Of late, there is an observed surge in the establishment of organizations and institution aiming at filling in the widening market gap due to factors such as population explosion. Such a dramatic rise has often led to a heightened level of competition, as firms strive to outdo each other in terms of resource mobilization to guarantee their long-term sustainability. As a result, the leaders of the institution are burdened with a heavy task of overseeing the harmonization of activities regarding the day to day operations within the organization. During such undertaking, the organization leaders are faced with numerous challenges even as they strive to mobilize resources and stay atop the competition level. Therefore, this paper aims at exposing and discussing these leadership challenges that attempts to cripple the level of leadership performance as well as the overall performance of the institution to the satisfaction of the stakeholders.
Definition of Terms
Resource Mobilization
Simply put, resource mobilization entails the entire process of sourcing for a diversified support for the institutional sustainability for the foreseeable future. Such a concerted effort can involve brainstorming of the top brass of the leadership in a determination to pursue the collective organizational goals. A successful resource mobilization model features a well-set strategy incorporating the innovative ways to properly utilize the resources already in the organization's disposal and within its reach (ITCI, 2004).
Sustainability
On the other hand, the sustainability of an organization is widely viewed by modern scholars as the proper management and effective coordination of both the socio-economic and the environmental requirements and the subsequent awareness in order to guarantee responsibility, adherence to ethical procedures and consistency in the institutional success and achievements of the set goals (ITCI, 2004).
Leadership Challenges
There are a number of challenges facing organizational leaders with regards to the mobilization of resources as discussed below:
External Challenges
Institutional Reputation
Organizational reputation is critical in determining the destiny and it’s the future performance. A reputation dented by negative activities, for instance, corruption and misuse of funds has very limited chances in wooing donors, investors and other stakeholders willing to participate in the growth and development of the firm. Given its fragility, the institutional leaders are mandated to carefully guard and stabilize the image of the organization so as to ensure a smooth flow of resource mobilization initiatives. In fact, the leaders are widely viewed as the organizational symbol. Thus, they are constantly challenged to show their total commitment and control of the operations within the organization. Eventually, the level of confidence is heightened among the resource donors, government, and other stakeholders.
Time
Effective resource mobilization is lengthy and can take years for it to be successfully realized. Therefore, organizational leaders are constantly challenged to act with caution, portray a heightened level of patience, commitment, and passion towards the undertaking. Traditionally, most of the junior staff looks up to their leaders as their role models and to provide the direction. Thus, a slight show of incompetence, impatience and desperation by the leadership can easily lower the morale of the staff and other stakeholders, therefore derailing or fully jeopardizing the entire resource mobilization mission.
Shifting Donor Priorities
Donors and other sources of the revenue usually have a separate agenda in their decisions to invest in the organization. Depending on the economic and political situation, their priorities tend to shift quickly. Such fluid nature of the situation is one of the major contributing factors to the challenges that ensue in the organizational resource mobilization. It, therefore, poses a challenge to the institutional leaders to implement tactical strategies that ensure the timely flexibility in line with the changing stakeholder priorities (Sekajingo, 2007). Such efficiency--in the long run—is set to ensure constant flow in the resource mobilization, especially funding for the institutional operation.
Resource Donor Conditional Ties
Most of the institutional leaders, especially those that manage the Non-Governmental Organization are highly influential, hence the sole decision makers. On the other hand, the resource donors are well aware of this power wielded by the leaders. Having a deeper knowledge of the leaders' often insatiable need for resource mobilization, the donors tie stringent and controversial terms and conditions to the resource provision to the institution. Mostly, the conditional ties can include illegal pact easily clashing with the organizational ethical practices (Chatterjee, 2011). For instance, a donor for an NGO may decide to fund a section of the organizational activities in a return of exclusive and non-procedural tender award to a firm of its choice. Thus, the leader is faced with a challenging dilemma as to whether to breach his professionalism and moral behavior and mobilize enough resources; or to fully reject the donor unethical proposal and risk falling short of the resource mobilization target.
Political Interference
In countries where there is a lack of properly instituted body to regulate various organizational activities, business firms, and financial institutions are regularly subjected to malicious political interference. In fact, the vulnerability is at an extreme in the case of parastatals, in which the top-level management constitutes political appointees. In such an occasion, the leader is faced with a tough challenge whether to accommodate the political interference in the decision-making or to instead opt for adherence to professionalism requirement and risk being stripped of their prestigious position. Regarding resource mobilization, political interference is usually associated with poor decisions dictated to the leader, especially so when the political body lacks sufficient knowledge on the day to day operations of the firm (Thakur, 2007).
