeks to address the basic training need of any
community based social development project around a specific
function – the formation of small self-help groups of poor
people, particularly women. Small, usually women membership
based, self-help groups, formed with the poor, have emerged as
one of the powerful and successful social methodologies for
creating a base for mobilizing poor communities towards
vibrant and self reliant community organizations. The self-help
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group is the sustainable nucleus for community managed social
and economic projects in different sectors such as livelihoods
and income generation programs; micro credit and community
savings programs; community health and education programs;
and other resource sharing programs such as for water and
agriculture. Self-help group formation provides the sustainable
social base on which different sectoral programs can be
implanted and often constitutes the first step in any community
group based programming.
The manual has attempted to be exhaustive in its chosen field,
in terms of content coverage as well as exercises that can convert
abstract concepts into skills and behavior. However, in as much
as the human element will continue to play the predominant
role in any social process, such as self-help group formation, its
application needs to be tailored and creatively supplemented for
different field contexts. It is a tool, but will always need a good
carpenter for crafting a creative human process, such as people
based self-help group formation.
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CHAPTER 1
Introduction
1.1 What is a Group?
roup life is basic to human beings. As humans, we all
have experiences of growing up in families, schools,
communities, clubs, etc. Though we all have our own distinct
identities, not entirely matching with one another, yet we do not
live alone or in isolation of others. Interaction inter se takes
place instinctively. We thus join together to be identified as
neighbors standing up often collectively to face and solve issues
of common concern such as sanitation, drinking water, security,
etc. To differentiate such group behavior from other modes of
organized social behavior, we need to know about the specifics
of a group. That is, we need to define a group.
A group therefore may be defined as a collection of three or
more individuals interested in pursuing a common goal or
objective, with mutual acceptance, and for a specific period.
The main characteristics of a group are:
Similarity of Purpose or Goal
Mutual Acceptance of one another
Commitment towards the Common Goal of the Group
Continues for a Specific Period of Time
Well Defined Norms and Criteria
G
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Characteristics of a Group
Similarity of Purpose or Goal
Mutual Acceptance of one another
Commitment towards the Common Goal of the Group
Continues for a Specific Period of Time
Well Defined Norms and Criteria to Differentiate the Members from the Non-members and to regularize the Management of the Group’s Affairs
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1.2 What is the Importance of a Group?
n many social situations working as a member of a group is
important because,
I
A concerted effort is often
more powerful as it acts with the added force of numerical strength,
It exemplifies the saying
“unity is strength”,
Group is a powerful medium of learning, adjusting, and
expressing oneself in a social situation,
It helps inculcating a sense of worth and self-reliance in an individual,
It brings people of different shades closer, provides them an opportunity to analyze and
understand their problems collectively, and encourages them to make constructive
efforts to find out a solution, and
Through the group benefits of
social programs, including those related to savings and credit launched by the government
and non-government agencies, reach an individual more easily.
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1.3 What is a Self Help Group (SHG)?
s the name suggests, it is a group of persons dedicated to
the idea of helping each other. So is the idea behind every
group. A self-help group, however, is distinguishable from the
rest in as much as it is more forcefully goal oriented and more
closely aligned in membership.
Considered in terms of social development, an SHG is a
voluntary association of 10 to 20 people belonging to the
weaker strata of society, forging alliance to pool in their
resources (time and savings, etc.) at regular intervals for
meeting the common needs of the members. These needs
may be short-term or long-term, depending upon the
aspirations followed by the group.
1.4 What are the functions of a Self-Help Group?
ollowing are the main functions of a self-help group:
Conducting Weekly Meetings At a specified time and venue
fixed by the members.
Regular Savings Of a fixed amount and at a
fixed interval decided by the
members.
Lending and Repayment To enable the members benefit
from the common fund and
enable it to grow through
productive circulation.
A
F
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Maintaining Books of
Accounts and Records
To promote accountability
within the SHG and establish
its credibility as a self-
sustaining institution.
Linkage and Networking To widen its scope of work.
Minimum Community Action
Program
To build trust in the
community by widening its
outlook.
Training and Capacity
Building
To provide members
opportunities to build their
capacities.
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1.5 What are the Different Types of Self-Help
Groups?
s we saw in the preceding section, a self-
help group is primarily a self interest
group, meant to look after the interests of the
members in the first place.
A self-help group, based on the purpose for which it is formed
can be an economic group or a social group.
(A) A self-help group formed to fulfill primarily the economic
needs of its members is an economic self-help group.
The main objectives behind such a group include –
Pooling in savings spared by the members into a common fund,
Rotation of the common fund as a consumption or productive
loan to the members, and
Linking the group to financial institutions for pursuing small
business enterprises.
Many people term such a self-help group as a “savings & credit
Group”.
(B) Similarly, a self-help group formed to essentially fulfill the
social needs of its members is a social self-help group.
The main objectives behind such a group include –
To act as a pressure group for vindicating a social cause,
A
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To act as a guild of organized beneficiaries of a social
development program,
To act as a working group for social issues such as health,
education, etc in which the members have their individual
stakes and benefit individually from its services.
This manual however focuses attention on the economic
type of self-help groups and the term SHG has been used to
mean the self-help groups engaged in economic activities,
i.e. savings and credit activities. However, the concept is
equally applicable to the social type of self-help groups as
mentioned above.
1.6 What are the Salient Features of a Self Help
Group?
It usually consists of 10 to 20 members (reasons given
separately in section 1.8).
The group can either be registered or unregistered.
It is governed by a code of conduct formulated by the members.
The code of conduct includes, among others, norms specifying
the following:
► Amount and periodicity of members’ regular contribution to
the common fund,
► Benefits such as loans to the members from the common
fund, and
► Cost such as interest chargeable on such loans.
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Regular pooling in of savings/resources by the members
through voluntary contribution is necessary.
Means of working are democratic, allowing equal opportunity to
every member to express, articulate, and exchange her/his
views.
Maintenance of group records such as attendance register,
minutes register, savings register, loan register, etc either by the
group itself or by some personnel engaged from outside.
1.7 Why Women’s’ Self-Help Group?
omen are the most affected amongst the
socially and economically marginalized and
unemployed populations of the society.
They are more vulnerable to the struggles of life than others,
which can largely be ascribed to the lower social status given to
them within the family and society. Gender discrimination, of
explicit and implicit nature, permeates societies of all types.
Though poorer and neglected in family and society, yet women
have the potential and means of becoming significant
contributors to their household economy and overall well-being
of their families. They are, by nature, more disciplined in fiscal
matters and take their various accountabilities more seriously
as has been proved by all developmental programs. Increased
household income earned by men often finds its way to non-
productive expenditure on self rather than family. Women on
the other hand value their savings/income and tend to invest
the same for the welfare of the whole family.
W
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Following reasons further supports the fact that self-help group
formation amongst women is both more desirable and more
viable.
Amongst the poor, women are more marginalized than men.
Women are more proficient at managing the household economy.
They are more disciplined savers.
Savings related activities serve to be an entry point in
organizing poor women for multiple purposes such as
increasing their income and employment potential, initiating
a process of self-empowerment, and improving their skills
required in exercising their livelihood choices, etc.
Working together as a collective generates strength in
women; it increases their confidence and the image of self as
individuals.
Through women, benefits reaches to the whole family.
Moreover, as a collective, they become bankable, which
opens up avenues for outside linkages to support their self-
help activities.
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Sarala’s Story
Harichanpur Gadhikanaura is a collective of five slum areas situated beside Lucknow - Kanpur road in close vicinity of
Charbagh railway station. These five slum areas are Gadhi Kanaura, Artinagar, Premvatinagar, Shramviharnagar, and Vijay Kheda.
In one of these slums lives Sarala (aged 40), a woman of very
ordinary means in life. She is a resident of Artinagar and is a changed person from what she considered herself three years back when she was not associated with any self-help activity.
She recalls how difficult it was for her to manage her household expenses consisting of four children, herself, and a handicapped husband. Her husband
Suresh was a rickshaw-puller, who lost one of his legs in a road accident some five years back and was thus rendered jobless. His accident not only cast a spell
of gloom in their life but also rendered them without a proper means of livelihood.
Somehow, by mobilizing her available resources, she managed to start a petty kirana shop at the door of her jhuggi. This was all she could think of for earning
her bread. The shop yielded income, but it was not enough to look after the whole family. Nevertheless, she set out some money for a rainy day, even if Rs. 2 or 3, by cutting down expenses to the bare minimum.
After a couple of years, her economic conditions improved a little, though not enough to plan further expanding of her business. Fortunately, as she claims
now, she met a couple of community organizers who were working around the theme of self-help activity in her locality for some time. After attending a few
meetings, she felt convinced of the purpose behind it and decided to join it as one of its members. This opened avenues for her to know many things about the life of a woman of her class and the means to support it. From the earliest
mandatory monthly saving of Rs. 10 to today’s mandatory monthly saving of Rs. 200 over a period of three years, her group has covered successfully a long
distance. She remembers how it looked like a dream come true when her group for the first
time sanctioned her a loan of Rs. 400/- for expanding business. Similarly, she recalls, how proud and self-satisfying was the moment when the loan was repaid within the stipulated time of four months.
Accordingly, her life too changed, as she is now able to send two of her younger
children Dipak (aged 8) and Roshan (aged 10) to school. The eldest son is working at an auto garage while the second one shares her work at the shop. She is even planning to take her husband to Kanpur for getting artificial limbs. She
has recently been appointed as the new “Adhyaksha” (chairperson) of her group.
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1.8 What is the Ideal Size of a Self-Help Group?
t was said earlier that a group can have a maximum
of 20 members. One may ask why so? Theoretically,
a group may have any number of members. However, what
needs to be kept in uppermost mind when an SHG is formed is
that –
The bigger the size of the group, the more difficult it is to
facilitate and maintain cohesiveness within the group.
Proper management of the group’s affairs, equal
participation and interaction amongst the members, equal
sharing on investment and gains – all magnify in complexity
as the size of the group increases.
What should be the minimum number of members in a group?
It could not be anything less than 3. However, that is far from
being a viable size. Experience shows that a group having less
than10 members may not have resources to generate workable
internal capital. There will be also infrequent rotation of the
group, which may lead to low financial growth. Therefore, any
group having less than 10 members will not be able to support
and sustain itself over periods. A very small group is also found
lacking in group-dynamism, expected of it for providing a social
and economic prop to its members.
TOO BIG A GROUP IDEAL GROUP UNVIABLE GROUP
I
More
than 20
Members
Less than
10
Members
Between
10 and 20
Members
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1.9 What should be the Composition of an SHG
o maintain cohesiveness of a group, we have learnt that the
size of the group is an important factor. Another important
factor is the composition of the group.
Composition of a group is nothing but the texture of
membership pattern evincing degree of consistency or variation
in terms of their socio-economic status.
A group evidencing gross disparities in the socio-economic
status of the members is more likely to fall apart in course of
time. It also encourages domination by a few over the others.
The more a group is homogeneous in terms of membership
profile, the better. It ensures cohesiveness within the group
and synchronization with the outside world.
A HOMOGENOUS GROUP A HETEROGENOUS GROUP
The thumb rule to follow in this respect is to encourage the
poorest families in the village/community to form a group.
Ideally, the members should be from the lower economic strata.
T
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As far as possible, members of the community who are
comparatively better off should be discouraged from entering
the group unless it is an affinity group formed on its own.
Those who are nearer to one other, living and working together
on day-to-day basis are better suited to club into a group.
The members preferably should be married and permanent
residents of the village/community, otherwise the group may
weaken because of the frequent change of members.
Likewise, someone who is already a member of another self-help
group should not be considered for membership in a new group.
1.10 What should be the Frequency of an SHG
Meeting?
group interacts only when it meets. Therefore,
without enough interaction among the
members there cannot be any viable self-help
activity. Hence, meeting of the group is an integral
part of any self-help program right from the beginning to the
end. However, the question arises at what interval a group
should meet.
Going by the experience, a newly formed group should meet
quite often, say once a week at least.
A group often acts skeptically in the initial days. Members are
uncertain in their behavior, not yet fully open to the new
situation they find themselves in.
A
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Frequent meetings help them to get familiar with each other,
and gain a feeling of belongingness to the group.
Frequency of the Meeting at Different Stages or
Situations
S.N. Different Stages/ Situations of a
Group
Weekly Meeting
Fortnightly Meeting
Monthly Meeting
1. At the initial stage (first three months)
2. When the group has matured (after the
initial consolidation)
3. In odd cases (where
the members are very busy with either the household cores, or
the work in the field, or both)
= Less suitable; = More Suitable; = Not Suitable
Savings, and that too on a regular basis, may be a new way of
life to many in the group. Hence, to get quick familiarity with
the concepts of savings, credit, self-help, group management,
record keeping, etc it is expedient to organize weekly meeting of
the group.
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It is also advisable that the members are encouraged to see the
advantages of weekly meetings themselves by thinking,
analyzing, and anticipating the accompanying benefits
individually and collectively. Several heads put together may
evince greater prudence.
Once the group settles down, having acquired some
cohesiveness and understanding of its role, frequency of the
meetings may be reduced to once in a fortnight or a month.
Fixing up of the frequency of the meetings, even initially, is the
prerogative of the group. However, the facilitator or the field
worker may guide the group to a decision as per its needs.
One very important fact to be kept in mind in this regard, both
by the group and the facilitator, is to see the convenience of the
group members. Where members are wage laborers, or engaged
in occupations requiring them to go outside the
village/community frequently, weekly meetings should be
avoided and instead it should be held once a month.
1.11 Timing of an SHG Meeting
he timing of the meeting should be fixed as per
the convenience of the members.
In a village situation, women are generally busy during the day
hours. They either work at home or in the field. In this
situation, therefore, it is best to hold the meetings during the
late hours of the evening.
T
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Similarly, during the harvest season the timing of the meeting
may be adjusted as per the members’ needs.
The thumb rule here is to accord first priority to the
convenience of the members; the fieldworker’s time may be kept
flexible for adjustment accordingly.
It is nevertheless desirable to organize meetings on the same
day of the week and at the same hours under normal
conditions. Such a practice helps the members imbibe a sense
of habit and regularity and they start taking things seriously.
1.12 Duration of an SHG Meeting
he duration of the meeting should be kept at the
minimum required. The reason is the same as with
the timing of the meeting, i.e., convenience of the
members.
If the duration is too long, it may become boring and cause
undue stress to the women of the group because of their work
schedule either at home or at work.
Experience says that an hour is normally sufficient for
completing all the routine activities and formalities of a meeting.
A little discipline in this regard may yield better results. If the
members are encouraged to meet on a pre-agreed time and they
observe punctuality, waste of time in the form of late start of the
meeting can be avoided.
T
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Similarly, if the members have an idea beforehand of the
business they are supposed to transact in the meeting, it would
facilitate timely conclusion of the meeting. Time thus may be
saved at both the ends, when the meeting starts and when it
ends.
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1.13 Venue of an SHG Meeting
enue of the meeting is a sensitive issue in the
village or community, though in the beginning
it may not seem so.
During the initial stage of group development, the meetings may
be held at one of the members’ house. It does help the group to
be crystallized into an identity initially.
However, with the group getting more experienced it tends to
become an issue of dispute. The member at whose house the
meetings are held starts assuming weight over the others.
Therefore, it is advisable that the group starts looking for a
common meeting place. It may be a place like the local
Anganwadi Center, Village Panchyat building, Village School
building, or any common place under a tree or a shade.
Probable Venues for an SHG Meeting in the Village/Community
Anganwadi
Center
Village
Panchayat
Village School
A Place
under a Tree
House of a
Group
Member
V
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Defining Poverty
Poverty is a state of deprivation, which is complex and context
specific. This context may be diverse such as geographical as in the
case of specific pockets of poverty, socio-cultural as in the case of
poverty due to class and caste membership, familial as in the case of
birth in a poor family, or historical as in the case of changing
perceptions of poverty in changing times. Therefore, poverty is not an
absolute term but a relative concept related to the state of deprivation,
casting definite impact on one’s capability to decide the kind of life he
or she would lead. As the standard of a desirable life differs from
person to person, community to community, or time to time, so does
the extent of poverty attributable to a person or community, in case
the desired standard of life is not achieved.
Though the incident of poverty is a contextual state of deprivation, it
also has a universal face in the sense that societies of all types and all
times have experienced it in varying degrees. This is the reason why
we see attempts all around to define poverty in universal terms. A very
common mistake that we make while identifying poverty as a
universal and absolute phenomenon is that we mingle perspectives
and contexts of one instance of poverty with those of another.
In many cases, we find that people are poor just because they are
born in poor families. Likewise, some people are less privileged just
because they belong to more disadvantaged social groups such as
scheduled caste or scheduled tribe. Another example could be of a
wage laborer who is poor for the reason that his level of productivity is
much low in proportion to the burden he owns. Yet, another example
is of women who belong to a gender, which is considered inferior to its
counterpart. Hence, poverty needs to be defined contextually as also
relatively to other instances of poverty.
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EXERCISES
1. Encourage and help participants to find out a few examples
of social interactions or associations, which may resemble a group but not actually a group, and make a poster
presentation on that.
[Process: there are quite a few modes of social interactions or associations, which, though they resemble a group, are not actually a group as per the general definition of a group. For any
mode of social interaction to be called a group, it is necessary that it has the following five components. (i) Common goal, (ii)
members complementary to one another, (iii) Commitment towards the common good of the group, (iv) Comparatively stable membership, and (v) membership norms. Example of
social interactions or associations, which, though resembling group behavior but not actually group behavior, are many such
as a crowd, passengers, an audience, haat (market place), mela, group of onlookers, and the like. The trainer should also try to find which among the above five components are missing
from the example cited above.
2. You have already learnt that there may be different kinds of
group such as social group or economic group. This
differentiation of social and economic groups is based on the purpose a group operates for. Likewise, there may be other
types of groups based on factors like origin, composition, legal status, mode of interaction, etc. Try to find out more types of such groups with at least one example for each type.
[Process: A few examples of various types of group are: (i)
Pressure group- pressure groups are formed to safeguard the interests of its members by maintaining and exerting a constant pressure on those bodies which have the power to take a decision
in favor or against the concerned group. Examples are trade union, group of minorities, and pensioners’ society. (ii) Formal group- formal groups are those groups, which are registered or
have some legal status. Their norms are set and they have written memorandum and rules. Examples are political parties, NGOs,
Trusts, confederations of industries, etc. (iii) Informal group- informal groups are just the opposite of formal groups, having nothing set in writing. Examples are Kirtan Mandalis, orchestra
parties, etc. (iv) Natural group- natural groups are those groups, which are formed naturally such as family, species, etc.
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Membership in all such groups is almost fixed. (v) Action group- these groups are formed to safeguard the interest of certain
people or value by initiating direct or indirect action in favor the cause they are up for. Examples are Narmada Bachao Andolan,
Bachpan Bacho Andolan, etc. (vi) Affinity group- an affinity group is a group of people of same position in life. They are formed or on the basis of similarity of its members on a particular
account such as origin of place, profession, age group, etc. Examples are a group of immigrants, a group of the aged, doctors’ club, army housewives’ associations, etc. (vii) Self interest
group- a self interest group is such a group as benefits from its resources by sharing it among its own members. These resources
may be something material such as money or something non-material such as information. Examples are self-help groups, cooperative societies, pensioners’ societies, etc. The types of
groups mentioned above are not exhaustive, nor are they mutually exclusive.
3. Organize a game to demonstrate the advantage of organized
group effort.
[Process: you can ask and help members to play games such as “Memory Game” or “The Tiger and the Lamb”. The objectives of such a game is to show the advantages of cooperative group
action over individual action and to make them think about the value of working as a group. Necessary outlines of the “Memory
Game” are given here:] Materials required:
A bag containing about 20 local objects such as articles of
clothing, utensils, a reel of thread, books, pebbles, pens, etc.
Session Guide:
Begin by saying that you would like everyone to play a
‘memory game’.
Do not tell the participants the purpose of the game.
Tell participants that everyone should try to remember all the
objects as you put them back in the bag.
Put these objects in the bag one at a time and announce its
name while you do so. Give them a chance to see it, but do not go too slowly.
When all the objects have been put inside the bag, ask any one
person from the group to stand apart from the rest.
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The task before the members, which is same for the individual
member and the rest of the group, is to remember and recall the objects when asked.
The individual and the rest of the group will do the task
separately.
Ask the individual member and the rest of the group to sit at a
fair enough distance from each other so that they cannot hear each other.
Meet the individual member and write down her list.
Now, meet the rest of the group and note down its list of
recalled objects.
For a literate group, write the lists on newsprint so that they
can be compared.
Bring the individual back to the group. Read her list first. After
that, read the list of the rest of the group. Do not forget to compliment the individual member for her contribution.
Points for Reflection:
In almost all cases, the group will do better than the individual
on this task. Therefore, the facilitator must handle the situation in such a way that the individual member may not feel let down.
Unless the individual member has a very sharp memory, the difference between the two lists would be clear, or may be
sharp in some cases.
Steer the group to think and discuss on why the group list was
longer and what message it conveys about the strengths of a group effort.
Lead the group members to think about their own life and encourage them to analyze if they can do better as a member
of a group or as an individual.
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4. Organize a video show to demonstrate the poor condition of
women, emphasizing the complex socio-cultural context within which they live.
[Process: Screening of a suitable video on the poor conditions of
women followed by a follow-up discussion on the message of the show helps the members to get sensitized on the issue.]
5. Organize a structured group exercise to emphasize that
gender characteristics and relations are a social construct
perpetuated by values, institutions, and practices that can be influenced and changed.
[Process: Necessary outlines for organizing a structured group
exercise “Choosing The Sex Of Your Child” are given below:-] Session Guide:
The participants imagine that they are childless and a boon is going to be given to them provided they choose the sex of their
child.
Give each participant a paper and ask her to write down or
indicate the preferred sex of her child.
Also, ask them to write down their reasons for choosing a
particular sex.
