CO-OPERATIVE ADMINISTRATION

UNIT -1
COOPERATIVE MANAGEMENT

Introduction of Management

Every human being has several needs and desires. But no individual can satisfy all his wants.
Therefore, people work together to meet their mutual needs which they cannot fulfil individually.
Moreover, man is a social being as he likes to live together with other people. It is by working and
living together in organised groups and institutions that people satisfy their economic and social
needs. As a result there are several types of groups, eg., family, school, government, army, a
business firm, a cricket team and the like. Such formal groups can achieve their goals effectively
only when the efforts of the people working in these groups are properly coordinated and controlled.
The task of getting results through others by coordinating their efforts is known as management. Just
as the mind coordinates and regulates all the activities of a person, management coordinates and
regulates the activities of various members of an organisation.

Management is getting things done with effectiveness and efficiency. It is designing and
maintaining an environment in which individuals working together accomplish selected aims
efficiently.

Management is the first of the modern institutions to shape the society. It pays a vital role in
modern world. It regulates man’s productive energies. It organizes factors of production. Peter
Drucker observes that without the leadership of management, a country’s resources of
production remain resources and never becomes production. Management converts a mob into
an organization, and human efforts into performance. ‘Management’ is the catalyst which
makes possible rapid economic and social development in freedom and with human dignity.

MEANING OF MANAGEMENT

As the term ‘management’ is used in several contexts, it has different meanings to different
people. Management has three different meanings:

1. As a Noun
When used as a noun, management refers to all those who have both responsibility and
authority to manage an organization and who are responsible for the work of others at all levels.
W.J. Reddin states that “a manager is a person occupying a position in a formal organization
who is responsible for the work of at least one other and who has formal authority over that
person. Persons, whose work he is responsible for, are his subordinates.”

2. As a Process
Management is also tasks, activities and functions. As a process, management refers to what
management does, i.e., the function performed by management ‘Managing’ is considered as a
process which may include a variety of functions, principles, techniques, skills and other
measures of accomplishing the work and activities of organization. Management as a process
implies a series of actions or elements. These are planning, organization, staffing, directing, co-
ordination etc.

3. As a Discipline
 Sometimes, the word ‘management’ is used to connote the body of knowledge and practice. In
this sense, it becomes a separate subject, a field of learning, and an organized, formal discipline.
It is young discipline.

DEFINITION OF MANAGEMENT

Management is the coordination of all resources through the process of planning, organising,
directing and controlling in order to attain stated objectives. —Henry L. Sisk.

Management is the art of knowing what you want to do and then seeing that it is done in the
best and cheapest way.
—F.W.
Taylor
To manage is to forecast and to plan, to organise to command, to coordinate and to control.
—Henry Fayol

Management is a distinct process consisting of planning, organising, actuating and controlling

performed to determine and accomplish the objectives by the use of people and resources.
George R.
Terry

Management is guiding human and physical resources into dynamic organisational units which
attain their objectives to the satisfaction of those served and with a high degree of morale and
sense of attainment on the part of those rendering service.
—American Management
Association

Management is a multipurpose organ that manage a business and manages Managers and
manages Workers and work.
—Peter Drucker

NATURE OF MANAGEMENT

To understand the basic nature of management, it must be analyzed in terms of art and science,
in relation to administration, and as a profession, in terms of managerial skills and style of
managers.

Management as a Science
Science means a systematic body of knowledge pertaining to a specific field of study. It
contains general principles and facts which explains a phenomenon. These principles establish
cause-and-effect relationship between two or more factors. These principles and theories
help to explain past events and may be used to predict the outcome of actions. Scientific
methods of observations, and experiments are used to develop principles of science. The
principles of science have universal application and validity.
Thus, the essential features of science are as follows:
 (i) Basic facts or general principles capable of universal application
(ii) Developed through scientific enquiry or experiments
(iii) Establish cause and effect relationships between various factors.
(iv) Their Validity can be verified and they serve as reliable guide for predicting
future events. Let us now examine as to what extent management satisfies the above
conditions:
(i) Systematic body of knowledge: Management has a systematic bodyof knowledge
consisting of general principles and techniques. These help to explain events and serve as
guidelines for managers in different types of organisations.
(ii) Universal principles: Scientific principles represent basic factsabout a particular field
enquiry. These are objective and represent best thinking on the subject. These principles
may be applied in all situations and at all times. Exceptions, if any, can be logically
explained. For example, the Law of Gravitation states that if you throw an object in the
air it will fall on the ground due to the gravitational force of the earth. This law can be
applied in all countries and at all points of time. It is as applicable to a football as it is to
an apple falling from tree. Management contains sound fundamental principles which can
be universally applied. For instance, the principle of unity of command states that at a
time one employee should be answerable to only one boss. This principle can be applied
in all types of organisation-business or non business. However, principles of
management are not exactly like those of physics or chemistry. They are flexible and need
to be modified in different situations.
Scientific enquiry and experiments: Scientific principles are derivedthrough scientific
investigation and reasoning. It means that there is an objective or unbiased assessment of
the problem situation and the action chosen to solve it can be explained logically.
Scientific principles do not reflect the opinion of an individual or of a religious guru.
Rather these can be scientifically proved at any time. They are critically tested. For
example, the principle that the earth revolves around the sun has been scientifically
proved. Management principles are also based on scientific enquiry and investigation.
These have been developed through experiments and practical experience of a large
number of managers. For example, it has been observed that wherever one employee has
two or more bosses simultaneously, confusion and indiscipline are likely to arise, with
regard to following the instructions.
(iii) Cause and effect relationship: Principles of science lay downa cause and effect
relationship between related factors. For example, when water is heated up to 100ºC, it
starts boiling and turns into vapor. Similarly, the principles of management establish
cause and effect relationship between different variables. For instance lack of balance
between authority and responsibility will cause management to become ineffective.
(iv) Tests of validity and predictability: Validity of scientific principlescan be tested at any
time and any number of times. Every time the test will give the same result. Moreover,
the future events can be predicted with reasonable accuracy by using scientific principles.
For example, the Law of Gravitation can be tested by throwing various things in the air
and every time the object will fall on the ground. Principles of management can also be
tested for their validity. For example, the principle of unity of command can be tested by
comparing two persons, one having a single boss and other having two bosses. The
performance of the first person will be higher than that of the second.
Thus, management is undoubtedly a science. It contains a systematic body of knowledge in
the form of general principles which enjoy universal applicability. However, management
is not as exact a science—Physics, Chemistry, Biology and other Physical sciences. This is
because management deals with people and it is very difficult to predict accurately the
behavior of living human beings. Management principles are universal but they cannot be
 expected to give exactly the same results in every situation. That is why management is
known as a soft science. Management is a social science. It is still growing, with the
growing needs of human organisations.

Management as an Art
Art implies the application of knowledge and skills to bring about the desired results. The
essential elements of arts are:
(i) Practical knowledge
(ii) Personal skill
(iii) Result oriented approach
(iv) Creativity
(v) Improvement through continuous practice

Let us judge how far management fulfils these requirements:

(i) Practical knowledge: Every art signifies practical knowledge. Anartist not only learn the
theory but also its application in practice. For example, a person may have adequate
technical knowledge of painting but he cannot become a good painter unless he knows
how to make use of the brush and colours. Similarly, a person cannot become a
successful manager simply by reading the theory and getting a degree or diploma in
management. He must also learn to apply his knowledge in solving managerial problems
in practical life. A manager is judged not just by his technical knowledge but by his
efficiency in applying this knowledge.
(ii) Personal skill: Every artist has his own style and approach to hisjob. The success of
different artists differ even when all of them possess the same technical knowledge or
qualifications. This is due to the level of their personal skills. For example, there are
several qualified singers but Lata Mangeshkar has achieved the highest degree of
success. Similarly, management is personalised. Every manager has his individual
approach and style in solving managerial
problems. The success of a manager depends on his personality in addition to his
technical knowledge.
(iii) Result-oriented approach: Arts seeks to achieve concrete results. The process of
management is also directed towards the accomplishment of desirable goals. Every
manager applies certain knowledge and skills to achieve the desired results. He uses men,
money, materials and machinery to promote the growth of the organisation.
(iv) Creativity: Art is basically creative and an artist aims at producing something that had
not existed before. Therefore, every piece of art requires imagination and intelligence to
create. Like any other art, management is creative. A manager effectively com-bines and
coordinates the factors of production to create goods and services. Moulding the attitudes
and behaviour of people at work, towards the achievement of the desired goals is an art of
the highest order.
(v) Improvement through people: Practice makes one perfect.Every artist becomes more and
more efficient through constant practice. A dancer, for example, learns to perform better
by continuously practicing a dance. Similarly, manager gains experience through regular
practice and becomes more effective.

Thus, “management is both a science as well as an art”. It is a science because it has an

organised body of knowledge consisting of certain universal facts. It is known as an art because
it involves creating results through practical application of knowledge and skills. How-ever, art
 and science are complementary to each other. They are not mutually exclusive. Science teaches
one to know and art to do. Art without science has no guide and science without art is
knowledge wasted.

For example, a person cannot be a good surgeon unless he has scientific knowledge of human
anatomy and the practical skill of applying that knowledge in conducting an operation.
Similarly, a successful manager must know the principles of management and also acquire the skill of
applying those principles for solving managerial problems in different situations. Knowledge of
principles and theory is essential, but practical application is required to make this knowledge fruitful.
One cannot become an effective manager simply by learning management principles by heart. Science
(theory) and art (practice) are both essential for the success of management.

