MEDS – 054 Participatory

Methods
CSR Projects and
Programmes
Indira Gandhi National Open University
School of Extension and Development Studies

2
MANAGEMENT OF CSR PROGRAMMES
UNIT 1
Project Assessment
UNIT 2
Monitoring of CSR Programmes
UNIT 3
Evaluation of CSR Programmes
UNIT 4
SWOT Analysis and Bar Charts
UNIT 5
Networks

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CSR Programme
Planning
BLOCK 2 MANAGEMENT OF CSR
PROGRAMMES
The CSR projects or programmes involve decision making on a number of
interrelated time bound activities. Therefore, we often depend on assessment,
monitoring, evaluation and project management tools that are effective
enough not only for drawing-up the best possible initial plan but also capable
of projecting instantaneously the impact of deviations so as to initiate
necessary corrective measures. The CSR professionals often depends on tools
and techniques that are effective enough not only for drawing-up the best
possible initial plan but also capable of projecting instantaneously the impact
of deviations so as to initiate necessary corrective measures. The search for
an effective tool has resulted in development of a variety of project
management techniques like SWOT analysis, bar charts and networks.

Unit 1, Project Assessment discusses the concept of assessment of CSR

projects, the aspects of project assessment, meaning and need of project
appraisal and various project appraisal techniques.

Unit 2, Monitoring of CSR Programmes introduces the concept and scope

of monitoring in CSR programmes. The various elements, types, techniques,
approaches and indicators of monitoring are also covered in this unit.

Unit 3, Evaluation of CSR Programmes discusses the meaning, features,

types, designs, methods and approaches of evaluation of CSR programmes.

Unit 4, SWOT Analysis and Bar Charts, focuses on history, meaning, how
SWOT analysis is useful as a CSR project management tool and how to
conduct SWOT analysis. The focus of second half of the unit is on meaning
and concept of Bar charts, Gantt chart and Milestone charts along with their
advantages and limitations as project management tools.

Unit 5, Networks, gives an account of networks namely PERT and CPM,

their application, preparation and analysis with the help of an example and
diagrams.

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UNIT 1 PROJECT ASSESSMENT CSR Needs
Assessment

Structure
1.1 Introduction
1.2 What is Project Assessment
1.3 Project Preparation
1.4 Project Appraisal
1.5 Project Appraisal Techniques
1.6 Let Us Sum Up
1.7 Keywords
1.8 Bibliography and Selected Readings
1.9 Check Your Progress – Possible Answers

1.1 INTRODUCTION
After a project has been prepared, it is generally appropriate for a critical
review or an independent appraisal to be conducted. This provides an
opportunity to re-examine every aspect of the project plan to assess whether
the proposal is appropriate and sound before large sums are committed. The
appraisal process builds on the project plan, but it may involve new
information if the specialists on the appraisal team feel that some of the data
are questionable or some of the assumptions faulty. If the appraisal team
concludes that the project plan is sound, the investment may proceed. But if
the appraisal team finds serious flaws, it may be necessary for the analyst to
alter the project plan or to develop a new plan altogether. If a project is being
implemented by an external agency and funded from the CSR funds of a
company then the lender will probably want a rather careful appraisal. Hence
as a programme or project manager, it is important for you to know about
various project appraisal or project assessment techniques.

In this unit we will be discussing different aspects of project assessment

along with various project assessment techniques. After reading this unit you
will be able to:
• Define a project
• Explain various aspects of project assessment
• Discuss various project appraisal techniques
• Describe the consequences of project assessment

1.2 WHAT IS PROJECT ASSESSMENT

Before we discuss about project assessment let us first look at what are
projects? And what is the difference between a project and a programme?
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Management of What are Projects?
CSR Programmes
Projects are the cutting edge of development through CSR. Projects are an
investment activity in which financial resources are expended to create
capital assets that produce benefits over an extended period of time.

UNIDO defines a project as a proposal for an investment to create and

develop certain facilities in order to increase the production of goods/services
in a community during a certain period of time.

The Chartered Management Institute define a project as “an activity that has
a beginning and an end which is carried out to achieve a particular purpose to
a set quality within given time constraints and cost limits”.

A project may be defined as an activity for which money will be spent in an

expectation of returns and which logically seems to lend itself to planning
financing and implementation as a unit. It is the smallest operational element
prepared and implemented as a separate entity in a national plan of
programmes of development.

A project is also defined as a proposal for an investment to create, expand

and develop certain facilities in order to increase the production of goods and
services in a community during a certain period of time. Furthermore, for
evaluation purposes, a project is a unit of investment, which can be
distinguished technically, commercially and economically from other
investments.

Difference between Project and a Programme

Many are uncertain about the difference between a project and a programme.
A project is a temporary entity established to deliver specific (often tangible)
outputs in line with predefined time, cost and quality constraints. Whereas, a
program is a portfolio comprising of multiple projects that are managed and
coordinated as one unit with the objective of achieving (often intangible)
outcomes and benefits for the CSR parent organization (Table 1.1).

Table 1.1: Difference between Project and a Programme

Parameter Project Programme

Outcomes are often intangible;

Outputs are
difficult to quantify; benefits
tangible; relatively
often based on changes to
easy to describe,
Objectives organizational culture and
define and
behaviours; introducing new
measure; tending
capabilities into the organization;
towards objective.
tending towards subjective.
Strictly limited; Not tightly defined or bounded;
Scope
tightly defined; not likely to change during the life
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 subject to change cycle of the program. Project
Assessment
during the life of
the project.
Relatively short
term; typically Relatively long term typically
Duration
three to six eighteen months to three years.
months.
Project risk is
relatively easy to
identify and Program risk is more complex
manage. The and potentially the impact on the
project failure organization if a risk materializes
Risk profile would result in will be greater relative to project
relatively limited risk. Programme failure could
impact on the result in material financial,
organization reputational or operational loss.
relative to program
risk.
Ill-defined; often disagreement
Nature of the between key stakeholders on the
Clearly defined.
problem nature and definition of the
problem.
A relatively A significant number of potential
Nature of the limited number of solutions with disagreement
solution potential between stakeholders as to the
solutions. preferred solution.
A relatively A significant number of potential
limited number of solutions with disagreement
Stakeholders
potential between stakeholders as to the
solutions. preferred solution.
Environment Environment is dynamic; and
Relationship within which the programme objectives need to be
to project takes place managed in the context of the
environment is understood and changing environment within
relatively stable. which the organization operates.
Resources to
deliver the project Resources are constrained and
Resources can be reasonably limited; there is competition for
estimated in resources between projects.
advance.

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Management of What is Project Assessment?
CSR Programmes
A project assessment is a legislated planning and evaluation process. It
is intended to ensure the environmental, social, cultural and economic well-
being of residents and communities is protected from any significant adverse
effects that may be caused by a development project. Project assessments
consider the potential environmental and socio-economic impacts of a project
before it begins to ensure that negative impacts can be adequately mitigated.
If the project goes ahead, information gathered through the environmental
assessment process is used to guide changes to the project's design that may
help minimize impacts on the environment and people
(https://www.lands.gov.nt.ca).

1.3 PROJECT PREPARATION

The preparation of a project entails consideration of many aspects. The major
aspect to be considered in preparation of a project is:

1. Technical
2. Institutional
3. Organizational
4. Managerial
5. Social
6. Commercial
7. Financial
8. Economic

Let us now discuss each of these aspects of project preparation.

1. Technical Aspect
The technical aspect of any project considers the technical feasibility of
any project. It concerns with the technical aspect of a project form both
input supply side and output delivery side. For example if you want to
take up an agricultural project in a region, you may have to examine the
soil type of the region, water availability, crops grown, livestock breed
suitable for the area, pests prevalent in the area etc. This information can
be used in estimating the possible yield and income from agriculture.
Such information can be collected through soil surveys, groundwater
surveys, collection of hydrological data, primary surveys of farmer
households etc. The information regarding marketing and storage
facilities responsible are needed to assess the possibility of marketing
and processing of the products.

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2. Institutional Aspect Project
Assessment
The institutional aspect of a project deals with the framework within
which the project will have to operate. A complete knowledge of the
institutional aspect helps identifying the components of institutional
framework that will have a bearing on the project. Some of the elements
that constitute the institutional framework include government
institutions, Project authority, corporate bodies, land tenure systems,
banking and credit institutions, religious customs, practices and social
mores. There is a need to understand the administrative system of the
region where the project has to be undertaken.
3. Organizational Aspects
Here the term organization refers to the structure if the body that would
undertake the task of project execution. The proposed organization must
have the capacity to carry out the assignments given to it. Some of the
basic principles to be followed include:
1. There must be clear lines of authority running from top to bottom of
the organization and the chain of command should be clear.
2. The responsibilities of each authority should be clearly defined in
writing.
3. The decision making power should be placed as near as possible to
the scene of action.
4. The number of levels of authority should be kept at minimum.
5. The organization should be kept as simple as possible and should be
flexible to adjust to changing conditions.
4. Management
The main task of management is to implement the project objectives
within the framework of organizational structure. For good management,
a clear definition of functions and activities are required. There is also a
need for allocating responsibilities to various agencies for various project
activities. A suitable mechanism for coordination of the activities of
participating agencies should also be developed. Besides, proper staffing
also comes under the purview of the management.
5. Social Aspects
It is very important to assess the social patterns, customs, culture,
traditions and habits of the clientele. Various aspects like changes in
living standards, material welfare, income distribution etc. In selecting
some projects, weights are assigned for income distribution so that the
projects which benefit the lower income group are benefitted. The
adverse effect of the project on particular group is also examined.
Preserving the environment and wildlife habitats is given high priority.

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Management of 6. Commercial Aspects
CSR Programmes
The commercial aspects of a project involves the arrangements of
marketing the output produced by the project and ensuring supply of
inputs needed for the project to operate. There is a need to assess the
effective demand of the project output and the prices that may prevail
under the demand and supply situations. The analyst also needs to
cautiously evaluate the impact of product supply on the price of the
product and the viability of the project under such changed price
situation.
7. Financial Aspects
Decisions about undertaking any project depend a lot on financial
analysis of a project. As there could be many beneficiaries/participating
agencies of any project, there is a need for separate financial analysis
each.

Activity 1: Visit CSR Department of any company doing CSR. Ask them
what are the different aspects they consider to analyse the feasibility of a
project. Record your observations.

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1.4 PROJECT APPRAISAL

1.4.1 What is Meant by Project Appraisal?
Project appraisal is done to assess the viability of a project or a proposal. It
helps the companies to choose between different projects in which they can
invest their money. Project appraisal involves calculating the feasibility of
the project before they commit the resources to it. It involves comparing
various available options by using one of the decision techniques or by
economic appraisal.

Project appraisal is not just used for choosing the best project to implement
but it is also used to review the projects completed by the companies in order
to evaluate how much investment has gone into the project and how much the
company has gained from it.

1.4.2 Why is Project Appraisal Done?

Thus, now we know that project appraisal is an assessment of a project which
may be done for both proposed as well as executed projects. For proposed
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projects, project appraisal is more of a cost benefit analysis done with the Project
Assessment
intention of judging the feasibility of the proposed project. The feasibility of
a project is calculated in order to know if it would be worth committing
resources to the project. Project appraisal helps in selecting the best project.
While appraising a project. While appraising a project, the economic,
technical, financial, managerial, market and social aspects are analyzed.

There are many reasons for which project appraisal is done. It is a tool which
is also used by companies to review the projects completed by it. Some of the
reasons why project appraisal is done are as follows:

1. To select the best project;

2. To assess credit-worthiness of projects;
3. To assess the project profitability;
4. To analyse the cost and benefit of the project;
5. To assess the raw material required to execute the project;
6. To assess the probable requirement of fixed and working capital;
7. To anticipate a possible market of the product;
8. To assess the competence of the management team to handle the project,
9. To assessthe availability of various factors of production;
10. To find out the extent to which the project would fulfilment of social
objectives.

Check Your Progress 1

Note:

a) Write your answer in about 50 words.

b) Check your answer with possible answers given at the end of the unit
1. What is project assessment?
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2 Name the various aspect considered in the preparation of the project.
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Management of
CSR Programmes
1.5 PROJECT APPRAISAL TECHNIQUES
CSR projects are often taken up after a proper social cost-benefit analysis. In
this section you will study about the social cost benefit analysis. This section
will also discuss in detail about various financial appraisal techniques. As a
project manager, you will be required to know about financial appraisal
techniques which are useful if the project involves profits. Let us first look at
what is social cost benefit analysis.

1.5.1 Social Costs –Benefits Analysis

Companies do Social Cost-Benefit analysis in order to select socially
remunerative project for implementation. Every project that is selected has an
opportunity cost, that is, it uses up the resources which could otherwise have
been put to other uses. In Social Cost-Benefit analysis, the social cost of the
project is the input used up in the project. The social benefits and social costs
of the project are expressed in numerical value. The social feasibility or
profitability of the project is then determined using a Social Cost-Benefit
analysis.If the social benefits of a project exceed its social costs, it is
qualified for implementation.

The source of funding of the projects could generally be the of the projects
are varied including the governments at the state or central level, firms,
institutions or even individuals. The general yardstick to choose a project
when the owner is not the government is to look at commercial or financial
profitability. In such cases, the promoter or owner might be interested only in
the profit potential of the project. However, such projects may not be socially
most profitable projects.

Any project is implemented in a social environment. Such a project is sure to

have an impact, either positive or negative in the society in general and the
community in the vicinity of the project. These impacts and specially the
negative impacts could be a matter of concern. Some of such challenges that
need to be handled with sensitivity include issues related to land acquisition,
rehabilitation, loss of livelihood, adequate compensation, building up
harmony with the community, through close interaction.

