i

Human Resource

Management Practices In

Cooperative Sector

Dr. Shaikh Aftab Anwar

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About The Author

X

Dr. Shaikh Aftab Anwar, M.Com; MBA;

Ph.D (Business Administration) is an

educationist, researcher, social activist and a

transformational leader. He has more than 25

years of teaching, research, consultancy,

executive education and industry experience.

He was nominated as 'Senate Member' of

Savitribai Phule Pune University by the Governor of

Maharashtra. He is also member of various boards and

committees of Savitribai Phule Pune University.

He has also worked as Principal of Poona College of Arts,

Science and Commerce, Pune and Director of Poona Institute of

Management Science and Entrepreneurship.

Dr. Shaikh is also Member of several Educational and

Professional Bodies in India and abroad. Presently he is

President of Indo Global Chamber of Commerce, Industries and

Agriculture.

He has been accorded with several prestigious awards including

'National Youth Award' by the Ministry of HRD, Government

of India, and 'Prof. G. B. Kulkarni Award for Best Teacher in

Commerce' by the University of Pune.

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He is Ph. D. and M.Phil Research Guide of University of Pune

and Tilak Maharashtra Vidyapeeth. 24 students have completed

Ph.D and 14 students have completed M.Phil under his

guidance.

Dr. Shaikh's Ph.D Thesis 'Designing a systems approach to

Human Resource Management in the Cooperative Federations

in Maharashtra' was adjudged as the 'Best Ph.D thesis in

Cooperative Management' by the Indian Society for Studies in

Cooperation, and was also conferred with the 'Rao Bahadur

Talmaki Award'.

Dr. Shaikh has authored several books and published research

papers and articles in refereed National and International

Journals and presented papers in international conferences.

As a Social entrepreneur, Dr. Shaikh has established and run the

organizations from scratch. He also offers advice to upcoming

Educational Institutions and IT Education sector. He is a

motivational speaker, Result-focused and effectual leader.

He has extensively traveled to countries like China, Iran,

Malaysia, Thailand Singapore Oman, UAE (Dubai, Abu Dhabi),

Fiji, Kingdom of Tonga, Sri Lanka and Nepal.

X

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About The Book

X Cooperative organizations are business undertaking as well as

are socially aware associations having broadly announced social

duties. Indian Cooperative System lays on a high belief system,

and committed to respectable open causes; it essentially needs to

accomplish exact financial objectives to understand the

destinations.

Managing and administering Human Resource in Cooperatives

has an additional significance on account of ideologies,

organizational aspects, size of societies, range of business

activities, non–professional leadership etc. There is a need of

intelligent framework and innovative human resource

management practices in Cooperative Sector, which can have

large effects on business performance.

This book provides a practical look at Human Resources

Management practices in Cooperative sector from the

perspective of Cooperators, Administrators and Manager, in

addition to an HR professional. It covers every aspect of HRM

and will give them more relevance and an insight in the

competitive working environment.

This book will be extremely valuable reference source and a

guide for positive action for the social researchers, cooperators,

policy makers and research association concerned with

cooperative sector.

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Contents

X

Sr. No. Chapters Name Page No.

1 Doctrine Of Human Resource

Management. In Cooperative. 1-22

Tables:

Unit-wise sample

distribution of employees

Stratification of Employees

2 Profiles Of The Selected

Institutions. 23-66

Tables:

Composition of Board of

Directors of M.S.C. Bank

Progress made by M.S.C.

Bank during 1986-87 to

1989-90

Information about the loan

demand, loan sanctioned and

disbursed by the Maharashtra

State Cooperative Housing

Finance Corporation during

1985-86 to 1989-90

The beneficiaries of Finance

- M.S.C.H.F.C.

M.S.C.H.F.C. - The

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statement showing progress

during the period 1960-61 to

1989-90

Progress made by

Maharashtra State

Cooperative Marketing

Federation Limited, Bombay

during 1980-81 to 1989-90

Charts:

Organisation Structure of

M.S.C. Bank

Organisation Chart of the

Maharashtra State

Cooperative Housing

Finance Corporation

Organisation Structure of

Maharashtra State

Cooperative Marketing

Federation Limited

3 Personnel Management Practices

& Profile. 67-138

Table:

Employee strength –

category-wise in M.S.C.

