Home Project-material THE ROLE OF COOPERATIVE SOCIETIES IN PROMOTING MEMBERS ECONOMIC INTEREST (A CASE STUDY OF IMT STAFF (MCS) LTD, IMT, ENUGU).

THE ROLE OF COOPERATIVE SOCIETIES IN PROMOTING MEMBERS ECONOMIC INTEREST (A CASE STUDY OF IMT STAFF (MCS) LTD, IMT, ENUGU).

Dept: COOPERATIVE ECONOMICS File: Word(doc) Chapters: 1-5 Views: 4

Abstract

In this modern days business activities, Cooperatives thrift and credit society lays a very crucial roles so without belonging to cooperative society, financial Institution can not issue loan to you without credit, business will crumble. In registered Co-operative societies, thrift and credit are mobilized in such a way that hardship and usury that after money lenders and Conventional bank are cushioned. Therefore in Cooperative society, thrift and credit society are advocated because of its necessity in helping substitute workers salaries, save from exploitation and embarrassment, financial Crisis and generally boast their economic welfare, hence this paper is designed to expatiate on the role of Cooperative societies in promoting members economic interest staff IMT (Staff) multipurpose Cooperative society (MCS) history, objective, population of the study, data collection types and its inevitability to staff.

1.1   BACKGROUND OF THE STUDY

The advent of cooperative societies in most establishments has received a lot of accolades and criticisms as well. The present economic situation of our economy and the pay package of workers can hardly stretch over a reasonable time satisfy the vast important needs like physiological needs. The trend is very devastating as to lead to frustration. Where one cannot make ends meet temptation can come in for the individual to indulge in social vices. This led to formation of cooperative in some organization. At this juncture it is pertinent to define what co-operative society is all about before delving much into other analysis of its origin and contribution to members – owners in a particular and its mobilization of workers welfare.

Cooperative societies can be defined as an association of persons or small business men and women alike who voluntary come together for the common purpose of promoting the member economic interest of the members.

The birth of cooperative is associated with people who experienced some hardship and who their standard of living cannot be quantified in the scheme of things. This relative hard condition kindled the self-help mutual and self reliance spirit in the people whom felt need for cooperative among people ignite the formation of he first even recorded co-operative society, because of nomadic 15 and industrial revolution within 18

th

 and 19

th

 centuries. The condition of the then workers was very poor to resolve their socio-economic problems; the workers resorted to farming various types of cooperative societies that were directly benefice to members. The more successful of the first cooperative societies was formed in 1844 at the Rockdale England. The Rochdale pioneer society had twenty eighty (28) registered members. Because of the benefit engaged by the various kinds of these societies, it started to emerge with varying names but with the common objective of self help, mutual aid and self reliance. Among the co-operatives, consumer cooperative retard, cooperative thrift and credit societies to mention but a few. There continued existence and contribution help their members a lot in lifting their members economics life. Before the emergency of cooperative, workers leave their establishment or organizations. Lt Closer strutting of the reason for leaving organizations for others ones shows that the salary is either not enough or motivating enough to ensure their continued stay. This gives an insight to the need of credit and thrift societies in such organizations to help out in many ways which include. (i) Enabling employees to obtain loans for viable projects.  (ii) Encouraged thrift amongst workers as money saved is money earned. This is usually done at source to discourage procrastination; Employees that are highly motivated tend to put in their best in all they do. Motivation in this sense includes a sense of belonging brotherhood and comfort. The role of cooperative in enhancement of workers welfare are not limited to the employee alone, the organization sees a change in the attitude of their workers. The rate at which people change jobs will reduce and vice versa with this borne in mind any organization that impede the economics advancement of its work force should bear it in mind that they are obstructing cooperation’s. As most employers see it as a unionist movements considering the gains they stand to obtains believe that, this study would shed more light on the blessing that comes with cooperation.

 

1.2   STATEMENT OF PROBLEMS                                                  

The felt need for a means of cushioning the effects of inflation, hardship and host of other problems experienced in our nation. Other nations that are faced with similar and even greater problems are indeed pressing and has let to a lot of solution proffered which in most cases have not addressed the problems at hand but has only helped in alleviating a minimal amount and enriched the pocket of those proffered them. The government on its part has not taken time to research into ways or making ahead way as well. All the remedies churned out do not make any remarkable impact on those concerned.    No matter the huge amount one receives at the end of the mouth, if it is not properly administered. With a certain  level of frugality. In order to cover the wants, the problem at hand is still not solved. Tracing the history of how credit co-operative care in existence from German. The loan society Raifferson organizes in 1862 is still in existence. Here in Nigeria, credit is enhanced through the saving of members. It has been observed that companies or organizations where credit cooperative are established are faced with problems

  • No registration of the society in the ministry of cooperative.
  • A default in the payment of salaries.
  • A conflict of interest between the cooperative and establishment management.
  • The problem of first or greater loyalty, to who at a particular point in time.
  • People appear not to understand the role of cooperative society in the enhancement of workers welfare.

Alternative companies without co-operative are the worse off as the rate of application for loans keeps getting high. The provision for workers as stated by institute of personal management extracted by G.R. most on shows in the welfare employee services. The provision for granting lions, assisting employees in transport, housing billeting shopping and other problems among others. Narrowing the scope to the Nigeria setting, an average establishment dose not bothers itself much to provide these vital things that were formulated from very popular experiment. The question now is how we supplement our income without losing on both ends.