Before going for project formulation various technoeconomic considerations,

the support system available and several other dimensions. Over the years
there has been an increased social awareness about the social impacts of the
projects. While formulating a project these things need to be considered.
Project preparation is a time-consuming process and adequate time needs to
be spent on studying the feasibility of the project.

1.5.2 Project Appraisal

We just discussed social cost-benefit analysis. Another way of appraising a
project is to conduct a financial appraisal. This kind of appraisal also
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involves reviewing the data, assumptions and methodology that went into the Project
Assessment
formulation of the project, review of work plan cost estimates, organizational
and managerial aspects of the project and also checking the viability of the
project using various project appraisal techniques.

The project appraisal criteria can be divided under two heads:

1. Non-Discounting Technique
• Urgency
• Payback Period
• Accounting Rate of Return
• Debt Service Coverage Ratio
2. Discounting Criteria Technique
• Net Present Value
• Benefit Cost Ratio
• Internal Rate of Return
• Annual Capital Charge

Now we will discuss each of the techniques in detail

1. Non-Discounting Techniques
i. Urgency
This criterion gives preference to the projects which are more urgent.
However, one of the major drawbacks of this criteria is that it is largely
dependent on the judgement of the decision maker. The decision taken is
dependent on the judgement of the decision maker. While investing in a
CSR project, it would be worthwhile that while deciding upon the
urgency the opinion of the stakeholders is also taken into account.
ii. Payback Period
In simple terms, the payback period is the time required to recover the
amount of money invested in the project or in other words, the length of
time required to recover the initial cash outlay of the project. In case of
constant cash inflows, the payback period is calculated by dividing the
initial cash outlay by the annual cash inflow.
For example, a project of providing livelihoods to members of women
SHG group of a village by setting up a tailoring unit involves an initial
cash outlay of Rs 100,000 and a constant annual cash inflow of Rs
20,000 has a payback period of: 100,000/ 20,000.
= 5 years.
If the cash flow is not constant, then the payback period will be the
number of years in which the cash inflows equal the cash outlay. For
example if a project involves a cash outlay of 7,00,000 and generates 93
Management of cash inflow of Rs 1,00,000, Rs 1,50,000, Rs 2,00,000 and Rs 2,50,000 in
CSR Programmes
the first, second, third and the forth years respectively, its payback period
is four years because the sum of cash inflow during four years is equal to
the total outlay.
Decision making: When you need to choose between a list of projects,
the project having a shorter payback period will be more desirable.
Generally, in choice of projects, the maximum acceptable payback
period is specified.
Evaluation of this method:
• This method is simple in both its concept and application.
• This method favours projects which produce significant inflows in
earlier years and discriminates against those that bring substantial
cash flows only in later years. This method might hence be effective
in eliminating the risky projects.
• This method is generally good for those firms that face the problem
of liquidity as it emphasizes on higher cash inflows in the earlier
years.
• It fails to consider the time value of money thus violating the most
basic principle of financial analysis which says that cash flows
occurring at different points of time can be added or subtracted only
after suitable compounding and discounting.
• The attention is drawn away from profitability in the attempt to
measure project’s capital recovery in this method.
• Also, this method does not consider the cash inflows beyond the
payback period,
Inspite of the shortcoming of not using the time value of money, payback
period is used with advantage in apprising investments for the following
reasons:
• When the life of the project is long and the annual cashflow is
constant, the payback period can roughly be considered as the
internal rate of return.
• The payback period is similar to the breakeven point of the project.
• The payback period is somewhat akin to the breakeven point.
• Every project has some level of uncertainty attached to it. Payback
period tells us how fast the uncertainty can be resolved. Shorter the
payback period, faster is the rate at which the uncertainty is
resolved.
iii. Accounting Rate of Return
The accounting rate of return or the simple rate is the measure of
profitability which relates income to investment, both measured in
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 accounting terms. As there are various ways of measuring income and Project
Assessment
investment, there are a large number of measures for accounting rate of
return. The commonly used ones are given:
1) Average income after tax
Initial investment
2) Average income after tax
Average investment
3) Average income after tax but before interest
Initial investment
4) Average income after tax but before interest
Average investment
5) Average income before interest and taxes
Initial investment
6) Average income before interest and taxes
Average investment
Decision making: The higher the accounting rate of return, the better the
project.
Evaluation:
• The accounting rate of return are simple to calculate.
• The data needed to calculate accounting rate of return is the
accounting information which is readily available.
• Unlike the payback period, it considers benefits over the entire life
of the project.
• To calculate the accounting rate of return, the data for the income
data for the entire life of the project is required, however, it can be
calculated by taking income of any one particular year if the
complete income data is unavailable.
Disadvantages of accounting rate of return:
• Like the other non-discounting techniques, it does not take into
account the time value of money.
• There are numerous measures of accounting rate of return and
choosing the right one can create be confusing.
iv. Debt Service Coverage Ratio
The debt service coverage ratio is used to evaluate the financial
worthiness of the projects which need long term financing. The debt
service coverage ratio is calculated as

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Management of DSCR = [net profit + interest (on long term loan) + depreciation] /
CSR Programmes
[interest (on long term loan) + principal loan].
Decision Making: A debt service coverage ratio of 2 is regarded as
satisfactory by the financial institutions.
Drawback:
DSCR consists of a mixture of post-tax and pre-tax figures both in the
numerator and the denominator consist of (profit after tax in the
numerator and loan repayment instalment in the denominator are post tax
figures and interest in both numerator and denominator is pre tax figure).
It is difficult to interpret a ratio that is based on a mixture of post tax and
pre tax figures.

1.4.3 Discounting Techniques

(i) NPV
The Net Present Value can be defined as the difference between the
present value of cash inflows and the present value of cash outflows.
Here the cash inflow means the cash received and the cash outflow
means the cash spent. It is used in order to analyse the profitability of an
investment.

The formula for NPVis:

Where:
r = discount rate
t = year
n = time period (in years)

Decision making:

The decision rule is that the project should be accepted if NPV is positive. In
case of a negative NPV, it is advisable to reject the project as the project may
lead to negative cash flows.

Features of NPV:
• As we consider the time value of money, the cash inflows and the cash
outflows can be compared only in the same point of time.
• NPV discounts the value of the outflows and inflows to the present and
then makes comparison between the two.
• A project is considered profitable NPV >1, neutral if NPV = 0 and not
desirable if NPV <0.

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Merits of NPV: Project
Assessment
• It takes into account the time value of money.
• It considers the cash flow stream throughout the project’s life.
• The NPV’s of various projects can be added. This means that in a
programme, there are two projects then the NPV of a programme
consisting of two projects A and B will be equal to the sum of NPV’s of
these projects individually.

NPV (A+B) = NPV(A) + NPV(B).

Demerits of NPV:
• The calculation of NPV involves estimation of future cash flows and
discount rate both of which cannot be estimated with complete accuracy.
• Any investment made has an opportunity cost. It is the returns of benefits
an investor forgoes which would have been derived from an option not
chosen.

How to calculate NPV:

Let us now look at an example on how to calculate NPV. All examples taken
in this unit are hypothetical and are meant to give you a fair understanding of
how to do these calculations.

To illustrate the calculation of net present value, consider a project in which

the company plans to set up a cottage industry (papad making) in order to
provide gainful employment to the rural women. The cash flow of the
industry are as follows:

Year Cash Flow

0 -10,00,000
1 2,00,000
2 2,00,000
3 3,00,000
4 3,00,000
5 3,50,000

The discounting rate (r) is the cost of borrowing money, It could be the rate
of return that the investors expect when they invest in a project or it could be
the interest rate at which the money is borrowed. The cost of capital r for the
firm is 10 percent. The net present value of the proposal is:

= -5273

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Management of As we have read earlier, the decision rule associated with the NPV is to
CSR Programmes
accept the project if the NPV is positive and reject if it is negative, in this
example, the decision should be to reject the project.

(ii) IRR
Internal rate of return (IRR) of a project or an investment is the rate of
return which makes the net present value of all cash flows from an
investment equal to zero. IRR is the discounting rate where the total of
initial cash outlay and the discounted cash inflows equal to zero. It is
more desirable to take up a project with higher IRR. In theory, any
project which has IRR greater than the cost of capital is worth taking.
IRR is also sometimes called "economic rate of return (ERR)". It is the
discount rate in the equation:

CFt = cashflow at the end of the year t

r = discount rate

n = life of the project

In the internal rate of return, we set the net present value equal to zero and
determine the discount rate. This discount rate will be the internal rate of
return.

E.g. Consider the cash flow of a fish farm set up by the SHG of a village with
help from a company as a part of its CSR activity.

Year Cash Flow

0 -1,00,000
1 30,000
2 30,000
3 40,000
4 45,000

The internal rate of return is the value of r which satisfies the following
condition.

The calculation of that value of r which will result in the left hand side of the
equation to be equal to that of the right hand side would require you to do a
little trial and error. For example of you put the value of r as 12, you get the
value as 1,07,773 and if you put the value as 15, the value would be 1,00,802
and for 16 it is 98,641. At 16, the value is less than 1,00,000 and at 15 it is
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1,00,802. Hence we conclude that the value of r would lie between 15% and Project
Assessment
16%.

At one percent difference between 15 and 16 percent the corresponding

difference in the value at the Left hand side will be

A 1 percent difference (between 15 and 16 percent) corresponds to a

difference of 2161 (1,00,802 – 98,641) in the NPV. The difference between
the net present value at 15% (1,00,802) and that at present target value
(1,00,000) is (1,00,802 – 1,00,000) is Rs.802. This difference will correspond
to a percentage difference of 802/2131 = 0.37. Adding this number to 15
percent we get the value as 15.37 percent.

The internal rate of return is the rate of growth a project is expected to

generate. However, the actual rate of return that a project actually generates
will be different from IRR rate. Thus a project with a higher IRR value than
the other available options would be a better project to choose.

Other than the internal rate of returns of other projects, the IRRs can also be
compared with the rate of returns prevailing in the securities market. If the
rate of returns of the projects is less than that in the financial markets, the
firm may want to invest its earning into the market instead of any project.

Thus we have read that IRR is the discount rate that makes the NPV of all
cash flows from a particular project equal to zero. The decision rule would be
to choose the project with highest internal rate of return. IRR can also be
used to rank the prospective projects in which a firm is considering to invest.

(iii) Benefit-Cost Ratio (BCR)

A Benefit Cost Ratio is the ratio of the benefits of a project relative to its
cost. Both costs and benefits are expressed n monetary terms and they
are expressed in terms of their discounted present value. Benefit Cost
Ratio serves as an indicator which summarizes the overall value for
money of a project. The formula for calculating Benefit Cost Ratio is
given below:

Where,

In any project, the initial investment is taken as the present value of costs and
BCR is defined as the ratio of present value of benefits to the initial
investment.

Let us look at one example where a company decides to set up a poultry farm
for a female SHG in the village in which the company operates, as a part of 99
Management of its CSR activity. The cost of capital is 12 percent and the initial investment in
CSR Programmes
the project is Rs1,00,000. The benefits from the project are given below.

Year Benefits
Year 1 25,000
Year 2 40,000
Year 3 40,000
Year 4 50,000

The benefit cost ratio of this project will be:

= 1.145

Decision making: If BCR is >1, the project would be beneficial and should
be accepted.

If BCR =1, we interpret it as being indifferent.

If BCR <1, the project would be a loss should be rejected.

The BC ratio is preferable to NPV as this criterion measures per rupee of

outlay and it can discriminate between large and small investments.

Activity 2: In continuation of activity 1 in the previous section, discuss with

the CSR department about project appraisal techniques, if any they are
following. Write the outcome of the discussion.

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Check Your Progress-2

Note:
a) Write your answer in about 50 words.
b) Check your answer with possible answers given at the end of the unit
1. What is internal rate of return?
……………………………………………………………………………
……………………………………………………………………………
100
2. Write the decision making rule while using Benefit Cost Ratio as a Project
Assessment
project appraisal technique.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

1.6 LET US SUM UP

Project assessment is done by the companies for two reasons. Firstly, it may
be done to choose the best project and secondly it may be done in order to
support or assist the implementation of the chosen project. There are several
aspects that are considered before the preparation of the project including the
technical, institutional, organizational, managerial, social, commercial,
financial, economic aspects. In this unit you have read about various project
appraisal techniques. There are several discounting and non-discounting
techniques used in the appraisal of any project. You have read about all these
techniques in detail. These techniques have been shown with numerical
examples so that you get a better understanding of how these techniques are
used and how decisions are taken.

1.7 KEYWORDS
1) Project Appraisal: Project appraisal involves calculating the feasibility
of the project before they commit the resources to it. It involves
comparing various available options by using one of the decision
techniques or by economic appraisal.
2) Net Present Value: The Net Present Value can be defined as the
difference between the present value of cash inflows and the present
value of cash outflows.
3) Internal Rate of Return: Internal rate of return (IRR) of a project or an
investment is the rate of return which makes the net present value of all
cash flows from an investment equal to zero.
4) Benefit Cost Ratio: A Benefit Cost Ratio is the ratio of the benefits of a
project relative to its cost. Both costs and benefits are expressed n
monetary terms and they are expressed in terms of their discounted
present value.

101
Management of
CSR Programmes
1.8 BIBLIOGRAPHY AND SELECTED
READINGS
Baum W.C and Tolbert S.M. (1985) Investing in Development: Lessons of
the World Bank Experience, Oxford: Oxford University Press.

Choudhary, S. (1988) Project Management, New Delhi: Tata McGraw Hill.

Harrison, F.L. (1992), Advance Project Management, Metropolitan, New

Delhi.

Kohli, K. N (1993), Economic analysis of investment projects: a practical

approach, Oxford University Press.

