Monday, March 20, 2017

Job Search in Rural Management Domain

Rural management gives career option in both for profit as well as non for profit sectors. A rural management professional can very well be part of the mainstream down the line even though starting career from a rural base. While seeking for job, an unfocused professionals apply for anything and everything in response to the posted vacancies in the job portals. Consequently, the chances of resume being ignored becomes high. To avoid the rejection, it is suggested to have a customized resume and job applications by including the keywords used in the job description that fits with your skills and experience. An updated LinkedIn profile and healthy networking helps in a great way.

I have faced difficulties as a job seeker looking for the right job and even knowing name of various companies/ organization of the rural management domain. It is best to choose a target employers where one would like to work, and focus your efforts on those jobs and employers. I have compiled a list of organizations apt for a rural mangement professional that will assist one in reaching the right and targeted organizations easily. This database collection will come handy to the development professional, current students and alumni of XIMB, XISS, EDI, XIDAS, IRMA, VAMNICOM, Amity, TISS, KSRM, IRM, IIFM, IIHMR, NIAM, GBPSSI, BIMT, NIMT, IISWBM, NIRDPR & TERI University. Please provide feedback for any company and organizations not mentioned here.

Learning of the Day: It is important to negotiate on the salary and consider this as a marathon, not a sprint. Prof. Deepak Malhotra offers 15 pieces of negotiation advice in an informal session for students at the Harvard Business School.

Saturday, March 11, 2017

The Future of Self-Help Groups

SHG Bank Linkage Model pioneered by NABARD served dual purpose of financial inclusion  as well as social empowerment for rural poor women from excluded communities. SHG program had shown to be successful in connecting both unserved as well as under-served customers with financial services.

In the changing financial landscapes, it's merely a question of time before JLG movement overshadows SHG movement. The data on regulated microfinance institutions (MFIs) that submitted their numbers to the Microfinance Institutions Network indicates that over the past year, loan portfolios grew by 84 percent and loan disbursements grew 45 percent (Source). SHGs financed by the bank despite of government schemes like NRLM became stagnant with the growth of MFI sector. The data set (Source) shows decline in SHG financed by banks post 2013 while JLG movement is seeing tremendous growth.


JLG model has led to the establishment of a large microcredit sector in India post 2010. While SHG promoted by NGOs and government agencies are either small in numbers or with high default rates. The reason behind can be explained through: last mile outreach, continuity in service, strategic approach of the movement and market led changes in the society.

Both SHGs and JLGs have distinct credit delivery model. The members are expected to visit the bank and make repayments on their own in SHG model even when a visit to the bank branch leads to travel expenses and loss in daily wages for the client. SHGs have to manage the entire repayment collection process, and maintaining records. This process is reversed in JLG model practiced by MFIs with door-to-door delivery solution of cash disbursement and repayment with proper records.

SHPIs (mostly NGOs) promote SHGs for deepening the impact of their programmes and consolidating their own social agenda. Promoting agencies are solely depend on the funding agencies and aid under any government schemes for cost of formation. SHPIs typically have mandate for capacity building through trainings, credit linkage of the SHGs to banks and their monitoring role vis-a-vis the group discipline that is limited for project duration. Hence, SHPIs were able to sustain the regular and quality customer service to the women members during project period only. Public sector and rural banks have been lending to SHGs only due to government-imposed, priority-sector lending quotas. Once the support from promoter agency ends, the bankers are bit reluctant to provide financial support to SHGs due to fear of default. SHGs are also implementing vehicle for various welfare schemes in rural areas and get funds for it. But most SHGs are running on paper only. The validation and grading exercise to know health of SHGs are avoided by both government machinery and NGOs as this can expose fraud at the ground level. This also led to decay in the quality and credibility of SHGs.

MFIs diversified the geography to cover for political risk post Andhra crisis. Consolidation phase was achieved in the MFI market as crisis has swept away small players and make investors cautious. But the value of acquiring customers went up due to introduction of credit bureaus. The strategy adopted by MFI for acquiring new clients was based on low risk and high pace growth. They concentrated on the regions where the SHG programme was implemented on a large scale with successful result. The new borrowers came by restructuring of already existing JLG and SHG members. The incentives of a loan officer in MFI is based on loan disbursements and recoveries. As a result,they could form JLGs and disburse bigger ticket size loan if they include SHG members with inculcated good credit history in the JLG formation. Also, women prefered JLG model due to availability of credit in increasing amounts without any mandatory savings.

SHGs are gradually becoming the aggregate of individual actions, and rarely works as collective action. The members of SHGs are more inclined towards starting an individual based activity rather than collective based activities. This behavior shows either SHG members have not much awareness about the benefits of coming together or don't have the cohesion among them. A major role behind the screen was played by external market led economy having dynamic individualism and consumerism as its underlying themes. There is tremendous heterogeneity even among the poor SHG members based on parameters of aspirations and entrepreneurism. The break with tradition and affirmative action of state meant the break with established identity-giving authority. The new individuals, freed from the traditional collective, have started to reorient themselves in a new manner. In the booming economy, there are chances of class mobility for entrepreneurial households through remittances and migration. The lines of class division are crossed now more frequently,  the collective identities based on class or caste association are loosening up and leading to ineffective collective action. Hence, theories of collective action are not working as effective now in the rural ecosystem,

This concludes the brief summary of the emerging debate. The popularity of the JLG has eclipsed SHG but its current clients will be shifting to Small Finance Banks to avail savings, credit and other full range of financial services. The affluent clients will drift towards JLG while SHG movement will continue to reach out to vulnerable and marginalized people who own little or no land, are predominantly illiterate, and lack access to formal sources of financing.

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Statutory Warning

This Blog is meant purely as a personal diary of a rural manager in making. It exists to record information, experiences and opinions about various issues encountered in the line of duty. Any person, institution and organization mentioned here doesn't assume any liability for its contents. This is not a deliberate attempt to defame anyone. And if you have actually read all that is written in the blog and aren't mad at me, then thanks for your time and patience !

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