Volumes

PERFORMANCE MEASUREMENT: AN EVALUATION OF CO-OPERATIVE PERFORMANCE IN MALAYSIA

Abstract

Co-operatives are generally lagging in terms of performance measurement. This is partly because co-operatives have both economic and social objectives but no acceptable methods have been developed to measure these aspects satisfactorily. An attempt is thus made to evaluate the performance of co-operatives in Malaysia based on a sample of 20 large and 20 small co-operatives. Co-operative performance is evaluated on two dimensions: i) economic performance as a business entity and ii) member benefits in terms of dividends, social benefits and patronage rebate. Findings reveal that in terms of financial performance there is a great variability both among the large as well as small co-operatives. Overall averages indicate financial ratios are generally satisfactory with the smaller co-operatives outperforming the larger ones in some measures. From the member benefit perspective however most co-operatives use almost all available profits for payment of dividends, indicating dividends is deemed to be the most important member need. Only a few co-operatives placed importance on apportioning profits for the social benefits of members but the majority of these co¬ operatives allocated only between 10% to 20% of profits for member welfare and social needs. Not a single co-operative practised the payment of patronage rebate that would more fairly benefit members.

DATA ENVELOPMENT ANALYSIS AS A METHOD TO MEASURE EFFICIENCY OF PERFORMANCE IN CO-OPERATIVES

Abstract

This article basically discusses an introduction to the Data Envelopment Analysis (DEA) method, the work of Farrell (1957) which is extended by Charnes, Cooper and Rhodes (1978) and Banker, Charnes and Cooper (1984). Researchers in operational research and economic have worked actively with DEA in measuring performance of profit and non-profit organisation such as health care, agricultural production, banking and many other applications. However this method is rare in application of co-operative research. As this method has its special characteristics that outperformed many other methods in performance analysis, thus this article is focused on the usefulness of the method that is worth to be considered. Perhaps this method will solve some issues in treating the multiple inputs and outputs variables in cooperative performance analysis

HUMAN RESOURCE MANAGEMENT AND MEMBER RELATIONS IN CO-OPERATIVES

Abstract

A co-operative needs membership that understands the need for investment in its human capital, management, board, staff, members and other significant policy. Members must also be aware of issues concerning the successful delivery of their specific social and economic needs. A strong co-operative culture at the heart of the organisation thus needs to be developed in order to have a successful co-operative HRM function contributing positively to the effectiveness of the co-operatives. If properly applied and managed HRM strategies will provide a better fit in a membership-based organisation and could provide co-operative with a genuine competitive advantage.

MANAGEMENT STYLES OF CO -OPERATIVE MANAGERS IN MALAYSIA

Abstract

An efficient manager must have the capability to practise various kinds of styles that suits the environment in order to achieve the organisational mission and strategic goals. Therefore the management styles adopted by co-operative managers plays an important role in the organisation. The management style of co-operative managers is studied by adopting the theoretical framework of Spectral Management Type Theory. This theory consists of eight management styles; Innovative Style, Developmental Style, Analytical Style, Enterprising Style, Change Style, People Style, Action Style and Adoptive Style. This study compares the management styles between two groups, that of successful co-operatives and less successful co-operative.v] [The findings from the study shows that there is a significant difference of management styles between the two groups. The superior style between the two groups is the Innovative Style. For the less successful co-operative managers, the study shows that they are still weak on the Action Style, indicating that there is a need to improve on the innovative and strategic capabilities of the managers

HADHARI SCORECARD: AN APPROACH TO CO-OPERATIVE SOCIETY PERFORMANCE MANAGEMENT SYSTEM

Abstract

This paper offers a solution to the agency problems by improving the perspectives of the traditional financial statement and conventional Balanced Scorecard. It borrows the meaning of Islam Hadhari or Civilisational Islam, which is a theory of governing based on the Quran. It promotes the balancing between the material and the non¬ material civilisation in deriving a holistic system of managing organisational performance: Hadhari Scorecard. It adds to the perspective of principle value, being proxy by organisational integrity to the presently famous four perspectives of BSC: the financial, customer, internal process and learning and growth.

AR-RAHNU: BUSINESS OPPORTUNITY FOR CO-OPERATIVES IN MALAYSIA

Abstract

Syariah-based pawn broking or Ar-Rahnu is an Islamic pawn broking, considered to be a new product in the co-operative sector. There are many advantages in comparing Ar-Rahnu to conventional pawn broking, among which, it seems to be one of the tools to create business opportunities and to uplift the economic and social status of the members of co-operative. Bank Rakyat and a few other co-operatives in this country have shown positive results in implementing Ar-Rahnu and the average percentage in Ar-Rahnu transactions per year has increased tremendously. The ever increasing demand for this particular Islamic pawn broking services does not only mirror the economic acceptance but also reflect the fairness and non-exploitative system of Islamic finance.