Lavagnon A. Ika, Amadou Diallo, Denis Thuillier, (2010) "Project

management in the international development industry: The project
coordinator's perspective", International Journal of Managing Projects in
Business, Vol. 3 Iss: 1, pp.61 – 93

Layard, R. and Stephen Glaister, (eds) Cost-Benefit Analysis, Second edition,

Cambridge.

Prasanna Chandra (1988), Projects, Preparation, Appraisal, Budgeting and

Implementation, Tata McGraw Hill, New Delhi.

Sapru R.K., (1994), Development Administration, Sterling, New Delhi.

United Nations Industrial Development Organisation (1998), Manual For

Evaluation of Industrial Projects, Oxford and IBH New York.

https://www.lands.gov.nt.ca/en/services/project-assessment accessed on
08/05/2021

https://groups.google.com/group/JKUAT_SEEIE/attach/66be7fa80cee0349/
Model%20Question%2014%20&%2015.doc.pdf?part=0.1

https://www.readyratios.com/reference/appraisal/project_appraisal.html

https://qsstudy.com/business-studies/why-is-the-project-appraisal-done

http://atimysore.gov.in/wp-content/uploads/chapter-3-project-appraisal.pdf

http://www.openlearningworld.com/books/Investment%20Appraisal/Investm
ent%20Appraisal%20-%20Methods%20And%20Considerations/Non-
discounting%20Methods.html

102
1.9 CHECK YOUR PROGRESS – POSSIBLE Project
Assessment
ANSWERS
Check Your Progress -1

1. A project assessment is a legislated planning and evaluation process. It

is intended to ensure the environmental, social, cultural and economic
well-being of residents and communities is protected from any
significant adverse effects that may be caused by a development project.
2. The major aspect to be considered in preparation of a project are:
technical, institutional, organizational, managerial, social, commercial,
financial and economic.

Check Your Progress -2

1. Internal rate of return (IRR) of a project or an investment is the rate of

return which makes the net present value of all cash flows from an
investment equal to zero. IRR is the discounting rate where the total of
initial cash outlay and the discounted cash inflows equal to zero.
2. Decision making rule for Benefit Cost Ratio:
If BCR is >1, the project would be beneficial and should be accepted.
If BCR =1, we interpret it as being indifferent.
If BCR <1, the project would be a loss should be rejected.

103
UNIT 2 MONITORING OF CSR
PROGRAMMES

Structure

2.1 Introduction
2.2 Monitoring
2.3 Scope of Monitoring in CSR
2.4 Concepts and Elements in Monitoring
2.4.1 Concepts in Monitoring
2.4.2 Elements in Monitoring

2.5 Types of Monitoring

2.6 Techniques of Monitoring
2.7 Monitoring Indicators
2.8 Let Us Sum Up
2.9 Bibliography and Selected Readings
2.10 Check Your Progress – Possible Answers

2.1 INTRODUCTION
Monitoring of CSR activities helps corporations in learning from past
experiences, improving delivery system of CSR activities they undertake,
systematic planning and optimizing resource allocation and measurement of
results as a part of accountability to the key stakeholders. However well a
CSR programme or project has been conceived and planned, if the
implementation is not proper, it will result in inefficient and wasteful loss of
resources. A number of CSR programmes and projects have been undertaken
in various sectors particularly in agriculture, rural development, health and
family welfare, education, women and child development, drinking water and
other related poverty alleviation programmes. Review of these projects
suggests that monitoring and appropriate mid course corrective measures are
central to achieving project goals. In the light of the above, Monitoring and
Evaluation (M&E) is increasingly recognized as an indispensable tool. There
is a wide felt need to improve the performance of CSR projects. M&E
provides a basis for accountability in the use of resources and is an integral
and important part of the CSR project cycle.

After studying this unit, you will be able to:

• Explain what, why, when and how of monitoring CSR programmes.
• Identify key elements in monitoring CSR programmes.
• Discuss various types of monitoring of CSR programmes.
2.2 MONITORING Monitoring of
CSR Programmes

The word "monitor" is derived from the Latin word meaning to ‘warn’.
Monitoring is a continuous / periodic review and surveillance by the CSR
department at every level of the implementation of an activity to ensure that
input deliveries, work schedules, targeted outputs and other required actions
are proceeding according to plan. Availability of a ‘plan’ is a pre-condition
for monitoring.

Another way of defining Monitoring is that it is a process of measuring,

recording, collecting, processing and communicating information to assist
project management decision-making. To be precise and brief, "monitoring
system is an information system for management decision making".

According to Shapiro “Monitoring is the collection and analysis of

information as a project progresses. It is aimed at improving the efficiency
and effectiveness of a project. It is based on targets set and activities planned
during the planning phases of work. It helps to keep the work on track and
can let management know when things are going wrong. If done properly, it
is an invaluable tool for good management and it provides a useful base for
evaluation.”

According to PSO “Monitoring is the systematic collection, analysis and use

of information from projects and programmes for the following basic
purposes:

• Learning from the experiences acquired

• Accounting internally and externally for the resources used and the
results obtained, and
• Taking decisions.

The CSR department requires following information to keep track of CSR

programme and to guide its course of action:

1. Diagnostic information (why a situation is as it is)

2. Implementation information (physical and financial or input information)
3. Utilization information
4. Impact information
5. Situation information, and
6. Information for review.

Top management receives information from the monitoring unit and from
other formal and informal sources. This influences programme
implementation, leads to better CSR programme planning, and ensures
sustainability of those programmes. Ultimately this leads to improving the
ability of CSR departments to make effective use of available human and
financial resources. 105
Management of
CSR Programmes
2.3 SCOPE OF MONITORING IN CSR
Monitoring is a CSR department function, which begins with the start of a
project and ends with the completion of the project, but it is a continuous
process during the implementation of project. The key requirement for
monitoring is an ‘ACTION PLAN’ without which monitoring is not possible.
The scope of monitoring is summarized in the Box 2.1.

Box 2.1: Scope of Monitoring

What? Check, review, overview, keep track, Progress in
observe, control, guide, correct, inspect, implementation of CSR
supervise, verify, feed-back, follow-up of core programme
the: activities with reference
to action plans.
Why? To ensure successful implementation of the Take appropriate
core activities by identifying shortfalls, corrective/ remedial
deviations, problems and the reasons. action to keep the
activities on track.
When? During the implementation of the activity From inception till
continuously/ periodically. completion
Who? By the CSR team at different levels Including beneficiaries
(participatory
monitoring)

Since monitoring is a management function, all CSR department key

functionaries involved in the activities will do the monitoring. When all
stakeholders of CSR, including beneficiaries are involved in monitoring, then
it paves way for participatory monitoring, which is desirable.

A CSR project's operation, performance, and impacts are the aspects of

concern in monitoring with a view to keep track on the technical and
economic 'efficiency' of the project. This is carried out in terms of:
• Whether the various tasks are carried out according to schedule;
• Whether project results are likely to lead to realization of project
objectives; and
• Whether project objectives / targets / execution needs adjustments.

During the process of monitoring and evaluation cycle, we identify the

shortfalls, deviations and problems and causes for the same so as take
appropriate remedial /corrective action (Fig. 2.1).

106
 Monitoring of
CSR Programmes

Fig. 2.1 : Monitoring and Evaluation Cycle

(Source: Shapiro, J. Monitoring & Evaluation)

Till now you have read about the meaning and scope of monitoring, various
gamuts of monitoring and monitoring and evaluation cycle. Now answer the
questions in Check Your Progress-1.

Check Your Progress 1

Note : (a) Write your answer in about 50 words.

(b) Check your answer with possible answers given at the end of the
unit.
1. What do you mean by monitoring?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
2. What information is required by CSR department to keep track of CSR
programme.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

107
Management of
CSR Programmes
2.4 CONCEPTS AND ELEMENTS IN
MONITORING
2.4.1 Concepts in Monitoring
Four concepts are basic to monitoring and evaluation. They correspond,
respectively, to (Ruthenburg, 1985, p. 120):

a) Operational investment (Capability) (e.g., investment in CSR activity per

beneficiary family)
b) Operational efficiency (e.g., the number of visits, meetings,
demonstrations, and trials, per CSR worker)
c) Technical efficiency (e.g., the number of adopters, output, and value
added)
d) CSR induced changes (Impact) (e.g., production, productivity, income,
and income distribution)
In the above, the capability, effectiveness, and efficiency fall in the
monitoring domain. Impact falls in the evaluation domain (Casey and
Lury, 1982).
i) Capability is the command that CSR programme has over physical,
financial, and human resources, enabling it to serve its clients. It is
reflected by CSR outreach, intensity, technical competence, and physical
and financial resources. The CSR department’s performance depends
directly upon its capability.
ii) Effectiveness is the degree to which CSR goals are attained. CSR
activities have many goals such as:
• Social goals (e.g., welfare of beneficiaries)
• Economic goals (e.g., increased income)
• Operational goals (e.g., physical and financial targets)
Among them, operational goals are of special significance because their
attainment makes realization of other goals possible.
iii) Efficiency is usually measured by the rates at which beneficiary target
group adopt recommended developmental practices. Adoption rates of
varying degrees of complexity can be conceived.
iv) Impact can be measured by a simple indicator, like yield of a crop per
hectare, Infant Mortality Rate (IMR), Maternal Mortality Rate (MMR).
Such indicators provide ultimate tests for the success of any sectoral
CSR programmes like agriculture, helath and family welfare etc.

2.4.2 Elements in Monitoring

Let us now discuss in detail the various elements of monitoring. The purpose
108 of a programme is to convert a set of RESOURCES into desired RESULTS.
Resources are INPUTS and results are OUTPUTS and OUTCOMES (This Monitoring of
CSR Programmes
term is used here in a generic sense though it has more specific connotation
which will be discussed later). Inputs to outcomes happen in a sequence as
detailed below:

i) Input: Goods, funds, services, manpower, technology and other

resources invested in a CSR project with the expectation of OUTPUTS.
ii) Results: Certain things happen immediately, and certain things
ultimately, while certain things in between these two (intermediate).
According to this sequence, results can be grouped into three broad
categories, such as productivity, production and income.
iii) Output (Immediate results): Specific products or services, which a CSR
activity is expected to produce from its inputs in order to achieve the set
objectives (increased irrigation, health facility created etc).
iv) Effect: It is the outcome of the use of the project outputs above. The
realization of expected effects in a project will lead to desired impact –
Intermediate results. In the recent M&E literature effects, are described
as outcomes.
v) Impact: It is the outcome of project effects or ultimate results (broad
long term objectives – e.g. Standard of living and reducing poverty both
at individual and community level). Impact is described as the outcomes
for a community or region than on individuals. It may include direct and
indirect as well as primary, secondary and tertiary level (See the Box
2.2).

Box 2.2: An Example of Watershed Irrigation Project Monitoring

Let us assume a watershed irrigation dam has been built as part of CSR
activity and has become operational. A sequence of results flow are discussed
below.
Sequence of Results Parameter
Immediate Result(s) INPUT Watershed Irrigation Dam

OUTPUT i) Irrigated Area

ii) Change of crop pattern
iii) Use of Agri. Inputs (Seeds,
fertilizers, chemicals, labour etc.)
Intermediate EFFECT i) Productivity
Result(s) (Medium (Purpose/ ii) Production
Term) outcomes) iii) Income
Ultimate Result(s) IMPACT Overall Socio-Economic
(Long Term) (Goals) Development (Social indicators)

109
Management of In any project, this sequence (input - output- effect (outcomes) - impact) is in
CSR Programmes
built, ensuring that these steps occur is a primary 'condition' for the success
of a CSR project. Again, all CSR projects are made on certain 'assumptions'
i.e. if we provide inputs, recipients will use them properly, and produce
necessary outputs so that the outputs will result in increased income and the
income will boost the standard of living of people. There are also other
factors like price fluctuation, changing political environment, etc., which are
described as 'risks' that will affect the project outcomes. It is, therefore,
necessary to evolve a mechanism in every CSR project that necessary
conditions prevail, assumptions come true and effects of risk are reduced by
providing cushions for the shock. Such a mechanism is called 'Monitoring'.

2.5 TYPES OF MONITORING

Monitoring can be divided into two types:

2.5.1 Beneficiary Contact Monitoring

It is the key to overall monitoring of CSR projects. Physical and financial
monitoring - the first main component of a management information system -
generally measures delivery of inputs and services. But CSR services are
being accepted and how they are being integrated into development of
stakeholders is also important.

Beneficiary contact monitoring is taken up:

• To maintain records for each activity and to analyse these periodically to

monitor the penetration of the services and the establishment of clientele.
• To establish a regular schedule of surveys to measure the progress of
activity and the responses of its beneficiaries. Formal sampling
techniques are to be used to get statistically significant data from these
surveys.
• To use informal interviews to record outstanding success stories or
problems.

2.5.2 Process Monitoring

As discussed earlier, project implementation begins with deployment of
inputs to realize some specific outputs. The conversion of inputs into outputs
will involve certain methods, activities and completion of certain events. This
happens in a sequence as shown in Box 2.3.

Box 2.3: Process Monitoring

Process: It is the way in which activities are conducted which are

continuous and cuts across programmes (e.g., Networking as a process is
relevant to other programmes like knowledge management, capacity
development, strengthening extension research, curricula reforms and policy
110
 dialogue). Monitoring of
CSR Programmes
Milestones: These are a series of achievements that leads to a completion of
stage in an activity (an event).

Activities: These are what we do to deliver the output. Activities always

have a beginning and an end and are associated with a budget.

Output: This is what a project delivers before the close of the project.

