Process of cooperative formation in the country and role of leadership in cooperative management INTRODUCTION  The cooperative societies can be defined as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.  Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. Also believe in the ethical values of honesty, openness, social responsibility and caring for others. Why do co-operative societies matter?  A flourishing network of co-operative societies improves the standard of living of the weaker and middle-income sectors of the society as agents of change and reformation.  They provide an economic model with a higher level of entrepreneurial or social sustainability and often work as pressure groups to voice the views of its members in a larger market.  Being a part of a co-operative improves your creditworthiness as a producer as well as a consumer.  They are easy to join, ensure equitable distribution of profits, prioritise welfare over individual profits, are stable in their functioning and output, and receive a substantial amount of government support.  The spirit of co-operation and unity in chasing common interests is the driving force behind co-ops. In a growing democracy, they are the symbol of meritorious collectivism. Importance of Cooperative sector for India The cooperatives play very important role in India because it is an organization for the poor, illiterate and unskilled people. The importance of cooperative sector for India is given below: 1. It provides agricultural credits and funds where state and private sectors have not been able to do very much. 2. It provides strategic inputs for the agricultural-sector; consumer societies meet their consumption requirements at concessional rates. 3. It helps to overcome the constraints of agricultural development

1. Class presentation
COURSE TEACHER
Dr. N.M.Kerur
Professor
Speaker
Revappa M R
PH.d (Agril. Econ.)
Process of cooperative formation in the country and
role of leadership in cooperative management
1
Dept. of Agribusiness Management

2.  Introduction
 Importance of Co-operative sector in India
 Fundamental objectives of Co-operatives
 Principles of Co-operatives
 Types of Co-operative Society
 Formation of Co-operative Society
 Advantages and Disadvantages
 Conclusion

3.  The cooperative societies can be defined as an autonomous
association of persons united voluntarily to meet their common
economic, social and cultural needs and aspirations through a
jointly-owned and democratically-controlled enterprise.
 Co-operatives are based on the values of self-help, self-
responsibility, democracy, equality, equity and solidarity. Also
believe in the ethical values of honesty, openness, social
responsibility and caring for others.

4.  A flourishing network of co-operative societies improves the standard of living of the
weaker and middle-income sectors of the society as agents of change and reformation.
 They provide an economic model with a higher level of entrepreneurial or social
sustainability and often work as pressure groups to voice the views of its members in
a larger market.
 Being a part of a co-operative improves your creditworthiness as a producer as well as
a consumer.
 They are easy to join, ensure equitable distribution of profits, prioritise welfare over
individual profits, are stable in their functioning and output, and receive a substantial
amount of government support.
 The spirit of co-operation and unity in chasing common interests is the driving force
behind co-ops. In a growing democracy, they are the symbol of meritorious
collectivism.

5. The cooperatives play very important role in India because it is an
organization for the poor, illiterate and unskilled people. The
importance of cooperative sector for India is given below:
1. It provides agricultural credits and funds where state and private
sectors have not been able to do very much.
2. It provides strategic inputs for the agricultural-sector; consumer
societies meet their consumption requirements at concessional
rates.
3. It helps to overcome the constraints of agricultural development.

6.  To inculcate the spirit of cooperators among the people in the state
 To encourage people to promote cooperatives on a voluntary basis
 To ensure that the cooperatives are formed and function on democratic
principles
 To ensure that the cooperatives in the state enjoy maximum autonomy
 To ensure that the cooperatives are accountable to members
 To ensure that the cooperatives function as useful instruments to bring
about sustained improvement in the quality of life of their members.
 To ensure that the cooperatives function as instruments for poverty
alleviation and for the uplift of weaker sections of the society in order
to pave way for establishing an equalitarian society

