essentials of co-operatie societies by osoba enakali. c. o. (chapter three)

CHAPTER THREE

THE CO-OPERATIVE OFFICE AND SOME ESSENTIAL FUNCTIONS

 

 

Chapter’s Objective

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

(i)                Identify the activities of the co-operative office.

(ii)              Comprehend how money is handled in the co-operative.

(iii)            Appreciate how co-operative creates its awareness through education.

The Co-operative Office

 

The office is a place where clerical activities take place in an organization. The co-operative office is the store house for all information about the activities of the co-operative. It is where all the documents recording quantities and qualities, instructions, administrative action, receipts and payments are kept. In an effectively managed co-operative office, information such as the previous level of stocks and their price, the member that could be trusted with a loan, which employees  are due for promotion, which of them are to undergo  training and those to be disciplined are easily known.

 

It would be observed from the above activities that the co-operative office carries out several functions with employees at various levels of intelligence and responsibility. Hence in designing an office consideration is given to the number of responsible functions that are required for proper management of the co-operative. This is then followed by a classification of the jobs into those that are mechanical in nature, repetitive and manual. It is then determined, the number of hours to work in a day and the desired condition that would allow effective and efficient operation. 

 

This gives a rough estimate of the strength of office staff that would be required in various grades such as secretaries, cashiers, typist, senior clerks and junior clerks. This is to ensure that the business of the Co-operative in its entirety moves smoothly and progressively. Most co-operative work is seasonal in nature. In order to be able to effectively complete the work just after harvest or just before audit the work that are not tied to a rigid time schedule, should be carefully spread to avoid slack periods. On appointment of the right strength of staff with the right skills, it becomes necessary to decide who is to do what and how the work is to be split up in such a way as to how smooth and accurate operation. Whichever way, the division of responsibility must be clear bearing in mind the details of how work is divided depends on the nature of the business and to some extent, on the available staff.

 

In a large co-operative, a group of workers under a sectional head may be assigned to one operation like dealing with orders such as recording the level of stocks. In a small co-operative however a senior clerk may be assigned to two or more operations. Other individuals could be assigned to serve the entire office e.g. the handling of all incoming mail, opening, sorting and passing it to the appropriate sections or departments. This is done in the early hours of the day to avoid waste of time. The same individual or section could also be detailed to treat the outgoing mail by ensuring that letters and its enclosures are put into envelopes properly stamped and dispatched. This class of workers should be well trained to complete their jobs before the close of office hours. On internal communication, effective messenger service is inevitable to ensure fast movement of papers to where they are needed and removed accordingly without any waste of time.

 

A very important activity which serves the whole organization is the filing of papers. This function should be entrusted in the hands of a competent officer because the filing system is the means by which the memory of the co-operative work.   It must be designed in such a way that every document of value is well preserved and easy to retrieve when needed. This function calls for accuracy in operation and the use of adequate filing equipment like filing cases and cabinets. In issuing out files, a lot of caution should be exercised to monitor its movement and to ensure its safe return.

Ensuring Proper Handling of Money

 

In recognition of the pivotal role of money in any business and the temptation that goes with it, any employee receiving money in the form of cash for goods sold or cheque from a whole sale firm must ensure it is promptly recorded. The same applies to any money also going out of the organization. In shops, cash registers are used to record money received and change given. Receipts and payments made through an office are recorded in books. All money received should be banked as soon as possible preferably on the day it was received. In the rural areas where there may be no banking facilities, a safe must be used and the kept in the custody of the manager.

 

In order to avoid confusion and losses from the use of banked money in paying wages, giving change or for any other purpose, all money received, must be paid into the bank before cheques are drawn on them.

 

Proper book keeping principles should be obeyed to make it possible for the co-operative account to be checked both internally and against statements from the bank. This checking should be carried out daily in the case of large co-operatives that have no frequent access to the bank. Its account could be checked on weekly or monthly.

As a way of preventing fraud in the co-operatives the following safe guards should be adhere to:

 

(i)                Issues concerning money should be handled by at least two clerks working together. Where letters containing cheques are opened, they note the contents accordingly.

(ii)               The Chairman and the manager or the manager and cashier as the case may be, should be the signatories to cheques of the co-operative.

 

The same thing applies to account books, which could be falsified to the advantage of the accountant.

 

Though these are anti-fraud devices, it also protects the staff against unnecessary suspicion. By way of example, if a letter purported to have contained a cheque arrives the co-operative and was later found not to contain any cheque, it is easier and safer to have two witnesses than one.

Creating Co-operative Awareness

 

There is the need for regular information from co-operative leaders to the public, which constitutes its clients. This is to provide the much needed awareness among members of the public.

 

Most co-operators are inexperienced in business and economically illiterate. Without special education, they may be presumed to be ignorant of so many things ranging from co-operative theory and practice, to management techniques, production practices and a wide range of technical matters, book keeping, warehousing, law etc. some are even ignorant of the principles of economics or the nature of business enterprise.

