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Table 5: Selected Performing Co-operatives by Age of Operations
No.
Age (Year)
No. of Co-operatives
Percent (%)
1
≤10
19
21.3
2
11 - 20
20
22.5
3
21 - 30
13
14.6
4
31 - 40
10
11.2
5
41 – 50
14
15.7
6
> 50
13
14.6
Total
89
100.0
With respect to function, the credit co-operatives surveyed are found to have been existence on average for 45 years. Similarly most of the agriculture and housing co-operatives selected as performing co-operatives has been in operations for more than 30 years. Although the construction and services co-operatives are relatively younger compared to the credit co-operatives, they have been in operations for more than 10 years.
Table 6: Selected Performing Co-operative Average Age and According to Function
No.
Function
Age Average
No. of Co-operative
1
Credit
45
19
2
Agriculture
32
20
3
Housing
42
4
4
Consumer Construction
21
19
5
Transportation
13
2
6
Services
18
9
Total
16
89
(c) Size of Membership
As depicted in Table 7, 55 out of the 89 co-operatives surveyed, mostly comprised of medium, small and micro size co-operatives have membership below 500 members, with four (4) medium, four (4) small and six (6) micro co-operatives having less than 100 members. One (1) large secondary size co-operative has 13 primary co-operative under it. Three (3) small and one (1) micro co-operatives however were found to have
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between 1001-10,000 members. On the whole, 76.4% of the selected performing co-operatives have a total membership of 1000 and below.
The large size co-operatives generally have larger membership size, some having more than 10,000 members. These are generally made up of the more longer established co-operatives such as credit and housing co-operatives. Six (6) large size credit co-operatives (3.4%) were found to have more than 10,000 members while one services co-operatives have membership more than 20,000.
Table 7: Selected Performing Co-operatives by Size of Membership
Number of Members
No. of Coop
Sizes of Co-operatives
Large
Medium
Small
Micro
<100
15
1
4
4
6
100 – 500
40
5
13
13
9
501 – 1,000
13
0
3
9
1
1,001 – 10,000
15
5
6
3
1
10,001 – 20,000
3
3
0
0
0
>20,000
3
3
0
0
0
Total
89
17
26
29
17
(d) Fulltime Employees
The statistics on the number of employees in the 89 co-operatives indicates that 13 co-operatives (14.6%) are fully managed by the Board Members (BOD). Among the co-operatives that do not employ any staff, 1 is from the medium size co-operative, 5 are small co-operatives while another 7 is the micro co-operatives. 52.8% of the selected performing co-operative hired 5 employees and less to manage their co-operative while another 12 co-operatives engaged between 6 – 10 employees. However, it is interesting to note that three (3) of the small performing co-operatives and one (1) micro co-operatives employs between 6 to 10 people to help run the co-operatives while one (1) particular micro co-operatives has between 11 – 15 employees. Generally only the medium and large co-operatives have the capacity to employ more than 15 employees, with 9 co-operatives having more than 20 employees. One (1) large co-operatives in particular has a total number of 229 employees (Table 8).
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Table 8: No. of Fulltime Employees Employed by Selected Performing Co-operatives
Number of Employed
No. of Coop
Sizes of Co-operatives
Large
Medium
Small
Micro
0
13
0
5
7
1– 5
47
0
21
8
6 – 10
12
3
3
1
11 – 15
5
3
0
1
16 – 20
3
2
0
0
21 – 25
3
3
0
0
> 25
6
6
0
0
Total
89
17
29
17
Table 9 indicates that the larger and medium co-operatives tend to have higher capacity to hire executive and managerial level employees. 74 people were engaged as general managers and managers for the performing co-operatives while another 145 people are engaged at the executive level (Assistant Managers/Executives/Supervisors), working for 32 of the 89 performing co-operatives. Although a few small and micro co-operatives have employees at the executive and managerial level, they are more inclined to engaged employees at the clerical level.
A total of 413 people worked as clerical staffs and another 181 as general workers. In summary, the 89 performing co-operatives have provided 813 employment opportunities at the managerial, executive and clerical level with the large and medium co-operatives generating 86.5% of the job opportunities.
Table 9: Number of Employees According to Size of Co-operatives
No. of Emp.
No. of Employees by Co-op Size
Large
Medium
Small
Micro
Gen. Manager
15
9
4
1
1
Manager
59
29
15
12
3
Asst Mgr/ Exec/ Supervisor
145
110
21
7
7
Clerical Staff
413
326
50
31
6
General Workers
181
111
28
18
24
Total
813
585
118
69
41
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(e) BusinessActivities
Performing co-operatives operates a number of diverse activities ranging from financial, plantation, construction to service based activities. It was found that most of the performing co-operatives (32.6% or 29 co-operatives) surveyed run only one type of business activity. Overall, more than 50% of the performing co-operatives focused on 1-2 core business activities. A total of 20 co-operatives (22.5%) were found to carry out two types of business activities while another 23 co-operatives (25.8%) are involved in three different business activities. Only 16 co-operatives are identified to be involved in 4-5 different form of business There is however one (1) small sized co-operative carrying out six types of activities in a smaller scale.
Table 10: Number of Activities undertaken by the Selected Performing Co-operatives
No. of Activities
No. of Coops
Percent
Size of Co-operatives
Large
Medium
Small
Micro
1
29
32.6
4
6
12
7
2
20
22.5
4
7
4
5
3
23
25.8
4
6
9
4
4
11
12.4
5
3
3
0
5
5
5.6
0
4
0
1
6
1
1.1
0
0
1
0
Total
89
100.0
17
26
29
17
As to the types of activities, 35 co-operatives run services business including cleaning services and providing premises for rental. This is followed by plantation activity and contracting activity (31 co-operatives), while credit activity is undertaken by 25 of the performing co-operatives. Only a small percentage of co-operatives are involved in the petrol station business and farming activity.
Most of the large size co-operative are found to be involved in credit, investment and consumer activities. Meanwhile, the service and contracting activities is the more preferred business undertaken by the medium size co-operative. Smaller and micro size co-operative on the other hand focused their effort on contract, service, plantation and retail business.
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(f) Membership Growth
Overall, membership for the large and small and medium size co-operatives grew at a rate of 6% while the membership for the micro co-operatives grew at an average rate of 14.4%. As per function, the membership for the housing and construction co-operatives increased significantly, with housing co-operatives recording almost a 50% growth rate. Alternatively the membership for the agriculture and consumer co-operatives declined slightly (0.25%) in the year 2008. Nevertheless the membership for the credit, transportation and services co-operatives grew moderately at a rate of between 3% - 5%.
(g) Assistance and Support Received from Agencies
The study also investigated the types of assistance and support received by the performing co-operatives from different agencies, especially those related to the co-operative sector. On the whole, almost all of the performing co-operatives have received some form of assistance and support from different organizations, financially or otherwise.
It was found that 91.0% of the co-operatives (81 out of 89) received assistance and support from MCSC particularly in the form of financial aids and soft loans and majority of the co-operatives have also at one time received assistance from the MCSC in terms of annual auditing services. 75% of the co-operatives surveyed received assistance from CCM, mainly in the form of training and consultancy services. Similarly 74.2% of the sampled co-operatives have received support from ANGKASA in the form of member education and training programmes plus assistance in the form of pre-audit services and IT hardware’s and software’s supplies. A total of 39 co-operatives also indicate that they also received assistance/support from other agencies and state based agencies in the form of financial aids, specialized training programmes, technical and marketing support.
(h) Members Fund and Dividend Payout
The total members fund accumulated by large co-operatives is mostly made of the shares and subscription contributed by members (72%). The remaining amount is made up of various funds set up for members benefit, such as members education fund, members benevolent fund and retained earnings. Conversely, the shares and subscription contributed by members of micro co-operatives only form 37% of their members funds.
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Table 11: Members Fund of Selected Performing Co-operatives, According to Size
Size
No. of coop
Total Member’s Fund
Total Share Capital + Subscription
Ave Div. P/out
RM
%
%
Large
17
3,332,831,130
2,412,051,323
72
16
Medium
26
69,986,693
34,028,965
49
13
Small
29
36,453,983
23,690,485
65
15
Micro
17
5,242,572
1,958,498
37
19
As credit co-operatives obtained most of it’s financing from internal sources, the main portion of it’s members fund is in the form of shares and subscription (72%). Services co-operatives also has a large fraction of it’s members fund in the form of share capital and subscription (83%). Comparatively, the agriculture, housing, consumer, construction and transportation co-operatives, the shares and subscription contributed by members only ranges from 14% to 38%.
Although the percentage of shares and subscription to total members fund is small, the micro co-operatives are found to have paid the highest average dividend payouts (19%). This is followed by the large co-operatives which gave dividend return of 16%. Small co-operatives annual average dividend payout is 15% while the medium co-operatives on average paid out 13% dividends to its members. Credit co-operatives which have a sizeable amount of shares and subscription are observed to have the lowest average dividend payout (7%). Relatively, services co-operatives paid an average dividend of 12%. The highest dividend payout is given out by the construction and consumer co-operatives, 20% and 15% respectively.
(i) Allocation for Members Benefit
Besides dividend, co-operatives normally allocate part of their annual profit in the form of specific funds to improve the social well being of its members. It is observed that in almost all of the performing co-operatives have increased their allocation towards members benefit except for co-operatives under the services function. This increasing trend is probably in response to the higher profit recorded in the respective year (2008/2009).
However, the percentage increase in members’ allocation is higher compared to the increase in the profit experienced by the various function. For example, although the
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average net profit for the agriculture co-operatives grew 89%, the average growth in the amount allocated for members benefits soared more than 100%.
Similarly, the housing co-operatives on average allocated 33% of their profits for members, compared to the their average growth of 18%. The credit, agriculture and industrial co-operatives are the top three functions with the biggest amount of contribution to members’ benefit fund. The amount of allocation for the agriculture co-operatives also shows an upward trend, in line with the increase in it’s income and net profits. On the contrary the services co-operatives allocation to members’ benefit increased a slight 4% despite recording a average growth of 24% in income and 12% in net profit.
(j) Members Participation
The participation of members in the selected co-operatives are gauged by assessing the percentage of their attendance at the annual general meeting(AGM) and the extent of members patronizing the co-operative activities. More than 50% of the selected co-operatives stated that 81% to 100% of their members attended the AGM. Meanwhile 25 co-operative (28.1%) declared that only 61% to 80% of their members attended the AGM whilst another 12 co-operative (13.5%) indicated that the attendance rate is between 41% to 60%. Only 4 co-operative (4.5%) reported poor rate (21% to 40%) of members attendance at AGM.
