cooperative management

Cooperative

A Lecture for Narvacan National High School MPC

August9, 2013

Management

Definition1

Manipulation of resources to achieve objectives

Resources: 7Ms

1. Money 2. Machine 3. Men 4. Market 5. Materials 6. Measurements 7. Methods

Management Definition The process of getting activities completed efficiently and effectively with and through other people.

ORGANIZATIONAL STRUCTURE OF COOPERATIVE

General Assembly

Board of Directors

Management

Staff

Organizational Structure

Audit Committee Election

Committee

Ethics

Committee

Mediation/

Conciliation

Committee Secretary Treasurer

Other

Committees

MC 2011-07

The General Assembly shall be composed of such members who are entitled to vote under the Articles of cooperation and By-laws of the cooperative.

COMPOSITION OF THE GENERAL ASSEMBLY

7

The General Assembly shall be the highest policy-making body of the cooperative. The general assembly shall have the following powers: •To determine and approve amendments to the articles of cooperation and by-laws

•To elect or appoint the members of the board of directors, and to remove them for cause.

•To approve developmental plans of the cooperative

POWERS OF THE GENERAL ASSEMBLY

A regular meeting shall be held by the general assembly on a date fixed in the by-laws, or if not so fixed, on any date within ninety (90) days after the close of each fiscal year. Provided, that notice of regular meetings shall be sent in writing, by posting or publication, or through other electronic means to all members of record. Whenever necessary, a special meeting of the general assembly may be called at any time by a majority of the board of directors or as provided for in the by-laws.

MEETINGS

A quorum shall consist of at least twenty-five percent (25%) of all the members entitled to vote.

VOTING SYSTEM Each member of a primary cooperative shall have only one (1) vote. (one man-one vote policy)

QUORUM

GA Resolution

• Development Plan

• Annual Plan and Budget

• Acceptance of AFS

• Hiring of External Auditor

As far as practicable, the order of business of

a regular general assembly meeting shall be:

a. Call to order;

b. Declaration/Consideration of presence of

quorum;

c. Reading, consideration and approval of the

minutes of the previous meeting;

d. Presentation and approval of the reports of the board of directors, officers, and the committees, including audited financial statements of the Cooperative;

e. Unfinished business;

f. New business;

i. Election of directors and committee members

ii. Approval of Development and/or annual Plan and Budget

iii. Hiring of External Auditor

iv. Other related business matters

g. Announcements; and

h. Adjournment

The direction and management of the affairs of a cooperative shall be vested in a board of directors which shall be composed of not less than five (5) nor more than fifteen (15) members elected by the general assembly for a term fixed in the by-laws but not exceeding a term of two (2) years and shall hold office until their successors are duly elected and qualified, or until duly removed for cause.

Direction and Management of the affairs

The board of directors shall be responsible for the strategic planning,

direction-setting and policy-formulation of the cooperatives.

POWERS OF THE BOARD OF DIRECTORS

Any member of a cooperative , who has the right to vote and possess all the qualifications provided in the by-laws shall be eligible for election as director. The members of the board of directors shall not hold any other position directly involved in the day to day operation and management of the cooperative. Any person engaged in a business similar to that of the cooperative or who in any way has a conflict of interest with it, is disqualified from election as a director of said cooperative.

QUALIFICATION

Regular meetings of the board of directors shall be held at least once a month. Special meetings of the board of directors may be held at any time upon the call of the chairperson or a majority of the members of the board. A majority of the members of the board shall constitute a quorum for the conduct of business. Directors cannot attend or vote by proxy at board meetings.

MEETING OF THE BOARD AND QUORUM REQUIREMENTS

VACANCY IN THE BOARD OF DIRECTORS

Any vacancy in the board of directors, other than expiration of term, may be filled by the vote of at least a majority of the remaining directors. Otherwise, the vacancy must be filled by the general assembly in a regular or special meeting called for the purpose. A director so elected to fill a vacancy shall serve only the unexpired term of his predecessor in office.

The board of directors shall elect from among themselves the chairperson and vice-chairperson and elect or appoint other offices of the cooperative from outside of the board. No two (2) or more persons with relationships up to the third degree of consanguinity or affinity nor shall any person engaged in business similar to that of the cooperative shall serve as an appointive office.