Collect the papers. Put the result on the flip chart and list the
reasons.
Points for Reflection
Number of boys and girls
Reasons for choosing the sex
The effect of these assumptions
Implications of how male and female children are socialized
and treated to prepare them for the roles they play in society.
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6. Initiate a discussion in small groups to personalize the
experience of gender and gender based discrimination.
[Process: Discussion in small groups is useful in sensitizing the members on gender discrimination. For a discussion exercise,
follow the following process.] Session Guide:
Divide the group in to three small groups say A, B, and C.
Assign a task to each group separately.
Ask group “A” to reflect on the problems of a woman’s life
during the early stage, say from birth up to the age of 12 and make a list of those problems.
Ask group “B” to reflect on the problems of a woman’s life
during the next stage, say from the age of 12 up to the stage of her marriage and make a list of those problems.
Similarly, ask group “C” to reflect on the problems of a woman’s life during the next stage, say from marriage up to
the end of her life and make a list of those problems.
Tell each group that they are free to relate experiences from
their own as well as from other’s life.
Ask each group to make its presentation to the large group.
Points for Reflection:
Tell the group that a woman plays the role of a daughter, sister, wife, and mother during different stages in her life.
However, all these roles are discriminated in family and society against their counter roles played by men.
Prompt the group to think over the possible causes behind
women’s poor condition in and outside family.
Tell them that power structures created by a lopsided use of
muscle, money, and mental powers by men have pushed the women to the backseat.
Encourage the members to view their own role in and outside family.
Encourage them to think of a solution. One of the solutions could be to strengthen themselves economically.
Lead them to believe that they can do it.
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7. Demonstrate how a group experience is a powerful medium
for learning, adjusting, and expressing oneself in a social situation.
[Process: this is our common knowledge that a group is a powerful medium for learning, adjusting, and expressing oneself
in a social situation. In fact, all our behavior patterns in family or outside family are interactions in one group situation or the other. Examples of such group situations are family (where the
very process of socialization begins), neighborhood, community, school, workplace, etc. In spite of its being a common knowledge,
however, any intentional transference of it to a group of trainees would require a powerful medium in order that they not only come to know of it at the information level but also feel motivated
to form and sustain their own self-help group. One of such mediums is a case study (there could be many more mediums which you may think of). The case study “Sarala’s Story”
presented in chapter I can be used by the trainer for this purpose.]
8. Present a case study where a self-help group or any other
group takes up a wider community issue.
[Process: A self-help group in its basic function is a self-interest
group whereby it works to the benefit of its own members. However, when it takes up a wider community issue such as of
health and education, it acts more as an action or a pressure group whereby it provides an opportunity to organize and act pro-actively, not only in its own interest but also in the interest of the
community. An example of this is closing down of a village liquor shop by a group of affected women. Such case studies always
leave a very positive effect on its audience/reader and motivate them to organize and act on a similar line. An outline of a case study like this is given on the following page, which may be
developed and used in a training session.]
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n a remote village of Nellore district of Andhra Pradesh, there
lived a poor woman Sitamma whose husband was a drunkard.
Everyday in the evening, after his day’s work was over, he would go to a local liquor shop and drink there until late night. Thus, he used to lose all his earnings before he could reach home. Sitamma
was a member of an adult literacy group of the village and was thus trying in her own little ways to change the conditions of her
life. The condition of the rest of the members of the literacy group was hardly different from that of Sitamma. They came to know that being fed up with every day’s squabbles and conflicts with their
husbands quite a few women of the village even committed suicide. They wondered how the liquor shop is always replete with stuff whereas the government rashan shop lacked often the most
essential commodities. Slowly but surely, they realized that they themselves would have to do something in this regard.
One day a few of these women gathered in front of the liquor shop and put a pressure on the owner to shut it down. The shop had to
be shut down that day. This became a news and got spread in nearby villages like a fire in the forest. Women of other villages also
drew motivation from this incident and before long, many women’s groups came to the fore to tackle this menace in their own ways. In one of such case, women of a particular village prepared food and
took it to the liquor shop owner where they vigorously asked him to eat it all. They told him that for so many long years he had snatched food from their mouth; therefore, now he must entirely
swallow it himself. This frightened the liquor shop owner. He closed down the shop and ran away. In a short time, this turned
into a movement and spread not only in south India but also in other parts of the country. Thus, what the administration and the social workers of intent could not do in so many years was done by
a group of women who looked naïve but firm and committed to their intention and will.”
9. Organize a poster presentation on factors promoting group
cohesiveness such as size and composition of group, and timing, frequency, duration, and venue of group meetings.
[Hints: Poster exhibition renders a joyful learning experience with
possibility of fast and deep-rooted learning. It also provides a welcome variation to routine learning sessions. For a session on poster presentation, divide the large group into smaller ones and
assign each group a separate theme to prepare a poster. Materials
I
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34
required for a session on poster exhibition are poster papers and color/sketch pens of different colors.]
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35
CHAPTER 2
Pre Group Formation Steps: Gaining Trust of the Community
ormation of women’s self-help group is a dynamic but slow
process as it deals with poor women living within a
complex socio-cultural context. Therefore, an understanding of
the various steps involved in the group formation process is
necessary to form self-sustaining and self managed groups. A
basic skill required for workers forming SHG is verbal
communication in the local language, which the group members
are comfortable with.
The initial steps required before the actual group formation
process begins are the following.
2.1 Situation Analysis
ituation analysis refers to the background preparations for
initiating a project on SHG formation and development. It
is a tool to understand the environmental context within which
the SHG or the development project has to be conceived and
implemented.
Before all other things, a development agency has to decide
about the geographical area where it would like to work over a
period of time. This choice depends on many things such as the
agency’s mandate, its expansion plan, needs of the area, donor’s
interest, etc.
F
S
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When the choice of the geographical area has been made, efforts
to gather detailed primary and secondary data on that area fall
due. Situation analysis thus helps in choosing a village,
community, or a project area and paves the way for the agency’s
entry into the project.
Various dimensions within which a community exists are
examined in a situation analysis exercise. They include the
local
► Political and administrative structure,
► Demographic features,
► Economic activities,
► Social stratification and power relations,
► Organizations and their functions & activities,
► Leadership pattern and its influence,
► Cultural facets or traditions,
► Health, sanitation, and nutrition levels,
► Education,
► Critical issues and problems affecting the community.
Within the specific context of an SHG formation and
development project, a situation analysis of a particular
community will include a livelihood analysis of the people
depicting their occupation, socio-economic status, mechanism
with which they cope with seasonal lean patches, potentials for
a ‘savings and credit’ program, extent of indebtedness and credit
needs, etc.
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37
Such an exercise not only provides the development agency with
valuable data for planning strategies but also enables it to get a
foothold in the local area, which is the first step towards
building trust.
2.2 Rapport Building with the Community
Members
ith this exercise, the process of group
formation actually begins. Earlier exercises
were only unilateral, mostly at the level of the
agency and without the involvement of the
community members.
Rapport building is a focused interaction of the agency with the
village and community members, the aim of which is to
strengthen the process of group formation in the near future.
Without proper rapport building, which forms the basis for
mutual trust, there can be no viable group formation.
Once a village or community knows the members and workers
of the agency and their program, it becomes easier to initiate
and launch the planned intervention. Rapport building is also
an exercise to understand the problems and needs of potential
group members.
Experience has shown that when community groups are formed
only to achieve the goals of the agency without addressing to the
problems of the members, they wither away once the agency
withdraws.
W
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Hence, rapport building is not only required to gain the trust of
the community but it is also required to secure empathetic
understanding of the community’s problems and needs.
Far better would be to develop a relation of mutual trust
between the agency and the members of the community right
from the beginning.
By rapport building, it is also made clear that the agency has a
primary interest in the lives of the members and their long-term
benefit.
At the same time, they may also be made to understand that the
actual change in their life will come about only when they
organize and actively participate in the change process with
members and stakeholders. Group formation is the first forward
step in this direction.
Initially, informal contacts are made on personal level with the
local facilitators such as community leaders, tribe heads, school
teachers, PRI members, local key informants, etc., which helps
to gain acceptance of the agency by the village/community. In
those introductory meetings, the agency projects its image and
shares general information about itself.
All these meetings provide opportunity to gather information on
the basic nature of the community and its members. They also
facilitate the forging of lively relationship between the agency
and the community, needed for a collaborative action.
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39
2.3 Conducting PRA Exercises
In spite of the initial steps outlined above, the agency remains
at the periphery of the community until it holds a series of
meetings with small groups of potential members, especially the
women in specific neighborhoods where SHGs are to be formed.
There is, however, a strong likelihood for the agency to be led by
the local facilitators’ choice of selecting group members, who
may not be the right representative of the poorest within the
community. Where the objective of the project is to work with
the poor, it is essential that initial meetings be held with the
groups of the poor. Usually they are less heard, hence less
responsive in attending to early meetings. Non-attendance by
community members may also be analyzed to ensure that the
proposed group members truly represent the target group.
Therefore, it is desirable that the agency makes its own
assessment of the community members present in such
meetings. The more homogeneous socio-economic status of the
group members, greater would be the chances of the group to
sustain and succeed.
In case the community or village is large, the field-worker may
conduct a proper survey or apply PRA tools such as Wealth
Ranking, etc. and avoid going by his/her hunches.
This is a critical initial step indeed, as the specific members
forming a group largely determine the future shape and
survival of an SHG.
Chapter 7 of this manual provides further guidelines on using
PRA tools.
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40
2.4 Meeting with the Members of the Target
Community
These initial meetings with the prospective group members are
an opportunity for the field-worker to win their trust and at the
same time outline the purpose of the project and the rationale
lying behind. Benefits accruing to individual members forming
the group also get a chance to be highlighted simultaneously.
A few of the suggested activities for these initial meetings are ––
To help the members introduce themselves in a group setting.
To initiate a discussion among the members on issues such
as livelihood systems, income and expenditure patterns,
health needs, and other problems permeating their day-to-
day life.
To discover their savings habit, credit needs, sources of credit
available, rate of interest they have to pay, and the terms of
repayment, etc.
To explain how they can themselves cerate their own
common fund by saving small amounts of money every week
or month and thus reduce their dependence upon outside
credit sources.
To fix a date and time when the potential group members
could meet next.
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41
Women as a measure of preference may be encouraged to form a
group of their own to canalize saving and to plan self-help
activities.
The agency should spell out its role and scope of participation
for future meetings and must allow interactions with the
members to continue unabated.
At the end, a tentative list of the group members should be
prepared for follow-up action. The foundations of a women’s Self
Help Group, consequently, are laid.
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42
EXERCISES
1. You have learnt in the preceding chapter that situation
analysis is a tool to understand the environmental context within which the SHG or the development project has to be
implemented. To help participants conduct a situation analysis in their own respective field, hold a session or two,
which may impart them necessary skills for doing so.
[Process: components of external environment such as social,
economic, political, cultural, educational, and demographical, can have a dramatic and important impact on the implementing
development agency’s successful operations in a community, which may even impede its continued presence there if not understood and handled properly. Therefore, it is necessary that
before field workers actually go on board for organizing self-help groups, they make an analysis of the community from various angles such as the socio-economic status of the members, their
resources, their potentials for savings, credit needs, etc. Information collected from such scanning exercises can be
classified in to the following categories.
Categories of Information Instances
1 (Example) 2 3 1. Threat (An unfavorable
situation which tends to
affect the performance of
an implementing
development agency)
In a neighboring village,
people’s bad experience
with an outside agency,
which decamped with
members’ deposits.
2. Restriction (A situation
which limits the operation
of an implementing
development agency)
Inhospitable geographical
conditions like a
mountainous terrain or a
desert area. Presence of
another outside agency which is non-serious in its
approach.
3. Problem (A situation
which requires an
adequate solution to
prevent it from becoming a restriction or threat)
A stratified community
where people are very
much divided on the lines
of caste and creed.
4. Negative Symptom (A
situation which allows for the forecasting of a
problem, restriction, or a
threat)
A village or a community,
which has a high prevalence of alcoholism
among men or a strong
‘Pardah system’ among
women.
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43
Categories of Information Instances
1 (Example) 2 3 5. Neutral Variables (A
temporary neutral
situation, but with the potential of becoming
positive or negative)
People are politically
active.
6. Positive symptom (A situation which permits
the forecasting of a
stimulus or opportunity)
Responsiveness of local community leaders.
7. Stimulus (A favorable
situation that can be
transformed in to an opportunity)
The formal community
leader, say ‘Pradhan’,
‘Mukhia’, or ‘Sarpanch’, is
a woman and is
responsive as well.
8. Opportunity (A favorable
situation that can
positively affect the
performance of the
organization)
People already have a
good experience of a
similar project in the past.
Following structured learning sessions should be organized by
the trainer to orient field workers in the know-how and techniques of conducting a situation analysis.
Session - I
Objectives
To identify the characteristics of a target
community.
To decide what information is needed to understand a specific characteristic of the
target community.
Time
One and a half hours
Materials
Black/white board,
Chalk
Felt pens,
Newsprint,
Writing paper
Learning
Method
Brainstorming
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44
Session Guide:
Instruct the participants to reflect on the community they are working with and note down (individually) on paper what each
one should know about that particular community as a field worker (e.g., number of families, leadership in the community,
Political and administrative structure, demographic features, economic activities, social stratification, power relations, etc.). Ask them to make the lists as comprehensive as possible.
Direct them to get into pairs, review each other’s lists, and then compile a common list.
Instruct them to form groups of four and develop a group list after discussing the two lists they already have. Ask them to
put the list on newsprint. Get each group to select a spokesperson to present its list to the entire group.
Reassemble the groups. Invite the spokesperson from each
group to present its list.
After each presentation, encourage additions, comments, and questions from participants. Allow enough time for discussion.
When all presentations are complete, display the lists in front of the group and prepare a common list by deleting, modifying,
and combining items. Try to reach group consensus.
Note to the Trainer
Ensure that the list includes the following items
Political and administrative structure,
Demographic features,
Economic activities,
Social stratification and power relations,
Organizations and their functions & activities,
Leadership pattern and its influence,
Cultural facets or traditions,
Health, sanitation, and nutrition levels,
Education,
Critical issues and problems.
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45
Pose the question to the group, “What information is needed to
understand these characteristics of the community?” Select a single characteristic from the above list. Brainstorm for ideas and write them down on the board or newsprint as they are
presented (e.g. types of livelihood sources, credit need, local sources for credit).
Once all the ideas are exhausted, review the responses with the group and reach a consensus on the major items. Indicate
to the participants that a long list is not necessary as this is not a detailed study on the topic.
Repeat the same procedure with a few other selected items.
Conclude the session by highlighting the main points.
Session - II
Objectives
Identify sources of information and data for
understanding the community.
Understanding the advantages and disadvantages of different techniques in
collecting information and data.
Assess the effectiveness of selected techniques in gathering information and data.
Time
One and a half hours
Materials
Black/white board
Chalk
Felt pens
Newsprint,
Writing paper
Learning Method
Creative Reflections
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46
Note to the Trainer Ensure that the sources include items from the following list
Documents or files in government offices/NGOs,
Reports or surveys pertinent to the topic,
Community members (a sample),
Informal leaders in the community,
Senior citizens
Government officers or formal leaders,
NGO personnel,
Politicians, central or local government
representatives.
Session Guide:
Direct the participants to review the final list, which they prepared during the session on situation analysis to identify
the characteristics of the target community and the information needed to understand a specific characteristic.
Thus, select a list prepared for any one characteristic such as the economic activity of the people.
Ask the participants to identify possible sources of information
to know the economic conditions of the people of the community.
Write down their responses on the newsprint/board. Encourage different viewpoints. Allow sufficient time to
exchange ideas and clarify issues.
Discuss and complete the list.
Ask the group, “How can we get information from the above sources? What sort of methods or techniques could we use?”
Brainstorm and write down the ideas on the board.
Discuss and complete the list.
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Divide the participants into three groups. From the techniques
identified, assign three or four techniques to each group. Instruct each group to discuss the advantages and limitations of each of the techniques assigned to them.
Reassemble the group. Request the spokesperson to present their lists. Allow time for comments and criticisms.
Summarize the discussion. Make sure that the important ones are stressed.
Note to the Trainer
Ensure that the following methods are considered:
Documents review,
Questionnaires,
Focused group discussions,
Interviews,
Observations,
Listening to people
Brainstorming sessions,
Informal conversations.
Important Points to Remember when
Collecting Information from the
Community
No single technique is appropriate to get information from all the sources.
The best option is to use a variety of techniques,
wherever and whenever possible.
The most common techniques are questionnaires, interviews, and observations.
Group discussions (also referred to as ‘focused
group discussion’) are also frequently used.
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2. Demonstrate the importance of developing trust among
participants by generating an experience of it in them.
[Process: A few games such as ‘Trust Walk’ or ‘Individual Fall in a Group’ are quite effective in enhancing trainees’ understanding on the need for mutual trust in any bilateral relationship.
Necessary steps to organize the game ‘Trust Walk” are give here:]
Session Guide:
Chalk out a long path that contains plenty of obstacles and
difficulties e.g. stones, steps, doors, benches, bushes, etc.
Ask each one to select a partner from the group and form
pairs.
Blindfold one partner from each pair.
Ask the other one to guide the blindfolded person through all
the obstacles placed on the way, and take her to the goal.
Ask the blindfolded person then to return to the starting point
without any help.
Points for Reflection:
How did you feel during the walk blindfolded?
How did you feel about being totally dependent on your
partner for your safety?
Were you confident about your partner?
Did you mistrust her? Why?
How did you react at various difficult points during the walk?
Discuss elements of trust between people, dynamics of trust and non-trust positions.
3. Organize a session to highlight the need to secure the trust
of community people, while being involved in an
empowerment process.
[Process: Developing mutual trust is essential for a fruitful partnership between the development agency and the community. It has been found generally that the community people, in their
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49
first reaction, are suspicious of outside visitors, especially of those who are new or stranger in the locality. This shred of doubt
may remain until they do not become sure of the development agency’s good intentions as professed by the field-worker and
reflected in his/her mannerism. However, it is equally counter productive to raise undue expectations in the people for gaining their trust because when such expectations are not met, people
lose faith and everything goes haywire. A field-worker, therefore, needs to be careful while gaining entry into the community, as much of future development would depend upon the successes in
gaining people’s confidence in a realistic way during these initial meetings. As a trainer, therefore, you need to emphasize to your
trainees the importance of building trust as a stepping-stone to all future collaborations with the members of the community in general and with the members of the self-help group in
particular. Enacting a mock community meeting would help the trainees to develop important insights into the matter. Outlines of
such a mock meeting are given below which you may further develop or use as such in your training session.] Session: A Mock Community Meeting
[Scene of the courtyard of a “village pradhan’s” residence where a meeting, organized by the field workers of a development agency
to express their plan and willingness to work in this village, is about to begin. This meeting is also being attended by a few other
community members and local leaders. Village pradhan welcomes the field workers and introduces them to the rest of the people present in the meeting. He then invites the field workers to say
something about their agency and the program for the village. Field workers thank the village pradhan and others present.]
FWs: We are ‘X’ and ‘Y’ from ‘Gram Vikas Sansthan’ and are planning to begin our work here.
VP: What work, sir?
FWs: Well, we are a social development organization and we promote poor women’s self-help groups by mobilizing and training
potential members. VP: That is a good idea. But sir, how do you motivate people to
become members? Do you give any grant, loan, or subsidy to them?
FWs: Well, (after looking to each other) we may, sir! It depends upon the progress of the self-help group.
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(FWs = Field Workers; VP = Village Pradhan)
Questions to be Raised During the Debriefing Session:
What did you see in the scene?
Do you think the field workers made any mistake while telling
the village pradhan about the way they motivate people to form their own self-help groups?
What mistake did they make?
What impact will it have on agency’s future prospect in the
community?
Note to the Trainer:
Commencing your work on a wrong foundation is always liable to backfire. Tell the participants that there is no shortcut to gaining
the trust of people. Being patient, straightforward, and honest to one’s intentions is the only way to succeed in this. Making
promises such as of a grant, loan, or subsidy, which are not meant to be fulfilled, would only drive people away from the real objective of the program, that is, their empowerment through
collective action and self help.
4. Simulate a group situation through a structured group
exercise to highlight the fact that the poor are less heard and often initially less responsive in attending early meetings
with the development agency.
[Process: the poor within a community act as a subgroup to the larger group and hence, are guided by their own perceptions of power structures rooted in class and caste divisions around
them. Often this acts as an obstacle to the foundations of a self-help group, which, as per the objectives of the project, should be representative of the poorest within the community. Use of a
structured group exercise is a useful way in helping the trainees understand the importance of being empathetic towards the
needs of the marginal community members while mobilizing support for a self-help group. Outlines of such an exercise are given below.]
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51
Session Guide:
The trainer divides the group of participants into two sub-groups A and B. ‘A’ is the poor sub-group, which consists of
poor members whereas ‘B’ is the better-off sub-group, which consists of better-off members of a self-help group.
The trainer himself plays the role of a field worker, who is holding a meeting with the potential members of an SHG
consisting of the members of sub-groups ‘A’ and ‘B’.
The task before the group is to decide the name of their self-
help group.
Before the start of the exercise, the trainer tells the sub-group
‘A’ separately that they are the better-off members of the group; hence, they are supposed to take a leading role in all the activities of the group. He also says that he himself will
side with them.
The trainer gives both the sub-groups (‘A’ and ‘B’) ten minutes’
time to think over a name.
After the time is over, the trainer, who is acting as a field
worker, asks both the sub-groups to reassemble. He then invites the members of both the sub-groups to suggest a
name.
He deliberately encourages the members of sub-group ‘B’ more
that those of ‘A’ and clearly shows his favor for ‘B’.
After that, he gives five minutes’ time each to both the sub-
groups to put three reasons as to why they think the name of the group should be that.
In the end, he purposely votes for the name suggested by the
group ‘B’.
