November 13, 2012

Managing Human Service Organizations

A set of informed and competent management responses to environmental (internal and external) demands that continuously improve an agency’s capacity to serve its customers.

Patti, R.J., (2009). The Handbook of Human Services Management

Human Services Management defined….

Patti (1977)◦ Empirical study

90 managers Method: Participants were asked to prioritize 13 activities

according to time devoted to each in a typical work week Cashman (1978)

◦ Conducted a study that found that human services managers spent the greater part of their time administering, communicating, planning, and implementing

Files (1981)◦ Identified and prioritized 14 management task according to

the proportion of time devoted by each of 50 human services managers

What HSO Managers Do? (Historical Perspective)

Secure and manage resources that are consumed by services and activities that penetrate outputs and achieves outcomes

What do HSO Managers do?

HSO Management Theories

Leadership Analytic Interactional

Boundary Spanning Policy Practice Facilitating

Futuring Managing Resources Communicating

Aligning Leveraging Resources Supervision

Teaming Advocating

Organizing

Triangle of Practice Model

Integration of 2 previous models: Triangle of Practice Model + Core Competencies Model

Communicator- Impact of Technology (voicemail, email, Skype, Fax, telecommute)

Boundary Spanner- cluster of activities

Futurist- Forecast Trends; “Read the Environment”

Organizer- Aligning and Staffing

Resource Administrator-Cost accounting, pricing, operations budgeting, financial reports◦ Managing and Levering Resources

Evaluator- Needs Assessments (new trend)

Core Competencies Model

Policy Practitioner- Read and INTERPRET federal, state, and local policies

Advocate- 1939 Hatch Act; Policy Advocacy v. Case Advocacy

Teaming- Boss v. Coach; Stages of Development (Forming, Storming, Norming, etc.)

Supervisor- Pay attention to the small things (lunch, parking, breaks); Legal

Facilitator- “Instrument of Change”

Evaluator- Is it working? Does it align with the mission statement? Goals?

Core Competencies Model

HSO Financial Management

Organizational Type

Primary Funding Source

Public •Government (legislative) allocations•Occasional private funds for special purposes (such as Fannie Mae support for computerization)

Non-profit •Direct contributions (bequests, donations)•Fees for services•Government grants and contracts•Foundations•Campaigns (e.g. United Way, Combined Federal Campaign)•Medicaid/Medicare

For-Profit •Fees for services•Government grants and contracts•Medicaid/Medicare

Sources of Funding by Type of Organization – Patti, p.90

• Incremental budgeting

• Zero-based budgeting

• Planning Programming Budgeting System

• Line Item Budget

• Functional Budget

• Performance Budget

Types of Budgets

At any given time, administrators are concerned with 3 different fiscal years:◦ Prior, Current, and Next.

Standard fiscal years are typically:◦ October to September (federal)◦ July to June (state)◦ January to December (calendar)

Fiscal Responsibilities of Human Services Administrator

• While administrators do not necessarily do all budgeting personally, they must oversee the following:

– Hire and supervise appropriate personnel

– Be able to talk the language and communicate with fiscal staff

– Be able to select and work with external auditors

Fiscal Responsibilities of Human Services Administrator

• While administrators do not necessarily do all budgeting personally, they must oversee the following:

– Associate fiscal issues with program matters and client concerns

– Translate fiscal reports to appropriate auditors

– Insure quality control of financial systems

– Ask the right questions at the right times

Fiscal Responsibilities of Human Services Administrator

• Of the 12 core practice competencies mentioned as part of the Core Competencies Model for Management in Human Services 2 relate to finance: leveraging resources & managing resources

• Diversified Funding Sources

Best Practices in Managing HSO Finances : General Guidelines

• Be aware of recent federal legislation

• Follow IRS requirements

• Board members actively involved in all stages of the budget cycle

• Yearly Audit

• Internal Controls

Best Practices in Managing HSO Finances : General Guidelines

•Measures that might prevent embezzlement:Thorough background checks of staff

Policies against nepotism

Personnel policies that require the reporting of suspected fraudulent or unethical activity

Protection of whistleblowers

REQUIRING 2 SIGNATURES ON CHECKS—Health- Reach

Regular backup of computers

Very strict policies on the use of agency credit cards—UNC-CH DEVELOPMENT OFFICE

Internal Controls

Planning and Development Stage

Implementation

Budget Assessment

Cost Analysis

Best Practices in Managing HSO Finances : The Budget Cycle

HSO’s in the 21st Century

Business Administration

LeadershipFunctional Communication

HSO Management in 2012Integrated Management Style

Business Administration

Functional Communication

Leadership

Knowledgeable of Laws

Understanding of People

Critical Thinking

Cost Accounting Negotiating/ Motivation

Flexibility/Adaptability

Financial Reporting Share Info=give advice

Problem Solving

Budgeting/Pricing Emotional Intelligence Decision Making

Needs Assessments Boss v. Coaching Detail-Oriented

Forecast Trends Emphasize Human Element

Delegation

Performance Management

Knowledge v. Skills Advocacy (Organizational)

Being a Manager/Leader in 2012

The U.S. economy is increasingly mixed ◦ Services occur through the participation of public,

nonprofit, and for-profit organizations

Increased competition between nonprofit and for-profit organizations

Economic downturn

Embezzlement

Staff Diversity & Cultural Competence

What are the major Financial Challenges facing 21st century HSOs?