Meanwhile as to the estimated level of members’ patronage towards the services and products offered by the co-operatives, 57 co-operatives (64%), indicated a very high to high level of members patronage. On the other hand 26 co-operative (29.2%) stated that members’ patronage is in the medium level while only 6 co-operative indicates that they received poor response from the members’ towards the services and product offered by the co-operative.
Factors Perceived to Influence the Performance of Co-operatives
This section presents the demographic characteristics of the respondents surveyed and the respondents perception on the factors that have influence the success of their co-operatives. A total of 567 questionnaires were collected from individual respondents (Board Members) representing the 89 selected performing co-operatives.
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(a) Profile of Respondents
A majority (80%) of the respondents surveyed were male. A total of 57.1 percent of the respondents were between 41 years old to 60 years old while another 27.3 percent were 61 years above. A further 14.3 percent of the respondents were between 21 years old to 40 years old. Only 7 or 1.2% of the respondents surveyed were below 20 years old. In general, the age of most of the board members of the selected performing co-operatives is between 41 to 60 years old.
Table 12: Respondents’ Profile by Age
Age
Frequency
Percentage (%)
20 years and below
7
1.2%
21 – 40 years
81
14.3%
41 – 60 years
324
57.1%
61 years above
155
27.3%
Total
567
100%
Out of the 567 respondents, a total of 249 of the Boards Members were elected less than 5 years while another 39.2 percent has served the co-operatives between 6 to 15 years. A further 16.4 percent of the Board Members has served the co-operatives for more than 15 years.
Table 13: Respondents’ Profile by Years of Experience
Years of Experience
Frequency
Percentage (%)
5 years and below
249
43.9
6 to 15 years
222
39.2
16 to 25 years
62
10.9
26 to 35 years
17
3.0
35 years above
14
2.5
Total
567
100
In terms of educational background it is found that 58.6% of the respondents possessed secondary level education and below while 41.4% of the respondents have acquired tertiary education and above.
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Table 14: Respondents Profile by Qualification
Educational Qualification
Frequency
Percentage (%)
Secondary Education
332
58.6
A Level / Matriculation and Equivalent
30
5.3
Diploma
79
13.9
Bachelor Degree
83
14.6
Master Degree
26
4.6
Doctorate / PhD
6
1.1
Professional Qualification
11
1.9
The table below indicate the number of respondents who have attended job related training programs for the year 2007, 2008 and 2009. A total of 264 respondents in 2007, 260 respondents in 2008 and 268 respondents in 2009 attended 1 to 3 training program per year. It was however found that a large number of the respondents have not attending any job related training programs for the past three years.
Table 15: Job Related Training Programmes Attended
Total Course
2007
2008
2009
Not attending any course
245
250
243
1 – 3 courses
264
260
268
4 – 6 courses
47
45
47
7 – 9 courses
4
7
4
10 courses above
7
5
5
(b) Factors Perceived to Influence the Performance of Co-operatives from the Perspective of the Board Members
To identify the important factors perceived by the board members to have influenced the success or performance of their co-operatives, the exploratory factor analysis was used. The suitability of data for factor analysis was assessed, using the correlation matrix and the Kaiser-Meyer-Olkin measure (KMO). An examination of the correlation matrix indicated that correlation between a considerable number of the variables exceeded 0.30, while the KMO value was 0.922 exceeding the recommended value of 0.6 (Pallant, 2002) and the Barlett’s Test of Sphericity reached statistical significance. The data was thus deemed suitable for factor analysis.
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A total of twenty items were then subjected to factor analysis using SPSS for Windows (version 15). Factoring ceased when all Eigenvalues of greater than one were obtained and when a set of factors explaining a substantial percentage of the total variance was achieved. An accepted method of interpretation of factor loadings is to regard significant any variable or item with a loading of 0.4 or greater as associated with the appropriate factor (Hair, Black, Babin, Anderson and Tatham, 2006). Hence 0.4 was used as the cut-off point to determine the number of items that loaded on to a factor.
The factors were extracted by using principal component method with a varimax rotation. The rotated component matrix presented in Table 16 revealed three factors with all items or variables showing strong loadings (more than 0.4) and loading substantially on only one factor or component. The three factor rotated explained a total of 54.38 percent of the variance, with Factor 1 contributing 20.55 percent, Factor 2 contributing 18.0 percent and Factor 3 contributing 15.8 percent. The seven variables or items with strong loadings on Factor 1 explained 81.65% of the variance in this factor, while another seven variables that loaded strongly on Factor 2 explained 83.1 percent of the variance in the second factor. Lastly, the six variables that loaded strongly on Factor 3 explained 69.15 percent of the variance in this factor.
Reliability analysis using Cronbach’s alpha was carried out to examine the internal consistency of the three factors. As a general guideline, Cronbach’s alpha coefficient of at least 0.7 is considered acceptable Specifically, the Cronbach’s alpha coefficient values for the three factors were 0.878, 0.844 and 0.761 as shown in Table 16, indicating that all three factors had good reliability.
The three factors were also labelled to aid interpretation. The seven items that loaded strongly, using factor loading of at least 0.4 as proposed by Hair et al. (2000, 2002). The Factor 1 relate to the competencies, required by the management team to manage performing co-operatives successfully specifically, experience, skills, efficiency, continuity of service and cooperation among the board and employees. As a result this factor was named, ‘Managerial Competency’. The seven items had factor loadings ranging from 0.437 to 0.848. The three items with very high loadings of more than 0.8 and are very closely related to the factor, are experienced, skilled and efficient senior staff of co-operatives. This finding underscores the importance of co-operatives employing competent staff in order to be successful.
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Table 16: Factors Perceived to Influence Performing Co-operatives
Variable/Item
Factor
1 Managerial Competency
2 Effective Leadership
3 Support
1
Experienced senior* staff of the co-operative
0.848
2
Skilled senior staff of the co-operative
0.834
3
Efficient senior staff of the co-operative
0.801
4
Continuity of managers / supervisors
0.634
5
Cooperation between board members and staff of the co-operative
0.595
6
Experienced board members of the co-operative
0.589
7
The co-operative emphasises education and training
0.437
8
Honest, trustworthy and transparent board members and senior staff of the co-operative
0.781
9
The co-operative maintains good financial management
0.685
10
Visionary board members and senior staff of the co-operative
0.678
11
Board members and senior staff of the co-operative who can deal effectively with problems and challenges
0.674
12
Board members and senior staff of the co-operative who can communicate effectively
0.660
13
Cooperation among board members
0.595
14
Board members and senior staff with positive attitude
0.456
15
Members’ attendance at the Annual General Meeting
0.715
16
Support from the relevant agencies such as SKM, MKM and ANGKASA
0.618
17
Diversification of the co-operative’s activities
0.609
18
Sufficient internal funds (shares, subscriptions)
0.573
19
Members’ support towards the co-operative’s products or services
0.549
20
Continuity of Board Members
0.543
Eigen values
4.111
3.600
3.165
% of variance explained
20.555
18.000
15.823
Cumulative variance explained (%)
20.555
38.555
54.378
Reliability (Cronbach’s Alpha)
0.878
0.844
0.761
*Senior staff refer to manager, executive and supervisor employed by the co-operative
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Factor 2 also had seven items with strong loadings ranging from 0.456 to 0.781. These items relate to leadership traits and skills that were regarded as important for board and senior staff of performing co-operatives to possess. Specifically, the items pertaining to leadership traits that loaded strongly were honesty, trustworthiness, transparency, being visionary and positive attitude. In addition, items concerning leadership skills that loaded strongly on the second factor were maintaining good financial management, ability to deal effectively with problems and challenges, ability to communicate effectively and cooperate amongst the board members. Accordingly, the Factor 2 was thus referred to as ‘Effective Leadership’.
Finally, the third factor had six items with strong loadings ranging from 0.543 to 0.715. The six items are concerned with various types of support given by members, related government agencies and board members. In particular members’ support is in the form of attendance at the co-operatives’ annual general meetings, patronising the products or services and contributing sufficient funds in the form of share capital and subscriptions. Meanwhile Board members’ support would be in the form of continuity of board positions and ensuring co-operatives’ activities are catered to the differing needs of members. Support from the government agencies related to co-operative development such as the Malaysian Co-operative Societies Commission (MCSC), Co-operative College of Malaysia (CCM), ANGKASA, Majlis Amanah Rakyat (MARA), Federal Land Development Authority (FELDA), Federal Land Consolidation and Rehabilitation Authority (FELCRA), Rubber Industry Smallholders’ Authority (RISDA) and Bank Kerjasama Rakyat in the form of loans, grants, training, advisory/consultancy services and technical assistance is also considered as important elements. This factor was therefore named ‘Support’.
Respondents’ opinions on the level of importance of the three perceived factors associated with performing co-operatives as well as the level of importance of the corresponding variables within each factor were obtained, using a 5-Point Likert type Scale ranging from 1 (not important) to 5 (very important). For the purpose of analysis, it was decided that if a factor or variable has a mean score of at least 4 on the Likert type scale means the respondents perceive the factor or the variable to be important for the successful performance of co-operatives in Malaysia. The resulting mean scores for the three factors and their variables are shown in descending order in Table 17.
As shown, the factor Effective Leadership was perceived as the most important factor with the highest group mean score of 4.62, followed by the factor, Managerial
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Competency with a group mean score of 4.39. Subsequently, the factor, Support was perceived to be the third most important factor with a group mean score of 4.34.
Within the factor, Effective Leadership, all seven items or variables were perceived to be important as indicated by their individual item mean scores which exceeded 4 and ranged from mean scores of 4.49 to 4.81. Incidentally, the first item in the Effective Leadership factor, ‘honest, trustworthy and transparent board members and senior staff of the co-operative’, with the highest mean score of 4.81 was perceived to be the most important variable within the first factor as well as among the twenty variables. Further, the item, ‘the co-operative maintains good financial management’ in the first factor was perceived to be the second most important variable (mean score of 4.77) within the factor as well as among the twenty variables included in the study.
Both these items reflect the perception that it is very important to have good governance in the management of co-operatives to ensure that they are successful. The item in the Effective Leadership factor, ‘cooperation among board members’ had the third highest mean score of 4.65 and was perceived to be the third most important variable. As leaders and policy makers in co-operatives, it cannot be denied that board members should have good cooperation amongst themselves so that the co-operatives’ objectives are achieved successfully.