Questions to be Raised During the Debriefing Session:
Is sub-group ‘A’ happy with the selection of the name for their
SHG?
Do the members of ‘A’ think that the field-worker showed
partiality in handling the situation and did not give them sufficient opportunity and support as compared to ‘B’?
What did they do for making themselves more assertive?
What the members of ‘B’ did to ward off the partiality shown
by the field-worker in showing his preference for ‘B’?
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52
Whose responsibility is it to encourage, help, and support the
marginal members of the group for taking active participation in group meetings and tasks?
Points for Reflection:
The trainer has to emphasize that in the group formation process
the role of the field worker, more than anyone else, is to see that the marginal among the potential group members from the community are encouraged and motivated to participate in early
group meetings so that the objective of the project to work with the poor is met. Because the poor are less heard, they also tend to become less responsive out of their low morale and feelings of
various insecurities. The better off members, showing natural human tendencies to outrun others, will always act competitive
and dominate over the less privileged ones. Therefore, it is the agency people, and in the field situation, it is the field workers, who have to ensure that the group is representative of the poorest
within the community. For this, he may even have to sensitize other community and group members towards such a need.
5. Organize a session to promote the participants’ self-
awareness and confidence, especially of the poor and withholding members, in expressing themselves in a group
situation.
[Process: helping the participants to get in touch with one’s inner
self is one of the techniques which has been successfully used in various training programs to build a sense of worth and self
esteem in rather shy, withholding, or non-active community members. Lack of willingness in such members to attend meetings during the early stages of rapport building is, in most
cases, a result of various complexes in their life situations as well as within themselves. Organizing a session where they can unwind themselves and come face to face with their own inner
values, inhibitions, and aspirations can be very refreshing. It can help them to have a better understanding of their problems, as
well as potentials to overcome them. An outline of such an exercise (known as the game “Who Am I”) is given below, which you can use in training sessions.]
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Session Guide:
Explain to the participants that they will be thinking about
themselves and what is important to them. We need to know ourselves better before we can solve our problems in a better
way.
Tell the participants that they are going to play a game called
‘Who Am I’.
Divide the participants into smaller groups of five or six.
Meet each group separately and instruct them to think of all the possible identities they have or all the roles they play in
their everyday life, like that of a teacher, a mother, a wife, an aunt, a worker, etc. Explain that the teams will then compete
to see which team thought of the most.
After the members have thought over it, write down the
identities of each member of smaller groups separately.
After all have responded, once again ask all the members if
they would like to add to the list. The team with the longest list would be the winner.
Start a discussion in all small groups on what they do and
how they live.
Questions to be Raised During the Debriefing Session:
Which of these roles did you choose yourself?
Which roles, however, were given to you?
What are some of the things you do in your different roles?
Which roles you like and why?
Which roles you do not like and why?
Could you change these roles?
Is there any other role, which you would like to do? Why?
Points for Reflection:
Make participants feel appreciated for many things, which they are and they do. Show your appreciation for the different roles, which they have to play and manage in their every day life. Point
out to them that there are some roles in which they have choices whereas there are others in which they don’t; however, there
always is a way to make things smoother and better.
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6. Organize a few games and activities, which help participants
introduce them in a group setting or relax in between sessions.
[Process: there are a number of games, icebreakers, or energizers, which you may use for such purposes. A few of them are given
below.]
1. Relay Game
The person who begins the game gives her name. The person next repeats the first name and adds on her own. The third person mentions the first two names and then adds on her
own. The process continues until the last person mentions his/her name along with the names of all the group members.
The game can be made more interesting when along with the name, the person does an action, which gives a meaning to
her name and the action is repeated along with the name.
2. Yes-No Stones
Each participant starts with five stones, or seeds, or whatever
is available. The players circulate around the room asking each other question and making replies. However, the rule is
that players must not use the words ‘yes’ and ‘no’ in any of their replies. Whenever a player succeeds in ploying another into saying ‘yes’ or ‘no’, she gives that player one of her stones.
The first player to get rid of all her stones wins the game.
3. Keep It Up
Participants are divided into groups of 5-6 each. All are asked
to stand with their respective groups. Each group is given a balloon. When the trainer gives a signal, all the groups throw
their balloons up in the air. Each group must keep its balloon up in the air as long as possible by blowing at it. no touching of the balloon by hands or any part of the body is allowed. The
group that keeps the balloon up until the end is the winner.
4. Mrs. Mumbley
All the participants sit in a circle. One of the participants asks the following question from the participant sitting on her right: “I am looking for Mrs. Mumbley, have you seen her?” The
participant who is asked replies: “No, I haven’t. But I will ask my neighbor”. And she asks the same question from her neighbor sitting on her right. This way all the participants do
their turn. However, the rule of the game is that while
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speaking, no one can show her teeth. Thus, everybody attempts not to show the teeth while speaking. This creates a
lot of fun and laughter among the participants and they feel light and relaxed.
5. Uncle Says
Participants spread in front of the trainer. The trainer orders the players to do various actions, such as touching their toes
or raising their arms. However, there is one condition: if the trainer begins the order with the words “Uncle says” then the participants must obey the order. If he does not begin the
order with these words, then the participants must not do the action. If any participant makes a mistake, he is out of the
game.
6. Hit Me If You Can
Participants sit in a circle. One volunteer comes to the center
with a stick of paper. He then goes to hit any one of the participants with the paper stick. That participant is supposed to take the name of any other participant before he is hit. If he
does so, the volunteer can not hit him but has to go to the participant whose name is taken. Now, the referred participant
will take the name of another participant before he is actually hit by the volunteer in the center. If any participant is unable to call another name before he is hit, then he is out from the
circle and has to volunteer in the center in place of the volunteer who hit him.
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CHAPTER 3
Stages of Group Development
he self-help group’s form, stability, and
future performance depend upon the way
it develops and evolves. As the development
of an SHG is a people intensive and process
oriented activity, at each higher stage of group development, the
role of the field-worker assumes importance, and at the same
time requires a role shift.
One may ask as to how many stages a group passes through
during its course of development, and what actually we mean by
the term “development” in the context of a group.
Development is an ever-ongoing process, be it of a group or
anything else, and hence, its segmentation in stages is only for
the sake of a better understanding of it. As we divide time into
hours and minutes, so we may divide the group’s development
process into different stages.
The course of a group’s development is determined, on the one
hand by the inflow of certain inputs from the agency and, on the
other hand, by the group’s learning response to it.
The process of development of a group is a function of the
following factors:
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Assessment of the learning needs and objectives of the group
by the agency.
Flow of inputs from the agency to meet the learning needs
and objectives of the group, and
The learning responses from the group, i.e., how well and
quickly the group learns the required skills and behavior
pattern which are necessary for its functionality and
sustainability. This is illustrated in the following diagram: –
Figure - 6
In the following sections, a suggested process model for
development of a group is given for the readers to either adopt it
as it is or tailor it as per their requirements. For each stage, the
behavior of the group and the activities to be facilitated have
been outlined separately.
Assessment of the
learning needs of the group
Learning Response
form the Group– how well, how quick
Process input flow
from the agency as
per the learning
needs of the group
2
1 3
Factors
influencing
group develop-
ment
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3.1 Initial Stage of Group Development
his stage of group development begins with the first meeting of
the group. In the normal course of development, it should not go
beyond two-three initial meetings held over a month.
Group’s Behavior
At this stage, the members are very tentative in their motivation
in forming a group and find it difficult to relate to the group.
They have hidden doubts about the group’s objectives and the
motives of an external field-worker. They even fear ridicule at
the hands of their relatives and neighbors. They also find the
idea costly in terms of investing their personal time and money
to a venture whose future returns are collective and uncertain.
Process to be Facilitated
All the activities during the early stage of the group building
process is directed towards seeding the idea of self-help in the
members and motivating them to form their own self help group
around some common resource pooling idea (such as group
savings). It is important that they also understand and analyze
the causes of their poverty and indebtedness through focused
group discussions facilitated by the agency’s field worker. The
field-worker, therefore, should take-up the following issues for
discussion at group meetings in this stage: –
Discuss with the members, the cause of their poverty and the
interplay of low income and high indebtedness among them.
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Discuss the problems of borrowing money from the local
moneylenders both in terms of financial cost and loss of
dignity.
Discuss the status of women with regard to their
contribution in domestic and wage labor vis-à-vis their low
income and the invisibility of their work/output.
Explain to them the concept of collective self-help, the
advantages of regular savings in a common fund as a means
of self-help, and how they can realize their strength as a
collective.
At this stage, the women need to be made aware of the fact
that the savings activity is actually a means to their socio-
economic empowerment and not an end in itself.
Explain to the members that they can save a little despite
their low income. Convince them that a little amount of
saving need not be always sourced from a surplus income
but can be generated from within their existing means.
Explain that their savings remain with the group and they
manage it by themselves. Create a faith in their ability to do
so.
Facilitate them to give a name to their group, which
enhances group identity. Get them to finalize a date from
when to start savings activity. To begin with, suggest a low
amount of money for regular savings. The amount should be
the same for every member and it should be kept low enough
for the poorer members to save and join the group.
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The above process will take a fairly long time, especially if the
groups being formed are the first ones in the area. Time needs
to be given to the group to appreciate the positive aspects of
working together. It is often useful at the end of this period to
choose a leader from amongst the group through an informal
election process by the members.
3.2 Intermediate Stage of Group Development
his is the stage of group development when the members
have just started pooling in their savings in a common
fund. However, as the practice of saving is only at its elementary
stage, and not yet stabilized, care needs to be taken by the field-
worker to consolidate this development so that the practice
takes deeper roots. In an ideal situation, this stage should not
stretch beyond a period of four to five months.
Group’s Behavior
The group’s behavior at this stage starts becoming positive
towards the field-worker and the members start linking
themselves to the objectives of the group. At some point of time
during this stage, rotation of the group fund begins as the
members start coming up with a demand for a loan or ways to
use the money saved collectively by them. However, it is
advisable to make the group save for at least six months to
ensure that the practice of savings becomes a normative
practice within the group and the group members are able to
actually see the money saved accumulating into capital. This
gives them confidence as a group.
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In between the initial meetings, there is always a talk in the
community and among the members about the group. There is
often an element of disbelief or amusement among the male and
elderly members of the community about the initiative. There is
also possibility of rumors spreading about the malafide
intentions of the agency. So, there is a likelihood that some of
the members drop out from the group and some new ones join.
Such responses are found more in those cases where the
community did not have any experience of a self-help group
before.
However, as the time passes and the group has had more of
meetings and interactions, their early skepticism ebbs out.
A few of the members may now start showing some expectations
from the agency such as some grant or loan. Likewise, they may
seem very much worried about the fate of their own
savings/contribution. This is a very critical period within a
group’s development and the agency needs to take a series of
steps to counter this, as most groups may disintegrate during
this stage.
Process to be Facilitated
Organize one or two community meetings with the help of
local facilitators to remove any misconception among them
about the ongoing program and its activities, and to mobilize
wider community support.
Repeatedly, explain to the group the actual role of the agency
in all these activities, which is that of a facilitator and
enabler and not of a grant provider so that misconception, if
any, may be cleared at this stage itself.
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Make home visits to the members who have dropped out, or
to those who need any extra counseling about the group’s
activities.
Train the members on the functional aspects of group
behavior and management. For example, facilitate their
understanding on the necessity of leadership and democratic
group norms, role of participation in group transactions and
collective decision making, establishment of group norms to
manage finances, etc.
Identify natural group leaders. Encourage backbenchers and
fence sitters so that they may open up and participate in
group activities. Employ a few group exercises and games to
break the reservation of withholding members.
Explain to the group the role and functions of group leaders
and facilitate their selection through consensus, nomination,
or election.
Help the group spell out the role and responsibilities of its
leaders/office bearers.
Facilitate the group to establish group norms with respect to
a number of issues such as: -
► Timing, frequency, and venue of group meetings
► Selection and rotation of group leaders
► Amount of regular savings by the members
► Mechanism of on-lending among the members
► Membership norms for bringing in new members.
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► Termination of membership
► Issues like absenteeism, late attendance, etc.
Also explain the importance of maintaining group records
such as membership register, attendance register, minutes
book, and savings register. Introduce these records in the
group as and when they are required.
Identify someone in the group to write and update the
records. If there is no literate woman in the group, ask the
members to identify one in the village who can function as
the accountant to the group.
Inculcate in the group the practice of updating summary
records like total savings, total revolving loan, income
through interest, etc. after each meeting. This may preferably
be done on a black board discernible to all. Such practices
promote transparency in financial matters.
Facilitate the purchase of necessary things for the group like
stationery, cash-box, etc.
Facilitate the group to open an account in a nearby bank.
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3.3 Mature Stage of Group Development
his is the stage when the group is already on its way to
settling down in things like membership pattern, financial
and administrative norms, transactional norms, etc. It also
shows steadiness in its practice of savings and loan rotation.
At this stage, consolidation work needs to be done by the field-
worker so that the group may further become mature and self-
sustained.
This stage being over, the group should be at the end of its first
year of existence.
Group’s Behavior
During this stage of development, things do not happen as fast
as they happened earlier. The initial curiosity and drive of the
members seem to subside a bit as a natural outcome of frequent
meetings, longer learning sessions, and the achievement of the
immediate goal of the group, i.e., formalization of group norms.
The group wants some change and do something new.
The phenomenon of sub-groupism enters the group at this
stage. Sub-groups (which are a collective of a few members
within the group based on their previous relationship outside
the group) try to compete with one another in influencing the
field-worker and the rest of the group members for necessitating
certain decisions in their favour. Depending upon their alliances
outside the group, the elected leadership is either supported or
challenged by the sub-groups.
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All these internal pushes and pulls are actually a sign of
members’ active participation in the group development process
and are natural. The initial sub-groups based on the outside-
the-group alliances however usually break giving way to a new
relationship based only on their stake in the common objectives
of the group. At this point of time, the group’s leadership
pattern and group norms are tested and may need change
through the agency facilitation.
The group members start showing interest in different group
tasks and gradually develop a deeper understanding of the
status of the group vis-à-vis their own individual role. Their
adherence to the group norms increases and so does the
demand for initiating new income-generating or other allied
activities that could further benefit them.
Process to be Facilitated
Organize a few interesting group based activities and training
programs, to enliven the group’s spirit and promote greater
cohesiveness.
Organize a visit of the members to a nearby self-help group,
which is operational in an ideal way. This will provide the
members a gainful learning experience as well as a change
from their routine activities.
Organize skill building training programs on subjects like
fund operation and financial management, leadership
development, record keeping, program planning, financial
monitoring, negotiating with public systems like banks and
local government authorities.
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Emphasize in your training sessions the need for correlation
between individual and group goals and the ill effects of sub-
group associations.
Organize training programs to enable the members to
understand important group processes like participation,
communication, leadership and decision-making, and
conflict resolution.
Depending upon the demand and its repayment record,
facilitate outside loans to the group.
Initiate the group’s linkage with banks for accessing credit
for the group fund.
Encourage a discussion among the members on various
income generating activities/social activities, which the
members can do collectively.
Facilitate the group to prepare a long-term plan and arrange
training sessions on the management of new activity chosen
by them.
Reduce the frequency of the field worker’s visits to the group
gradually.
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3.4 Phasing out Stage of Group Development
his is the stage when the group has stabilized as a cohesive
unit and gained enough self reliance in managing its own
affairs and activities.
The group is also expected to develop financial sustainability by
this stage. In case it is a micro-enterprise based group as well, it
may take some more time to become self-sustainable. This is so
because it has to depend on many external factors like capital
mobilization, procurement of demand for its goods and services,
procurement of raw material, operationalization of the
production process, marketing of goods or services, etc.
Whatever type of a self-help group is, this is the time when the
agency needs to operationalize its phasing-out strategy.
Phasing-out is a strategic need for the project to enable the
group to function in a self reliant and mature way. It is a
weaning process whereby the agency reduces even its advisory
role to the group to the bare minimum and, depending upon
factors like nature, resources, strength, maturity level, etc. of
the group, this may take 6-12 months to complete for each self-
help group.
Group’s Behavior
At this stage, the behavior of the group becomes more focused
and stable. Individual differences based on out-of-the-group
alliances do not surface in their collaborative effort as members
of a group. This is because of the realization of the fact that in
an optimally functioning group, each member’s interest is
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directly or indirectly supported by the other member’s interest,
i.e., the mature group has a greater congruence between the
individual and the group interest.
Attendance in the group meetings is consistently high and there
are few members holding back from participating in the group
activities. A few of the important changes in the group and in
the individual members that characterize the self help group
attaining maturity in their respective capacities are shown in
the following table: –
S.N Characteristics of a Mature Self Help Group
Changes in the Members’ Behavior
1. Transparent and democratic
leadership.
Responsible behavior as a
member of group.
2. Enhanced ability to take
collective decisions
Keen to participate in all group
tasks, decisions, and activities.
3. Enhanced ability to resolve
intra-group conflicts and
differences.
Better able to correlate between
the individual and group goals.
4. Enhanced adherence to group
norms in all matters.
Able to meet requirements for
credit rotation, savings and
other needs of group based
activities.
5. Better maintenance of the
group’s accounts; able to
anticipate financial needs,
and plan actions to meet
them.
Increase in income/welfare in
the case of members.
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S.N Characteristics of a Mature
Self Help Group
Changes in the Members’
Behavior
6. Self-reliance in socio-
economic matters, least
dependence on the promoting
agency.
Gains a say in the family’s
socio-economic matters and
takes important decisions.
7. Identity in the community as
a social entity.
Gains self-respect and dignity
in her family and the
community.
8. Productive linkages with
outside agencies like bank,
NGOs, PRIs, govt.
institutions.
Gains confidence to interact
with outside people and
institutions.
Process to be Facilitated
Facilitate a performance review exercise in the group and
help the members analyze their achievements and failures.
Help the group to take on a long-term planning exercise for
ensuring its socio-economic viability in future.
Encourage the group to relate itself to the larger community
issues around them. This will broaden its scope of
functioning and win them the favor of the community.
Organize refresher training for the group around the subjects
of leadership, group management, record keeping, program
planning, and financial monitoring.
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Help the group in its registration process if it so decides or if
it is in the interest of the group’s proposed future activities.
Share the agency’s phase-out plan with the group. Apprise
them of its probable fall-outs, both positive and negative.
Explain to them why it is necessary for the agency to pull
itself out and how it is in the interest of the group itself.
Reduce your field visits accordingly.
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EXERCISES
1. Hold a session to motivate the potential group members and
seed in them the idea of self-help.
[Process: during the early stage of group formation, members are normally very tentative and hesitate to associate as a group. They may have various reservations also about the idea of self-help. All
the activities during the early stage of the group building process, therefore, should be directed towards motivating and mobilizing the potential group members and seeding in them the idea of self-
help so that they may relate their individual objectives with those of the group and as a result, recognize the importance of
collective effort. Methods like story telling, case presentation, or citing examples
from our surroundings such as the Beehive and the Anthill work well for a session of this kind and at this stage of group
development as they generate interest among the listeners and serve the message effectively. A few stories are given below, which you may use for this purpose.]
The Story of the Birds and the Net: once a flock of birds were trapped in a net laid out by a hunter. They vigorously tried for
long to escape from the net, but failed. Soon, they saw the hunter coming up to them and sensed the bell of doom ringing. At that
moment of trepidation, one of them had a brilliant idea, which it shared with the rest. As the hunter drew nearer, they all flapped their wings in tandem and flew away with the net.
The Story of the Blind and the Lame: there lived in a village two friends, one of whom was blind and the other lame. Once, a
nasty fire broke in their village, forcing all the villagers to run away to a safer place. However, the two could not run as the
blind was unable to see and the lame was unable to move. Suddenly, a brilliant idea flashed in their mind. The blind lifted his friend on his back and started running while the lame showed
his friend the way. Thus, acting together they found a way out and saved their precious lives.
Notes for the Trainer:
Stories must be told in a lucid way to enable the listeners understand them well.
Elaborate wherever necessary.
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Elicit responses from the participants and initiate discussions
around the message of the story, relating them to the concept of self-help.
Draw their attention to the usefulness of organized and
collective effort, which a group is meant for.
2. Hold a session to enable the members understand the
importance of regular savings in the SHG and highlight its role in providing them an opportunity to save and use their
own savings to meet their immediate credit needs.
[Process: regular savings by the members to pool in resources
into the group’s common fund is what creates a nucleus around which the future transactions of the group revolve. Practice of regular savings therefore is a very important activity of a self-help
group, which needs to be stressed duly. You may take help of the following guidelines to hold a session on this.]
Learning Method:
Brainstorming,
Group Discussion and Guided Dialogue
Key Questions:
Why do the poor borrow? For what purposes did you borrow
money during the last one year?
Probable answers are: food, clothing, marriage, house
repair/construction, death, health, household expenses, farming cattle, agricultural inputs, ceremonies, travel, education, old debt clearance, etc.
What will be an ideal source of credit for the poor? What are your expectations of credit conditions when you approach
somebody for a loan?
Probable answers are: that, which lends small amounts of
money, provides timely credit, and provides credit at non-exploitative interest rates without requiring formal security or collateral
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What are the available credit sources in your village or
community?
Probable answers are: landowners, big farmers, pawnbrokers, local mahajan, friends and relatives, bank, cooperative societies, private financial institutions, etc.
What are their disadvantages according to you?
Probable answers are: high rate of interest; need for security, guarantor, mortgage, or collateral; harassment on non-payment or delay in payment; risk of losing property, exploitation, or bonded labor; not timely available, expensive, or lot of paper work; presence of middlemen, only for members, only big loans available; etc.
Session Guide:
Give brief about the focus and the purpose of the meeting.
Put the key questions before the participants one by one.
Initiate a discussion on each issue/question by involving all.
Elicit the answers from the participants and list them out on a
chart. Add your own input against each list (take help of the list of probable answers for each question).
