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GOVERNANCE AND COOPERATIVE IDENTITY: EMPIRICAL EVIDENCES ON IMPACT OF LEADERSHIP APPROACH

GOVERNANCE AND COOPERATIVE IDENTITY: EMPIRICAL EVIDENCES ON IMPACT OF LEADERSHIP APPROACH. Shanthi Gopalan Third Sector Research Resource Centre University of Mysore Mysore shanthivg@rediffmail.com. Introduction.

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GOVERNANCE AND COOPERATIVE IDENTITY: EMPIRICAL EVIDENCES ON IMPACT OF LEADERSHIP APPROACH

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  1. GOVERNANCE AND COOPERATIVE IDENTITY:EMPIRICAL EVIDENCES ON IMPACT OF LEADERSHIP APPROACH Shanthi Gopalan Third Sector Research Resource Centre University of Mysore Mysore shanthivg@rediffmail.com

  2. Introduction • Cooperative movement in India is the world’s largest in terms of the number of cooperative institutions functioning. • It is identified as the most diverse in its functions. • Indian cooperative movement is probably one of the world’s most politicized movements. • Nonetheless, cooperatives continue to be major players in many sectors of the economy especially agriculture and related areas.

  3. Methodology • The present study looks into the issues of internal governance practices of a select group of cooperatives in India • The primary objective is to explore the governance practices and the role of leadership. • Through empirical evidences, the study attempts to examine how cooperatives maintain or sacrifice their identity and examine the overall impact of such a move.

  4. The Study Universe • The discussions in this paper are based on primary data gathered from 10 cooperatives across five states in India • Karnataka, West Bengal, Madhya Pradesh, Gujarat & Delhi • 38 cooperative leaders were consulted and their opinions gathered

  5. The Sample • The present study derives the data from 8 incorporated and 2 unincorporated cooperatives. • Irrespective of the incorporation status of the cooperative, all the 10 cooperatives have formal body for decision-making. • All the 10 cooperatives have elected board members who are representatives of the general membership.

  6. The Sample • Among the 10 cooperatives under study • 2 cooperatives are federated organisations on linear lines, • 7 are non-federated and • 1 cooperative is horizontally associated.

  7. Issues of Governance • Governance is a decision-making process that involves grassroots expectations, needs and activism. • How these processes are translated in formulating the objective and developing appropriate modes to reach is governance.

  8. Issues of Governance (Contd.,) • Understanding governance in the light of the cooperative principle becomes more meaningful as • the cooperative philosophy lays down on the democratic principles along with participation • provision of space within the organisation to grow and • extensively lays stress on the aspect of sharing knowledge.

  9. Issues of Governance (Contd.,) • Governance is understood in this paper as the process of decision-making that addresses the issues like • Who decides? • How are the decisions made? • How is the authority vested in a small group to take decisions • What kind of relation exists between the authority discharging members and the body of the organisation.

  10. Decision Making Process • The present cooperative structure in India requires the formation of Board • The laws pertaining to the cooperatives have clearly laid down the responsibilities of the Board, members and the process of constitution of the Board • These issues vary from state to state • Cooperative laws in India are not uniform

  11. Decision Making Process • All the 10 cooperatives undertake formal planning. • 5 cooperatives have strategic planning and long range vision of action developed. • 3 cooperatives have just recently begun to work on strategic planning. • 2 cooperatives are working on day-to-day basis. • 7 cooperatives regularly review the strategic plans • 3 cooperatives do not do so.

  12. Governance Models • The analysis of the study units indicates the existence of three sets of cooperatives. • 1.Individual Centered Purely Business Oriented • 2.Individual Centered Leaning towards Cooperative Ideologies • 3.Collective Expressions with Democratic Participation highly internalized cooperative philosophy

  13. Leadership Issues • Individual Leader Centred • Democratic and Strategic Planning capability • Charismatic Individuals

  14. Analysis • Analysis on governance practices and leadership dimensions in India cooperatives bring forth four distinct approaches to governance. • (1) Democratic Leaders with Participative Board, • (2) Democratic Leaders with Participative Board and Membership, • (3) Authoritative Leadership with limited member participation, • (4) Autocratic Leadership as the sole decision-making authority.

  15. Looking Ahead • Inter-cooperative linking will provide effective membership activism, freedom and also business viability • Horizontal cooperative federations provide ample space for individual innovations and group strength to face the changing market. • It is necessary to look at the possibilities of cooperative model of governance that reinforces the collective existence and also caters to the individual members’ need.

  16. THANK YOU

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