Democratic Control In Cooperative

Project and Seminar Material for Economics

Democratic Control In Cooperative


Abstract


The principle of democratic governance is a defining feature of co-operative organizations. Members of the board of directors are the elected representatives of the membership, and as democratic organizations, there is an expectation that co-operatives should have adequate representation of member groups on their boards. Against this background, this paper therefore examines democratic control in cooperative. The primary and secondary method of data collection was used in collection data for the study. Primary data were obtained through the use of questionnaires and interview while the secondary data were obtained through review of relevant literature.

The population of the study comprises all bonafide members of the two selected society i.e. Surulere Cooperative Society and National Archives Multipurpose Cooperative Society, out of which a sample of one hundred and seventy-five (175) staff were selected using convenience sampling technique. Simple percentage method and chi – square were used in analyzing the data collected. The study revealed that government gives assistance with control and dictation to cooperative society which is one of the problems affecting practice of member loyalty. With respect to the findings arrived at, recommendations were made; that there is need for improving practices of the principle of democracy: This can be achieved by strictly observing the stipulations of the bye-law as well as the principles of cooperatives. The members should be made up of responsible individual who will see to this.

Also, since man is not born with cooperative knowledge, members should be educated of the unique way of associating through the use of various medium could be training symposium, handbill, discussion etc to encourage members.


Chapter One


Introduction

1.1 Background of the Study

Democratic Control are democratic organization controlled by their members, who actively participate in setting their policies and making decision.

Members are the source of all authority in cooperative, the basic unit in democratic control are the members. Decision in democratic control are made jointly by members irrespective of their financial consideration or position without any respect to the amount of shares or others capital interest that he may have in the society, will not make him have more vote/control than other members. The controlled as mentioned as earlier is in the hands of members, who’s loyalty and activeness are necessary in setting their policies and making decision.

Onuoha (2002) men and women serving as elected representative have equal voting right (one member, one vote) and cooperative at other levels are organized in democratic member and participating in decision affecting their society.

The Democratic Principle emanates from the Rockdale equitable pioneers as it was seen that every member interest needs to be covered and to maintain the importance of each and everyone decision making in order to improve upon member loyalty when decision are made.

This democratic principle is held by many authors as the foremost principle of cooperation. The believe at this principle is that every member is equal as person and as human being who wish to be held. The peculiarity of cooperative which believe that cooperative belong to member and they have the right to manage it in such a way that the organization function like a democratic institution. The supreme authority is vested on the entire members irrespective of one’s financial position, this make the member’s loyalty improve, knowing fully we that the society appreciate and accommodate them.

Necessitate this research which is improving upon member loyalty through the application of the principle of democratic control. A study of two (2) society which are mainly Surulere Cooperative Society and National Archives Multipurpose Cooperative Society. The research will like to know how member co-exist, how do organs of the society co-exist, or who make the members loyalty improve, who makes laws and rules for the society and what is the criteria for knowing member loyalty.


1.2 Statement of the Problem

Improving upon members’ loyalty through the application of the principle of democratic control cannot be over emphasized. In the real sense of cooperative it should be a guide to enable/improve member loyalty if properly executed. There is likelihood of the success to the society. However, it is clear that most of these procedures are not followed, hence creating a lot of problem in improving upon member loyalty and it is based on that, that this research is carried out.


1.3 Objective of the Study

  1. To determine upon member loyalty through the principle or democratic control.
  2. To find out the problem of member loyalty through the principle of democratic control.
  3. To identify the factors affecting members loyalty.

1.4 Research Questions

  1. What is the extent of improving member loyalty through the application of the principle of Democratic Control?
  2. What is the effect derivable from the application of the democratic control?
  3. What are the problems of application of the principle of democratic control?

1.5 Significance of the Study

The study examines improving upon member loyalty through the application of the principle of democratic control. The significant of the study cannot be underestimated, as this research work will be a reference for the incoming students, so they can borrow form it. This research or finding shall be very effective in enacting policies that will help regulate the activities of the types of cooperative in question for improving upon member loyalty to the general public who are interested in cooperative, they will use the result as a base for formation of viable for improving member loyalty. It will help create more awareness of the application of democratic control and improving upon member loyalty.