 

In a co-operative, management is not restricted to directors and paid managers alone rather, members also have a role to play in it more so that the ownership, control, and patronages are vested on the  same people. This makes education imperative to enable them execute these distinctive characteristics. The co-operative would only be adequately financed when members know what they stand to benefit from it and how.

 

As controllers, they have to take policy decisions and supervise the enterprise whose risk they bear. To enable them exercise their control functions, there is the need for proper knowledge of economics, accounting, budgeting, finance, commercial law etc. with adequate knowledge, they would be able to assess the performance of their society. Ignorance has created a lot of problems in the development of the co-operative. For example, it is ignorance that keeps the co-operative from spreading because many people do not know it potentials. It is also out of ignorance that people instead of patronizing the co-operative shops and banks go for capitalist shops and banks. It is the same ignorance that contributes to the low capacity of co-operative in Nigeria and other developing countries of the world. Members of co-operatives exercise apathy towards the affairs of their own society. The only panacea to the above problems is a comprehensive and sustainable co-operative education. It is in appreciation of this that every new employee is expected to attend a one day orientation course where the general work and aims of the organization are made known to him or her. Many co-operatives in countries with widely differing conditions arrange for young employees to attend classes both in cooperation and in technical skills such, as book keeping. Some insist that every employee who has not already taken a course in co-operative training should take one on joining the staff as well as for future promotion. Some cooperatives use correspondence course offered by either co-operation or general professional organizations. In some cases, a short intensive course or training is organized for the working team as a whole either while they are on the job or at a one-day or weekend schools.

 

In some countries are co-operative colleges and training schools for the training of officers of co-operative staff of primary and secondary co-operatives. The basic courses taught include principles of co-operative, cooperative law, banking, book-keeping, and auditing. In some countries the courses are extended to cover marketing, merchandising and business Administration.

 

To buttress, the high esteem in which co-operative education is being held, Bonuor holds the view that cooperative education produces the most important products of co-operative movement. In Munknor’s view, he suggests that in developing countries, a minimum standard of member education should be required prior to registration of every co-operative society. For instance it could be provided under the regulations that new societies could only be registered where all founder members prove to have participated in a basic pre-membership education course.

Beneficiaries of Co-operative Education

 

The beneficiaries of co-operative education could be categorized into three groups and these are:

(i)                Member Education:

a.     Pre-members

b.     Members

c.      Leaders, Committee members, director, and officers.

(ii)             Staff Training:

a.     Employees Manager

(iii)           Public Relation:

a.     Public Policy makers, legislators and government executives.

b.     Community leaders, farmers, teachers, clergy, mass media, potential community leaders in schools, colleges and Universities.

c.      Potential members: farmers, Workers, youths and women’s clubs.

 

Co-operative education is designed according to the needs of each of the itemized group above. It could be more or less intensive, formal, technical, or may take the form of general information about co-operative to the point where it becomes co-operative propaganda. In the case of members, co-operative information is more exhaustive than to the general public. This is because they would be told about problems like the risks and challenges though it would not get to the point of being academic or technical.

 

Pre-member education is for those who are about to organize or join co-operative. They are expected to hold series of discussions to identify their common problems and know their rights and responsibilities in a Co-operative and conclude by drawing up or accepting a set of by-laws for their society. Member education is a membership enlightenment exercise which must be carried out on a continuous basis throughout the life of the co-operative. It must be in line with the roles of member as owners, controllers and patrons of the co-operative enterprise.

 

The officers and management committees require a more technical education to enable them effectively control the management. This requirement is more urgent for the directors of secondary and tertiary co-operatives operating large and complicated business. Their knowledge will apart from influencing their vote on key policy questions, will also enable them to be at breast with the development in the co-operative they direct. This is necessary to be able to compete favorably with the manager who is fully devoted to his business.

 

Co-operative education is at its peak of formality in the University and institutions of higher learning where lecturers engage in the science of cooperation.

Methods and Means of Co-operative Education

 

There are various ways of imparting co-operative education. These could be classified into three basic channels:

 

1.     Programmed Instructions:  This includes lectures, short courses in co-operative societies from co-operative institute and Universities.

 

2.     Print Media: This involves the use of posters, charts, bill board, postcards, letters, slogans, pamphlets, books, libraries, correspondence courses etc.

 

3.     Audio-Visual Aids: This involves the use of signs, symbols, drawings, models, chalk board, electronic media film, tapes, protectors, slides, and motion pictures, radio and television broadcasts.

 

4.     Personal Contact: This involves individual contact, informal group contact, demonstration, field tour, role playing, management game, exhibitions, recreation activities and occasional celebrations, such as International Co-operative day and founder’s day.

 

5.     Adult Education: Takes the following forms viz. speeches, group discussions, symposia, workshop, study group interview forum, committees, brain storming and conferences.

 

It is pertinent to note here that these methods are not mutually exclusive. By this it means that one or more methods could be used at the same time. Example is the multi-media approach where one medium reinforces the other for better results.

SELF EVALUATION QUESTIONS

 

1.     Discuss what is meant by office in relation to co-operative.

 

2.     What are the implications of effective money handling in the co-operative?

 

3.     What are tools of co-operative education? To what extent are they useful in creating co-operative awareness in this society?