An analysis of the relationship between the credit union board and the manager – The managers perspective

This paper examines the understanding the salaried managers have of the role of their board of directors; of their own role as managers and of the tentative impact of such understanding on the relationship between the two. The study focuses on Irish credit union managers in terms of their perception of these roles and how their perception impacts on the relationship between the manager and the board. With relatively little research in this area of voluntary organisations, the findings may impact on the approach to management in the sector. Credit Unions are a unique financial institution being mutual societies that exist to attain the economic and social goals of the membership. Credit Unions part of the ‘Not-for-Profit’ sector which includes charities, trade unions and public sector bodies. They are run by voluntary boards and thus present an ideal model for examination in relation to developing best practice of management for the voluntary sector. The results of this work show that there is no one identifiable model of management being applied in credit unions. A partnership approach has been adopted in the main, by the credit union board of directors of the credit unions and their managers. There are areas such as strategy, monitoring, communications and governance where the managers provide support to the board in accomplishing their functions. A need for board and the credit union movement in general, to support and recognise the value of managers is identified. The recognition that Irish credit unions are becoming more professional and that they have evolved into organisations that has greater need for formal governance is emphasised. Implicit in this is the need to recognise the value in understanding the necessity for a united approach by the governors of credit unions and those that work professionally in leading the provision of the day-to-day delivery of the organisations strategy and vision.