Co-operative organizations are voluntary associations of economically disadvantaged individuals working together to promote their common economic interests through democratic control and equal risk-sharing. They aim to provide services to members rather than profit, with features such as limited liability, open membership, and a democratic management structure. However, they face challenges like limited capital, lack of technical knowledge, and potential political interference, while serving various purposes including producers, consumers, housing, and credit societies.

1. Co-operative
Organizations

2. What it is??
• It is an association of economically
weak person. They come together for
the promotion of their common
economic interest .
• They form the association on the
basis of equality i.e. all member of
society gets equal risks.
• The motto of cooperative societies
was service and not profit.

3. Continue……….
– According to international labor office
”A co-operative organization is an association of
person usually of limited means who was
voluntarily joined together to achieve a
common economic end through the
formation of a democratically controlled
business organization making equally
contribution to the capital required and
accepting affair share of risks and benefits of
undertaking.

4. Features of Co-operative org.:
1)Service motive: It is establish primarily to
rendering service to its member in
particular & to the society. Profit is 2nd
motive.
2)Voluntarily Association: It’s a voluntarily
association of individual belonging to a
homogeneous group.
3)Open membership: Open to all people

5. 4) Membership: minimum no. of member is
10 and maximum is no limit
5)Democratic: Mgt is democratic nature
6) One man one vote

6. Advantages
Easy formation: As it does not required
long & complicated preliminaries.
Limited liabilities: members liability is
limited to their capital contribution.
Continuity: the life of cooperative society
is based & remains unaffected by the death
insolvency or convenience of a member.

7. Reasonable price : it sell product at
cheap rate.
Service motive: organization based on
service motive & therefore black marketing
is not possible.
Democratic nature: the mgt of co-
operative org democratic in nature.

8. Disadvantages
Limited capital: Cooperative org
generally have limited capital because they
are generally low income group people.
Lack of technical knowledge:
management of cooperative societies
generally lacks in technical knowledge &
experience.

9. Interference of politician: sometimes due
to the interference of politicians the
cooperatives are mono polished which leads to
frauds & losses of to all members of society.
Lack of co-ordination :It may suffer due to
lack of co-ordination between various member.
Not suitable: this form of org is not suitable
for large scale industries.

10. Types of cooperative societies:
1) Producers Cooperative Society
2) Consumers Cooperative Society
3) Housing Cooperative society
4) Cooperative Credit Society

11. 1)
1) Producers Cooperative Society
Producers Cooperative Society
• Here workers come together & start
their own organiasation.
• They will elect their own manager to
look after the business.
• The profit earned is shared among
themselves.
• It prevents exploitation of workers
• E.g.. Agriculture & Cotton industries

12. 2) Consumers Cooperative Society
2) Consumers Cooperative Society
• These are formed for the purpose of
making availability day to day requirements
of goods to their members at cheap prices
• They buy goods from wholesaler at
wholesale prices and sell them to members
and after to non member as well as prices
slightly lower than the market price.
• Main objective is to eliminate
• E.g.. Cooperative stores in schools &
colleges, factories etc.

13. 3) Housing Cooperative society
3) Housing Cooperative society
• These are formed for the purpose of
getting plots or constructing houses
for the needy persons.
• Govt. provides great facilities like low
rate loans exemptions in taxes etc.

14. 4) Cooperative Credit Society
4) Cooperative Credit Society
• To provide the finance to poors in the form
of loans at low rate of interest
• It also provides occupation & earnings to
societies neglected class like widows
physically handicapped or poor section of
community
• Limitation is capital, efficiency of mgmt,
favourism & political influence