GOVERNANCE AND COOPERATIVE IDENTITY: EMPIRICAL EVIDENCES ON IMPACT OF LEADERSHIP APPROACH Shanthi Gopalan Third Sector Research Resource Centre University of Mysore Mysore

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 participation  provision 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 like  Who decides?  How are the decisions made?  How is the authority vested in a small group to take decisions  What 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.

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