Cooperative Management

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managing a start up cooperative

managing a start up cooperative

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  • Good day Madame, I would like to ask some questions about our Cooperative that had just started. We are in the initial stage and have not registered yet. I do not know if this is the right venue to ask but if you would be so kind to email me so that I could ask properly. Thank you and more power.
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  • 1. Cooperative A Lecture for Narvacan National High School MPC August9, 2013
  • 2. Management Definition1 Manipulation of resources to achieve objectives Resources: 7Ms 1. Money 2. Machine 3. Men 4. Market 5. Materials 6. Measurements 7. Methods
  • 3. ManagementDefinition The process of getting activities completed efficiently and effectively with and through other people.
  • 5. 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
  • 6. 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. 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
  • 8. 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
  • 9. 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
  • 10. GA Resolution • Development Plan • Annual Plan and Budget • Acceptance of AFS • Hiring of External Auditor
  • 11. 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;
  • 12. 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
  • 13. g. Announcements; and h. Adjournment
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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.
  • 19. 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. 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
  • 22. 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
  • 23. 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
  • 24. 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
  • 25. 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
  • 26.  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
  • 27. 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
  • 28. • 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
  • 29. 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
  • 30. 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;
  • 31. 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.
  • 32. 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
  • 33. Manager Skills • Conceptual • Design (Technical) • Human • Decision making • Problem Solving
  • 34. Managerial Skills First Line Operations Design / Human Skills Conceptual / Design Middle Top Level
  • 35. 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
  • 36. 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
  • 37. 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
  • 38. 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
  • 39. Problem Solving Prevention Principle – Solve problem @ the source. Live by the 1 – 10 – 100 rule Practice Principle
  • 40. 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
  • 41. Lately in public administration POSDECoRB Managerial Function 1 Planning 2 Organizing 3 Staffing 4 Directing/Influencing 5 Coordinating/Reviewing 6 Budgeting
  • 42. Level of Management Top Level Management Middle Level Operation
  • 43. 43 High level (strategic) Long-range view Planning
  • 44. Middle level (tactical) Responsible for working out strategies and plans to implement decisions and policies made by top level managers.
  • 45. Low level (operational) Supervisor Directing and controlling Responsible for ensuring work is done according to plans.
  • 46. 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
  • 47. People who work directly on a job or task and have no responsibility for work of others. Workers
  • 48. 45 25 20 5 35 30 20 15 5 15 30 50 TOP MIDDLE FIRST Plan Organizing Leading Coordinating Managerial Functions
  • 49. A. Interpersonal Roles (figurehead, liaison, leads) 10 Managerial Roles
  • 50. B. Decision Maker ( entrepreneur, disturbance handler, resource allocator, negotiator) 10 Managerial Roles
  • 51. C. Informational Roles (monitors, disseminator, spokesperson) 10 Managerial Roles
  • 53. 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
  • 54. 55 1.Cooperative Annual Performance Report (CAPR) 2013-13 Revised CAPR Template REQUIRED REGULAR REPORTS
  • 55. 56 2. Audited Financial Statement duly stamped “Received "by BIR REQUIRED REGULAR REPORTS 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
  • 56. 57 3. Socio Audit Report 2013-16 Guidelines on Social Audit in Cooperatives REQUIRED REGULAR REPORTS
  • 57. 58 4. Performance Report 5. MC 2013-15 Guideline on Performance Standard for Cooperatives REQUIRED REGULAR REPORTS
  • 58. 5.List of Officers and Trainings undertaken/completed REQUIRED REGULAR REPORTS
  • 59. 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
  • 60. PENALTY P 100 per report per day
  • 62. 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
  • 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
  • 64. As a business... • Constant expansion • Quality Standardized Goods • Minimize Expenditures • Comply with basic requirements of a business enterprise. 65
  • 65. As a business... • Constant expansion • Quality Standardized Goods • Minimize Expenditures • Comply with basic requirements of a business enterprise.
  • 66. As a business... 1. BIR REGISTRATION • Articles of Cooperation and By- laws • Certificate of Registration from CDA 2. Tax Identification Number (TIN)
  • 67. 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...
  • 68. 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