All seven variables or items in the factor Managerial Competency were also perceived to be important based on their high individual item mean scores, ranging from 4.15 to 4.59. The item, ‘cooperation between board members and staff of the co-operative’ had the highest item mean score of 4.59 in the factor, followed by the item, ‘efficient senior staff of the co-operative’ with the second highest mean score of 4.53 in the Managerial Competency factor. The item with the third highest mean score of 4.40 within this factor is ‘experienced senior staff of the co-operative’ and finally, ‘skilled senior staff of the co-operative’ came close with having the fourth highest mean score of 4.37.
Based on the individual item mean score of 4.59, ‘cooperation between board members and staff of the co-operative’ was perceived to be the most important item in the Managerial Competency factor. One possible reason for this perception is that board members are the policy makers of co-operatives and it is vital that they have good cooperation with staff to ensure that policies are implemented efficiently and effectively for the benefit of the co-operatives. Moreover, efficient, experienced and skilled senior employees were perceived to be more important than experienced board members. A reason for this perception could be that generally, board members
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Table 17: Ranking of Factors Perceived to Influence Success of Performing Co-operatives
Factor No / Label
Group Mean Score
Items/Variables
Individual Item Mean Score
1 (Effective Leadership)
4.62
Honest, trustworthy and transparent board members and senior staff of the co-operative
4.81
The co-operative maintains good financial management
4.77
Cooperation among board members
4.65
Visionary board members and senior staff of the co-operative
4.58
Board members and senior staff of the co-operative who can deal effectively with problems and challenges
4.57
Board members and senior staff with positive attitude
4.51
Board members and senior staff of the co-operative who can communicate effectively
4.49
2 (Managerial Competency)
4.39
Cooperation between board members and staff of the co-operative
4.59
Efficient senior staff of the co-operative
4.53
Experienced senior staff of the co-operative
4.40
Skilled senior staff of the co-operative
4.37
Experienced board members of the co-operative
4.36
The co-operative emphasises education and training
4.35
Continuity of managers / supervisors
4.15
3 (Support)
4.34
Support from the relevant agencies such as SKM, MKM and ANGKASA
4.54
Sufficient internal funds (shares, subscriptions)
4.54
Members’ attendance at the Annual General Meeting
4.46
Table 17: cont.
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Table 17: cont.
Factor No / Label
Group Mean Score
Items/Variables
Individual Item Mean Score
Diversification of the co-operative’s activities
4.19
Members’ support towards the co-operative’s products or services
4.18
Continuity of Board Members
4.15
serve co-operatives on a voluntary capacity unlike senior staff who are employed full time to manage the business operations of co-operatives. Hence the perception that efficient, experienced and skilled senior staff are more important than experienced board members for co-operatives to perform well.
The third factor, Support has six items or variables, all of which were perceived to be important, based on their high individual item mean scores, ranging from 4.15 to 4.54. Two items in this factor, ‘support from the relevant agencies such as MCSC, CCM and ANGKASA and ‘sufficient internal funds (share and subscriptions)’ received the highest mean score of 4.54 and were thus perceived to be the most important variables in this factor.
The item with the second highest mean score of 4.46 in the Support factor was ‘members’ attendance at the annual general meeting’. The fact that support from the government agencies related to co-operative development was perceived to be very important denotes that co-operatives are still dependent on the government for their growth. In addition, members’ contribution in the form of shares and subscriptions as well as, their attendance at the annual general meetings suggest that members’ support is perceived as being crucial for co-operative success. By attending annual general meetings, members are able to participate directly in making decisions concerning the activities of their co-operatives.
CONCLUSION
The findings from this study indicates that a majority of the performing co-operatives are those registered under the consumer, agriculture, credit and service function. A more detailed analysis on the attributes of a selected sample of 89 performing co-operative reveals that most of the large size co-operatives is involved in credit function while a majority of the medium size co-operative are involved in agriculture
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function. The smaller size co-operative are primarily involved in consumer and credit function, whilst most of the selected micro size co-operative is involved in the services and consumer function.
Overall, more than half (56%) of the selected performing co-operatives surveyed has been in operations for more than 20 years. A total of 76.4% of the selected performing co-operatives have a total membership of 1000 and below. On the other hand the larger and more longer established credit and housing co-operatives generally have larger membership size, some having more than 10,000 members. The larger and medium co-operatives also tend to have higher capacity to hire executive and managerial level employees. Although a few small and micro co-operatives have employees at the executive and managerial level, they are more inclined to engaged employees at the clerical level.
Although the selected performing co-operatives operates a number of diverse activities ranging from financial, plantation, construction to service based activities, most of them focused only on 1-2 core business activities. To run their business operations, almost all of the performing co-operatives have received some form of assistance and support from different organizations, financially or otherwise.
The findings also indicates that the micro co-operatives are found to have paid the highest average dividend payouts (19%) followed by the large co-operatives (16%). The higher dividend payout rate is probably given out by micro co-operatives as it involves a smaller monetary amount and membership compared to that of large co-operatives. Small co-operatives annual average dividend payout is 15% while the medium co-operatives on average paid out 13% dividends to its members. It is also observed that there is an increasing trend in the amount of allocation made towards members benefit. In fact the percentage increase in members’ allocation is higher compared to the increase in the profit experienced by the various function. Feedback from the respondents also indicates that overall the participation of members, in the form of attendance at the annual general meeting (AGM) and the extent of members patronizing the co-operative activities was satisfactory.
The key findings from this study, drawn out from the performing co-operatives Board Members viewpoint are three main factors deemed to be influential to the success of their co-operatives; managerial competency, effective leadership and support. In terms of importance, effective leadership was perceived as the most important factor, followed by the factor managerial competency. Support in various forms received
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by co-operatives from different entities are considered as the third most important factor to have influenced performance.
Successful co-operative creation often depends on the capability, commitment and support of leaders who are actively engaged in the operations of the organization. While the personality, education and management experience of these leaders may differ, they have commitment, vision and determination in common. Whoever they are, visionary and effective leaders are regarded as significant factors which could influenced the success of performing co-operatives. Therefore, to be successful, co-operative leaders need to possess specific leadership traits such as honesty, trustworthiness, transparency, charismatic and have the ability to shape opinion and their vision with co-operative members. Equally important, co-operative leaders need to maintain good financial management, have the ability to deal effectively with problems and challenges, capable of communicating effectively and cooperate amongst the board members. Faced by the challenging business environment, co-operative leaders must also possess entrepreneurial competencies and business related skills, or have access to those skills in their key employees.
Competent management team which comprise of the Board Members, managerial and senior staffs is viewed as central to the achievement of the performing co-operatives. Although the relationship between the board and the manager of a co-operative is complex and dynamic, their roles should be clear, the board sets broad policy and strategy, the manager implements. Thus, to manage co-operatives successfully the management team specifically requires related work experience, skilled and efficient senior staff, continuity of service and strong cooperation among the board and employees. A competent management team that is experienced in the appropriate field, trained and able to communicate well internally and with the members was also deemed important to the success of co-operatives.
Finally, support given by members, related government agencies and board members are deemed to be important to the success of these performing co-operatives. Members’ support in the form of attendance at the annual general meetings, patronizing the products or services and contributing sufficient funds whilst continuity of board positions are essential factors that help sustain the performance of co-operatives. Consecutively, support from agencies and related organization in the form of loans, grants, training, advisory/consultancy services and technical assistance would also be valuable to the development and accomplishment of a co-operative.
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Summing up, drawn from the findings of this exploratory study is a proposed model for the factors influencing the performance or success of co-operatives. Further research, both qualitative or quantitative in nature could be carried it to investigate these initial findings influence on the performance or success of co-operatives.
ORGANISATIONAL ATTRIBUTES
VISIONARY AND EFFECTIVE LEADERSHIP
MANAGEMENT COMPETENCY
SUPPORT AND ASSISTANCE
Figure 2: Proposed Model “Factors Influencing the Success of Co-operatives”
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AUTHOR’S BACKGROUND
Nurizah Noordin is the Director of the Accounting and Finance Centre at the Co-operative College of Malaysia (CCM). She holds a Masters in Business Administration (Finance) from Universiti Putra Malaysia, Advanced Diploma and Diploma in Business Studies from Universiti Teknologi MARA, Malaysia. She joined CCM in 1983 and is an experienced trainer in financial management, accounting, auditing and business management. She also provides advisory service to co-operatives in these areas. In addition she has undertaken a number of research studies related to co-operative management.
Dr. Sushila Devi Rajaratnam currently is the senior lecturer at the School of Hospitality Management, Taylor’s University. She holds a Ph. D. in Management from Multimedia University, Malaysia, Masters in Business Administration and Bachelor in Economics with Honours (Business Administration) from University of Malaya, Malaysia. Besides teaching, has undertaken a number of research studies and written journal articles related to Human Resource Management and Organizational Behavior.
Mohd Shahron Anuar Bin Said has been a lecturer with the Accounting and Finance Centre, Co-operative College of Malaysia (CCM) since 2004. He holds a Masters in Business Administration and Bachelor in Accounting from Universiti Kebangsaan Malaysia. Besides being an experienced lecturer in accounting, auditing and financial management, he provides advisory service to co-operatives and has been involved in research studies in these areas.
Rafedah Juhan joined the Co-operative College of Malaysia (CCM) in 2004 and is an experienced lecturer in accounting, auditing and financial management. She holds a Masters in Business Administration from Universiti Malaysia Sabah and Bachelor of Accounting from Universiti Kebangsaan Malaysia.
Farahaini Mohd Hanif has been with the Accounting and Finance Centre, Co-operative College of Malaysia (CCM) since 2006 and is a lecturer in accounting, auditing and financial management. She holds a Masters in Accounting and Bachelor in Accounting with Honours from Universiti Teknologi MARA, Malaysia.
Malaysian Journal of Co-operative Studies


INDICATORS OF GOOD GOVERNANCE PRACTICES IN SELF EMPLOYED WOMEN’S SACCOS UNION IN ADDIS ABABA, ETHIOPIA – AN EXPLORATORY STUDY
M. Karthikeyan
Hawassa University, Ethiopia
ABSTRACT
The co-operative governance concept relates to the quality of the relationship between the government and the citizens ie., the co-operative system and its members for whom it exists to serve, promote and protect. The indicators for good governance in co-operatives are compiled with corporate culture and ethical climate in co-operatives. The present study is a unique attempt in Ethiopian context. The SACCOs are flourishing like anything and these financial co-operatives should think of good governance practices. The study attempts to analyze the indicators of good governance practice in selected self-employed women SACCOs union located at Addis Ababa. Survey method was adopted. The major focus was different stakeholders of the union - members, board members, representative of member co-operatives, paid management. Two stage sampling procedure was employed for the study. Except members of the SACCO union, other stakeholders were selected on census basis i.e., all board members, all representatives from member co-operatives, all paid management staff were selected. Semi-Structured Interview Schedule was administered among sample stakeholders. From among members 4 FDGs were conducted on certain governance issues and Good Governance Issues Report Card also administered to grade the governance indicators. The detail regarding governance issues report card is dovetailed in analysis part of this research paper.