CHARACTERISTICS OF MANAGEMENT

1. Management is goal-oriented
Management is not an end in itself. It is a means to achieve certain goals. Management has
no justification to exist without goals. Management goals are called group goals or
organisational goals. The basic goal of management is to ensure efficiency and economy in
the utilisation of human, physical and financial resources. The success of management is
measured by the extent to which the established goals one achieved. Thus, management is
purposeful.

2. Management is an Activity
Management is a process of organized activity. It is concerned with the efficient use of
resources of production. This process is made up of some interrelated elements-planning,
organizing, leading and controlling. Terry says, “Management is not people, it is an activity.”
Those who perform this activity are designated as ‘Managers’.

3. Management is Multidimensional
A single activity of business includes three main acts.
i. Management of work- planning, organizing, controlling
ii. Management of people- staffing, directing
iii. Management of operations- production, sales, purchase

4. Management is a continuous Process

Management is a dynamic and an on-going process. The cycle of management continues to
operate so long as there is organised action for the achievement of group goals.

5. Management is Intangible
Management is an unseen or invisible force. It cannot be seen but its presence can be felt
everywhere in the form of results. However, the managers who perform the functions of
management are very much tangible and visible.

6. Management is multidisciplinary
Management has to deal with human behaviour under dynamic conditions. Therefore, it
depends upon wide knowledge derived from several disciplines like engineering, sociology,
psychology, economics, anthropology, etc. The vast body of knowledge in management
draws heavily upon other fields of study.
7. It is Dynamic
Management is not a static activity. It adapts itself to the new changes in society. It also
introduces innovation in its style and techniques. It accepts environmental changes.

8. Hierarchical Nature
Management has several positions, ranks, authority and hierarchies flowing from top to
bottom across all levels in the organization. It has top, middle and bottom levels with
superiors and subordinates. Management contains a chain of authority and command with
attached responsibility. This is known as the managerial hierarchical system of authority.

9. Group Activity
It is concerned with the efforts of a group. It works in ‘cooperative group’. Managers are
vital to joint activity. Management is essential wherever people work together for a common
cause. Management plans, organizes, go-ordinates, directs and controls the group efforts, not
the individual efforts.

10. Management is Universal

Management is needed in all types of organized activities and in all types of organizations. In
fact, it is present in all walks of life. Fayol writes, “Be it a case of commerce, industry, politics,
religion, war or philanthropy, in every concern there is a management functions to be
performed.” Also, the techniques and tools of management are universally applicable.

11. Separate Identity

Management represents a separate class of managerial personnel who are quite different from
the identity of workers and capitalists. It is a class of administrators and planners. Managers
need not to be owners. In modern industrial society Labour, Management and Capital are
different entities.

12. It Involves Decision-making

Making decision is a real identity of a manager. He is a planner and thinker. He decides the
course of action, strategies, policies and programmes. Drucker states, “Whatever a manager
does, he does through making decisions.” Thus, management is always a decision-making
process,

.
13. Pervasive at all Levels
Managerial activity pervades all levels of the organization. It is required at top, middle and
supervisory levels for getting things done through others. Every manager, whether he works at
top or low level, performs the same managerial tasks to do his role

14. Management is a Social Process

Management is done by people,through people and for people. It is a social process because it
is concerned with interpersonal relations. Human factor is the most important element in
management. According to Appley, “Management is the development of people not the
direction of things. A good manager is a leader not a boss. It is the pervasiveness of human
element which gives management its special character as a social process”.

15. Management is an Integrative Force

The essence of managementlies in the coordination of individual efforts in to a team.
 Management reconciles the individual goals with organisational goals. As unifying force,
management creates a whole that is more than the sum of individual parts. It integrates human
and other resources.

OBJECTIVES OF MANAGEMENT

The objectives of management are narrated as under.

(i) Organisational objectives: Management is expected to work for theachievement of the
objectives of the particular organisation in which it exists. Organisational objectives
include:
(a) Reasonable profits so as to give a fair return on the capital invested in business
(b) Survival and solvency of the business, i.e., continuity.
(c) Growth and expansion of the enterprise
(d) Improving the goodwill or reputation of the enterprise.
(ii) Personal objectives: An organisation consists of several personswho have their own
objectives. These objectives are as follows:
(a) Fair remuneration for work performed
(b) Reasonable working conditions
(c) Opportunities for training and development
(d) Participation in management and prosperity of the enter-prise
(e) Reasonable security of service.
(iii) Social objectives: Management is not only a representative ofthe owners and workers,
but is also responsible to the various groups outside the organisation. It is expected to
fulfil the objectives of the society which are given below:
(a) Quality of goods and services at fair price to consumers.
(b) Honest and prompt payment of taxes to the Government.
(c) Conservation of environment and natural resources.
(d) Fair dealings with suppliers, dealers and competitors.
(e) Preservation of ethical values of the society.

FUNCTIONS OF MANAGEMENT
Management functions are the activities that a manager must perform as a result of the
position held in the organization. The best way to analyses the management process is in terms
of what a manager does. Generally the basic functions of management are: planning,
organizing, staffing, directing and controlling. As managing is a dynamic and challenging
activity, it includes three kinds of functions and tasks which are common to all managerial
jobs. The list of management functions can be presented as follows:

I. Basic Functions
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
II. Dynamic Functions
1. Co-ordinating
2. Decision Making
3. Representation
4. Innovation
5. Administration
III. Challenging Functions
1. Managing Work
2. Managing People
3. Managing Operations
4. Managing Change
5. Managing Time
6. Strategy Formulation and Action
7. Making Work Productive and the Worker Achieving
8. Managing Social Impacts and Social Responsibilities

Basic Functions

1. Planning
Planning is one of the most important functions because it sets the pattern for the other
activities to follow. Planning function for the new era is more broadly described as delivering
strategic value. It is a primary and crucial function which determines how to achieve an
objective-deciding what is to be done and when to do it. It is looking ahead and preparing for
the future.

2. Organizing
Organizing is the process by which the structure and allocation of jobs are determined. To
organize a business is to provide it with everything useful to its functioning.

3. Staffing
Staffing is the process of planning, recruiting, developing, compensating and maintaining
human resources in an organization. In staffing, a manager recruits and selects suitable
personnel for manning the jobs.

4. Directing
The fourth basic function of management is directing. This is also termed leading or actuating.
While planning tells us what to do and organizing tells us how to do directing tells us why the
employees should want to do it. Directing is concerned with guiding and leading people. It
consists of supervising and motivating the subordinates towards the achievement of set goals.

(i) Communication
(ii) Command
(iii) Motivation
(iv) Leadership
(v) Supervision
(vi) Controlling

5. Controlling
Controlling is evaluating the performance and applying corrective measures so that the
performance takes place according to plans. It is reviewing the performance of the employees
in the light of the targets and goals.

DYNAMIC FUNCTIONS
1. Co-ordinating: To co-ordinate is to harmonize all the activities, decisions and efforts
of an organization so as to achieve the unity of action. It is blending the efforts of all
employees for and efficient running of an organization.
2. Decision Making: decision making is the process by which a course of action is
 consciously chosen from available alternatives. Decision making is inherent in every
managerial function.
3. Representation: the manager’s job also includes representing his organization in
dealings with outside group-government officials, unions, civic groups, financial
institutions, customers, suppliers, and the general
4. Innovation: innovation means developing new ideas, new products, new quality or
devising new methods of work. In other words, the real manger is always an innovator.
Innovation is the specific function of entrepreneurial managers, the means by which
they exploit change as an opportunity.
5. Administration: this is a new task of manager which is described by peter F. drucker
he says, “The manger has to administer. He has to manage and improve what
already exists and is already known. He has to redirect resources from areas of low or
diminishing results to areas of high or increasing results. He has to slough off
yesterday and to render obsolete what already exists. He has to create tomorrow.

CHALLENGING FUNCTIONS

1. Management of Work: In an organization, work must be performed. For example, in

a factory, the product must be manufactured; in a retail store, the customer’s need must
be satisfied.
2. Management of People: Recently a lot of attention has been given to the ‘human
factor’ in managing the business. Human forces are employed, they need to be unified,
coordinated, welded into a team effort and directed towards a given purpose. In this
lies the challenging task of management.
3. Management of Operations: Every organization has some products or service that it
must supply in order to exist. Through operations process, these products are
manufactured. To manage these operations, managers ensure the flow of input
materials, labour, technology and equipments regularly. This is inextricably
interwoven with their daily task.
4. Management of Change: Change is an inevitable feature of organizational life every
organization operates under the conditions of continuous change. Good mangers
exhibit a rational response to changing environment. Mangers who undertake
appropriate changes at the right time achieve success.
5. Management of Time: It can be noted that ‘time dimension’ is ever-present is every
management problem, every decision and every action. Thus, mangers must make
efforts to administer the things within time. They must be conscious of the time
element.
6. Strategy Formulation and Action: In this age of competitive environment, managers
have to take decisions and actions that determine the long-run performance of a
company. To maintain the lead in fast-paced industry and global markets, strategy
formulation and implementation has become an important function of mangers.
7. Making Work Productive and the Worker Achieving: According to drucker, the
next task of managers is to make work productive and the worker achieving. He says
that business enterprise has only one true resource: man. Manager gets his work done
by making human resources productive.
8 Managing Social Impacts and Social Responsibilities: The another challenging task
of managers, according to drunker, is managing social impacts and the social
responsibilities of the enterprise. Drucker says that none of our institutions exist.