In case majority of their credit needs are for consumption purposes, discuss why this is so and what implications it may
have.
Lead them to reflect upon how an SHG can prove to be an
ideal instrument for their savings and credit needs by meeting all the requirements of an ideal credit delivery system. Also,
facilitate them to conclude that this is possible only when the group has its own common fund generated by the members’ own regular savings.
Points for Reflection:
The poor often borrow small amount of money for meeting their daily needs. They need credit that is timely available at
non-exploitative interest rate and without collateral or security.
An analysis of the locally available credit sources will reveal their disadvantages in the context of the credit needs of the
poor.
An SHG has all the features, which are essential for a suitable
credit system meant for the poor.
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3. Hold a game session with the participants to explain the
importance of goal setting for the sustainability of a self-help group
[Process: most of us live our life far below our capacity. Like the stray bits of woods, we float passively on the surface of a river,
allowing the currents to steer us here and there without any aim of our own.
Setting goals for ourselves can free us from aimless floating on the river and help us to give meaning and direction to our
endeavors and pursuits. It also helps us to use and develop our potentials, resources, energies, and time more effectively. The
same is true in the context of a self-help group, which exists to accomplish such goals and objectives as are beneficial to all its members.
However, it is necessary that our goals are both challenging and realistic. A less challenging goal may not be attractive enough to
enthuse the members. Similarly, an unrealistic goal is very likely to lead the group to frustration and disappointment in case it is
not achieved. Therefore, while helping the group to set goals for it, it is quite necessary to tell it that the goals should be “SMART” in characteristics. Following table explains the meaning of
‘SMART’.
To further explain the concept and the importance of goal setting
in a self-help group, the trainer may take help of methods like story telling, role-play, brainstorming, or a game-based exercise.
Necessary outlines of a structured exercise “Ring-Toss” are given below.]
S Specific
M Measurable
A Achievable and action-oriented
R Relevant
T Time & Resource bound
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Objectives
To help the group to learn the importance of
setting ‘SMART’ goals.
To help the group develop an attitude for taking
calculated risk for achieving its goal.
Time Three hours
Materials
Drawing sheet, sketch pens, number cards from
1 to 10, an iron ring, and a wooden plank with a fixed stick at one end of it.
Method
Structure exercise and individual and group reflection.
Session Guide:
Keep the wooden plank (with a stick attached to one end of it) at one end of the session hall.
Place the numbered cardboards on the plank in ascending order from the stick end (as shown in the figure below).
Allow a 2 feet distance between the cardboards.
Each participant will be given a ring.
The task for each participant is to throw the ring in such a way that it circles the stick.
Each one would be given three turns. In each turn, one has to throw the ring three times from the chosen number of
standpoint.
10 9 8 7 6 5 4 3 2 1
Wooden Plank
Toss Ring Stick
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Before the start of each turn, the participant has to decide and
note down a particular number of standpoint (from 1 to 10) from where she would throw the ring and how many times out of the three she expects to succeed in circling the stick.
Having chosen a particular number, s/he has to throw the ring from that number only for all the three times of that turn.
However, in the next turn, she may change the number of her standpoint.
After each turn, the participants have to write down their feelings about their efforts, success, and failure. Success
means circling the ring; failure means failing to do so.
Prepare a chart/table showing the following findings:
► The point and number from where the participant throws the ring in each turn
► Whether the participant in consideration changes her
standpoints in successive turns
► On what number of attempts she had expected to succeed
and on what she succeeded actually.
Points for Reflection:
The number that the participant selects as her standpoint to throw the ring and the way one plans it is most important as it
shows the participant’s level of achievement motivation, ability to take calculated risk, and the planning pattern employed.
Standing on numbers 1-3 and getting success is a very easy job, where only a little amount of risk is involved. Throwing the ring from points 4 & 5 involves moderate risk; any number beyond
that involves higher risks of failure. In setting any goal for us, we need to balance the element of challenge with a realistic assessment of the situation.
4. Organize a session to help participants gain familiarity with
the basic steps involved in a planning exercise.
[Process: Planning may be defined as a process of identifying a set of problems, goals, and objectives and determining the best course of action out of many for achieving the fulfillment of those
problems, goals, and objectives. In the context of formation and development of a self-help group, a field worker often requires
planning inputs and activities to match field situations and to meet the requirements of the group he is working with. Simple
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acts of planning may be used in identifying specific needs of the group at different stages of development, mobilizing necessary
resources, anticipating possible constraints, and ways to overcome them. However, people working directly in the field are
prone to be taken over by the immediateness of their situations, which may result in their jumping into action without any planning for it. It may work well at times, however, at others, it
may not. It is therefore desirable that they are given some orientation into the very act and process of planning. Following exercise may be used for this purpose.]
Session Guide:
Divide the participants into two sub groups.
Give both subgroups the following task to accomplish:
Participants are to suppose that they are the members of a
farmers’ delegation that is going to press its demands with the state level officials for better power supply during the day
hours to irrigate fields adequately.
The appointed time for the meeting is 10 o’clock in the
morning and the place where they have to meet the officials is about 100 kms from their village.
Going by the local bus, they cannot reach the venue in time
and would miss the meeting.
Hiring a conveyance exceeds the available budget.
Going by the train, which is a cheaper option, brings them to
the town a night before the scheduled meeting and in this case, they require arranging for night stay.
The task before each group is to come out with a definite plan
as to how it will make to the scheduled meeting in time. Ask each group to make a presentation before the larger group.
Questions to be Raised During the Debriefing Session:
What was the task before each group to accomplish?
What were the problems in accomplishing that task?
What are your reasons for choosing a particular plan to fulfill
the task?
Do you think there are more ways to accomplish the same
task?
What if things turned out to be different from what you
speculated?
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Points for Reflection:
Tell the participants that things happen in a sequence even if
we are not aware of it. The process of planning helps us understand that sequence and adopt or redesign it as per the
needs of target achievement.
Lead the participants to reflect upon the process and steps
involved in arriving at a decision about a particular plan for target achievement.
5. Organize a visit of the group members to a nearby self-help
group, which is operational in an ideal way.
[Process: opportunities to interact with other SHG members and learn about how they are functioning and managing affairs
provide a useful learning experience to the newly formed group. Besides being an off-the-routine activity and drawing members’
attention therefore, it serves to motivate them to fare as well or even better as a group. Following guidelines would help you to organize an exposure visit for your participants.]
Learning Method:
Mutual Interaction
Discussion in Small groups
Note to the Trainer
Ensure that the process includes the following steps
Analyzing a situation
Setting a target
Mapping activities
Anticipating problems
Assessing and mobilizing resources
Generating alternatives and options
Selecting an option
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Session Guide:
Chose a well functioning SHG situated nearby.
Inform them of your visit plan and its purpose.
Brief them on the general background of the new SHG.
Inform the new SHG also of your visit plan and its purpose.
Let the members of the younger and older SHGs introduce
them by exchanging names and details about their families, occupations, and the areas they belong.
Form groups of four with two members from the younger and two from the older groups each.
Assign each group the task of discussing and sharing information around the issues shown under the ‘key issues’
head.
Let the discussion run for about an hour.
Call the small groups back and ask them to report their discussions to the entire group one by one.
Help each group to focus its presentation on the strengths and the weaknesses of the two groups identified during the group
task.
Ask the members of the younger group how they feel about
their group compared to the older one?
Help both the groups, especially the younger one, synthesize
their plans to further strengthen their positive features and improve upon the negative ones.
Key Issues to be discussed by the Small Groups:
Why did you form a group? Who initiated the process?
What are your group’s achievements so far? How has it been
useful to the members?
How much savings your group has raised? What are the
differences in savings pattern?
How are loans issued? What norms are agreed upon for
loaning and repayment? What have been the maximum and minimum loan amounts issued so far and for what purposes?
What is the rate of interest chargeable on the loan? How did you decide it?
Have there been any defaulters? How were they dealt with?
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What are the different roles and responsibility of members and
leaders?
What problems and challenges has each group faced so far
and how were they resolved?
What are your future plans?
6. Organize a session with the purpose of strengthening
interpersonal relationship among the group members.
[Process: good interpersonal relationship among the members is a key factor in ensuring a cohesive group and its smooth
functioning. This is more so when the group is still in the process of development and consolidation. Following session undertakes to focus on this.]
Session Guide:
Let each member share the following information with the group.
► Details about her family and any present problem or
concern facing the family.
► Moments of happiness and sadness related to their association with the group.
Use the following introduction to smoothly carry on further
interaction and to positively influence the attitudes and feelings of the members.
“For sometime now, we have been functioning as a group. It is not always possible to get along smoothly even in family relationships between husband and wife, mother and
daughter, etc. So, during this much time in the group, as in any other relationship, definitely we should have stored away some memories of very happy moments, and may be a few
unhappy ones as well. Let us share our feelings with others in the group, as it would serve the following purposes:
► It would help us to bring closer. We all know that sharing our happiness doubles our joy whereas sharing our
unhappiness reduces it half.
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► It would help us to know if there are any misunderstandings among the members, so that we can
try to overcome them.
► In addition, it may encourage us to share our expectations
related to some relevant aspects of group functioning.”
Use the following questions to hear members’ feelings about
the group:
► Has the group helped you to resolve personal problems?
► How do you feel being in the group?
► Who are the members with whom you interact in your
group? Who do you trust most?
► Have there been any situations when the group supported
you? When and why?
► What has been your contribution to the group with respect to the group meeting, activities, development, and
promoting interaction among the members?
► What do you think the group expects from you? What is
your role in the group as perceived by you?
► What do you expect from the group and the group leaders?
► Have there been any situations where the group let you down? When and why?
► Did the group ever feel let down by you? When and why?
Notes for the Trainer:
The purpose of the session is to promote sound human
relationships among the members. Though the situation may provide an opportunity to let out pent up emotions of members, it should not become a platform for hurling
accusations and counter accusations to justify any wrongs experienced in the past. The session therefore needs to be
handled very carefully.
While concluding the session, focus on the strengths of the
group, especially those emerged during the interaction.
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Indicate the behaviors, which need to be modified.
Take individual commitments from the members that they would contribute their best to retain the strengths of the group
and to overcome the weaknesses.
Encourage the members to stand by each other in times of
need.
7. Hold a session to help one-year old groups to review and
reflect upon their performance so far and plan for future.
[Process: reviewing past activities and performances not only
allows the members to examine the group’s successes and failures but also provides useful cues for developing an action plan for the future development of the group. In addition, it
serves to fulfill the strategic need of the project management team and the group leaders. Therefore, a session to carry out this exercise will be very much in place.]
Trainee Group:
Twenty representatives of one-year-old SHGs (two each from
ten such groups)
Session Guide:
Inform the target group about the review meeting ahead of
time.
Ensure that they understand the purpose of the meeting.
Ask them to come to the meeting prepared with all necessary information.
After the introduction of the participants, divide the participants into four sub-groups of five members each.
Let the members of each group share with others the following information:
► Total savings of the group,
► Types of the savings,
► Credit generated,
► Variety of relationship among the members,
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► Members’ participation in group activities such as meeting, decision-making, problem solving, etc.
► Leadership change,
► Problems faced by the group in the past one year and how
they were addressed.
Once the groups are over with their tasks, ask them each to
list out the ideal characteristics of a group.
Pool together the common points enlisted by them.
Now, let the members of the same sub-groups consider the achievements and performance of their SHGs in view of the
ideal characteristics identified by them.
Help them identify the strengths and weaknesses of their
group.
Afterwards, ask them to decide how they would improve upon
the weaker points of the group.
After half an hour, call the sub-groups for reporting to the
entire group.
End the session by debriefing the conclusions and
summarizing the outcome.
Notes for the Trainer:
With regard to the plans and targets presented by the sub-
groups, check whether they are realistic.
Discuss the specific plans of the groups to achieve the fixed
targets for every aspect of groups functioning.
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CHAPTER 4
Important Group Processes
e have discussed in detail some of the processes (like the
process of group formation). What is it that we call a
“process”, and how is it different from an activity?
A social process is the way a social group unfolds itself on its
way to a specific goal.
This unfolding may be a series of events, actions, or happenings
between an input and its output, or between an initiative and its
result.
This series of happenings may be natural, or a designed one, as
in the case of interventions made by a development agency.
W
Process “A”
Input or Initiative
“B” Output or Result
Interventions by the Dev.
Agency
Responses
shown by the Members
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We may better understand the concept of a process with an
example where in a group situation not all the members start to
participate in group activities right from day one. It is only with
the passage of time, (due to the initiatives taken by the field-
worker and the willingness of the members) that their
participation increases. The movement from non-participation to
participation is a social process.
Therefore, in a group situation a process is the time and
manner in which a particular development of the group takes
place.
This process is generally an outcome of the planned
interventions made by the development agency and the
responses made by the members.
As a development worker, we are required to deal with and work
upon people for effecting certain changes in them and in their
living environment.
These changes cannot and should not be enforced or pushed
upon by any single method or rule; rather, they have to be
engineered organically so that they are accepted willingly.
Group at an
Early Stage
Group at a
Later Stage
Group at a
Much Later Stage
Process of Increase in Members’ Participation in a Group
High Participati-on of the Members
Very High Participati-on of the Members
Low Participati-on of the Members
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Therefore, a group process is all about facilitating certain
changes in the group over a period of time, which contribute to
its functionality and sustainability.
This is often a time taking process whereby we act and patiently
wait for the results to come. Nevertheless, such a process of
change is key to the life of a group for generating strength and
cohesiveness among its members.
In the following sections a few important group processes like
participation, communication, and decision-making, have been
dealt with to widen the field-workers’ understanding about
them.
4.1 Participation
4.1.1. What is participation all about?
Participation is at the core of any group activity. A group
transacts only when the members participate in its tasks and
activities.
Participation is not a mere presence or the head count of the
members in a group meeting.
It is actually a process which ensures two things –– first, the
members’ identification with the objectives of the group and
second, willingness to accept their share of responsibility to
fulfill those objectives.
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This identification and willingness on the part of the members
are often expressed in the interest shown in the activities of the
group.
As the degree of interest varies from member to member, so
does the degree of participation.
Depending upon a member’s degree of interest in the group’s
affairs, his or her level of participation may be termed as either
low or high.
Similarly, depending upon the degree of variation among the
members’ individual participation in the group’s affairs, the
overall participation level of the group at a particular point of
time may be termed as either low or high.
From this it can be inferred that the level of the group’s
overall participation is actually the sum total of all its
members’ participation in the activities of the group in
their individual capacity.
However, a good enabler and facilitator of the group ensures
that with the group’s onward journey to maturity, variation in
the degree of the members’ participation comes down to the
minimum possible.
Without a strong participation of the members in the group’s
activities, the viability of the group cannot stand for long.
4.1.2. Factors Influencing Members’ Participation in a
Group
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In most rural societies in India the formalized group meeting is
not a common and familiar medium of social interaction for
women. Because of it being something new to them, it is very
likely that they experience stress and nervousness in a group
setting; hence, their participation may not come naturally.
There are many such factors – like social, cultural,
psychological, political, or economic in nature – as may affect a
particular member’s level of participation in group activities. For
a field worker, therefore, it is important that he or she
understands these issues well. A few important factors that
influence individual participation in group activities include:
(A) - Physical Atmosphere Of The Meeting Venue
The place where the group is holding its meeting or is engaged
in some group activities should be convenient and agreeable to
all. This is most important during the early stages of group
development when the members are yet hesitant in their
behavior and the cohesiveness of the group is not high. For
example, if the place is too hot or cold, or near some unsocial
place or at some place where women may feel constrained to
assemble, the participation level of the group will certainly
remain low.
Likewise, if the meeting is held at a particular member’s place
only and is not well rotated, or not held at a common place,
others may feel bad about it. The friendliness among the
members may, thus, be affected resulting in low group
participation.
(B) - Internal Atmosphere Of The Group
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The internal atmosphere of the group is a very important issue,
which acts as a facilitative or inhibitive factor for the process of
group participation to evolve. The internal atmosphere of the
group is often influenced by the outside-the-group interactions
of the members carrying into their transactions within the
group. Therefore, the facilitator is supposed to know why
members interact differently with different members and initiate
processes that minimize such extraneous influences.
(C)- Importance And Nature Of The Group Task
Importance and nature of the group tasks also influence the
level of group participation. If the members are able to relate to
whatever is going on in the meeting or if they think it is useful
to them in some way, their interest automatically rises and it
results in better participation.
(D)- Composition Of The Group
Composition of the group is yet another factor influencing
members’ participation. Participation wise, a homogeneous
group is likely to perform better than a heterogeneous group.
Socio-economic differences or other differences rooted in the
members’ experience, age, culture, and education may create
divisions among the members, causing harm to the possibility of
uniform participation. Therefore, it is very necessary to ensure a
homogeneous group as far as possible.
(E) - Approach Of The Group Leaders
Group leaders approach and conduct towards their fellow
members are also very crucial in ensuring high participation
from the members. A sensible and careful approach on their
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part works to promote harmony within the members, letting no
one feel sidelined or marginalized. Participation level in such a
group is generally high. Facilitators, therefore, have a role to
play in encouraging democratic practices and pattern in the
group.
(F) - Presence Of Outsiders/ Awe-Inspiring Personalities
Presence of outsiders in the group can adversely affect the
participation level of the members, more so when the group
does not know the outsider previously.
Similarly, in the presence of govt. officials like the village
pradhan or any other personality such as the district collector,
members may feel shy and hold back from interacting freely.
4.2 Communication
4.2.1. What is Communication all about?
In the preceding section, we learnt that participation is the
nucleus of all group activities, without which a group will have
only a notional identity. However, what is it that makes the
process of participation happen in a group?
It is communication. The process of communication in a group
runs parallel to the process of participation. Without meaningful
communication amongst members, there can be no actual
participation taking place.
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In a specific sense, communication is to put across one’s
intentions and ideas to others so that others may understand
them exactly as one means them to be understood.
In a broader sense, however, communication is the way the
members of a group interact amongst themselves and with
outsiders.
All forms of communication may be divided into the following
components:
The conveyer (person who conveys something),
The receiver (person to whom something is conveyed),
The content (that which is conveyed),
The medium (instrument used to convey the content), and
The response (that which is responded as by the receiver)
No communication is complete in the absence of anyone of
these.
Depending upon the nature of its medium, communication
could either be verbal like the spoken words, or non-verbal like
one’s body language, behavior, or something written. As a group
process, both types of communication are equally important.
Like participation, the level and the scope for focused
communication within the group may be low during the initial
stages of group development. It is because of the lack of
familiarity among the members and the absence of a sense of
direction. As the group evolves, it develops clarity and sense of
direction resulting in enhanced possibility of communication.
4.2.2. Factors Influencing Effective Communication in a Group
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Effective communication can take place only when what is
conveyed is understood as it is conveyed. For this, an
environment of ease and acceptance needs to be created.
Most of the problems of communication among the members are
rooted in the newness of the situation they face, the stress they
share, and the lack of understanding they have of one another
and of the group facilitator.
Therefore, it is necessary that during the early stages of group
development, everyone be given time and opportunity to discuss
their views freely and spontaneously with the facilitators and
other members. Such an exercise helps to promote interactions
among the members and enhances the level of communication
within the group.
Facilitators should also try to know each group member
individually, along with her family background. This enables the
members to correlate with the facilitator in a better way and
thus, overcome the anxiety and stress of the new situation they
are in.
Addressing the members by their names, like ‘Sarla Behen’,
‘Gita Behen’, etc., casts a very positive effect on the members’
psyche and they feel recognized in the group. It is therefore a
useful idea for the facilitator to learn their names as soon as
possible. It helps the members gain confidence to open up and
communicate more freely.
It is a general experience that initially members are unable to
express their ideas or understand other’s ideas clearly and
coherently. They even show little patience in waiting for their
turn to come and hasten into exclaiming their views and ideas
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before others are through with their turn. This creates a sort of
disorder in the group and makes meaningful communication
difficult, if not impossible. Therefore, the group facilitator must,
in such cases, try to motivate the members to speak only one by
one.
The facilitator should identify the dominating and the passive
members in the group and work out a strategy to neutralize
these differences.
One way to neutralize this difference is to ask the members to
sit in a circle so that they are face-to-face with one another.
Background noises and side talks distract others and obstruct
the free flow of communication in the group. This must be
discouraged and stopped as soon as possible.
One of the reasons behind members’ reluctance towards not
sharing their views and ideas is their fear of rejection and
ridicule by others. This is more so during the initial stage of
group development when the members’ level of self-confidence is
low. The facilitator must, therefore, ensure that views of no
members are dismissed summarily even when they are extreme
in nature. A good way to deal with such extreme views is to
facilitate an open discussion on them and let the group itself
decide their non-acceptability.
4.3 Leadership, Decision Making, and Conflict
Resolution
4.3.1. What is Leadership?
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A group life can be termed as a life of multiplicity expressed and
sustained in the unity of the group’s objectives. It is actually the
group’s objective, which acts as a unifying principle for the
multiplicity of its members. Seen this way, leadership can be
termed as the characterization of this principle of unification in
a few of its members who take, by turn, a leading role in the
management and functioning of the group.
Leadership is a quality, which enables a member to take on a
leading role in the attainment of the objectives of the group by
accepting more of the group’s tasks and representing the
group’s interest as a collective of all members. Therefore, a
leader is responsible towards attaining the objectives of the
group and maintaining his or her rapport with the members
both.
We may therefore say that a leader is a person who balances
between the task and relationship in a group. Only an emphasis
on relationship will not lead the group anywhere. Similarly, if
emphasis is given only on task, the group cannot be developed
and sustained.
If the leader functions with a low task and a low
relationship with group members, it indicates that he or she
is not taking sustained interest in the group task and at the
same time not inspiring the members. As a result, the group
lacks in spirit and a sense of achievement.
If the leader functions with low motivation for task, but
high relationship with the group, it indicates that he or she
is more worried about the relationship with the people and
less for the task achievement. As a result, the task of the
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group is neglected and the members only enjoy appreciating and
patting each other. Such a group may appear strong from the
outside, but lack in actual strength.
