Midterm Exam Cooperative

 

COOPERATIVE

Cooperatives are business entities whose members are people or cooperative legal entities by basing their activities on the cooperative principle as well as a people's economic movement based on the principle of kinship.

There are 5 cooperative principles that guide cooperatives to work, namely:

1. Membership is voluntary and open

2. Management is carried out democratically

3. The distribution of the remaining business income shall be carried out fairly in proportion to the amount of business services of each member

4. Providing compensation for limited capital

5. Independence

 

Cooperative Management Pattern

Cooperatives like other organizations need a good management pattern so that the goals of the cooperative are achieved efficiently. The thing that distinguishes cooperative management from general management lies in the elements of cooperative management, namely meetings of members, administrators, and supervisors. The respective duties can be detailed as follows: Meeting members are tasked with determining the articles of association, making general policies, appointing / dismissing administrators and supervisors. The cooperative manager is in charge of leading the cooperative and cooperative business, while the supervisor has the task of overseeing the operation of the cooperative.

For cooperatives with many and extensive business units, it is possible for the management to appoint managers and employees. Managers or employees do not have to be members of the cooperative and they should be taken from outside the cooperative so that their supervision is easier. They work because they are assigned by the management, so they are also responsible to the management. Below will be discussed about some cooperative management patterns that will help the cooperative in achieving its goals:

 

1. Planning

Planning is a basic management process. In planning the manager decides what to do, when to do it, how to do it and who should do it.

2. Briefing

Briefing is a very important management function. Because each person who works in an organization has different interests. So that these different interests do not collide with each other, the company leadership must be able to direct them to achieve company goals.

Purpose and Value of Cooperative

1. Maximize profit

2. Maximize the value of the firm

3. Maximize costs