Challenges in Organizational Management: A Case Study of Oxfam Australia

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Organisational Learning and Change
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Introduction
Oxfam Australia stands as one of Australia’s most renowned non-governmental
organizations. The fully accredited organization is a branch of Oxfam International
Confederation whose main purpose is to eradicate poverty in the world. In addition to tackling
poverty, the organization also attempts to curb the global climatic changes, food shortages,
inequalities, worker rights and emergencies such as earthquakes and tsunamis. Since its
conception in 1995 by a section of independent non-governmental organizations, Oxfam
International has impacted many people worldwide ‘Oxfam’ is an abbreviation derived from
Oxford Committee for Famine Relief. The organization was found in Great Britain in 1942.
Apart from receiving donations and distributing them to the needy, Oxfam is also involved in
business activities which entail the production and selling of home decors, toys, books, food,
drinks, musical instruments, and kitchen appliances. The money raised in these business
practices is amassed and used to serve the organization’s primary objectives. Oxfam Australia’s
headquarters are located in 130-138 Leicester St, Carlton VIC 3053, Australia.
Enjoying the benefits of one of the biggest non-governmental organizations in Australia,
Oxfam cannot evade the challenges that come with the increasing size. As a large non-
governmental organization, Oxfam Australia requires efficient management strategies. The
organization’s policies should be sound, comprehensive and effective so as to realize the
company’s goals and objectives. Organizational and financial management practices should be at
their best so as not to shun discourage Oxfam’s major supporters who range from donors,
activists, corporate partners, groups, state committees, and members. Oxfam Australia consists of
many other affiliate branches in other towns in Australia. In recent times, however, the
organization has been undergoing a series of challenges that need to be addressed as soon as

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possible. This essay attempts to scrutinize and analyze the challenges experienced in the
management of the non- governmental organization. Relevant organizational change theories and
strategies are also adequately discussed.
Internal and External Analysis of the Organization
According to the organization’s financial report for the financial year 2017/2018, Oxfam
operated at a net deficit of 2,987,000 dollars. This was due to the organizations’ failure trim
down their expenses. In 2017/2018 year, Oxfam’s expenditure was 100,763,000 dollars. Does
the burgeoning expenditure raise questions such as what are the expenses incurred by the
organization? What percentage goes to charity? According to the financial report, only 67.3% of
the organization’s funds are allocated to the programs initiated by Oxfam (Fernandez and
Rainey, 2017, n.d.). The report also recorded that 23.1% of the funds go to fundraising, media
and marketing purposes. The remaining 10.6% is allocated as an administration cost.
Since the original goal of the organization is poverty eradication, it is expected that a
larger percentage should be directed to charity. It is expected, for instance, that the organization
spends about 80% of its income on charity programs. Ten percent of 100,763,000 dollars
translates to an approximate of 10,763,000 dollars is spent on administration costs. This
instigates the question of how many employees are under Oxfam Australia. According to their
website (Oxfam.org), there are about 670 employees under the organization. In 2014, Oxfam
paid an approximate £700,000 on pay and benefits for the top seven organization officials. We
can thus accurately conjecture that the board and the executives eventually bag home a lot of
money, which leads to an ever-increasing expenses account to the non-governmental
organization (Fernadez and Rainey, 2017, pp. 9). The financial report reveals that among the

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eighteen non-executive directors and executives, the staff received an annual remuneration of
1,075,000 dollars in 2018. This was an increment from 2017’s, 1,042,000 dollars. The data
means that about 10% of the administrative costs are incurred on the salary payments of the 18
non-executive and executive directors. Therefore, there needs to be an adjustment of the salary
and remuneration policies in the organization.
Observance of ethical values and beliefs by the staff is a fundamental requirement for any
organization. Ethics and morality shape not only the beliefs but also the perceptions by the
societal members. Unconventional practices by employees and staffs paint a distorted image of
the organization (Langham, 2018, n.d.). Unethical superior board members are a tragedy to an
organization. According to an article ABC News, Barbara Miller narrates of an ensuing scandal
that resulted due to unscrupulous and unethical behaviors portrayed by some of Oxfam’s top
staffs. Langman, 2018 captures an ABC News article first posted on 14th February 2018, a
section of senior members of Oxfam had paid local women in Haiti in return for sex. These
senior Oxfam employees are reported to have paid the Haiti woman at the aftermath of the Haiti
earthquake in 2010.
Not only do the results of such hideous acts pose danger to the image of the company but
also causes substantial losses to the organization. For instance, soon after the breakout of the
Haiti transgression news, Oxfam Australia’s chief, Helen Szoke, asserts that the scandal had
already negatively impacted the organization’s donations (ABC News). The British Government
had reduced its donation to Oxfam Australia by 50 million dollars (ABC News). After the news,
Minnie Driver, Oxfam’s celebrity ambassador, resigned from her role (ABC News). To prevent
such consequences, Oxfam Australia, as an organization, is required to ensure the moral
standpoints of its many employees are thoroughly checked before joining the organization.