DEVELOPMENT OF MANAGEMENT THOUGHT IN THE CO-OPERATIVE MANAGEMENT WITH REFERENCE TO (F W TAYLOR, HENRY FAYOL)

Prof. Dr. Nitin W. Jaswante

Asst. Professor Dept. of Commerce, L.M.M. Arts, Commerce & Ashok Science College, Chandur (Rly) Dist. Amravati.

Introduction:- Co-operative is a voluntary association of an individual generally, the members of co- operative society belongs to weaker section of the society. Management goes to on those shoulders that are uneducated or semi-educated, or they don‘t have adequate knowledge of management. Due to improper management many co-operative society are not in the existence. Survival of any organization mainly depends upon effective management technique. The application of the principles and process of management over the co-operative of the organization implies the important of the co-operative management. Besides, the principles of management, co-operative follows their own principles led down by the Maharashtra co-operative society Act, 1960. In simple words, we can say co-operative management is the combination of different two terms. Co-operative and management, co-operative is the combination of different two terms. Co-operative and management, co-operative is an organization of those people who have common needs and management is a systematic process, which increases efficiency and effectiveness of an organization by applying various principles and technique in an organization. Therefore, co-operative management may be defined as the efficient and effective utilization of the resources of the co-operative as a business organization for the purpose of surviving the need of member within the context of the accepted co-operative principles. Co-operative society are based on equality, self-help, mutual responsibility, democracy, etc. Hence, the success of co-operative management depends upon the active participation of members, cordial relationship between the members, managing committee and board of directors and society should follow appropriate values. Co-operative management tries to achieve more effective and equitable system of resource management.

Role of management: Management combines ideas, processes, materials, facilities and people to effectively provide needed services to member-owners. Management is the decision making element of the co-operative. Broadly speaking, its role entails formulating and executing operating policies, providing good service, maintaining financial soundness and implementing operating efficiencies to successfully meet its objects. A successful co-operative is variable in an economic or business sense and maintains or improve its co-operative character or features. A co-operative may succeed as a business but, gradually lose its co-operative character regarding member control, serving the needs of members, and distributing net margins. Likewise , it may succeed for a while as a co-operative, but fail as a sound business institution. Managing a co-operative is challenging and difficult. It involves not only managing resources and business operations, as in other business, but also dealing with problems storming from the co-operatives distinctive characteristics. Because, the co-operatives members are both owners and patrons, special relationship and problems arise concerning member and board of directors roles and responsibilities .

Objectives of the study

1. To identify Management Principles of Co-operative Organization.

2. To study management principles given by F.W.Taylor and Henry Fayol and their application in the management of co-operative organization.

3. To compare principles of co-operatives with the principles of modern management thinkers and their similarities.

SCHOLARLY RESEARCH JOURNAL FOR INTERDISCIPLINARY STUDIES ISSN: 2349-4766

OCT-DEC, 2017, VOL-6/34 Page 105

Research methodology

Research type: - Descriptive research

Data Collection: - This study based on the secondary data. This information has been collected from different sources. These are as under

 Journal, Articles, Books, Limitations:-

1. This study based on secondary data. 2. There may be some changes.

3. This study have done in very short period of time.

Application of Management principles given by F. W. Taylor, Henry Fayol: Generally In co- operative sector no special management thought is developed. Then you will think what do you mean by development of management thought in co-operative management. Before that will see the term management Even before describing and defining the term management, it would be useful to stress on the need of it. The need and the concept of management are associated with the phenomenon of grouped activity. Every were in a modern society, we find groups of people working in all spheres of human activity. The term management has wider scope. Whenever human being perform any kinds of activity , we find the term management or people working together in groups such as a school, college , university , business enterprise , government administrative , co-operative organization and an army , etc. Due to management or effective management system, any sector can achieve predetermine goals and objectives. If we look towards the history of company, we find one thing that they were giving huge important to management of activities. In present scenario every company have special department of management. Now, we are going to talk about the thought of development of management. It is stress that, there are various management thought developed by management thinker like F. W. Taylor, Henry Fayol, Peter Druker and by various management schools, etc .

Discussion about the development of management thought in co-operatives is quit complex and comprehensive because, in companies there is no management thinker who developed management principle and thought specially for co-operative management. Hence, will see how principle of by F. W .Taylor and Henry Fayol will be applicable in the management of co-operatives organization. There are similarities between principle of co-operatives and principle given by F. W. Taylor and Henry Fayol.