Process monitoring is an approach that ensures that processes are steered to

achieve the desired results and that quality is maintained throughout. Process
monitoring would be useful and successful as long as there is a focus, not
only on the inputs and outputs, but the way in which the outputs are being
delivered, and quality indicators are devised and tracked.

Process monitoring is often confused with conventional progress monitoring.

Conventional progress monitoring focuses on physical, financial and logistic
aspects of projects, while process monitoring deals with critical processes,
which are directly related to the project's objectives (e.g., the progress
monitoring looks at the number of capacity building sessions held; while
process monitoring evaluates the quality of the sessions, level of
involvement of participants, nature of changes needed to further improve,
maximize impact and improve the likelihood of sustainable outcomes). An
ideal M&E system contains elements from both progress and process
monitoring.

2.6 TECHNIQUES OF MONITORING

Broadly, following techniques are used for the purpose of monitoring:

a. Regular Progress Reports: Progress reports should contain physical

and financial progress vis-à-vis targets, activities, etc. From the financial
and physical progress report, it is often possible to make a rapid
assessment of whether, and to what extent, the CSR activities have been
fulfilled within the allocated budget.
b. Monitoring Staff Performance (Review): Monitoring the CSR
department and project staff performance can ensure that individuals are
effectively employed to fulfill given tasks. Ideally, all staff should meet
regularly, to discuss their progress, and match this against targets and
objectives, and discuss problems and possible changes.
c. Tour Reports / Site Visits: Most useful information about qualitative
aspects of a CSR programme is obtained from the tour reports / site visits
submitted by field staff.
d. Participant Observation: The CSR department staff may observe the
implementation of programmes and activities to obtain sensitive and
first-hand insights. 111
Management of e. Feedback from Visitors: The staff ensures that all visitors to the CSR
CSR Programmes
sites and participants in its programmes provide a short feedback on their
impressions. (e.g., feedback on CSR activities / outputs / outcomes
which will help in further developing the CSR programmes).
f. Interviews: Stakeholders should be interviewed on their impressions on
CSR programmes and resultant changes.
g. Participatory Monitoring: In this, the stakeholders themselves are
made partners in monitoring CSR programmes. The CSR department
staff and stakeholders discuss and assess the performance together, in
order to understand how they have performed, what the problems are and
how to overcome.
h. Key Informants: In addition to regular stakeholders, CSR department
must try to interact with others who may be useful sources of
information (e.g. higher officials / policy makers in relevant department).
i. Complaints / Grievances Petitions: Complaints and grievances from
stakeholders throw some light on the actual performance. Every CSR
programme should make provisions for such source of information as
part of monitoring.

2.7 MONITORING INDICATORS

Monitoring involves collection of huge amount of data from the CSR
projects. All this information have to be analyzed, processed and presented to
the management in concise and precise form for decision making. Such a
condensed and single piece of information will be called as indicator.
Indicators are measures of change. They help us to substantiate the
achievements of CSR work through meaningful and trustworthy statements
about what has been done and the benefits of that. Such statements may vary
vastly from brief quantitative measures (even one number only e.g.
percentage) to elaborate verbal description (statement by beneficiaries).
Indicators are simplified approximation of achievements or phenomena that
are examined (Dale, 2004). Indicators help us to specifically measure the
intended levels of input use (quantity, quality and time), he resulting outputs,
effects and impacts with reference to planned activities and goals/ objectives.
Developing indicators is a necessary pre-condition for effective monitoring
of CSR projects.

The indicators that can be used in monitoring CSR programmes are

summarised in Box 2.4.

112
 Box 2.4: Indicators in monitoring CSR programmes Monitoring of
CSR Programmes

Type of Description Indicators Example

Indicators
Quantitative Provide numeric information Number of Beneficiaries
Indicators about a change in a situation came out of poverty ( before
due to CSR programme. and after the programme)
Direct Provide information, which Income generated, crop
Indicators expressly relates to what is yield
being measured.
Indirect Essential information, chosen To measure the level of
Indicators from amongst many types of poverty in a community,
information to serve as instead of choosing direct
substitutes or proxy indicators for income,
indicators for answering indirect indicators for
questions or responding to poverty may be chosen, e.g.
statements that are difficult to persons are poor if they
measure. have to hire themselves out
as daily unskilled labour.
Process Information on various Processes involved in
Indicators processes involved in CSR planning, collaboration with
programme implementation partners, funding, and
organizing effective CSR
programmes.
Progress Seek to measure or monitor Percentage increase in
Indicators changes against stated targets activities in terms of
in CSR programmes. actions, interactions,
collaborations etc (e.g. The
number of trees planted,
percentage of water supply
connections given).
Qualitative Largely descriptive • How community needs
Indicators statements about processes are assessed?
and outcomes of CSR • Level of participation in
programmes. CSR programmes.
• How decisions are made?

In this section you have read about the concepts, elements and types of
monitoring. Now try and answer the questions in Check Your Progress 2.

113
Management of Check Pour Progress 2
CSR Programmes
Note : (a) Write your answer in about 50 words.
(b) Check your answer with possible answers given at the end of the
unit.
1. What is the difference between effectiveness and efficiency of
monitoring?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
2. Name different techniques and types of monitoring.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

2.8 LET US SUM UP

Monitoring is an important aspect of project management system. It is a
continuous activity for the CSR department. This unit has dealt with in detail
why, what, when and who of monitoring and also various types of
monitoring. Further a detailed analysis of indicators of monitoring is
discussed.

2.9 BIBLIOGRAPHY AND SELECTED

READINGS
ADB (2002), Project Performance Management System Operations Manual,
Section 22. PACS Series, New Delhi.

AESA (2017). Manual on Good Practices in Extension Research &

Evaluation, Edited by Sethuraman Sivakumar, P., Sontakki, B.S., Rasheed
Sulaiman, V., Saravanan, R & Nimisha Mittal. Centre for Research on
Innovation and Science Policy (CRISP),Hyderabad, India
http://www.crispindia.org

Casley, D.J., & Kumar, K. (1987), Project monitoring and evaluation in

agriculture, Johns Hopkins University Press (published for the World Bank),
Baltimore and London.
114
Casley, D.J., & Lury, D.A (1987), Monitoring and evaluation of agriculture Monitoring of
CSR Programmes
and rural development projects, Johns Hopkins University Press (published
for the World Bank), Baltimore and London.

Cemea, M.M., & Tepping, B.J. (1977), A system for monitoring and
evaluating agricultural extension projects. World Bank Staff Working
Paper No.272. DC: World Bank, Washington.

Chalmers, James (2002), How to managing projects, Jaico Publishing House,

Mumbai.

Davis-Case, D. and P Grove (1990), The Community's Tool Box: The Idea,
Methods, and Tools for Participatory Assessment, Monitoring and
Evaluation in Community Forestry, FAO, Rome.

Davis-Case, D'Arcy. (1990), Community Forestry. Participatory Assessment,

Monitoring and Evaluation, FAO, Rome.

Dennis J. Casley & Krishna Kumar (1989), The Collection, Analysis and use
of Monitoring and Evaluation Data. The World Bank.

Dennis J. Casley & Krishna Kumar (1990), Project Monitoring and

Evaluation in Agriculture, The World Bank.

Development Alternatives (2008), MEAL Manual for Civil Society

Organisation. Monitorign Evaluation

Feuerstein, Marie-Therese (1986), Partners in Evaluation. Evaluating

Development and Community Programmes with Participant, Mac Millan
Education Ltd, Hong Kong.

GFRAS. (2017). The New Extensionist Learning Kit. 13 Learning modules

for extension professionals. Lausanne, Switzerland, Global Forum for Rural
Advisory Services GFRAS (Module 3 Agricultural Extension Programme
Management).

Gosling, Louisa and Mike Edwards (1995), Toolkits: A Practical Guide to

Assessment, Monitoring, Review and Evaluation. Save the Children, London.

Guijt, I. (1998), Participatory Monitoring and Impact Assessment of

Sustainable Agriculture Initiatives: An Introduction to the Key Elements.
Discussion Paper No.1, Sustainable Agriculture and Rural Livelihoods
Programmes, IIED, UK: IIED.

http://Inweb18.worldbank.org/oed/oeddoclib.nsf/24cc3bb1f94ae11c8525680
8006a0046/ a5efbb5d7

http://www.adb./org/Documents/Manuals/Operations/om22.asp.

Jody Zall Kusek and Ray C. Rist (2004), Ten steps to a results-based
monitoring and evaluation system: a handbook for development
practitioners, D.C: World Bank, Washington.
115
Management of Lee, J.W (1990), More than accountability: Evaluating agricultural
CSR Programmes
extension programmes. TRDC Publiation No.172. Amidale, Australia:
University of New England, Rural Development Centre.

Misra, DC (1999), Monitoring Extension Programme and Resource, Chapter

17 in Improving Agricultural Extension; A Reference Manual: Ed: FAO,
Rome.

Murphy, J., & Marchant, T.J. (1988), Monitoring and evaluation in extension
agencies, World Bank Technical Paper No.79, DC: World Bank,
Washington.

Participatory Monitoring and Evaluation (1990), A Handbook for Training

Field Workers, 1998 Bangkok: Regional Office for Asia and the Pacific
(RAPA), FAO.

Ruthenberg, I. (1985), Innovation policy for small farmers in the tropics:

The economics of technical innovations for agricultural development, Oxford
University Press.

Shapiro, J. “Monitoring and Evaluation”,

http://www.civicus.org/new/media/monitoring

Slade, R.H., & Feder, G (1985), Training and visit extension: A manual of
instruction (mimeo), Washington, DC: World Bank.

Suvedi M., and Kaplowitz M.D. (2016). Process skills and competency tools
– what every extension worker should know – Core Competency Handbook.
Urbana, IL, USAID-MEAS.

World Bank (2004), Monitoring & Evaluation: Some Tools, Methods and
Approache, Washington, DC: World Bank.

2.10 CHECK YOUR PROGRESS – POSSIBLE

ANSWERS
Check Your Progress 1

1. Monitoring is a process of measuring, recording, collecting, processing

and communicating information to assist project management decision-
making.
2. Monitoring is useful to realize, is only one of management's sources of
information. Management information system needs include six kinds of
information: (1) diagnostic information (why a situation is as it is), (2)
implementation information (physical and financial or input
information), (3) utilization information, (4) impact information, (5)
situation information, and (6) information for review.

116
Check Your Progress 2 Monitoring of
CSR Programmes
1. Effectiveness is the degree to which CSR goals are attained viz., Social
goals (e.g., welfare of beneficiaries), Economic goals (e.g., increased
income) and Operational goals (e.g., physical and financial targets).
Efficiency is usually measured by the rates at which beneficiary target
group adopt recommended developmental practices. Adoption rates of
varying degrees of complexity can be conceived.
2. Techniques of monitoring includes regular progress report, monitoring
staff performance, tour report, participants’ observation, and reports from
visitors, interviews, participatory monitoring, key informants and
complaints or grievances petitions. Monitoring are two types. (i)
Beneficiary contact monitoring and (ii) process monitoring.

117
Management of
CSR Programmes UNIT 3 EVALUATION OF CSR
PROGRAMMES

Structure

3.1 Introduction
3.2 What is Evaluation?
3.3 Appraisal vs. Monitoring vs. Evaluation vs. Impact Assessment
3.3.1 What Are We Evaluating?

3.4 Evaluation-Types and Designs

3.4.1 Types of Evaluation
3.4.2 Evaluation Designs

3.5 Evaluation - Data Collection Methods

3.5.1 Conventional Methods
3.5.2 Participatory Methods

3.6 Evaluation Approaches

3.6.1 Challenges in Programme Evaluation

3.7 Let Us Sum Up

3.8 Keywords
3.9 Bibliography and Selected Readings
3.10 Check Your Progress – Possible Answers

3.1 INTRODUCTION
In the previous two units, we discussed the concepts of project assessment
and monitoring. The other concept which closely follows them is evaluation.
The demand for evaluation of CSR programmes / projects is rising as funding
agencies and stakeholders want to know from the CSR professionals:
• What did you do with the money?
• Why should we continue to fund CSR programmes / projects?
• Are the CSR programmes effective?
• How will you improve or terminate ineffective CSR programme /
projects?

Evaluation of CSR programmes / projects is essential to answer the above

questions with evidence.

After studying this unit you should be able to:

• Understand the meaning of evaluation and differentiate between

appraisal, monitoring, evaluation and impact assessment.
118
• Discuss different types, tools, techniques, designs, approaches and Evaluation of CSR
Programmes
challenges in evaluation of CSR programmes.

3.2 WHAT IS EVALUATION ?

Evaluation is a systematic collection and analysis of information about the
characteristics and outcomes of a programme/project as a basis of judgment
to improve its effectiveness and/or to inform decisions about current or future
programming (USAID, 2011). Evaluation is one of the essential core
competencies required for all CSR professionals in order to provide evidence
and establish accountability of CSR programmes / projects.

Various steps in design and execution of an evaluation study are summarized

in Box 3.1.

