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Issues Relating to Management

Issues Relating to Management

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Published by alex266

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Published by: alex266 on Nov 08, 2009
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The Ethiopian cooperatives have the following issues relating to management.1.Inexperienced staff;2.Lack of adequate training;3.Poor accounting keeping;4.Lack of cooperative audit.5.Lack of managerial leadership;6.Lack of organizational framework for cooperative education and propaganda;Inexperienced Staff:The majority of the Ethiopian cooperatives are being manned by personnel who are notadequately experienced, which in turn, has an adverse effect on effective management of the cooperatives.Lack of adequate training:Trained manpower is very much necessary for every organization and cooperatives arenot exceptions in this regard. In Ethiopian cooperatives, the employees are notadequately trained. The basic reason is, unlike other countries, in Ethiopia, no definitestructure exists for cooperative training. In other countries, separate cooperative trainingstructure consists of two-tiers and three-tiers exist.Poor account keeping:The accounting system followed by Ethiopian cooperatives is outmoded and not in linewith the typical cooperative accounting practices. Any accounting system, to beeffective, should be simplified to make it transparent to the members. So, scientificcooperative system based on receipts and payments is a must for Ethiopian cooperatives.Lack of cooperative audit:In Ethiopia, there is no separate wing for cooperative auditing. At present, no scientificsystem of auditing is done by cooperatives. Every cooperative follow their own systemof auditing. So, there is a need to create a separate audit department with autonomy.Lack of managerial leadership:When cooperatives grow, more and more activities are added and branches are to beopened. This calls for dynamic managers to run the cooperatives efficiently and to facethe competition from private sector. At present, the managers of Ethiopian cooperativesare less informed and less experiences to face the managerial challenges.1
7.Lack of organizational framework for cooperative education and propaganda andgovernment initiative.As cooperative movement in Ethiopia faces ups and downs, an organizationalframework in the form of departmental set-up, and organizational wing focooperative education and propaganda were absent. During the formative years of cooperative development, the government’s initiative in the form of managerial,legislative, infrastructural, financial, and the like are very much important. We haveto go a long way in fulfilling the above needs in Ethiopia.
The following are the issues relating to cooperative leadership in Ethiopia:1.Lack of education of cooperative leaders.2.Lack of initiation from the general public.3.Lack of exposure.4.Sense of fear complex.5.A mentality for self-less service.Lack of education of cooperative leaders:Cooperative leaders in Ethiopia do not have popular cooperative education. In other countries, when the cooperative movement was started, the cooperative leadersthoroughly studied the cooperative movement of their neighbouring countries andother countries. A strong labour movement has provided leadership to thecooperatives in western countries. Such labour movement was absent till recently inEthiopia.Lack of initiation from general public:The general public must have enthusiasm to promote voluntary organizations likecooperatives. Such enthusiasm among the general public can create cooperativeleaders. In the absence of such atmosphere, we cannot expect the emergence of cooperative leaders and organization of new cooperatives.Lack of exposure:Cooperative leaders of Ethiopia lack exposure to the development of cooperatives invarious countries. An exposure of development of cooperatives in other countries canenrich the knowledge of cooperative leaders in promoting new types of cooperativesand strengthening existing cooperatives. The time has come for the Ethiopiancooperative leaders to get the help of world bodies like ILO, and ICA.2

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