7.  To encourage cooperatives to emerge as self supporting, economic
service- oriented business concerns
 To encourage cooperatives serve as multifunctional units
 To encourage efficient deposit mobilization
 To encourage efficient deployment of human resources
 To achieve financial gains and to put mutual aim ahead of private
interest
 To provide equal opportunities to all the members
 To encourage cooperatives to emerge as peoples bank
 To ensure independent audit
 To infuse professionalism in the management
 To serve towards national objectives

8. Open and
Voluntary
Membership
Democratic
Member
Control
Members’
Economic
Participation
Autonomy
and
Independence
Education,
Training, and
Information
Cooperation
Among
Cooperatives
Concern for
Community

9. Consumer Cooperative Society
Producer Cooperative Society
Co-operative Credit Societies
Marketing Cooperative Society
Housing Cooperative Society
Co-operative Farming Societies

10.  Primarily for consumers who wish to buy household goods at lower prices.
 Buys goods or products in bulk amounts directly from the producer on
wholesale rates and sells them to the members, thus eliminating the need for a
middleman.
 The purchased goods are sold to members and non-members in cash.
 Capital is raised by issuing low denominational shares to the members who
also get dividends on the shares.
 Do not use advertising but rely on word-of-mouth.
 Ensure a regular supply of goods at reasonable rates.
 Set up stores or outlets to sell goods and avail huge trade discounts from
producers.
Examples: Super bazar and Apna bazar

11.  Also known as Industrial Co-operatives, these types of societies look out
for the small-scale producers in a cut-throat market scenario.
 Production and distribution are handled from within the co-operative.
 These producers could be farmers, ayurvedic herbal medicine producers,
organic produce sellers, handicraft or handloom producers, artisans, etc.
 Raw materials, ingredients, tools, processing units, etc. needed for the
manufacturing or producing the goods are obtained by the members directly,
provided to the producers and the final output is distributed to the
buyers/non-members without a middle link.
 Producers pool in their resources, increase production volumes and minimise
risk in the face of the competitive capitalistic markets.
Examples: Dairy, fish farmers, weavers and artisans and tribal co-operatives.

12.  Urban and rural financial societies that provide loans to members at
low rates of interest, protecting the members from massive debts to
traditional moneylending agencies.
 Serve a basic but highly personalised banking role in a sense.
 Have deposit schemes in forms of saving accounts, fd, rd, pension
schemes, etc.
 The money procured is then given on loans to members as personal
loans, agricultural loans, housing or vehicle loan, etc.
 Regularly aided by state and national government subsidies and
funding.
Examples: Teachers co-op credit society, state electric board employee
co-op credit society.

13.  Mostly for the benefit of farmers,
 market the produce profitably at the best possible prices,
 increase the bargaining strength of the farmers and
 protect them from the trials of individual selling and market
exploitation.
 The profits are distributed on the basis of the contribution of produce made.
 They also educate the farmers on market prices, stabilise supply against
demand, help them get loans, and help with grading, pooling, processing and
procurement of produce and provide safe storage and reliable transportation
facilities.
Examples: Milk co-operatives in Gujarat, Maha grape, Cotton marketing co-ops.

14.  Provides affordable housing to the middle and low-income
groups.
 One becomes a member by purchasing shares in the co-
operative. Instead of owning the real estate, the members own a
share in the entire corporation, which in turn gives them a house
to reside in.
 Such societies are commonly found in urban and semi-urban
cities.
 They construct the residences or flats and provide them to the
members to live in and collect the money in instalments.
 In other cases, they provide the land to the members who
themselves construct their own residences.

15.  The financially challenged farmer may not be able to maximise his
agricultural output individually and earn optimum profits.
 Farming co-ops are a way for farmers to retain the right to their land,
yet pool together and consolidate land, livestock and equipment while
earning a share in the total output as per the contribution made.
 In better farming co-ops, members co-operate for pre-sowing, seeds,
fertilisers and equipment, and joint selling, but cultivate the land
separately.
 In joint farming, they pool in the land as well.
 Co-op tenant farming is the type in which the society leases the land
to the farmers and collects the rent.
 In collective farming co-ops, farmers are members for life and cannot
remove their land but can transfer the land rights to another.