The Self-Employed Women’s Savings and Credit Co-operatives Union Ltd is established in June 2005 by 12 primary co-operatives. Currently, the union has 19 co-operative members with 4,200 individual members. The union is rendering services like, savings and credit to members, provision of loans like housing, school and group loans, administration of market shelters, organizing trade fairs, exhibition, bazaars, insurance service on loans, and administrating income generation ventures. As for governance of this union, the member representatives from primary co-operatives, board of management, members and employees have adequate knowledge about co-operatives and co-operative management. They adhere to the co-operative principles and values. They are practicing the four pillars of co-operative governance. They practice governance with good governance indicators. The results will be clearly seen in the full paper. The women SACCO union is an example of good governance model / framework. It can be a model women co-operatives union, which practice good governance for creating a better standard for other co-operatives in the country.


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BACKGROUND AND LITERATURE REVIEW
Governance is normally associated with the government. A State essentially consists of territory, population, government, and sovereignty. In the absence of any one of the above ingredients, the State would be incomplete, rather it will not be considered as a State. Governance characterizes a government, which is essentially a reflection of the quality of management by a set of people ordained with the powers and authority through codified or un-codified laws. The governance, therefore, implies the system and the way of regulating and managing an organization. The philosophy of democracy and egalitarianism brought in the concept of decentralization of powers. A large number of social, economic, cultural and political organizations and institutions came into existence as partners with the government in the delivery of goods and services to the population requiring their own systems and governance. Thus, the governance became a general concept of management and regulation.
A Co-operative society also on the analogy of a State has its defined area of operation (territory) is constituted by its members (population) on voluntary and mutual basis for their common good. It is managed by a board of directors (government) in accordance with its byelaws in consonance with the co-operative laws enacted by the State. Though a Co-operative society can’t be equated with the State as the sovereign power of State is absolute and which cannot be abrogated, yet some kind of autonomy within the over all frame work would be essential for any organization like a co-operative to discharge its obligations successfully (Bhagwati Prasad, 2003). A congenial environment with enabling legislation should, therefore, be the essential attribute of a government policy.
Co-operative Governance – A Historical Perspective
Cooperation emerged as an anti thesis of the exploitative tendency of the capitalism. Sir Robert Owen initiated a number of experiments for making co-operatives as an instrument of equitable economic order. Rochdale Pioneers also conceptualized the ethos and philosophy of cooperation and business rules. Over a period of time after the co-operatives were created, a need for some law was felt to regulate the working of these co-operatives. Thus, in Europe, the co-operative law was the creation of the co-operatives. Contrary to this, in most of the developing countries, the co-operatives were the creation of the co-operative law. This distinction is important to note to understand the relative concept of governance of co-operatives in Europe and other developing countries.
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Since the co-operatives in most of the Asian and African countries were established and promoted by the government as an agent of community development, the governments became active partners in the management and governance of co-operatives. In turn it also led to dependence on government syndrome. Role of the Registrar of Co-operative Societies (RCS) is of paramount importance in the governance of the co-operatives (Bhoria. K.S, 2002). The two main logics often advanced for the excessive government involvement in the working of the co-operatives are one, a lot of government money is involved in the co-operatives and, two, and the interests of the poor members and general public have to be safeguarded. In the Ethiopian context, the existing co-operative legislation and the government policy require a review for making it more member oriented, member driven, member friendly and business oriented. It is the governance of the entire co-operative sector, which should matter. The system of governance in the co-operatives including the size and composition of the board of directors need to be driven by the purpose and objective of the business. The right board of directors is the one that can best help to deliver the benefits to the members, which are at the root of the organization.
The availability of support services and the efficient mechanism of settlement of disputes of the co-operatives would also be essential for proper governance and functioning of the co-operatives. Good governance emerges through honest application of prevailing laws and respecting the spirit behind these laws. The overall system for the direction and management of the organization, encompassing all aspects of process from the members meetings to formulation and execution of the business policy constitutes the internal governance of co-operatives.
The government and co-operatives both are concerned with the welfare and well being of the people (Karthikeyan, 2008). They are not rivals to each other. They are partners in the process of social and economic development. The government has to undertake a number of initiatives and the measures to provide and secure right kind of governance to the co-operatives like, National Policy on Co-operatives, Task Force Co-operative Proclamation, towards self-regulation, etc.
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Co-operative Governance – Definition
Co-operative Governance is a pure democratic self-governance system of managing a co-operative entity based on and in complying with the principles, values and philosophy of cooperation through the appropriate and effective organizational structure with conducive culture and ethical climate, organizational machinery that includes management and administrative professionals at various levels / layers of functioning within the parameters of legal of provisions and policy framework of the government, keeping in view the prevailing socio-economic environment to change the administrative culture, management and control systems, and the mind-set and work culture of the members and work force of Co-operative enterprises.
The Author
The management of co-operatives has to be entrusted to the people who own and use the services of the society. The system of governance must reflect and reinforce cooperation (David Griffiths, 2003, accessed from: http://www.australia. coop/why_fail). The autonomy of the society needs to be maintained. Bureaucratic control of co-operatives manifests itself (i) when co-operatives are initiated by the government and not by the members themselves, (ii) when government implements economic and social development programmes through co-operatives, (iii) when government taking up the role of watch-dog restrict the powers of the co-operatives through nomination of board, supersession of board etc. But the ultimate control must remain in the hands of the members and the system of governance should ensure that it does.
Co-operative Governance Structure
Co-operatives are basically democratic institutions and for their genuine working, it is essential that all the democratic principles and process are followed in letter and spirit. It has to be ensured that the election of the board, its office bearers, meetings of the board and general body are held regularly and timely. This helps in better answerability and participatory management. The co-operative governance structure includes all the role players viz., government, sponsored organizations, federations and the internal governance system (Daman Prakash, 2004).
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Co-operative Governance Structure
Co-operative enterprise
Co-operative Governance Framework
As a matter of fact, the purpose and objectives of co-operative provide the framework for co-operative governance. Co-operatives are organized groups of people, jointly managed and democratically controlled enterprises. They exist to serve their members and to produce benefits for them. The member therefore is the focus and the governance should be member oriented. It should therefore, aim at ensuring performance and promotion of members’ interest by connecting the members, their elected representatives, management and employees, strategies and decision-making processes. Good co-operative governance is greater owner involvement in direction and control. It implies self-regulation, self-reliance, sustainability and self-discipline. The co-operative governance should essentially be based on the values and principles of cooperation as enunciated by the ICA. Therefore, any framework for co-operative governance should take into consideration these values and principles. These values and principles lay down the philosophy and concept of co-operatives and provide the overall governance framework for the working of co-operatives.
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Co-operative Governance Framework
Accountability Answerability
Predictability Co-operative Governance Transparency
Participation
To put more precisely and simply, governance means the way those with power use that power. The concept, therefore, has political and economic dimensions. The instrumental nature of governance implies that the four governance pillars are universally acceptable and applicable regardless of the economic orientation, strategic priorities, or policy choice of the government in question. The co-operative governance framework encompasses the four pillars as key components of governance viz., accountability, transparency, predictability and participation (Daman Prakash, 2004).
Accountability is the capacity to call officials and members of co-operatives to account for their actions. Effective accountability has two elements viz., answerability and consequences without which accountability is only a time-consuming formality. In addition, both internal and external accountability are needed.
Transparency entails low-cost access to relevant information. Reliable and timely economic and financial information is a must for the public. It is essential not only that information be provided, but also that it be relevant and understandable. Both the public and members and other external authorities should be known the economic and financial information.
Predictability results primarily from laws and regulations that are clear, known in advance and uniformly and effectively enforced. Predictability of government economic actions is also needed as an indicator on which the co-operative sector and other sectors can rely to make its own production, marketing and investment decisions.
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Participation is needed to obtain reliable information and to serve as a reality check and watchdog for government action. Members’ participation in all respects and aspects of the helm of affairs of the co-operatives is needed and emphasized for good governance in co-operatives.
The well-known agency problems resulting from the separation of ownership from control (Berle & Means, 1932; Jensen & Meckling, 1976) still prevail in firms worldwide. Recent research (Core et al., 1999) suggests that firms with weaker governance structure have greater agency problems; that firms with greater agency problems allow managers to extract greater private benefits; and that firms with greater agency problems perform worse. Specifically in Asia, it has been shown that both before (Joh, 2003) and after (Mitton, 2002) the Asian financial crisis in1997, firms that paid heed to good corporate governance practices fared better and provided greater protection to shareholders, especially the minority shareholders.
The literature on corporate governance examines the efficacy of alternative structures of ownership and the boards of directors and various other governance structures. While there is increasing evidence of the failure of certain governance structures to control and motivate managers to increase firm performance, the empirical evidence to date is mixed and gives little coherent evidence for the shape of an optimal governance structure. One explanation is that existing theories have not been sufficiently complete to include all major determinants of good corporate governance. Perhaps there will never be one optimal governance structure because no two firms, two markets, two legal regimes or two cultures are exactly the same, resulting in highly complex issue of corporate governance. Ultimately governance structure is determined by a combination of the above factors and their dynamics. A more likely and useful outcome of the on-going debate and research, perhaps, might be the increasing focus on shareholder interest and concerns, and identification of some widely accepted guiding principles, rather than trying to find some specific mechanisms which are universally applicable, for effective corporate governance.
Research studies on co-operative governance are little and the present study is a unique attempt in Ethiopian context. The SACCOs are flourishing like anything and these financial co-operatives should think of good governance practices. The study attempts to analyze the indicators of good governance practice in selected self-employed women SACCOs union located at Addis Ababa.
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OBJECTIVES OF THE STUDY
The study objectives are:
• To examine the existing governance practices of the sample SACCO union;
• To identify and analyze the indicators of good governance through Governance Report card; and
• To recommend a design of good governance framework for the SACCO union.
