Challenges in managing an orphanage: A perspective of orphanage operator in the state of Pahang

Abstract

Purpose: Managing an orphanage is a challenging task. Orphanage management must exercise good practices either financially or in terms of management in order to avoid unethical doing, hence being trustworthy in delivering their responsibilities. When the public put their trust towards the management, there should be an increased intention in donation by potential donors. This study is to determine the challenges in managing orphanages. Design/methodology/approach: The methodology for this study is based on qualitative and descriptive analysis, and was conducted through focus group discussion with 10 orphanage operators in Pahang Findings: Results revealed 2 challenges; financial practices and management practices faced by orphanage operators in Malaysia. In the financial practices, this study found 2 issues; ownership of asset and financial control. As for financial practices, this study found 2 issues; documentation control and staff competency. Research limitations/implications: This study may extend to the development of the survey on the 2 challenges as stated before and hypotheses testing study. This study may also extend to the other NPOs besides the orphanage. Practical implications: This study will help to increase the awareness among orphanage operators regarding the importance of having good financial and management practices. This study may benefited to the government, as the government may monitor the activities and financial condition of the orphanage organisation to sustain in the future while the accounting regulatory bodies develop guidelines related to the submission of financial statement that should be exercised by the orphanage to exercise good financial practices. Originality/value: This study was expected to give better understanding to the donors regarding the movement of cash in the organisation and to help increase awareness among orphanage operators in regards to the importance of exercising good financial and management practices.