POOR MANAGEMENT, A STUMBLING STONE OF CONSUMER COOPERATIVES DEVELOPMENT

CHAPTER TWO
LITERATURE REVIEW
2.1    Introduction
The chapter reviewed the related literature available for this study. The review was divided into cooperative management view and the political leaders view. Generally, by viewing the history of cooperative world over, one finds out that cooperative movements witnessed an increasing problem of managements. These include both the internal administrative management and the management between the government and cooperatives.

Management according to Agwu Akpala (1990) can now be defined as the process of combining and utilizing, or allocating an organization’s inputs (men, materials and money) by planning, organizing, directing and controlling for the purpose of producing outputs (goods and services or  what every the objects are) desired by customers so that the organizational objectives are accomplished. From the above, the management of consumer shop is vested in the hand  of its officers and members.

2.2    Cooperative Views
“In his book” Hand book for secretaries of cooperatives Okowo (1991) said “management of cooperative business on behalf of the members, and in accordance with the decision taken at the meetings, means looking at every detail with them; save skill and energy, as private traders, to give to the business.”
From the  above, one can realize that the management of cooperatives is in the hand of members choosen at their general meetings to guide the other members in carrying out the policy agreed at the general meetings. So, the members  need a person to run their  organization between the meetings. General meeting usually holds once or twice in a year. While the management committee meeting usually holds once or twice in every month. In his paper published in new Nigerian News paper (on Tuesday 4th December 1990) titled (potential contribution of cooperative towards rural development), at national seminal on integrated rural development policy in Nigeria, Ibrahim, the Director of School of social and rural development, Kaduna stated that “the union should be allowed to employ their managers and discipline them accordingly, this will ensure proper financial management and control of the union activities by the members. It will also offer the committee members a better chance in having free and open discussion with the management.”

From the above, the contributor said; that the management of cooperative societies should be left in the hand of its members in order to have collective ideas among themselves. They should be allowed to employ good managers of their choice and discipline them whenever necessary. This will ensure proper management of their business. In a paper presented at the cooperatives international day, titled managerial and cooperative education huge factor in the success of cooperative business, Suleiman (1992) said: “management is a universal concept applied to all human organizations, profit or no profit small scale, medium or large scale business.” Management defined as the process by which people, technology, tasks and other resources are combined and coordinated so as to effectively achieve organizational objectives. It could be permitted to note that management of cooperative organization s vested in the hand of management committee. This comprise the chairman, secretary and the treasurer.

Suleiman from his paper noted that the task of management committee is not easy. The most important among them is decision making. The nature of their decision will determine the success or otherwise of cooperative organizations. Business itself is a risk and since cooperative undertakes business of various type, their operations are equally risky. Leadership generally involves the guideline, the direction of group acting by one or more persons, the performance of certain tasks. And it is certainly some one’s responsibility to ensure that the tasks are accomplished. The performance of these services, whether by one man or several persons, constitutes leadership.
As explained by Nigerian journal of cooperative studies vol. 1 No. 1 (1997), “However, managerial talents are not excusably of the education. Unfortunately, able managers soon up on high level in the problems of poor management at the lower level.” While in the paper presented by Tyong .G Ugory on education of cooperative movement (Kaduna Polytechnic) said that “the main courses of failure among Nigeria cooperatives” are:

“Inadequate financing, poor quality of personnel’s, lack of financial records and lack of management development programs”. The statement is true, when you take an actual view of consumer cooperative  shop it cannot afford to employ the services of good managers, and the management committee are not liberate enough to understand the principles, rules and regulations of the consumer cooperative shop.
“Lack of management development program is another factor. Many cooperative organizations do not have management programs. Neither the management committee nor the manager or secretary attends business lectures, seminars and symposium of course organized by business professionals, for the purpose of promoting modern management” in their organization. Akinkwumi said in his book “synoptic lecture note in Business management” that management of cooperative (is not of difference) in principles (with any other business.” Once the basic differences in operational procedures are well understand and taken care of  the efficiencies of operation depend on the business techniques”

Adodo (2003) write on the topic “why most cooperative societies fail” stated that “despite that fact that these (cooperative) societies are working very hard to see to the needs of their members, most of them still fail due to some factors  which are as follows:”
-       Lack of (cooperative) education among the rank and file of (the members). “cooperative education has failed to adequately utilize resources available within (its) education structure.
-       Dishonesty among the management committee. “and if those people now turn out to be the corrupt ones and later to be the corrupt ones and later on mismanage the society’s funds, if can lead to the collapse of  the society.” 
-       Government interference. “this can bring about lack of dedicated” (members).”
-       Poor attendance (of meetings) and irregular meetings.
-       Regular meetings and good attendance is very importance to all cooperative societies because this is where crucial matters concerning the society will be discussed. And if this is note so, there is no way that the society will move forward.
-       lack of dedicated members…. The fact that (members) do not attach any importance to cooperative societies. Society is for only those in (the) rural areas. Inadequate attention is paid by rank and file (of the cooperatives members) to the cooperative activities. In general, the idea that cooperative matters are not  (in) individual matters still prevail among (the) members.
Dwelling in to Rensis Linkers management leadership style and in relation to cooperative, linkers sees as effective leader as string oriented to subordinates, relaying on communication to keep all parties working as a unit. All member of the group, including the leader, adopted a supportive relationship in which they feel a genuine common interest in term of need values, aspirations, goals and expectations cooperative which is a unique enterprise, has its members as its owners. They contribute to the funding of their society as well as its management. Furthermore, Linker postulated leadership style for exploitative authorities, benevolent authoritative consultative and participative authority. As a matter of relevance, only two style could be discussed. In benevolent authoritative style, leaders must have a condescending confidence and trust in subordinates. Motivate them with some regards, fear and punishment. Permit some upward communication, solicit an opinion from the subordinates and allow some deligative decision making but with close policy control to them. In cooperative enterprise, members brought out their ideas which deliberations could be done, in the general meetings, in the best interest of the society. The management committee trusts and wholly rely on its members as far as information is concern. The principles of cooperative, among others have patronage refund which stands as a reward to members. At times, the need for paid employee arises on the cooperative enterprises. Here, some distinctive members are deligated to perform some tasks for the enterprise.