METHOD
The study was undertaken in Addis Ababa city of Ethiopia. Survey method was adopted. The major focus was different stakeholders of the union and member co-operatives. Two stage sampling procedure was employed for the study. The first stage was, as for study units, the Self Employed Women SACCO Union, located in Addis Ababa, and all its member co-operatives (20) were the sample for the study. At the second stage, different stakeholders – members, board members, representative of member co-operatives, paid management were selected. Except members of the SACCO union, other stakeholders were selected on census basis i.e., all board members (7); one representative from each member co-operative (20); and all paid management staff (17) were selected. As for members, two members from each member co-operative were selected as representatives and FGDs were conducted on certain governance issues. Semi-Structured Interview Schedule was administered among sample stakeholders. FGDs were conducted among members of the SACCO union to explore information on governance issues. Apart from these, Good Governance Issues Report Card was used to elicit more information on governance practice of the Union for grading governance indicators. The collected data from management committee members, representatives of member co-operatives and employees were processed and results were tabulated using simple percentage. Since the sample size is very small sophisticated statistical tools were not used. From among members 4 FDGs were conducted on certain governance issues and Good Governance Issues Report Card also administered to grade the governance indicators. The detail regarding governance issues report card is dovetailed in analysis part of this research paper.
MAJOR FINDINGS
Profile of Union
The Self-Employed Women’s Savings and Credit Co-operatives Union Ltd is established in June 2005 by 12 primary co-operatives. The vision statement of the
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union is: To see strong co-operative movement in Ethiopia emerging as a major instrument for achieving gender equality and poverty alleviation. The mission statement is: To improve the living condition and ensure sustainable development of self-employed women through provision of full-fledged support to the women’s co-operatives, transform co-operatives into strong financial institutions and strengthen the co-operative movement by working together with local, national, regional and international institutions.
The union has the objectives: To improve the performance of the member co-operatives by providing financial and non-financial services; to ensure sustainable development when the supporting NGOs phase out; to enhance the society’s ability in rendering adequate service to their members; to find solutions collectively for problems that member co-operatives cannot solve; to make sure that co-operatives are governed by the spirit of co-operative regulation; to enhance the co-operative movement in Ethiopia; and to mobilize members capital for mutual benefits.
Currently, the union has 20 co-operative members with 6,002 individual members. The total number shares held by member co-operatives are 137 worth of ETB. 137000. The union is rendering services like, savings and credit to members, provision of loans like housing, school and group loans, administration of market shelters, organizing trade fairs, exhibition, bazaars, insurance service on loans, and administrating income generation ventures. Consecutive and timely education and training on co-operative principles, values, accounting, etc are also services rendered by the union.
Currently 7 members co-operatives and 59 individual borrowers got gross loan of ETB.102130; collection made by the union is ETB.110826.72.; the outstanding portfolio is ETB. 981303.28 and the repayment rate is 98.0 percent. The cumulative profit is ETB. 87840.52. Total assets position is ETB. 1820000, net saving ETB 65450 and the revolving fund ETB. 994000.
Governance Practices in the Union
Governance Structure of the Union
The General Assembly - The General Assembly comprises all members of the Union. According to the issues, the Assembly convenes regular meetings or special sessions. Attendance at regular meetings (usually 85 - 90 percent) is generally high when members have been informed in time, or when meetings are called to discuss amounts to be purchased or to divide up the year’s profits. The personal reasons like
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home activities, small business of the members are the most common reasons for absences at these meetings. The management committee members usually approach the members at their home and enquire about the reasons for not attending the meetings, and insisting them to attend the meetings regularly without fail.
There are seven management committee members; there is a control committee also. Apart from these committees, there is an advisory board, which plays a key role in conflict mediation. As respected members of the union, this group provides a type of moral energy and helps to build the group’s cohesion and ensure that each member respects their responsibilities.
The union has a general manager to manage the daily routine affairs of the union. The general manager is delegated to undertake regular business activities and he is responsible for planning, implementation of the activities in consultation with and approval of the board. There is a secretary and four major wings as departments: finance and administration, co-operative support (to support member coops), business development and loan committee.
Decision-making in the union follows democracy and consensus decision-making. The process is democratic and consensual, but must be accompanied and monitored to conform to more formal governance processes in order to assure transparency and a written record. The union has workable mechanisms such as written minutes; payment of membership fees, bookkeeping and accounting reports of meetings and travel. This type of balance and transparency allows the union to confront more successfully common organizational difficulties and to practice good governance.
As for governance of this union, the member representatives from primary co-operatives, board of management, members and employees have adequate knowledge about co-operatives and co-operative management. They adhere to the co-operative principles and values. They are practicing the four pillars of co-operative governance. The results out of the survey conducted among management committee members, representatives of member co-operatives and employees (manager and other paid employees) are discussed hereunder.
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Concern about the Co-operative principles and values – Co-operative principles and Values are the basic guidelines to be followed by co-operatives. The following Table depicts a clear picture on how the stakeholders concern about co-operative principles and values and practice the same.
Table 1: Level of Concern about practice of Co-operative Principles and Values
Level of Concern
Respondent Category
Number and Percentage of Respondents
Total
High
Moderate
Low
Management Committee Members
6 (85.71)
1 (14.29)
0
7 (100.0)
Representative of Member Coops
17 (85.0)
2 (10.0)
1 (05.0)
20 (100.0)
Employees
9 (52.94)
4 (21.53)
4 (21.53)
17 (100.0)
Figures in brackets are percentages to row total
As for the level of concern about the practice of co-operative principles and value, the majority (85.71%) of management committee members and 85.0 percent of representatives of member primary co-operatives have high level of concern, and only 52.94 percent of employees have high level of concern about the practice of co-operative principles and values. The reason could be that the employees they concentrate on their work rather than practicing co-operative principles and values. The women SACCO union is being practicing co-operative principles and values for good governance system.
Concern about the Co-operative Governance Pillars – The co-operative governance pillars have to be adhered/adopted for having good governance system in co-operatives. The following Table shows the results out of the survey among management committee members, representatives of member co-operatives, and employees on the concern about the practice of pillars of co-operative governance.
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Table 2: Level of Concern about practice of Pillars of Co-operative Governance
Level of Concern
Respondent Category
Number and Percentage of Respondents
Total
High
Moderate
Low
Management Committee Members
Participation
7 (100.0)
0
0
7 (100)
Transparency
6 (85.71)
1 (14.29)
0
7 (100)
Predictability
5 (71.44
1 (14.28)
1 (14.28)
7 (100)
Accountability
6 (85.71)
1 (14.29)
0
7 (100)
Representative of Member Coops
Participation
16 (80.0)
2 (10.0)
2 (10.0)
20 (100)
Transparency
14 (70.0)
2 (10.0)
4 (20.0)
20 (100)
Predictability
14 (70.0)
2 (10.0)
4 (20.0)
20 (100)
Accountability
15 (75.0)
1 (05.0)
4 (20.0)
20 (100)
Employees
Participation
12 (70.59)
3 (17.65)
2 (11.76)
17 (100.0)
Transparency
8 (47.06)
5 (29.41)
4 (21.53)
17 (100.0)
Predictability
8 (47.06)
3 (17.65)
6 (35.29)
17 (100.0)
Accountability
10 (58.82)
4 (21.53)
3 (17.65)
17 (100.0)
Figures in brackets are percentages to row total
The survey revealed that the level of concern about the practice of pillars of co-operative governance among management committee members higher than that of representatives of member co-operatives. As for level of concern about the practice of participation, it is revealed that cent percent of the management committee members have high concern; because they believe in participation leads to success and good governance. As for transparency and accountability, except one management committee member all others have high concern; predictability only 5 (71.44%) out of 7 members has high concern. Among representatives of member co-operatives, 80 percent have high concern about the practice of participation as a pillar of governance; transparency and predictability 70 percent; and accountability 75 percent as high concern. The employees have moderate and low level of concern about transparency, predictability and accountability; but somewhat high concern about the practice of participation as a pillar of governance. The general manager
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as an employee has high concern about the practice of all pillars of governance whereas all other employees (secretarial and sub staff) have moderate and low level of concern except a few with the concern about participation.
At the outset, this women SACCOs union is adhering to co-operative principles and values; has more concern about the practice of pillars of co-operative governance.
Co-operative Good Governance Indicators
Good governance is good government. The co-operative governance concept relates to the quality of the relationship between the government and the citizens ie., the co-operative system and its members for whom it exists to serve, promote and protect. The indicators for good governance in co-operatives compiled with corporate culture and ethical climate in co-operatives would be: the awareness of the leaders and members about the principles, philosophy and the basic values of cooperation; the difference between co-operatives and other kinds of organizations; the consciousness of the board members about their duties and responsibilities; the extent of delegation of powers to the chief executives; the smoothness of the communication channels between the chief executive and the board, between the chief executive and members, and members and board; the accountability of the elected representative and professional managers; the accountability and answerability of members; the level of transparency in the decision making process; participation of members in all respects of the helm of affairs of the co-operatives; the aim of attaining the objectives of the co-operative enterprise; and the relationship with the external environmental factors which influence the operations of the organization.
Governance Issues Report Card
The Governance Issues Report Card was administered among the members (both individual member of the union and selected members from primary member co-operatives) of the women SACCOs union regarding certain issues related to co-operative good governance. This good governance report card is the simplest and best way to participate and improve the governance system of co-operatives. This good governance issues report card can be administered among any type of stakeholder in co-operatives. During FGD among members, this card was used to elicit more information about the good governance indicators in women SACCOs union. Based on the issues on governance of women SACCOs union the results were explored from among members and given in Table 3.
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The scales used were grade 1 to grade 5. First grade is very good (85% - 100%); second grade is good (65% - 84%); third grade is fair (50% - 64%); fourth grade is poor (35% - 49%); and fifth grade is very poor (below 35%). Almost all the issues related to co-operative good governance as good governance indicators were chosen to administer the governance issues report card shown / listed out in the table. Under each governance indicator four issues were addressed and scores were given. The percentage was arrived by using the simple formula: Percentage = Total score / 20 X 100. After arriving at the percentage for each indicator of good governance, the overall grade for good governance was prepared and given in the Table.