Bank during 1980-81 to

1989-90

Number of persons

appointed at M.S.C. Bank

during 1980-61 to 1989-90

Employee Strength – The

Maharashtra State

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Cooperative Housing

Finance Corporation

Sources of entry in the

present organization

Employee strength – The

Maharashtra State

Cooperative Marketing

Federation

Number of promotions got

by the respondents during

their service

Staff trained during the

years 1982-83 to 1.994-85

through different training

centres / Institutions –

M.S.C. Bank

Staff trained during the

years 1985-86 to 1986-87

through different training

centres / Institutions -

M.S.C. Bank

Staff trained through Staff

Training Centre Nagpur -

1980-81 & 1981-82 –

M.S.C. Bank

Staff trained during the

years 1.982-83 to 1984-85

through Staff Training

Centre, Nagpur – M.S.C.

Bank

Staff trained during 1985-86

& 1986-87 through Staff

Training Centre, Nagpur –

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M.S.C. Bank

Details of 22 weeks

Practical Training

Programme – M.S.C. Bank

Details of the number of

employees who participated

in different training

programmes – Housing

Finance Corporation

Number of opportunities got

for training

Age of Respondents

Sex of Respondents

Literacy of Respondents

Experience in other

organisations

Sector-wise distribution of

the previous organisation in

which respondents held jobs

Reason for joining the

organisation

Charts:

Organisation Structure of

Personal Department of the

Maharashtra State

Cooperative Bank Ltd.,

Bombay.

The Organisation Structure

of Administration

Department of the

Maharashtra State

Cooperative Housing

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Finance Corporation

Limited, Bombay

The Organisation Structure

of Administration

Department of the

Maharashtra State

Cooperative Marketing

Federation Limited,

Bombay

4 Wage & Salary Administration. 139-184

Pay Scales in Maharashtra

State Cooperative Bank

House rent allowance in

M.S.C. Bank

City compensatory

allowance in M.S.C. Bank

Pay Scales in Maharashtra

State Cooperative Housing

Finance Corporation

Pay Scales in Maharashtra

State Cooperative

Marketing Federation

Mean Scores & standard

deviations of variables

under morale and

motivation – Housing

Finance Corporation &

Marketing Federation

5 Commitment & Motivation. 185-206

Mean Scores & standard

deviations of variables

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under morale and

motivation – grade-wise

Housing Finance

Corporation

Mean Scores & standard

deviations of variables

under morale and

motivation – grade–wise

Marketing Federation

Inter – correlation Matrix

(Housing Finance

Corporation)

Inter – correlation Matrix

(Marketing federation)

Index of morale and

motivation (Housing

finance corporation and

Marketing Federation)

6 Union Management Relationship. 207-264

Respondents membership in

the union

Reason for joining the union

Attendance at union

meetings

Payment of union

membership fee by the

respondents

Attitude of the employees

about working of the union

Respondents opinion about

the unions whether the

unions are necessary for

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maintaining good employer

– employee relations in

cooperatives

Respondents opinion about

union whether union takes

active part in handling /

settling individual

grievances of an employee

Respondent’s opinion about

union whether union is

playing a constructive role

in meeting their demands &

creating better relations with

the management.

Number of Respondents

reporting grievances against

management

Nature of Grievance against

management

7 Main Findings & Suggestions. 265-284

8 Annexures 285-312

List of Apex / State

Cooperative Institutions in

Maharashtra State

Questionnaires

9 Bibliography. 313-320

1

Management of Human Resources:

The human beings are the most important assets in an

organization. The development of every organization depends

on human resources. The Human resources are principal

components of an organization. The term human resource is

sometimes criticized mainly on the ground that it treats

people as “resource”, and not as human beings. Probably two

concepts are involved in this term that people are resource,

and so are valuable for the organization, and that this resource

has to be treated as human resource, and not merely as people

or personal resource. In other words, human resource may be

interpreted as a resource to be recognized and appreciated,

and one which has to be treated differently, as a human one,

and not like other material resources. [1]

Human resources consist of the total knowledge, skill,

creative abilities and aptitude of an organization’s work force,

as well as the values and attitudes and beliefs of the

individuals involved in it. They are the sum total of inherent

abilities, acquired knowledge, and skills represented by the

talents and aptitudes of the employed.[2] It is this human

resource which is of paramount importance in the success of

CHAPTER

1 DOCTRINE OF HUMAN RESOURCE

MANAGEMENT IN COOPERATIVES

Human Resource Management Practices In Cooperative Sector

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an organization, because most of the problems in

organizational settings are human and social rather than

physical, technical or economic. Failure to recognize this fact

cause immense loss to the nation, enterprise and the

individual.[3]