16. The Co-operative Societies Act, 1912 expanded the sphere of cooperation
between its members and provided for supervision by central
organization.
A cooperative society, which has its object the promotion of the
economic interests of its members in accordance with the co-operative
principles may be registered with limited or unlimited liability by filing
application to the registering authority with requisite documents to be
submitted by them.

17. Step 9: Registration
Step 8: Registrar has to acknowledge
Step 7: Application for registration
Step 6: Bank Account
Step 5: Entrance fees and share capital
Step 4: Application has to be made to the Registration Authority
Step 3: A Name for the Society has to be selected
Step 2: Provisional Committee to select Chief Promoter
Step 1: Ten Individuals together who are desirous of forming a Society

18.  A minimum number of members required depending upon nature of the
societies.
 Minimum share capital required depends upon nature of the societies.
 The object of the society must be the promotion of the economic interest of
its members in accordance with the principals of co-operative society.
 A society which is proposed to be registered must be economically capable
of being run by own.
 Proposed society must not have any adverse effect on co-operative
movement.
 Subscription of the minimum amount in the form of capital is required for
prospective members depend upon the nature of society and as per bye-laws.

19.  Proposed name of co-operative society.
 Names, address, profession, the monthly income of promoter members.
 A bank certificate to the effect that from the share capital raised by the
promoters has been deposited in a suspense account in the name of the
proposed cooperative society
 Proposed bye-laws of the co-operative society which must be duly signed
by each of the promoter members (4 copies is required)
 An affidavit of the chief promoter for proposal for approval of the
registrar on the prescribed form
 Promoter members list who have subscribed capital together with the
amount contributed by them
 A declaration of each of the member that he is not a family member of any
other promoter

20. Cont…..
 Proposed co-operative society scheme including working which
reflects economical soundness of the proposed co-operative society
 A statement of each member reflecting his financial position
 A residence proof of members in the area of operation of state co-
operative society.
 A certified copy of the resolution of the members adopting the
bylaws and authorizing officer who can make modification in
proposed bye-laws, if suggested by registrar in process of co-
operative society registration and member’s resolution will also
specify the name and address of the person for any correspondence
in process of registration and deliver incorporation certificate.

21.  Person who want to register a state co-operative society will make an
application to the registrar of the area on a prescribed preformed i.e. Form I
 Along with the form type of the society they want to register, proposed
bylaws of that society, number of members, chief promoters name and
address.
 The application must be signed by not less than 10 persons or by a number of
members depends upon nature of the societies.
 If registrar is satisfied will register co-operative society and issue certificate of
incorporation
 Where registrar refuses then from the date of receipt of an application for co-
operative society registration within a period of the one-month registrar is
required to communicate for refusal with valid reasons for such refusal

22.  Approval of general body meeting with the 2/3rd majority of its members
are required
 Within two months of the general body meeting below mentioned
documents are required to submit to the department
 A copy of the minutes of the general body meeting
 Four copies of existing and proposed bye-laws
 Justification/reason for modification
 A certificate from the secretary, president of the society which reflects that
provision of state co-operative society act and rules complied with.
 Zonal assistance registrars of various zones will receive and will examine
the same then on merits of that proposal it will be approved or rejected.
 In case of rejection, specific reason will be given for not approving the
alteration in proposed bylaws
 Further, an appeal may lie with the cooperative tribunal.

23.  Cooperative stores supply quality goods unlike other shops
wherein adulterated foods may be given to its consumers and
thus saved them from adulteration and other malpractices.
 As consumers or members of the society are the owners and
managers of such stores, genuine requirements of the majority
of the consumers can be met.
 Are an important form of democratic business enterprise
because ownership is not vested in one person completely so as
a result, no single group can secure control over the
organization.