Table 3: Overall Grade for Good Governance in Women SACCO Union
S.No
Good Governance Indicator
Grade (1-5)
%
1
Awareness of Leaders
2
81
2
Coop Principles & Values
1
88
3
Coop Proclamation
2
76
4
Participation (meeting / business)
1
90
5
Board Duty / Responsibility
2
83
6
Delegation to Manager
1
85
7
Transparency / Communication
1
89
8
Relationship (at all levels)
1
90
9
Decision Making
2
81
10
Consensus Orientation
1
86
11
Accountability
2
82
12
Planning, Implementation and Control
2
84
13
Strategic Vision
2
80
14
Social Responsibility
3
63
15
Elections / Voting (Democracy)
2
83
16
Committees
2
79
17
Risk Management
2
80
18
Financial Stability / Profitability
2
81
19
Recovery Rate
1
98
20
Auditing
1
95
21
Overall Governance
2
83
Source: Compiled from Survey
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The governance indicators such as, co-operative principles and values, delegation of power and authority to general manager, transparency, participation in meetings and business, relationship at all levels, recovery rate, consensus orientation, and auditing of accounts of the women SACCOs union have scored first grade (very good) while governance indicators like, awareness of leaders, co-operative proclamation, board duty and responsibility, decision making, accountability, planning, implementation and control, strategic vision, elections and voting, committees, risk management, and financial stability and profitability have scored second grade (good). The governance indicator social responsibility is given third grade (fair) because of moderate concern about social responsibility. The concentration on business may be the reason for this grade given by the members. The overall governance as an indicator of good governance has scored second grade (good).
By seeing the results out of Good Governance Issues Report card, it is indicated that the overall governance of the women SACCOs union is “good” and it is suggested that the union should work for getting the grade very good in co-operative governance.
During FGDs among members, they reported:
We participate in all affairs of our co-operatives at the maximum possible manner, if any absence in the meeting, the committee members along with the general manager used to come to members’ (absentees) house and enquire the reasons. Though we have appreciated the governance system of the union, some of the indicators like accountability, risk management, social responsibility, and decision-making need to be concentrated to increase the grade of such governance indicators. Otherwise the overall governance system is good in our co-operatives and union.
Design for Good Co-operative Governance in the Union
The union has adopted a mixed governance model i.e., traditional, policy governance, corporate, constitutional representational of models focus on structure and functions; representational theory (democratic model), stewardship theory (partnership model) of focus on motive and behaviour; and blend of both guideline based and principle based governance models. The general manager is delegated to perform the union’s activities. He is doing everything on behalf of the board by following stewardship theory (partnership model) based governance. He is committed and sincere in his duties and responsibilities. The employees are also supporting him in all tasks of the
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co-operative union. The union has committees for various purposes and they follow the traditional governance model, but sometimes they follow policy governance model where the committees are not given due weight. The primaries (20 coops) are members and their representatives are with board and various committees and in this context, the union adopts constitutional representational governance model. Democratic model of governance is adopted in terms of meetings, decision-making process, elections, etc. Moreover, the union follows more prescriptive and less prescriptive based on the situations and the context of doing business.
Observing this, the Women SACCOs Union may go for redesign its governance system thereby it can be more successful. The appropriate governance model can be evolved and designed to suit all situations and based on their business activities. The committees can be given powers and the general manager can be delegated with the same functions, and democracy must be maintained as such. They can blend and merge traditional, stewardship and democratic models and come up with a redesigned model for more success of the Women SACCOs union.
However, the women SACCOs union is an example of good governance model/ framework. Successful and sound business activities, participation of stakeholders, transparent financial management and co-operative governance influence the success of this Union. It can be a model women co-operatives union, which practice good governance for creating a better standard for other co-operatives in the country.
REFERENCES
Berle, A.A. & Means, G.C. (1932). The Modern Corporation and Private Property, Macmillan, New York.
Bhagwati Prasad. (2003). “Some Dimensions of Co-operative Governance”, The Cooperator, 41(3), NCUI, New Delhi.
Bhoria. K.S. (2002). “Co-operative Governance with particular reference to India”, The Cooperator, 40(6), NCUI, New Delhi.
Brian T. Oleson & Anders Bruun. (2001). “Governance and Co-operatives: The Search for a Model”, Conference paper - Mapping Co-operative Studies in the New Milennium, BC Institute for Co-operative Studies, Canada.
Chellappan, K. (1998). “Towards Image building by Co-operatives in the changing environment”, Khadi Gramodyog, 44(7), KVIC, Mumbai.
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Core, J.E., Holthausen, R.W. & Larcker, D.F. (1999). ‘Corporate governance, chief executive officer compensation, and firm performance’, Journal of Financial Economics, vol. 51(3): 371-406.
Daman Prakash. (2004). “Professionalization: Key for Good Governance in Co-operatives”, The Cooperator, 42(1), NCUI, New Delhi.
ICA. (1984). “Manpower Management and Co-operative Development”, Report of Regional Seminar, Kuala Lumpur, Malaysia (27th March – 9th April 1983), ICA-ROEC, New Delhi.
IFF Research (2004). A survey of Corporate Governance in Life Mutuals, Research Report for the Myners review of the governance of life Mutuals, HM Treasury, (UK).
Jensen, M.C. & Meckling, W.H. (1976). ‘Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure’, Journal of Financial Economics, vol. 3: 305-350.
Joh W.S. (2003). ‘Corporate governance and firm profitability: evidence from Korea before the economic crisis’, Journal of Financial Economics, vol. 68(2): 287-322.
Karthikeyan M. (2008). “Co-operative Governance – Training Manual”, England Africa Partnership Project (British Council, UK), Ambo University, Ambo, Ethiopia.
Mitton T. (2002). ‘A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis’, Journal of Financial Economics, vol. 64(2): 215-241.
Murray Fulton. (1996). “A Discussion Paper on Canadian Wheat Board Governance”, Centre for the Study of Co-operatives, UK.
Raija Itkonen. (1996). “My Views on Co-operative Corporate Governance”, Review of International Co-operation, 89(4): 20-24.
Steinar Sivertsen.(1996). “Governance Issues Seen from a Management Perspective”, Review of International Co-operation, 89(4): 34-36. Accessed from: http://www.wisc.edu/uwcc/ icic/orgs/ica/pubs/review/ICA-Review-Vol-89-No-4-199961/Governance-Issues-Seen- From-a-Management1.html.
Websites: http://www.ica.coop/ica/issues/governance.html http://www.australia.coop/cg_pub.htm http://www.australia.coop/why_fail www.co-operativegrocer.coop
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AUTHORS’ BACKGROUND
Dr. M. Karthikeyan is a lecturer at the Department of Co-operatives, Faculty of Business and Economics, Hawassa University, Ethiopia. He has been in the field of teaching and research for more than 15 years. He has published 19 books and more than 35 papers at the regional, national and international journals. He has participated and presented papers in the conferences, seminars and workshops at state, regional, national and international levels. M. Karthikeyan has associated in many major and minor research projects funded by national and international agencies such as England Africa Partnership Project, ILO-CoopAfrica Health Co-operative Feasibility Project (Core Committee member), and Kenya Training Needs Assessment Peer-Partnered Project (Ethiopia-Kenya) initiated by Lorna Young Foundation, UK. He initiated and succeeded in entering into MoU between Department of Co-operatives, Institute of Co-operatives & Development Studies, Ambo University and Euricse, Trento, Italy.
Malaysian Journal of Co-operative Studies


CABARAN KOPERASI PENGGUNA DALAM AKTIVITI PERUNCITAN DI SEMENANJUNG MALAYSIA
Norazlan Hasbullah, Noranita Mohd Nor, Mohd Faisal Shariff, Ju Samsuddin Safian & Arfizawati Abd Hadi
Maktab Koperasi Malaysia (Co-operative College of Malaysia)
ABSTRACT
This research studies the challenges faced by the Consumer Co-operatives in retail activities in Peninsular Malaysia. Questionnaires were distributed using the simple random sampling to obtain the perception of respondents from co-operatives. 154 respondents were analyzed using descriptive analysis. The result of the study shows that five key challenges faced by Adult Consumers Co-operative in Peninsular Malaysia are (1) Competition from the private sector, (2) Lack the knowledge and skills of the board member in the retail sector (3) The size of co-operative store is small; (4) Most of the credit facilities provided by the supplier is in a short period, and (5) Difficulty in obtaining co-operative store employees, qualified and skilled.
ABSTRAK
Kajian ini memperlihatkan cabaran yang dihadapi oleh Koperasi Pengguna dalam menjalankan aktiviti peruncitan di Semenanjung Malaysia. Soal selidik telah diedarkan menggunakan kaedah persampelan rawak dan sebanyak 154 responden telah dianalisis menggunakan kaedah analisis diskriptif. Kajian menunjukkan lima cabaran utama yang dihadapi oleh Koperasi Pengguna Dewasa di Semenanjung Malaysia adalah; (1) Persaingan dari sektor swasta yang menjalankan perniagaan peruncitan; (2) Ahli Lembaga Koperasi(ALK) kurang pengetahuan dan kemahiran dalam bidang peruncitan; (3) Saiz kedai koperasi yang kecil; (4) Kebanyakan kemudahan kredit yang diberikan oleh pembekal adalah dalam tempoh yang pendek; dan (5) Kesukaran mendapatkan kakitangan kedai koperasi yang berkelayakan dan berkemahiran.
PENGENALAN
Koperasi Pengguna boleh ditakrifkan sebagai koperasi yang menjalankan aktiviti kepenggunaan seperti pasar mini, pasaraya, kedai runcit, stesen minyak, kedai alatan rumah dan lain-lain (SKM, 2009). Koperasi Pengguna memainkan peranan yang penting dalam menyediakan barang-barang keperluan harian dan perkhidmatan


88
kepada anggota dan bukan anggota pada harga yang berpatutan. Peruncitan merujuk kepada semua aktiviti yang berkaitan secara langsung dengan jualan barangan atau perkhidmatan dalam kuantiti yang kecil untuk memperoleh keuntungan, menjual barang-barang keperluan pengguna kepada pengguna akhir dan bukannya kepada pengguna perniagaan (Mohd Said, 1990). Perdagangan runcit merujuk kepada ‘penjualan semula (tanpa pengubahsuaian) barangan baru dan terpakai kepada pengguna akhir untuk kegunaan isi rumah atau persendirian’. Ini termasuk jualan yang dilakukan oleh kedai, stor aneka jabatan, gerai, Koperasi Pengguna dan sebagainya (Perangkaan Ekonomi Malaysia 2007). Perniagaan runcit melibatkan jualan pelbagai barang-barang dan perkhidmatan daripada barangan keperluan rumah tangga hingga kepada makanan dan aksesori, Guy (1980) telah mengkategorikan aktiviti peruncitan kepada tiga kumpulan iaitu; i) Barang-barang mudah beli seperti barang runcit dan barang keperluan harian, ii) Barang beli belah di mana harganya lebih mahal dan jarang dibeli, iii) Barang istimewa di mana barang tersebut memiliki ciri-ciri unik dan menjadi pilihan kepada pelanggan yang berpendapatan tinggi. Peruncitan wujud dalam skala yang kecil dan skala yang besar (Ahmad et al., 1996; Nik Yacob et al., 1992; Cox, 1988). Perniagaan runcit dalam skala yang kecil merujuk kepada peruncit yang memiliki kedai atau tanpa kedai seperti penjaja dan gerai. Peruncit besar-besaran merujuk kepada superstore, discount store, department store, supermarket, hypermarket dan pusat membeli belah.
