CASE STUDY (6)

Jai kisan cooperative dairy is situated in karveer village in

Kolhapur district. The cooperative dairy was set up in 1980and
functioned successfully till 1990. For past five years it has been
suffering huge losses. The registrar of cooperative societies has been
receiving complaints from the members of the society, accusing the
management of faculty dealings. The registrar terminates the
managing body of the cooperative on the basis of the complaints.

Imagine that you have been appointed as the

administrator of the cooperative dairy and answer the given questions
by using your managerial competence.

QUESTIONS:

a. Identify the real problems before the dairy cooperatives with

the help of suitable assumptions?

Ans.: It can be inferred from the case study that the problem before
the dairy cooperatives must be because of the faulty dealings of the
management. Following are the assumptions for the faulty dealings:

➢ Irresponsibility of the organization committee related to the

dairy cooperatives.
➢ Fraudulent accounts.
➢ Unaccounted sale of dairy products.
➢ Adulteration of dairy products.
➢ Profits in the interests of the corrupt managing committee
without considering the objectives and benefits of dairy
cooperatives and its members.
 a. What professional management solutions would you suggest to
achieve a turnover for the dairy cooperatives?

Ans.: some of the solutions which the dairy cooperatives should follow
are as under:

 Treating people as origins of action, not as objects to be

manipulated or serviced.
 Encouraging people to work together and help one another solve
mutual problems
Designing useful structures, processes, products and services so as to
meet people's needs rather than for profit-making purposes alone.
There is no doubt in saying that the philosophy of cooperation
attempts to outline a rational and constructive approach to Socio-
Economic problems. This is justified by the following:
 A general body meeting of the members of the society is the
supreme authority in conducting affairs of society.
 1 member – 1 votes irrespective of the individual share holding.

 The rule of majority and control of board of management in

accordance with, the democratically expressed will, of the members.
 The board of management elected through a process agreed by the
members and the board is accountable to the members.
 Member Economic Participation: Members contribute equally and
also democratically to control capital of their co-operatives. The
capital is the common property of cooperatives. Members usually
receive limited compensation, if any on the capital subscribed as a
condition for membership. Members allot surplus for the following
 purposes: Development of infrastructure
 Setting up of reserves
 Allied activities relating to the co-operatives
 Autonomy and Independence: Co-operatives are autonomous self-
help organization, controlled by their members. If they enter into
 agreements with other organization, including government or raising
capital from external sources they do so on terms that ensure
democratic control by the members to maintain co-operative
autonomy.
 Education, Training and Information: Education becomes a prime
factor to make a cooperative successful.

Case study (7)

Imagine that you are the C.E.O. at the large and respectable
organization and that one of your tasks is to address your own
employees, driving home the point of the necessity of adopting the
basic principles of cooperation in the corporate society. Your speech
should cover the following:

QUESTIONS:

A. The important percepts of cooperation.

B. The present short-comings in the corporate way of life.
C. The role of cooperation in making corporate more focused and
purposive.

ANS.: If I had been the C.E.O, the following steps would have been
taken by me:

1. Strengthening of human resources: The deficiencies and limitation

in the recruitment and training should be removed. Competent persons
and individuals with a capacity and unquestioned integrity should be
posted on the various responsible positions.
2. Avoiding political influence: Groupism, class-consciousness, political
interference, which normally plagues should be avoided.
3. Improved recovery: It is necessary that the loans and credit
facilities should reach the poor farmers and those who have taken the
undue advantage should be made to repay it, at the same time it should
also be avoided to write-off loans unless absolutely necessary and
justified.
4. Developing a sense of solidarity: It is the most essential aspect
necessary for the growth of co-operatives. If there is no solidarity
among the members it will definitely affect the functioning and
prosperity of the co-operatives but might also face unforeseen
adversities.
5. Public Contribution and participation: It is very much necessary
that the co-operatives should become self-funding rather than on
government finances and subsidies. It should have more of public
contribution and participation.
6. Effective leadership: The co-operatives being a people’s movement
must ensure that the officers and the leaders should have and must
acquire necessary training to run the co-op movement more effectively
as these members will be the ones who will be able to do justice
towards the cause than any outsider.
7. Multipurpose basis: The old objective, of keeping the co-operatives
confined to providing credit has to undergo a change. It is necessary to
expand into an allied and infrastructural service as per the purpose of
the co-operatives.
8. Production plans: In addition to the primary function if the co-
operative aims at expanding, improving and deciding the agricultural
production it can help the villagers to specialize and pool in their
resources to increase the total production and thereby achieve scale
of economics.
9. Marketing and processing: After supplying credit and producing
goods the co-operative movement has often faced failure because of
inadequate and improper processing and marketing infrastructure and
therefore this also needs to be developed.
10. Professionalism: The solution for lack of professionalism could be
that the co-operative organization must adjust by adopting new
management techniques to meet the demands.
11. Diversification: The solution could be that co-operative
organizations should introduce new products, new processes new
techniques and tools of productivity etc. to build up its strength in the
market and maintain it on a continued basis.
Some more remedies include:
 reorganizing of central and state co-operative banks
 tapping of local savings
 Intensive training programs
 Increasing non-official control