1) Principle of equity: This principle has also given by Henry Fayol and it is also one of most essential principle of co-operatives. According to Henry Fayol there should be equality, everyone should get equal treatment as well as there should be no scope for discrimination. For the effective management the same thing is applicable in every co-operative organization. If there is equality in co-operative organization or at the same time every member is getting equal treatment, and there is no discrimination, so in such case the co-operative organization will grow . Members and employee will work hard. Besides, this it will also create loyalties among them. Therefore, as per Henry Fayol concern the term equality should consider while managing the organization.

2) Principle of training and development / scientific selection method: Another principle is training and development, in corporate sector it is denoted by scientific selection. Modern management thinker emphasis for effective management, organization should adopt principle of scientific management. It refers to selection of right candidate for right job and after selection, organization should provide training to them so they will get idea about their work, company`s mission and vision and how company is? The same management principle is applicable in the management of co- operative organization. It was suggested by Macgalen, committee is always in a need of training and development apart from this Indias some legend personality( VaikunthbhaiMeheta , DhanajayraoGadgil and Dr. VitthalraoVikhePatil ) has also given more emphasized on this

SCHOLARLY RESEARCH JOURNAL FOR INTERDISCIPLINARY STUDIES ISSN: 2349-4766

OCT-DEC, 2017, VOL-6/34 Page 106

principle or thought of effective management of co-operative organization . Training and development is essential because, it creates awareness among the members as well as motto behind running of co-operative organization .It is also essential because in India very few universities taught the subject of co-operative. Therefore, employees who selected or appointed by co-operatives organization do not have an idea about co-operatives .Co-operative organization work with isolated principle, objectives and goals. With the help of training and development it becomes easy to create awareness about co-operatives .And this will help in better management of an organization.

3) Principle of democratic / initiative: Modern management has given emphasized on it. Initiative refers to motivate the employees to take participation in the every activity of management. The same is applicable in the co-operative organization .The management of co-operative organization promote principle of democratic. Every members have right to take participation in the management. It create healthy environment within the organization. Democratic management principle welcomes the views of every member while taking decision. Therefore, correct decision can be taken by the organization. 4) Principle of professional management: Professional management refers to apply professionalism that is formal process for the managing of co-operatives houses. Co-operative organization should adopt or hire that employee who has knowledge of managerial skill, and even at the same time they should take expert services. According to management thinker like F. W. Taylor, Henry Fayol, Peter Druker etc manager should possess managerial skill due to market situation. Not only manager should have managerial skill but also every staff members of co-operatives should be well known about it. Fayol said there should be a clear cut idea of authority, responsibility, division of work etc. Professional management promotes this principle also.

5) Principle of general interest: Fayol states that, ―the interest of one employee or group of employees should not prevail over that of the concern ―. He added that, to ensure there must be firmness, fairness, and constant supervision should be there. This principal is also applicable in management of co-operatives organization.

6) Co-operation among co-operatives: Co-operatives serve their members most effectively and strengthen the co-operative movement by working through local, national, regional and internationalstructure.

7) Application of principles of co-operation: Co-operatives have to first follow the principles of co- operation laid down by ICA, and then they have to go for applying the management process. It has to keep a balance between these two. Weeramanstates that ―the proper application of co-operatives principle is necessary for the success of the movement. For the co-operatives all the principle areessential, that is absolutely indispensable to the achievement of co-operative movement‘s role‖. Conclusion:-Due to lack of management technique many co-operatives are suffering from huge amount of loss. No doubt that there is no special management techniques or principles developed but even after the application of management principles of Modern management thinkers i.e. F.W. Taylor and Henry Fayol, management of co-operatives can be done by effective manner.

References:-

Book name; Co-operation, Author; Dr. T.N. Hajela, Publication; Ane Books Pvt. Ltd.

Book name; Multi – State Co-Operative Societies, Author; D.K. Malhotra, Publication; Amit Nanda.

Book name; Marketing for Co-operative Banks, Author; Dr. V.O. Varkey, Publication; Everest Publishing house. Book name; Management of Co-Operative housing Societies, Author; Dr. Paragsaraf, Publication; Pragati Books

Pvt. Ltd.

Book name; Management of Co- Operatives, Author; Ramkishen y., Publication; Jaico publishing house. Book name;Co-operative management, Author Dr. S. Nakkiran, Publication; Deep and Deep publication Pvt. Ltd. Book name; Sahkarihishebtapasni, Authors; T.B.Khedkar, P.D. Bayas and D.V.Vadkar, Publication; ShriGayatri V.

Kulkarni.

SCHOLARLY RESEARCH JOURNAL FOR INTERDISCIPLINARY STUDIES ISSN: 2349-4766

OCT-DEC, 2017, VOL-6/34 Page 107