Pernyataan Masalah
Perkembangan koperasi di Malaysia telah mencecah usia 85 tahun. Namun ia masih belum mencapai kejayaan yang boleh dibanggakan sepertimana gerakan koperasi di negara-negara maju di dunia seperti United Kingdom, Jepun, Korea Selatan, Eropah, Belanda, Switzerland dan New Zealand (Khalid, 2008). Gerakan koperasi di Malaysia hanya menyumbangkan sebanyak 1 peratus bagi Keluaran Dalam Negara Kasar (Arkib Utusan Malaysia Online 14 Julai 2010). Ini berbeza dengan gerakan koperasi di beberapa buah negara di dunia yang menunjukkan gerakan koperasi memberikan sumbangan yang besar dalam sektor ekonomi seperti negara Portugal menyumbangkan sebanyak 5 peratus KDNK, Iran sebanyak 6 peratus, Vietnam 8.6 peratus, Kenya sebanyak 45 peratus, dan New Zealand sebanyak 22 peratus (ICA, 2005). Mengikut laporan SKM (2009), kebanyakan saiz kedai koperasi di Malaysia adalah berskala kecil dan sederhana dan ditambah pula dengan kuasa beli koperasi juga agak rendah, maka koperasi tidak mendapat faedah daripada diskaun harga atas belian pukal. Menurut sumber dari SKM lagi, sebanyak 184 Koperasi Pengguna telah dibatalkan pendaftarannya dari tahun 2000-2008. Berlandaskan perangkaan tersebut, perbandingan sumbangan Koperasi Pengguna terhadap gerakan koperasi keseluruhannya telah dianalisis.
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Secara keseluruhannya, sumbangan Koperasi Pengguna dewasa dari segi bilangan anggota, modal syer, aset dan keuntungan masih lagi rendah jika dibandingkan dengan bilangan Koperasi Pengguna yang ada iaitu melebihi 30 peratus daripada jumlah populasi koperasi dewasa. Oleh itu kajian ini akan mengenal pasti cabaran-cabaran yang dihadapi oleh koperasi pengguna yang mana menyebabkan status koperasi pengguna kini masih belum berada pada tahap yang membanggakan.
Objektif
Kajian ini bertujuan untuk mengenalpasti cabaran-cabaran yang dihadapi oleh Koperasi Pengguna Dewasa dalam aktiviti peruncitan di Semenanjung Malaysia.
SOROTAN KAJIAN
Status Koperasi Pengguna di Malaysia
Koperasi Pengguna pertama di Malaysia yang didaftarkan adalah ‘Ulu Langat Malay Co-operative Shop Society’ iaitu pada tahun 1936 dan telah bertambah kepada dua buah Koperasi Pengguna pada tahun 1940. Dari tahun 1941 hingga 1950, Koperasi Pengguna tidak menunjukkan sebarang perkembangan disebabkan faktor politik yang kurang stabil. Di awal 1960an, sebanyak 44 buah Koperasi Pengguna telah ditutup akibat penamatan pemberian bantuan kemudahan bekalan barangan oleh kerajaan. Faktor penutupan ini turut didorong oleh kegagalan koperasi untuk mengutip hutang tertunggak. Berikutan kejayaan penubuhan MCSS pada Jun 1973, banyak Koperasi Pengguna telah mengambil peluang untuk menubuhkan premis berkonsepkan pasar mini seperti Shamelin, Koperasi Polis, Koperasi Tentera, FELDA, FELCRA, RISDA, jabatan-jabatan kerajaan dan swasta serta KOMART. Pada tahun 1996, bilangan koperasi yang terlibat dengan aktiviti pasar raya, pasar mini dan kedai telah meningkat sebanyak 1,852 buah koperasi dengan bilangan anggota seramai 1.9 juta orang. Jumlah jualan yang telah dicapai pada tahun tersebut ialah sebanyak RM526.7 juta dan memperolehi keuntungan sebanyak RM132.4 juta.
Sehingga tahun 2008, didapati bahawa bilangan Koperasi Pengguna dewasa mewakili sebanyak 31.6 peratus daripada jumlah keseluruhan koperasi yang berdaftar tetapi jumlah keanggotaannya hanya mencatatkan sebanyak 14.6 peratus dari jumlah keseluruhan keanggotaan koperasi dewasa. Modal syer dan aset yang berjaya dikumpulkan masing-masing hanya 2.8 peratus dan 1.7 peratus, serta keuntungan tahunan hanya pada 2.2 peratus sahaja berbanding dengan jumlah keseluruhan sumbangan koperasi dewasa. Perbandingan tersebut adalah seperti di Jadual 1.
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Jadual 1: Perbandingan Perangkaan Am Koperasi Dewasa dengan Koperasi Pengguna Dewasa sehingga 31 Disember 2008
Perkara
Keseluruhan Koperasi
Koperasi Pengguna Dewasa
Jumlah
Jumlah
Peratus(%)
Bilangan Koperasi
4,051 Buah
1,283 Buah
31.6
Bilangan Anggota
4,487,557 Orang
658,029 Orang
14.6
Modal Syer
RM 8,400,467,072
RM 237,702,053
2.8
Aset
RM 55,580,825,717
RM 988,115,272
1.7
Turnover
RM 7,589,041,394
RM 803,752,797
10.5
Untung / Rugi
RM 1,919,148,802
RM 42,954,235
2.2
(Sumber: Suruhanjaya Koperasi Malaysia, 2008)
Manakala statistik koperasi mengikut fungsi Pengguna dewasa, mencatatkan sebanyak 1,283 buah koperasi dan bilangan anggota sebanyak 658,029 orang, modal syer-yuran sebanyak RM237,702,053, jumlah aset sebanyak RM988,115,272 dan meraih jumlah keuntungan sebanyak RM42,954,235 (SKM, 2008). Perangkaan Am koperasi mengikut fungsi adalah seperti Jadual 2 di bawah:
Jadual 2: Perangkaan Am Koperasi Dewasa Mengikut Fungsi sehingga 31 Disember 2008
Bil
Fungsi
Bil. Kop.
Anggota
Modal Syer (RM)
Aset (RM)
Turnover (RM)
Untung/ Rugi (RM)
1
Perbankan
2
828,484
2,199,709,013
42,208,732,138
3,551,004,345
1,254,943,822
2
Kredit/ Kewangan
551
1,962,834
3,969,003,533
7,620,467,830
1,747,350,390
353,658,419
3
Pertanian
842
248,526
239,016,392
964,366,413
520,805, 179
132,336,678
4
Perumahan
88
89,102
131,592,122
540,551,689
103,492, 753
38,860,369
5
Perindustrian
75
11,997
6,953,639
49,874,089
42,628,043
41,824
6
Pengguna Dewasa
1,283
658,029
237,702,053
988,115,272
803,752, 797
42,954,235
7
Pembinaan
108
62,111
15,248,402
57,049,368
23,366,543
417,739
8
Pengangkutan
336
116,918
47,338,371
182,006,579
391,607, 704
14,343,117
9
Perkhidmatan
756
509,556
1,553,903,547
2,969,662,339
405,033, 640
81,592,599
Jumlah
4,051
4,487,557
8,400,467,072
55,580,825,717
7,589,041,394
1,919,148,802
(Sumber: Suruhanjaya Koperasi Malaysia, 2008)
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Cabaran Koperasi Pengguna
Sejak di peringkat awal lagi, penubuhan Koperasi Pengguna menghadapi pelbagai cabaran dan masalah dalam menjalankan perniagaan. Mengikut perangkaan SKM sehingga tahun 2008 gerakan koperasi masih belum dapat menubuhkan sebuah pasar raya koperasi yang berjaya dan boleh membantu anggota mendapatkan bekalan yang murah, berkualiti dan berkhasiat.
Menurut SKM (2009), masalah atau cabaran yang dihadapi oleh Koperasi Pengguna di Malaysia ialah:
Cabaran dari Segi Kewangan
i. Kebanyakan saiz kedai koperasi di Malaysia berskala kecil dan sederhana serta mempunyai kuasa beli agak rendah. Oleh demikian koperasi tidak mendapat faedah daripada diskaun harga atas belian pukal. Di Malaysia, kita dapat melihat koperasi seperti berada dalam satu prinsip tetapi sebenarnya mereka bergerak dan beroperasi dalam rumpun atau cluster yang berasingan. Pengasingan ini sebenarnya tidak memberikan keuntungan kepada gerakan koperasi, malah menjadi semakin lemah dan kian terhakis kekuatan ekonominya.
ii. Kurang modal pusingan. Selain daripada memperolehi jumlah kredit yang kecil daripada pembekal atau tiada langsung, sumbangan daripada anggota sedikit. Kebanyakannya bergantung kepada pinjaman luar.
iii. Kos overhed tinggi kerana menggajikan kakitangan.
Cabaran dari Segi Tadbir Urus
i. Ketidakcekapan pengurusan seperti tadbir urus yang tidak sempurna malah ada rekod-rekod perakaunan yang gagal diselia dan dikemaskini sebagaimana yang dikehendaki oleh Akta Koperasi.
ii. Pemberian pinjaman kredit tidak terkawal dan tidak ada sistem kutipan yang berkesan.
iii. MengikutRajaMaimon(1999),AnggotaLembagaKoperasi(ALK)jugakurang faham tentang falsafah dan prinsip koperasi serta peranan mereka sebagai ALK. Mereka juga kurang kemahiran dalam pengurusan perniagaan. Oleh itu semua urusan perniagaan kedai dibebankan kepada pengurus tanpa garis panduan. Terdapat ALK yang jarang mengadakan mesyuarat.
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iv. Kebanyakan pengurus dan kakitangan koperasi yang dilantik tidak mempunyai kecekapan yang diperlukan untuk mengurus kedai serta kurang pengetahuan dari aspek kejurujualan dan perakaunan. Sebagai contoh, rekod-rekod perniagaan tidak disimpan dengan betul dan ini menyukarkan penyediaan penyata kewangan dan melewatkan mesyuarat agung. Selain itu, pengurus dan kakitangan koperasi tidak cekap membuat keputusan pengurusan seperti menetapkan harga jualan yang kompetitif, membuka cawangan baru dan membeli aset tetap tanpa mengambil kira faktor kualitatif dan kuantitatif yang ada pada koperasi.
