ESSENTIALS OF CO-OPERATIVE SOCIETIES BY OSOBA- ENAKALI C. O (CHAPTER FIVE)

ESSENTIALS OF CO-OPERATIVE SOCIETIES BY OSOBA-ENAKALI. C. O

CHAPTER FIVE

MANAGING THE CO-OPERATIVES

Chapter’s Objective:

After reading through this chapter the student would be able to:

1.     Know how the co-operative manager executes his functions through line and staff officer.

2.     Appreciate the attributes of the Co-operative Manager.

3.     Know how the Co-operative Manager promotes efficient job performance through control.

Setting the Co-operative Objective

Management is the process of getting things done through people. It could also be seen as the art of directing the activities of a group of people towards a predetermined objective.

The objective of an organization determines what the manager should do, what he should expect from the workers, and how the success of any organization would be evaluated.

Management of any organization starts with the objective to be pursued. In co-operatives, the committee sets its objectives, which is written into its rules, for example, the objective of the co-operative could be to market the farm produce of its members. When cooperatives set objectives they seek expert advice from technical experts employed by the government or by a National Co-operative Federation. Before any decision is taken by the co-operative, it turns to its manager who in turn considers many issues. Among the issues to be considered are: the sources of capital to be used and its cost by way of the interest to be paid on it, the quality of the farm produce, members may be willing to market, the cost of building adequate premises and the purchase of the necessary machinery, the number of workers to be employed and their wages, the length of period of their engagement, and the availability of workers with the necessary skills.

After the manager has assessed the above issues, he then explains to the committee whether the objective of the co-operative will be feasible or not based on its expected resources; where the objective of the co-operative is feasible and an event beyond its control occurs in the course of its operation, adjustments are made. For example, the farm produce may fall below or above expectations in which case adjustments are made to reflect the prevailing situation.

The Co-operative Manager and His Plan of Operation

In the Co-operative, as soon as its objective has been set, based on expert advice, the manager then seeks written memoranda from his subordinates. These include the Sales Manager, the marketing Manager, the Accountant and Engineer where necessary.  Based on their proposals, the manager is able to come out with a balanced plan of action. The plan of action is then divided into sub units of operation. At this juncture, the manager examines every operation to find out whether it is important or not. The unimportant activities are eliminated and those that could be merged. When the manager is convinced that all the important plans of operation have been put in place he then decides the requirements of each operation. This includes staff, the required space money, requirement, light, water and electricity. The manager at this point, ensures that qualified workers in term of skills, experience and stamina are engaged in the execution of the operations of the Co-operatives. He then considers what wages or salaries would be paid to employees of the co-operative who should be made to lead and supervise each activity to ensure effective operation, how many hours the workers are to do their jobs and the duration of the job.

Still planning ahead, the manager ensures that the mill of the co-operative is in good working condition, the warehouse for the storage of the produce is well prepared ahead of harvest period.

The Line Structure of Co-operative

For the manager to be able to successfully execute his plans of operation there must be a carefully planned out structure of the co-operation.

Through co-operatives are organized differently, the most rewarded pattern is to appoint a single general manager. To whom all other subordinates are answerable, while the General Manager on his part is responsible to the co-operative committee.

In a single –purpose co-operative, the staff, and the job to be done shared among departments. A head is assigned to each department. This enables the General Manager of the co-operative in turn, delegates functions to each departments. This enables the General Manager to have enough time to deliberate on the policy and more pressing issues of the co-operative.

The departmental manager also decides on what functions he is to delegate to the workshop manager who in turn decides on what to delegate to the foreman. Though the order of appointment may depend on the type of co-operative, the principle of a chain of authority is similar to all. The structure of organization of the cooperative should be such that allows for expansion as it grows and develops over the years.

In the co-operatives, before the schedules of work are drawn up, senior members of staff and the various experts of the co-operative are first consulted. As soon as the plan is adopted, it is explained to them in detail and requested to indicate how best it could be implemented. The part of the work that concerns each department is explained to the subordinate staff. The subordinates are allowed to make suggestions within their areas of individual specialization. The essence of this is to ensure proper implementation of the co-operative plans to minimized wastage of time and resources. It enhances effective management and productivity as every department and its workers know exactly what is expected of them in terms of performance.

In this line organization structure of the co-operative, authority flows from the top executes down to the lowest subordinates. Authority which is greatest at the top, diminishes at each successive level, down the hierarchy of the organization. Responsibility the hand, increase as one ascends the hierarchy.

The line structure allows decision making at various levels of the organization hierarchy. It allows definite designation of authority and responsibility. Each worker is responsible to only one boss. The line structure allows decision making at various levels or the organization hierarchy. It allows definite designation of authority and responsibility. Each worker is responsible to one boss.

Line and Staff Organization Structure in Co-operative

In large co-operatives, apart from the managers who ensure the execution of the policy of the organization, are staff officer. These staff officers are specialist in their various fields. Their function is to advise the line manager in the performance of their duties especially taking decisions on technical matters which may not be familiar to them. They do this: on advisory capacity. By this, it means though they may advise the line manager, they cannot enforce their compliance to the advice.

In order to avoid clash of functions between the line manager and the staff, a job specification which spells out the specific functions of officers, are usually prepared and handed over to officer on appointment. Apart from avoiding clash of function, the job specification enables the co-operative to ensure that no function is left out unattended to.

The holders of staff positions include the Personnel Manager whose function cuts across all the departments of the organization in the area of workers welfare, recruitment, promotion and discipline. Another is the Sales Manager who ensures adequate implementation of sales policy of the co-operative. Yet another is the Agricultural Adviser who advises members who are Farmers on the best methods of improving their yields.

The line and staff organization plan is found in large organization such as large co-operatives and similar organization.

 

Promoting Performance through Control

In order to ensure proper performance of functions in the co-operative, calls for the need to regularly measure actual performance with the set standard of performance in the organization. This activity, which is usually at regular intervals, is often in the form of figures. These figures of performance are not together in a chart form. This enables the manager to evaluate them together in a chart form. This enables the manager to evaluate the progress or otherwise of the co-operative at a glance after adequate comparison has been made with the expected plans of the co-operative. This enables the manager to make appropriate decisions that will enhance the progress of the co-operative.

At this point, it is important to say that in the co-operative, there are some activities which though do not contribute directly to the objective clause of rendering services to members, are none the less essential to the smooth operation of the co-operative. For example, the co-operative buildings need to be repaired when occasion demands, wages, tax and rates must be paid as well as overhauling the vehicles to allow effective performance.

Attributes of the Co-operative Manager

There is the need for the co-operative manager to have good relations with the public. He should possess the ability of judging other people’s attitude and ways of reasoning. He should be able to foresee the outcome of proposals, which are intended to serve the interest of people other than those who are members of the co-operative.

In this regard, a good co-operative Manager should have necessary technical know-how of the business he executes. He should have the ability to realistically plan the work of the organization to ensure its steady development and growth. He should be able to inspire his subordinates to imbibe the qualities of harmony with the co-operative committee to achieve it desired objective.

SELF EVALUATION QUESTIONS

1.     What is co-operative objective and what role does it play in the management of co-operative as an organized body?

2.     Of what significance are staff officers in the management of co-operative society?

3.     What are the qualities of a Co-operative Manager?