IMPORTANCE OF MANAGEMENT

Management is a must for every enterprise. The existence of management ensures proper
functioning and running of an enterprise. Management can plan the activities to achieve the
objectives and utilize the available resources at minimum cost. Every business needs a
direction. This direction is given by the management. The resources of production are
converted into production. The resources will remain as resources in the absence of
management. The conversion process is performed through the coordination of management.
The significance or importance of management is briefly explained below:

1. Achievement of group goals: A human group consists of several persons, each

specializing in doing a part of the total task. Each person may be working efficiently,
but the group as a whole cannot realize its objectives unless there is mutual cooperation and
coordination among the members of the group. management creates team-work and
coordination in the group. He reconciles the objectives of the group with those of its members
so that each one of them is motivated to make his best contribution towards the
accomplishment of group goals. Managers provide inspiring leadership to keep the members
of the group working hard.

2. Optimum utilization of resources: Managers forecast the need formaterials,

machinery, money and manpower. They ensure that the organisation has adequate
resources and at the same time does not have idle resources. They create and maintain
an environment conducive to highest productivity. Managers make sure that workers
know their jobs well and use the most efficient methods of work. They provide
training and guidance to employeers so that they can make the best use of the
available resources.

3. Minimisation of cost: In the modern era of cut-throat competitionno business can

succeed unless it is able to supply the required goods and services at the lowest
possible cost per unit. Manage-ment directs day-to-day operations in such a manner
that all wastage and extravagance are avoided. By reducing costs and improving
efficiency, managers enable an enterprise to be com-petent to face competitors and
earn profits.

4. Survival and growth: Modern business operates in a rapidlychanging environment.

An enterprise has to adapt itself to the changing demands of the market and society.
Management keeps in touch with the existing business environment and draws its
predictions about the trends in future. It takes steps in advance to meet the challenges
of changing environment. Changes in business environment create risks as well as
opportunities. Managers enable the enterprise to minimise the risks and maximise the
benefits of opportunities. In this way, managers facilitate the continuity and prosperity
of business.

5. Generation of employment: By setting up and expanding business enterprises,

managers create jobs for the people. People earn their livelihood by working in these
organisations. Managers also create such an environment that people working in
enterprise can get job satisfaction and happiness. In this way managers help to satisfy
the economic and social needs of the employees.

6. Effective utilization of business: There are seven M’s in the business. These are said
to be man, money, materials, machines, methods, markets and management of
information & time. Management is the topmost of all other ‘Ms’. Management has
control over other remaining ‘Ms’.
7. Effective functioning of business: Ability, experience, mutual understanding, co-
ordination, motivation and supervision are some of the factors responsible for the
effective functioning of business. Management makes sure that the abilities of workers
are properly used and co-operation is obtained with the help of mutual understanding.
Besides, management can know the expectation of workers and the expectation is
fulfilled through motivation techniques.

8. Sound organization structure: Management lays down the foundation for sound
organization structure. Sound organization structure clearly defines the authority and
responsibility relationship-who is responsible to whom, who will command whom
and who is responsible for what. Care is taken in appointing qualified persons to the
right job by the management.

9. Development of the nation: Efficient management is equallyimportant at the national

level. Management is the most crucial factor in economic and social development. The
development of a country largely depends on the quality of the management of its
resources. Capital investment and import of technical know-how cannot lead to
economic growth unless wealth producing resources are managed efficiently. By
producing wealth, management increases the national income and the living standards
of people. That is why management is regarded as a key to the economic growth of a
country.
 Co-operatives Meaning:
Co-operatives or co-ops are associations of people with common social, cultural, and economic goals
and needs. They are autonomous organizations that function democratically. The common types of co-ops
present worldwide include housing, consumer, and agricultural co-operatives. Most co-ops are business
enterprises, and the rest are people-centered organizations.

Co-operatives are more productive and often have more success than other businesses. This is because
they form by bringing together people, especially those who belong to the same profession. Also, most
co-operatives address social concerns and become more inclusive – they encourage women’s
participation, support LGBTQIA+ communities – and are overall progressive.

 Co-operatives are self-governing institutions formed by people with common social, cultural, and
economic interests, often intending to address a specific issue.
 It brings together people, functions like a normal legal entity, and even conducts business.
 Most co-ops follow the seven Rochdale principles in their due course. The principles are laid down by the
Rochdale Society of Equitable Pioneers, England.
 Co-ops are extremely democratic organizations. The members exercise their voting rights to elect their
leaders and make important decisions.

WHAT IS COOPERATIVE?

A voluntary association where a minimum of 10 people come together to work and achieve a common
goal.

COOPERATIVE MANAGEMENT DEFINITION

Cooperative management is an effective and purposeful relationship between management in the meaning
of cooperation between individual, relatively independent organisations or individual with the aim to
increase their competitiveness.

In other words, cooperative management, also co-management, tries to achieve more effective and
equitable systems of resource management. Representatives of user groups, the scientific community,
and government agencies should share knowledge, power, and responsibility in cooperative
management,
DIFFERENCE BETWEEN COOPERATIVES AND CORPORATIONS

1. A corporation exists as a legal entity where it can sue or get sued while a cooperative does not.
2. A corporation has limited liability while a cooperative does not.
3. A corporation must deliver returns on investments while this is not a must for a cooperative.
4. A corporation is run by centralized management under a board while a cooperative is run by the
members.
5. Shares of a corporation are transferable while those of a cooperative is not.

COOPERATIVE SOCIETY

A cooperative is “an autonomous association of persons united voluntarily to meet their common
economic, social, and cultural needs and aspirations through a jointly-owned and democratically
controlled enterprise”.

OBJECTIVES OF COOPERATIVE MANAGEMENT

1. To achieve common goals,

2. To utilize resources,

3. To fulfil social obligations,

4. To maintain economic growth,

5. To ensure the survival of a cooperative society in a fast-changing environment,

6. To improve the personality and calibre of people to raise their efficiency and productivity,

7. To meet the challenge of change.

7 PRINCIPALS OF CO-OPERATIVE MANAGEMENT

1. Voluntary and open membership:

One of the cardinal principles of co-operative is that the membership of a cooperative society should
be voluntary and open. Hoylake defines “a cooperative society as a voluntary concept, with equitable
participation and control among all concerned in any enterprise.”So it may conveniently be said that
the voluntary membership means that the
members of a co-operative society must join it voluntarily without being coerced.
Voluntary membership not only strengthens individual responsibilities but it differentiates
cooperation from the state scheme of social reforms.

2. Democratic member control:

Paul Lambert remarked, “Democracy is the cardinal principle. It distinguishes co-operative
business most sharply from capitalist business and it can be applied uniformly to any type of co-
operative.”It is obvious from the above that one of the distinctive features of co-operative works is
that members select from amongst them their own leaders, whom they
can also remove. The principle, “one member, one vote” is followed by the cooperative
society. And this principle eliminates the possibility of capturing control
 by a few hands by virtue of shareholdings, i.e. control is justified on the
ground of treating members as human beings and not as subscribers of capital.

3. Members economic participation:

Excess of income over expenditure for a financial year is called surplus of that year. If a co-
operative society decides to distribute such surplus, the distribution must be on the basis of members’
dealing with the society and not on that of the number of shares held as in the case of capitalist
organization. Calvert held, “The resulting profit is not regarded as an overcharge which belongs to those
from whom it has been derived and to whom it should be returned.”Capital is essential for every
establishment and it should always be welcomed.
But capital should act as a servant rather than becoming a master. Co-operative
recognizes that capital is entitled to a fair interest, but it refuses to admit any
other right attaching to its possession or claimed by its owner and more especially
the claim to a controlling voice in the enterprise. The ICA commission noted, “Share capital shall receive
a strictly limited rate of interest if any. There is no co-operative principle which obliges interest to be
paid. The principle is that if interest is paid on share capital, the rate should be limited and fixed on the
ground that the supplier of capital is not equitably entitled to share in savings, surplus or profit.”

4. Autonomy and independence:

Cooperatives are autonomous, self-help organisations controlled by their members. If they enter
into agreements with other organisations, including governments, or raise capital from external
sources, they do so on terms that ensure democratic control by their members and maintain their
cooperative autonomy.

5. Cooperate among cooperatives:

The principle of co-operation among co-operatives is essential for the survival and maintenance of
the growth of the co-operative movement. ICA Commission, 1966, stated, “All cooperative
organizations in order to best serve the interest of their members and their communities, shall
actively co-operate in every practical way with other co-operatives at local, national and
international levels.”

6. Cooperative education:
The ICA rules provide that “all co-operative societies shall make provisions for the education of
their members, officers and employees and the general public, in the principles and techniques of
co-operation both economic and democratic.”
7. Concern for community:
Cooperatives work for the sustainable development of their communities through policies
approved by their members.

Co-operatives are usually governed by the seven Rochdale principles put forth by the Rochdale Society of
Equitable Pioneers, England, in 1844.

1. Voluntary and open organizations – Volunteers form co-ops with membership open to all considered
eligible. It functions beyond gender, racial, and social stereotypes.
2. Democratic member control – Co-ops are extremely democratic organizations that elect members to
govern. Therefore, they make most decisions by considering the opinion of all the members.
3. Member economic participation – Since co-ops are autonomous organizations, they are funded
internally by the members. Therefore, members contribute to financing the co-op activities. Any profit
made by the co-op is first set aside for its operations and then divided between the members.
4. Autonomy and independence – The very word ‘autonomy’ defines co-ops. They are self-governed and
not answerable to other associations except the law.
5. Education, Training, and Information – Co-ops offer education and training to their members to
enhance their overall capability and skills. They also disseminate information within and with their
partner organizations.
6. Co-operation among co-operatives – Co-ops work in partnership with other co-ops locally, nationally,
and internationally with similar or complementary interests. This can present a win-win situation for all
the co-ops involved.
7. Concern for the community – Co-ops usually address important social and economic issues
like unemployment, racial or gender discrimination, environmental and sustainability concerns, etc.

