CHAPTER 8PRACTICE OF MANAGEMENT IN COOPERATIVES
Practice of management in cooperative is classified on the basis of functions of management like planning, organizing, staffing, directing and controlling. The features of each function are discussion as follows:-
Planning involves the advance determination of things to be done. Thefuture course of action is decided at present. Planning consists of formulation of objectives, policies, programmes, procedures and other names of achieving theseobjectives.
The organizing function means the determination and enumerationof the necessary component activities which are required to achieve the enterpriseobjectives. It means the grouping of these activities, and assigning of theseactivities to groups, departments, and so on. Accordingly activities are dividedand each worker is assigned the job. Necessary authority is also delegated.Coordination is also ensured by the manager for the smooth functioning of works.
Staffing connotes the recruitment of right and competent personnel toman the organization at all levels. Staffing includes section, training, promotion,appraisal, compensation, communication etc. The success of an organizationdepends mainly on this function of management.
In directing the activities of the organization guidance is given to thesubordinates. Directing warrants efficient leadership qualities. Directing functionincludes decision-making guiding, supervising, motivation etc.
Controlling ensures whether the activities are proceeding as per theoriginal plan. Deviations are located and corrected. Controlling includes performance appraisal, corrective actions, etc. Control is undertaken throughinstruments like budget, costing etc.
8.1. Planning in Co-operatives
Co-operatives as business and economic organizations have to plan their future activities,like any other economic organizations. The planning advantages accruing to anyorganization could be bestowed on co-operatives also. ‘If co-operative management is to become more effective, and the sense of mission of co-operative members is to bereinforced, then the function of planning must be pursued with consummate skill andsensitivity. Planning which grows out of the hopes of the people it serves, and istempered by an understanding of what is attainable, brought to a sharp focus by aninformed, pragmatic manager’.1.Planning in co-operatives is needed for the vertical and horizontal growth of individual co-operatives. Lack of proper planning led to the stagnation of manyco-operatives. The primary agricultural credit societies which are expected toundertake multi-purpose activities are confining only to credit disbursal in manystates. Only by proper planning additional activities can be undertaken and thevolume of business should be increased.1