24. Disadvantages:
 It only caters to the needs of small and medium-income groups
so when there are large group with higher economic interest
then it is preferable to choose another business model.
 There is much dependence on the honesty, integrity and loyalty
of members and workers and once there are trust issues
between the members it is hard to transact business thereafter.
 It is limited to certain objectives hence profits are minimal.
 Management of society usually rests in the hands of people
with less managerial experience due to which society will
suffer and many do not invest in hiring professionals to handle
the society due to lack of funds or interest so henceforth
growth of the society maybe put to stake by its own members.

25. Functions of Cooperative Marketing Societies
i. To market the produce of the members at the fair prices.
ii. To safeguard the members from excessive marketing costs and
malpractices.
iii. To make credit facilities available to the members.
iv. To make arrangement for the scientific storage.
v. To provide the facilities of grading and market information.
vi. To introduce the system of pooling to acquire a better bargaining power.
vii. To act as an agent of the Govt., for procurement of foodgrains and
implementation of the price support policy.
viii.To arrange for the export of the produce of the members.
ix. To make transport arrangements on collective basis to reduce transportation
cost.
x. To arrange for supply of the inputs required by the farmers.

26. Cooperative Marketing in India
1912 Cooperative marketing Societies Act
1915 First Cooperative society in Hubli (Karnataka)- To encourage cultivation of improved
cotton and its collective selling.
1928 RCA stressed for group marketing
1945 Coop. planning committee recommended at least 25% of the marketable surplus
should be channelised through coop. societies in next 10 years by forming one
society for a group of 200 villages.
1954 All India Rural Credit Survey Committee - establishment of primary cooperative
marketing societies and linking of credit with marketing.
1951-56 Ist FYP- establishment of agricultural marketing and processing coop societies
1958 NAFED established as apex body of cooperative marketing
1963 NCDC for promoting progress related to cooperative societies
1965 Mirdha Committee – membership should be restricted to agriculturists only.
1966 Dantwala committee – need for coop and integration among the various cooperative
organizations
1969 All India Rural Credit Review Committee - recommended the strengthening of
cooperative marketing with a view to help Govt. agencies in the execution of price
support programs.

27. Types of Cooperative Marketing
(Based on commodities dealt by them)
1) Single commodity cooperative marketing societies
Ex: Sugarcane coop., marketing society, milk coop. marketing society
2) Multi-Commodity cooperative marketing societies (IN INDIA)
Ex: Foodgrains, oilseeds and cotton
3) Multi-purpose, multi-commodity cooperative marketing
societies
- Markets large number of commodities
- Providing credit to farmers
- Arranging for the supply of inputs required by them
- Meeting the requirements of essential domestic consumption goods

28. Structure of Cooperative Marketing Societies
NAFED & NCDC at National level
Coop. levels
& No.
Two Tier Three Tier Members
Base level
(7202)
(Taluk/development
blocks)
1. Primary Co-operative
Marketing Societies
1. Primary Co-operative
Marketing Societies
(PCMS)
Individual
Farmers
District level
(378)
--- 2. District/Central Co-op.
Marketing societies
(CCMS)
PCMS +
individual
farmers
State level
(29)
2. State Marketing
federations
3. State Marketing
federations
PCMS +
CCMS
Assam, Bihar, Kerala,
M.P., Karnataka, Orissa,
Rajasthan, West Bengal
Other states

29. Membership of Cooperative Marketing Societies
Sl. No. Types of Membership Membership Features
1 Ordinary Members
i. Individual farmers
ii. Cooperative farming
societies
iii. Service societies of the area
 They have right to participate in
the decision making process of the
society.
 They have share in the profits of
the society
2 Nominal Members
i. Traders with whom society
establish business dealings
 They don’t have right to
participate in the decision making
 No share in the profit of the society

