HRD as a Tool for Good Governance in Cooperatives Presentation by Dr. Bhagwati Prasad Ex-CE/NCUI and Vice Chairman Cooperative House Building and Finance Corporation Ltd, India During ICA AP HRD Committee Meeting & Seminar in Kobe, Japan, 27th Nov.2012

Overview of Presentation 1) Definition of Governance, 2) Good Governance, 3) Principles of Good Governance, 4) Cooperative Governance, 5) Human Resource Development, 6) HRD in cooperatives, 7) HRD efforts for ensuring Good Governance in cooperatives,

Definition of Governance As per the Report of the Commission on Global Governance "Our Global Neighbourhood” (1995) governance is defined as: The sum of the many ways individuals and institutions, public and private, manage their common affairs. It is a continuing process through which conflicting or diverse interests may be accommodated and co-operative action may be taken. It includes formal institutions and regimes empowered to enforce compliance, as well as informal arrangements that people and institutions either have agreed to or perceive to be in their interest.

The concept of good governance emerged mainly “Good governance” is a normative conception of the values according to which the act of governance is realized, and the method by which groups of social actors interact in a certain social context. The concept of good governance emerged mainly because practices of bad governance, characterized by corruption, unaccountable governments and lack of respect for human rights, had become increasingly dangerous, and the need to intervene in such cases had become urgent.

Principles of Good Governance 1. Participation, 2. Rule of law, 3 Principles of Good Governance 1.Participation, 2.Rule of law, 3.Transparency of decision-making or openness, 4.Accountability, 5.Predictability or coherence 6.Effectiveness

1.Participation Refers to equal participation by all members of society as the key element of good governance, with everyone having a role in the process of decision-making.

. 2.Rule of Law- Good governance implies the rule of law maintained through the impartiality and effectiveness of the legal system. Rule of law also means the protection of human rights (particularly those of minorities), independent judiciary and impartial and incorruptible law enforcement agencies. The rule of law involves a variety of conditions, being strongly connected to good administration of justice, good legal framework, verified dispute mechanisms, equal access to justice, and the independence of judiciary workers (lawyers, judges).

3. Transparency- Good governance is also based on the transparency of the decision-making process, which ensures that information is freely available and accessible to those involved or affected by the decisions taken. Transparency therefore means free access to information.

institutions, just as much as of the civil 4. Accountability- Accountability and responsibility (of the institutions, just as much as of the civil society) are key requirements of good governance, with all of the participants in the political and economic processes being accountable for their decisions to each other.

5. Predictability or coherence Good Governance also refers to the decision making conforming to the traditions, culture, rules, regulations and practices of the community/society. 6. Effectiveness Good Governance signifies at improving efficiency by introducing innovative methods and skill up- gradation in the system aiming at enhanced effectiveness.

Cooperative Governance Cooperative governance is concerned with the way in which organizations are structured and managed in pursuit of effective performance in terms of achieving desired outcomes and satisfying members.

Human Resource Development Human Resource Development is the integrated use of training, organization, and career development efforts to improve individual, group and organizational effectiveness. HRD develops the key competencies that enable individuals in organizations to perform current and future jobs through planned learning activities. Groups within organizations use HRD to initiate and manage change. Also, HRD ensures a match between individual and organizational needs.

HRD in Cooperatives Human Resource Development efforts are required for the following stake holders in cooperatives: 1. Members 2. Employees 3. Board of Directors

Human Recourse Development efforts for ensuring Good Governance in cooperatives: For members: Member Education 1) to make them aware about cooperative philosophy, principles and values, 2) to enlighten them about the role and responsibilities of being a member of cooperatives, 3) to motivate them for participation in the affairs of cooperative, etc.

1) Training and Development (TD), 2) Organization Development (OD), For Employees: 1) Training and Development (TD), 2) Organization Development (OD), 3) Executive and supervisory/management development, , 4) professional skills training,

4) 5)  technical/job training, 6) customer service training, 7) sales and marketing training, 8)  health and safety training, 9) Training in Public Relation, publicity and communication, etc.

For Board of Management: 1) Understanding of vision, mission, objective and activities of the organization, 2) Cooperative Act, Rules, Bye-laws and other relevant laws, 3) How to conduct Board meetings?,

4) Leadership Development Program, 5) Business Development Plan/Strategy, 6) Basics of Human Resource Management, 7) Basic financial management, 8) Budgeting and expenditure control, etc.

Conclusion Thus with the help of HRD intervention at all levels i.e. members,BOD and employees; cooperatives may develop their capabilities and synergize their efforts for implementing principles of Good Governance in their enterprises more effectively.

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