Alternatively, if the leader functions with low relationship
with the group, but high task orientation, it indicates that
he or she gives more importance to task achievement, gets
all the work done through the members, and ends up with
taking all group decisions by himself or herself. As a result,
the members feel used and get frustrated with a high workload
and low personal relationship. Such a group may accomplish
the task, but may not enjoy the work.
In an ideal group, the leader functions with high task
achievement motivation and high relationship with the
members, signifying that he/she is committed to the group
task and concerned about the personal growth of the
members as well. As a result, the group becomes strong both
in the feelings of togetherness and in actual task achievement.
In a self-help group, leadership is generally represented by
office-bearers like the president or the chairperson, secretary,
and the treasurer; such positions should however be
democratically elected or unanimously nominated by the group
members themselves.
4.3.2. Role of Leadership in running a Self Help Group
The role of leadership in running a self-help group is very
critical for both its internal management and outside linkages.
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Success of an SHG depends substantially on the kind of
leadership it has. Preferably, the group leaders should be
literate and able to communicate well. A sensitive, honest, and
democratic approach on their part is helpful in maintaining the
cohesiveness of the group. A leader, therefore, must be elected
by unanimous choice, as far as possible.
Group leaders have a very specific role in acting as a link
between the members and the facilitators of the group during
the days of group formation. In the absence of the agency’s
facilitators, they act as the group facilitators. When the agency
actually withdraws from the project by phasing itself out, much
of the onus of keeping the group intact is shifted on to the group
leaders.
Group leaders are supposed to ensure proper management of
the group by motivating the members to abide by all group
norms decided by the group collectively.
Another very important role of the group leaders is to develop
and maintain group’s productive associations with outside
agencies such as bank, village panchayat, district
administration, development agency, etc. to fulfill its objectives.
Group leaders also have to supervise the administrative work of
the group such as maintenance of financial and non-financial
records, convening and facilitating the group meetings,
executing the decisions taken by the group, etc.
In their role of enabler, the group leaders help the members in
solving their problems and working out plans.
4.3.3. What is Decision-making All about?
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Like participation, communication, and leadership, decision-
making is also an on-going group process and a very important
one. It is important not only in a group situation but in all
situations of our life because all our actions are based on some
decision or the other.
A decision is a commitment towards a course of action based on
some need or consideration of the one who takes it. It may be an
individual decision or a collective one.
In the context of a group, however, decisions need to be either
taken collectively or at least consented to by a majority of the
members. Norms for decision-making are critical for the long-
term sustainability of the group.
During its course of life, a group needs to take decisions quite
often. It decides on many things concerning its internal and
external management.
Although a decision in a group is taken on the objective
considerations of its context, it cannot always be free of the
subjective biases, opinions, and mental makeup of the ones who
take it.
These biases and opinions are often the outcome of the
members’ own social, economic, and cultural influences, which
they acquire during their process of socialization.
Even facilitators may not be free from such biases and opinions.
However, because of their knowledge of this possibility they are
certainly in a better position to handle them. One of their jobs is
to help the group arrive at decisions through an objective
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analysis of a situation and not by their own subjective
considerations.
Decision-making becomes difficult when there are many
alternatives or options to choose from, and different members in
the group feel differently about a particular option or choice.
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4.3.4. What is a Conflict?
Agreements and disagreements are part of
a group’s life. Individual differences of
members necessitate differences in their
opinions, aspirations, attitudes, and disposition. Hence, there is
scope of divergence among the members on a particular issue.
However, when such differences become sharp and heightened
and start affecting the interest of the group as a whole, they need
our attention.
A conflict is a state of indecision in which different alternatives
of an action compete with one another for acceptance as the
best one.
The result of a conflict is always a split situation. Whether a
conflict is group based or member based, it weakens the group
as a cohesive unit; and in extreme cases, it may even lead the
group to disintegrate. It is, therefore, necessary that the
facilitators and the group leaders resolve conflicts properly.
4.3.5. Steps to Conflict Resolution
A conflict in a group situation is often a result of lack of
communication that denies members a shared vision and
understanding of a particular issue.
Therefore, the best way to resolve a group-based conflict is to
facilitate an open discussion on it so that all members
understand the problem in its right perspective.
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The benefit of facilitating such a group discussion is that it
brings all the members face-to-face and makes them deal with
issues one by one in an explicit and open manner. At the end of
such conflict resolving sessions, a consensus is arrived at and
the conflict is resolved comparatively on a more permanent
basis.
Often an outside intervention (by the facilitator or leaders from
other groups) is required to resolve a particular conflict within a
group. Such instances and their multiplicity should, however,
remain as low as possible.
The following sequence of steps could serve as a model
sequence, which may be used by group facilitators and leaders
during their sessions on conflict resolution: -
(A) - Identification Of The Problem
Discussions are held first to identify the actual problem by
focusing on it and defining its boundaries. Many a time when
the problem is analyzed and made clear to all, they realize that
it was never a problem as such. It was only a misunderstanding
arising from miscommunication, which led them to believe the
issue differently.
The facilitator may also in his/her own humble way help the
members understand the issue in right perspective. S/he even
needs, at times, to steer the discussion so that it may not
become another exercise of unforgiving stances of the disputing
members.
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Once the exact nature of the problem is identified by the
members’ own analysis, they stop defending it anymore and
show eagerness for finding a reasonable solution.
(B) - Identification Of Alternatives
As problems can be many, so can their solutions. Therefore,
there are always more ways than one in which a problem or an
issue can be solved.
It is always a good practice to define the alternative solutions of
a problem before arriving at the final one. Such options come
naturally when we think about an issue or a problem in a
democratic manner, involving everyone’s participation and
opinion.
(C)- Selection Of The Most Appropriate Alternative
Once the group has identified all available options to a problem,
what remains to be done is to select the most suitable one out of
them.
This could be done by a cost benefit analysis or by a simple
ranking exercise. A ranking exercise will mean counting of the
major advantages and disadvantages of a solution, making
comparisons among the advantages and disadvantages, and
assigning them a rank accordingly.
There may be situations where even a general reflection upon
the possible alternatives will give a clue to the most appropriate
one.
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(D) - Implementation Of The Solution
After an alternative is chosen out of a few that are discussed,
the group goes ahead with implementing it as a solution to the
problem. The very act of choosing and implementing a solution
collectively serves to bolster the prospect of the group.
(E) - Evaluation And Verification
After an alternative has been implemented and tested for some
time, an assessment is made of its worth in solving the problem.
There is no harm in switching over to another alternative if the
one implemented fails to serve the purpose.
The same stepwise process as mentioned above can be used in
arriving at a consensus decision on any important issue in a
group.
A member-based conflict, however, can be resolved by offering
individual counseling to the member and paying her home
visits. Even in this case, the above stepwise process, with some
innovations, can be used by the facilitator to make her see
things in the right perspective and arrive at a decision.
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EXERCISES
1. Hold a session to explain the concepts of process and
activity.
[Process: people react in a certain way to the changes that happen in and around their life. They either show approval and
acceptance for those changes or express reservations and resistance to them. In most cases however, they resist changes that are brought about in their life by an outside instrument or
agency. This makes the task of effecting changes in them and their ambience a difficult one, requiring a lot of interpersonal
skill, necessary conceptual inputs, and an unfailing patience above all. Therefore, a fieldworker working to promote formation and development of SHGs requires seeing the event of change
more as a process than as a function of input-output activity. Necessary conceptual inputs to explain the concepts of process
and activity are already given in the chapter, which you may use during your session. Following exercise is suggested to make the session more participatory.]
Session Guide:
Divide the group into three small groups.
Give them ten minutes time to reflect upon the following two
instances of social process – (1) The movement from non-participation to participation is a social process, and (2) the
movement from a less communicative group to a higher one is a social process.
Hold a brief session to introduce the related concepts of process and activity.
Ask all the groups to think of at least three such processes each.
Hold small group presentations and make a master list of all the processes identified by the groups.
End the session by highlighting the characteristics of a process and activity and their relevance in the group
development process.
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2. Organize a session on participation and team building as a
group development process.
[Process: To highlight the attitudes needed for participation in group activity and to emphasize the need to focus on task and
relationships in teamwork, participants may be asked to play the game ‘Broken Square’, the outlines of which are given below]
Materials required: one set of Broken Squares, as shown below, for
each team of five.
Session Guide:
The exercise is carried out in silence within the stipulated
time.
Divide participants into teams of five players each.
Assign at least one observer to each team.
Mix each set of 15 pieces, and distribute three pieces at
random to each of the five players in each team.
The task before the five of the team is to form five perfect
squares. The task will not be considered complete unless each member in the team has in front of her a perfect square of the
same size as those of the other four.
If any piece is not of use to you then you can keep it in the
center.
Others can take only pieces that are left in the center.
No one can talk, signal, ask, or grab the pieces of paper.
Reflect upon the experience after the completion of the
exercise.
Request the observers and the participants to share their
observations and feelings.
6”
6”
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Points for Reflection:
Who was willing to give away pieces of the puzzle?
Was there anyone who continually struggled with the pieces
but was unwilling to give any or all of them away/
Was anyone in the group frustrated?
Did anyone finish his/her puzzle and then separate from the
rest of group?
Was there any critical point when the group began to
cooperate?
Did anyone try to break the rules by talking or pointing?
3. Hold a session to enable the participants to understand the
bottlenecks in communication and to emphasize the need to
understand the language and the feelings of other persons during the process of communication
[Process: role of effective communication within and outside the
group needs to be emphasized by a suitable game or exercise, which not only helps to grasp the idea in a much better way but also serves as an instrument to open up the participants and
enhance the prospects of effective communication among them. Outlines of such a game are given below]
Name of the game:
‘Do it correctly’
Materials required:
Blackboard, two sets of 12 identical objects
Session Guide:
Invite two volunteers, say “A” and “B”, from the group.
Instruct them to sit facing each other at a distance of 5 feet.
Place a blackboard or hang a curtain between them in such a way that they cannot see each other.
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“A” “B”
Place one set of identical objects before each volunteer.
Arrange the set of “A” in a particular way or design.
The task for “A” is to communicate to “B” the pattern of her
set’s design in such a way that “B” also arranges her set in the same manner, however without having a look at A’s set.
The task for “B” is to arrange her set, without having to see A’s
set, exactly in the manner the set of “A” is arranged.
The rule at this point of game is that “B” will not ask any question from “A” while performing her task. Other group
members also will only observe the process and will not communicate by either speaking or making gesture among themselves or to the two volunteers.
Give 10 minute’s time for the task. However, tell them that they can take more time if they wanted.
Record the time taken for completing the task.
After the time is over, ask “A” as to how many pieces “B” would
have placed correctly following her instructions and note it down.
Similarly, ask “B” as to how many pieces she thinks she would have placed correctly and note it down.
Verify the actual number of objects placed correctly by comparing the set of “A” and “B”.
Go in for another round of the same game. However, change the process slightly this time. Ask “A” to arrange the objects
herself in any particular design she may like, but certainly different from the first one.
Ask “A” to communicate her design of set to “B”. “A” can do this either while arranging her set or after she has arranged it.
However, this time “B” can ask “A” any query or question which may help her in her task. Even “A” can clarify her
doubts while passing on instructions to “B”.
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Again, give 10 minute’s time for the task. However, tell them
that they can take more time if they wanted.
Record the time taken for completing the task.
Ask “A” as to how many pieces “B” would have placed correctly this time following her instructions. Note it down.
Similarly, ask “B” as to how many pieces she thinks she would have placed correctly this time and note it down.
Verify the actual number of objects placed correctly by comparing the set of “A” and “B”.
Points for Reflection:
Observe the body language of the persons doing the task.
Advise the participants to express their observations on
performing the task with regard to obstacles and facility experienced during the both rounds.
Bring out to the group the learning generated by this exercise
on one-way and two-way communications.
In general, the success rate of the second round is higher than
that of the first round because of the possibility of a two-way communication.
This exercise also emphasizes upon the fact that the absence
of eye contact makes communication comparatively difficult.
4. Organize a session to emphasize the need for leadership role
in the group and to enable the participants to know about different leadership styles and their effects on the group.
[Process: often due to an excessive dependency on agency’s field
worker, or other internal factors such as mistrust among the members, sub-groupism, etc, emergence of internal leadership in an SHG is unfortunately stalled. Group’s own leadership,
therefore, needs to be encouraged and promoted from the beginning so that it may become self-managed and sustainable in due course. Following exercises may help the trainer to hold a
session required as above.]
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Exercise – I
Objectives
To enable the participants to understand who is a leader and why leadership is required for an SHG.
Learning Method
Creative reflection and Brainstorming
Session Guide:
Divide the group into three smaller groups.
Give each group 30 minutes time to reflect upon who is a
leader and why leadership is required for an SHG.
Ask each group to fill in the following table by completing the
following two sentences in at least 5 different ways-
1 A leader is…
1
2
3
4
5
2 Leadership is needed so as to…
1
2
3
4
5
Ask all the groups to present their lists to the larger group
one-by-one.
With the help of all the three lists, prepare a master list.
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Notes to the trainer:
Ensure that the master list includes the following items: -
1 A leader is…
1 The most responsible person in the group.
2 The person who inspires the individuals and the group for
attaining the group objectives.
3
The person who facilitates a
process of growth among the members and the group.
4 The person who becomes a living example for the group by doing things herself.
5 The person who balances between task and relationship in the group.
2
Leadership is needed so
as to…
1 Monitor and improve upon the group’s performance.
2 Coordinate all group activities.
3 Nurture the group’s inter-personal
relationship.
4 Ensure that all members in the
group activities.
5 Take initiative in establishing
linkages with external agencies.
6 Provide strategic direction to the group.
7 Represent the SHG in various bodies like federations, etc.
8 Express and interpret the group’s vision.
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Exercise – II
Objectives
To enable the participants to get familiar with different leadership styles.
Materials Chart paper
Markers
Four glass tumblers
Water, Sugar, Clay, and a big Pebble.
Learning Method
Demonstration
Reflection
Sub-group discussion.
Session Guide:
Take four glass tumblers and fill them with water.
Ask the participants to put the pebble, water, the wet clay, and the sugar in all the four glasses separately.
Ask them to explain what happened in each case.
Points for Reflection:
In each case, water represents a group.
The pebble represents an autocratic leader, who is dominating
and does not mingle with the water.
Second instance, in which water is added to the water filled
tumbler, represents the effects of a dummy leader on a group; there is no difference between the leader and the others in the
group.
The wet clay in the third instance represents an anarchic
leader who spoils the group by promoting chaos and dissidence, like it spoilt the water by making it muddy.
The sugar in the fourth instance represents a democratic and participatory leader. As the sugar mingles in the water and
sweetens its flavor so does a democratic leader mingles with the group and enhances its quality.
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5. Organize a session to explain the process involved in
decision-making.
[Process: decision-making is an important group process, which characterizes the level of maturity the group has reached in terms
of cohesiveness among the members and democratization of group norms and practices. Often a group with many sub-groups
within it tends to develop problems with regard to reaching consensus and taking decisions on any issue of common interest, affecting adversely the development of group as a self-managed
entity. There may be other factors that can affect the decision-making ability of the group. Therefore, it is important to
understand the process and importance of decision-making in the context of Self-help group. A suggestive exercise is given below which may be used in a session on decision-making.]
Name of the game:
‘Flood in a Village’
Method:
Experiential Learning
Situation:
Certain village is invaded by flood.
Most of the houses are affected. However, a few of them are
totally submerged and people numbering 10 are trapped on the rooftops.
These people include a twelve-year girl who is blind and has to
participate in a national program shortly,
A pregnant woman who is unmarried,
A 60-year-old priest of a famous temple,
A young and brilliant doctor who has decided to work in the village,
The owner of a nearby shoe factory where many people from this village are employed,
A local moneylender who has always lent money to the village people, though on his own terms,
A local panchayat member who is a dedicated development worker,
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A schoolteacher who spent all his life in bringing education to
the village,
The daughter of the same schoolteacher, who is to get married
very shortly,
A woman health worker who is very dutiful.
All the 10 members are shouting for help.
There is only one small ferry, which can be used to bail the
trapped people out.
However, the maximum loading capacity of the ferry is only
eight including two oarsmen to row the boat.
It means only six from the trapped ones can be sailed at a time
to a safe place.
The possibility of a second round ferrying is very low.
Therefore, the task before the group is to decide who are the
six members they would prefer unanimously to rescue.
Points for Reflection:
Observe how the group reaches a unanimous agreement over
the issue.
Is the decision really a unanimous one? Or, is it a decision of
majority?
See if any member had any disagreement with the decision of
the group, but had to give in before the group pressure? What were those pressures?
Find out if any compromise was made between any members for reaching a consensus?
Who are members who most influenced the group’s decision-making process?
Who are members who remained passive and only consented to whatever decision the group arrived at?
Who are the members who always opposed whatever decision the group wanted to arrive at?
After the exercise, hold a session with the group to reflect upon the whole process.
Debrief the group on various angles and dynamics of decision-making process.
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6. Hold a session to explain what a conflict is and how it arises.
[Process: conflicts are inevitable in the life of a group as no two persons are alike and hence, differences and disagreements may arise out of differences in life experiences, attitudes, and
expectations of the members. There are many other factors such as poor communication, lack of mutual trust, heterogeneous
group composition, etc, which may further reinforce conflict. Therefore, it important to understand what conflict is and how it arises. Equally important is to know how a conflict can be
resolved. Following exercise serves to focus on enhancing participants’ understanding of conflict and common reasons
behind a conflict situation.] Name of the Game:
The Tea Cup
Session Guide:
Ask participants to sit in a circle.
Place an empty teacup in the center of the circle.
Ask each participant on which side of the cup its handle is
fixed.
Points for Reflection:
Different participants would answer differently about the
location of the handle on the cup. Some would say it is on the left, some on the right, others may not see the handle at all,
and yet a few others would find it right in front of them.
Initiate a discussion on who is right and who is wrong.
Tell the group that there is no single correct answer to the above question.
Discuss with the group that differences in situation and persons’ background influence their perception, which, if go
unacknowledged, result in a conflict situation.
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CHAPTER 5
Management and Functioning of an SHG
group’s future depends much on how the group members
manage its affairs in both its internal and external
working. In this chapter, we will cover different dimensions of
managing a self-help group.
5.1 What happens in a Routine SHG Meeting
A very natural question, which may come to the mind of the
people not familiar with a formalized and structured group life is
that what exactly happens during a routine self help group
meeting. What business is done and how is it done?
Similar questions may trouble the mind of someone who is to
take up the job of a group facilitator in an SHG development
program. To answer this issue, an outline of the transactions,
which can take place in a routine SHG meeting, has been
rendered below.
5.1.1 After brief exchange, the minutes of the previous meeting are
read out by one of the office-bearers, preferably the secretary or
the accountant. This is done to recall important issues of the
previous meeting and the decisions taken thereupon.
A
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5.1.2 The group then sits to record the attendance of the members in
the attendance register. Any problem to be sorted out or any
group norm to be formulated is then taken up for discussion.
Decisions taken thereafter are recorded in the minute’s book.
5.1.3 Members deposit their stipulated savings with the treasurer or
the accountant who records corresponding entries in the
group’s savings register and the members’ passbooks. Fines for
previous absence of stipulated payment, if any, are collected
and recorded in a separate register, may be called a penalty
register.
5.1.4 Individual loan repayment schedules are reviewed and loan
repayments from the members are collected. Entries are made
in the loan recovery register and the individual members’ loan
passbook. Non-repayment of loan from any member is
discussed in the group and reasons given by her are analyzed.
Accordingly, the group takes a decision and, as per the norms, a
penalty is imposed and recorded in the penalty register and the
members loan passbook.
The group leaders and the facilitators may initiate a discussion
on the issue of non-repayment of loan by the members and its
negative implications on the well being of the entire group. Such
an exercise helps in maintaining the transparency in financial
matters and at the same time exerts a pressure on the
borrowers to maintain their repayment schedule.
5.1.5 Fresh requisitions for loan from the members are entertained.
The purpose, amount, and repayment schedule of the loan are
examined and analyzed. Corrections, if any, are suggested and
the loans are sanctioned.
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In case the available group fund is less than the total amount
requisitioned as loan, some sort of prioritization, rationalization,
or rationing of the application is done in compliance with the
group norms.
Alternatively, however, if there is a case of under utilization of
the group fund by the members and there is a low demand for a
loan, the possible causes of low fund utilization are discussed
and analyzed. The best use for the surplus group funds is then
discussed.
5.1.6 The fresh borrowers are again told about the terms of the loans
they have been advanced and the schedules of repayments they
are to follow. All the remaining formalities like updating the
records, getting the signatures or the thumb impressions of the
borrowers, etc. are completed and the loans are finally
disbursed.
5.1.7 Loan requirements of the members for the future meetings are
noted down and repayment obligations for the next meeting are
announced.
5.1.8 The group then takes up several issues/problems for a longer
and more in-depth discussion. Each member’s suggestion is
taken in and one to three issues are then prioritized for
discussion. No limits should be put on what kind of issues are
taken up for discussion. This is critical if the group is to have a
social base, in addition to a financial base for its sustainability.
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5.1.9 The secretary sums up the day’s proceedings by reading out all
transactions and decisions that took place during the meeting.
The day, time, and venue for the next meeting is fixed.
5.1.10 Members sign or place thumb impressions in the minutes’ book
to record their presence and consent to the transactions that
took place. The meeting is thereafter closed and the members
disperse.
5.2 Framing Norms
roup norms serve as parameters to validate or invalidate a
group activity. They are guidelines for the functioning of
the group in all its transactions. Norm setting, therefore, forms
the core of a functioning self-help group.
Framing of group norms is actually an essential feature of the
group development process, signifying growth in members’
ability to take collective decisions for framing, accepting, and
implementing a set of rules for them. As the group evolves in its
image of an organized body, so does its commitment to the
norms it sets for itself.