The human resource comes into an organization from

an environment where different influences (social, economic,

political cultural, technological, legislative) operate. They

create an environment inside the organization which reflects

in large measures the external environment. They are the

people who are going to be involved in conversion of the

inputs into outputs. Oliver Sheldon states that, “No industry

can be rendered efficient so long as the basic fact remains

unrecognized that it is principally human. It is not a mass of

machines and technical processes, but a body of man. It is not

a complex of matter, but a complex of humanity. It fulfills its

functions not by virtue of some impersonal force, but by

human energy. Its body is not an intricate maze of mechanical

devices but a magnified nervous system.[4]

Human resource in any organization, be it public,

private or cooperative, constitute, perhaps, the most vital asset

of that organization. An organization will fail if its human

resources are not competent to execute the work assigned to

them. There is no getting away from the fact that human

resources represent a sub – system which dominates all other

sub – systems of the organization,[5] and their adequate and

proper management can help the organization to maximize

the utilization of material resource to a very great extent. The

management of people today is thus considered very

important, crucial and a challenging job.[6]

Dr. Shaikh Aftab Anwar

3

In recent years the term management of human has begun to

be used instead of people employed in an organization are

resource that should be utilized to its full extent in the same

way that financial or material resource should be managed to

produce the utmost benefit. Human Resource Management

emphasis the dynamic and creative aspect of management of

employees rather than the routine tasks of selection, welfare

and record keeping that are so frequently accepted as

comprising personnel management.[7]

Yoder viewed Human Resource Management as a

system in which participants seeks to attain both individual

and group goals.[8]

According to Michael Armstrong, “Human Resource

Management (HRM) is an approach to the management of

people, based on four fundamental principles. First, human

resources are the most important assets an organization had

and their effective management is the key to its success;

second, this success is most likely to be achieved if the

personnel policies and procedures of the enterprise are closely

linked with, and make a major contribution to the

achievement of corporate objectives and strategic plans; third,

the corporate culture and the values, organizational climate

and managerial behavior that emanate from that culture will

exert a major influence on the achievement of excellence.

This culture must, therefore, be managed, which means that

organizational values may need to be changed or reinforced,

and the continuous effort, starting from the top, will be

required to get them accepted and acted upon. Finally, Human

Resource management is concerned with integration; getting

Human Resource Management Practices In Cooperative Sector

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all the members of the organization involved and working

together with a sense of common purpose.[9]

Importance of Human Resource Management:

Several concepts used in the field of management of human

resources embodying behavioral sciences, knowledge relating

to the working of line and staff officials and union leaders to

motivate and develop employees to attain organization goals,

have been defined. These concepts include personnel

management, personnel administration, labor relations,

industrial relations, manpower management and employee

relations. The term “Management of Human Resources” has

been preferred in view of behavioral approach to personnel.

The objective of this field include effective utilization of

human resources, harmonious working relationships and

individual development.[10]

Human Resource Management / Personnel

Management in Cooperatives:

“Management” in the cooperative sector has an additional

significance on account of ideologies, organizational aspects,

size of societies, range of business activities, non–

professional leadership etc. Cooperative societies are not only

business enterprises but also are socially conscious voluntary

organizations having widely publicized social responsibilities.

As the Indian Cooperative System rests on a high ideology,

and dedicated to noble public causes, it necessarily has to

Dr. Shaikh Aftab Anwar

5

achieve precise economic goals to realize the objectives. It is

not, as if these ideals alone shall ensure success to the

cooperative enterprises. The functions of a cooperative

society are a combination of a business and ideals and the

emphasis is more on the business side of it. It should be

understood that when the business of it is successfully

managed to a good degree of efficiency, the ideals of it tend

to be achieved ipso–facto. That is, the successful functioning

of the cooperative business enterprises, is the basis for

successful fulfillment of their social responsibilities and

creating confidence among the masses.[11]

As in any private or public enterprise, the cooperative

enterprise too has to ensure that all aspects of management

like financial management, Personnel management, inventory

management and sales management are attended to with care

and competence, avoiding wastage and making the most

economic use of scarce resources. Whatever improvements in

the techniques of management are developed in any sector,

have to be adopted and assimilated.[12]

With the rapid expansion and diversification of the

cooperative sector and its integration in to the main stream of

economic planning, cooperatives are expected to attain higher

norms of economic efficiency and achieve sounder social

end–results. To achieve such goals, there is an imperative

need for proper personnel planning and development in the

cooperative sector to acquire the required number of

personnel with requisite skills, competence and attitude. In

other words, Human Resource Management has become vital

among all the resources in the development of cooperative

sector.[13]

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