BASIC CO-OP

MANAGEMENT
MARICEL G. RUEDAS
CDS II

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“ A cooperative is an
• autonomous
• duly registered association of persons
• with common bond of interest
• who have voluntarily joined together to achieve
their social, economic, and cultural needs and
aspirations
• making equitable contributions to the capital
required
• patronizing their products and services and
• accepting a fair share of the risks and benefits of
the undertaking in accordance with universally
accepted cooperatives principles.”
RA9520 Chapter
1 Article 3
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 Unique and different from
Characteristics of a
other business enterprise?
Co-operative • Member-owner

• Common need, common • Member-user

bond of interest
• One-member-one vote
• Member’s commitment to • Returns given back to members
help each other,
succeed in coop • Patronize the services
enterprise
• Equal opportunity
• Leadership values
• Lower interest, prices
• Service-oriented, people’s
welfare to make • Help members,
members aware to save help themselves
& be thrifty
• render the greatest possible benefit
• Self-reliant to its members—not to make the
largest possible profit 4
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 honesty

self-
self- responsibil
help ity,

and caring
for others
social
equity responsibility
and
solidarity

OPENNESS
democracy

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OPENNESS - Nobody’s perfect, and we won’t hide it
when we’re not
HONESTY - We have integrity about what we do
and the way we do it
SOCIAL RESPONSIBILITY - We encourage people
to be answerable for their own community and work
together to improve it
CARING FOR OTHERS - We regularly fund
charities and local community groups with the profits
of our businesses
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DEMOCRACY - We give each member an equal
chance to run the business of the co-op

EQUALITY - No matter how much money a member

invests in his/her share account he/she is entitled to
just ONE vote

EQUITY - We carry our business in a way that is fair

and un-biased

SOLIDARITY - We share interests and common

purposes with our members & other co-ops 8
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• Cooperatives are voluntary
organizations, open to all persons able
to use their services and willing to
accept the responsibilities of
membership, without gender, social,
racial, political or religious
discrimination.

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Cooperatives are democratic organizations
controlled by members, who actively
their in their policies
participate setting and making

decisions.
Men and women serving as elected representatives
are accountable to the membership.

In primary cooperatives members have

equal voting rights (one member, one vote).

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Members contribute equitably to,
and democratically
control the capital of their
cooperative. At least part of that
capital is usually the common
property of the
cooperative.
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Cooperatives are autonomous, self-help
organizations controlled by their members.

If they enter into agreements with other

organizations, including the government,
or raise capital from external sources, they do
so on terms that ensure democratic control by
their members and maintain their cooperative
autonomy.

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Cooperatives provide education and training for
their members, elected officers, manager, and
employees so they can contribute effectively to
its development and growth.

They inform the general public - particularly

young people and opinion leaders - about the
nature and benefits of cooperation

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Cooperatives serve their members most
effectively and strengthen the
cooperative movement by working
together through
local, national,
regional and
international
structures.

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cooperatives work for the sustainable
development of
Their communities
Through policies
Approved by
their members.

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(a) Credit Cooperative
(b) Consumers Cooperative;
(c) Producers
(d) Marketing Cooperative
(e) Service Cooperative
(f) Multi-purpose Cooperative;
(h) Agrarian Reform Cooperative 19
(i) Cooperative Bank
(j) Dairy Cooperative
(k) Education Cooperative
(l) Electric Cooperative
(m) Financial Service Cooperative
(n) Fishermen Cooperative
(o) Health Services Cooperative 20
(p) Housing Cooperative
(r) Transport Cooperative
(s) Water Service Cooperative
(t) Workers Cooperative
(u) Agriculture Cooperative
(v)Other types of cooperatives as may
be determined by the Authority
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 Composed of members entitled to
General Assembly vote -
Supreme body where all
authorities emanate from

Audit
Board of Directors Election
Committee
Committee

Conducts the
Prepares
financial, Sets the strategic for and
management direction and facilitat
audit formulates policies es the
conduct
of
Treasurer Secretary election