Box. 3.1: Steps in CSR Programme Evaluation

1. Writing evaluation proposal with :

• Need for evaluation - economic /technical / social / environmental
benefits
• Research / evaluation questions
• Objectives
• Evaluation framework
o Bennett’s Hierarchy
o LFA
• Budget
2. Designing and approval of evaluation survey instrument
3. SPSS coding, pre-testing, recoding SPSS & data collection
3. Data entry & analysis
4. Evaluation report writing & communicating findings - Short reports /
Longer

3.3 APPRAISAL vs. MONITORING vs.

EVALUATION vs. IMPACT ASSESSMENT
Though they are often interchangeably used, following distinctions exists
between them:

• Appraisal: It is a critical examination of a CSR programme / project

proposal, normally before implementation and funding with respect to
economic viability, technical feasibility, and / social desirability. It is
basically a CSR planning and project formulation activity guided by
evaluation findings of similar programmes / projects already been
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Management of implemented under CSR (Please refer Unit 1, Block 2 for more details on
CSR Programmes
project appraisal / assessment).
• Monitoring: It is a continuous process that starts and ends with a CSR
programme / project which is required for immediate use and mid-course
correction. It is usually done by implementing personnel by covering all
aspects of CSR programme / project for its correction or management.
Monitoring is a symptomatic and early warning system (Please refer Unit
2 , Block 2 for more details on monitoring of CSR programmes).
• Evaluation: It is an in-depth one shot operation at a point of time,
usually at completion or mid way of CSR programme. It is undertaken for
future planning/ replication/ expansion. It is a learning and diagnostic
process usually done by outside agency covering a sample.
• Impact Assessment: Building on appraisal, monitoring and evaluation,
the focus of impact assessment is on longer-term and wider-ranging
changes beyond the immediate results of the CSR programme or project.

3.3.1 What Are We Evaluating?

In general, evaluation is conducted to assess the progress, outputs, outcomes
and impact of CSR programmes or projects. A few commonly used analytical
aspects of evaluation described by Dale (2004) are given in Box 3.2.

Box 3.2: Commonly Used Analytical Aspects of Evaluation

Relevance: To what extent has the CSR programme or project addressed, or

is addressing, problems of high priority, as viewed by actual and potential
stakeholders, especially beneficiaries?

Effectiveness: To what extent are the planned outputs, expected changes,

intended effects (immediate and effect objectives) and intended impact (CSR
development objective) being, or have been, produced or achieved?

Impact: The overall consequences of the CSR programme or project for the
intended beneficiaries and any other people;

Efficiency: The amount of outputs created and their quality in relation to the
resources (capital and human efforts) invested by CSR department;

Sustainability: The maintenance or augmentation of positive achievements

induced by the evaluated CSR programme or project (or any component);

Replicability: The feasibility of repeating the particular CSR programme or

project, or parts of it, in another context, i.e., at a later time, in other areas, for
other groups of people, by other organisations, etc.

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Check Your Progress 1 Evaluation of CSR
Programmes
Note: (a) Write your answer in about 50 words.
(b) Check your answer with possible answers given at the end of the
unit.
1. Ask some of your colleagues what they mean by evaluation? Compare
their views with the one given in this section and identify the common
features.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
2. What is the major difference between appraisal, monitoring, evaluation
and impact assessment?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

3.4 EVALUATION - TYPES AND DESIGNS

3.4.1 Types of Evaluation
Evaluations are of the following types based on the programme phase(s)
(planning, implementation, and conclusion) at which evaluation is conducted:

i. Baseline Evaluation: Needs assessment is a form of baseline evaluation to

find out the target group and their perceived needs/expectations from the
CSR programme. If collected, this will also establish baseline data to
compare programme results later. Example: Capacity Building in
Corporate Social Responsibility through Open and Distance Learning: A
Need Assessment Study (Varghese and Sasidhar, 2018).
ii. Formative Evaluation: It is undertaken during the programme
implementation stage to determine whether the programme is going as
per plan, and changes, if any, are required to meet the objectives. It is
also termed as process/mid-term/concurrent evaluation. Generally,
formative evaluations are undertaken in long-term programmes/projects
for cross checking/corrective measures. Example: Formative evaluation
of Kisan Call Centres in Tamil Nadu (Karthikeyan et al., 2006).
121
Management of iii. Summative Evaluation: It is undertaken once the programme achieves
CSR Programmes
a stable state of operation or towards the end of a programme to find
out its results, effectiveness, impact and further course of action.
Summative evaluation findings help CSR functionaries/funding
agencies to make decisions on programme continuation, modifications,
further expansion, reduction, or closure. If summative evaluation is
done immediately after completion of a project it is called terminal/
outcome evaluation. If it is done some time after completion of a
project, it is called ex-post evaluation.
Example: Evaluation of Corporate Social Responsibility from a
Stakeholder’s Perspective – A Case Study of Aparajitha Corporate
Services in India (Preetha and Vanniarajan, 2017).
iv. Follow-up Evaluation: It is undertaken long after completion of the
programme to see whether there are any long-term changes among
beneficiaries. When follow-up evaluations are repeated at set time
intervals to study the long term benefits, sustainability of results and
outcomes, they are called longitudinal evaluations. Example: Evaluation
of a distance education radio farm school programme in India:
Implications for scaling up (Sasidhar et al., 2011).
Various evaluation techniques used at different programme stages are
displayed in Box 3.3.

Box 3.3: Evaluation Tools and Techniques by Programme Stage

Programme Evaluation Evaluation Questions Evaluation tools and
Stage Type techniques
Planning stage Needs • What are the felt Survey
assessment and unfelt needs of FGD
beneficiaries? Observation
Feasibility • Do they fit into Content analysis of
study CSR programme records
mission?
Economic analysis
Base line • Can CSR B:C ratio
study programme
address these
needs?
• Is CSR programme
feasible (socio-
economic &
environmental)?
Implementation Formative • Is the CSR Annual monitoring
stage evaluation programme reports
meeting its Technology
objectives of adoption patterns
indented
122 KASA change
 outcomes? Satisfaction surveys Evaluation of CSR
Programmes
• Are beneficiaries
satisfied with the
CSR programme?
Conclusion Summative • Are the needs Pre & post
stage evaluation addressed? programme data
• Are the desired Cohort studies
outcomes Panel studies
achieved? Economic analysis
• What is the cost
effectiveness of the
CSR programme?

Source : Suvedi and Vander Stoep, 2014

3.4.2 Evaluation Designs

Following are two major evaluation designs:

i. Pre vs. Post-programme Evaluation: It is undertaken through

comparison on present situation and situation prior to the CSR
programme. It suffers from 'memory or recall bias' of the respondents.
To overcome this, it is always advisable to have ‘baseline' or ‘bench
mark’ study and ‘post-programme’ study. Unfortunately in most
programmes, baseline studies are not undertaken or when available data
is inadequate.
ii. With-Without Programme Evaluation: A comparable sample of CSR
beneficiaries and non-beneficiaries are to be selected within programme
area. Alternately, a comparable adjoining area where CSR programme
has not been implemented can also studied along with the programme
area.

Example: The Tata Motors Limited (TML) transformed the lives of tribal
community from forest gatherers to entrepreneurs through CSR interventions.
We can have a comparative evaluation of this initiative (with beneficiaries
and non-beneficiaries) (TML, 2021).

Combination of above two designs is most appropriate.

Check Your Progress 2

Note: (a) Write your answer in about 50 words.

(b) Check your answer with possible answers given at the end of the
unit.
1. Name different types of evaluation.
……………………………………………………………………………
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Management of ……………………………………………………………………………
CSR Programmes
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
2. Name the evaluation type to be suitable during the following programme
stages:
• Planning stage : ……………………………………………………………
• Implementation stage: ………………………………………………………
• Conclusion stage: ……………………………………………………………

3.5 EVALUATION - DATA COLLECTION

METHODS
The different methods to collect evaluation data (Dale, 2004; Bagnol, 2007
and 2014; Suvedi and Kaplowitz, 2016) are given below:

3.5.1 Conventional Methods

Quantitative Methods: They measure a limited number of predetermined
CSR outcomes and are appropriate for judging effects, attributing cause,
comparing or ranking, classifying and generalizing results (Example:
Survey and census data).

Qualitative Methods: Through descriptions, they help in understanding the

CSR programme context and problems, clarifying relationship between
programme objectives and implementation, identifying unintended
programme consequences and conducting in-depth impact analysis
(Example: FGD, participant observation, case study).

Mixed Methods: They combine qualitative and quantitative methods to

complement each other. They are appropriate for understanding complex
social phenomena allowing plurality viewpoints in a CSR programme.

3.5.2 Participatory Methods

They involve stakeholders in CSR programme evaluation through
partnerships and dialogues taking into account the aspects that are often left
over by evaluators and can only be identified by stakeholders themselves.
(Example: Participatory rural appraisal (PRA), Participatory learning
methods (PLM), Participatory assessment monitoring and evaluation PAME)
(Please refer Unit 3 & 4, Block 1 for more details on participatory methods).

A few basic participatory methods are given in Box.3.4 and a case study in
Box 3.5 for your understanding.
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 Evaluation of CSR
Box 3.4. Basic Participatory Methods Programmes

1. Meetings – Arranging and conducting meetings with stakeholders, like

project beneficiaries, development agents, etc., and proceedings are used
as evaluation reports. The main disadvantage is that it involves only little
interaction and in-depth assessment is not possible.
2. Informal Group Discussion– The evaluator comes into an unplanned
group setting in which a relevant discussion takes place, coordinated by
the evaluator.
3. Facilitated Group Discussion– Group discussions may also be planned
and arranged, and will normally be moderated by the evaluator. It is
highly interactive and is an in-depth discussion on the effect of the CSR
programme.
4. Workshop-based Participatory Analysis – The CSR beneficiaries and
CSR agencies jointly explore problems, plan or evaluate, in a workshop
setting. Participatory rural appraisal (PRA), participatory learning
methods (PLM), Participatory assessment monitoring and evaluation
(PAME) are a few examples of this approach.
5. Collective Brainstorming– Intensive and open-minded communication
event that a group of persons agree to embark on in a specific situation.
Useful method for analysing problems, which occur suddenly and
require an immediate solution.

(Source: Dale, 2004)

Box 3.5: Participatory Evaluation of Disease Control Through

Vaccination Campaigns

The KYEEMA Foundation implemented the “Regional Newcastle Disease

Control Project” in Malawi, Mozambique, Tanzania and Zambia with the
support of AusAID. A participatory evaluation was carried out in 3 villages
of Malawi to evaluate the impact of vaccination campaigns. All the male and
female farmers interviewed had chickens vaccinated 3 times by community
vaccinators in March, July and November 2011.

The first question asked was: Since the first vaccination did the number of
chickens in the flock increase, stay the same or decrease? Each participant
was asked to respond by placing a stone on one of three possible answers
written on a flip chart on the ground. The answers were used to generate the
following table.

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Management of
CSR Programmes
Response Village 1 Village 2 Village 3
12 10 7 8 Men 16 7 Men
Women Men Women Women
Increased 11 8 7 6 12 7
(92%) (80%) (100%) (75%) (75%) (100%)
Stayed the 1 (8%) 0 0 0 2(12.5%) 0
same
Decreased 0 2 0 2 2 0
( 20%) (25%) (12.5%)
Total 12 10 7 8 16 7
(100%) (100%) (100%) (100%) (100%) (100%)

The same exercise also included the following questions:

• Since the 1st vaccination did the number of birds that died increase, stay
the same or decrease?
• Since the 1st vaccination did the number of chickens sold increase, stay
the same or decrease?
• Since the 1st vaccination did the number of chickens consumed increase,
stay the same or decrease?

To evaluate the increase in size of household flocks since vaccination in

2011, the participants were asked to state the number of chickens they had in
January 2010, and later the number of chickens they had in January 2012. By
analysing the median and the average or calculating the average percentage
increase per household, it is possible to see the evolution of flock size.
Similarly, it is possible to evaluate the number of chickens sold and
consumed.

(Source : Bagnol, 2014)

3.6 EVALUATION APPROACHES

Though several approaches are available, Logical Framework Approach (Box
3.6) and Bennett’s Hierarchy Approach (Bennett, 1979) (Box 3.7) provides a
comprehensive framework to evaluate inputs, outputs and outcomes of a CSR
programme. Both these approaches provide a process by examining the chain
of means (what actions we do in CSR programme) and ends (the result of
actions) through different levels.

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 Box. 3.6: LFA Pertaining to Evaluation of Kisan Call Centers in Evaluation of CSR
Programmes
Tamil Nadu
Output Outcome
Inputs
Activities Participants

1. level I, II and III centre 1. Instant reply to

staff farmers at level I.
2. Telephone, ICT, and 2. Escalating the Farmers
Ag. technology unanswered calls
3. Dedicated line with a to level II and III Short

toll free number from level I term

Situation identified by MOA, office.
Mission
Objectives of GOI. 3. Documentation
KCC 5. IVRS and reporting to

6. Fund by DAC DAC by level III

centre. Scientists
7. Knowledge
Management System 4. Reply to farmers
Medium
within 72 hours
8. Service timings: 6:00 term
through post/e-
A.M to 10:00 P.M
mail through off-
Assumptions 9. Documentation of Ag.
line mode by
Environmental technologies and Level I
factors level III centre.
FAQs. officers
What do you 5. M&E by level III.
want to know? 10. Capacity building
6. Data base using Long
KMS. term
7. Training to level I
officials
8. Documenting
FAQs
9. Mass media adds.

Outcomes

Short Term Medium Term Long Term

1. Awareness 1.Adoption of the advices 1. Overall development of

about KCC recommended by KCC agriculture through TOT
2. Participation 2. Gratification of the services 2. Reduction of gap
in KCC of KCC between research
3. Information sharing about extension and farmer
1551 and advices given by KCC linkage.