Restrictive Rules and Regulations
To most organizations, the government through its department is the main resource provider. As such, institutions that are existent in communist countries and other less democratic societies are faced with strict government rules meant to tame their operations. For instance, the Chinese communist government has, over the past years, enacted policies that mainly target the business operations of multinationals specifically originating from the West. The policies outline strict rules to be followed by the leaders of the multinational like Microsoft, Apple and Google especially regarding their resource mobilization efforts. However, many western scholars have for long argued that the rules are suppressive and are majorly consistent of the violation of business freedom and rights violations to the parties involved (Reuvid, 2005). In this regard, the organizational leaders are exposed to a tough situation that eventually hinders their obligatory efforts to maximize the resource mobilization.
On the other hand, government bodies can set up strict rules for mandatory adherence by all institutions wishing to be incorporated in the resource appropriation and allocation list. This is an intentional strategic move that have been carefully utilized by the third-world governments in a push for an implementation of a separate agenda. Although this is usually executed with a near impunity, it is interestingly notable that such a move grossly violates the market liberalization efforts, at the same time hampering the leadership plans towards resource mobilization (Pradhan, 1988).
Prejudices
Leaders from minority groups and female gender are often subjects of prejudice emanating from resource donors. Apparently, the donors end up withholding the resources on the basis of their misinformed judgment. Though there have been recent efforts made by various global labor organizations to empower both the minority and females in the workplace, little impact has been achieved (Sweetman, 2000). Still, there is a universal need to create awareness of the benefits of gender and racial equality in the workplace to ensure the minimization of the challenges that leaders face as they try to mobilize the resources including sourcing for funds from donors and other government agencies. Ironically, the capability of female leaders in organizations can be underestimated by both male and female colleagues as well; further weakening and discouraging their ability to consolidate leadership in resource mobilization.
Natural and Manmade Occurrences
Natural occurrences such as floods and earthquakes commonly believed to be caused by the human negligence of the environment pose a challenge to the leaders in their effort to supervise resource mobilization endeavors. For example, in a recent case of the earthquake in Nepal
Additionally, the natural occurrences can directly affect the organizational operations through the destruction of its facilities and infrastructure. In the worst case scenario, a significant number of the organization’s personnel and their family members can lose their lives; further complicating the situation.
Stiff Competition
Striving harder to outdo each other, organizations offering the same services allocate more resources to research, development and technology. For younger organizations, competing with the already established firms for efficiency in resource mobilization requires a highly skilled leadership with a major focus on innovation. Gradually, the organization will gain a foothold as they start earning the trust of the consumers and the stakeholders. The challenge of resource mobilization will diminish as well.
Criteria Basis
Government and other regulatory institutions classify organization according to clearly set criteria. At times, the criteria used can be controversial and prove to be a hindrance to the basic roles of the leader. The slow process of organization re-classification further weakens the leadership effectiveness in task execution, hence a major blow to the mobilization of organizational resources. Usually, poor criteria applied to the organization can cause an irreparable damage to its operations, badly damaging its reputation and the ability to attract foreign donors' aid. This is usually the case with the NGOs that focus on improving the living standards of the people in the poverty-stricken regions.
Internal Challenges
Capacity Limitation
Statutes used for the institutional set up provide limits within which the organization can execute its tasks. To a greater extent, such an establishment confines the leadership role in the achievement of the institutional vision. Also, the annual resource allocation can be inadequate in the execution of all the proposals of an ambitious leader, greatly limiting his or her capacity to deliver. The capacity limitation is largely attributable to the organizational owners' fear of the leader's possibility of establishing a wider influence, thus threatening the authority of the institutional owners. In the end, their restriction of the leadership’s resource mobilization exposes the organization to the market shocks and possibly threatening its existence.
Transparency and Accountability
For NGOs that depends on donor funding, transparency and full accountability of how they spend their resources is the key. Most donors only disburse the next allotment after a careful monitoring, thorough audit of the firm’s books of account and a unanimous satisfaction that the last resource allocation was spent for the intended purposes. To attract more donors and other resource sources, the leaders possess a challenge of ensuring that total transparency amongst the employee activities is fully realized. At times, the challenge gets extreme if the leader’s competence is hijacked by personal needs, hence compromising the resource mobilization mission. Lack of occasional vetting for the leaders lead to a risk of their entanglement in dubious and corrupt deals, thus limits their long-term performance and service delivery (Brown, 2007).