An important thing to keep in mind is that rules or norms,
whatever importance they may hold, should never be imposed
upon the group; instead, the group should be helped and
facilitated to make its own rules and norms in a natural way
without any outside pressure. The group should be left free to
learn and modify them through its own experience.
G
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In the following sections, important group norms have been
mentioned to give an idea about the types of norms that should
normally emerge in a functioning SHG.
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5.2.1 Norms for Timing, Frequency, and Venue of the
Meeting
Issues to be decided include:
Decide when the group meeting shall be held – whether in the
morning or evening,
Whether on weekly, fortnightly, or monthly basis,
Whether at a member’s house or at a common place,
Decide the degree and conditions of flexibility the group may
have in these regards.
5.2.2 Norms for Membership
Issues to be decided include:
What shall be the membership criteria for the new people
desirous of joining the group,
How the group will decide to grant or not to grant membership
to a new person – the mechanism to facilitate who in the group
will decide and on what grounds,
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Whether the group will charge a membership fee from the new
member in view of the expenses already incurred by the group,
or
Whether a new member will have to deposit an amount of
money in the group’s common fund equal to the average saving
of an individual member at the time of her joining.
5.2.3 Norms for the Termination of Membership
Issues to be decided include:
What shall be the reasons for termination of a member from the
group and the process followed for allowing the termination,
What shall be the rule for any member leaving the group out of
her own choice,
Will the entire savings of the member be returned after
deducting or without deducting the member’s share of expense
on the group’s assets,
Will or will not any interest on her savings be paid, etc.
5.2.4 Norms for the Group Leaders
Issues to be decided include:
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What names the office-bearers of the group will have –President,
Secretary, and Treasurer, or the Board of Directors. Specify
their maximum and the minimum number.
Specify the roles and responsibilities of all the office bearers
which the group will have,
What shall be the terms of office for the office-bearers – decide
in terms of months or years,
Define the process to choose the office-bearers – whether they
shall be selected, elected, or nominated,
Decide mechanism for keeping checks and balances on the
office-bearers – so that other members may cooperate with them
in their work and they themselves may discharge their duties
honestly.
5.2.5 Norms for Savings and On-lending among the
Members
Issues to be decided include:
Whether monthly savings should be uniform for all or variable
as per the individual member’s capacity,
When to start the rotation of group fund as loans to the
members,
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Will the loans advanced to the members be proportional to their
savings,
Will there be a ceiling on the maximum or minimum loan size,
What shall be the rate of interest and schedule of repayment,
Will the group levy a service charge on each loan to meet the
transaction cost,
Will the group like to know the purpose of a loan sought by a
member and her repayment plans,
How will the group prioritize the credit needs of the members in
case there is paucity of group fund and surfeit of loan-demands,
How will the group ensure realization of the loan if any member
defaults?
5.2.6 Other Administrative Issues
Issues to be decided include:
Will the group like to fix any penalty for late attendance in the
meeting,
Non-attendance in the meeting, or
A member’s bad behavior with other members,
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If yes, what shall be the mode of penalty, etc.
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5.2.7 Reviewing and Modifying Group Norms
After framing and using the group norms for a specific period,
the group may feel a need to either change a norm or modify it
for better functionality and management of the group. The
group may even find that certain norms are not being adhered
to; hence, may like to discuss the reason of non-adherence.
Therefore, it is a good practice to call for a review meeting after a
certain period, say after three to six months, whatever is
suitable for a group in its own context and situation. Such a
need may not come from the members, as they may feel hesitant
about voicing their differences in the beginning. The facilitator
has to take such initiatives initially, and encourage and
motivate the members to become pro-active and vocal.
A few of the issues, which may be discussed in a group review
meeting, are indicated below: –
Would the group like to replace, change, or modify any of the
group norms it formulated for itself, like the rate of interest,
amount of mandatory savings, amount and mode of penalty for
the defaulters, etc.?
Is there any need to change a group leader or increase their
number for managing added group responsibilities?
Would the group like to reschedule the frequency, timing,
venue, etc. of its meetings?
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There may be any number of such issues relevant to the group’s
integrity and cohesion.
5.3 System for Record Keeping and Accounting
ext in importance to framing and implementing norms is
creating a system of record keeping and accounting. No
transaction in a self-help group is left to memory or informal
noting, even though the majority of the members may not be
functionally or even minimally literate.
Functioning of an SHG can be compared to that of a small
cooperative bank meant for its members. As in a bank all
transactions are recorded in a system of a formalized and
structured database, so in an SHG all monetary and non-
monetary transactions are recorded in the books of accounts
and proceedings.
If no one in the group is literate enough to maintain the records,
services of a hired accountant or a record keeper may be sought
to do all that is needful.
Among the most commonly used books in an SHG are the cash-
book, members’ savings passbook, members’ loan book, ledger
book, penalty and fines register, stock register, members’
attendance register, and minutes’ book.
What records, books, and registers an SHG keeps would depend
upon its norms in this regard.
N
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5.4 Control over the Common Fund of the Group
Functioning of an SHG revolves around raising a common fund
of the group and utilizing it to the best purposes of the group. It,
therefore, becomes important that the group has a control over
the common fund. Normally, in a group with an external book
writer there is a possibility that he/she starts handling the
money and thus creates unwarranted prying in the activities of
the group. Following practices may be observed by the group to
retain control over the common fund:
The one who writes the accounts should never handle the
money.
Members should develop a habit of keeping mental track of
their own individual savings, total group fund, and credit
status in the group.
Important financial figures should be announced at the end
of every meeting.
Members should ask the book writer to read out the day’s
minutes before they sign.
Members should ensure that all the books of accounts and
other records are always kept up-to-date.
Members should ensure that the books and records are not
kept in the custody of the book writer.
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5.5 Mechanism for Information Flow within the
Group
universally found motive behind all initiatives for
promoting the formation and development of self help
groups of women is the intention to empower the poor women
who constitute a large portion of socially and economically
marginalized population of our society.
Hence, to keep this objective in focus during the course of an
SHG development project, it is necessary that the members are
encouraged and motivated to participate in the group activities
at all possible levels of program execution.
The objective of women’s empowerment and capacity building
within the frame of an SHG could be achieved through many
ways and means; one among them is sharing details and
information of group activities with one another so that
everything remains transparent and visible to every member.
Such a practice provides opportunities to every member for
being aware of the direction in which the group is moving.
Moreover, it promotes democratic and participatory functioning
of the group, which is essential for its long-term sustainability.
A free flow of information within the group can be instituted by
taking certain steps to ensure: –
That the members have direct access to the group related
financial information such as the composition and the status of
A
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group fund, status of the group’s transactions with the bank
and NGO, etc.,
That members are aware of the information available in the trial
balance sheet such as the total available group fund and its
distribution, etc.,
That the members are aware of the entries in their savings
passbooks such as the amounts saved by them, interest
accrued on their savings, loan advanced if any, and penalty
paid, etc.,
That the members are aware of their repayment obligations as
entered in their loan passbooks, possible penalties in view of
defaulting, etc.,
That the members are aware of and familiar with the different
kinds of group records such as cash-book, ledger-book, minutes
book, etc and the kind of information they contain,
That the member do not feel diffident in asking the accountant
or the record-keeper to read out to them the financial and other
details of the transactions taking place in the group.
All the above-mentioned tabs are only indicative and not
exhaustive.
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5.6 Monitoring and Review
onitoring is a continuous assessment of the group
activities with respect to the goals it has set for itself. It is
an ongoing assessment of the group’s progress to see whether
the same is happening in the right direction or not.
A review is a periodic assessment of the group to judge whether
it is operating as expected and whether any change at any level
has to be made to make it more effective and efficient.
Monitoring and review are the tools of internal management of
the group. Initially, it is the responsibility of the group
facilitators to steer the group on to the right course. However,
with the group getting older and mature, these functions are
passed on to the group itself where the group leaders assume
these responsibilities.
Basis of any monitoring and review activity of a group is its
goals and objectives, which are broken down into indicators for
this purpose.
Indicators are parameters to assess the degree of goal
achievement at a particular point of time in program execution.
They are like milestones which tell us whether we are moving in
the right direction or not, and if yes, how far we have moved,
and how far we have yet to move.
A few possible indicators for monitoring and reviewing a group
are given below: –
M
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SN Indicator Trend
1 Members’ attendance
in group’s meetings
Increasing, decreasing, or static
2 Monthly savings Regular, not regular, very irregular
3 Income of the group Less than the group expenses, more than the group expenses
4 Repayments of loans by the members
Very timely, timely only in a few cases, untimely, untimely in a few cases
5 Defaulting Frequent, rare
6 Group fund utilization as loans to members
Maximum, 75%, 60%, 50%, less than 50%
7 Repayment to Bank Regular, not regular
Below are given a few checkpoints to judge the progress and
development of a self help group, which may be utilized by
group facilitators/leaders in designing and executing a review
exercise.
Do the members attend the meetings regularly? What is the
percentage of attendance – less than 50%, between 50% and
70%, 70% and above?
Do the members come in time for attending the meetings?
Does the group freely communicate with the group facilitator?
Do the members freely communicate among themselves?
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Does the group take initiatives for organizing the group meeting
even when the facilitator is not present?
Has the group started pooling in regular savings?
Has the group chosen its leaders/has any leadership pattern
emerged in the group naturally?
Have all the group norms been framed and recorded?
Are all the norms set by the group being pursued rigorously?
Are all the members aware of these norms? Do they believe in
them?
Have the members started borrowing money from the group’s
common fund?
Is thorough processing being done before sanctioning a loan –
for example, is the loan-seeking member asked about the
purpose of the loan and the repayment schedule that she
envisages to follow?
Are all dues from the members such as interest on the borrowed
loan, repayment installments, penalties on defaulting – if any,
membership fee, etc. are coming on time?
Are the members showing collective responsibility for making a
follow-up of loan repayment, defaulting, etc.?
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Has any conflict surfaced in the group? Has the group been able
to resolve the conflict by itself, or the facilitator had to
intervene?
Are all the group tasks such as keeping the group fund, group
records, stationery, etc. shared and rotated among the
members?
Are the group members aware of the financial position of the
group and their own individual standing in it, such as the total
group fund created, fund utilized by the members as loans,
their own individual savings, expenses of the group, balance,
etc.?
Are the members aware of different group records such as
cashbook, ledger book, passbook, minutes book, penalty
register, attendance register, etc.?
Is the accountant or the record keeper doing her/his job
accurately?
Has the group been exposed to the working of a bank?
Have any training program been organized by the intervening
agency to enhance various skills of the group members and
leaders such as planning, accounting, budgeting, etc.?
Has the group been taken on an exposure visit to a peer group?
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Does the group hold its meetings even during the peak harvest
season?
Do the members ask to hear the day’s proceedings before
signing them?
Has the group now become stable on issues like membership,
group norms, leadership, viability, etc.?
All the above checkpoints are only indicative and not
exhaustive.
5.7 Registering a Group
egistering a group means making the group a formal and
legal entity.
Under prevailing regulations, informal groups (means
unregistered groups) are entitled to accept grants under
schemes like DWACRA, etc. and loans from banks under
NABARD’s scheme on SHG promotion. They can open an
account in a bank even without being registered.
Once a group is registered, it has to act in a formal way fulfilling
all legal obligations.
Therefore, for all practical reasons and to avoid unwarranted
interference from outside, it is always advisable to keep the
group informal as long as possible.
R
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However, if the group has the potential to grow into a big one by
expanding both laterally and vertically in terms of volume and
kind of work, it may then have no other option but to get itself
registered. In such cases, it is desirable that the group goes in
for registration.
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5.8 Federating the Groups
federation of self-help groups is an alliance, coalition, or a
union of a certain number of self-help groups based on a
mutually agreed agenda for the development and promotion of
self-help activities of the individual groups. In a sense, a
federation is an SHG of individual SHGs.
Depending upon the needs and the context of the aligning
groups, a federation can either be registered or unregistered.
Likewise, depending upon the kind of networking the groups
have opted for, a federation can either be a multi-layered
federation or a single-layered federation. Examples are given
below.
A
District Level Federation
State Level Federation
Apex Level Federation
Village Level Federation
Village level Alliance of SHGs
District Level Alliance of the
Village Level Federations
State Level Alliance of the
District Level Federations
National Level Alliance of the
State Level Federations
Multi-layered Federation
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The question arises as to why are federations required or what
are the benefits of creating federations of SHGs? A few possible
reasons are given below:
The adage “unity is strength” applies here again. Federating a
number of SHGs run under the same project allows a forum of
them to be floated which acts as a stronger pressure group in
many ways.
As a collective, a federation can enhance individual SHGs’
capacity to bargain with the administration on issues
concerning their development and growth.
In case of undue delay in sanctioning of loans or any other bank
related matter, a federation of SHGs can facilitate the individual
SHG’s follow-up with bank officials.
Single-layered Federation
Federation of SHG
SHG SHG SHG
SHG SHG
SHG
SHG
SHG
SHG
SHG
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A federation can serve to provide a platform to an individual
group to evaluate its problems and performances with respect to
those of other groups.
It also serves to provide alternative solutions to the problems of
an individual group, which it finds hard to solve on its own.
A federation eases substantially the work of a facilitator by
providing her/him access to a number of self-help groups
simultaneously. It saves valuable time and resources in
managing a project with a large number of groups.
A federation can also adopt and evolve a separate agenda for
itself to fulfill larger issues of the community.
5.9 Linkage with the Banking Institutions
Self- help groups of the poor owes their birth much to the denial
of the credit needs of the individual poor by formal financial
institutions like banks.
Formation and development of self-managed, self-help groups
was a natural response of the poor people to the structural
constraints of the society in which they lived, which denied
them, as individuals, access to banking services for fulfilling
their savings and credit needs.
Therefore, as a group, their linkage with the banking
institutions at some stage of the group’s development is a logical
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step towards securing a means for fulfilling their savings and
credit needs on a larger scale.
5.9.1 The Need to Open an Account in a Bank
Apart from the justification of a general nature given above for
creating a linkage of the group with banking institutions, there
are a few specific considerations also, which necessitate the
running of the group’s account in a nearby bank. These are,
Opening an account of the group in a nearby bank is the first
step in building its linkage with the formal mainstream
system.
Banks provide a safe custody for the large sums of money,
which the group may not require to use immediately.
Keeping the group fund in a bank ensures transparency in
the financial dealings of the group and adds to its
trustworthiness among the members and the outsiders as
well.
5.9.2 Formalities Required for Opening an Account
There are a few basic formalities, which the group needs to
fulfill for opening an account in a bank. They are,
First of all, the group writes a resolution showing its
willingness to open a bank account,
In its resolution it names three members who will act as
signatories of the group’s account,
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Finally, it submits to the bank a copy of the resolution along
with a photograph of the three signatories for the requested
bank account.
In case of any difficulties with the bank authorities in
opening the group’ account, the directives of the Reserve
Bank of India vide circular “RBI Circular DBOD: No. BC.
63/13:01:08:92-93, dated January 4, 1993 on the opening of
savings bank accounts in the name of Self Help Group” may
be consulted and referred to.
5.9.3 When to go in for External Funds?
A group may explore external sources to fulfill its credit needs.
These outside sources may include a grant from the supporting
agency or a loan from financial institutions.
However, before going in for any outside fund support, the
group needs to be well aware of the different aspects of fund
management and financial control, and the consequent
obligations and responsibilities that go with borrowing such
external funds.
Therefore, it is desirable that external funds are not pumped in
or sought by the group until it acquires familiarity with the
basics of group fund management and a clear need for external
funds by the group and its members.
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EXERCISES
1. Hold a session to explain how to conduct an SHG meeting.
[Process: the best way to explain how to conduct an SHG meeting is to simulate such a meeting with the participants. Besides providing a practical experience of it, such an exercise helps to
gather important details about the way a meeting is conducted. Important guidelines for it are given below.]
Session Guide:
Ask the participants to sit in a circle.
Start the session with a prayer or a song.
Select a chairperson, secretary, and a treasurer from amongst
the participants for the simulated meeting.
Brief them of their roles in the context of an SHG in general
and in the context of the meeting in particular.
Facilitate a welcome address by one of the office bearers.
Record the attendance.
Facilitate a review of the previous meeting (a previous meeting
has to be imagined)
Ask one of the office-bearers to read the agenda of the meeting.
Initiate and complete financial transactions related to savings, repayment, lending, etc.
Ask one of the members, preferably the treasurer, or the accountant, to record the proceedings of the meeting.
Ensure that all issues on the agenda are discussed.
Facilitate everyone’s participation in the group transaction and
the process of decision-making.
Ask one of the participants to read out the proceedings of the meeting aloud.
Gather participants’ signature (representing members of an SHG) on the minutes’ book.
Fix the date, time, venue, and the agenda for the next meeting.
Facilitate a vote of thanks and end the meeting.
Hold a debriefing session.
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Questions to be asked during the debriefing session:
Why was a circular seating arrangement followed, not a linear,
or any other arrangement (the group may experiment with holding a meeting with a linear or back-to-back seating
arrangement and note down its experiences)?
Why an agenda was fixed (the group may experiment with holding
a meeting without an agenda and note down its experiences)?
Why office bearers were nominated (again, the group may
experiment with holding a meeting without nominating any office bearer and note down its experiences)?
Why recording is necessary?
2. Hold a session to give participants an experience in framing
the group norms.
[Process: Group norms serve as guidelines for the functioning of
the group in all matters. They lay foundations for the day-to-day working of the group besides evincing details of its administrative
and managerial functioning. Hence, setting of group norm is an important task, which the group has to perform during the early days of its formation. Guidelines for a session on this are given
below.]
Learning Process and Methods:
Simulated group meeting,
Brainstorming, and
Group discussion.
Session Guide:
Brief the group of the purpose of the session.
Ask each of them to think over the following question and
come forward with an answer: “What do you mean by rules and regulations and why are they needed in a self-help group?” Give 10 minutes’ time for this purpose.
Write down all the responses of the participants.
Prepare a master list by removing repetitions and adding your
own inputs (examples may be given from our own
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surroundings and neighborhoods such as the traffic rule, rules pertaining to the fair price shop, village schools, etc.)
Explain in detail the concepts of rules & regulations, and the role of norm setting in the functioning and management of an
SHG.
Now, ask them to simulate a group meeting as in the previous
session.
Facilitate the group to select a chairperson and a coordinator
from amongst them who will manage and steer the group discussion.
Ask the group to explore and enlist areas in which rules and regulations of the group need to be framed.
Ensure that discussions are shared among all the members so that all have a chance to speak.
Prepare the list suggested by the group members.
Ask participants to make a review of the rules suggested by
the group.
Incorporate if members suggest any modification.
Notes for the trainer:
Never impose any rule or norm upon the group; instead, help
and facilitate the group to make its own rules and norms naturally and without any outside pressure for it.
Encourage the group to learn and modify them through its
own experience.
Ensure that norms related to the following areas are included
in the final list prepared by the group:
► Norms for Timing, Frequency, and Venue of the Meetings
► Norms for Membership
► Norms for the Termination of Membership
► Norms for the Group Leaders/office bearers
► Norms for Savings and On-lending among the Members
► Other Administrative Issues and sanctions
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► Reviewing and Modifying Group Norms
3. Organize a session to enable participants to process
members’ loan applications in an SHG meeting.
[Process: circulation of group fund among the members is a crucial function of an SHG. This fund is circulated as loans to individual members, which are paid back to the group in a
stipulated time and manner. Problems arises when demand for loan from the members is low, or when the accumulated group fund is less than the demand for loan, or when repayment of
advanced loan falls behind schedule or stops altogether. Therefore, it is important that participants understand the
procedure for processing and sanctioning of loan considerably well. Following session may be organized for this purpose.]
Session Guide:
Divide all the participants into three small groups A, B, and C.
Ask each group to simulate a group meeting as in previous
exercise.
Imagine that all the three groups have accumulated Rs. 5,000
as group fund through individual savings by the members.
In the group A, ask 3-4 members to come forward with a
demand for loan. See that the demand for loan is bigger than the accumulated group fund.
Ask the group to think over the way it will handle the situation and give 15 minutes’ time for this purpose.
In the group B, see that no members come forward with a demand for loan.
Ask the group to think over the way it will handle the situation and give 15 minutes’ time for this purpose.
In the group C, create a situation that a few members who got loans from the group fund are defaulting.
Assemble the groups and hold a debriefing session.
Questions to be asked during the debriefing session:
How will you process and sanction a requisition for loan?
Will it be proportional to the member’s individual savings?
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Will the group keep a ceiling on the maximum and minimum
loan size?
What shall be the rate of interest and schedule of repayment?
Will the group levy a service charge on each loan to meet the transaction cost?
Will the group like to know the purpose of a loan sought by a member and her repayment plans before sanctioning a loan?
How will the group prioritize the credit needs of the members in case the existing group fund is less than the demand for loan?
How will the group ensure the realization of the advanced loan if any of the members defaults?
What are the probable effects of under utilization of the group fund by the members? How will you tackle this problem?
Points for reflection:
In order to meet the credit needs of all the members objectively
and without any preference or favor for one over others, it is necessary that the group evolve its on norms related to on-lending among the members.
To match the group fund with the demand for loan, scanning, prioritization, and rationalization of all loan requisitions need
to be done in compliance with the group norms in this regard.
Scanning of loan requisitions may be done with regard to the
purpose, amount, and intended repayment schedule of the loan; prioritization may be done to ascertain the comparative urgency of the members’ needs for loan; and, rationalization
may help to know the appropriateness of the needs for a loan within the overall objectives of the group.
Under utilization of the group fund is likely to result in loss of income to the group through accrual of interest, etc. Therefore,
the group needs to discuss and analyze the possible causes of low fund utilization and find a way to avoid this situation. Exploring the future loan requirements of the members may
help in this regard.