Cabaran dari Segi Penglibatan Anggota
i. Kurangnya pendidikan kepenggunaan dalam koperasi kepada anggotanya.
ii. Kurang komitmen anggota. Terdapat anggota yang telah diberi kemudahan kredit pengguna oleh koperasi tetapi gagal melunaskan hutang mereka sebagaimana yang dikehendaki. Keadaan ini menyebabkan koperasi berhadapan dengan krisis aliran tunai dan akhirnya operasi kedai terpaksa ditutup.
iii. Tiada semangat sayangkan koperasi. Anggota menyertai koperasi hanya untuk mendapatkan dividen dan pinjaman sahaja.
iv. Anggota dan bakal anggota kurang faham mengenai falsafah dan prinsip koperasi. Mereka tidak tahu akan hak dan tanggungjawab mereka sebagai pemilik dan anggota. Ini menyebabkan penglibatan mereka dalam aktiviti koperasi menjadi terhad; (Raja Maimon, 1999).
Cabaran dari Segi Pemasaran
i. Pelaksanaan hadiah langganan (rebat) menjadi semakin tidak popular di dalam amalan kedai pengguna koperasi. Sedangkan amalan rebat ini semakin meningkat popular di kalangan sektor swasta. Amalan rebat menjadi tidak popular di kalangan koperasi kerana pendekatan yang diamalkan masih kekal konservatif sedangkan menggunakan amalan rebat melalui konsep yang diubahsuai semula.
ii. Barangan yang dijual oleh kedai koperasi seringkali gagal menawarkan harga yang kompetitif berbanding dengan pesaing. Keadaan ini menyebabkan koperasi kehilangan pelanggan yang berurusniaga secara tunai dan koperasi kehilangan pelanggan yang berkualiti.
iii. Kekuranganmodaluntukprogrampromosiyangdinamikmenyebabkanmaklumat pemasaran tidak sampai kepada anggotanya yang merupakan pelanggannya.
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Cabaran dari Segi Kerjasama
i. Tidak melaksanakan prinsip kerjasama antara koperasi di mana koperasi yang ada kerjasama boleh menawarkan faedah yang sama kepada mana-mana anggota kepada koperasi tersebut.
ii. Sukar mewujudkan gabungan Koperasi Pengguna kerana sejarah gabungan Koperasi Pengguna yang banyak menemui kegagalan.
Cabaran dari Segi Hubungan Pembekal
i. Kebergantungan kepada pembekal daripada pengusaha di pasaran bebas yang tidak terjamin dari segi pembekalan dan harga barangan. Keadaan ini menyebabkan harga barangan di koperasi tidak dapat dijual dengan harga yang berpatutan.
ii. Saiz belian yang kecil menyebabkan koperasi bergantung kepada orang tengah/vendor. Ini menyebabkan kos belian tinggi dan harga barang yang dijual menjadi mahal.
iii. Kurangmendapatkemudahankreditdaripadapembekal,keranatiadahubungan rapat dengan pembekal.
Cabaran dari Segi Produk
i. Rangkaian atau jenis barangan yang dijual terhad dan mutunya kurang memuaskan.
ii. Teknik amalan perniagaan yang kurang berkesan. Misalnya, tiada mesin tunai (cash register), sistem perakaunan yang tidak sistematik, teknik pesanan dan penerimaan yang kurang berkesan, penyimpanan rekod stok yang tidak lengkap, imej kedai kurang memuaskan seperti berhabuk, terdapat barang/stok yang sudah lama dan rosak.
iii. Mengikut Raja Maimon (1999), kebanyakan Koperasi Pengguna tidak cekap dalam memenuhi objektif utamanya untuk menjual keperluan barangan pengguna pada harga yang berpatutan.
Cabaran dari Segi Persaingan
i Persaingan harga dengan pasaraya seperti Carrefour, Tesco, Mydin dan lain-lain kedai pengguna yang dapat menawarkan harga dan barangan lebih kompetitif.
ii. Persaingan hebat daripada sektor swasta dan perniagaan keluarga.
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Cabaran dari Segi Motivasi Pekerja
Kebanyakan pengurus dan kakitangan tidak berpuashati dengan bebanan kerja yang ditanggung kerana tidak berbaloi jika dibandingkan dengan gaji yang diterima. Kakitangan juga kurang berminat untuk bekerja di kedai koperasi kerana faktor waktu bekerja yang panjang (biasanya jam 8.00 pagi hingga 9.00 malam). Koperasi tidak mampu membayar upah yang tinggi atau berpatutan, tiada inisiatif kenaikan pangkat dan jarang mendapat peluang untuk menghadiri kursus.
METODOLOGI LATIHAN
Kajian ini dilakukan ke atas Koperasi Pengguna Dewasa di Semenanjung Malaysia yang terlibat dalam aktiviti perniagaan kedai runcit, pasaraya/pasar mini dan kedai menjual barangan harian. Kajian ini mengenalpasti cabaran yang dihadapi oleh Koperasi Pengguna Dewasa di Semenanjung Malaysia. Soal selidik yang dibangunkan telah menyenaraikan 29 cabaran yang dihadapi oleh Koperasi Pengguna Dewasa dalam aktiviti peruncitan dan kaedah pensampelan secara rawak telah digunakan iaitu sebanyak 292 buah koperasi pengguna dewasa (tidak termasuk koperasi sekolah) telah menjadi responden dan bagi setiap sebuah koperasi hanya seorang responden dipilih di kalangan Pengerusi, Setiausaha, Bendahari atau Pengurus koperasi. Kesemua 29 cabaran ini diukur menggunakan kaedah skala dari (1) Sangat Tidak Setuju hingga (5) Sangat Setuju.
Bagi proses pengumpulan data, borang soal selidik telah dihantar ke semua negeri dengan meminta bantuan dari Suruhanjaya Koperasi Malaysia (SKM). Para penyelidik telah melantik Pegawai SKM wilayah sebagai pembanci untuk mengumpul data. Ini memudahkan proses pengumpulan data dengan pertolongan pegawai tempatan yang mahir dengan geografi tempatan di wilayah masing-masing. Tempoh masa yang diberikan untuk memulangkan borang soal selidik ini ialah selama tiga minggu dari tarikh surat dikeluarkan. Kumpulan penyelidik telah membuat tindakan susulan melalui telefon ke setiap SKM negeri untuk memastikan borang soal selidik telah lengkap diisi dan dihantar semula ke Maktab Kerjasama Malaysia (MKM). Sebanyak 292 borang soal selidik telah diterima dan hanya 154 borang sahaja digunakan untuk keseluruhan analisis kajian ini, iaitu menunjukkan peratusan sebanyak 52.7 peratus.
Data yang diperolehi telah di analisis menggunakan kaedah diskriptif analisis. Diskriptif analisis merupakan kaedah yang paling sesuai bagi mengenal pasti cabaran utama yang dihadapi oleh Koperasi Pengguna Dewasa dalam aktiviti peruncitan di Semenanjung Malaysia.
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ANALISIS
Taburan jawatan yang disandang di koperasi daripada 154 responden adalah 34 (22.1 peratus) terdiri daripada Pengerusi dan Bendahari, 51 (33.1 peratus) adalah Setiausaha dan 35 (22.7 peratus) Pengurus Koperasi. Kaedah diskriptif analisis telah digunakan dalam kajian ini bagi mengenal pasti cabaran utama yang dihadapi oleh Koperasi Pengguna Dewasa dalam aktiviti peruncitan di Semenanjung Malaysia. Kesemua 29 cabaran di analisis melalui kaedah diskriptif dengan menggunakan perisian SPSS. Nilai min yang tertinggi telah diambil bagi mengukur cabaran utama yang dihadapi oleh Koperasi Pengguna Dewasa dalam aktiviti peruncitan di Semenanjung Malaysia. Kebolehpercayaan analisis menggunakan Cronbach’s alpha merupakan darjah ketepatan yang diukur serta nilai Cronbach’s alpha 0.5 atau ke atas boleh diterima dalam sesuatu instrumen kajian (Kerlinger & Lee, 2000, cited in Mokhlis & Sparks, 2007). Nilai Cronbach’s alpha bagi kesemua instrumen cabaran yang dihadapi semasa menguruskan aktiviti peruncitan koperasi adalah 0.947. Ini bermakna kesemua cabaran yang di senaraikan boleh digunapakai dalam kajian ini.
Tahap persetujuan responden dalam 29 cabaran yang dihadapi semasa menguruskan aktiviti peruncitan koperasi telah diambil dalam kajian ini menggunakan 5-Point Skala Likert bermula daripada 1 (Sangat Tidak Setuju) hingga (5) Sangat Setuju. Bagi tujuan analisis ini, cabaran yang menunjukkan nilai min sekurang-kurangnya 3 di dalam Skala Likert bermaksud responden bersetuju dengan cabaran yang dihadapi oleh Koperasi Pengguna dalam menguruskan aktiviti peruncitan di Semenanjung Malaysia. Manakala, cabaran yang menunjukkan nilai min antara 1 hingga kurang daripada 3, bermaksud responden tidak bersetuju dengan cabaran yang dihadapi oleh Koperasi Pengguna dalam menguruskan aktiviti peruncitan di Semenanjung Malaysia. Jadual 3 menunjukkan nilai min kesemua 29 cabaran yang dihadapi oleh Koperasi Pengguna Dewasa di Semenanjung Malaysia dalam menguruskan aktiviti peruncitan. Daripada 29 cabaran yang disenaraikan hanya 26 cabaran sahaja yang mempunyai nilai min 3 dan ke atas.
Cabaran yang paling utama(1) dihadapi oleh koperasi ialah persaingan dari sektor swasta yang menjalankan perniagaan peruncitan dengan nilai min 3.95. Cabaran yang kedua (2) tertinggi menunjukkan min 3.71 iaitu ALK kurang pengetahuan dan kemahiran dalam bidang peruncitan sebagai salah satu cabaran yang dihadapi. Diikuti dengan cabaran ketiga (3) iaitu saiz kedai koperasi ini yang kecil dengan nilai min 3.56. Seterusnya, kedudukan cabaran yang keempat (4) menunjukkan min 3.52 bersetuju bahawa kebanyakan kemudahan kredit yang diberikan oleh pembekal adalah dalam tempoh yang pendek.
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