Founders’ Syndrome
Founders’ syndrome refers to the observable tendency of the institutional founders to overstep their mandate and strive to wield full control of the organizational operations, thus overshadowing the role of the professional leaders. If the role of managers and those of the founders are not clearly set and implemented, the founders exploit the loophole to extend their control and dominance in the affairs regarding the institutional operations. Eventually, the leadership role becomes symbolic, with ultimate lack of consolidation of support for the mobilization of resources.
Inadequate Strategies
Realistic means of resource mobilization should adequately be incorporated in the development of long-term strategies for achievement of the organizational goals. Inadequate accommodation of resource mobilization subsequently hinders the leadership effort to single-handedly woo investors and other well-wishers to participate in their initiatives. Basically, business leaders are tasked with a heavy responsibility of supervising the periodic development of the operational plans; hence they should ensure the proper representation and inclusion of the plans to mobilize for funds and human resource.
Inadequate Awareness of the available Opportunities
Notably, the resource mobilization opportunities are limitless to a well informed organization. With globalization, institutions have a limitless opportunity to mobilize the resources from far and wide. Essentially, utilization of the advances in the technology ensures this realization at a fraction of the overall cost. However, for most organizations, it is observable that an embrace of such awareness creation opportunities is still at an initial stage. In fact, some organizations are yet to adapt or fully integrate the technology in the organization system (Brookes , 2010). For such institutions, the leaders have a challenge boosting the efforts of awareness creation for the organization to gain a competitive edge in service delivery as well as resource mobilization.
Communication Breakdown
Communication between the managerial level and the departmental heads is vital to ensure close monitoring of the progress of organizational activities. Poor communication structure between the leadership and the departmental heads significantly dents the successful implementation of the leadership decisions with regards to resource mobilization. The breakdown renders it harder to successfully track the progress and the perceived shifts in focus in fund sourcing.
Poor Branding
In itself, proper branding requires large organizational resource spending. But the benefits reaped due to its success far outweigh the resource spending effort. Contrasting sharply, inadequate organizational branding is largely attributed to the imminent resource mobilization challenges faced by the institutional leaders. It should be noted that an effective branding projects the bold image of the organization and its engagements to the outside world and attracting the investors.
Internal Power Wrangles
In most organizations, power wrangles by junior employees are rampant. Though it boosts the competition and performance amongst the employees, extreme power wrangles can threaten the operations of the firm. Thus, the leaders usually spend time and energy to quell such quarrels instead of focusing on ways with which to further boost resource accumulation for the benefit of the organization (Sinding, 2012). At times, the dissatisfied and greedy employees can pose a direct challenge to the leadership authority, hence destabilizing the smooth flow of operations within the firm, including resource mobilization.
Conclusion
From the above discussion, it is imperative that leaders are faced with numerous challenges regarding the resource mobilization process. However, clearly set regulations, well-laid strategies and minimal political interference in organization activities have positive effects towards the realization of the organization's mission. It is a necessity, therefore, for the business leaders to strengthen the relationship and cooperation amongst the employees and other stakeholders so as to avert the possible obstacles. Provision of early intervention to the initial signs of wrangles in the organization goes a long way in containing the situation, thus focus maintenance on the main organization goal.
References
Brown, S., & Institute for Justice and Reconciliation (South Africa Cape Town
Chatterjee, D. K. (2011). Encyclopedia of Global Justice: Vol. 1. Dordrecht
Infrastructure & Technology Consultants India , Private Limited. (ITCI), & N.I.U.A. (Organization : India New Delhi
Pradhan, U., Water Management Synthesis Project., & Consortium for International Development. (1988). Local Resource Mobilization and Government Intervention in Hill Irrigation Systems in Nepal Ithaca , NY : Cornell University
Reuvid, J., & Li, Y. (2005). Doing business with China. London
Sekajingo, L. M.
Sinding. K. (2012). Cases on Management, Leadership and Organisations. (n.d.). Samfundslitteratur.
Sweetman, C., & Oxfam!103569669!. (2000). Women and leadership. Oxford
Thakur, B. (2007). Perspectives in Resource Management in Developing Countries: Volume 2, Population, Resources and Development. New Delhi Co.
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