Fund and Records and

Asset documents
Custodian /safeguard coop
documents

Ethics Con Med Education

Committe & Others:
e Committ Training
ee Com Manages
Credit General the day-
Com Manager to-day
Shall facilitate
Shall operation
the amicable Plans
ensure that s
settlement of and
the ethical
Intra- impleme
values and
cooperative nts Performs
standards
disputes and educatio Management specific
of the coop
disputes n and Staff tasks/
are adhered
among training functions
to.
members, programs related to
officers, the day-to-
directors, and day
committee operations
members

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 ORGANIZATIONAL STRUCTURE
Composed of members entitled to vote -
General Assembly Supreme body where all authorities
emanate from

Audit Board of Election

Committee Committee
Conducts the financial,
management audit
Directors
Sets the strategic direction
Prepares for
and facilitates
and formulates policies
the conduct
of election
Treasurer Secretary
Fund and Asset Records and documents
Custodian /safeguard coop documents

Ethics Con Med Education & Others:

Committee Committee Training Com
Manages the
Credit Com General day-to-day
Shall ensure that Shall facilitate the
amicable settlement Plans and Manager operations
the ethical values
of Intra- implements
and standards of
cooperative education and Performs specific
the coop are
disputes and training Management Staff tasks/ functions
adhered to. programs
disputes among related to the day-
members, officers, to-day operations
directors, and
committee members
 The highest policy-making body of the co-op.

 Voting in primary cooperatives is strictly

ONE - MEMBER, ONE – VOTE. No proxies allowed
except for representative assembly.

 Quorum shall consist of at least 25% of all the members

entitled to vote. However in case of co-
op banks, quorum shall be as provided in 99 of Article
the Code; In electric coops, 5% of all
members entitled to vote unless otherwise
provided in the by-laws
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
 REGULAR ASSEMBLY MEETING
held annually by the general assembly on a date fixed in
the by-laws, or if not, on any date within 90 days after the
close of each fiscal year.

Provided, that notice of regular meetings shall be sent in

writing, by posting or publication, or thru other electronic
means to all members of record.

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
 SPECIAL ASSEMBLY MEETING
whenever necessary, a special meeting of the
general assembly may be called at any time by a majority
vote of the board of directors or at least 10% of the total
members with voting right in the cases specified in the
by-laws.

At least one week notice must be sent to all

members who are entitled to vote.

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
 Members of the Board of Directors
 General Manager
 Secretary Treasurer


 Members of the committees created by the GA Other

 positions as maybe provided in the
by-laws

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
BOARD OF DIRECTORS

 Composed of not less than f ive (5)

nor more than f ifteen (15)
members elected by the general assembly for
a term fixed in the by-
laws but not exceeding a term of two (2) years.

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
BOARD OF DIRECTORS

 The BOD are responsible for strategic planning,

direction-setting, policy- formulation and by
resolution, exercise all powers of the cooperative
that are not reserved for the general assembly.

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
BOARD OF DIRECTORS

 Review the annual plan and budget and

recommend for the approval of the GA

 Evaluate the capability/qualification and recommend for

the approval of the GA the engagement of the services of
an External Auditor

 Appoint and terminate based on just cause the

General Manager

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
BOARD OF DIRECTORS

 Formulate and review the vision, mission and

goals of the cooperative

 Establish performance evaluation system at all

levels

 Review and approve the organizational and

operational structures

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
GENERAL MANAGER
 Represent the cooperative in any agreement,
contract, business dealings,
and in any other official business transaction as
may be authorized by the BOD

 Ensure compliance with all administrative and

other requirements of regulatory bodies

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
GENERAL MANAGER
 Represent the cooperative in any agreement,
contract, business dealings,
and in any other official business transaction as
may be authorized by the BOD

 Ensure compliance with all administrative and

other requirements of regulatory bodies

COOPERATIVE DEVELOPMENT AUTHORITY

DAGUPAN EXTENSION OFFICE
Source: Victo

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The membership support the co-op by

Participating in the Capital build-up

programs
Depositing
Borrowing wisely
Paying obligations promptly
Participating in co-op activities

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The coop has competent leaders in
terms of:

ATTITUDE- commitment,
honesty, integrity and the
sincere desire to make this
world a better place to live
in for everyone;
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KNOWLEDGE - the necessary
knowledge to run the coop as a
business e.g. accounting,
human relations and a clear
idea of the coop VMG in order to
provide the direction and to
serve as model/example