 

 

 

  • OBJECTIVE OF THE STUDY

The plight of the average Nigeria civil servant is indeed a pitiable sight that is nothing to write about. How will it sound for a worker that has 25years active service not being able to achieve a landmark? What with the poverty level of Nigeria and the chaos created by years of military rule. What becomes the plight of the workers?  Establishment that is faced with press needs and harsh economics constraints. That cannot pay their workers salary, prompting further aggravating the biting issue-in view of the above, solution have to be designed for this problems.

Therefore the objective of this study is to

– find out the lasting solution to the low income earners

through the understanding of co-operative movement.

-find out the needs for workers coming together to form a credit-cooperative with a properly run management.

-To discover the role of cooperative inherent in these societies as an instrument of self help and self –reliance to both parties concerned, the establishment and its workers.

– If there has been a remarkable growth rate since its inception and operation of multi-purpose cooperative societies limited.

–  Check out for the problem being encountered by these multi- purpose cooperative societies by their daily operation.

–  Finally to make recommendations and suggest solutions to the problems being encountered by members, intending members and society too. Not for getting to show the changes and wind fall that these multi purpose cooperative societies can create to all concerned

 

  • RESEARCH QUSTION

It still remains a fact that an employee cannot obtain all the economics of scale from the monthly or animal emolument and the company or employer will not. It cannot give much, considering economics terrains of Nigeria. This leads both state of the survival of the fillets, with of course casualties. It well won that a hungry man is an angry man; you can only give what you have gotten so a satisfied worker would put all that he has to mike a job a success. This study is focused on finding relevant solution to the following questions.

  • What is the purpose of cooperative society?
  • How effective is the cooperative society in providing succor to encourage Nigeria worker through multi –purpose co-operative societies.
  • What are the benefit of these societies to the members and organization where they are sited?
  • What are the problems encountered in the administration of thrift and credit in co-operatives that deal on them and what are the solutions.

 

1.5   RESEARCH    HYPOTHESIS                                                  

To guild this study, the research questions were formulated.

Agree: The existence of co-operative societies helps in solving the problem of low income earners.

Disagree: The existence of co-operative societies does not help in solving the problem of workers.

Agree:  co-operative has gone curb problems associated with nonchalant attitude of some workers through multi-purpose co-operation societies.

Disagree: co-operative has not gone to curb problems associated with nonchalant attitude of some workers through multi-purpose co-operative societies.

Agree:  The usefulness of co-operative societies serves as a reference point for the self help and self reliance.

Disagree:  The usefulness of co-operative societies does not serve as a reference point for the self and self reliance.

Agree:       lt helps in enhancement of staff welfare.

Disagree:    lt did not help in enhancement of staff welfare.

 

 

1.6    SIGNIFICANCE   OF THE STUDY

These study would aid the formation of more co-operatives as the benefit derived from them go a long way in relieving lot of burdens. The doubt often associated with the success and connectivity co-operatives amongst their rival in multi-purpose co-operative societies business would be cleared to show that multipurpose co-operative societies have all it takes. When administrated professionally to last long but successful and diversity their operation into other forms of co-operation.

Lastly this study of finding will be of educational importance to various universities, polytechnics and students of management related courses, economics and co-operative department. To organize research and studies into training as support to other activities of   I.M.T. multipurpose co-operative societies limited. At the end of this research work many workers in our society will be able to correct their errors and ignorant approach toward co-operative societies. It is important towards improving standard of living.

 

  • SCOPE OF THE STUDY

The student doing this research work would limit this study towards the role of co-operative societies in promoting members economic interest.

A study of I.M.T. multi-purpose co-operative societies Enugu. The research intends finding effect of promoting members Economic interest. The gain on both side of the coin in respect to credit societies. The management of these societies which has made it strong and more variable as the years go by.

Credit administration and factors militating against it would also be found out, problem being encountered. The strategies adopted the face of any problems and their exploitation of all the necessary machinery in place would be found out too.

  • LIMITATION OF THE STUDY

There is no system devoid of one form of chaos problems or the other in the course of this study the researcher was faced with the following problems.

NON AVILABILITY OF DATA:   Data to be used for this study were not available in one piece and one office.

FINANCE:       The scarcity of this essential commodity almost stalled the project since there should be regular visit to the multi-purpose co-operative society. The need for the research to meet staff for a one on one discussion also cost money. It also limits the number of respondent.

TIME:   The tight scheduled of lectures and a short semester chocked the time of the student. It is indeed difficulty to combine researching work with academics such as the numerous peppers, assignments and seminars. It constrains a lot of things and consideration. Other activities were overlooked in order to complete the research work.

 

  • DEFINITON OF THE TERMS

For an easy understanding of the word in this study clarity of purpose, elimination of misunderstanding, the following definition of term are necessary.

 

CO-OPERATIVE SOCIETIES

Co-operative society can be defined  as an association or small business  men and women alike who voluntary come together for the common purpose of improving their economic welfare” Each member is required  to contribute to common fund which is term is used to establish a business  that will look  after the economic interest of all the members. I.M.T means institute of Management and Technology.



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