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-members at a reduced cost. This is in accordance with the Rochdale equitable pioneers principles. It is believed that the cooperative consumer shop was also established along side to the same aims and objectives of Rochdale equitable pioneers.

1.3    Statement Of Problem

Consumer cooperative society is very vital to the alleviation of members problems of essential commodities needed by them, in their, bid to obtain them directly from their shop instead of buying it from the retailers. Consumer cooperative society helps its members to purchase their needed pure and unadulterated goods.

However, the consumer cooperative shop, in CBMS is not having that constraint and steady functioning, as it uses to fluctuate in-terms of both managerial aspect of it and stock availability in the shop. That is to say, sometimes a good management team (committee) is in place and sometimes the weak one is there. And sometimes there are goods for sale and sometimes they are not available subsequently, this contributed to more serious questions being asked, and greatly to low patronage of members. This informs the focus of this study in order to identify whether lack of good management is a contributing factor to the failure of cooperative consumer shop.

1.4    objectives of the study

1.     One of the basic objectives of this study is to clearly bring out the importance of good management in the consumer cooperative shop.

2.     Another objective of this study is to carefully investigate in to the nature of the management practice applied.

3.     It is also the focus of this study to examine the problems of lack of good management in consumer cooperative shop.

4.     The study finally, intends to proper solutions to the problems of lack of good management in consumer cooperative shop inform of recommendation.

1.5    Significance Of The Study

1.     One of the basic significance of this study is that as the problem of poor management in consume cooperative shop is brought in limelight, it would be appreciated and supported by the members. This will up lift the image of consumer cooperative shop.

2.     The study is equally significant in the sense that as the nature and type of management of the consumer cooperative shop is known, it will be easier to determine what should be done and how it should be done so that its benefits can be fully achieved, in the area.

3.     In another development, the study is significant as it will systematically bring-out the major problems of poor management affecting consumer cooperative shop thereby creating rooms for those problems to be efficiently tackled so that it can attain greater heights.

4.     From the recommendation made, consumer cooperative shop members can take instance and make adjustment. These recommendations and recommended solutions will actually help consumer cooperative shop.

5.     Finally, the study will also act as a spring board (starting point or reference point) to the other researchers or students in related field of study.

1.6    Purpose Of The Study

1.     The purpose of the study is to find out the general management activities of the consumer cooperative shop since its inception in the year 2000 A.D. what are the militating management agents against its development?   

2.     Secondly, another purpose of the study is to find out if there are tangible achievements of the business, then what are the management hindrance and the militating factors against its development? What brought about these management hinderance and what are the possible  remedies?

3.     Finally, the purpose of the study if for it to serve as a practical fulfillment for the award of National Diploma in Cooperative Studies under the Department of Cooperative Studies, CBMS Kaduna Polytechnic.

1.7    Research Questions

1.     To what extent has the lack of good management contributed to the irregular availabilities of goods on stock for sale in the consumer cooperative shop?

2.     What type of management activities are carried-out in the consumer cooperative shop?

3.     What practical problems are in the management of consumer cooperative shop?

4.     In the light of the management problems of consumer cooperative shop, what can be done to remedy the situation?

1.8    Operational Definition Of Terminologies

COMSUMER COOPERATIVE SHOP: CBMS CONSUMER COOPERATIVE SHOP DEVELOPMENT: SUCCESS OF THE SHOP

DEVELOP MEMBERS: Up lift and improve the living standard of its members.

EQUITABLE: Equal shares and rights of members

MANAGEMENT: Proper running of the affairs of the consumer shop.

OFFICERS: Cooperative leaders.

POOR MANAGEMENT: Weak management

STUMBLING STONE: Hindering factors.

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