Organisation Structure
TYPES OF COOPERATIVES:

1.Consumer Cooperative: These businesses are owned and governed by consumers of the particular area
for their mutual benefit. Their view is to provide daily necessary commodities at an optimum price.
Rather than earning a pecuniary profit, their aim is towards providing service to the consumers.

2. Credit Cooperative: Credit unions are generally member-owned financial cooperatives. Their
principle is of people helping people. They provide credit and financial services to the members at
competitive prices. Each and every depositor has the right to become a member. Members attend the
annual meeting and are given rights to elect a board of directors.
3. Farming Cooperative: An agricultural cooperative, also known as a farmers’ co-op, is
a cooperative where farmers pool their resources in certain areas of activity. …
Supply cooperatives supply their members with inputs for agricultural production, including seeds,
fertilizers, fuel, and machinery services.

4. Marketing Cooperative: With the aim of helping small producers in selling their products, these
societies are established. The producers who wish to obtain reasonable prices for their output are the
members of this society.

For securing a favourable market for the products they eliminate the middlemen and improve the
competitive position of its members. It collects the output of individual members. Various marketing
functions like transportation, packaging, warehousing, etc are performed by the cooperative societies to
sell the product at the best possible price.

6.Housing Cooperative: To help people with limited income to construct houses at reasonable costs,
these societies are established. Their aim is to solve the housing problems of the members. A member of
this society aims to procure the residential house at a lower cost.

They construct the houses and give the option to members to pay in instalments to purchase the house.
They construct flats or provide plots to members on which the members themselves can construct the
houses as per their choice.

6.Producer Cooperative: To protect the interest of small producers, these societies are set up. The co-
operative society members may be farmers, landowners, owners of the fishing operations. To increase the
marketing possibilities and production efficiency, producers decide to work together or as separate
entities.

They perform several activities like processing, marketing & distributing their own products. This helps
in lower costs and strains in each area with a mutual benefit to each producer.

7.Healthcare Cooperative: Common Ground Healthcare Cooperative provides health insurance to more
than 25,000 individuals and family members. Like many insurance companies, Common Ground
Healthcare Cooperative’s product offerings include PPO plans.

8. Worker co-operatives – These associations form by people who often belong to the same profession.
They train, educate, and prepare the members to get employment. Occasionally, they also address some
issues faced by the people working in the same field.

9. Purchasing co-operatives – Those co-ops form by businesses that partner for common buying
interests and requirements. For example, firms that sell flour can demand a wheat price reduction.

10. Producer co-operatives – Producers of similar goods and services, form associations known as
producer co-ops. Agricultural co-operatives are an excellent example of this category. For instance,
sellers of wheat can together demand that its price be increased.

11. Financial co-operatives – In this type, associations of people provide financial services like banking
and insurance. Credit unions are a good example. There are a large number of co-operative banks
worldwide, providing critical financial assistance to those who need it.

These are the most common types of co-ops. Some other less common types include multi-stakeholder
co-ops, which consist of the different stakeholders of an organization, like employees, shareholders,
partners, etc. Another type is the federal co-op, in which many co-ops form a secondary association.
 CO-OPERATIVE MANAGEMENT
Co-operative Movement in India has grown up into a huge network of primary, central,
state and national as federal organisations covering the various facets of the economy viz, Banking,
Agriculture, Supply, Distribution, Processing, Marketing, Housing, Transportation and Small Scale
Industry. It means that it covered the entire sectors of the economy such as Primary, Secondary, and
tertiary. But a notable feature is that most of the cooperatives in India are not efficiently working
thereby they incur losses and have not achieved their goals. Lack of member awareness, vigilance and
solidarity and the lack of professional management are some of the causes leading to dormancy or
inefficiency of their performance. Cooperatives alone conform to the requirements of the new social
order based on the values of socialism and democracy which is envisaged in the constitution of India.

CONCEPT OF CO-OPERATIVE MANAGEMENT

Cooperation means living, thinking and working together. It denotes a special method of doing
business. In reality, cooperation is as old as man itself. Eg. Formation of social groups is the outcome
of reflexive cooperation. Even in animal we can see that the life of ants, bees, wasps, lionsetc provides
the best example of instinctive cooperation. The practice of the principle of cooperation contributed
to the development of human race more than any other biological and social factor. Right from the
hunting age up to the present day the progress and development of human beings, in all spheres,
social, economic, religious and political is marked by a sense of thinking, working and living together.
Cooperation is thus, older than the cooperative movement. The cooperative movement is only
one example of human cooperation among others, eg., joint stock companies, cartels, trusts, etc. The
term cooperation thus connotes several meanings and it is difficult to convey the correct meaning of
cooperation, in its technical sense.
Cooperation, thus, is a movement whose theory has evolved with times and experiences gained
by the cooperators. There is no rigidity either in the concept or in the practice. It is the objective, ideal
or the purpose which is to be achieved. The cooperation movement existed because of its ideals and it
is from the pursuits of these ideals that its principles are derived and characteristic features
determined.

DEFINITIONS:
According to one of the school of thoughts deriving its strengths from Schulze-Delitzsch,
Hass, Raifeisen and Horrace Plunkett, ‘A cooperative institution is a voluntary association of
independent economic units, organized, capitalized and run by, and for its members, providing and/or
marketing goods and services on cost-to-cost basis to their members. The chief aim underlying the
organisation of such institutions is the advancement of economic interests of
members and protection and maintenance of the economic independence of small producers by
making up the economic deficiency through pooling of resources and thus bringing to them the
economies of large-scale production.’
The second school of thought drawing inspiration from growing socialis of the 19th century
and from men like Robert Owen, Saint Simon, Charles Fourier, Louis Blanc, Carles Guide, Ferdinand
Lassalle etc., believes that ‘cooperative institution should not be merely contented with improving the
economic position of the members witin the existing framework but also aims at eliminating the
competitive, capitalistic system and replacing it by one, which is based on mutual cooperation.’
The third and last school believes that cooperative movement can be an important instrument
in furthering the socialist progress. This is based on Marxist-Leninist theories that, cooperatives can
help the transformation from capitalism and finally to communism. Accordingly, a cooperative
society has been defined as an “economic and social organisation of the working people, serving not
only interest of the members, but also social progress,” which promotes safeguards and realizes the
interests and aspirations of the working people”.
 In the words of H. Calvert, cooperation is, “a form of organisation wherein persons voluntarily
associate together as human beings on a basis of equality for the promotion of economic interest of
themselves”

According to Herrick, it is “the act of poor persons voluntarily united for utilizing reciprocally
their own forces, resources or both, under their mutual management to their common profit or loss”.
In the words of Horrace Plunkett, it is nothing but “self-help made effective by
organisation.”
The International Labour Organisation has defined cooperative society as, “an association of
persons varying in number, who are grappling with the same economic difficulties and who,
voluntarily associate on a basis of equal rights and obligations, endeavor to solve those difficulties,
mainly by conducting at their own risk an undertaking to which they have transferred one or more of
such of their economic functions as correspond to their common needs and by utilizing this
undertaking in joint cooperation for their common material and moral benefits”.

UNIQUENESS OF COOPERATION
1. Co-operation is based on the principal of self-help through mutual help, abolition of profits
and service above self.
2. In cooperation, individual freedom occupies a very important position.
3. The principles of ‘voluntary association’ and ‘democratic management’ are the guidelines
for the cooperative movement.
4. Cooperation eliminates the employers and provides independence to the workers.
5. A cooperative society is a union of weak and needy individuals who have equal rights and
has one vote irrespective of the number of shares held by him.

Objectives of co-operative management

It is easier to understand the concept of the cooperative by knowing its specific objectives. They can be
summed as follows:
1) They aim to provide goods and services.
2) They aim to eliminate the unnecessary profits of middlemen in trade and commerce.
3) They seek to prevent the exploitation of the weaker members of society.
4) They aim to protect the rights of people both as producers and consumers.
5) They promote mutual understanding and education among their members and people in general.

Functions of Co-operative management

1. Provide the link between workers and the executive board

2. Promote collaborative entrepreneurship
3. Enable shared productivity
4. Facilitate decision-making processes
5. Design creative problem-solving mechanisms
6. Oversee the voting system
7. Deliver on the agreed projects
8. Implement the policies set by the board of directors
9. Co-ordinate work activities with the employee/members
10. Oversee the finance accountability
 Four Pillars of Cooperative Governance

Cooperative governance is the act of steering cooperatively owned enterprises toward economic, social,
and cultural success. It consists of answering key questions, defining roles and responsibilities, and
establishing processes for setting expectations and ensuring accountability.
A model is a way of framing so that the parts and processes make sense. Our Four Pillars model is a not
about changing systems but is a new way of making sense of cooperative governance. We think it
addresses current gaps in strengthening owner relationships and democratic practices that are not clearly
part of other business or governance models. The Four Pillars of Cooperative Governance are:

Teaming: successfully working together to achieve common purpose.

Accountable Empowerment: successfully empowering people while at the same time holding them
accountable for the power granted.
Strategic Leadership: successfully articulating the cooperative’s direction/purpose and setting up the
organization for movement in this direction.
Democracy: successfully practicing, protecting, promoting, and perpetuating our healthy democracies.

