1. section a: Agenda bua@AC

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2.3What does the Current Context mean to our Current Plans?

Post 1994, a big chunk of foreign donor funding for health programmes were channeled to the country through Government, with only a few funders directly funding NGOs and CBOs. As part of its strategy, the government of South Africa established an NGO funding unit, which would then fund and monitor the organisations implementing National Strategic Plan aligned programmes at the grassroots. This means that shrinking of foreign donor funding may result in shrinking, depletion or even complete cut of funds to NGOs and CBOs. Study the budget allocated percentages in scenario A, critique and complete scenario B.

Illustration of scenario A: Without recession

Illustration of scenario B: In the time of economic recession what if The government receives only 70% of the expected budget

3.Do you have a plan to carry on or seize advantage in a recession?

Inaction is the riskiest response to the uncertainties of an economic recession. But rash or scattershot action can be nearly as damaging. Rising anxiety (how much worse are things likely to get? How long is this going to last?) and the growing pressure to do something often produces a variety of uncoordinated moves that target the wrong problem or overshoot the right one. A disorganised response can also generate a sense of panic in an organisation. And that will distract people from seeing something crucially important: the hidden but significant which is nestled among the bad economic news (Source: Harvard Business Review. OnPoint Summer 2009,).

The first step for an organisation to take in a challenging economic environment-especially one that could significantly worsen is to assess in a systematic manner its own vulnerabilities, at the organisational level and by unit project. In a nutshell, you may need to revisit your plans.

3.1Why planning?

There are a lot of obstacles that an organisation could encounter such as the financial meltdown, change in service demands etc. It is very important for an organisation to know what to do, how to do it and who to do it in order to achieve their objectives. Proper and effective planning helps the organisation be able to respond quickly and effectively to such changes and thus be able to function successfully.

3.2Planning by objectives

Objectives are what the organisation aims to achieve. Through planning by objective an organisation will be clear in their planning process, what they plan to achieve. This approach will necessitate a strategic, resource or financial planning or even a human resources planning.

Note that the objectives should be inline with the type of organisation, meaning they should compliment the existence of the organisation i.e. non-profit making organisation may not have profit generating as a priority objectives because that defeats the purpose. The second notable point is that the objectives should be attainable, meaning that an organisation should set out objectives that are realistic and attainable because for every objective formulated there should be a time frame to achieve them (short, long term objectives).

It is also vital for organisations especially non-profits to set out objectives that are within the funder’s affordability, for example, organisations that depend on funders’/donors’ to acquire funds should try to fit themselves into the funders’ pocket not to fit the funder into their objectives. A good plan is manipulative along the way in order for organisations to adapt to any situation arising i.e. global economy meltdown was not anticipated and even if it was surely it was not thought it would be in this current state. As a result most organisations are cutting down on human resources to survive, some have shut down permanently, and others have closed certain departments, however, there are other organisations that have been able to respond to changes without resorting to the bailouts mentioned above due to their effective strategic planning. Source: Swanepoel, H. 2006)

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