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

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

CHAPTER SIX

PERSONNEL MANAGEMENT IN CO-OPERATIVE

Chapter’s Objective:

On completion of the reading of this chapter, the student would be able to:

(i)                Know how the co-operative manages its labor force.

(ii)              Identify the conditions of service for co-operative employees.

(iii)            Appreciate the welfare services available to the co-operative staff.

Functions of Personnel Management in Co-operative

Personnel management describes the function of management concerned with human factor. The personnel department is a division within the management structure where men and women are employed to assist in carrying out various policies of an organization on matters affecting its employees.

 

Personnel management includes the mode of recruiting, selecting and training staff. It also involves the placing of workers on the rights jobs, and determining how they are to be paid. Their condition of service, how workers are to consult their employers and how disputes are to be settled when they arise.

 

A peculiarity of co-operative employment is that the solitary official of a small co-operative society whether on full or part-time, will have to work with a minimum of supervision. This does not withstand the fact that the salary that may be offered would only attract a man of modest qualification. Hence, the need for careful selections and training of candidates.

A co-operative that is poised to grow, must engage the service of a full time staff. The problem here is that the small society may not be able to generate sufficient gross surplus to cover the cost of a full time staff. As a way of generating enough surpluses to pay professional staff, small co-operatives come together as a body to do business.

Staff Recruitment

A co-operative whose mode of activity requires a good deal of manual labor as is the case in grading good deal packaging, the employment of a large staff becomes inevitable. Where there is a co-operative union or federation or government department overseeing co-operative, there is the possibility of getting advice on the choice of staff. In a situation where an appointment requires technical qualification, it becomes a matter of necessity to engage the service of the individual with the relevant qualifications from a recognized institution. Though, this does not guarantee the desired level of efficiency. It however guarantees a certain level of intelligence. In order to promote the well being of the cooperative staff and the co-operative he/she serves, there is the need to place him/her in a job that suits his/her natural aptitude.

Co-operative Staff Training

Training is the systematic development of the attitude, knowledge and skill behavior pattern required by an individual in order to adequately perform a given job. In other words, training prepares the employee for work and assist in enhancing his worth to his employer and to himself.

Going by the above definition of training, all newly employed workers in the co-operative are subjected to a form of training. In well organized co-operative, the newly employed workers are made to attend a one day oriented course where by the general work and aims of the organization and explained to them. Classes may even be organized for them in the area of co-operation and technical skills like book keeping. As a condition for a definite appointment and for future promotion, a course in co-operative is a must. In order to enhance the desired cooperation and efficiency in the co-operative, a short intensive training is organized for every worker. This training could be in the form of on-the-job or weekend school.

As a way of furthering the training of co-operative Staff, Co-operative training schools and colleges exist where courses on the principles of co-operative, co-operative law, banking, book keeping, and auditing are taught.

Staff Promotion in Co-operative

The conditions for promotion in the co-operative are, successful completion of a training course, and the behavior of employee in the organization. It is however not every position like a promoted clerk can occupy. By way of example, a promoted clerk cannot occupy technical position like that of engineering, analysts or designer. However, employees of the co-operative could aspire to highly responsible non-technical position through promotion.

 

A management trained system could be adopted in the co-operative. In this method, both the well educated young men and women employed from outside and those already in the employment of the Co-operative outstanding promising qualities are made to undergo the same management trainee programs. 

 

The reason behind this to allow parity between the well educated graduates employed from outside and those who have been serving in the co-operative but never had the opportunity for similar training and promotion. This is to prevent the co-operative committee from employing graduates which could deprive the co-operative better qualified and trained minds.

Conditions of Service in Co-operative

The condition of service for co-operative workers is a function of many factors. Where co-operative work is being carried out in the town or village, there is being bound to be variations in their conditions of service. The standard of co-operative growth in the country, also influence the conditions of service for its workers.

In the co-operative where there are legal provisions guiding neatness of the working environment, the number of working hours, the protection of workers who are expose to noxious and dangerous substance, and the protection of machinery, such provisions should be effected to the letter. This may create huge expenses on some cooperatives that may not be large in size. For example, a consumer co-operative that employs paid shop assistants work regularly and for few hours, having to compete with family shops that operate for long hours both night and day, may not be able to implement all the legal provisions guiding the conditions of service of co-operative staff.

Co-operative Staff Welfare

Some co-operatives operate provident funds and voluntary schemes as insurance for old age on retirement from active service. Other welfare schemes include accident and sickness benefits. Many co-operatives provide pensions for their workers in spite of the fact that state governments make provisions for the retirement of its workers. The reason for this is that state pension is usually very small to adequately sustain retirees. Who may no longer be engaged on active service? On the other hand, the prospect of a pension minimizes labor turnover. This encourages workers to remain on the job to retirement age instead of changing jobs frequently which does not augur well for the development and efficiency of the co-operative.

Salaries Wages in Co-operative

It is the practice of co-operative to pay attractive wages to all manual and lower grade staff.  It would be emphasized here that a fairly high salary encourages the workers to be honest and loyal to the interests of the cooperative.  Commission is paid to co-operative sales staff which in some instances is over and above their salaries.

 

There is also the practice where by bonuses are paid to workers out of the annual surplus of the co-operative. This gesture goes a long way in motivating the co-operative worker to be more dedicated ensures the continuous success of the co-operative.

 

It is however sad to note that many committee made up of small farmers resist the payment of attractive salaries to higher officers who undertake the management of the co-operative. This the committee does without giving due consideration to the wealth of knowledge and experience the co-operative manager puts into the business to ensure its success. Where this is the practice, the co-operative is not able to attract good experienced staff especially at its early stages of development.

Incentives in Co-operatives

Apart from money, there are many other incentives that could encourage the worker to put in his/her best in the performance of work. Praise of the worker for a job well done, is one of the potent ways of encouraging the worker to be more dedicated. It gives him/her some intrinsic satisfaction. The recognition given to a worker gives him the confidence he so much desired to do better. The more a worker enjoys his job, the more he does it.  A worker should as much as possible be given a job he can start and complete. This job enrichment goes a long way in giving satisfaction to the worker.

 

The co-operative provides a conducive atmosphere for work. This is because the job involved, does not create room for class distinction and has no motive for exploiting anybody.

SELF EVALUATION QUESTIONS

1.     What do you understand by personnel management in co-operative?

2.     Of what significance is the co-operative welfare scheme to its workers?