Self Help Group Effectiveness Index and Empowerment Index: An Analytical Approach for Monitoring and Evaluation of SHG

Present study aims to develop an effective analytical method to assess the effectiveness of Self Help Groups (SHGs) as well as the extent of empowerment of the members in different possible dimensions. Accordingly, Self Help Group Effectiveness Index (SHGEI) and Empowerment Index (EI) were formulated and simultaneously identifying different parameters and their importance. The development of SHGEI began with item analysis in which Likert's Summated Rating Technique of Scale Construction (1932) was used to calculate t-statistics and indexing the items with respect to their weightage obtained through scale product method. Twelve items namely, capacity building, participation, membership feelings, economic independence, motivation, fund generation and management, awareness, mutual trust, group norms, conflict management, collective mobilization and marketing (availability, opportunity and problems) were included in the SHGEI. These items/parameters received different weights which was used for calculation to obtain overall group effectiveness. Four dimensions of empowerment viz. Educational, Social, Economic and Political were considered for the study. Each dimension consists of six statements/questions which can be measured through three-point scale and an empowerment index can be derived at the end to portray the level of empowerment of SHG members.