Objective.123.456.789.000.Pgal.2003 Format.amitsir.amitsir

8/7/2019 Objective.123.456.789.000.Pgal.2003 Format.amitsir.amitsir

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Introduction

What is Cooperative Management ?

Cooperation or co-operation is the process of working or acting together, which can be

accomplished by both intentional and non-intentional agents. In its simplest form it

involves things working in harmony, side by side, while in its more complicated forms, it

can involve something as complex as the inner workings of a human being or even the

social patterns of a nation. It is the alternative to working separately in competition.

Cooperation can also be accomplished by computers, which can handle shared resources

simultaneously, while sharing processor time.

Cooperative management means: -

- foster free circulation of information within the company,

- establish, support and reward behaviors based on trust and mutual help,

- make sure that the companys best interest is also the best interest of its employees in

order to induce them into participating,

- mobilize human skills, processes, as well as financial and technological resources so

that the companys goals can be reached.

Objective of Study

1) To understand the meaning of cooperation.

2) To state the characteristics of a cooperative society.

3) To describe the procedure of formation of a cooperative society.

4) To identify the different types of cooperative societies.

5) To identify the Programmed for the development of cooperative.

Time Period of Study

I have started this project from 14 April and i have done it on 28 April. And I have

completed this project in 14 days.

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Methodology used in Research:-

All progress is born of inquiry. Doubt is often better than over confidence, for it

leads to inquiry and inquiry leads to inventions.

The methodology of the research combines systematic and comparative analysis of

scientific literary sources, periodicals and virtual databases. The secondary data was

collected from the books, magazine, journal and from the internet.

Operational definition of Cooperation or Cooperative

Management

Let us take one example

Suppose a poor villager has two cows and gets ten litres of milk.

After consumption by his family everyday he finds a surplus of five liters of milk. What

can he do with the surplus? He may want to sell the milk but may not find a customer in

the village. Somebody may tell him to sell the milk in the nearby town or city. Again he

finds it difficult, as he does not have money to go to the town to sell milk. What should

he do? He is faced with a problem. Do you have any solution for him?

One day that poor villager met a learner of NIOS who had earlier read this lesson. The

learner told him, you see, you are not the only person facing this problem. There are

many others in your village and also in the nearby village who face a similar problem.

Why dont you all sit together and find a solution to your common problem? In the

morning you can collect the surplus milk at a common place and send somebody to the

nearby town to sell it. Again in the evening, you can sit together and distribute the money

according to your contribution of milk. Of course first you have to deduct all the

expenses from the sale proceeds.

That villager agreed to what the learner said. He told everybody about this new idea and

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formed a group of milk producers in his village. By selling the milk in the nearby town

they were all able to earn money. After that they did not face any problem of finding a

market for the surplus milk.

This process continued for a long time. One day somebody suggested that instead of

selling only milk why not produce other milk products like ghee, butter, cheese, milk

powder etc. and sell them in the market at a better price? All of them agreed and did the

same. They produced quality milk products and found a very good market for their

products not only in the nearby town but in the entire country.

Just think it over. A poor villager, who was not able to sell five litres of milk in his

village, is now selling milk and milk products throughout the nation. He is now enjoying

a good life.

How did it happen? Who made it possible? This is the reward of a joint effort or co

operation.

The term co-operation is derived from the Latin word co-operatic, where the word co

means with and operatic means to work. Thus, co-operation means working together.

So those who want to work together with some common economic objective can form a

society which is termed as co-operative society. It is a voluntary association of persons

who work together to promote their economic interest. It works on the principle of self

help as well as mutual help. The main objective is to provide support to the members.

Nobody joins a cooperative society to earn profit. People come forward as a group, pool

their individual resources, utilise them in the best possible manner, and derive some

common benefit out of it.

In the above example, all producers of milk of a village joined hands, collected the

surplus milk at a common place and sold milk and milk products in the market. This was

possible because of their joint effort. Individually it would not have been possible either

to sell or produce any milk product in that village. They had formed a co-operative

society for this purpose.

In a similar way, the consumers of a particular locality can join hands to provide goods of

their daily need and thus, form a co-operative society. Now they can buy goods directly

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from the producers and sell those to members at a cheaper price. Why is the price

cheaper?

Cooperative management, also co-management, tries to achieve more effective and

equitable systems of resource management. In cooperative management, representatives

of user groups, the scientific community, and government agencies should share

knowledge, power, and responsibility.

Cooperative management is closely allied with collaborative management, participatory

management, community management, joint management, and stakeholder management.

