GOVERNANCE AND COOPERATIVE IDENTITY:

EMPIRICAL EVIDENCES ON IMPACT OF LEADERSHIP

APPROACH

Shanthi Gopalan Third Sector Research Resource Centre

University of MysoreMysore

shanthivg@rediffmail.com

Introduction Cooperative movement in India is the world’s

largest in terms of the number of cooperative institutions functioning.

It is identified as the most diverse in its functions.

Indian cooperative movement is probably one of the world’s most politicized movements.

Nonetheless, cooperatives continue to be major players in many sectors of the economy especially agriculture and related areas.

Methodology The present study looks into the issues of

internal governance practices of a select group of cooperatives in India

The primary objective is to explore the governance practices and the role of leadership.

Through empirical evidences, the study attempts to examine how cooperatives maintain or sacrifice their identity and examine the overall impact of such a move.

The Study Universe

The discussions in this paper are based on primary data gathered from 10 cooperatives across five states in India

Karnataka, West Bengal, Madhya Pradesh, Gujarat & Delhi

38 cooperative leaders were consulted and their opinions gathered

The Sample The present study derives the data from 8

incorporated and 2 unincorporated cooperatives.

Irrespective of the incorporation status of the cooperative, all the 10 cooperatives have formal body for decision-making.

All the 10 cooperatives have elected board members who are representatives of the general membership.

The Sample

Among the 10 cooperatives under study 2 cooperatives are federated

organisations on linear lines, 7 are non-federated and 1 cooperative is horizontally associated.

Issues of Governance

Governance is a decision-making process that involves grassroots expectations, needs and activism.

How these processes are translated in formulating the objective and developing appropriate modes to reach is governance.

Issues of Governance (Contd.,)

Understanding governance in the light of the cooperative principle becomes more meaningful as the cooperative philosophy lays down on the

democratic principles along with participationprovision of space within the organisation to

grow and extensively lays stress on the aspect of

sharing knowledge.

Issues of Governance (Contd.,)

Governance is understood in this paper as the process of decision-making that addresses the issues likeWho decides? How are the decisions made? How is the authority vested in a small

group to take decisionsWhat kind of relation exists between the

authority discharging members and the body of the organisation.

Decision Making Process

The present cooperative structure in India requires the formation of Board

The laws pertaining to the cooperatives have clearly laid down the responsibilities of the Board, members and the process of constitution of the Board

These issues vary from state to state Cooperative laws in India are not uniform

Decision Making Process All the 10 cooperatives undertake formal

planning. 5 cooperatives have strategic planning and

long range vision of action developed. 3 cooperatives have just recently begun to

work on strategic planning. 2 cooperatives are working on day-to-day

basis. 7 cooperatives regularly review the

strategic plans 3 cooperatives do not do so.

Governance Models The analysis of the study units indicates

the existence of three sets of cooperatives.

1.Individual Centered Purely Business Oriented

2.Individual Centered Leaning towards Cooperative Ideologies

3.Collective Expressions with Democratic Participation highly internalized cooperative philosophy

Leadership Issues

Individual Leader Centred Democratic and Strategic Planning

capability Charismatic Individuals

Analysis Analysis on governance practices and leadership

dimensions in India cooperatives bring forth four distinct approaches to governance.

(1) Democratic Leaders with Participative Board, (2) Democratic Leaders with Participative Board and

Membership, (3) Authoritative Leadership with limited member

participation, (4) Autocratic Leadership as the sole decision-

making authority.

Looking Ahead

Inter-cooperative linking will provide effective membership activism, freedom and also business viability

Horizontal cooperative federations provide ample space for individual innovations and group strength to face the changing market.

It is necessary to look at the possibilities of cooperative model of governance that reinforces the collective existence and also caters to the individual members’ need.

THANK YOU