Full Project – THE ROLE OF VOLUNTARY AND OPEN MEMBERSHIP IN INCREASING THE EFFICIENCY OF COOPERATIVE SOCIETIES

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CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Cooperative is a voluntary organization that is established within the people with common interest in cooperative there are some principles that guided the operation of cooperative business as stated by (ICA 1995). The first among the seven (7) principle is voluntary and open membership which is the area of consideration in this study.

The principle require that membership of any cooperative society should be left open to new intending members without any artificial restriction it means that cooperative societies are non exclusive clubs of a few person or as private companies.

The spirit behind this principle means that in cooperative societies, members have to view properly and business enterprises of the society not in the selfish, egocentric spirit of capitalism but in the cooperative spirit of solidarity and universal brotherhood. The society must be prepared to admit new members, it is like a work of social service to mankind, new members may come in and enjoy the fruits of the society built up by the old and past members.

Chukwu (1990) says advantage of cooperative openness is that open door policy of the cooperative not only makes good philosophy. It also makes cooperative movement to spread throughout the whole nation/world, thud making the benefits of membership good because of the process of integration.

Again, Amahalu (2006) says voluntary and open membership makes the business to increase volume by volume. The more people join the cooperative business, the greater the chance of the group achieving its objectives in terms of skills, capital volume of production and sales.

In cooperative practice voluntary and open membership is not absolute because there is need for selection, what we have in cooperative is “qualified openness” not everybody that apply has the automatic right to be admitted. Dishonest men, non Conformist, those whose purpose would detrimental to the aims of the society, or who will not obey the rules of the society, such people obviously would not be admitted.

Obodoechi (2002), explain that cooperative societies are not complete welfare organization with business entity there is need for selection because not everybody can meet the financial requirements like minimum share holding. Entrance fees monthly savings etc. Although cooperative law made the financial requirement to be small (minimum) but yet some may not afford it.

Further more, there is the need for selection in membership of cooperative organization because of the need for a limited degree of homogeneity e.g Farmers Marketing Cooperative Society cannot accept somebody who is not a farmer, a cooperative society that is for a particular church, mosque, school cannot accept one who is a member of the above mentioned groups.

Again cooperative voluntary and open membership is not absolute because cooperative law specified the minimum age for membership except infant cooperative organization. But the age specification differs from country to country and region to region.

Finally, the membership openness is not absolute in cooperative organization because the guidelines for membership are always clearly stated in the cooperative law and bye-law of individual societies. Any intending member must abide with the guideline before he/she is admitted and the society has the right to admit or not to admit but the right not to admit must be exercised rationally and not bitrarily.

1.2       Statement of the Problem

The nature of cooperative is to be free for any qualified individual to joint without any gender, social racial, political or religious discrimination. This was clearly expressed in the principle of voluntary and open membership, for instance  Chuckwu 1990; Amahala, 2006 agrees that voluntary and open membership make cooperative business to increase volume by volume, the more people joint the cooperative business the greater the  chance of the group achieving its objectives in terms of skills, capital volume of production and sales.

Equally, Obodoechi, 2002 explain that cooperative societies are made freely for only qualified members who are morally and agely okay as explained in the act.

This study therefore aim at investigating the role of voluntary and open membership in increasing the efficiency of cooperative society, furthermore the study determine how only qualified members will be admitted into cooperative societies, the study equally examine the importance of openness ins society development. Finally, the study found out how societies can abode the principle of voluntary and open membership.

1.3       Objectives of the Study

i)            To examine the role of voluntary and open membership in increasing the efficiency of cooperative society.

ii)          To determine how only qualified members will be admitted into cooperative societies.

iii)        To identify the importance of openness in society development.

iv)         To find out how societies can abide the principles of voluntary and open membership.

1.4       Research Questions

1.           What is the role of voluntary and open membership in increasing the efficiency of cooperative societies?

2.           What makes members qualify admission in cooperative societies?

3.           What is the importance of openness in cooperative societies’ development?

4.           What makes society abide by the principle of voluntary and open membership?

1.5       Significance of the Study

The study examines the role of voluntary and open membership principle in increasing the efficiency of cooperative society.

The significance of a study of this magnitude cannot be over emphasized. The government cooperative department, cooperate organization involve in cooperative activities, cooperative societies of any kind in-coming student as well as other researchers alike will find this study really significant especially as they utilize the finding.

The government cooperative Department and of course cooperative organization engaged in cooperative venture, the findings of this study will be used as a basic from enacting policies that will effectively regulate the activities of any cooperative society so that the essence of the principles cannot be defeated. Furthermore, members of the public who are interested in cooperative will use the result of this study as an insight in to the formation of new societies. It will contribute in creating more awareness in the in habitants of the immediate community as regard the role of voluntary and open membership principle towards increasing the society efficiency.

It should also be noted that this study is of scholarly importance. Student undergoing research works similar to the present study and other scholars alike will find this work as a reference material or a sprint board for their own research works.

1.6       Scope of the Study

This study examines the role of voluntary and open membership in increasing the efficiency of cooperative society. An examination of how qualified members can be admitted in a society as well as importance of openness in society development. The study equally cover an indepth examination of possible problems that could be militating against role of voluntary and open membership principle.

The research work is restricted to NNPC-KRPC staff Multipurpose Cooperative Society Limited located in Kaduna South local government area.

1.7       Definition of Terms

The following terms have to be defined in order to make the study clear for more comparism.

–                     Cooperative Society: This refer to coming together of people sharing the same interest to establish a business for their personal satisfaction.

–                     Voluntary and Open Membership: This simply means cooperative society is free organization that allow any qualified individual to join or to be a member without any gender, religious or political discrimination.

–                     Efficiency: This means the ability to do something well or achieve a desired result without wasted energy, time or effort.

–                     Members: These are the personal individuals that come together as one in an association or an organization.

–                     NNPC: Nigeria National Petroleum Corporation.

–                     KRPC: Kaduna Refinery and Petrochemical Company

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Full Project – THE ROLE OF VOLUNTARY AND OPEN MEMBERSHIP IN INCREASING THE EFFICIENCY OF COOPERATIVE SOCIETIES