(Source : Karthikeyan et al., 2006)

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Management of
CSR Programmes

Box.3.7: Bennett's Hierarchy Applied in Evaluation of Contract and

Non Contract Broiler Farming Systems
Evaluation Measurement Indicators
hierarchy
Level 7 : Socio- • SWOT parameters
End results economic • FGD on: selection of contract farmers;
changes and terms and conditions applicable in CBF
impacts
Level 6 : Technical • Non-adoption, discontinuation, partial
Practice advices adoption and full adoption of technical
change adoption advices
Level 5: Farmers’ • Perceptions on inputs (chicks, feed,
KASA perceptions medicines and EAS) and outputs (broiler
birds, manure value and payment system)
Level 4 : Farmers’ • Factors of motivation to do CBF and
Reactions feedback NCBF
• Reasons to change integrator(s) or input
providers in the past two years
Level 3 : Technical and • Broiler birds (flock size, mortality number,
Outputs economic birds sold, sale age, sales rate and birds
performance lifting days)
• Productivity (mortality percentage, birds
sold, feed consumption and body weight)
• Efficiency (FCR, sale age, weight
gain/day)
• Economics of inputs and outputs
• EAS (frequency of information from
various sources)
Level 2 : Activities in • Physical and human resource activities in
Activities CBF and CBF and NCBF
NCBF
Level 1: Investments • Fixed and variable costs
Inputs and • Age, gender, education, social category,
Demographics family and size, poultry occupation and
experience
(Source : Sasidhar and Suvedi, 2015)

128
3.6.1 Challenges in Programme Evaluation Evaluation of CSR
Programmes
The results of CSR programme, especially knowledge, skills, aspiration
changes and long term outcomes are often intangible to measure. Suvedi and
Vander Stoep (2014) outlined three major challenges in evaluation:

a) Frequent use of descriptive, one-shot case study for impact

evaluation and lack of precise and straight assessments of cause-and-
effect outcomes of programme. The CSR department needs to establish a
scientific knowledge base and generate evidence on its work. Example:
Do farmers who attend trainings adopt new technologies earlier than
those who do not?

b) It is difficult to establish a control or comparison group, maintain

uniform treatments and measure long-term impacts of CSR programme.

c) Non-availability / inadequate baseline and monitoring data on impact

indicators to see expanded impacts over time.

Check Your Progress 3

Note: a) Write your answer in about 50 words.

b) Check your answer with possible answers given at the end of the unit.

1. Give examples for the following conventional evaluation data collection

methods.
Quantitative Methods: ……………………………………………………
Qualitative Methods: …………………………………………………….
2. Do you agree that in participatory evaluation methods have advantage in
terms of stakeholders’ involvement? Justify your answer.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
3. Name two comprehensive evaluation approaches.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
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Management of
CSR Programmes
3.7 LET US SUM UP
Evaluation has been neglected and mistakenly seen as a fault finding
mechanism. It is to be understood that evaluation of CSR programmes and
projects is a learning process and our past experiences guide us to a better
future. Therefore every CSR professional should acquire evaluation as a core
competency to assess the impact of their programmes.

In this unit, we discussed the meaning, steps in evaluation and differentiated

between appraisal, monitoring, evaluation and impact assessment. Later we
discussed important types, tools and techniques of evaluation by CSR
programme stage and analyzed evaluation designs, evaluation data collection
methods, and evaluation approaches. At the end we discussed the challenges
in evaluation of CSR programmes.

3.8 KEYWORDS
Appraisal: It is a critical examination of a programme / project proposal,
normally before implementation and funding with respect to economic
viability, technical feasibility, and / social desirability.

Baseline Evaluation: Needs assessment is a form of baseline evaluation to

find out the target group and their perceived needs/expectations from the
CSR programme.

Evaluation: It is a systematic collection and analysis of information about

the characteristics and outcomes of a CSR programme/project as a basis of
judgment to improve its effectiveness and/or to inform decisions about
current or future programming.

Follow-up Evaluation: It is undertaken long after completion of the

programme to see whether there are any long-term changes among
beneficiaries.

Formative Evaluation: It is undertaken during the CSR programme

implementation stage to determine whether the programme is going as per
plan, and changes, if any, are required to meet the objectives.

Impact Assessment: Building on appraisal, monitoring and evaluation, the

focus of impact assessment is on longer-term and wider-ranging changes
beyond the immediate results of the programme or project.

Monitoring: It is a continuous process starts and ends with a programme /

project which is required for immediate use and mid-course correction.

Summative Evaluation: It is undertaken once the CSR programme

achieves a stable state of operation or towards the end of a programme to
find out its results, effectiveness, impact and further course of action.

130
3.9 BIBLIOGRAPHY AND SELECTED Evaluation of CSR
Programmes
READINGS
Bagnol, B. (2007.) Participatory Tools for Assessment and Monitoring of
Poultry Raising Activities and Animal Disease Control. HPAI
Communication Workshop, Bangkok: FAO.

Bagnol,B. (2014.) Conducting Participatory Monitoring and Evaluation.

Pages 81-85 in FAO, Decision tools for family poultry development. FAO
Animal Production and Health Guidelines, No. 16, Rome, Italy: FAO.

Bennett, C.F. (1979.) Analyzing Impacts of Extension Programs.

Washington, D.C., USA: U.S. Department of Agriculture.

Dale R, (2004.) Evaluating Development Programmes and Projects, New

Delhi, India: Sage Publications

Karthikeyan, C., Vijayaraghavan, K. and Lavanya, P. (2007). Formative

Evaluation of Kisan Call Centres. Tamil Nadu. Indian Journal of Extension
Education, 43(1 &2):20-25.

Preetha, S. and Vanniarajan, T. (2017). Evaluation of Corporate Social

Responsibility from a Stakeholder’s Perspective – A Case Study of Aparajitha
Corporate Services in India. Asian J Bus Ethics 6, 41–55 (2017).
https://doi.org/10.1007/s13520-016-0068-0.

Sasidhar, P. V. K., Suvedi, M., Vijayaraghavan, K., Singh, B., and Babu, S.
(2011.) Evaluation of a Distance Education Radio Farm School Programme
in India: Implications for Scaling-up. Outlook on Agriculture, 40(1):89-96.

Sasidhar, P.V.K. and Suvedi, M. (2015.) Integrated Contract Broiler

Farming: An Evaluation Case Study in India. Urbana, IL: USAID-MEAS.

Suvedi, M., and Vander Stoep, G. (2014.) Improving the Monitoring and
Evaluation of Agricultural Extension Services. Discussion Paper. East
Lansing, Michigan, USA: Department of Community Sustainability,
Michigan State University.

Suvedi, M. and Kaplowitz, M.D. (201 6.) Process Skills and Competency
Tools – What Every Extension Worker Should Know – Core Competency
Handbook. Urbana, IL: USAID-MEAS.

TML (2021). Tata Motars Limited Annual CSR Report (2020-21).

https://www.tatamotors.com/wp-content/uploads/2021/06/30063751/annual-
csr-report-2020-21.pdf

USAID (2011.) Evaluation Policy. Washington, D.C., USA: Bureau for

Policy and Planning.

131
Management of Varghese, N. and Sasidhar P.V.K. (2018). Capacity Building in Corporate
CSR Programmes
Social Responsibility through Open and Distance Learning (ODL): A Need
Assessment Study. Management Research Review, 8(1): 104-115.

3.10 CHECK YOUR PROGRESS – POSSIBLE

ANSWERS
Check Your Progress 1

1. Evaluation is a systematic collection and analysis of information about

the characteristics and outcomes of a programme/project as a basis of
judgment to improve its effectiveness and/or to inform decisions about
current or future programming.

2. Appraisal is a critical examination of a programme proposal, normally

before implementation and funding with respect to economic viability,
technical feasibility, and / social desirability. Monitoring is a continuous
process starts and ends with a programme / project which are required
for immediate use and mid-course correction. Evaluation is an in-depth
one shot operation at a point of time usually at completion or mid way of
programme undertaken for future planning/ replication/ expansion.
Impact Assessment focus is on longer-term and wider-ranging changes
beyond the immediate results of the programme or project.

Check Your Progress 2

1. Baseline, formative, summative and follow-up evaluations are different

types of evaluation.

2. Planning stage (Needs assessment, Feasibility study and Base line

study); Implementation stage (Formative evaluation); Conclusion stage
(Summative evaluation)

Check Your Progress 3

1. Quantitative Methods (Survey and census data); Qualitative Methods (

FGD, participant observation, case study).

2. Yes. They involve stakeholders in programme evaluation through

partnerships and dialogues taking into account the aspects that are often
left over by evaluators and can only be identified by stakeholders
themselves.

3. Logical Framework Approach and Bennett’s Hierarchy Approach

provides a comprehensive framework to evaluate inputs, outputs and
outcomes of a development programme.

132
UNIT 4 SWOT ANALYSIS AND BAR SWOT Analysis
and Bar Charts
CHARTS

Structure

4.1 Introduction
4.2 SWOT Analysis
4.2.1 SWOT as a CSR Project Management Tool
4.2.2 Conducting the SWOT Analysis
4.3 Bar Charts
4.3.1 Gantt Chart
4.3.2 Milestone Chart
4.4 Let Us Sum Up
4.5 Keywords
4.6 Bibliography and Selected Readings
4.7 Check Your Progress- Possible Answers

4.1 INTRODUCTION
The CSR project planning and implementation involves decision making
related to a number of interrelated time bound project activities. The CSR
professionals therefore, often depends on tools and techniques that are
effective enough not only for drawing-up the best possible initial plan but
also capable of projecting instantaneously the impact of deviations so as to
initiate necessary corrective measures. The search for an effective tool has
resulted in development of a variety of project formulation and management
techniques. These techniques can be classified under the following
categories:
• SWOT Analysis
• Bar charts
• Networks.

In this unit, we will discuss the meaning, concept, characteristics, advantages

and limitations of SWOT analysis and bar charts as CSR project management
tools.

After studying this unit you should be able to:

• Discuss the meaning and concept of SWOT analysis as a project

management tool.
• Understand the concept of Gantt and Milestone charts and use them as
CSR project management tools.
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Management of
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4.2 SWOT ANALYSIS
The origins of the SWOT analysis technique is credited by Albert Humphrey,
who led a research project at Stanford University in the 1960s. The goal was
to identify why corporate planning failed. The resulting research identified a
number of key areas and the tool used to explore each of the critical areas
was called SOFT analysis. Humphrey and the original research team used
the categories “What is good in the present is Satisfactory, good in the future
is an Opportunity; bad in the present is a Fault and bad in the future is a
Threat.” Later this concept was further practiced and evolved as SWOT
analysis.

Factors internal to the system are strengths (S) or weaknesses (W) and those
external are opportunities (O) or threats (T) and such an analysis of the
strategic environment is referred to as a SWOT analysis (Bradford et al.,
1999). As a project management tool, it provides information that is helpful
in matching the resources and capabilities to the competitive environment in
which any CSR project operate.

4.2.1 SWOT As a CSR Project Management Tool

SWOT is a strategic planning tool used to evaluate the strengths, weaknesses,
opportunities, and threats of a CSR project. It involves specifying the
objective of the project and identifying the internal and external factors that
are favourable and unfavourable to achieving that project objective. The
strengths and weaknesses usually arise from within an organisation, and the
opportunities and threats from external sources as described below.

Strengths: Strengths are the attributes of the CSR department that help
achieve the project objective.

Example: Track record of the CSR department in completing similar projects

(similar successes), Resource availability, Skill levels, Processes and
systems, Reputation etc.

Weaknesses: Weaknesses are the attributes of the CSR department that stop
achievement of the project objective.

Example: Gaps in knowledge and expertise, timescale and deadlines, budget

and funding,

competing projects, processes and systems etc.

Opportunities: Opportunities are the external conditions that help achieve

the project objective.

Example: Technology and infrastructure development, changing behaviour of

the beneficiaries, new innovations (R&D) etc.

134
Threats: Threats are the external conditions that could damage the CSR SWOT Analysis
and Bar Charts
project.

Example: Political influences, environmental factors, competitor activity,

economy, seasonal effects etc.

SWOT analysis for project management is a simple, yet effective process. It

allows the CSR department to identify areas that needs improvement. By
implementing the correct methodologies for the analysis, it is possible to
ensure that a project will be completed on time and within budget. SWOT
stands for Strengths, Weaknesses, Opportunities and Threats.

The use of SWOT analysis lets the CSR department to improve the whole
project or individual tasks where better efficiency can be gained. It also
mitigates risks associated with the tasks and optimizes the whole process.
The team members get to do more with less. Because of the nature of the
analysis, it is important to conduct the SWOT analysis during the startup
phase of the CSR project. It can provide a solid backbone to the project plan
(Rosanne Lim (2012).

4.2.2 Conducting the SWOT Analysis

The SWOT analysis can be conducted either at the initial or middle phase of
the project. However, it is important to have a clear objective during SWOT
analysis sessions. If the analysis is done during the initial startup phase, key
members must come together and identify all required tasks and the potential
risks to each step of the project. If it is done at the middle of the project, the
main focus is usually to reassess the schedule, the budget, or to conduct a
cost/benefit analysis of certain processes. The common questions to be asked
in SWOT analysis are summarized in Box 4.1(Rosanne Lim, 2012).

Box 4.1: Common Questions in SWOT Analysis

Strengths:
• Does the CSR department have all the necessary talent in-house?
• Is the budged sufficient to complete all the tasks involved?
• What are the benefits of completing the project?
• Has the CSR department handled similar projects in the past?
• How experienced are the CSR team members?
Weaknesses:
• Does the CSR department have the resources to provide contingency
funding?
• If the team doesn’t have all the necessary skills, what areas need to be
outsourced?
• Is the schedule realistic?
• What are the potential drawbacks of the CSR project?