1.6 Scope of the Study

This study determines upon member loyalty through the application of democratic control. The study covers the extent of improving member loyalty, the modalities involved and the possible way that democratic control will be applied effectively. This research is restricted to the two selected society which are Surulere Cooperative Society located in Kaduna and National Archives Multipurpose Cooperative Society.


1.7 Definition of Terms

Improving:

Is a case where one is trying to advance from the present place or situation.

Member Loyalty:

Is the quality of staying firm in your friendship or support for someone or something.

Application:

This is a formal request to an authority for something.

Principle:

This is a general belief that you have about the way you should behave, which influences your behavior.

Democratic Control:

This is a type of control in which members of the group take s a more participative role in the decision making process.


Chapter Five


Summary, Conclusion and Recommendation

5.1 Introduction

This chapter present the summary of this research report, conclusion drawn the findings of the study and recommendation that could show improving upon member loyalty through the application of the principle of Democratic Control.


5.2 Summary

This study examines improving upon member loyalty through the application of the principle of democratic control with reference to Surulere Cooperative Society Kaduna South Kaduna and National Archives Multipurpose Cooperative Society, Kaduna North, Kaduna.

The research question that guided the study were, what is the extent of improving member loyalty through the principle of democratic control?

  • What are the effect derivable from the application of democratic control?
  • What are the problems of application of democratic control?

A survey method was used for the study. The population consisted of officials and non-officials members of the selected cooperative societies of Surulere Cooperative Kaduna and National Archives Multipurpose Cooperative Society. Out of the total population of 312 members, a sample size of 175 was used for the study. A questionnaire developed by the researcher based in likert 5 point scale was used for the study. Frequencies were used to analyze the data on the three research question.

The research result shows that proper implementation determine the member-loyalty. It was discovered that the interference of government in term of control and dictatorship is a factor affecting that sometime affect member loyalty. The extent goes as far as enhancing proper represent areas affect the operation of the society to attain organizational growth. Finally, that there are problems militating against the application of democratic control, such as their participation, lack of education, concentration of power and influences on some officiating disloyalty by same set, causes delay in decision and bring about emergency of selfish interest etc. It was based on this that recommendations were made.


5.3 Conclusion

Based on the research findings, it can be concluded that cooperative principle serve as code of conduct in any legal cooperative business. It s seen that democratic control if well applied and practice were contribute to effective member loyalty. Beside democratic control when member distinct in other forms of business based on voting on one member vote not according to the number of shares held by a member.


5.4 Recommendations

The following recommendations are made based on the research finding so as to improving upon member loyalty through the application of the principle of democratic control.

  1. The need for improving practices of the principle of democracy: This can be achieved by strictly observing the stipulations of the bye-law as well as the principles of cooperatives. The members should be made up of responsible individual who will see to this.
  2. Educate members on the peculiarity of cooperative democracy: Cooperatives is an association of individual to attain the social and economic needs of their members mutually, as such their activities and ways of operations differs from those of other members, since man is not born with cooperative knowledge, members should be educated of the unique way of associating through the use of various medium could be training symposium, handbill, discussion etc to encourage members.
  3. Properly spell out statutory and legal limit for management: Ambiguity should be avoided to be able to avoid misunderstanding in the procedures that are status and those that are non-statutory.
  4. The term of membership should be stated clearly so as to allow member to have equal participation for everyone to feel among.
  5. In order to develop sense of belonging, members should be encouraged to work together so as to achieve together, committed and participation in all encouraging the growth of the society.
  6. Democratic control is all about voicing democratically. Therefore members should be equipment with how to use their voice because it might be that member that is elected to manage the affairs or the society.

5.5 Reviewed Solution of the Problems

There should be an improvement in the governance practices of the cooperative so as to ensure not only individual benefit but favours the whole members which can improve the security, reduce supervision and control cost, furthering the image and strengthening collective action belong.

Being a society of individual, the member should avail themselves of internal mechanisms of participation, mutual trust and volunteerism in actions. An adequate low budget and high representative’s mode of participation is essential which will strengthen democratic control on member loyalty.


Democratic Control In Cooperative


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Frequently Asked Questions


What is democratic control?

