Should members of Managing Committees in Residential communities be incentivised for more accountability?

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If you are an owner-resident of an apartment in a gated community or cooperative housing society, you would know that numerous facets of infrastructure maintenance, fire safety, electricity and water control, security, finances and taxation, regulatory compliances, information systems etc  are needed to be managed. Typically, a few volunteer apartment owners step forward to be elected to a managing committee(MC) and then take collective decisions to facilitate such administration. Many of these decisions have significant implications on the well-being of the community and involve large sums of money.

But many of the elected members of the MC  may be hard-pressed for time or are inadequately informed or skilled to take on these responsibilities.  This invariably leads to sub-optimal decisions, weak delivery of services, financial loss through erroneous judgements / analysis and avoidable legal disputes. Other owners are then quick to criticise them and even suspect them of deliberate mis-management for their own personal gain.  If things do not improve, communities can easily slip into a vicious vortex of increasing distrust, suspicion and apathy till essential services are affected and safety is compromised. There are many such instances of these “failed” societies in our metros, where infrastructure in residential complexes reached such dilapidated and unsafe conditions, or where the management was so defunct, that the government was forced to intervene.

Today, thousands of apartment layouts face the problem of too few volunteers for these important but  “thankless”  responsibilities. Civic action groups such as the Bangalore Apartment Federation (BAF), have identified one major cause  - the lack of sufficient knowledge -  and have tied up with the Indian Institute of Management, Bangalore to conduct courses covering all the various facets we listed above. [i] Certainly, this initiative to educate will build greater confidence, better management and reduce errors thus pulling many communities forward towards greater harmony and well-being.  In states like Maharashtra, where most communities are run as cooperative housing societies, such education of its members is mandated under the cooperative housing framework and tasked to the cooperative housing federations.

But while education will help,  it is debatable whether it will generate sufficient interest and motivation to draw in more of the right persons to volunteer for these responsibilities. In today’s corporate, transactional culture where good performance is well rewarded, it is but natural for most persons to look for incentives.  These  could be opportunities for personal development or societal recognition of work or special privileges or salaries or bonuses. Once they experience the recognition, some people  are motivated by political intentions.  On the other hand, there is no denying that a small number of selfless people do come forward, though the extent to which they may apply themselves to these responsibilities is highly variable. Strangely, some of these  are reluctant to accept even small honorariums, fearing that they will then be treated as employees or will be held accountable or will be forced to work under more demanding situtations.

Hidden or explicit incentives?

In todays’s evolving world of  more professionalism, transparency and accountability in all matters, it is clear that  MCs are forced to work doubly hard to meet the expectations of the community. The ubiquitous  existence  of social media groups and the easy sharing of images and videos means that  their every action ( and  error)  is scrutinised, criticised and can quickly spread  discontent among the community.  Many members of the MC are therefore reluctant to share information before and and after taking decisions, fearing that their proposals will be scuttled or criticised by dissenting view points. But this tight-lipped approach against transparency can back-fire when opaquely developed, erroneous decisions come to light. Communities then start looking for accountability, but here again, are constrained by their feelings of indebtedness and gratefulness to the volunteer members and end up accepting whatever situtation they are faced with.

In many situations, community members who are grateful for volunteers may feel that they should be rewarded. But since this contrasts with the outwardly expressed pro-bono arrangement, they may instead find it easier to turn a blind eye to such volunteers obtaining hidden incentives. These could range from minor perks to more serious ( as some will suspect)  preferential treatment from contractors or personal concesssions.  The latter can start with well-intentioned overestimation of costs ( and bills) to cover unknown exigencies/aspects but later leads to loose cash which can tempt all but those of the highest integrity. Facilitating or ignoring such hidden incentives on the grounds of being trusting is never good practice and in the long term, will attract and empower persons with poor intentions and character.

So is there a path that communities can take to navigate these conflicting forces?

One way to bring in more accountability and professionalism is to hire facility management companies. With more players entering the market and focusing on residential communities, their services are becoming more affordable. Hiring them relieves the MC of a large load, especially the day to day running and technical control.  But many still fear the loss of control to these private firms who might exploit their situation if the community becomes too dependent on them.

One  way to motivate change is to offer honorariums and recognition to the volunteers. In cooperative societies and many associations, ‘sitting fees’ are instituted, presumably to increase attendance in meetings and thereby, participation. How much these honorariums will attract and motivate financially well-established persons of course is a moot point. Recognition can be in the form of thank you speeches to outgoing members in AGMs or placing their names on a ‘Thank you’ board which is kept in a frequently visited location. Community members could also  regularly express their gratitude to the members for their time and service, even if they do make a few errors.

Yet another way is to compliment and reinforce initiatives where greater transparency has been exhibited.  Once project plans are disclosed, community members can come forward to help improve them instead of resorting to criticism while continuing to kindly question decisions so that a mix of encouragement and accountability prevails.  Alerting the MC to areas needing attention is one very useful and effective way of assisting them and communicating our confidence in them.  And of course, complimenting them on specific actions which display accountability will encourage them in this direction.

Will the transition be easy?

Moving from a pro-bono system to an incentive-driven model can encounter resistance  from a deeply rooted belief in the value of selfless service and the historical success of volunteers. Many will feel that if past volunteers managed well enough without monetary rewards, introducing incentives somehow undermines that tradition. Moreover, those who have served without compensation might worry that financial rewards will eclipse the spirit of community service and devalue their past contributions.

But if the community were to see the transition as a move to build on the voluntary, selfless work of the past and to reach a higher level of professional expertise and accountability, it may create a positive sentiment which brings all members together.  Additionally, transitioning to an incentivized system does not have to mean discarding the legacy of selfless service. Historical volunteer managers can be integrated into the new system as mentors or advisers, ensuring that their wisdom and commitment continue to influence the community's ethos. In this manner, the lessons of the past can be combined with new , professional practices leading ultimately to a more harmonious and professionaly run residential community.

Do you have a different opinion? Or an angle which we have not covered above?  Or an experience you would like to share? Do let us know at Contact@cocreed.in

Notes

[i] See IIM Bangalore seeks to strengthen citizen leadership at grassroots of urban governance | IIM Bangalore