Features of cooperative organisation. Cooperative Society: Definition, Characteristics, Principles, Advantages, Limitations 2022-10-17

Features of cooperative organisation Rating: 5,8/10 1110 reviews

Cooperative organizations are businesses that are owned and controlled by their members, who are also their customers or employees. These types of organizations are characterized by a number of features that distinguish them from traditional, for-profit companies.

One of the most distinctive features of cooperative organizations is their democratic structure. Members have an equal say in the decision-making process, regardless of the amount of money they have invested or the number of shares they own. This means that everyone has an equal opportunity to participate in the governance of the organization and to shape its direction.

Another important feature of cooperative organizations is their focus on meeting the needs of their members. In a cooperative, profits are not the primary goal; rather, the organization exists to serve the interests of its members. This can take many forms, such as providing goods or services at a lower cost, or supporting the local community through economic development initiatives.

A third key feature of cooperative organizations is their commitment to sustainability. Because they are owned and controlled by their members, cooperative organizations often have a long-term perspective that takes into account the impact of their actions on future generations. This can involve using environmentally-friendly practices, supporting local agriculture and businesses, and investing in renewable energy.

In addition to these key features, cooperative organizations often have strong ties to their communities. They may engage in philanthropic activities or collaborate with other local organizations to address social and economic issues.

Finally, cooperative organizations often place a strong emphasis on education and training. They may offer opportunities for members to learn new skills or take on leadership roles within the organization. This helps to build a sense of ownership and responsibility among members, and can contribute to the success and sustainability of the cooperative.

Overall, cooperative organizations are an alternative business model that emphasizes democracy, member service, sustainability, community engagement, and education. These unique characteristics set them apart from traditional, for-profit companies and offer a range of benefits to their members and the communities in which they operate.

Features of Cooperative form of Business

features of cooperative organisation

Companies are generally profit oriented firms. They can achieve something more together than what they can achieve individually. Service Motive: The basic motive of forming a cooperative society is providing service to its members through its activities rather than earning profit from these activities. The membership of the society consisted of mostly working cl. Government control The organization must follow the rules and regulations of the government. In the case of society, a small portion of the earned profit is to be given as dividends.


Next

Significance, characteristics and benefits of co

features of cooperative organisation

The government exercises its control on these societies from time to time by checking their accounts. The society mainly deals with its members. Organisation theorist studies collection of people called organisation whereas organisation behaviorist studies people as members of an organisation. Each member feels elevated when he works for himself and accomplishes the task allotted to him without any help from any outside agency. It is managed by an elected managing committee which is set up by its members through voting. He was born in 1786 at Ipswich in England. Cooperatives cover all types of industries, from farming to banking and the purchase of household goods.

Next

Cooperative Organisation: Definition, Characteristics and Types

features of cooperative organisation

Joining of new members or leaving of existing members does not affect the continuity of the society. Farmers get higher output by utilizing the same. It this form the main motive is not earning profit but the main motive of co-operative organisation is mutual help. Cash Trading: Cooperative societies conduct busi ness activities on cash basis. Cash transactions In this type of organization transactions are done only through cash. In the words of the noted Indian co-operator late V.

Next

Cooperative Society: Meaning, Features, Types, Advantages, Disadvantages

features of cooperative organisation

What are disadvantages of Co-operative? Group Behaviour : An organisation is a composition of people. In a cooperative society, people can enter it as their wish, and also, they are free to leave a cooperative society, but they cannot transfer their share. It is an organisation wherein persons volĀ­untarily associate together as human beings on a basis of equality, for the promotion of economic inĀ­terests of themselves. Their community-minded nature, for the good of the people, sets them apart from a joint stock company, which is in business to make money. Common Interest: Unlike a Joint Hindu Family where membership is by ā€” birth or by marriage into the family, a common interest brings members of a cooperative society together.


Next

Features of cooperative organization

features of cooperative organisation

Thus, the relationship is purely of a contractual nature. Capital Raising: The capital required by co-operative is raised by share capital which is contributed by its members. This micro view of individuals in organisations is recognized as a discipline called Organisational Behaviour. The cooperative movement has three objecĀ­tivesā€”Better living, Better business and Better farmĀ­ing. Separate Legal Entity: Registration of a cooperative society is compulsory. Equal Voting Rights 3. Education The success of organization depends upon the education of its members.

Next

Discuss the special features of a cooperative form of organization. How is it different from a company?

features of cooperative organisation

Steps in the promotion stage are: Ƙ Identification of business opportunity The promotion stage begins with the discovery of an idea to set up a business. Well Defined Authority Responsibility Relationship : ADVERTISEMENTS: An organisation consists of various positions arranged in a hierarchy with well defined authority and responsibility. Besides, nepotism in giving loans and employment hinds development. It is also not suitable where the element of speculation plays a predominant role and where finer varieties with maximum skill are to be produced. For example, any farmer can join the agricultural socie Promotion Promotion stage includes all the steps right from conception of idea to starting the company, till it is formed. Every member works in the interest of the co-operative.

Next

Features of Cooperative Society: 14 Main Features

features of cooperative organisation

Features of a Cooperative Society ā€” Voluntary Association, Separate Legal Entity, Control, Service Motive and Distribution of Surplus 1. The compulsion of maintaining records, submission of audited returns, and inspections by the government are the ways through which the state exercises control over societies. Transfer of shares: The shares of a co-operative society are not freely transferable. Maybe you've had to work together on a school project or perhaps you spend time volunteering on the weekends. Each member, irrespective of his position in the society or the number of shares held by him, is entitled to only one vote.

Next

What are the characteristics of cooperative form of organization?

features of cooperative organisation

Democratic Management: An individual member is considered not as a capitalist but as a human being and under cooperation, economic equality is fully ensured by a general ruleā€”one man one vote. It is a movement aiming at the end of exploitation by private business and the development of self-help among various sections of the society on voluntary basis. Thus, it can hold property and carry on activities in its own name; it can sue others and can be sued by others in its own name. The Rochedale Pioneers who were mainly weavers, set an example by collective purchasing and distribution of consumer goods at bazar rates and for cash price and by declaration of bonus at the end of the year on the purchase made. Moral Emphasis: A cooperative organisaĀ­tion generally originates in the poorer section of population; hence more emphasis is laid on the deĀ­velopment of moral character of the individual member. It sells quality goods at cheaper rates to the members by retaining a small margin for profit.

Next