30. Progress of Marketing Cooperatives
Particulars
1960-
61
1970-
71
1980-
81
2020-
21
% Increase
over 1960-61
Primary Agricultural Cooperative
Marketing Societies
(a) No. of Societies
(b) Membership (Lakhs)
3108
13.93
3222
26.71
3789
34.51
7202
91.00
132
338
Value of Agricultural produce
marketed by Co-operatives
(Rs. Crores)
179 649 1950 21621 11979
Value of Agricultural inputs
distributed by Co-operatives
(Rs. Crores)
36 317 1114 6685 18469

31. Cooperative Agro-Processing Units in India
Particulars 2019
Cooperative Sugar Factories
Cooperative Cotton Growing and Processing Societies
Cooperative Dairy Plants
Cooperative Food grain Processing Units
Cooperative Oil Mills
Cooperative Fruits and Vegetable Processing Units
Cooperative Tea Factories
Other Cooperative Processing Units
324
172
212
702
142
54
23
60
Total 1689

32. Reasons for Slow Progress of Cooperative Marketing
Societies
1. Most of the societies are located in big markets/towns and quick/cheap transport
facilities are not available for carrying the produce from villages.
2. Farmers are indebted to local traders, also in immediate need of cash to meet
their personal obligations. Therefore sell their produce to local traders.
3. Lack of loyalty among members and in some cases rivalries result in indecision,
which hampers progress of the societies.
4. The societies do not act as banks for the farmers and do not offers business
advise to the members.
5. Societies do not provide facilities of food and shelter to the farmers during
marketing of their produce.
6. Managers of the societies are often linked with local traders and become
impersonal to the needs of the majority of small and marginal farmers.
7. Lack of sufficient funds with the societies to meet the credit needs of the farmers.
8. Absence of adequate business expertise among society employees.
9. Lack of sufficient storage facilities with the societies. They therefore, try to dispose
the produce soon after their arrival, which results in lower prices for the farmers.

33. Suggestions for strengthening of Cooperative Marketing
Societies
1. The operation area of the societies should be large enough so that they may
have sufficient business and become viable.
2. The societies should give adequate representation to the small and marginal
farmers in their organizational setup.
3. The cooperative feelings among members should be inculcated by proper
education by organizing seminars and by the distribution of literature.
4. In the selection of the officials for the societies, weightage should be given to
business experience and qualification and they should be given proper training.
5. Societies should develop sufficient storage facilities.
6. There is a need for bringing about a proper coordination between credit and
marketing cooperative societies to facilitate the recovery of loans advanced by
credit societies.
7. The societies should acquire the transport facility at a lower cost.
8. Societies should diversify their activities. They should sell the produce and inputs
and engage in the construction of storage facilities.
9. The public procurement and public distribution program should be implemented
through cooperative marketing societies to increase their business.

34. National Agricultural Cooperative Marketing Federation (NAFED)
 October, 1958. Head office: Delhi.
 Apex organization of cooperative marketing in the country.
Objectives of NAFED
1. To coordinate and promote the marketing and trading activities of
its affiliated cooperative institutions.
2. To make arrangements for the supply of the agricultural inputs
required by member institutions.
3. To promote inter-state and international trade in agricultural and
other commodities.
4. To act as an agent of the government for the purchase, sale,
storage and distribution of agricultural products and inputs.

35. www.nafed-india.com

36. National Cooperative Development Corporation (NCDC)
 Established in 1963, in Delhi and has 16 Regional Offices
 For promoting, guiding and supporting rural economic activities on
cooperative principles and Provides financial assistance to cooperative
societies.
Activities of NCDC:
1. Agro-based processing units.
2. Potentially viable PACS, LAMPS, FSS, commercial and processing cooperative
for construction of godowns.
3. Establishment of new cold stores and expansion of the existing units.
4. State govts. to supplement their resources for share capital participation in the
new cooperative related to processing, repair and custom hiring services.
5. Cooperatives dealing in fruits and vegetables for development of marketing
establishment of the processing units, purchase of transport vehicles,
construction of storage sheds and retailing.
6. Fishery cooperative for development of inland and marine fisheries, Integrated
poultry project including poultry sheds, seed mix units and hatcheries.
7. Strengthening share capital base of tribal development cooperative federation,
cooperative marketing societies in hilly areas, rural consumer cooperative and
student cooperative store.