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SKILLS - communicating
skills, relationship
skills, skills in financial
analysis that can contribute to
the coop;
2ND LINERS – development of
other leaders alongthe way

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knowledge

attitude

skills

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The coop has competent and
diligent staff with;

•The right and adequate training for the

job;
•Just and adequate compensation;
•Opportunities for advancement

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The following systems are installed and
followed;

• Accounting system;
• Internal control system;
• Management Information System

The officers and members meet often (at

least once a month). The officers use a
problem solving approach whenever issues
and concerns are raised.
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Set of Rules and Guidelines

That will Guide the Management

In Implementing the Coop’s

VMG, Plans and Programs

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There is a continuing written
policies.
The policies are clear-cut, providing
a balance between the interests of
the members and the coop.
All concerned are properly
informed regarding these policies.

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•Validate that policies of the cooperative
are updated and properly documented

•Reinforce that policies are communicated

and understood by all stakeholders

•Approved policies are organized and

codified in a Policy Manual

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Characteristics of ‘modernized’ policy

•Strategic –looks ahead and contributes to long

term goals

•Outcome focused –aims to deliver desired

changes in the real world

•Inclusive –is fair & takes account of the

interests of all

•Robust –stands the test of time and works in

practice from the start
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Why put policies in writing?
• Communication

· So members, leaders and employees can read &

understand them
• Continuity

· To provide for management continuity

• Education
· To educate people about the coop
· To train new leaders & employees

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Why put policies in writing?
•Governance

· To maintain control and describe the method

and systems of management
•Compliance

·To comply with bylaws, laws and government

regulations
·To comply with best management practice
standards
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The internal capital is more than
50% of the total capital. The coop is
able to give a reasonable return on
investment to its members, and is
able to pay the cost of borrowed
capital (both the principal and the
interest).

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• There is a continuing education program.
• A program of pre-membership education
process to potential members
• An on-going information/ communication
process thru which the coop maintains the
support and cooperation of members,
e.g. ownership mtgs., newsletter, fora,
etc.

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The members are satisfied with the
services given by the co-op, the
coop officers additional services, at
least once during the last three
years.

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Management of Cooperatives
 The planning process will set goals
and defining the actions
necessar y to achieve those goals.
To achieve that,
A)they
deciding will goals the
which involve into
three
organization steps:
should pursue;
B)deciding what courses of ac tion
to adopt to attain those goals; and
C)deciding how to allocate
organizational resources.
 1. Strategic Plan – long term plan (usually 5
years or more) that represents the major
activities and programs towards the coop’s
vision.
 Where are we now? (Ou
Baseline) r
 Where do we want to go? (Our Target)
 How do we get there? (Our
Strategy)
 2. Annual Plan and Budget – a yearly
description and identification of coop’s
activities and programs for the year including its
costs. It must be anchored on the strategic plan.

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 3. Monthly Workplans – detailed
activities, actions and strategies per Key Result
Area (KRA) done and evaluated monthly.

 4. Other Plans: Risk Management Plan,

Disaster Plan, Succession Plan, Gender
Equality Plan, etc.
 The organizing process will determine:
a) the tasks to be done;
b) who will do them; and
c)how those tasks will be managed
and coordinated.
At this stage managers establish the
structure of working relationships
between organization membersthat
best achieves organizational goals. It
involves grouping people into departments
according to the tasks they perform.
 Then the managers need to lay out lines of
authority and responsibility between
group andpeople. The outcome of the
process is an organizational
structure, the formal system of
reporting relationships.