Cooperative Governance

Governance in cooperatives is as important as in any other institutions, probably more.

Values of Cooperation
 Self-help means that persons should help themselves by coming together and should not depend on others
beyond the co-operative. Co-operators believe that the development of a person can best take place in
association with others.
 Self-responsibility means that the members themselves assume responsibility for their co-operatives --
for its formation, continuation and future success.
 Democracy means that each member has an equal opportunity to decide how the co-operative should be
run and to frame policies to achieve its objectives. This is the principle of one-member with one-vote.
 Equality means that everyone in a co-operative has an equal opportunity with respect to the right to
participate, the right to information, the right to be heard and the right to be involved in decision-making.
 Equity means a member is rewarded for her/his participation in the co-operative. The more s/he uses the
services of the co-operative, the higher the return s/he will get.
 Solidarity means that a co-operative is not merely an association of members. Members should be
treated as fairly as possible. The each member of the co-operative is responsible for the collective interest
of all its members. This value also means that co-operators and co-operatives stand together for the
development of the co-operative movement.
 The values of honesty, openness, social responsibility and caring for others are fundamental ethical
values. These are values, which members of any community should practice. They have been practiced
for ages and thus find a central place in the co-operative movement.

Principles of Cooperation
Voluntary and open membership:
 Co-operatives are voluntary organisations
 Open to all persons who are:
1. Able to use their services
2. Willing to accept the responsibilities of membership
3. Without gender, social, racial, political or religious discrimination.

Democratic Member control

 Co-operatives are democratic organizations controlled by their members, who actively participate in
setting their policies and making decisions.
 Elected representatives are accountable to the membership.
 In primary co-operatives, members have equal voting rights (one member - one vote)
 Co-operatives at other levels are also organised in a democratic manner.

Member economic participation:

 Members contribute to the capital through equity and democratically control
 Limited compensation to equity
 Surpluses may be allocated:
1. as reserves to develop their Co-operative
2. to distribute Patronage
3. to any other activity approved by the members that benefits the members.

Autonomy and independence:

 Co-operatives are autonomous, self-help organisations controlled by their members.
 If co-operatives enter into agreements with other organisations, including governments, or raise capital
from external sources, they should do so on terms that ensure democratic control by members and
maintain their autonomy.

Education, training and information:

Co-operatives provide education and training for their members, elected representatives, managers and
employees so that, they contribute effectively to the development of their Co-operatives. Inform the
general public - particularly the young people and opinion leaders - about the nature and benefit of Co-
operation.

Cooperation among co-operatives:

Co-operatives serve their members most effectively and strengthen the co-operative movement by
working together through

 Local.
 National.
 Regional &
 International structures.
Concern for community: Co-operatives work for the sustainable development of their community
through policies approved by their members.
 MANAGEMENT

Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and
Markets. They use these resources for achieving the objectives of the organisation such as high sales,
maximum profits, business expansion, etc.

According to Harold Koontz,

"Management is the art of getting things done through and with people in formally organised groups."

Harold Koontz gave this definition of management in his book "The Management Theory Jungle".
According to Henri Fayol,
"To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control."

Henri Fayol gave this definition of management in his book "Industrial and General Administration".

According to Peter Drucker,

"Management is a multi-purpose organ that manages business and manages managers and manages
workers and work."

This definition of management was given by Peter Drucker in his book "The Principles of Management".
According to Mary Parker Follet,
"Management is the art of getting things done through people."

Meaning of Management
According to Theo Heimann, management has three different meanings, viz.,
1. Management as a Noun : refers to a Group of Managers.
2. Management as a Process : refers to the Functions of Management i.e. Planning, Organising,
Directing, Controlling, etc.
3. Management as a Discipline : refers to the Subject of Management.
Management is an individual or a group of individuals that accept responsibilities to run an organisation.
They Plan, Organise, Direct and Control all the essential activities of the organisation. Management does
not do the work themselves. They motivate others to do the work and co-ordinate (i.e. bring together) all
the work for achieving the objectives of the organisation.

Features of Management
 The nature, main characteristics or features of management:
1. Continuous and never ending process.
2. Getting things done through people.
3. Result oriented science and art.
4. Multidisciplinary in nature.
5. A group and not an individual activity.
6. Follows established principles or rules.
7. Aided but not replaced by computers.
8. Situational in nature.
9. Need not be an ownership.
10. Both an art and science.
11. Management is all pervasive.
12. Management is intangible.
13. Uses a professional approach in work.
14. Dynamic in nature.
Now let's briefly discuss each feature of management.

1. Continuous and never ending process

Management is a Process. It includes four main functions, viz., Planning, Organising, Directing and
Controlling. The manager has to Plan and Organise all the activities. He had to give proper Directions to
his subordinates. He also has to Control all the activities. The manager has to perform these functions
continuously. Therefore, management is a continuous and never-ending process.

2. Getting things done through people

The managers do not do the work themselves. They get the work done through the workers. The workers
should not be treated like slaves. They should not be tricked, threatened or forced to do the work. A
favorable work environment should be created and maintained.

3. Result oriented science and art

Management is result oriented because it gives a lot of importance to "Results". Examples of Results like,
increase in market share, increase in profits, etc. Management always wants to get the best results at all
times.

4. Multidisciplinary in nature
Management has to get the work done through people. It has to manage people. This is a very difficult job
because different people have different emotions, feelings, aspirations, etc. Similarly, the same person
may have different emotions at different times. So, management is a very complex job. Therefore,
management uses knowledge from many different subjects such as Economics, Information Technology,
Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature.

5. A group and not an individual activity

Management is not an individual activity. It is a group activity. It uses group (employees) efforts to
achieve group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers).
Nowadays, importance is given to the team (group) and not to individuals.

6. Follows established principles or rules

Management follows established principles, such as division of work, discipline, unity of command, etc.
These principles help to prevent and solve the problems in the organization.

7. Aided but not replaced by computers

Nowadays, all managers use computers. Computers help managers to make accurate decisions. However,
computers can only help management. Computers cannot replace management. This is because
management takes final responsibility. Thus Management is aided (helped) but not replaced by
computers.

8. Situational in nature
Management makes plans, policies, and decisions according to the situation. It changes its style according
to the situation. It uses different plans, policies, decisions, and styles for different situations.
The manager first studies the full present situation. Then he draws conclusions about the situation. Then
he makes plans, decisions, etc., which are best for the present situation. This is
called Situational Management.
9. Need not be an ownership
In small organizations, management and ownership are one and the same. However, in large
organizations, management is separate from ownership. The managers are highly qualified professionals
who are hired from outside. The owners are the shareholders of the company.

10. Both an art and science

Management is result-oriented. Therefore, it is an Art. Management conducts continuous research. Thus,
it is also a Science.

11. Management is all pervasive

Management is necessary for running a business. It is also essential for running a business, educational,
charitable and religious institutions. Management is a must for all activities, and therefore, it is all
pervasive.

12. Management is intangible

Management is intangible, i.e. it cannot be seen and touched, but it can be felt and realized by its results.
The success or failure of management can be judged only by its results. If there is good discipline, good
productivity, good profits, etc., then the management is successful and vice-versa.

13. Uses a professional approach in work

Managers use a professional approach to get the work done from their subordinates. They delegate (i.e.
give) authority to their subordinates. They ask their subordinates to give suggestions for improving their
work. They also encourage subordinates to take the initiative. Initiative means to do the right thing at the
right time without being guided or helped by the superior.

14. Dynamic in nature

Management is dynamic in nature. That is, management is creative and innovative. An organization will
survive and succeed only if it is dynamic. It must continuously bring in new and creative ideas, new
products, new product features, new ads, new marketing techniques, etc.

MANAGEMENT FUNCTIONS

Overall, management embodies four functions:-

1. Planning
2. Organizing
3. Directing/Motivating
4. Controlling
1. Planning: Planning determines where the organization is going and how it will get there. It
sets organizational objectives and goals, forecasts the environment in which objectives must be
accomplished, and determines the approach by which objectives and goals are to be
accomplished. Planning is used to determine a policy and the procedures for putting it into
effect. Planning usually consider several alternatives. Each should be judged on the basis of its
economic or competitive effect and accompanying problems. Also, it must be consistent with
cooperative principles and the association’s objectives. Planning helps a manager shape the
 future of the organization rather than being caught in an endless trap of reacting only to current
crises or problems.
2. Organizing: Organizing is concerned with determining the specific activities needed to
accomplish the planned objectives and goals; grouping the activities into a logical pattern,
framework, or structure; assigning the activities to specific positions and people; and providing
means for coordinating the efforts of individuals and groups. Organizing is a bridge connecting
the planned objectives to specific projects for accomplishing these objectives.
3. Directing: Directing through motivation concerns the people side of the organization.
Cooperatives are people-driven organizations, from the standpoint of both employees and
members. Managers must have leadership skills and be effective communicators. The
manager’s ability to influence members through leadership will help determine the extent to
which both individuals and the entire organization accomplish their goals.
4. Controlling: A manager spends up to 95 percent of the time communicating. Good
communication is essential to coordinating the organization’s human and physical elements
into an efficient and effective working unit. In controlling, management monitors the progress
of planned activities. If progress is lagging, necessary adjustments are made. Controlling is the
check up part of a manager’s job.

The following figures show the management process and the elements involved:

Elements of Management Process

1. Planning: Planning is the primary function of management. It involves determination of a course of
action to achieve desired results/objectives. Planning is the starting point of management process and
all other functions of management are related to and dependent on planning function. Planning is the
key to success, stability and prosperity in business. It acts as a tool for solving the problems of a
business unit. Planning plays a pivotal role in business management It helps to visualize the future
problems and keeps management ready with possible solutions.