Main condition

There are four main conditions that tend to be necessary for cooperative behavior to

develop between two individuals:

An overlap in desires

A chance of future encounters with the same individual

Memory of past encounters with that individual

A value associated with future outcomes

Objectives of Cooperation

Share same objectives

Give a high satisfaction level to our common customers

Increase our global competitiveness

Develop jointly our respective business in a win- win and loyal approach

Create a successful relationship

Schneider Electric does not compete with Schneider Electric Alliance system

integrators

Schneider Electric Alliance system integrators propose and deliver systems based

on Schneider Electric solutions whenever it's possible.

Actively develop business

System integrator continues to push its business growth, looking for new projects

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Schneider Electric still making prescription actions toward end users to promote

its offer.

Co-operatives in India were introduced by the British primarily to aid small-scale farmers

and to improve access to rural credit. The first Co-operative Societies Act was adopted in

1904, which then only included credit co-operatives. The act was soon amended to grant

the registration at the State level of non-credit co-operatives, including housing and its

administration, allowing them to adapt the legislation to prioritize local needs, in the

years 1912 and 1919 respectively.

Types of Co-operative Societies

Although all types of cooperative societies work on the same principle, they differ with

regard to the nature of activities they perform. Followings are different types of co-

operative societies that exist in our country.

1. Consumers Co-operative Society: -

These societies are formed to protect the interest of general consumers by making

consumer goods available at a reasonable price. They buy goods directly from the

producers or manufacturers and thereby eliminate the middlemen in the process of

distribution. Kendriya Bhandar, Apna Bazar & Sahkari Bhandar are examples of

consumers co-operative society.

2. Producers Co-operative Society: -

These societies are formed to protect the interest of small producers by making available

items of their need for production like raw materials, tools and equipments, machinery,

etc. Handloom societies like APPCO, Bayanika, Haryana Handloom, etc., are examples

of producers co-operative society.

3. Co-operative Marketing Society: -

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These societies are formed by small producers and manufacturers who find it difficult to

sell their products individually. The society collects the products from the individual

members and takes the responsibility of selling those products in the market. Gujarat Co-

operative Milk Marketing Federation that sells AMUL milk products is an example of

marketing co-operative society.

4. Co-operative Credit Society: -

These societies are formed to provide financial support to the members. The society

accepts deposits from members and grants them loans at reasonable rates of interest in

times of need. Village Service Co-operative Society and Urban Cooperative Banks are

examples of co-operative credit society.

5. Co-operative Farming Society: -

These societies are formed by small farmers to work jointly and thereby enjoy the

benefits of large-scale farming. Lift-irrigation cooperative societies andpani-panchayats

are some of the examples of co-operative farming society.

6. Housing Co-operative Society: -

These societies are formed to provide residential houses to members. They purchase land,

develop it and construct houses or flats and allot the same to members. Some societies

also provide loans at low rate of interest to members to construct their own houses. The

Employees Housing Societies and Metropolitan Housing Co-operative Society are

examples of housing co-operative society.

Characteristics of Co-operative Society

A co-operative society is a special type of business organisation different from other

forms of organisation. Let us discuss its characteristics.

i. Open membership:

The membership of a Co-operative Society is open to all those who have a common

interest. A minimum of ten members are required to form a cooperative society. The Co

operative societies Act does not specify the maximum number of members for any co-

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operative society. However, after the formation of the society, the member may specify

the maximum number of members.

ii. Voluntary Association :Members join the co-operative society voluntarily, that is, by choice. A member can join

the society as and when he likes, continue for as long as he likes, and leave the society at

will.

iii. State control:

To protect the interest of members, co-operative societies are placed under state control

through registration. While getting registered, a society has to submit details about the

members and the business it is to undertake. It has to maintain books of accounts, which

are to be audited by government auditors.

iv. Sources of Finance:

In a co-operative society capital is contributed by all the members. However, it can easily

raise loans and secure grants from government after its registration.

v. Democratic Management:

Co-operative societies are managed on democratic lines. The society is managed by a

group known as Board of Directors. The members of the board of directors are the

elected representatives of the society. Each member has a single vote, irrespective of the

number of shares held. For example, in a village credit society the small farmer having

one share has equal voting right as that of a landlord having 20 shares.

iv. Service motive:

Co-operatives are not formed to maximise profit like other forms of business

organisation. The main purpose of a Co-operative Society is to provide service to its

members. For example, in a Consumer Co-operative Store, goods are sold to its members

at a reasonable price by retaining a small margin of profit. It also provides better quality

goods to its members and the general public.

