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POOR MANAGEMENT, A STUMBLING STONE
OF CONSUMER COOPERATIVES DEVELOPMENT
CHAPTER ONE
1.1 Background
To The Subject Matter
From the book
cooperative identity (1998) “the modern cooperative movement began England during
the fist part of the nineteenth century. There were many years of
experimentation, and many failed attempts, before a successful cooperative was
established. The turning point came in 1944 when the first successful
cooperative, called the Rochdale, an industrial town close to Manchester . The society was registered under
the friendly societies Act. On October 28th 1844, but the shop did
not open for business until December 21st 1944. This cooperative
shop, established 155 years ago, continues to exist and proper up to the
present day.”
They started with
an intensive pre-member education program based on weekly discussion meetings
lasting several months. During these meetings, they drafted their regulations
which they later implemented with tenacity of purpose. They participated
actively and democratically in the running of their society. Everyone bought
shares of one pound each and bought their supplies from the shop in cash
according to their rules. Their officials were honest, highly committed and
fully accountable. They kept strict account of every transaction and declared
their balance sheet quarterly. Their methods led them to success and they
became a model for cooperatives all over the world.”
Furthermore,”
their program was clear: start with a shop, using it as the foundation for
further development. This idealism made them work hard, accept discipline,
overcome difficulties, and eventually an internationally resounding success as
the world’s first authentic cooperative shop. The Rochdale
pioneers ran their shop like a serious business enterprise. Since their initial
capital was small, only twenty-eight ponds, they had to manage it prudently.
They stocked only goods in daily use: bread, flour, sugar, butter oatmeal,
candles, etc later they added shoes, meat and cloth. They kept away from luxury
goods and speculative buying.”
In
this regard, the management had some significant impact to the success of the
cooperatives. Management according to Akpala (1990) can be defined “as the process
of combining and utilizing, or allocating an organization’s inputs (men,
materials and money) by planning, organizing directing and controlling for the
purpose of producing outputs (goods and services or what ever the objects are)
desired by customers so that the organizational objectives are accomplished.”
While
in his book Handbook for secretaries of cooperative John Okowo (1991) said
“management of cooperative business, on behalf of the members, and in
accordance with the decision taken at the meetings, means looking at every
detail with them. Save skill and energy as private traders, to give to the
business.” And Boettinger said “management is an impostion of order on chaos”.
Looking at the role of management in cooperative development, therefore, this
study intends to find out the possible management solutions to the dangling
situation of the operation of consumer cooperative shop under study.
1.2 Historical Background To The Subject Area
The history of consumer cooperative
shop, in the Department of Cooperative Economic And Management CBMS, is dated
back in the month of April, 2000 AD. The shop was decided to be established to
fulfill the requirement of the National Board for Technical Education (NBTE)
for the recognition and accreditation of the higher National Diploma (HND), and
National Diploma (ND) programs in cooperative studies, runned by the
Department. Also, it is to serve as laboratory or references centre, or
demonstrative shop, for students offering the courses, in Kaduna Polytechnic, Kaduna .
The none
availability of essential commodities or scarcity of them needed by the staff,
the cooperative consumer shop is up to provide them to its members. In this shop, commodities are sold to both
the members and non-members at a reduced cost. This is in accordance with the Rochdale equitable pioneers principles. It is believed
that the cooperative consumer shop was also established along side to the same
aims and objectives of Rochdale equitable
pioneers.
1.3 Statement Of Problem
Consumer
cooperative society is very vital to the alleviation of members problems of
essential commodities needed by them, in their, bid to obtain them directly
from their shop instead of buying it from the retailers. Consumer cooperative
society helps its members to purchase their needed pure and unadulterated
goods.
However, the
consumer cooperative shop, in CBMS is not having that constraint and steady
functioning, as it uses to fluctuate in-terms of both managerial aspect of it
and stock availability in the shop. That is to say, sometimes a good management
team (committee) is in place and sometimes the weak one is there. And sometimes
there are goods for sale and sometimes they are not available subsequently,
this contributed to more serious questions being asked, and greatly to low
patronage of members. This informs the focus of this study in order to identify
whether lack of good management is a contributing factor to the failure of
cooperative consumer shop.
1.4 objectives of the study
1. One of the basic objectives of this study
is to clearly bring out the importance of good management in the consumer
cooperative shop.
2. Another objective of this study is to
carefully investigate in to the nature of the management practice applied.
3. It is also the focus of this study to
examine the problems of lack of good management in consumer cooperative shop.
4. The study finally, intends to proper
solutions to the problems of lack of good management in consumer cooperative
shop inform of recommendation.
1.5 Significance Of The Study
1. One of the basic significance of this study
is that as the problem of poor management in consume cooperative shop is
brought in limelight, it would be appreciated and supported by the members.
This will up lift the image of consumer cooperative shop.
2. The study is equally significant in the
sense that as the nature and type of management of the consumer cooperative
shop is known, it will be easier to determine what should be done and how it
should be done so that its benefits can be fully achieved, in the area.
3. In another development, the study is
significant as it will systematically bring-out the major problems of poor
management affecting consumer cooperative shop thereby creating rooms for those
problems to be efficiently tackled so that it can attain greater heights.
4. From the recommendation made, consumer
cooperative shop members can take instance and make adjustment. These
recommendations and recommended solutions will actually help consumer
cooperative shop.
5. Finally, the study will also act as a
spring board (starting point or reference point) to the other researchers or
students in related field of study.
1.6 Purpose Of The Study
1. The purpose of the study is to find out the
general management activities of the consumer cooperative shop since its
inception in the year 2000 A.D. what are the militating management agents
against its development?
2. Secondly, another purpose of the study is
to find out if there are tangible achievements of the business, then what are
the management hindrance and the militating factors against its development?
What brought about these management hinderance and what are the possible remedies?
3. Finally, the purpose of the study if for it
to serve as a practical fulfillment for the award of National Diploma in
Cooperative Studies under the Department of Cooperative Studies, CBMS Kaduna
Polytechnic.
1.7 Research Questions
1. To what extent has the lack of good
management contributed to the irregular availabilities of goods on stock for
sale in the consumer cooperative shop?
2. What type of management activities are
carried-out in the consumer cooperative shop?
3. What practical problems are in the
management of consumer cooperative shop?
4. In the light of the management problems of
consumer cooperative shop, what can be done to remedy the situation?
1.8 Operational Definition Of Terminologies
COMSUMER
COOPERATIVE SHOP: CBMS CONSUMER COOPERATIVE SHOP DEVELOPMENT: SUCCESS OF THE
SHOP
DEVELOP
MEMBERS: Up lift and
improve the living standard of its members.
EQUITABLE:
Equal shares and rights of members
MANAGEMENT:
Proper running of the affairs of the
consumer shop.
OFFICERS: Cooperative leaders.
POOR
MANAGEMENT: Weak
management
STUMBLING
STONE: Hindering
factors.
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