POOR MANAGEMENT, A STUMBLING STONE OF CONSUMER COOPERATIVES DEVELOPMENT

POOR MANAGEMENT, A STUMBLING STONE OF CONSUMER COOPERATIVES DEVELOPMENT

 

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CHAPTER ONE

1.1    Background To The Subject Matter

From the book cooperative identity (1998) “the modern cooperative movement began England during the fist part of the nineteenth century. There were many years of experimentation, and many failed attempts, before a successful cooperative was established. The turning point came in 1944 when the first successful cooperative, called the Rochdale, an industrial town close to Manchester. The society was registered under the friendly societies Act. On October 28th 1844, but the shop did not open for business until December 21st 1944. This cooperative shop, established 155 years ago, continues to exist and proper up to the present day.”

 

They started with an intensive pre-member education program based on weekly discussion meetings lasting several months. During these meetings, they drafted their regulations which they later implemented with tenacity of purpose. They participated actively and democratically in the running of their society. Everyone bought shares of one pound each and bought their supplies from the shop in cash according to their rules. Their officials were honest, highly committed and fully accountable. They kept strict account of every transaction and declared their balance sheet quarterly. Their methods led them to success and they became a model for cooperatives all over the world.”

 

Furthermore,” their program was clear: start with a shop, using it as the foundation for further development. This idealism made them work hard, accept discipline, overcome difficulties, and eventually an internationally resounding success as the world’s first authentic cooperative shop. The Rochdale pioneers ran their shop like a serious business enterprise. Since their initial capital was small, only twenty-eight ponds, they had to manage it prudently. They stocked only goods in daily use: bread, flour, sugar, butter oatmeal, candles, etc later they added shoes, meat and cloth. They kept away from luxury goods and speculative buying.”

 

In this regard, the management had some significant impact to the success of the cooperatives. Management according to Akpala (1990) can 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 ever the objects are) desired by customers so that the organizational objectives are accomplished.”

 

While in his book Handbook for secretaries of cooperative John 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.” And Boettinger said “management is an impostion of order on chaos”. Looking at the role of management in cooperative development, therefore, this study intends to find out the possible management solutions to the dangling situation of the operation of consumer cooperative shop under study.

 

1.2    Historical Background To The Subject Area

The history of consumer cooperative shop, in the Department of Cooperative Economic And Management CBMS, is dated back in the month of April, 2000 AD. The shop was decided to be established to fulfill the requirement of the National Board for Technical Education (NBTE) for the recognition and accreditation of the higher National Diploma (HND), and National Diploma (ND) programs in cooperative studies, runned by the Department. Also, it is to serve as laboratory or references centre, or demonstrative shop, for students offering the courses, in Kaduna Polytechnic, Kaduna.

 

The none availability of essential commodities or scarcity of them needed by the staff, the cooperative consumer shop is up to provide them to its members. In this shop, commodities are sold to both the members and non-

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