Democratic Control are democratic organization controlled by their members, who actively participate in setting their policies and making decision. Members are the source of all authority in cooperative, the basic unit in democratic control are the members.

How decisions are made in democratic control?

Decision in democratic control are made jointly by members irrespective of their financial consideration or position without any respect to the amount of shares or others capital interest that he may have in the society, will not make him have more vote/control than other members.

What is the role of the members of a cooperative?

Members are the source of all authority in cooperative, the basic unit in democratic control are the members.

What is the democratic principle and why is it important?

The Democratic Principle emanates from the Rockdale equitable pioneers as it was seen that every member interest needs to be covered and to maintain the importance of each and everyone decision making in order to improve upon member loyalty when decision are made. 

What is democratic control?

Democratic Control are democratic organization controlled by their members, who actively participate in setting their policies and making decision. Members are the source of all authority in cooperative, the basic unit in democratic control are the members.

How decisions are made in democratic control?

Decision in democratic control are made jointly by members irrespective of their financial consideration or position without any respect to the amount of shares or others capital interest that he may have in the society, will not make him have more vote/control than other members.

What did the Union of democratic control do?

The Union of Democratic Control was a British pressure group formed in 1914 to press for a more responsive foreign policy. While not a pacifist organisation, it was opposed to military influence in government.

What is a constitutional democracy?

While the exact definition continues to be debated by political scientists, constitutional democracy is generally defined as a system of government based on popular sovereignty and a rule of law in which the structures, powers, and limits of government are established by a constitution.

How are decisions made in a democracy?

Generally, decisions are made with a vote and a specified a majority as set in a constitution. Very important decisions, e.g., a change in the constitution, may use a super majority, other decisions may use a simple majority, and less important ones may use delegates assigned to committees, but require approval.

Why is democratic decision-making dependent on a group?

There are pre-existing rules and procedures that allow for a mainstream resolution to the issue. Also, there is not one person responsible for making a decision; rather, the decision is made by a group of people. Therefore, democratic decision-making is dependent on a group, instead of one leader.

Who is responsible for making a decision in a democratic society?

Also, there is not one person responsible for making a decision; rather, the decision is made by a group of people. Therefore, democratic decision-making is dependent on a group, instead of one leader.

What is the role of the co-op member?

Members are the foundation of the cooperative. They organized it. Their needs are the reason for its existence. Their support, through patronage and capital investment, keeps it economically healthy. And their changing requirements shape the cooperative’s future.

What do you need to know about a cooperative?

Provide necessary capital. A cooperative is a user/owner (democratically) controlled form of business; however, in most cooperatives, members cannot make all the decisions directly. Members exercise control over a cooperative directly by voting at membership meetings and indirectly through election of a board of directors.

What are the duties of co-op owners?

Each group has distinct duties and responsibilities. The owners of a cooperative are members of the cooperative. Co-ops typically operate using a one-member one-vote system where each member has one equal vote to make business decisions. The level of engagement of members in cooperative governance varies widely.

What are the legal rights and responsibilities of a cooperative member?

Legal rights and responsibilities of cooperative members normally include: Adopt and amend the articles of incorporation and bylaws. Elect and, if necessary, remove directors. Decide whether to dissolve, merge or consolidate the cooperative or form a joint venture with other cooperative or noncooperative firms.

What are the principles of democracy?

— Principles of Democracy Democracy comes from the Greek word, “demos,” meaning people. In democracies, it is the people who hold sovereign power over legislator and government.

What is the importance of democracy?

When talking about the importance of democracy it is important to define it accurately. Democracy is popular sovereignty – in Abraham Lincoln’s words, ‘government of the people, by the people, for the people’. At its heart is the concept of the population choosing a government through regular, free, and fair elections.

Why is the rule of law important in a democracy?

To further show the exclusiveness of the rule of law, the United State’s system of government, which is a democracy, is going to be compared to militarism and absolute monarchy. The rule of law in a democracy is essential. Without the rule of law to keep the government’s power in check, democracy could not exist.

What is an ideal democracy?

In such an ideal democracy (the favourite example of democratic theorists is, of course, the fifth-century Athenian Assembly), all citizens are allowed to participate directly in the activity of law-making. 

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