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v. Separate Legal Entity:

A Co-operative Society is registered under the Co-operative Societies Act. After

registration a society becomes a separate legal entity, with limited liability of its

members. Death, insolvency or lunacy of a member does not affect the existence of a

society. It can enter into agreements with others and can purchase or sell properties in its

own name.

vi. Distribution of Surplus:

Every co-operative society in addition to providing services to its members, also

generates some profit while conducting business. Profits are not earned at the cost of its

members. Profit generated is distributed to its members not on the basis of the shares held

by the members (like the company form of business), but on the basis of members

participation in the business of the society. For example, in a consumer co-operative store

only a small part of the profit is distributed to members as dividend on their shares; a

major part of the profit is paid as purchase bonus to members on the basis of goods

purchased by each member from the society.

vii. Self help through mutual cooperation

Co-operative Societies thrive on the principle of mutual help. They are the organisations

of financially weaker sections of society. Co-operative Societies convert the weakness ofmembers into strength by adopting the principle of self-help through mutual co-operation.

It is only by working jointly on the principle of Each for all and all for each, the

members can fight exploitation and secure a place in society.

Salient Significance :-

Cooperation in a vast country like India is of great significance because :-

It is an organization for the poor , illiterate and unskilled people. It is an institution of mutual help and sharing.

It softens the class conflicts and reduces the social cleavages.

It reduces the bureaucratic evils and follies of political factions.

It overcomes the constraints of agricultural development.

It creates conducive environment for small and cottage industries.

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Development of Cooperatives in Rural or Urban Areas

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The following above situation: in agriculture fewer workers produce more; the non-

agricultural population absorbs this greater production, which is on the increase in urban

as well as rural areas. The farmers thus have a larger income, which enables them to

afford a larger volume of consumer products. The non-agricultural population, in urban

and rural areas, devotes itself to increasing local industrial productivity. This additional

production is consumed by the non-agricultural and agricultural sectors of the population,

the purchasing power of which will be increased.

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Provides refinance facilities to the institution as under

TYPES OF REFINANCE FACILITIES

AGENCY CREDIT FACILITIES

Commercial Banks Long Term credit for investment purposes,

financing the working capital requirements

of Weavers' Cooperative Societies (WCS)

and State Handloom/Handicraft

Development Corporations

Short Term Cooperative structure (State

Cooperative Banks, District Central

Cooperative Banks, Primary Agricultural

Credit Societies)

Short Term (crop and other loans), medium

term (conversion) loans, term loans for

investment purposes, financing weavers'

cooperatives - State Handloom

Development Corporations for working

capital by State Cooperative Banks

Long Term Cooperative structure (State

Cooperative Agriculture and Rural

Development Banks, Primary Cooperative

Agriculture and Rural Development Banks)

Term loans for investment purposes

Regional Rural Banks (RRBs) Short Term (crop and other loans) and term

loans for investment purposes

Urban Cooperative Banks (Scheduled) Long term investment activities both in

farm and non-farm sectors in rural areas.

State Governments Long Term loans for equity participation in

Co-operatives, Rural Infrastructure

Development Fund (RIDF) loans for rural

infrastructure projects

Non-Governmental Organisations (NGOs)

- Informal Credit Delivery System

Revolving Fund Assistance for MicroCredit Delivery Innovations and

Promotional Projects

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B. Developmental & Promotional

The developmental role of NABARD can be broadly classified as:-

Nurturing and strengthening of - the Rural Financial Institutions (RFIs) like

SCBs/SCARDBs, CCBs, RRBs etc. by various institutional strengthening

initiatives.

Fostering the growth of the SHG Bank linkage programmed and extending

essential support to SHPIs NGOs/VAs/ Development Agencies and client banks.

Development and promotional initiatives in farm and non-farm sector. Extending

assistance for Research and Development. Acting as a catalyst for Agriculture and

rural development in rural areas.

C. Supervisory

Supervisory Activities As the Apex Development Bank, NABARD shares with the

Central Bank of the country (Reserve Bank of India) some of the supervisory functions in

respect of Cooperative Banks and RRBs. Special Focus

Removal of regional/sect oral imbalances

Poverty Alleviation and Employment Generation

Development of rural micro-enterprises

Strengthening Rural Financial Institutions (RFIs)

Encouraging prudential financial standards in RFIs

Encouraging capital formation in agriculture

Promotion of micro-finance/ development

Rural Infrastructure Development

Hi-tech and export oriented projects

Creating policy environment for flow of rural credit

Experimenting with new models, products and innovative practices in rural credit

Thrust on rural awareness and financial services

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Customers of the Bank

The customers of NABARD are Cooperative Banks, State Land development Bank,

Scheduled Commercial Banks, Urban Cooperative Banks and such financial institutions

as may be approved by RBI. Further, NABARD also deals with voluntary

agencies/NGOs besides various State Govts. While discharging various credit functions,