37. www.ncdc.in

38. Tribal Cooperative Marketing Federation (TRIFED)-1987
 To develop the system of marketing of forest products produced by
tribals.
 To protect the tribals from exploitation by the private traders
because of poor demand and production in small lots.
Members
 Govt. of India, Ministry of Tribal Areas : 1
 National Level Cooperative Federations (NAFED) : 1
 National Cooperative Development Corporation (NCDC) : 1
 State level Tribal Development Cooperative Federations:/
Corporations and Commodity Federations : 12
 State Level marketing Federations : 8
 Forest Development Corporations : 4
 TOTAL : 27

39. www.trifed.in

40. Cooperative Marketing and Processing of Milk
White Revolution: To provide strong marketing support to the milk producers in rural areas.
 Village level : Primary Milk Producers Cooperative Societies
 District Level : District Cooperative Milk Producers Unions
 State level: State Cooperative Dairy Federations
 National level : National Dairy Development Board
 Supplies liquid milk and dairy products to urban consumers at reasonable prices.
 Morethan 1.4 lakh Dairy Cooperative Societies in the Country
 Saras : Rajasthan
 Sangam & Vijaya: Andhra Pradesh
 Sudha :Bihar
 Amul : Gujarat
 Vita : Haryana
 Him : Himachal Pradesh
 Nandini : Karnataka
 Milma : Kerala
 Sneha : Madhya Pradesh
 Gokul & Vikas : Maharashtra
 OMFED : Odisha
 Verka : Punjab
 AAVIN & MAAVIN: Tamil Nadu
 Parag : Uttar Pradesh
 Bhagirath : West Bengal
Milk Brands of Different State Cooperatives

41. State level Cooperative Marketing Organizations
Organizations Year Purpose
RAJFED
(Rajasthan)
1957 Purchase and sale of agricultural outputs, and supply of
inputs.
HOPCOMS
(Bengaluru)
1959 Procurement and marketing of fruits and vegetables and
fixing their prices.
Supply of inputs to growers at reasonable prices
Preparation of fruit juice and selling through retail outlets
Tilam Sangh
(Rajasthan)
1990 State level Cooperative Oilseed Growers Federation
MAHAGRAPES
(Maharashtra)
1991 Cooperative and private sector partnership firm.
MAHABANANA and MAHAMANGO.
MARKFED
(Punjab)
Takes care of market needs and providing agricultural
inputs, export business and contract-farming
arrangements.
Other State
Federations
Almost all states have state level federations
(Ex: State dairy cooperative federation, State oilseeds
federation, State cotton federation, etc.)

42. Leadership

43. CONTENT
Definition
Characteristics of Leadership
Significance
Leadership Styles
Leadership vs Management
Leadership Theories
Role of leadreship

44. Introduction
 Leadership is a theme that has been in discussion and
also in people's interest from the ancient days itself,
ancient philosophers of Greek like Socrates and Plato
are superabundance gurus of leadership and
management.
 It is said that, in this transforming world, leadership
not only has solutions for firms and individual people
but also furnish solutions to nations, sectors, and
regions.