OFFICERS OF THE COOPERATIVE

20

The officers of the cooperative shall include: • Members of the board of directors • Members of the different committees created by the general assembly • General manager • Secretary • Treasurer • Other positions as maybe provided for in the by-laws

OFFICERS OF THE COOPERATIVE

MC 2011-04 LEGAL INTERPRETATION OF ARTICLE42 OF the PHILIPPINE JCOOPERATIVE CODE OF 2008 (REPUBLICACT NO. 9520)

21

The By-laws shall provide for the creation of the following committees:

1. Audit committee - elected by GA 2. Election committee - elected by GA 3. Mediation and Conciliation committee - appointed 4. Ethics committee - appointed by BOD 5. Education committee - appointed by BOD 6. Other committees as may be necessary for the

conduct of the affairs of the cooperative (ex. Credit committee)

COMMITTEES OF COOPERATIVES

Implementation of the Training Requirements for Cooperative Officers

MC 2011-27 To rationalize the implementation of Rule 7 of the Implementing Rules and Regulations of RA 9520

MC 2013-02 | Supplemental Rules on the Training Requirements of Cooperative Director, Officers and Committee Members

Inclusion in the election guidelines that requiring all officers to comply with the mandatory trainings and person responsible to ensure compliance thereof

All complaints for the removal of any elected officer shall be filed with the board of directors. Such officer shall be given the opportunity to be heard. Upon finding of a prima facie evidence of guilt, the board shall present its recommendation for removal to the general assembly.

An elective officer may be removed by ¾ votes of

the regular members present and constituting a quorum, in a regular or special general assembly meeting called for the purpose.

REMOVAL OF ELECTED OFFICERS

Development Plan (DP) Annual Plan Social Development Plan (SDP) Education and Training Plan (ETP) Succession Plan (HRD Plan)

Note: - Annual plan is lifted from the Development Plan - SDP and ETP can be incorporated in the DP

Strategic Plan Preparation

Oversight functions Performance evaluation/appraisal Election guidelines Distribution of net surplus (Rate of

Interest and patronage refund) Provisions and funding for statutory reserves Utilization of statutory reserves Provisions of funding for Retirement fund

Board Resolutions

Policy/Board Resolutions

Monetary benefits (Performance Bonus, 13th Month Pay, SSS, Phil Health, Pag-ibig) Non Monetary Benefits (Rice subsidy, uniforms) Membership subscription of capital Compliance limitation of shares Deposit for share capital subscription Issuance of ISC/PR

• Conflict management – officers, employees, members

• Associate members

• Laboratory cooperatives

• Subsidiary coop

Policy/Board Resolutions

Conflict management – officers, employees, members Associate members Laboratory cooperatives Subsidiary coop

In the absence of any provision in the by-laws fixing their compensation, the directors shall not receive any compensation except for reasonable per diems.

COMPENSATION

General Manager. The General Manager shall: i. Oversee the overall day-to-day business operations of the cooperative by providing general direction, supervision, management and administrative control over all the operating departments subject to such limitations as may be set forth by the BOD or the GA; ii. Formulate and recommend in coordination with the operating departments under his/her supervision, the Cooperative’s Annual and Medium Term Development Plan, programs and projects, for approval of the BOD and ratification of GA;

General Manager. The General Manager shall: iii. Implement the duly approved plans and programs of the cooperative and any other directive or instruction of the BODs; iv. Provide and submit to the BODs monthly reports on the status of the coop’s operation vis-a-vis its target and recommend appropriate policy or operational changes, if necessary; v. Represent the cooperative in any agreement, contract, business dealings, and in any other official business transaction as may be authorized by the BODs; vi. Ensure compliance with all administrative and other requirements of regulatory bodies; and vii. Perform such other functions as may be prescribed in the By-laws or authorized by the GA.

Get the job

done on time

Within budget

Satisfactorily

Using available resources

Planning

Devise short-range and long-range plans and set goals to help achieve the plans

Organizing

How to use resources

Staffing

choosing the right person for the job

Directing

Guiding employees to perform their work

Controlling

Monitoring progress towards goals

Functions Of Management

Manager Skills

• Conceptual

• Design (Technical)

• Human

• Decision making

• Problem Solving

Managerial Skills

First Line Operations

Design / Human Skills

Conceptual / Design

Middle

Top Level

Conceptual Skills

Ability to see the ‘big picture’, to recognize and understand significant elements in a situation.

Creation Phase:

Establish positive thinking

Develop creative ideas Combine Refine Re-arrange Simplify

Technical Skills

Knowledge of and proficiency in activities involving methods, processes and procedures.

Development of your technical skills as an integral part of your personal development

Strong technical skills can save you time and increase income

Human Skills

Ability to work with people.

Creation of an environment in which people feel secure and free to express their opinions.