NABARD has no direct business dealings with public at large, although all the functions

are directed at securing and promoting integrated rural development and prosperity of

rural areas. The interaction between NABARD staff and the ultimate borrowers i.e.,

farmers, artisans, craftsmen and entrepreneurs, takes place while conducting a number of

field level studies, fostering the growth of the SHG bank linkage, developing Vikas

Volunteer Vahini (VVV) and sanctioning/monitoring the various promotional schemes

under NFS/FS. NABARD has recently introduced the Capital Gains Bonds and these

bonds are subscribed by publics.

Quality of Service

NABARD has a complement of suitably qualified and experienced staff in the following

areas : General Banking Agriculture and related services such as Irrigation, Plantation

and Horticulture, Land Development, Agriculture Engineering, Bio-technology,

Fisheries, Forestry, etc.

Agriculture Economics& Information Technology.

The staff provide need-based services to its client banks, state governments, SHGs/NGOs

which ultimately serve the interest of agriculture and rural development. NABARD

through its District Development Managers and Regional Offices deals with client banks,

State Govts. and voluntary agencies. It has been the endeavour of NABARD to provide

various credit and financial services to the RFIs timely and efficiently. The above

customers of NABARD, in turn, have public at large, as their customers. Thus, indirectly

NABARD is responsible for giving timely services to these clients to enable them to act

timely with their customers i.e. general public at large.

To improve the quality of service as well as keeping in tune with the emerging

developments in Information Technology, NABARD has launched an Action Plan on

information technology and its implementation has been vigorously pursued. Networking

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Access to information NABARD has its own website and its address is

www.nabard.org. The website highlights all major areas of its functioning and broadly

indicates all matters relating to organisation, role and functions, operations, rural

economy, international associates, addresses of its offices, etc. The general public at large

may, if required on matters relating to credit for agriculture and rural development

approach HO, ROs or DDMs of NABARD whose addresses are given in the above

website. The National Bank Home Page is updated periodically to provide latest

information on the policy changes, operations, etc. Apart from the website NABARD has

its own Public Relation Officer to disseminate any information relating to the

Organization, agriculture and rural development and related policies adopted by the

Organization. The information relating to agriculture, rural development, banking, etc.

are also published by NABARD through its various publications such as books,

periodicals, booklets, etc. in both Hindi and English and some periodicals even in local

languages. The Annual Report of NABARD including its Balance Sheet/Profit and Loss

Accounts is published/circulated giving necessary details/disclosures about its

performance.

Important Initiatives by NABARD

Institutional Strengthening Initiatives Preparing Institution Specific Development Action

Plans (DAPs) and entering into MoUs with Cooperative Banks and RRBs

Facilitating State-specific reform packages for Cooperative Banks

ODI Intervention and Training and capacity building in RFIs

Support for improvement of business, system, HRD, etc. of cooperatives

Social Re-engineering through Vikas Volunteer Vahini (VVV)

Institution of Awards for good performing Cooperative Banks

Assistance for Business Development Cells (BDC) in Co-operative and RRBs

Micro Finance Innovations and Strategies

Grant support to Self Help Promoting Institutions (SHPIs) to improve access to credit for

rural poor Capacity Building of partner institutions in micro Finance Supporting and up

scaling of SHG-bank linkage programme.

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Development Initiatives

Introduction and popularisation of Kisan Credit Card Scheme

Support for watershed development programmes from Watershed DevelopmentFund

Supporting & promoting Dry land farming practices

Promoting investment in NFS including rural housing, communication and

service sector

Credit intensification through area programmes like DRIP and Cluster

Development

Strengthening rural Haat/marketing pursuits

Support for REDPs Institutionalisation

Support for women entrepreneurs and addressing gender issues in credit

Assistance for environmental awareness/protection

Support for Agri business, Agri-clinic and extension activities

Research and Development Initiatives

Support to Research activities in areas of agriculture and rural development

Support for seminars, conferences and workshops

Conducting institution/area/sector/project-specific studies

Dissemination of findings of studies and research and innovative models and

practices.

Supervision

On-site inspection and off-site surveillance of RFIs Issue of warning signals to banks

showing deterioration in financial position and adverse features Taking preventive and

revival measures for weak banks.