Formalities like updating the records, getting the signatures or
the thumb impressions of the borrowers, etc. need to be completed before the loan is finally disbursed.
4. Organize a session to enable the participants to carry out a
group monitoring exercise.
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[Process: monitoring and review are processes to check if everything is going as per the plan and the group is performing as
expected. They are tools of internal management of the group, which operate within the group’s stated goals and objectives. To
simplify this process goals and objectives are broken down into activities and indicators to be achieved within a certain timeframe. Accordingly, progress is measured. If the progress is
not as expected, barriers are identified and solutions are offered. Normally, monitoring & review in a self-help group is done through a meeting called for this purpose. Necessary outlines for
conducting such a meeting are given here. However, the following worksheet may further add to the group’s ability to carry out a
monitoring exercise. ]
Monitoring Design Worksheet
1 2 3 4 5 6 7
Objective Activity Deadline Indicator Progress Barriers Solutions
An Example: (Date of monitoring- 10.07.2001)
1 2 3 4 5 6 7
Objective Activity Deadline Indicator Progress Barriers Solutions Opening
group’s
bank
account
Preparation
of
necessary
documents
June 30,
2001
Typing or
writing
down the
text of the
document.
Securing
members’
signature.
Typing
complete.
A few
members’
signature
yet to be
secured.
Find those
members
and get
them to do
so.
Securing a
meeting
with the
bank
manager
July 15,
2001
Fixation of
an
appointment
with the
manager.
Appointment
could not be
fixed.
The
manager
is out of
town
Send a
letter
through
post.
Fulfilling
necessary
formalities
in the bank
and
securing
group’s
account no.
and a
passbook
July 30,
2001
--
--
--
--
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Session Guide (for the review of a one year old group):
Explain to the group the meanings of monitoring, review, indicators/parameters, and planned activities.
Ask the participants to simulate a group meeting of a one-year-old group with a fixed agenda to review the group’s
performance over the last six months.
As in earlier exercises, nominate the office bearers of the group
and ask them to take initiatives in facilitating the review meeting.
Ask the group to find out and enlist the parameters/ indicators/grounds on which it would review its performance.
Facilitate the group to do so by revisiting its goals and objectives for which the group was formed.
Ensure that each of the parameters/ indicators are discussed
and shared among all the members so that all have a chance to speak.
Sort out those parameters/ indicators on which the group has performed well from those on which it has not fared well.
Lead the group to think about the ways to improve the group’s performance in the areas in which it has not done well.
Based on the outcome of the above exercise, facilitate the group to prepare an action plan for the coming six months.
Notes for the trainer: Ensure that the following indicators/parameters to monitor and
review a year old SHG are included in the list prepared by the participants.
Indicator Trend
Members’ attendance in group’s meetings
Increasing, decreasing, or same level
Monthly savings Regular, not regular, very irregular
Total Savings High, moderate, or low
Income of the group Less than the group expenses, more than the group expenses
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Indicator Trend
Repayments of loans by the members
Very timely, timely only in a few cases, untimely, untimely in a few cases
Defaulting Frequent, rare
Group fund utilization as loans to members
Maximum, 75%, 60%, 50%, less than 50%
Repayment to Bank Regular, not regular
Members’ participation in group related activities, e.g.
meetings, decision making, problem solving, etc.
100%, between 100-75%, between 75-50%, or less than 50%.
Change/rotation in leadership roles.
Very frequent, less frequent, hardly any change or rotation
Problems faced during the last six months.
Narrate the problems
Mechanism to address those problems.
Narrate the mechanism employed
5. Organize a session to enable participants to develop skills in
managing contingencies during field implementation of an
SHG project.
[Process: contingency is something, which happens by chance, or without a warning. In implementing community projects, it is
necessary to identify, assess, and diagnose the important contingency situations that could occur so that the best decisions can be made. The contingency approach to project
implementation is to ensure that the community group is oriented and prepared to meet the unexpected demands of the situations in which they live and work. Following guidelines may
help the trainers to organize such a session.]
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Objectives
To understand the importance of managing
contingencies.
To develop skills in managing contingencies.
Materials Newsprint
Felt pens
Chalk
White/blackboard
Copies of handouts on the incident study (part I & II)
Learning Method
Incident study.
Session Guide:
Divide participants into groups of five or six members.
Distribute the handouts on the Incident Study (Part I).
Ask each group to read and discuss it by sharing ideas. Ask
them to develop a plan of action based on this.
Instruct each group to select a leader to present the plan to
the whole group.
Give about 15 minutes to complete the activity.
Handout on the Incident Study (Part I)
You are a member of a five-person team assigned to go on a mountain hike. The proposed hike is scheduled to start tomorrow and will take two days of climbing. You plan to begin the hike very early tomorrow.
The mountain peak, which is your destination, is about 950 ft. in height and almost three-fourths covered by forests. The flat land area below has water and camping grounds. The climb is expected to be very steep after the halfway point. People have seen bears and wild boars, but not many attacks have been reported. Snakes and other reptiles have often troubled hikers. There are many rare varieties of rare birds. According to the weather forecast, day one will be cloudy but there will be no rain. On day two, sunshine is expected, but rain is likely. There are no roads, but the footpaths of previous hikers could be traced. Your group has prepared a map to guide you to the mountain peak and you are following this map. You intend to camp the first night in a tent your group will put up and intend to start early the next day. Prepare a plan for the hike.
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Ask the leaders of each group to present the plan.
After all the presentations, ask the question: “Are you ready to face any unexpected situations? Allow each group to present
their viewpoints.
Distribute handouts of the Incident Study (Part II). Give them
a few minutes time to read it.
Ask the participants to go back to the same groups and
prepare an alternative plan.
Ask the group to consider what alternative actions they can
take. Let each group present its ideas. Discuss the importance of contingency plans.
Point out that given the same situation, different groups may
choose to employ different plans/strategies to achieve the same results.
Share with the participants a personal experience in a project where an unexpected situation occurred because of situational
factors. Explain how the situation was managed.
Ask the group whether they have faced similar contingencies
in their work situations. Request two or three volunteers to share their experiences in handling unexpected situations.
Reflect on experiences highlighting the need to manage contingencies. Explain to the group the significance of
contingency management in the context of formation and development of a Self-help group project.
Sum up the session synthesizing the major learning points.
Handout on the Incident Study (Part II)
You had a very successful first day. Your team was on schedule. You spent the first night in the tent. Today is day two and you are ready to start the hike to the summit of the mountain. A torrential rain comes down, as you are about to start the journey. It rains for three hours and when it stops you find that a huge mass of earth has washed down as result of an earth slip, wiping out the pathway completely. Prepare a plan of action to handle this contingency.
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Points for Reflection:
Emphasize the following points:
Unexpected events can happen and community projects are no
exceptions.
Community projects operate as open systems, constantly
interacting with the environment, and managing contingencies is and essential part of this process.
There are no definite ways of handling contingency situations but we must prepare ourselves for unforeseen circumstances.
Contingencies should be handled in a way appropriate to the context.
6. Hold a session to enhance the problem solving abilities of the
target group.
[Process: problems are natural in the life of any group, be it a self-help group or otherwise. Forging an alliance of people into a
self-help group in itself is an outcome of the problems faced by them as individuals. We may therefore see that if taken positively problems serve to increase our ability to face the challenges of
life. On the other hand, however, if they are taken as liabilities, then the chances of getting bogged down get higher. What is more
important, therefore, is to accept problems as they come and try to develop in us an attitude for solving them. Following exercise is aimed at enabling the participants to gain experiences in
handling problems related to the day-to-day transactions of a self-help group.]
Learning Method:
Mock session on Problem Solving,
Group Discussion.
Session Guide:
Divide participants into groups of 7 each.
Instruct each group to think itself as an SHG.
Facilitate the selection of a chairperson and a coordinator in
each group.
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Assign each group a task involving a problem situation, which
has supposedly occurred in it (a few examples of such situations are given in the ensuing box).
Ask the groups to discuss their assigned problems among the
members and come with a solution.
Give 30-40 minutes for this purpose.
Call all the groups back for making presentations to the larger
group.
After each presentation, initiate a discussion on problem of
each group and the solution it came out with. Encourage the participants to visit the issue from all angles.
Examples of Problem Situations in an SHG
Situation 1: Savitri, a member of your group, has fallen sick
and needs a sum of Rs 200 urgently. The monthly group meeting for this month has already taken place. There is still a couple of weeks’ time left for next monthly meeting to take
place. How will your group solve the problem of Savitri? Situation 2: Kamala owes a sum Rs. 300 to the group. She did
not pay the principal amount for three months. In every meeting, when the members raise the issue, she tries initially
to plead her inability to repay the loan. Later on, she starts shouting at the top of her voice saying, “What is the group for if not to support the poor!” how does your solve this problem?
Situation 3: 3-4 members in your group have threatened to
drop out complaining their dissatisfaction with the behavior of the leader and a few others. Do you just allow them to leave? Discuss and try to solve the problem.
Situation 4: attendance in you group is becoming a problem, as members are not regular and many out those who are
comparatively regular are latecomers. When asked by the group leader, members normally reply, “We have a lot of household
work which keeps us very busy everyday. We do not have leisure time to roam about like you.” What will your group do to solve the problem?
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Notes for the Trainer:
During discussion, try to bring out the following points:
Situation 1: The group does have a role to meet the emergency needs of the members and hence, it should think of some mechanism to meet such exigencies. One way to do this is to
earmark some amount for this purpose. Situation 2: All the members have to abide by the norms framed
by the group as a collective decision. It should be made clear to all members that the group is to help the poor who wish to help
themselves. Shrugging off the responsibility of regular repayment in the name of helplessness is only counter productive and hence, cannot be allowed.
Situation 3: Autocratic leadership or domination of a few in the
group can destroy the group. The group leaders should be guided to be participatory and democratic in their approach. Rotation of leadership roles is a way to avoid such situations. This also helps
to ensure the participation of all, gradually over a period of time. Members also have a responsibility to take active part in the group activities and contribute to the well being of the group.
Situation 4: The members of a group have the responsibility of
attending their group meetings regularly and in time. Workload at home cannot be an excuse to remain away. Genuine problems can be attended by adjusting the time frequency, and venue of
the meeting.
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CHAPTER 6
Basic Records of a Self-Help Group
ince the SHGs often deal with the collective money of the
individual members, maintenance of the books of accounts
and other group records becomes necessary to ensure
transparency and efficient functioning of the group.
In the beginning, the group depends on the enabling agency to
introduce and maintain all these records. However, as the group
develops and acquires basic skills of running an SHG, it takes
over the responsibilities of maintaining these records.
The enabling agency should ensure the introduction of the least
complicated system of records so that the group may maintain
them easily. As the group’s fund grows, employing a bookkeeper
or an accountant may be thought of.
In order to manage and monitor their affairs effectively, the
following group records are commonly maintained by self help
groups ––
6.1 Cash Book
ashbook is the most important record of the group. It is a
book of prime entry where all cash transactions done
during the course of a meeting are recorded.
S
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All the cash transactions of a group during a particular time can
be categorized either as receipts or payments of the group
during that time. For example, when a member deposits her
monthly saving to the common group fund, it is termed as
incoming money, hence recorded as a receipt in the cashbook.
Similarly, if the group advances a loan to any of its members or
spends money otherwise, it is termed as out-going money, and
hence recorded as a payment in the cashbook.
To be more precise, we can say that any money coming to the
group is a receipt whereas any money going out of the group is
a payment.
A cashbook therefore is a record, which shows all the cash
receipts and cash payments of the group made at a particular
point of time.
In a cashbook, receipts are shown on the left hand side of the
book whereas payments are shown on the opposite side of the
receipts, i.e., on the right hand side of the book. All the receipts
and payments are totaled after a day’s transactions and the
cash-balance in the book is tallied with the physical cash in the
cash-box. It ensures two things - whether the entries in the
cashbook have been made correctly and whether any money is
missing from the cash-box.
Receipts
of the
Group
Payments
of the Group
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A few examples of cash receipts are membership fee, loan
processing fee, fines and penalties levied on the members,
savings from the members, loan repayments received from the
members, grants/loans received from bank or development
agencies, interest on loans from the members, interest on the
deposit of money in the bank, cash withdrawal from bank, etc.
A few examples of cash payments are loan disbursals to the
members, interest on savings paid to the members, salary to
accountant, loan repayment to external sources, transportation
and other expenses of the group, deposits to the bank, etc.
In the following table a specimen of a cashbook is illustrated by
showing the columns of receipts and payments –
Date Particulars LF Amount
In Rs
Date Particulars LF Amount
In Rs
1.1.99 Savings
Penalties
Interest
(On loans
advanced to
the members)
1
5
7
400
50
50
1.1.99 Loans
Salary
Interest
(Paid on the
savings of the
members)
10
4
9
40
100
60
Total
Receipts
500
Total
Receipts
500
Total
Payments
200 Total
Payments
500
Balance 300 Balance
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6.2 Ledger Book
ontrary to a cashbook, which is a book of prime entry, a
ledger is a book of final entry, which contains accounts of
all types under different heads.
It is also called the principal book of account as all the financial
statements are extracted through the general ledger balance
only.
The ledger helps us to get all necessary data at one place, since
all types of entries are recorded in it under different specific
heads.
Separate pages are maintained to record transaction of one
type; for example, all expenses on salary to the accountant will
be on one page. Likewise, all the savings of the members will be
recorded on one page and all the advances as loans to the
members will be recorded on another page.
If the group wants to know how much money it has spent on
traveling to bank during the last month, it can know by looking
into the traveling head account recorded on a specific page of
the ledger.
A ledger may have in it member-wise separate sheets for the
monthly and voluntary savings deposited by them. Likewise, it
can have borrower-wise separate sheets for the loan advances
availed by them from time to time. However, the group may
maintain separate ledgers for these purposes if it finds it more
convenient. They may be called savings-ledger and loan-ledger
respectively.
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A loan-ledger, for example, may have entries like the name of
the borrower, amount and purpose of the loan availed, date of
disbursement, total repayment period, installments for
repayment, rate and total amount of interest, processing
charges, total amount payable by the borrower, penalty in case
of late payment, penalty in case of non-payment, etc.
To further illustrate what a ledger is or how it is written, a
specimen format for members’ monthly savings is given below: -
Page No. 29
Name of the Account Bank Account
Date Particulars C/B
Folio
Deposit Withdrawal Dr./Cr. Balance
1.2.99 Cash
deposited
1 1000 Dr. 1000
7.2.99 Cash
withdrawn
5 200 Cr. 800
17.2.99 Cash
deposited
8 500 Dr. 1300
18.2.99 Cash
withdrawn
8 700 Cr. 600
22.2.99 Cash
deposited
10 800 Dr. 1400
27.2.99 Cash
withdrawn
12 400 Cr. 1000
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6.3 Pass Books
assbooks are members’ records of her savings created,
loans raised, interest accrued on savings, interest paid on
loans, withdrawals made from the savings, penalties paid for
late repayment of loan, etc.
These passbooks are very much like those of banks given to the
account holders. Separate passbooks may be created for savings
and loan transactions of the members. Even separate colors
may be assigned to them for easy identification and use.
Below is given a specimen format of a member’s savings
passbook: -
Name of the Member – Savita Devi; W/O- Gheesu Mal
Age- 40 Years; Address- Premnagar, Lucknow (UP).
Date Amoun
t Saved
Amount
Withdraw
n
Savings
Balance
Interest
on
Savings
Cumulativ
e savings
Treasure’s
Signature
1.2.99 100 Nil 100 Nil 100 Sd/-
7.2.99 100 Nil 200 Nil 200 Sd/-
17.2.99 100 Nil 300 Nil 300 Sd/-
18.2.99 100 50 350 Nil 350 Sd/-
28.2.99 150 Nil 500 5 505 Sd/-
P
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6.4 Minutes-cum-Attendance Register
his register contains the proceedings of the meetings held
by the self-help group from time to time. Generally, the
proceedings of a meeting cover the mention or details of the
following items: -
Date, timing, and venue of the meeting,
Names of the present and the absent members,
Agenda of the meeting,
Members who chaired and coordinated the meeting,
Names of the recently joining members,
Names of the members, who dropped out,
All group decisions regarding financial and non-financial
matters, and
Signatures of all the attending members
A properly maintained minutes book is likely to show how the
group has evolved its various systems and procedures over the
years.
The normal practice is that at the end of a meeting its minutes
are read out to all the members for obtaining their confirmation,
which the members do either by affixing their signature or
thumb impression at the end of the page containing the
minutes.
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6.5 Financial Auditing in a Self-Help Group
uditing is a systematic verification of books of accounts by
an external person, other than the book writer or the group
members. The broad objective of auditing is to ensure proper
maintenance of the books of accounts of an SHG. However, in
addition, it serves the following purposes:
To promote financial accountability and transparency in the
management of an SHG.
To find out and rectify errors and omissions, if any, in
maintaining the records and books of an SHG.
To strengthen the SHG’s accounting system.
To confirm the income, expenditure, assets, and liabilities of
the group.
To promote recognition and credibility of the group.
To use it as a reference for future financial planning and
decisions.
A
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EXERCISES
1. Hold a session to enable the participants to realize the
importance of record keeping/maintaining accounts for the better management of an SHG.
[Process: maintenance of the books of accounts and other group
records is necessary to ensure efficient functioning of an SHG. It also ensures transparency in the financial matters of the group. Initially, every group depends on the enabling agency for
maintaining its records. However, with the passage of time it is expected of it that it acquire basic skills for doing so. Therefore, at
some stage of group development it becomes necessary that the group realize its responsibility of managing its finances without the agency’s support. The following session is designed to help
the trainer in organizing a session to emphasize the importance of bookkeeping in an SHG.]
Name of the Activity:
Money Game
Materials required:
Paper money,
A sample of various books of accounts and other documents
used in SHGs,
Chart papers and markers
Session Guide:
Start your session with a very brief introduction of the activity
for the session (do not disclose the plan of the game).
Ask a volunteer from the group to distribute the paper
currency to a few participants.
Ask her to take the money back and redistribute it among the
other participants.
Again, ask her to recollect the money and redistribute it
randomly among a few participants.
Repeat this process 4-5 times.
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Now, ask the volunteer to recall how much money she
distributed and to whom in each turn.
Similarly, ask the participants to tell how much money they
received in each turn.
Note to the trainer:
It is clear that neither the volunteer nor the participants would be able to recall exactly the monitory transactions, which took
place during the game. Therefore, lead the group to think over what might happen if transactions are not recorded in an SHG.
The trainer, consequently, may emphasize to the group that frequent transactions cannot be remembered after a while and
hence, have to be recorded somewhere.
2. Hold a session to give participants an introduction of the various books of accounts and other documents used in an
SHG.
[Process: the kind of books of accounts and other records used in an SHG would depend upon the procedures and accounting
norms adopted by that SHG. However, the enabling agency has a very definite role in introducing the least complicated system of
records so that the group may maintain them easily. The trainer may use the following session to introduce books of accounts and other records used in an SHG.]
Materials required:
A sample of various books of accounts and other documents used in an SHG
Learning Process and Methods:
Demonstration,
Learning in small groups,
Lecture and Group discussion.
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Session Guide:
Display all the books of accounts and other records one by one to the participants.
Pas around each type of book/record and explain how they may be identified.
Now, divide the participants into as many groups as the books/records may be.
Name each group by a particular book name such as cashbook, passbook, etc.
Introduce briefly the role of each book/record in an SHG.
Give 15-20 minutes’ time to each group to remember its role
as a particular book or record in an SHG.
If the groups are literate, then they may be asked to write
down their role on a chart paper.
Call the groups back and ask them to introduce themselves
one by one to the larger group.
Note to the trainer:
If time allows, the same exercise may be repeated by exchanging the roles of the smaller groups.
Similarly, you may organize a small quiz to reinforce the learning of this session.
The session should focus on the bigger picture of record-keeping and not small details of each record. It is important
that members understand the contents of each record and the logic and importance of it; yet, they may not be expected to understand what goes into each row and column of all the
records. The purpose is solved if they understand the link and logic behind all the records.
Copies of the formats of group records may be distributed to all the members to enable them to identify and get a hang of it
and its broad structure.
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3. Hold a session to highlight the importance of forming
federations of self-help groups.
[Process: federating SHGs is useful to the project implementing agency and the unit SHGs both. Reasons enumerated in chapter
5 of the manual evince this fact well. However, a practical session establishing the importance would surely have far reaching
impact upon the listeners. The trainer may use the following exercise to hold such a session.]
Methodology:
Demonstration
Materials:
Around 150 marbles
One bundle of twine
One pair of scissors
Session Guide:
Drop all the marbles on the floor of the training room.
Tell the participants that marbles placed here and there
represent villages.
Villages cannot be shifted, but people in the villages can move.
The task before the participants is to link all the villages.
Allow the participants to work on it for about 15 minutes.
Notes for the Trainer:
Facilitate the group to link up around 10-20 nearby villages by
encircling them with the help of a piece of twine.
Once all the villages are encircled in separate circles, facilitate
them to link all the circles with one another using small pieces of twine. The structure may appear as the following given below.
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Link the emerging structure with that of a federation of SHGs.
Analyze the experience of the exercise in the light of the
concept and need of federating SHGs.
4. Hold a session to familiarize the participants with the basic
documentation required in sanctioning a loan.
[Process: loan processing is an important group activity. Associated with it is the need to properly document it in corresponding books and records of the group, the skill for which
comes only by way of practice. Therefore, a session on this is supposed to largely focus on initiating a learning-by-doing exercise in the group, preceded by a theoretical briefing of the
procedure. The trainer may follow the following guidelines to organize a matching session.]
Materials:
Four or five sets (samples) of all the documents required for processing and sanctioning a loan.
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Learning Method:
Lecture and Group Discussion
Session Guide:
Emphasize to the group that recording the details of a loan in the books of accounts and other group records is vital for the
proper functioning of the group.
Tell them about the books and other group records, which are
required for this purpose.