45. Definition
The ability to positively influence people
and systems to have a meaningful
impact and achieve results.
 Leading People
 Influencing People
 Commanding People
 Guiding People

46. Characteristics of Leadership
1. Leader must have followers
2. It is working relationship between
leader and followers
3. Purpose is to achieve some common
goal or goals
4. A leader influences his followers
willingly not by force
5. Leadership is exercised in a given
situation
6. Leadership is a power relationship
7. It is a continuous process

47. A Question…
A leader need not be a manager but a manager
must have many of the qualities of a good
leader?????

48. Significance
1. Setting Goals
2. Motivating Employees
3. Building morale
4. Creating Confidence
5. Discipline
6. Developing Team-work
7. Facilitates Change
8. Representing the group

49. Leadership Styles
• Leader by the position achieved
• Leader by personality, charisma
• Leader by moral example
• Leader by power held
• Intellectual leader
• Leader because of ability to accomplish things

50. MANAGEMENT
Working in the system
React
Control risks
Enforce organizational rules
Seek and then follow direction
Control people by pushing
them in the right direction
Coordinate effort
Provide instructions
Working on the system
Create opportunities
Seek opportunities
Change organizational rules
Provide a vision to believe in
and strategic alignment
Motivate people by satisfying
basic human needs
Inspire achievement and
energize people
Coach followers, create self-
leaders and empower them
leadership

51. Leadership Traits
Intelligence
 More intelligent than non-
leaders
 Scholarship
 Knowledge
 Being able to get things
done
Personality
 Verbal facility
 Honesty
 Initiative
 Aggressive
 Self-confident
 Ambitious
 Originality
 Sociability
 Adaptability

52. Leadership styles
Autocratic:
o Leader makes decisions without
reference to anyone else
o High degree of dependency on the
leader
o Can create de-motivation and
alienation
of staff
o May be valuable in some types of
business where decisions need to be
made quickly and decisively

53. Democratic:
Encourages decision making from different
perspectives – leadership may be
emphasised throughout the organisation
Consultative: process of consultation before
decisions are taken
Persuasive: Leader takes decision and seeks to
persuade others that the decision is correct

54. Laissez-Faire:
1. ‘Let it be’ – the leadership responsibilities
are shared by all
2. Can be very useful in businesses
where creative ideas are important
3. Can be highly motivational,
as people have control over their working life
4. Can make coordination and decision making
time-consuming and lacking in overall direction
5. Relies on good team work
6. Relies on good interpersonal relations

55. Paternalistic:
 Leader acts as a ‘father figure’
 Paternalistic leader makes decision but may consult
 Believes in the need to support staff

56. Leadership Theories
Trait Theory
 Early on, it was thought that leaders were
born with
inherent physiological and personality traits
 Age
 Height
 Intelligence
 Academic achievements

57. Leadership Theories
 Capacity: problem-solving capabilities, making judgments
and working hard
 Achievements: accomplishments such as academic record,
knowledge and sports
 Responsibility: dependability, reliability, self-drive,
perseverance, aggressiveness and self-confidence
 Participation and involvement: highly developed social
interaction, popularity, swift adaptation to changing
situations, and easier cooperation compared to non-leaders
 Socio-economic status: effective leaders usually belong to
higher socio-economic classes
Trait Theory (continued)

58. Leadership Theories
Lewin’s Leadership styles
 Kurt Lewin’s studies at the University of Iowa (1939)
 Identified three different styles of leadership:
Autocratic: centralized authority, low participation
(works where input would not change decision or
employee motivation, excessive styles lead to
revolution)
Democratic: involvement, feedback
(appreciated by people, most effective style but
problematic when there are a range of opinions)
Laissez-Faire: hands-off management
(works when people are motivated and there is no
requirement for central coordination)

67.  In India, Co-operative Societies were regarded as ideal
instruments to motivate the people to come together and help
themselves in the process of eliminating the unscrupulous
middlemen making a huge profit at the expense of the society.
 The main guiding factor if an individual or group of individuals
want to form a society must be whether all the concerned
members have common goal to achieve or not, it is important
factor because only when they share common desire otherwise
the whole purpose of forming a society will be defeated.

68. REFERENCE
 www.google.com
 www.wikipedia.com
 www.studymafia.org
 www.pptplanet.com