Author(s) :

Indar Kaur.

Volume :

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.

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