Volumes

GLOBALISATION AND CO-OPERATIVE DEVELOPMENT: CHALLENGES AND RESPONSES OF CO-OPERATIVES IN DEVELOPING ECONOMIES

Abstract

Co-operatives as business units cannot avoid themselves from competitive environment that will determine their survival. Co-operatives in LDCs by virtue of their nature of businesses have the tendency of depending some form of assistances from government. In the face of globalisation and liberalisation, it is inevitable that stiff competition from other form of businesses will have to be faced by co-operatives with or without the assistance of government. This situation makes it crucial for co-operatives to consider and adjust necessarily. The paper aims to discuss the effects of globalisation on co-operative development and the appropriate responses that co-operatives should undertake to ensure their survival. It is no longer suffice for co-operatives in LDCs to emphasise greatly on traditional realms such as micro credits, consumer, agriculture, and housing but to undertake strategic decisions in branching out to new areas of business propositions which are definitely a more competitive and a riskier but could also produce remunerative returns. What is more worrying is the encroachment of corporate giants in their traditional territory where the co-operatives are supposed to have an extra advantage such as credit. Thus, it is inevitable for co-operative to reevaluate their involvement in various types of businesses in line with the new business environment.

HUMAN RESOURCE MANAGEMENT AND ORGANISATIONAL PERFORMANCE: A BRIEF LITERATURE REVIEW AND SOME IMPLICATIONS FOR CO-OPERATIVES IN MALAYSIA

Abstract

This paper begins with outlining the importance of human resource management in co-operatives in the current competitive environment. Some prior researches which demonstrate significant positive relationships between human resource management practices, employee commitment and business performance are briefly reviewed. The paper also highlights the dearth of empirical studies on human resource management in co-operatives and concludes with a discussion on some implications of the literature for co¬ operatives in Malaysia.

PREDICTING BUSINESS FAILURE IN THE MALAYSIAN CO-OPERATIVE SECTOR

Abstract

Many researchers have formulated corporate/business failure prediction models utilising financial , ratios. Although there are a few prediction studies on Malaysian firms been documented, there is no evidence on prediction studies conducted on co-operative societies. Therefore, the main purpose of this study is to develop a failure prediction model that can discriminate between failed and non-failed co-operatives. The dataset consists of 30 matched-pair of failed and non-failed co-operatives over the period of 1999-2002. A step¬ wise logistic regression analysis was employed to develop the failure prediction model. The findings indicate that the model correctly and significantly classified 76.67 % and 86.67 % of the failed and non-failed co-operatives respectively three years prior to failure. Five statistically significant predictor variables found were the Cash Flow to Net Worth Ratio, Quick Assets Percent Ratio, Working Capital Percent Ratio, Cash to Current Liabilities Ratio and the Operating Income to Total Asset Ratio. These variables imply that net worth, cashflow, working capital and profits are the important determinants of failure for the co-operative

CHARACTERISTICS AND MANAGEMENT PRACTICES IN MALAYSIAN CO-OPERATIVE ENTERPRISES: A COMPARISON BETWEEN SUCCESSFULAND LESS SUCCESSFUL MANAGERS

Abstract

This study discusses the characteristics and management practices in Malaysian co-operative enterprises. From the research done, comparisons between the characteristics of the successful and less successful managers were made. The result is then used to identify the characteristics needed for a manager to lead the co-operative enterprises into an effective, efficient and a well productive organisation. This study concludes that the most outstanding characteristics found among the co-operative managers in Malaysia were nurturing quality, responsibility, excellence oriented, integrity and reliability and team building whereas the least outstanding but necessary were risk taking and independence.

PROFESSIONALISATION IN CO-OPERATIVES PROMOTES GOOD GOVERNANCE

Abstract

Governance calls for participation by members in organisational structures and business operations. In a co-operative institution both the players - the co-operative as an institution, and the members who are the owners should benefit. These benefits are the results of the services performed by the co-operative and the economic and social benefits that have been received by the members. Good governance is a judicious and fair way of doing business based on 1best practices, ethics and code of conduct . It provides a co¬ operative with a humane face and with economic advantages to itself and to its members. Governance can be studied under various perspectives e.g.. Governance by Objectives: Governance by Consensus; Governance by Compulsion: Governance by Compromise: Governance by Force/Coersion; Governance by Technical Means e.g., E-Govemance. Good governance calls for belief in the systems that ensure continuity and faith. It also calls for the leaders to change and adapt with times and circumstances and to enable the organisationto change as well and walk along with the needs and requirements of times.The instrumental nature of governance implies that the four governance pillars are universally applicable regardless of the economic orientation, strategic priorities, or policy choice of the government/organisation in question. These four pillars are: Accountability, Transparency. Predictability and Participation. Governance is closely linked to the legislation, institution's constitution and professional and management methods employed to operate the business. The objective leaders and highly professional management produce the quality of governance. Good governance is, thus, the product of true, dedicated and efficient managers. Such managers are, in turn, the products of positive, progressive and responsive environment surrounding them e.g.. good working conditions, harmonious relationship between the BOD and the managers, positive and. democratic legal framework, flexible by-laws, and reduced bureaucratic procedures

LEADERSHIP IN THE CO-OPERATTVE CONTEXT

Abstract

This paper discusses leadership in co-operatives which include the board members, CEOs and the managers. Co-operative leader should ensure that the co-operative focuses its purpose. Co-operative leadership and co-operative management should not be separated to ensure mutuality and co-operation. Co-operative values and principles should be the fundamental tools of management practice in the co-operative context for these values are the unique competitive advantage in the market place. Co-operatives have to approach this issue by training CEOs and general managers on co-operative values and principles and how these values are applied in co-operative business. New management techniques such as TQM, Stakeholders Management and empowerment should be adopted by co-operatives to better equip them in facing the challenges of the market economy.

MEMBER EDUCATION- THE CRUCIAL BUT WEAKEST LINK IN THE MALAYSIAN CO-OPERATIVES SCENARIO?

Abstract

Member education is considered crucial not only in ensuring the continuous commitment of members towards their co operatives but also in providing the impetus for the survival of the co-operatives themselves. Member education programmes, although actively conducted by co-operatives in the developed economies as reflected by their comparatively more established '' co-operatives, are having problems in the co-operative sector of the developing world. In Malaysia as well as other developing countries, the concept although is not really new and has been practiced for decades, has not yet been proven in term of its effectiveness. Even with the introduction of the National Co-operative Policy (NCP) and its ‘plan of actions that follows, the success of member education programmes for co-operatives in this country could face formidable challenges.

INTERNET AND WORLD WIDE WEB: PROVIDING NEW LEARNING OPPORTUNITIES TO ADULT LEARNERS IN CO-OPERATIVES

Abstract

The objective of this paper is to review some of the current perspectives about technology particularly the Internet and World Wide Web (WWW) that can provide new opportunities on learning by co-operative community. The co-operative education, which represent an important trend of the co-operative movement, should get out of the boundaries of a purely philosophical system and move towards empowering knowledge to the people involved in the co-operative movement. In general, the biggest asset of the economy and organisations is the knowledge held by its people especially at times like this where the world has undergone a transition from the Industrial Age to the Information Age to the present Knowledge Age. The fact that most co-operative members are adult has led to the discussion on adult learning issues. The paper begins by the literature of adult learners characteristics and then understanding learning through Internet and WWW. Finally we elaborate on the great potential that Internet and WWW can be used to support and expand adult learning.