Full Project – Human capital management as an effective instrument to cooperative development

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CHAPTER ONE

• INTRODUCTION

1.1 BACKGROUND OF THE STUDY

       Human capital management as an effective instrument to cooperative development, is one of the cooperative principles which seek to provide education for the cooperative members elected representatives, managers and employees so that they can contribute effectively to the development of the cooperative.

Human capital management stands in the centre of the cooperative movement.

From the inception of the early cooperative of Rochadale the pioneers of the world cooperative movement one of the unique tasks embarked upon was philosophy and practice of cooperative.

Even in the recent review of cooperative principles in 1966 the international cooperative alliance “ICA” re-stated. Cooperative education as one of the basic principles of cooperation.

The cooperative rules laws and the cooperative bye-laws of respective cooperative societies and also the 1993 cooperative degree stipulated that some of the percentage of the cooperative society surplus should be appropriated as a provision for education, training and information of the member’s management committee and other cooperative officials.

The management of cooperative business enterprises is a body of elected members in cooperative society who handles the affairs and day to day running of the cooperative business enterprise.

The importance of management in any organization is axiomatic. The success or failure of an organization depends to a great extent on the quality of the management committee.

Therefore officers and management of cooperative business enterprise required a more technical human capital management to be able to control the management moreover, in order to alleviate the problems of illiteracy, ignorance of members; misconduct and poor management cooperative education and management of cooperative business enterprise must be perniciously pursued.

1.2 STATEMENT OF THE PROBLEMS

Generally, the history of cooperative education in the developing countries of the world, reveal that the main cause of rickety foundation of cooperation’s has been the lack of cooperative training or education  is the result of disloyalty of members high  incidence of over –due and unpaid loans, low attendance at meetings, ignorance of members proposals, poor members relations bad measurement low productivity resulting in little or no surplus, poor public image inability to change with the times and other harmful result.

Lack of human capital management and business inexperience limits the effectiveness of managers, president, secretaries, treasures and other management committee members pool their resources together and form a cooperative society without the power of cooperative ideology.

They enter into cooperative business for political or person interests without adequate human capital management to equip them for an effective task.

Some cooperative societies, due to their small size low membership, find it very difficult to raise fund sufficient to organize or sponsor special training programmes for the management.

The role of management in this set up is to make organization work, that is to achievely in exercising the function of management which include planning, organizing, directing, staffing, controlling, coordinating to he development of management of their cooperative business enterprises.

Such human capital management programme includes the following seminars, conferences, workshops and any other relevant course at institutions of higher learning.

1.3 OBJECTIVES OF THE STUDY

       The basic objectives of this study is in other to determine empirically the human capital management as an effective instrument to cooperative development, in specific terms the objectives of the study are as follows;

• To determine the importance of human capital management on cooperative development
• To what extent have the human capital management has affected the effective or ineffective working of the management of cooperative business in the cooperative sector in Umuahia South Local Government Area.
• To examine the modalities for proper human capital management and management of cooperative business enterprise.

1.4 RESEARCH QUESTIONS

       The research questions is designed to address (provide answers to) the followings;

• Why are there poor member relations in the cooperative society?
• What are the contributions of government, committees, members and non- members in ameliorating this problems in cooperative society?
• Is there any hard evidence that the members can help to achieve the enterprise goals as well as millennium development?
• Do member activities have any effect on cooperative business productivity?
• Who are more affected? Member non-member? One or more citations could be given in the short analysis (discussion) made about the problem/ issues to really show that the problem under consideration is actually real and that the problems is already becoming a concern.

1.5 STATEMENT OF HYPOTHESIS

       The following hypothesis would be tested;

• There is no significant difference in determine the importance of the management and the success of the organization.
• There is no significant association between gender and the area of difficulty members experience in the reinforcement techniques.
• The perception of manager or president to the relevance of reinforcement to the human capital management performance of the non- member and members do not significantly associate with the committees.

1.6 SIGNIFICANCE OF THE STUDY

       According to the statement of the international cooperative alliance (ICA) in its 1972 congress “All cooperative societies should make provision for human capital management for their members, officers and all their employees as well as the general public in the principles and techniques of cooperative both economic and democratic” (Agbo 1992).

This study aims at solving the problems of acute shortage of managerial manpower, it also aims at facilitating cooperative development.

Through well designed articulated and functional cooperative/human capital management, mass enlightenment and publicity.

1.7 SCOPE OF THE STUDY

       The study covers a limited number of selected primary cooperative societies in Umuahia South Local Government Area.

This study focuses on the human capital management as an effective instrument of cooperative development.

The study also gives the opportunity and the ability to achieve a goal at the end of the business.

1.8 LIMITATION OF THE STUDY

       The limitation of the study can be based on the following factors;

• Inadequate research materials: The materials relating to this project were scarce and difficult to lay hands on. However, best use was made of what was available.
• Lack of finance: The main factor that can disorganize the effort was lack of finance to take a wide study on the cooperative/ human capital management as an effectives instrument to cooperative development, of cooperative societies in Umuahia South Local Government Area, requires ahuge some of money which will enable the researcher travel far and wide, searching for valuable materials and information to work with.

1.9 DEFINITION OF TERMS

       The following terms in the study are as follows:

• Cooperative is an association of persons united: Voluntarily to meet their common economic, social, and cultural needs and aspiration through jointly owned and democratically controlled enterprise.
• Human capital management is a process designed to give knowledge and develop skill: This is the fifth (ICA) cooperative principles which stipulates the provision of education training for members, elected representatives, managers and employees of cooperative societies in the development of their cooperatives
• Management of cooperative business enterprise the governing body of a registered cooperative society to whom the management of its affairs is entrusted.

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Full Project – Human capital management as an effective instrument to cooperative development