2. Organising: Organising is next to planning. It means to bring the resources (men, materials, machines,
etc.) together and use them properly for achieving the objectives. Organisation is a process as well as it
is a structure. Organising means arranging ways and means for the execution of a business plan. It
provides suitable administrative structure and facilitates execution of proposed plan. Organising
involves different aspects such as departmentation, span of control delegation of authority,
 establishment of superior-subordinate relationship and provision of mechanism for co-ordination of
various business activities.

3. Staffing: Staffing refers to manpower required for the execution of a business plan. Staffing, as
managerial function, involves recruitment, selection, appraisal, remuneration and development of
managerial personnel. The need of staffing arises in the initial period and also from time to time for
replacement and also along with the expansion and diversification of business activities. Every business
unit needs efficient, stable and cooperative staff for the management of business activities. Manpower
is the most important asset of a business unit. In many organisations, manpower planning and
development activities are entrusted to personnel manager or HRD manager. 'Right man for the right
job' is the basic principle in staffing.

4. Directing (Leading): Directing as a managerial function, deals with guiding and instructing people to
do the work in the right manner. Directing/leading is the responsibility of managers at all levels. They
have to work as leaders of their subordinates. Clear plans and sound organisation set the stage but it
requires a manager to direct and lead his men for achieving the objectives. Directing function is quite
comprehensive. It involves Directing as well as raising the morale of subordinates. It also involves
communicating, leading and motivating. Leadership is essential on the part of managers for achieving
organisational objectives.

5. Coordinating: Effective coordination and also integration of activities of different departments are
essential for orderly working of an Organisation. This suggests the importance of coordinating as
management function. A manager must coordinate the work for which he is accountable. Co-ordination
is rightly treated as the essence of management. It may be treated as an independent function or as a
part of organisms function. Coordination is essential at all levels of management. It gives one clear-cut
direction to the activities of individuals and departments. It also avoids misdirection and wastages and
brings unity of action in the Organisation. Co-ordination will not come automatically or on its own
Special efforts are necessary on the part of managers for achieving such coordination.

6. Controlling: Controlling is an important function of management. It is necessary in the case of

individuals and departments so as to avoid wrong actions and activities. Controlling involves three
broad aspects: (a) establishing standards of performance, (b) measuring work in progress and
interpreting results achieved, and (c) taking corrective actions, if required. Business plans do not give
positive results automatically. Managers have to exercise effective control in order to bring success to a
business plan. Control is closely linked with other managerial functions. It is rightly treated as the soul
of management process. It is true that without planning there will be nothing to control It is equally true
that without control planning will be only an academic exercise Controlling is a continuous activity of a
supervisory nature.

7. Motivating: Motivating is one managerial function in which a manager motivates his men to give their
best to the Organisation. It means to encourage people to take more interest and initiative in the work
assigned. Organisations prosper when the employees are motivated through special efforts including
provision of facilities and incentives. Motivation is actually inspiring and encouraging people to work
more and contribute more to achieve organisational objectives. It is a psychological process of great
significance.

8. Communicating: Communication (written or oral) is necessary for the exchange of facts, opinions,
ideas and information between individual’s and departments. In an organisation, communication is
useful for giving information, guidance and instructions. Managers should be good communicators.
They have to use major portion of their time on communication in order to direct, motivate and co-
 ordinate activities of their subordinates. People think and act collectively through communication.
According to Louis Allen, "Communication involves a systematic and continuing process of telling,
listening and understanding".

Importance of Management
1. Optimum utilisation of resources: Management facilitates optimum utilisation of available human and
physical resources, which leads to progress and prosperity of a business enterprise. Even wastages of
all types are eliminated or minimized.
2. Competitive strength: Management develops competitive strength in an enterprise. This enables an
enterprise to develop and expand its assets and profits.
3. Cordial industrial relation: Management develops cordial industrial relations, ensures better life and
welfare to employees and raises their morale through suitable incentives.
4. Motivation of employees: It motivates employees to take more interest and initiatives in the work
assigned and contribute for raising productivity and profitability of the enterprise.
5. Introduction of new techniques: Management facilitates the introduction of new machines and new
methods in the conduct of business activities. It also brings useful technological developments and
innovations in the management of business activities.
6. Effective management: Society gets the benefits of efficient management in terms of industrial
development, justice to different social groups, consumer satisfaction and welfare and proper discharge
of social responsibilities.
7. Expansion of business: Expansion, growth and diversification of a business unit are possible through
efficient management.
8. Brings stability and prosperity: Efficient management brings success, stability and prosperity to a
business enterprise through cooperation among employees.
9. Develops team spirit: Management develops team spirit and raises overall efficiency of a business
enterprise.
10. Ensures effective use of managers: Management ensures effective use of managers so that the benefits
of their experience, skills and maturity are available to the enterprise.
11. Ensures smooth functioning: Management ensures smooth, orderly and continues functioning of an
enterprise over a long period. It also raises the efficiency, productivity and profitability of an enterprise.
12. Reduces turnover and absenteeism: Efficient management reduces labour turnover and absenteeism and
ensures continuity in the business activities and operations.
13. Creates sound organisation: A dynamic and progressive management guarantees development of sound
Organisation, which can face any situation - favorable or unfavorable with ease and confidence.

RESOURCES TO MANAGE
Like any other business, three major types of resources must be managed in a cooperative -
people, capital, and facilities.

People
The most important resource in a cooperative is people. The success of all phases of the
business depends on competent personnel working together smoothly and efficiently. In a 1994 study
conducted by Janice Dresbach, Ohio State University, cooperative mangers said training was highly
important in the areas of improving customer relations, educating members about the cooperative way
of doing business, working effectively with a board of directors, identifying member needs. In an
earlier study, managers cited the ability to deal effectively with people was the qualification most
important to the success of the best manager they had ever known. Ability to size up a situation and
act accordingly was ranked next in importance. Qualifications considered least important were ability
to keep pressure on until the job is done and technical knowledge of supplies handled. Personnel
 management thus is a critical phase of business management. It begins with the selection of
personnel, followed by training and evaluation. Much depends on personnel
supervisors who must plan the work, delegate responsibilities and authority, analyze jobs, and set
performance standards, as well as train workers, review performance, set up grievance procedures,
and provide leadership. And proper compensation, including fringe benefits and incentives, is
important in personnel management. Management should also motivate and reward employees. This
coaching function involves seeking suggestions from staff, creating an environment where employees
can be innovative, establishing goals, inspiring and recognizing good performance, and developing
teamwork and an esprit de corps among employees.
In a cooperative, management also must strongly emphasize member relations because
ownership, control, and patronage all are member functions. This involves adequate two-way
communication and information from management to members and from members to management.
Continuous efforts are also needed to obtain new members to maintain the organization and an
adequate volume of products or services. Maintaining or improving good member-patron relations
involves providing good, honest service and helpful information about the cooperative and the
products it handles. It means keeping members informed about policies, operating practices, and
financial requirements; and pointing out their responsibilities for making the cooperative successful.
Financial management involves: (1) considering funds available and source for additional
capital; (2) allocating funds among assets to be financed; and (3) ensuring that all aspects of Financing
are dealt with in a manner consistent with sound business practices and cooperative principles.

Facilities
Building and equipment can represent a large proportion of a cooperative’s assets. Therefore,
important management considerations include scheduled maintenance; rearrangement, remodeling,
and replacement to improve operating efficiency; daily operating cost records; preventive
maintenance programs for rolling stock such as delivery trucks; grounds maintenance and pest
control; adequate insurance; disposal of unproductive assets; and observance of safety, health, and
other environmental regulations.

DEMOCRACY
Democracy is a form of government in which all eligible citizens participate equally— either
directly or through elected representatives—in the proposal, development, and creation of laws. It
encompasses social, economic and cultural conditions that enable the free and equal practice of
political self-determination.

Direct Democracy:
Direct Democracy is that form of government in which people directly participate in the affairs
of the State. In this system, public opinion is expressed directly in Assemblies meetings. All the adult
citizens have the right to participate in the meetings of the Assembly where all the laws are passed,
taxes are assessed, and appointments to execute, the decisions taken in the Assemblyare made.
Since this system is possible only in those states where the population is small and it is
possible for all the citizens to participate directly in the affairs of the state, nowadays this system
exists only in a few cantons of Switzerland and some states in U.S.A.
Indirect Democracy:
Since the modern states are much larger in size and population, it is not possible for all the
citizens to participate directly in the affairs of the state; indirect democracy has been established in
almost all the modern states. Under this system, people elect their representatives for a period who run
the administration.
 If they do not work according to the wishes of the people and for their welfare, they are
changed at the time of next elections. People do not directly take part in the affairs of the state.
They elect their representatives who conduct the affairs of the state.
Indirect democracy exists in India, England, U.S.A. and France etc.