The perspective leader style have complete first and confidence in subordinate, in all matters. Always get ideas and opinions from the subordinates and constructively use them. Give economic rewards on the basis of group part and involvement, in such areas as setting goals and appraising progress towards goals. Engage in much communication down and up with pears. Encourage decision making throughout the organization style, as  earlier  discussed, to a greater extent.

Linkert, conclusively stressed that departmental companies as well as enterprise, managed by the participative group leadership style, seem to be the most successful and effective on certain goal and achieving them. Generally, the most productive. A Canadian cooperator in the name of AFILABIBLAD, in a paper presented at the International Labour Organization (ILO) World summit, in 1994, contributed on the significant role management play in the overall conduct of the cooperative enterprise. In the paper I quote “whenever you find nourishing cooperative given good services over a long period of time or years, you always find a loyal bound of devoted what woman give good leadership”.
This Canadian cooperator is tying to stress that overall operation of any sort of cooperatives be it primary or otherwise, centres on how effectively the societal management is. By definition, a leader is a person who can organize and direct men and materials so as to achieve the defined goals. In terms of this definition, cooperative enterprise has three types of leaders

1. The elected office bearers
2. The non  official leaders (paid employees)
3. The senior government officials.

The elected office bearers are those members elected democratically at the end of a special period of time say yearly. The cooperative business as well is known to be runned based on democracy.  One man one vote.  Such office bearers are elected to manage their society in the best way as specific by their bye-laws. When ever an election was held elected members are expected to fully check what their predecessors left for them and make some adjustments, where necessary. Such adjustment should not be contrary to the provisions of their bye-laws.
While, none official members (paid employees) can be members of the society as a question of other people held from outside. The services of these people are normally engaged so as to urgently solve a given societal problem. Some tasks, for example, are so complex that at times there arise the needs of some people from outside to be called upon in order to conduct it. Although, such people from outside, are engaged on the approval of the general meeting of the society.

And then, the government officials are sent by the government, federation and otherwise, to help plan a given cooperative enterprise. Though this act went contrary to the cooperative way of operation. Cooperative suppose to be members own and free from interference from any outsider. From the above, I have to make clear that cooperative of any sort, has to be formed and funded by its members. The way and nature by which government administration in Nigeria and indeed West Africa-sub-region deform and fund cooperatives has a negative impact on such enterprises. Such full government participation in cooperative activities gave room for the members not to have a sense of belonging to the society.

However, a group of people that formed and funded a cooperative society could not be compared with the society formed and funded by government. In a paper presented by Dr. John Tex, in National Seminars at University of Ibadan, on the produce of the cooperative management, Dr. Tex stress that “the main element that complicates the administratives and managements of cooperative societies consists of the plurality of its objectives and consequently the plurality of the creataria, which are apt to be applied to evaluate the successful cooperative institution for a private business”.

“there is one overriding criteria that is “optimum economic efficiency” resulting in maximum profit making”. A cooperative institution however, is liable to be subjected to the multiple task of democratic management, social responsibility and economic efficiency. Optimization of economic returns, to the members, rather than its no sign of it’s none profit may be expected from the cooperatives. The extent of member participation management, the degree of help rendered to weaker members, the adoption of non-member active willingness to accept membership etc. are some criteria which are likely to be adopted while assessing the general performance of cooperative”. Thus, he concluded that cooperative are hard-like-business to start and given harder kind to operate successfully”. “it is not easy top capitalize with a large of small investment by large number of  people”. “it is not easy to manage where every single customer is an owner and a potential boarder member”.

2.3    Political Leaders Views
In a paper presented at the University of Ile Ife on November 10, 13, 1980 on the organization and the management of farmers productive cooperative by Mr. J.O. Ogundeyi commissioner for agriculture Lagos state said: cooperative management have been founds to be related to the problem of scale. The larger the organization the best the effective member participation. Full participation unit. The member of the people is very vital, refrain of complexity of problems, properly motivated cooperative functions under effective management, especially where the membership is of reasonable size.

From the above, Ogundeji (1980) crises that a cooperative has a problem of membership He said, the higher the membership, the more difficult to organize it by the management....