135
Management of Opportunities
CSR Programmes
• Will this project take advantage of competitor weaknesses?
• What are the latest trends in the industry?
• Are there new technologies that the CSR department should be aware of?
• Can this project help in different areas of the business?
Threats:
• Are the CSR team members difficult to replace?
• Has the new technology (if it will be applied) been tested?
• Could changing trends affect the project?
• Can the capability be copied by competitors?
Source : Rosanne Lim (2012)

Advantages of SWOT

• Helps in identifying basic information for CSR project planning and

management.
• Assemble project’s strengths and weaknesses, maximize opportunities
and overcome threats.
• Helps in identifying core competencies of project team and setting of
project objectives.
• Provide information that helps in synchronizing the project’s resources
and capabilities with the competitive environment in which the project
operates.
Disadvantages of SWOT
• Categorizing aspects as strengths, weaknesses, opportunities and threats
might be very subjective
• It stresses upon the significance of SWOT aspects, but it does not tell
how an organization can identify these aspects for itself.
• Government legislation and economic environment related problems
may persuade organisations to compile lists rather than think about what
is essential to achieving objectives.
• Presents lists uncritically and without clear prioritization. For example,
weak opportunities may appear to balance strong threats.
• Usually, a simple list and not critically presented.

Check Your Progress 1

Note: a) Write your answer in about 50 words.

b) Check your answer with possible answers given at the end of the
unit.
1. Ask some of your colleagues what they mean by SWOT analysis?
Compare their views with the one given in this section and identify the
common features.
136
 …………………………………………………………………………… SWOT Analysis
and Bar Charts
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
2. Do you agree that SWOT analysis is useful for CSR project
management? Support your answer with examples.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

Activity 1: Identify a CSR project and its objectives. Write two attributes on
Strengths, Weaknesses, Opportunities and Threats related to the identified
project objectives in the following grid.
Project Title :
Project Objectives:

Strengths Weaknesses
1 1
2 2
Opportunities Threats
1 1
2 2

4.3 BAR CHARTS

The Bar charts are the pictorial representation of various tasks required to be
performed for accomplishment of the project objectives. These charts have
formed the basis of development of many other project management
techniques. Two main bar charts are:

i. Gantt chart

ii. Milestone chart

137
Management of 4.3.1 Gantt Chart
CSR Programmes
A Gantt chart is a type of bar chart that illustrates a CSR project schedule.
For scheduling and reporting about the progress of projects, Henry L Gantt
developed the system of bar charts in 1917. These charts latter were named
after him as Gantt Charts (Box 4.2). Although now regarded as a common
charting technique, Gantt charts were considered revolutionary when they
were introduced. For your understanding a Gantt chart showing the tasks of
12 months duration survey project is given in Fig. 4.1

Fig. 4.1: Gantt chart showing the tasks of 12 months duration survey
project

Task Duration 1 2 3 4 5 6 7 8 9 10 11 12
(Months)

1. Literature 2*
collection and
theoretical
orientation
2. Identificatio 2*
n of study area
and selection of
respondents
3. Interview 1
schedule
preparation
4. Pre-testing 1
of interview
schedule and
modifications
5. Data 4
collection

6. Statistical 2
treatment and
analysis of data
7. Report 2
Writing

* Concurrent tasks - Time duration to complete both tasks is two months.

Box 4.2: Characteristics of Gantt Charts

• Specify the start and finish time for various tasks on a horizontal
timescale
• Tasks are indicated by means of a bar, preferably at equi-distance in the
vertical axis and time is plotted in the horizontal axis.
• Gantt charts illustrate the start and finish dates of the terminal elements
138 and summary elements of a project - Terminal elements and summary
 elements comprise the work breakdown structure of the project. SWOT Analysis
and Bar Charts
• Some Gantt charts also show the dependency relationships between
activities.
Example: Unless task 3 is completed, task 4 cannot start (Fig 4.1).
• Length of the bar indicates required time for the task, whereas the width
has no significance.

Advantages

• Gantt charts have become a common technique for representing the

phases and activities of a project work breakdown structure, so they can
be understood by a wide audience.

• Useful and valuable for small projects that fit on a single sheet or screen.

Limitations

Though the bar chart is comprehensive, convenient, and very effective, it has
the following limitations

• Like many other graphical techniques are often difficult to handle large
number of tasks of a complex project. They can become quite unwieldy
for CSR projects with more than about 30 activities.

• Larger Gantt charts may not be suitable for most computer displays. A
related criticism is that Gantt charts communicate relatively little
information per unit area of display. That is, projects are often
considerably more complex than can be communicated effectively with a
Gantt chart.

• Does not indicate the interrelationship between the tasks i.e., if one CSR
activity overruns time what would be the impact on project completion?

• Gantt charts only represent part of the triple constraints of projects,

because they focus primarily on schedule management. Moreover, Gantt
charts do not represent the size of a project or the relative size of work
elements, therefore the magnitude of a behind-schedule condition is
easily miscommunicated. If two projects are the same number of days
behind schedule, the larger project has a larger impact on resource
utilization, yet the Gantt does not represent this difference.

• Although project management software can show schedule dependencies

as lines between activities, displaying a large number of dependencies
may result in a cluttered or unreadable chart.

• Because the horizontal bars of a Gantt chart have a fixed height, they can
misrepresent the time-phased workload (resource requirements) of a
project. In the example shown above, tasks 6 and 7 appear to be the same
size, but in reality they may be orders of magnitude different. A related
criticism is that all activities of a Gantt chart show planned workload as 139
Management of constant. In practice, many activities (especially summary elements)
CSR Programmes
have front-loaded or back-loaded work plans, so a Gantt chart with
percent-complete shading may actually miscommunicate the true
schedule performance status.

4.3.2 Milestone Chart

Milestone chart is an improvement over the Gantt chart by introducing the
concept of milestone. The milestone, represented by a triangle over a task in
the bar chart indicates completion of a specific phase of the task. For example
pre-testing of interview schedule and modifications (Task 4 in the Fig 4.1)
includes pre-testing of interview schedule in the field (about 3 weeks) and
modifications of interview schedule based on pretesting experience (1 week).
From the simple Gantt chart, it is difficult to monitor progress of the task 4.
Introduction of a milestone at the end of 3rd week and 4th week would specify
that the pre-testing would be completed in 3 weeks time and modifications in
interview schedule would be completed in 1 week time (Fig. 4.2).

Fig.4.2: Milestone chart showing the milestones in task 4 of a 12 months

survey project

Task Duration 1st 2nd 3rd 4th

(Months) Week Week Week Week

Pre-testing of 1
interview schedule
and modifications

Characteristics

• In a milestone chart a task is broken down in to specific phases (CSR

activities).

• After accomplishment of each of the specific CSR activity a milestone is

reached or in other words an event occurs.

• The chart also shows the sequential relationship among the milestones or
events within the same task but not the relationship among milestones
contained in different tasks. For example in figure, the milestone 2 of
task cannot be reached until the milestone 1 is crossed and the activity
between milestone 1 and 2 is over.

Advantages

• A milestone chart depicts key events along a time scale.

• It indicates completion time of key events in a task.

• Useful for top level reporting, so management does not become bogged
down in the minute details of project.
140
Limitations SWOT Analysis
and Bar Charts
• The relationships between the milestones in different tasks are not clear
in the milestone chart.

• Does not show interdependence between tasks.

• Does not indicate critical activities.

• Does not consider the concept of uncertainty in accomplishing the task.

• Very cumbersome to draw the chart for large projects.

Check Your Progress 2

Note: a) Write your answer in about 50 words.

b) Check your answer with possible answers given at the end of the
unit.
1. Ask some of your colleagues what they mean by bar charts? Compare
their views with the one given in this section and identify the common
features.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
2. Do you agree that bar charts are useful for project management? Support
your answer.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
3. Write two advantages of Gantt charts and Milestone charts.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
141
Management of
CSR Programmes
Activity 2: Draw a Gantt chart for the following project activities.

S.No. Activity Time requirement (weeks)

1 Development of land 9

2 Ploughing and minor leveling 4

3 Digging of pits for planting 5

4 Purchasing of farm yard manure 3

5 Purchasing of plants 10

6 Application of farm yard manure 2

7 Transplanting plants 2

4.4 LET US SUM UP

In this unit we started by looking into the history, meaning and how SWOT
analysis is useful as a CSR project management tool. Later we discussed how
to conduct SWOT analysis, common questions to be asked, merits and
demerits of SWOT analysis. In the second half of the unit, we discussed the
meaning and concept of Bar charts, Gantt chart and Milestone charts along
with their advantages and limitations as CSR project management tools.

4.5 KEYWORDS
SWOT Analysis: Factors internal to the system are strengths (S) or
weaknesses (W) and those external are opportunities (O) or threats (T) and
such an analysis of the strategic environment is referred to as a SWOT
analysis

Strengths: Strengths are the attributes of the organisation that help achieve
the project objective.

Weaknesses: Weaknesses are the attributes of the organisation that stop

achievement of the project objective.

Opportunities: Opportunities are the external conditions that help achieve

the project objective.

Threats: Threats are the external conditions that could damage the project.

Activity: Is the actual performance of a task.

Bar Charts: Bar charts are the pictorial representation of various tasks
required to be performed for accomplishment of the project objectives.

142
Gantt Chart: Gantt chart is a type of bar chart that illustrates a project SWOT Analysis
and Bar Charts
schedule.

Milestone Chart: It is an improvement over the Gantt chart by introducing

the concept of milestone.

4.6 BIBLIOGRAPHY AND SELECTED

READINGS
Bradford, R.W., Duncan, P.J. & Tarcy, B. (1999). Simplified Strategic
Planning: A No-nonsense Guide for Busy People Who Want Results Fast.
New York: Chandler House.

Duncan Haughey ( 2017). SWOT Analysis. Available at

https://www.projectsmart.co.uk/swot-analysis.php.

Rosanne Lim (2012). Why You Should Do a SWOT Analysis for Project
Management. Available at https://project-management.com/why-you-should-
do-a-swot-analysis-for-project-management/.

Srinath,L.S. 1975. PERT and CPM Principles and Applications, East-West

Press, New Delhi.

Venkateswarlu, K and Raman, K.V. 1993. Project Management Techniques

for R&D in Agriculture. Sterling Publishers Pvt.Ltd., New Delhi.

4.7 CHECK YOUR PROGRESS - POSSIBLE

ANSWERS
Check Your Progress 1

1. Factors internal to the system are strengths (S) or weaknesses (W) and
those external are opportunities (O) or threats (T) and such an analysis
of the strategic environment is referred to as a SWOT analysis

2. Yes. SWOT analysis for CSR project management is a simple, yet

effective process. It allows the CSR department to identify areas that
needs improvement. By implementing the correct methodologies for the
analysis, it is possible to ensure that a project will be completed on time
and within budget. SWOT stands for Strengths, Weaknesses,
Opportunities and Threats.

Check Your Progress 2

1. Bar charts are the pictorial representation of various tasks required to be

performed for accomplishment of the project objectives. These charts
have formed the basis of development of many other project
management techniques. Two main bar charts are: Gantt charts and
Milestone charts. Compare this with the views of your colleagues.
143
Management of 2. Yes. Charts sspecify the start and finish time for various tasks ; charts
CSR Programmes
illustrate the start and finish dates of the terminal elements and summary
elements of a project ;

3. Gantt charts have become a common technique for representing the

phases and activities of a project work breakdown structure, so they can
be understood by a wide audience. They are also useful and valuable for
small projects that fit on a single sheet or screen. Milestone charts
depicts key events along a time scale. They indicate completion time of
key events in a task and are useful for top level reporting, so
management does not become bogged down in the minute details of
project.

144
UNIT 5 NETWORKS Networks

Structure

5.1 Introduction
5.2 Networks
5.3 Networks Terminology
5.4 Rules for Preparation of Networks
5.5 Network Preparation
5.6 Network Example
5.7 Let Us Sum Up
5.8 Keywords
5.9 References and Selected Readings
5.10 Check Your Progress- Possible Answers

5.1 INTRODUCTION
Dear Learner,

In the previous unit, we discussed the application of SWOT analysis and bar
charts as CSR project formulation and management tools. The networks, their
terminology, rules for preparation of networks and their uses with examples
are discussed in this unit for your understanding. To overcome the
shortcomings in Gantt and Milestone charts, the networks are developed. The
network is a logical extension of Milestone chart incorporating
interrelationship between and among all the milestones in a CSR project.

After studying this unit you should be able to:

• Describe the networks as a CSR project management tool.
• Draw and analyze a project network.

5.2 NETWORKS
Two widely used tools for network analysis are:

i. Programme Evaluation and Review Technique (PERT)

ii. Critical Path Method (CPM).

The costs for various activities of the CSR project / programme are
introduced by CPM. While it does not mean that PERT deliberately omits the
costs, one has to assume that costs vary with the time. For a particular CSR
project / programme, if time is reduced by 4 weeks, it implies that some
money also saved. When time requirement for each CSR activity is estimated
145
Management of accurately, then CPM is more appropriate and relevant. On the other hand, if
CSR Programmes
accurate time estimation is difficult for each CSR activity and need to
overcome this uncertainty, then the PERT is the best choice.

Parameter PERT CPM

What ? Project management model to Mathematically based
analyze and represent the tasks algorithm for
involved in project completion. scheduling set of
project activities.
Purpose Analyze time needed to complete For effective project
project tasks and identify management.
minimum time needed to
complete the project
Time Probabilistic Deterministic
Estimate
Application Scheduling and monitoring the Optimizing resource
project allocation

When each CSR activity is associated with the costs, application of CPM is
more appropriate. For those projects, time is more important compared to
costs because of uncertainty, then PERT is more useful. Let us discuss more
about network terminology, network preparation rules and analysis of
networks in the subsequent sections.

Check Your Progress 1

Note: a) Use the spaces given below for your answers.

b) Check your answer with those given at the end of the unit.
1. Expand PERT and CPM.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
2. Write two differences between PERT and CPM.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
146
5.3 NETWORKS TERMINOLOGY Networks

The commonly used terms in the networks are given below for your
understanding.