Democracy in Cooperatives
Aside from the public sphere, similar democratic principles and mechanisms of voting and
representation have been used to govern other kinds of groups. Many non-governmental organisations
decide policy and leadership by voting. Most trade unions and cooperatives are governed by
democratic elections. Corporations are controlled by shareholders on the principle of one share, one
vote.
Cooperatives are democratic enterprises where both ownership and decision-making power are
democratically shared. As a result, they keep money and power in the hands of the community. Each
member has a share of the organization, which makes them co-owners of the cooperative. When
decisions need to be made that affect the group, each member has one vote to say how the cooperative
is run — a mix of direct democracy and representational structures

Decision Making
A co-operatives’ future will be determined by the goals the members of the cooperatives set
and how effectively they make decisions and solve problems as a group. Establishing common
personal, business and social goals right from the start, and sticking to them, can help this process
immensely. This not only keeps their decisions focused, but also helps to avoid misunderstandings
that can lead to conflict. Then the decision making process is one of identifying the specific goal or
problem to be addressed, gathering the best available information on the options and their outcomes
and risks and making the choice with the best chance of providing an effective solution. Easily said,
but challenging to do!
Within the worker cooperative society, specific decisions are in the hands of the general
assembly. The Cooperative society Acts provide the foundation for this authority by law, however the
cooperative society’s bylaws may also provide that specific policy decisions, such as wage rates,
may require approval by the members’ meeting. Importantly the bylaws of the cooperative society,
which regulate the life of the cooperative society, must be approved by the members and can only be
changed by a meeting of the members.
One of the key legal responsibilities of the members is to elect the board of directors of the
cooperative society. The bylaws will specify the number of directors, their qualification and length of
terms. Directors, by law, are responsible for the affairs of the co-operative. Their duty is always to
make decisions in the best interests of the cooperative society as a whole. The directors, once elected,
in turn elect officers like president, vice-president, secretary and treasurer. These officers of the
cooperative society will have specific duties outlined in the bylaws. In small cooperative societies,
members often serve in more than one capacity and often all members are also directors.
Good collective decisions require well-researched information and good communications
between the board of directors, manager and membership. Cooperative societies may operate
democratically, but you can’t stop in the middle of the workday to discuss every decision which must
be made. The directors are responsible to ensure that an effective operational structure is in place that
it is supported by the members. This may take many forms, depending upon the desires of the
members and on the type of enterprise that the cooperative society operates.
Within most cooperative societies the following structures are usually in place and are the
forum for the following types of decisions.
 ANNUAL GENERAL MEETING (AGM).
1. The board of directors reports to membership, reviewing the past business year and the
year’s financial statements.
2. The board seeks approval of its recommendations for surplus allocation.
3. The Business plan and budgets for the coming year are presented for discussion andapproval.
4. An auditor is appointed.
5. Membership elects a new board.
6. Other membership decisions specified in the bylaws are made.

BOARD OF DIRECTORS MEETING

1. The manager(s) reports to the board, which in turn provides direction to the manager(s).
2. The key function here is for the board to hold those in charge of making decisions on behalf of
the cooperative society accountable for the outcomes of those decisions. This would also
include evaluating the organizational structure used to make these decisions. The
board evaluates the cooperative society’s financial position to determine whether or not the
budgeted objectives are being met and what actions should be taken to improve the situation.
3. The board makes or changes policies as required, or recommends a policy to the
membership if only the membership has the authority in a particular area.
4. Board members discuss long-term goals and strategy and ensure that a good planning
process is in place to guide the cooperative society in the coming year(s).
5. The board approves new members or terminates a person’s membership.

OPERATIONAL MEETINGS
Consultation and decision-making about daily activities takes place between members and
management. These meetings, and who participates, will vary from co-operative to co-operative
depending upon the organizational structures that have been approved by the membership and/or the
board of directors.

COMMITTEES
Sometimes committees are appointed to research issues and make recommendations to help
the board, membership or management make decisions. These committees may be standing
committees such as a finance committee or may be ad hoc committees set up to simply address one
specific issue.

THE DEMOCRATIC STRUCTURE OF THE COOPERATIVE

Within the Cooperatives, specific decisions are in the hands of the general assembly. The Co-
op Acts provide the foundation for this authority by law, however the co-op’s bylaws may also
provide that specific policy decisions, such as wage rates, may require approval by the members’
meeting. Importantly the bylaws of the co-op, which regulate the life of the co-operative, must be
approved by the members and can only be changed by a meeting of the members.
One of the key legal responsibilities of the members is to elect the board of directors of the co-
op. The bylaws will specify the number of directors, their qualification and length of terms. Directors,
by law, are responsible for the affairs of the co-operative. Their duty is always to make decisions in
the best interests of the co-op as a whole. The directors, once elected, in turn elect other officers like
president, vice-president, secretary, and treasurer. These officers of the co- operative society will have
specific duties outlined in the bylaws. In small co-ops, members often serve in more than one capacity
and often all members are also directors.
Good collective decisions require well-researched information and good communications
between the board of directors, manager and membership. Cooperative societies may operate
democratically, but you can’t stop in the middle of the workday to discuss every decision which must
be made. The directors are responsible to ensure that an effective operational structure is in place that
it is supported by the members. This may take many forms, depending upon the desires of the
members and on the type of enterprise that the cooperative society operates.

TYPES OF GENERAL MEETINGS:

1. Inaugural (constituent) General Meeting
I. A cooperative holds this meeting to inaugurate the functioning of the cooperative, to
authorize the list of the founding members, to discuss and adopt the -bylaws and draw up the
regulations of the cooperative, to approve the financial and operational plan for the first
year’s ‘activities and to elect the members of the cooperative’s managerial committee and
other committees.
II. Founding members have no extra rights than other members, except that they participate in
the inaugural general meeting.
III.The inaugural general meeting will adopt by vote the list of founding members present at the
meeting to be full members of the cooperative.
IV. Those who have not attended this inaugural meeting will have to be approved as members
according to the stipulations lay down by the law and the bylaws regarding acceptance of
new members to the cooperative.
V. The inaugural general meeting takes place only once.

2. An Annual General Meeting

I. An annual general meeting convenes once a year on a date fixed by the bylaws of the
cooperative but, not later than three months after the end of the financial year.
II. The annual general meeting will assess all aspects of the previous year's activities from
the reports of the president, the secretary general, the treasurer, the audit control and that of
the control committee. They will examine, approve or adjust elements and give or refuse the
cooperative's authorities the final confirmation.
III. Will approve the financial, social, and development plans for the following year.
IV. Will elect the managerial units of the cooperative and the control committee for the
following year.
V. Will fix the authorized maximum amount of debts that the cooperative society may contract
with any credit supply organization.
VI Will fix the investment and deposit ceilings above which decisions must be taken by a special
general meeting.
VII. The annual general meeting will be convened and presided over by a special AD-HOC
committee created by the annual general meeting for that purpose. The annual general
meeting will never be convened and presided over by the outgoing or incoming' management
of the cooperative.

3 Extraordinary General Meetings

This meeting will be called only when the following matters are considered:
 - Amendments to the bylaws
- Acceptance of new members
- Expulsion of members
- Dissolution of the cooperative
Decisions thereof require a special majority of all the members present at the meeting.

4 Special or Ordinary General Meetings

This meeting may be called at any time during the year whenever necessary. It may be
summoned at the insistence of the management committee, the audit or the control committee, the
registrar of cooperatives, or at the request of at least ten percent (10%) of all the members of the
cooperative.

CONDITIONS PERTAINING FOR ALL GENERAL MEETINGS REGARDLESS OF TYPE

1. A general meeting may be convened only when a quorum is present. A quorum should be one
person more than 50% of all members of the cooperative. If there is no quorum the meeting
will be postponed to no earlier than one hour later, and no more than one month later. Any
number of members present in the latter case would then consist of a legal quorum
2. Members must be informed about the date, time and place, as well as the proposed agendaof
the general meeting well in advance up to two months prior to the date of the general meeting.
Where it is possible written notice must be sent to all members at their official addresses at
least one month prior to annual and extraordinary general meetings. When ordinary general
meetings are concerned the notice should be sent as early as possible. The notice should
include the date of the alternative general meeting to be called if a quorum is not reached.

THE STEPS IN DECISION MAKING PROCESS

The following steps can be adapted in decision making process.
Step 1 Identifying/clarifying the decision to be made. If the decision has not yet been isolated, it
should be identified as a first step. The decision-making process begins when a manager identifies the
real problem. The accurate definition of the problem affects all the steps that follow; if the problem is
inaccurately defined, every step in the decision-making process will be based on an incorrect starting
point. One way that a manager can help determines the true problem in a situation is by identifying the
problem separately from its symptoms.
Step 2 Identifying possible decision options. The next step requires the decision maker to spell out,
as clearly as possible, just what the decision alternatives really are. In fact, the more ideas that comes
up, the better. In other words, there are no bad ideas. Encouragement of the group to freely offer all
thoughts on the subject is important. Participants should be encouraged to present ideas no matter how
ridiculous they seem, because such ideas may spark a creative thought on the part of someone else.
Step 3 Gathering /processing information and analyze the alternatives.