HR is most important career skill

One’s ability to get along is the single most important factor affecting chances of success in the workplace

Decision Making Skill

Ability to solve problems that will benefit enterprise. Also ability to design a workable solution to the problems and to avoid them in future

Simple tips: - get all the facts - weigh - decide - act Post Implementation: - monitor - verify results - document - celebrate success

Problem Solving

Prevention Principle

– Solve problem @ the source. Live by the 1 – 10 – 100 rule

Practice Principle

Prevent Problem

Fix Problem

Before it Reaches

Customer

Fix Problem

After it Goes to

Customer

100

10

1

Time

Cost

•If problem is not fixed when it occurs it will become costlier to fix later – money and time

1 – 10 – 100 Rule

Problem Solving

Lately in public administration

POSDECoRB

Managerial Function

1 Planning 2 Organizing 3 Staffing 4 Directing/Influencing 5 Coordinating/Reviewing 6 Budgeting

Level of Management

Top Level Management

Middle Level

Operation

43

High level (strategic)

Long-range view

Planning

Middle level (tactical)

Responsible for working out strategies and plans to implement decisions and policies made by top level managers.

Low level (operational)

Supervisor

Directing and controlling

Responsible for ensuring work is done according to plans.

Manager

T1

T4

T3

T2

Worker

Worker

Worker

Worker

Task Assignment and Training

Continued Supervision, Coordination, and Planning by Manager

Worker

Worker

Worker

Worker

T1

T4

T3

T2

Manager

46

People who work directly on a job or task and have no responsibility for work of others.

Workers

45

25

20 5

35 30

20 15

5

15 30

50

TOP

MIDDLE

FIRST Plan

Organizing Leading

Coordinating

Managerial Functions

A. Interpersonal Roles (figurehead, liaison, leads)

10 Managerial Roles

B. Decision Maker ( entrepreneur, disturbance handler, resource allocator, negotiator)

10 Managerial Roles

C. Informational Roles (monitors, disseminator, spokesperson)

10 Managerial Roles

REPORTS REQUIRED FOR COOPERATIVE

54

The following reports shall be submitted to the Authority: 1. Cooperative Annual Performance Report (CAPR) 2. Audited Financial Statement duly stamped

“Received "by BIR 3. Socio Audit Report 4. Performance Report 5. List of Officers and Trainings

undertaken/completed

REQUIRED REGULAR REPORTS

55

1.Cooperative Annual

Performance Report (CAPR) 2013-13 Revised CAPR

Template


56

2. Audited Financial Statement duly stamped “Received "by BIR


MC 2013-08 | Supplemental Policy on the Submission of Audited Financial Statements Duly Stamped "Received" by the BIR Pursuant to Section 2 (4), Rules 8 of Rules and Regulations implementing Certain Provisions of R.A. 9520

Show proof within 30ndays that the cooperative have submitted AFS to BIR however failure of the cooperative to show proof will be construed the cooperative has not submitted its AFS with BIR

57

3. Socio Audit Report 2013-16 Guidelines on Social Audit

in Cooperatives


58

4. Performance Report

5. MC 2013-15 Guideline on Performance Standard for Cooperatives


5.List of Officers and Trainings undertaken/completed


All registered cooperatives shall file with the Authority a copy of the required reports either through personal, registered mail, courier or electronic means, within 120 days from the end of every calendar year.

FILING

PENALTY

P 100 per report per day

COOPERATIVE AS A BUSINESS ENTITY

As a business...

• They follow all business norms like:

–Compliance with all business requirements

such as but not limited to business permits;

registration with BIR; social legislation and

labor laws;

–Adherence to local laws;

–Healthy competition;

–Open trade;

–Cash trading

63

As a business...

• They follow all business norms like:

–Selling at market price

–Avoid destructive competition among

coops

–Adequate capitalization

–Adherence to business governance

64

As a business...

• Constant expansion

• Quality Standardized Goods

• Minimize Expenditures

• Comply with basic

requirements of a business

enterprise.

65

As a business... • Constant expansion

• Quality Standardized Goods

• Minimize Expenditures

• Comply with basic requirements of

a business enterprise.

As a business...

1. BIR REGISTRATION

• Articles of Cooperation and By-laws

• Certificate of Registration from CDA

2. Tax Identification Number (TIN)

3. Book of Accounts

- yearly, on or before the last

working day of December

- 2 Columnar, Cash Receipt,

Cash Disbursement,

Ledger, Journal

As a business...

As a business...

4. Certificate of Tax Exemption

* Certified true copy of Articles of

Cooperation, By-laws and

Certificate of Registration

* Application Letter

* BIR Registration

* TIN of member or cedula

cooperative management

Business