Activity: Is the actual performance of a task which consumes time, requires

resources, and it can be understood as representing the time, effort, and
resources required to move from one event to another. Activity is represented
by an arrow ( ). Every activity lies between events.

Examples: Needs assessment schedule preparation, data collection.

Dummy activity: An activity that indicates precedence relationship and

requires neither time nor resource. It is usually represented by a broken arrow
( )

Event: Event is a point that marks the start or completion of one or more
tasks. Event is usually denoted by a circle which is divided into two equal
halves. The left half is meant for event number. The right half is further
divided into two segments, the top representing Earliest Starting Time (EST)
and the bottom Latest Starting Time (LST) (Fig.5.1).

Fig 5.1. Event representation with EST and LST

Examples: Needs assessment schedule preparation completed, data collection

started.

Predecessor event: An event that immediately precedes some other event

without any other events intervening.
Successor event: An event that immediately follows some other event
without any other events intervening.
Burst event: An event which gives rise to more than one activity.
Merge event: The event which occurs only when more than one activity are
accomplished.
Earliest Start Time (EST): The earliest possible time at which the event can
occur. The EST of an activity is the time before which it cannot commence
without affecting the immediate preceding activity.
147
Management of Latest Start Time (LST): The latest time at which the event can take place. It
CSR Programmes
indicates the latest time at which an activity can begin without delaying the
project completion time.
Critical Events: These are events which fall on the critical path. Every
critical event will have the same EST and LST.
Critical Path: The longest possible continuous pathway taken from the initial
event to the terminal event. Any time delays along the critical path will delay
the reaching of the terminal event by at least the same amount.
Critical Activity: An activity that has total float equal to zero.
Optimistic time (To): The minimum possible time required to accomplish a
task, assuming everything proceeds better than is normally expected.
Pessimistic time (Po): The maximum possible time required to accomplish a
task, assuming everything goes wrong (but excluding major catastrophes).
Most likely time (TM): The best estimate of the time required to accomplish a
task, assuming everything proceeds as normal.
Expected time (TE): The best estimate of the time required to accomplish a
task, assuming everything proceeds as normal (the implication being that the
expected time is the average time the task would require if the task were
repeated on a number of occasions over an extended period of time) TE = (To
+ 4 TM + Po) ÷ 6
Float or Slack: Is the amount of time that a task in a project network can be
delayed without causing a delay in subsequent tasks (free float) or project
completion (total float).
Event Slack: It is the slack time associated with an event. ES = LST – EST
Lead time: The time by which a predecessor event must be completed in
order to allow sufficient time for the activities that must elapse before a
specific PERT event is reached to be completed.
Lag time: The earliest time by which a successor event can follow a specific
PERT event.
Fast tracking: Performing more critical activities in parallel
Crashing critical path: Shortening duration of critical activities
Activity Table: Table developed after breaking the project into activities
indicating their symbols, time requirement and logical relationships
(preceding and succeeding activities).
Danglers: Loosely attached activities. They may end abruptly without any
succeeding activity / activities.
Normal Time: This is the time required when activities are performed in
normal way. It is usually the longest time for the project and entails money
saving is there.
148
Check Your Progress 2 Networks

Note: a) Write your answer in about 50 words.

b) Check your answer with possible answers given at the end of the
unit.
1. Write two differences between EST and LST.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
2. What do you mean by critical event?
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
3. Write the formula for calculating expected time (TE) to accomplish a
task.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….

5.4 RULES FOR PREPARATION OF NETWORKS

For your easy understanding, some basic rules for preparing networks are
described below with diagrams.

• Activity is indicated by an arrow which is drawn from left to right.

Neither the orientation of arrow nor its length has any significance.
Every activity starts and ends with an event ( Fig. 5.2)

Fig. 5.2 Activity with tail and head events Fig. 5.3 Burst event

• Any number of activities may emerge out from an event. This event is
named as burst event (Fig. 5.3).
149
Management of • Any number of activities may merge with an event (Fig 5.4)
CSR Programmes

Fig. 5.4: Merging event

• When two or more activities have to be completed before the next event
occurs, they should not be represented as merged activities as shown in
(a), which is wrong. This can be represented as sequential activity by
introducing the dummy activity as shown in (b) (Fig 5.5).

Fig. 5.5: Dummy activity representation in network

A project with 12 preceding and succeeding activities is given in Table 5.1.

Table 5.1: Preceding and succeeding activity relationships of a project

activities

Activity Preceding Activity Preceding

Activity Activity
A - G D,F
B - H E
C - I F
D A,B,C J H
E C K E,G
F B L I,J,K

The network of the project is given in Fig.5.6 with dummies between B&D;
C&D; F&G and E&K. The dummies are represented as Z1, Z2, Z3, and Z4 and
so on.

150
 Networks
F

I
B
Z1 Z3

A D G K L

C
Z2 J
Z4

E H

Fig.5.6: Network of the project

It is preferable to use D.R. Fulkerson’s rules to give numbering as indicated

below.
i. The initial event should be started with 1.
ii. Eliminate all activities emerging out from event number 1 and give
number 2 to the succeeding event. If two or more events occur
concurrently after the first event, give 2,3,4 and so on for succeeding
events.
iii. Delete all the activities emerging out from 2,3, 4 events and so on and
give the new event numbers 5,6,7 and son on.
iv. Continue this process till the entire network is completed.
This process is continued till the entire network with event numbers is
completed (Fig 5.7).

2 F
5

I
B
Z1 Z3

A D 6 G K L
1 3 8 10 11

C
Z2 J
Z4

E 7 H
4 9

Fig.5.7: Network of the project with event numbers

151
Management of • An event will occur only after all the activities merging into it are
CSR Programmes
completed. Event numbers are shown in the left half of the circle and the
EST and LST on the right half.

• After drawing the network, the time requirement for each activity is
indicated.

Check Your Progress 3

Note: a) Use the spaces given below for your answers.

b) Check your answer with those given at the end of the unit.
1. Write D.R. Fulkersons’ rules for numbering the events.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
2. Prepare the network and give the event numbers for the following.
PERT Event Preceding Event
Event No 1 –
Event No 2 1
Event No 3 2
Event No 4 2,3
Event No 5 4
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….

5.5 NETWORK PREPARATION

Following steps are useful in preparing networks.

Step 1 : Write down the specific objectives of the project.

Step 2 : Based on the objectives, write technical programme details.
Step 3 : Break the technical programme into specific activities.
Step 4 : List out all the activities showing the preceding and succeeding
relationships.
152
Step 5 : Give symbols for activities with capital letters i.e. A,B,C,D,E and so Networks
on
Step 6 : Calculate the expected time by using the following equation.
Expected Time TE = (To + 4 TM + Po) ÷ 6

Where,

• To is the Optimistic time,(minimum time assuming everything goes

well)

• TM is the Most likely time, (modal time required under normal

circumstances)

• TP is the Pessimistic time, (maximum time assuming everything goes

wrong)

Step 7: Draw the flow chart as it helps in preparing the network

Step 8 : Draw the network by following the rules for preparation of networks
as discussed in the previous section.

Step 9: Write the event numbers, EST and LST. By using forward pass (start
to end) and backward pass (end to start), the network would be analysed as
follows.

Event Numbers: Give numbers to various events (see the previous section for
details on numbering)

Forward Pass: (a) Consider the EST of the first activity as zero (b) Start
from the first event for computation of EST. Add the activity duration to the
EST of preceding event to get the EST of succeeding event. Whenever an
event is competing with two or more activities, the largest value must be
considered to arrive at the EST of the succeeding event. EST is the result of
forward pass.

Backward Pass: (a) Consider the LST value of the last event as equal to its
EST value. (b) In contrast to the forward pass, start from the last event and
subtract the activity duration from the LST of succeeding event to arrive at
the LST of the preceding event. When two or more activities are backing to
an event, the smallest of these must be taken into account for the LST of
preceding event. LST is the result of backward pass.

Step 10: Compute the critical path taking into account all the critical
activities. This is the longest path in terms of time for accomplishing the
project.

Step 11: Calculate activity slack (total float), event slack , free float and
independent float by using the following formulae

Activity slack = LST of end event – EST of starting event – Duration of

reference activity
153
Management of Event slack = LST of event – EST of event
CSR Programmes
Free float = EST of end event –EST of starting event – Duration of reference
activity

Independent float = EST of end event – LST of starting event – Duration of

reference activity

Step 12: Establish job boundary limits for all the activities which include
duration of activity, event number, EST, LST, EFT, LFT, event slack, total
float, free float and independent float.

Check Your Progress 4

Note: a) Write your answer in about 50 words.

b) Check your answer with possible answers given at the end of the
unit.
1. How do you calculate activity slack, free float and independent float?
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….

5.6 NETWORK EXAMPLE

Let us assume that as a CSR worker, you are asked to complete a ‘Garden
Development Project’ by a Municipality with seven project activities (Table
5.2). The network diagram is prepared for your easy understanding (Source:
Venkateswarlu and Raman, 1993).

Table 5.2: Time duration estimates of activities

S.No Activity Symbol Preceding Time (weeks)

. activity
1 Development of land A - 9
2 Ploughing and minor leveling B A 4
3 Digging of pits for planting C B 5
4 Purchasing of farm yard manure D B 3
5 Purchasing of plants E B 10
6 Application of farm yard manure F D,C 2
7 Transplanting plants G E, F 2

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The network after computation of EST and LST are given in Fig.5. 8 Networks

1
5
21

Z 0

C 5 1
4
21
2 F

D
3

0 A 9 13 23 G 25
B F
E
1 2 3 6 7
0 9 9 1 10 23 2 25
4

Fig. 5.8: Network after computation of LST

The analysis of the results of the network is given in Table 5.3 for your
understanding

Table 5.3: Analysis of the results of the network for garden development project
S. Activity Duratio Preceding Succeeding EST LST EFT LFT Critical
No. n event event (weeks) (weeks) ( weeks) (weeks) Activities
(weeks)
1 A 9 1 2 0 0 9 9 A
2 B 4 2 3 9 9 13 13 B
3 C 5 3 5 16 16 18 21 -
4 D 3 3 4 18 18 16 21 -
5 E 10 3 6 13 13 23 23 E
6 F 2 5 6 21 21 20 23 -
7 G 2 6 7 23 23 25 25 G

Critical path is the longest path for project accomplishment. In the above
example the critical path of the project is A-B-E-G ( 9+4+10+2) = 25 weeks

Uses of Networks
The important uses of networks are:
• Planning and scheduling of project activities
• Guidance, supervision of activities and organizing resources - personnel,
money, time and material.
• Monitoring and controlling of project activities.
• Communication on costs and time in a concise manner. 155
Management of • Responsibility and teamwork.
CSR Programmes
• Training, minimizing conflicts and performance appraisal.

Check Your Progress 5

Note: a) Use the spaces given below for your answers.

b) Check your answer with those given at the end of the unit.
1. What do you mean by critical path?
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
2. Write three uses of networks.
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….

5.7 LET US SUM UP

In this unit we started by looking into the meaning of Networks namely
PERT and CPM, important differences and their application in CSR project
management. We also discussed the networks terminology and rules for
preparation of networks. Later we discussed the network preparation,
analysis and uses with examples and diagrams.

5.8 KEYWORDS
Activity: Actual performance of a task.

CPM: Mathematically based algorithm for scheduling a set of project

activities.

Critical Activity: Activity that has total float equal to zero.

Critical Events: Events which fall on the critical path which will have the
same EST and LST.

Critical Path: Longest possible continuous pathway taken from the initial
event to the terminal event.

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Event: Event is a point that marks the start or completion of one or more Networks
tasks.

Float or Slack: Amount of time that a task in a project network can be

delayed without causing a delay in subsequent tasks (free float) or project
completion (total float).

Network: Network is a logical extension of bar charts incorporating

interrelationship between and among all the milestones in project.

PERT: Is a project management model designed to analyze and represent the

tasks involved in completing a project.

5.9 BIBLIOGRAPHY AND SELECTED

READINGS
Venkateswarlu, K and Raman, K.V. 1993. Project Management Techniques
for R&D in Agriculture. Sterling Publishers Pvt.Ltd., New Delhi (Network
analysis example discussed in this unit has been adopted from this book).

Srinath,L.S. 1975. PERT and CPM Principles and Applications, East-West

Press, New Delhi.

5.10 CHECK YOUR PROGRESS - POSSIBLE

ANSWERS
Check Your Progress 1

1. PERT : Programme Evaluation and Review Technique ; CPM : Critical

Path Method.
2. PERT is a project management model designed to analyze and represent
the tasks involved in completing a project. Where as CPM is a
mathematically based algorithm for scheduling a set of project activities.
Check Your Progress 2
1. EST is the earliest possible time at which the event can occur. It denotes
the earliest start time of an activity. LST is the latest time at which the
event can take place. It indicates the latest time at which an activity can
begin.
2. Critical event is the event which falls on the critical path.
3. TE = (To + 4 TM + Po) ÷ 6
Check Your Progress 3
1. Initial event should be started with 1; eliminate all activities emerging
out from event number 1 and give number 2 to the succeeding event. If
two or more events occur concurrently after the first event, give 2,3,4

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Management of and so on for succeeding events; Continue this process till the entire
CSR Programmes
network is completed.

2.

1 2 4 5

Check Your Progress 4

1. Activity slack = LST of end event – EST of starting event – Duration of

reference activity
Free float = EST of end event –EST of starting event – Duration of
reference activity
Independent float = EST of end event – LST of starting event – Duration
of reference activity
Check Your Progress 5
1. Critical path is the longest possible continuous pathway taken from the
initial event to the terminal event.
2. Networks are useful for planning, scheduling, guidance and supervision,
organizing resources, monitoring, controlling and performance appraisal.

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