Next, the decision maker collects or processes information that can help guide the decision. If such
information is already at hand, then it simply needs to be processed; that is, studied and understood by
the decision maker. If there is no relevant information available, or if there is insufficient information,
then such information must be collected so it can be processed. The purpose of this step is to decide
the relative merits of each idea. Managers must identify the advantages and disadvantages of each
alternative solution before making a final decision. Evaluating the alternatives can be done in
numerous ways. Here are a few possibilities:
 1. Determine the pros and cons of each alternative.
2. Perform a cost-benefit analysis for each alternative.
3. Weight each factor important in the decision, ranking each alternative relative to its abilityto
meet each factor, and then multiply by a probability factor to provide a final value for each
alternative.
4. Regardless of the method used, a manager needs to evaluate each alternative in terms of its
Feasibility — can it be done? Effectiveness — How well does it resolve the problem

situation? Consequences — what will be its costs (financial and nonfinancial) to the
organization?
Step 4 Select the best alternative. After a manager has analyzed all the alternatives, she must decide
on the best one. The best alternative is the one that produces the most advantages and the fewest
serious disadvantages. Sometimes, the selection process can be fairly straightforward, such as the
alternative with the most pros and fewest cons. Other times, the optimal solution is a combination of
several alternatives.
Sometimes, though, the best alternative may not be obvious. That's when a manager must
decide which alternative is the most feasible and effective, coupled with which carries the lowest costs
to the organization. Probability estimates, where analysis of each alternative's chances of success takes
place, often come into play at this point in the decision-making process. In those cases, a manager
simply selects the alternative with the highest probability of success.
Step 5 Making/implementing the decision. After the information has been considered according to
its relevance and significance, a decision based on that information should be made and, thereafter,
implemented
Step 6 evaluating the decision. In recognition of the fact that not all of one's decisions are likely to
be defensible, the final step in the five-step decision making process is to determine whether the
decision was appropriate. Ordinarily, this will be done by ascertaining the decision's consequences.
Ongoing actions need to be monitored. An evaluation system should provide feedback on how well
the decision is being implemented, what the results are, and what adjustments are necessary to get the
results that were intended when the solution was chosen.
In order for a manager to evaluate his decision, he needs to gather information to determine its
effectiveness. Was the original problem resolved? If not, is he closer to the desired situation than he
was at the beginning of the decision-making process?
If a manager's plan hasn't resolved the problem, he needs to figure out what went wrong. A
manager may accomplish this by asking the following questions:
a) Was the wrong alternative selected? If so, one of the other alternatives generated in the
decision-making process may be a wiser choice.
b) Was the correct alternative selected, but implemented improperly? If so, a manager
should focus attention solely on the implementation step to ensure that the chosen alternative
is implemented successfully.
c) Was the original problem identified incorrectly? If so, the decision-making process needs
to begin again, starting with a revised identification step.
d) Has the implemented alternative been given enough time to be successful? If not, a
manager should give the process more time and re-evaluate at a later date.
 MANAGEMENT STRUCTURE

GENERAL BODY
“General Body”, means all the members of the Society and in relation to a national
cooperative society or a federal cooperative means all the delegates of member cooperative societies
or delegates of multi state cooperative society and includes a body constituted under the provisions of
the Act.

ANNUAL GENERAL MEETING AND ROLE & RESPONSIBILITIES OF GENERAL BODY

(Powers and functions of the General Body)

The Board of the society under a resolution shall within six months after the close of the
corresponding year call the annual general meeting at the principal place of business of the society for
the purpose of:
1. Consideration of the audited statement of accounts;
2. Consideration of the audit report and annual report;
3. Consideration of audit compliance report;
4. Disposal of net profits;
5. Approval for appointment of Auditors & fixation of remuneration;
6. Review of operational deficit, if any;
7. Creation of specific reserves and other funds;
8. Approval of the annual budget;
9. Review of actual utilization of reserve and other funds;
10. Creation of specific reserves and other funds;
11. Approval of the long-term perspective plan and the annual operational plan;
12. Review of annual report and accounts of subsidiary institution, if any;
13. Expulsion of members;
14. List of employees who are relatives of members of the board or of the chief Executive;
15. Amendment of bye-laws, if any;
16. Formulation of code of conduct for the members of the board and officers;
17. Election & removal of members of the board, if any;

18. Consider the statement showing details of loans or goods on credit if any given to any director
or to the spouse of the director or his/her son or daughter during the preceding year or
outstanding against any of them;
19. Any other matter laid before it by the Board of Directors.
Board of Directors:
1) Directors to be elected by the General Body (number as may be specified in the Byelaws;2)
Nominated Directors (number as may be specified in the Bye-laws, if applicable);
3) Chief Executive and Functional Directors shall be the ex-officio members of the Board.
4) Two eminent persons may be co-opted by the Board of Directors;
NOTE: Functional Directors are applicable in case of National Cooperative Societies only.
5) Two subject matter specialists may be invited by the Board in any of its meetings;
6) Nominees of the Central Government, if any, as per the provisions of the Act. Where the
Central Government or a State Government has subscribed to the share capital.

ROLE OF BOARD OF DIRECTORS (Powers & Functions of the Board of Directors)

1. To admit members;
2. To elect Chairman and Vice-Chairman of the society;
3. To authorize convening of Meetings of the General Body;
4. To interpret the organizational objectives and set-up specific goals to be achieved towards
these objectives;
5. To make periodic appraisal of objectives;
6. To appoint, suspend or remove the Chief Executive and such other employee of the society as
may be prescribed;
7. To make provisions for regulating the appointment of the society and the scales of pay,
allowances and other conditions of service, including disciplinary action against such
employees;
8. To place the annual report, annual financial statements, annual plan and budget for the
approval of the general body;
9. To consider audit and compliance report and place the same before the general body
10. To acquire or dispose-off immovable property;
11. To review the membership in other cooperatives;
12. To approve annual and supplementary budget;
13. To recommend to the General Body distribution of profits;
14. To raise funds;
15. To sanction loans to the members;
16. To fill any vacancy/vacancies in the Board by election;
17. To approve the panel of auditors for placing in the General Body;
18. To appoint such Committees, Sub-Committees as may be necessary and delegate to them such
powers as may be appropriate;
19. To frame regulations for the election of delegates to the General Body, Members to the Board
of Directors and for the conduct of Meetings of the General Body and the Board of Directors
as per the provisions of the Act;
20. To take such other measures or to do such other acts as may be prescribed or required under
this act or the bye-laws or as may be delegated by the general body.
CHAIRMAN AND VICE-CHAIRMAN/ PRESIDENT
There shall be a Chairman and a Vice-Chairman elected by the Board of Directors from among
themselves. The Chairman and in his absence, the Vice-Chairman shall preside over the Meeting of
the General Body and the Board of Directors. The terms of office of the Chairman and Vice-Chairman
shall be co-terminus with the term of the elected Members of the Board unless Chairman or Vice-
Chairman ceases to be a Director earlier. In case of any vacancy within this period, the Board shall fill
up the vacancy through re-election for the unexpired term of the Board.

POWERS AND FUNCTIONS OF THE CHAIRMAN:

The Chairman shall have the following powers and functions:
(i) He shall preside over the meeting of the general body, Board of Directors and executive
committee;
(ii) The Chairman shall sign the proceedings of all the meetings presided over by him;
(iii) In the event of equality of votes on a resolution the Chairman shall have casting vote in the
meeting;
(iv) To convene the meeting of the Board of Directors, Executive Committee and other
Committees of which he is the Chairman;
(v) The Chairman may delegate any of his powers and functions to the Vice-Chairman;

CHIEF EXECUTIVE
The Chief Executive shall be appointed by the Board and shall aid and assist the Board of
Directors in its functions. He shall be member of all the committees, sub-committees of the Board of
Directors as may be constituted.

POWERS AND FUNCTIONS OF THE CHIEF EXECUTIVE:

Subject to overall control and general supervision of the Board of Directors, the Chief
Executive /Managing Director by whatever name he is called shall have the following powers,
functions and responsibilities:
(i) To assist the Board of Directors in the formulation of policies, objectives and planning;
(ii) To implement the policies and plans duly approved by the General Body or the Board and
furnish to the Board of Directors periodical information necessary for appraising the activities
and progress of achievement towards implementations of the policies and programmes;
(iii) To summon meetings of various committees including the general body under the
instructions of the Chairman;
(iv) To maintain proper records of the society;
(v) To manage the funds of the society, cause proper accounts to be maintained and audited;
(vi) To attend to all correspondence of the society;
(vii) To be responsible for collection and safety of the funds;
(viii) To execute the policies/programmes and business of the society and take such action as is
necessary to give effect to the resolutions of the general body, Board of Directors or any other
committee constituted under bye-laws;
(ix) To sign all deposit receipts of the society with banks in accordance with the resolution of the
executive committee;
SECRETARY
The duties of the secretary shall be-
(a) to attend all meetings of the registered society and of the committee and to carry out all the
instructions of the committee;
(b) to be present at the office during the hours of business as fixed from time to time by the
committee;
(c) to record the whole of the transactions of the registered society in the books provided for
that purpose; to conduct correspondence on behalf of the registered society; to prepare the
annual statement of accounts and balance sheet; and to have charge of the documents, books
and vouchers for payments and receipts on behalf of the registered society;
(d) to receive all applications for loans and bring the same before the committee; to prepare
receipts and other documents in the form prescribed for signature by borrowers prior to their
taking the loans sanctioned; and with the authority of the committee to supply information
about the registered society which may be applied for by members;
(e) \ to receive all moneys due or payable to the registered society and issue receipts to the
payer for same from a counterfoil receipt book supplied to the registered society for the
purpose by the Registrar, obtaining at the same time the signature of the person making the
payment on the counterfoil;
(f) to deposit with the treasurer from moneys collected by him on behalf of the registered society
all sums in excess of an amount to be fixed from time to time by the committee and to obtain
from him a receipt on a form to be taken from the prescribed counterfoil book;
(g) to keep separate all moneys belonging to the registered society and on no account to mix them
with any other moneys; and to produce at all times when called upon to the committee, or the
Registrar or any person authorized by him, all moneys in his hands belonging to the registered
society;
(h) to make payments as authorized by the committee, obtaining the payee's signature on the
payment book prescribed by the Registrar:
Provided that if the payment is made outside the registered society's office the secretary shall,
in every instance, obtain from the payee a manuscript receipt and attach it to a separate page of the
payment book; (i) to issue a receipt on a form to be taken from the prescribed counterfoil book when
receiving money from the treasurer; and to summon meetings as provided in the rules