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Institution of purpose-specific funds in NABARD

Watershed Development Funds (WDF)

Co-operative Development Funds (CDF)

Rural Promotion Corpus Fund (RPCF)

Credit and Financial Services Fund (CFSF)

Micro-Finance Development Fund

Soft Loan Assistance for Margin Money Fund

National Rural Credit Operation Fund

National Rural Credit Stabilisation Fund

Agriculture and Rural Enterprises Incubation Fund

Ministry of Rural Development & Cooperatives

The Ministry for Rural Development & Cooperatives was created with the primary

mandate to initiate, implement, manage and sustain development programmes amongst

rural communities especially in the key areas of infrastructure/ economic empowerment

and human capacity building. This is in recognition of the fact that about 80% of the

Benue population, who also account for most of the State's economic production, live in

the rural areas where basic infrastructures and other amenities of modern living have

remained largely undeveloped. The challenge of improving the conditions of living for

increased well-being of the rural populace is therefore critical to the development of the

entire State. In addition, the Ministry has the responsibility of coordinating and

monitoring the activities of other organizations and agencies involved in the

implementation of rural development activities, as well as mobilising additional resources

for rural development in the State. In its one year of existence, the Ministry has carried the

following Programme:-

The Ministry has designed and formulated six programme components as Follows:

1. Rural (Feeder) Roads Construction:

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To build and maintain all year round motorable road network in the rural areas.

2. Rural Electrification:

To supply electricity to all rural communities in the state through the exploitation of

renewable energy generation, transmission and distribution.

3. Cooperatives and Micro Finance Administration:

To mobilize and organize the populace/ especially rural dwellers to form and operate

cooperative societies to enhance resource mobilization for economic development

through self-help efforts; to make financial services available to rural cooperative

societies via synergy and mainstreaming of the informal sub-sector into the formal

financial system.

4. Rural Market Development & Community Skills Acquisition:

To provide and maintain modern market facilities that enhance exchange, promote value

addition and guarantee returns on effort to rural farmers, as well as eradicate rural

poverty by generating employment through artisanal skills acquisition and training.

5. Rural Housing & Settlement Planning :

To facilitate the provision of decent and affordable housing for the rural dwellers by the

utilizing of the National Housing Fund through the services of private estate developers,

and significantly affect the settlement pattern in the rural areas to-enhance development.

6. Capacity Building for Management of Development:

To ensure sustenance of infrastructural and economic reforms through capacity building

for management of development, positive attitudinal orientation for collective governance

and provision of support services to rural communities.

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Conclusion

We have learnt that the main objective of co-operative form of business organisation is to

provide service rather than to earn profit. The co-operative society is the only alternative

to protect the weaker sections of the society and to promote the economic interest of the

people. In certain situations when it is not possible to achieve the target by individual

effort, collective effort in the form of a co-operative society is preferred. Housing co-

operatives, Marketing co-operatives, etc., are formed to achieve the common economic

objectives of the members. Generally co-operative society is suitable for small andmedium size business operation. However, large scale co-operative societies like IFFCO,

KRIBHCO etc. Are also found in India .From the above explanation we conclude that-

A co-operative society is a voluntary association of individuals having common

needs who join hands for the achievement of common economic interest. Its aim

is to serve the interest of the poorer sections of society through mutual help.

Membership of co-operative societies is voluntary and open to all. It is

democratically managed and it has a separate legal existence . The main motive is

to provide service to the members. It works on the principle of self help through

mutual cooperation of members.

A co-operative society can be formed under the Co-operative Societies Act, 1912,

with a minimum of ten members. For registration, an application along with bye-

laws of the society has to be submitted to the Registrar of Co-operative Societies.

Co-operative societies are easy to form and have a stable life. Membership is open

to all and members have limited liability. There is democratic management based

on one-man, one vote. The societies have stable life and they enjoy government

patronage.

They suffer from insufficient capital, problems in management and conflict

among members. There is lack of motivation in members due to absence of direct

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reward for individual effort. Excessive government regulation and control may

also pose problems for them.

Co-operative societies are suitable in protecting exploitation of weaker sections of

society and promoting their economic interest. It is ideal where service motive,

and not profit, is the priority.

The cooperative form of enterprise provides rural populations an option to organize and

improve their livelihoods by providing income and creating jobs. Policy makers must

ensure the current policies and administrative practices (registration procedures, taxation

policies, accounting standards, capital standards for financial institutions as well as

ability to access funding, etc) do not hinder the development and growth of cooperatives.

Bibliography

1) http://www.en.wikipedia.org/wiki/

2) http://www.indian.edu

3) http:// www.coopgalor.com

4) http://www.marketingteacher.com

5) http://www.facebook.com

6) https://www.egyankosh.com

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