Demonstrate and circulate those records among the
participants, if they are not already familiar with them.
Explain to the participants the procedure to be followed while
processing and sanctioning a loan.
Now, divide them into groups of 4-5 members each.
Documents required for sanctioning a loan
Loan application from the member
Minutes or resolution book
(Where the decision to lend or not is recorded)
Agreements
(It is optional and to reconfirm and validate the terms & conditions)
Promissory note (optional)
(It is optional and to reconfirm and validate the terms & conditions)
Cheque Book
(If the group follows the practice of issuing
loan by cheque only)
Loan ledger
Vouchers
Cashbook
Individual passbook
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Ask each group to simulate a group meeting where members
are to process a loan application of a particular member.
Give each small group a pre-decided task on processing and
sanctioning a member’s loan application.
Ask them to follow the procedure narrated to them.
Coordinate them closely or assign a separate facilitator to each group. Provide on-the-spot-help wherever necessary.
Spare an hour for this exercise.
Call the groups back and ask them to report to the larger
group one by one, on how it accomplished the task.
Hold a debriefing session and sum it up.
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CHAPTER 7
Some Guidelines for Field Workers
ealing with people of different socio-cultural milieus,
especially in a rural setting, is often a challenging task. It
is in this sense that formation and development of self-help
groups in a rural setting or in a disadvantaged urban
community setting, where people may not be having experience
of a formalized group life, is challenging.
Keeping this in mind, certain work guidelines are presented
below which may be referred to while working as a field worker
or a group facilitator.
7.1 Tools to Conduct a Situation Analysis
Before you actually go on board for organizing a self-help group,
you need to make an analysis of the community from various
angles such as the socio-economic status of the members,
resources of the community, potentials for savings, credit needs,
available sources, women’s status, identification of the poorest
members, etc.
Data on all these checkpoints help you to plan your steps for
the formation and development of self-help groups in that
particular community.
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This pre-group formation exercise is often referred to as
situation analysis, which we have already discussed in section
2.1.
It is a guided enquiry into the conditions of the community and
the impact they have on different sections of people so that
planned interventions may be taken up for achieving the project
goals.
In the following sections, let us examine in brief some of the
tools, which are commonly employed in conducting a situation
analysis:
7.1.1 Participant Observation
Participant observation is an effective method of in-depth study
in a small community situation. It usually involves living in the
community under study for a small period, say a couple of
weeks or a month.
The main idea is to participate in community life as fully as
possible, keeping detailed notes of what is heard, seen, or felt
about the subject under study.
This approach is a mix of observation, discussion, and informal
interview. Its success depends both on gaining acceptance in
the community and on careful recording of all that has been
observed and discussed.
A participant observer has the advantage of gaining access to a
continuous flow of information emanating right from the heart
of the community.
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7.1.2 Case Studies
A case study scans deeply a typical case in a group. A skillful
inquiry into a case can reveal a rich and a lively picture of the
group it belongs to.
Although a case study does not give a generalized statistical
data on the subject of its inquiry, it does provide valuable
insights into it.
For example, to know what the credit needs of women in a rural
area are, you might look at just one village and study it as a
typical case.
7.1.3 Key Informants
It is often possible to collect valuable information from a few
members of the community who are particularly knowledgeable
about certain matters. Some of the examples are community
leaders, health workers, schoolteachers, extension workers, etc.
Key informants are most reliable on factual matters, such as
services and facilities available to the community. Even their
opinions and evaluations are helpful in understanding the
community, but for a wider view you need to follow up with a
survey or other research methods.
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7.1.4 Individual in-depth Interviews
In-depth interview is a valuable tool as it can be used in a
number of social research methods.
An in-depth interview differs from the interview held with the
key informants in as much as the former is more open ended
and is far wider in scope. An in-depth interview can be
unstructured or semi-structured as per the requirement. The
aim of an in-depth interview is a shared exploration of the
issues without the researcher imposing his or her ideas.
Individual unstructured or semi-structured interviews are
especially suitable for work on attitude, opinions, and for
dealing with sensitive topics.
Aim for a small sample of about thirty people in exploratory
interview surveys. It is important to include a wide range of
community opinion.
7.1.5 Social Surveys
Social surveys use specially designed interview forms in which
the range of possible answers to each question is known in
advance. They are often listed on the interview form, so that the
interviewer simply marks the appropriate reply.
When the range of answers is not known, the study designer
conducts a pre-test or pilot survey to test the questions and see
what answers are given.
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When the community of interest is small (say, less than 200
households), you may perform a complete (100 per cent) survey.
In larger communities or in urban areas you will have to choose
a sample of households for interview. All types of people in the
community must be properly represented in the sample.
7.1.6 Group Discussions
In group discussions, which are also called ‘focused group
discussion’ sometimes, the interviewer guides a conversation
among a small group of six to ten members of the community of
interest.
A wide discussion on relevant issues and concerns are
encouraged and the opinions of the community members are
learnt.
You should hold several group discussions to include a wide
range of community opinion. It is advisable that the members of
the discussion group are of the same sex and they share a
similar background. This helps the members to be at ease with
one another and state their views without hesitation.
7.1.7 Wealth Ranking
Wealth ranking is a PRA (Participatory Rural Appraisal)
technique, which is often used to identify the clusters of
households according to well-being or wealth, including those
considered as the poorest or the worst off.
To conduct a wealth ranking exercise in a village or community
you may take help of the following steps: -
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► With the help of a local key informant, make a list of all
the households of the village/community.
► Prepare as many cards of the size of 2 x 3 inches as are
the households in the village/community.
► Assign a card to each household and write the names of
the head of the family and the spouse on it.
► Assign each card a serial number on its back like 1, 2, 3,
etc. for example, if there are fifty households prepare 50
cards and on their back write numbers from 1 to 50 in a
serial.
► Take one person aside and ask him to identify from the
cards the poor, the better off, and the rich in the
village/community by putting the cards in three separate
piles. This done, ask him if he would like to make any
correction.
► Note down the list of the household as categorized by him.
► Ask him on what basis (like land ownership, asset
ownership, govt. service, business, etc.) he categorized
people into different piles and note down his explanation.
► Verify wealth ranking by doing it with 2-3 people of the
village/community separately.
► In the end, you will have a list of the people of the
village/community in the order of their wealth status. You
may additionally have a list of indicators upon which
people define poverty.
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7.2 Focusing on Women in SHG Formation
7.2.1 Women have shown more fiscal discipline than men in any
savings and credit program world over.
7.2.2 Women in poor households have a natural flair for utilizing their
savings and credit to the benefit of the whole family.
7.2.3 Risk of providing loan to poor women is relatively much lower
than the risk of providing loan to poor men.
7.2.4 Simple, less expensive, and easily accessible credit through
informal micro-finance programs is an important factor in
helping women on their way to self-empowerment.
7.2.5 Women have the potential for becoming a significant contributor
in increasing the cash flow of her household provided she has a
way to create a saving and has access to timely credit.
7.2.6 Women’s success in self-help programs enriches their quality of
life in social aspects also. They gain self-confidence and due
respect in family and community.
7.2.7 However, mere provision of credit to women in a male
dominated society is likely to result in the use of women as a
front for accessing easy credit without involving them in
decision-making process for utilizing the credit and the benefits
accrued thereupon.
7.2.8 A self-managed group or a self-help group not only provides a
mechanism to pool in their regular savings in a common fund
but also provides access to outside financial services and
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facilitates a process of women’s empowerment. It helps them to
articulate their common issues and concerns and generate
strength to deal with those issues and concerns in a very
positive way.
7.2.9 A well-managed SHG has the potential to operate as a small but
efficient banking institution to deliver savings and credit
services to its women members and to provide a safety net for
critical periods in their life.
7.3 Interacting in the Community and the Group
7.3.1 The group members generally look upon the field worker as a
role model for all issues concerning the management and
operation of the group affairs. Not only that, other community
people, being somewhat skeptical of the motives of the
development agency initially, also keep an eye over him/her. It
is therefore necessary that the field worker convey the right
message through his/her disposition and outward behavior
right from the beginning.
7.3.2 Sounding different from the community should be avoided as far
as possible. One should try to present oneself in a very simple
way and polite language, but with a firm conviction.
7.3.3 To know people individually, outside of the meetings, by
spending time with them at their houses and fields could be
very rewarding. This helps to build trust between you and the
group.
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7.3.4 A prior sequencing of your activities and scheduling of time
before you set out for a visit to the community helps you to be
in command of yourself and your work in the field.
7.3.5 Be observant of people’s behavior during a meeting, which is
often of different kinds. It will help you in knowing who among
them are active or very active, who are only fence sitters or
passive followers, and who are born pessimists or opposition
leaders.
7.3.6 Be observant, more importantly, of your own feelings, biases,
and values during your interactions in the field. These may act
as undesirable hindrances between you and the people you are
interacting with due to differences in respective cultural and
social backgrounds.
7.3.7 It will be a wrong idea to assume that people are understanding
and absorbing whatever they are listening or hearing, just
because they are agreeing and nodding their heads in
affirmation. There may be many blocks to effective
communication between you and your audience, for example,
your language or dialect, your speed with which you are
speaking, the subtlety of the idea you are conveying, or the
inattentiveness of the listeners. It is therefore always desirable
that you ask for feedback from individuals in the group on
matters that have been discussed.
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7.4 Facilitating Group Meetings
7.4.1 For a field worker it is necessary that he/she keeps a close track
of various group processes and is able to observe, identify, and
analyze the group dynamics properly.
7.4.2 Identifying group dynamics means understanding the behavior
pattern of the group members in the group situation. For
example, it is useful to know who are the members who do not
participate in the meeting and why, who are the dominating
ones and how they inhibit others from coming out in the front,
what sub-groups exists and how they affect the cohesiveness of
the group; and who are the members who have dropped from
the group and why.
7.4.3 Leadership in the group needs to be identified from the very
beginning and the field worker should make conscious efforts in
encouraging and preparing members to come ahead and take on
group tasks without hesitation.
7.4.4 Leadership serves to act as a referral point for the whole of the
group and makes them easier to function as a group. In the
absence of pronounced leadership, there is always a danger that
the members keep identifying only the field worker as their
leader. As a result, the development of the group as a cohesive
unit is thwarted.
7.4.5 Always talking of savings and credit may at times become
monotonous and boring to the members and hence a change in
routine is likely to liven up their spirits and refresh their
interest in the group. Any additional activities such as a session
on learning to write their names, sharing their common
problems, or organizing cultural events may go a long way in
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179
preparing them for more active participation in the routine
activities of the group in future.
7.4.6 Transparency in financial transactions of the group must be
maintained at all levels. The field worker plays an important role
in setting fiscal discipline in the group from the very early days
of group formation. Without a sound fiscal discipline, the group
is most likely to disintegrate.
7.4.7 Therefore, barring emergencies all financial decisions must be
taken in the group meetings only.
7.4.8 All the group norms should be fixed by mutual agreement of the
members and must not be pressed upon by the field worker in
any case. All that a field worker can do in this regard is to
suggest various alternatives to the group and facilitate a process
to select the most appropriate from amongst them.
7.5 Loan Repayments and Monitoring
7.5.1 Rotation of group fund, which is known as revolving fund, is one
of the main tasks of a self-help group. For the group fund to be
always in rotation, it is necessary that the members observe
strict discipline in loan repayments.
7.5.2 However, one of the recurring problems in a group could be
delay in repayments of loans raised by the members or even
non-repayments in certain cases.
7.5.3 Causes of late repayments of loans in a group may vary from
case to case. In case of consumption loans, delay may be
because of lack of income or a regular flow of income to the
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borrower. Similarly, in case of a loan to purchase productive
assets for income generation activities, it could be the gestation
period required for the income to take place.
Therefore, to deal with the problem adequately, it is necessary
that the field worker and the members know the exact reasons
behind them. To avoid or minimize such an occurrence, the
group should go through a thorough repayment assessment
before sanctioning a loan to a member. A matching and
practicable repayment schedule should be devised to allow the
borrower a reasonable time schedule.
7.5.4 Only under compelling circumstances, the repayment schedule
should be revised in between, as it will set a bad precedent for
other members.
7.5.5 Any case of late repayment must be discussed in the group
openly and all the members should be consulted for exploring a
possible solution.
7.5.6 The group must be reminded of the fact that late repayments
may turn into no-repayment of loan unless strict monitoring is
done. Non-payment of a loan is actually a loss to the whole
group; hence, the group must act collectively for maintaining a
fiscal discipline and monitoring over repayments.
7.5.7 In case of intentional late repayment or non-repayment, the
group needs to take prompt and firm action. However, it is
important that the pressure must be exerted by the group and
not by the field worker directly.
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7.6 Various Financial Transactions within a Group
n any self-help group, especially those created around the
theme of savings and credit, monetary transaction has a key
role to play. Hence, it becomes important for a field worker, and
the members of a group as well, to know about the different
components of the financial transactions of the group such as
the liabilities, income, and the expenses of the group.
7.6.1 Capital of the Group
The capital of the group consists of the following components –
Individual savings of the members,
External loans from the development agency or bank, and
Its own net income after meeting all expenses.
The first two of these are borrowed capital and hence they are a
liability of the group; they are supposed to be paid back to the
members or to whatever sources they have come from.
7.6.2 Income of the Group
The income of the group may consist of the following
components:
Membership fee
Interest charged on loans
I
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Interest on money in the bank
Loan processing charges
Fines and penalties
Miscellaneous receipts
(Such as a grant from the development agency, etc.)
7.6.3 Expenses of the Group
The expenses of the group are the sum total of the following –
Personnel and Administrative cost,
(Accountant’s salary, stationery, transportation, etc.)
Financial cost, and
(Interest paid on the savings of the members, interest paid on
external capital)
Bad debts (Non realized loans),
7.7 Common Reasons behind breaking up of a
Group
Members’ unrealistic expectations from the group such as
monetary benefits in terms of grant
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Acrimonious sub-groupism within the group based on
outside-the-group relationships of the members
Slandering and misinformation campaigns by the people
(such as moneylenders, husbands of the women members,
etc.) whose interests are harmed by a strong self help group
of women.
Caste conflicts among the members or sharp disparities in
their socio-economic status
Lack of transparency in financial transactions of the group
Poor record keeping and overall mismanagement of the
group’s affairs
Lack of leadership in the group
Non-participatory and non-democratic functioning of the
group causing grievances and lack of collective group effort
Lack of vision as to what the group should do next after a
certain period, say 3-4 years, of successful savings and credit
activities.
Most importantly, delayed repayments of loans by the
members and instances of default leading to de-capitalization
of the group’s revolving fund.
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EXERCISES
1. Hold a session to familiarize members with the different tools
of data collection for analyzing and understanding the various components of a community.
[Process: familiarizing participants with tools of data collection
may take more than one session, as they are quite a few such as participant observation, case study, key informants, individual in-depth interviews, social surveys, group discussions, and
wealth ranking. Conceptual inputs on these tools given in the preceding chapter may be used during these sessions. As regards
the learning method, it may be different for different tools. Tools like in-depth interview and group discussion could very well be introduced by holding mock sessions on them, followed by a
debriefing by the trainer. Similarly, for introducing tools like participant observation and key informant, simulation method
may be tried. The trainer may organize a short field visit to enable the participants to learn the skills of conducting social surveys and wealth ranking exercise. A similar method to introduce the
tool of case study may be devised.]
2. Organize a session to bring in focus women’s performance in
the formation and the running of self-help groups.
[Process: as we mostly work on women’s SHGs (reasons given in the concerned section of the chapter), holding a session to highlight their performance in this field serves to motivate and
encourage them to come out of their psycho-social blocks, if any. In addition, it gives them a vision for their own involvement in a similar pursuit. Presenting a case study, conducting a role-play,
or organizing a video show, bringing attention to women’s feat through an organized effort, could very well serve to the success
of such a session.]
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3. Hold a session to emphasize finer points to remember while
interacting with a community and probable group members.
[Process: as has been said earlier, the group members look upon the field worker as a role model. Even the community people
watch him/her closely. Therefore, it is necessary for the field workers to convey the right message through their disposition
and outward behavior. Any slackness in this regard may cost the agency people’s faith in it and hence, the very objective of the project may get jeopardized. Therefore, organizing a session on
this must be taken in right earnest by the trainer. A role-play highlighting negative qualities in a field worker and consequent
disadvantages can hold the session well. A poster or a case presentation focusing on dos and don’ts of a community field worker may further supplement the session.]
4. Organize a session to impart useful tips to the participants
on facilitating group meetings and learning facilitation skills.
[Process: a skill can hardly be imbibed in isolation of hands-on
experience. Therefore, learning of facilitation skills can be made possible only by exposing the participants to real field situations, which they get in course of their field job, or through a pre-
organized field assignment and making a structured follow-up. However, providing tips in a classroom situation and initiating group discussion on them does help in orienting their frame of
mind suitable to field requirements. Therefore, the trainer may organize a slide show depicting useful tips on facilitating a group
meeting and eliciting comments and inputs from the participants through intelligent questioning.]
5. Organize a session to enable participants to learn and
calculate various components of a group’s financial transaction such as its income, expenses, capital, etc.
[Process: ability to calculate depends much on the numerical
literacy (numeracy) of the SHG members. In village or in communities, where the SHGs are formed, the level of women’s numeracy is generally low. That is why, in most SHGs an external
book writer is hired. However, it is expected of all the members that they are at least familiar with various components of
financial transactions, which the group undertake. Therefore, a session to enable the participants to gain an understanding of these components will be in right place, irrespective of the fact
that the members are literate or not. Outlines given below would help the trainer to organize such a session.]
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Learning Method:
Probe in the large group
Session Guide:
Pose the following questions to the participants one by one –
► What are the sources of income of a group?
► What are the possible expenses of a group?
► What is the capital of a group?
► What the group owes?
► What the group owns?
Depending upon the discussion on each question, make a
table, as shown under, containing responses under each question head.
SN Particulars Responses Example
a. What are the incomes of a
group?
b. What are the expenses of a group?
c. What is the capital of a group?
d. What the group owes?
e. What the group owns?
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Make sure that the following components are included in the
responses’ column of each question.
SN Particulars Responses Example
a. What are the sources of income of a group?
(Calculated here on monthly basis)
Membership fee, 25.00
Interest charged on loans, 50.00
Interest on money in bank, 10.00
Loan processing charges, 50.00
Fines and penalties, 10.00
Miscellaneous receipts (such as a grant, etc.)
50.00
T O T A L 195.00
b. What are the possible expenses of a group?
(Calculated here on monthly basis)
Admn.
cost,
Accountant’s salary,
50.00
Transportation, 25.00
Stationery 15.00
Finan.
cost,
Interest paid on members’ savings,
15.00
Interest paid on external capital
20.00
Bad debts (non realized loans)
20.00
T O T A L 145.00
c. What is the capital of a group?(Calculated here on half-yearly basis)
Members’ Individual savings
5,000.00
External loans 10,000.00
Group’s net income after meeting all expenses
300.00
T O T A L 15,300.00
d. What the group owes?
(Calculated here on half-yearly basis)
Capital from outside (NGO, Bank),
10,000.00
Members’ individual savings
5,000.00
Group’s net income after meeting all expenses
300.00
T O T A L 15,300.00
e.
What the group owns?(Calculated here on half-yearly basis)
Cash and deposit in bank, 4,300.00
Loans with the members 11,000.00
T O T A L 15,300.00
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Explain the meaning of each component used in the above
table.
Tell the participants that all the above calculations are done
for a specific period, say weekly, monthly, half yearly, or annually.
Present a few examples for each type of component such as
income, expenses, etc as given in the example column.
Tell that the statements of accounts covering the rows (d) and
(e) actually present a balance sheet of an SHG.
Brief the group that similar balance sheet should be prepared
and reviewed by the group periodically, to monitor the financial status of the group (the trainer/facilitator should
note that what group owes and owns always balance).
Explain to the participants that a comparison of rows (a) and
(b), involving income and expenses respectively, reflects financial sustainability of the group.
In the example cited above, it is clear that the group is managing a net monthly income of Rs. 50/- (monthly income
Rs.195 - monthly expenses Rs.145 = Rs.50), which proves its financial viability.
In case the income of a group is less than its expenses then
the group runs into loss and needs to take corrective measures lest it should fall apart.
After sharing the example, emphasize that similar income and expenditure account should be prepared and reviewed
periodically by the group to ensure that the group becomes financially sustainable.
Notes for the trainer:
While probing through the questions, women should be encouraged to respond.
All the responses should be verbally repeated, to reinforce the line items that constitute costs, income, liabilities, and assets.
Explain to the members that savings is not an income of the group; the group rather uses it for extending loans to its
members. Hence, it is in everybody’s interest that timely repayments of loans by the members are ensured.
Clarify that members’ savings and external loans are borrowed capital and hence, they are liabilities of the group; they are
supposed to be paid back to the members or to whatever external sources they have come from.
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Emphasize that before ending a day’s meeting, the book
keeper/treasurer needs to share basic financial information such as day’s cash collection and disbursement, cash-in-hand and cash-in-bank, total group fund, etc. with the group.
You may share with the group that income and expenditure account may be prepared every quarter, to keep abreast of the
group’s financial health and take corrective measures, if required.
6. Hold a session to emphasize common reasons behind
breaking up of a group
[Process: the task of a group facilitator/field worker does not end with the mobilization of prospective group members into forming
a self-help group. Long term sustainability of the group, in terms of financial and organization viability, has to be ensured both by
the facilitator and the group members, especially the group leaders, in various ways. Therefore, it is important to know the factors and reasons, which normally bring harm to the feelings of
goodwill, cooperation, and neighborliness among the group members, and consequently lead to the disintegration of the group. The text on this issue given in the preceding chapter may
be used in a session on this subject. As regards the learning method to be employed for the session, much will depend on the
approach of the trainer and the level of participants in question. Ordinarily, one may think of methods like a case presentation, a slide show, a role-play, or even a poster presentation.]