 The various coop’s policies (credit and

collection, internal control,
membership policy manual, CBU
policies, etc.) are done and developed
further.
 Its the process of acquiring, deploying,
and retaining a workforce of sufficient
quantity and quality to create positive
impacts on the organization’s
effectiveness.
 Coops must have a Human Resource
Policy that includes policies from
hiring to firing/retiring.
 Putting people at the right position,
giving them the right salar y and must
deliver the required output.
 The leading will manage the capacity the
members of work groups toward the
accomplishment of organizational
The leaders determine direction, articulate a vision,
goals.
and energize employees so that they can play a part in
achieving goals. It requires a number of skill sets
including understanding individual or group behavior
dynamics, the ability to motivate
employees, be affective communicators, able
to envision future and share that vision and
3C’s Leadership Model.
 1. Challenge – present a challenge that will
test their knowledge, skills, egos and loyalty all
towards the benefit of the organization and
stakeholders.
 State a Challenging Vision, Demand the
Impossible, Ask Challenging Questions,
Create a Culture of Continuous
Improvement, Benchmark the Best and
Argue with Success
 2. Confidence - a major responsibility of a
manager is to build confidence and motivate
his or her employees so that they will believe
in their ability to reach their objectives.

 Expand People's Self-Image, Keep

Ownership Where It Belongs,
Empower Your People, Recognize
Good or Improved Per formance and
Drive Out Fear
 3. Coaching is the process of advising
people in a way that facilitates their success. It
may take various forms, from training to
offering a
broader
perspective. Coaching can help employees to
better understand how their efforts fit into the
larger strategy, thereby allowing them
to make
better
decisions .
 Find the Right Balance, Make People
Think for Themselves, Show People
WhatGood Per formance Looks
Like, Be a Facilitator and Give
Feedback
 Marketing is a form of communication
between you and your customers with the
goal of selling your product or
ser vice to them . Communicating
the value ofyour product orser vice
is a key aspect of marketing.
 Product,
The Five Ps of Marketing:
Place, Promotion, Price, and
People.
 If you're pouring money into marketing
but nothing's happening, you need to
evaluate your marketing mix.
 Product. Your coop should solve an urgent
need or pain for the customer. Your product
needs the right features.
 Place. Location or place matters. Often coop
businesses pay for prime locations so they can
have the needed foot traffic. You want to be
located on a highly coveted corridor, in a
location that provides you easy access to the
target customer.
 Promotion. Without proper promotion to
attract your target customer, you won’t grow
your revenue. Good promotion starts with a
budget and marketing plan.
 Price. When pricing your product you must
know four things: your cost, what the
competition is charging, the standard mark-up
or profit margin in your industry, and the value
to the customer.
 People. Profile, needs, wants and requirements
of your members and members to be. Is there a
fit between what your member wants to the
products and services you have?
Are these people (members) willing to pay the
price?
 The last process of management is controlling.
It will monitor the per formance of the
organization and the progress in
implementing strategic and operational
plans. They will identify the deviations
between planned actual actions. Then
taking corrective action, so that it will ensure
the organization is moving toward the
achievement of its goals. This involves
designing appropriate measurement and
information and control systems.
 REPORTS
REQUIRED FOR
COOPERATIVE

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REQUIRED REGULAR REPORTS

The following reports shall be submitted to the

Authority:

1. Cooperative Annual Progress Report (CAPR)

2. Audited Financial Statement
3. Socio Audit Report
4. Performance Report
5. List of Officers and Trainings
undertaken/completed

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FILING

All registered cooperatives shall file with the

Authority a copy of the required reports either
through personal, registered mail, courier or
electronic means, within 120 days from the
end of every calendar year.

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 They follow all business norms like:
 Compliance with all business requirements
such as but not limited to business
permits; registration with BIR; social
legislation and labor laws;
 Adherence to local laws;
 Healthy competition;
 Open trade;

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 They follow all business norms like:
 Selling at market price
 Avoid destructive competition among

coops
 Adequate capitalization

 Adherence to business governance

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 Constant expansion
 Quality Standardized Goods

 Minimize Expenditures

 Comply with basic requirements of

abusiness enterprise.

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 Constant expansion
 Quality Standardized Goods
 Minimize Expenditures
 Comply with basic requirements of
abusiness enterprise.

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1. BIR REGISTRATION
 Articles of Cooperation and By-laws

 Certificate of Registration from CDA

2. Tax Identification Number (TIN)

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3. Book of Accounts
- yearly, on or before the
last working day of
December
- 2 Columnar, Cash Receipt,

Cash Disbursement,
Ledger,Journal 87
4. Certificate of Tax Exemption
* Certified true copy of
Articles of
Cooperation, By-laws and
Certificate of
Registration
* Application Letter
* BIR Registration
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