CHAPTER ONE

INTRODUCTION

Cooperative movement is by and large a product of the altered socio-economic condition brought about by industrialization and a better farming economy in many of the advanced countries as well as the developing countries. Cooperative movement is designed to bring independent persons together for the betterment of their economic condition.

 Cooperative I one or the other, have been used for effective in one form or the other labour, combination of Agro-industrialization development programme with the aim of promoting more egalitarian distribution of economic growth in all communities. Hence, the slogan “ self help through mutual help” by cooperators.

The government of a country has been helping in the formation of cooperative societies, since it is a way to improve the economic as well as the standard of living of the populace; Greater emphasis has been laid on rural development and self dependency and sufficient in food production.

In Oji-River Local Government Area Enugu State and in Nigeria as a whole, Urbanization for instance is taking place at a rap rate owing to a variety of such factor as Immigrations growth of industrialization and high rate of population increase. These rapid Urbanization bring in it’s wake several problems for industrial workers and other fixed income earners who also have to compete for commodities.

In developing countries, scarcity of commodities leads to high degree of adulterated products and high prices. In this case, cooperative societies has to ensure adequate supply of commodities, anticipate members demand, buy commodities in required quantities, ensure that selection and quantities of commodities selected are in accordance with the consumer taste and cooperate in an efficient manner at the prevailing margin to build up enough capital for future development.

These task call for a high degree of management skill and development of proper organizational structure and system that ensure efficient operation.

 This research therefore tend to improve the extent of which his subject organization has been able to apply the main techniques of business management with the view of identifying the area for improvement.

1.1  BACKGROUND OF THE STUDY:

Onwukike M.J.C in his lectures titled “ structure and organization of cooperative said that a cooperative society is a business organization registered under the cooperative society law. It belongs to people who own and use it’ services. It is also run, financed and controlled by them for socio-economic benefits.

Management it self can be defined as the process of designing and maintaining an environment in which individuals, working together in groups accomplished efficiently selected aim.

As managers, people carry out the managerial function of planning. Organization staffing, leading and controlling. Management is concerned with productivity that implies effectiveness and efficiency with the sole aim of creating surprise. This help to rectify the problem of poor management in cooperative societies and to mobilize the rural people to fully participate in socio-economic development.

1.2  STATEMENT OF THE PROBLEM

This success of any cooperative society depends on the managerial ability of the executive and the unification or cooperative of the members. Therefore, poor management planning and market planning has being the case of Kerworm eating the productivity and revenue generation of some cooperative societies. Another problem facing cooperative societies is inadequate organizational structural and execution of plans.

 One of the problems of cooperative societies is that most of the members are illiterate and some have never had the opportunity to attend workshops, seminar or symposia on cooperative society management.

Also inadequate and effective allocation of funds to business ventures hinders cooperative management.

 Other problems include inadequate capital, poor competitive position and poor communication management strategies have caused a great failure in cooperative societies. This is the case with cooperative society in Oji-River

1.3  PURPOSE AND OBEJECTIVE OF THE STUDY:

The broad objective of this research was to identify the problems in managing cooperative society. However, the following specific objectives have been carefully delineated by the researcher for achievement.

I  To identify

Ii  To find out

Iii To determine

IV  To ascertain

V   To suggest ways of eradicating these problems 

Another purpose is to know the factors militating against the growth of cooperative societies and the contribution of government in finding cooperative societies.

 1.4  SIGNIFICANCE OF THE STUDY:

The important of this study is to meet the following demands:

1  To provide more available information to student of cooperative studies, management and trainers in cooperative discipline and other who may be keen in undertaking further research in cooperative management.

2  To make available to the government and operational and decision making tool for efficient, effective and virile cooperative development.

3  Numerous cooperators in the state will be exposed in area to exploit business.

4  To help lectures in the cooperative field to teach properly.

5 To help the cooperators as well as the future ones on the area of planning, organizing and business control to avoid liquidation.

 1.5  SCOPE OF THE STUDY

In Oji-River Local Government Area, there are over 23 cooperative societies as at last year, over 85% of these societies lack effective management system. My study is therefore limited to Oji-River Supermarket cooperative area as a representation of problems cooperative society movement in Enugu State are Nigeria in general.

This research is limited to Oji-River supermarket due to time constraint and limited space

Other restriction occurs due to the attitude of the respondents that is their inability to give out information about the cooperation society.

 Another limitation arises as a result of cost of transportation which was white exorbitant in buying text book and research work.

 Finally inaccurate information supplied in the questionnaires and financial problem.

1.6  DEFINITION OF TERMS

Cooperative societies: This is defined as a form of organization where people voluntary associate together as human beings on the basis of equity for the promotion of the economic interest of themselves.

Small Business: Small business is defined as a type of business which the managers are also the owners; they operate mainly in local areas with a limited size. According to NBCI (Nigeria Bank of Commerce and Industries). It is defined as and industry with capital not exceeding #750.000 including working capital but excluding cost of land.

Share Holders: they are those that contribute the capital used in established the business.

Cooperators: they are the member of cooperative societies

 REFERENCES

Agbo G.O (year 2000) Small Scale Business Management

Amahalu A.C (2005) Understanding Cooperation Printed by Don-Ell Printing and Publishing co uwani-Enugu

Onwukike M.J.C (1998) A lecture on structure and organization of cooperative.