Management Practices of Multipurpose Coo PDF
Management Practices of Multipurpose Coo PDF
Management Practices of Multipurpose Coo PDF
1, February 2020
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Asia Pacific Journal of
Management Practices of Multipurpose Multidisciplinary Research
Cooperatives Operating in a Philippine Vol. 8 No.1, 16-26
February 2020
Province P-ISSN 2350-7756
E-ISSN 2350-8442
Melvin S. Sarsale1, Dennis Anthony A. Kilongkilong2 www.apjmr.com
1
Southern Leyte State University, Philippines ASEAN Citation Index
2
University of San Jose-Recoletos, Philippines
1
[email protected], [email protected]
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Asia Pacific Journal of Multidisciplinary Research, Vol. 8, No. 1, February, 2020
Sarsale & Kilongkilong., Management Practices of Multipurpose Cooperatives Operating…
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It was then expected that cooperative members were Organizations can be characterized by their culture,
well treated. the way it conducts their business, and the values shared
Most cooperatives under study offered lending among individuals across different organizational levels.
services to the members at a rate higher than other In other words, culture somewhat sets the organizational
lending institutions simply because of its higher standards. It is normal to every organization to get the
operating costs [43]. This made its lending services less best from their employees and to keep them enjoy at all
competitive that will eventually decrease for member’s times; however, the challenge remained on how effective
demand for loans [44]. The cooperatives’ effort of these diverse employees responded of such kind of
striving to increase productivity twice as industry’s working environment. Having a customer-oriented
average was not felt much as they were known to be culture was greatly manifested among the cooperatives
member-focused and not industry-focused as majority of as this is very much essential factor in achieving better
its annual budget focused more on its recurring performance [45]. It is common among cooperatives that
operations to meet the needs of its customers. Decision they lacked programs that recognize employee’s feats
making authorities among cooperatives were not within and even opportunities to use their talents. Furthermore,
reach at all times especially in reacting quickly to some of the cooperatives do not establish incentive
changes in market condition especially that the board of program for exemplary employees and there were only
directors and committees were not regularly around in rare occasions where employees can showcase their
the operations in which some of their functions talents.
demanded regular presence in the cooperative. Rewarding employees based on their performance is
Moreover, it can be inferred that frontline services were not always practiced among cooperatives. This
not totally empowered as there were some everyday rewarding mechanism could have positive influence on
decisions that needed to be sanctioned to the top employee’s job satisfaction and job performance [46],
management. Most of cooperative’s work systems were however, was largely constrained to be implemented due
still traditional and thus, eliminating all forms of excess to the availability of funds. Cooperatives have different
and wastes were not upheld at all times. Being customer- cultures depending on the way how the top level
oriented was common to all cooperatives. management has set the tone for the organization. One
Only small cooperatives consistently delivered thing common among them was their desires to have best
products and services that meet customer’s demand. This employees remain loyal and effective at all times.
clearly suggested that these cooperatives were However, winning companies have certain norms that
competitive in the kind of business they belong. It was will help the organization competitive in the business.
apparent in their high interest rates for savings deposits Medium cooperatives employees still received their
compared to established commercial banks and other additional incentives even if performance target was not
financial institutions. Although, their interest rates for realized. This was contrary to what a winning company
loans were not that very competitive compare to other should practice which was to align rewards with
institutions, but still considered to be lowest among the performances.
cooperatives and even some of the banks within the Among the cooperatives under studied, only medium
province. Meanwhile, medium cooperatives do not cooperatives do not uphold at all times a strong
upheld at all times their energy and resources in meeting customer-oriented corporate culture. This can be gleaned
the customer’s demand which indicates that these on the number of employees they had vis-à-vis
cooperatives either have other compelling priorities or its membership level in which some operational
resources could not warrant beyond their normal requirements are not met to have a very strong frontline
operating expenses. services. Although small cooperatives have small
number employees but they have also minimal daily
Culture customers and large cooperatives have huge number of
Table 1 also shows the data on the extent of employees to match to the number of daily customers. In
manifestation of culture among cooperatives. The factor other words, efficiency wise, both cooperatives have
mean of 3.17 derived from the clusters averages of 3.11, good support services in attending to the customer needs.
3.06 and 3.35 which indicated that culture as one of the However, due to economies of scale and large
management practices among cooperatives was membership base, large cooperatives tend to have lower
manifested with great extent. cost in delivering services to their members than smaller
cooperatives [47].
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Asia Pacific Journal of Multidisciplinary Research, Vol. 8, No. 1, February, 2020
Sarsale & Kilongkilong., Management Practices of Multipurpose Cooperatives Operating…
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Structure Conversely, assigning supervisory and managerial
The extent of how structure is manifested among jobs to high performing employees, designing tasks that
cooperatives is also shown in Table 1. The factor average will arouse interest among best performers and putting
of 3.19 interpreted as great extent was derived from the high value on potential employees were manifested to a
cluster means of 3.06, 3.17 and 3.34. great extent among the cooperatives. These indicators
Structure served as the foundation for organizational show the cooperatives’ effort to retain employees who
processes creating values for customers. A good excelled in their respective jobs. These strategies valued
structure is simple, and it promotes cooperation among high performing employees by boosting their morale and
workers. This was true to small cooperatives whose self-worth in the organization. Senior management
structure was not complex especially that their active involvement in recruiting and developing talents
operations were not big enough requiring many units. and the provision of an effective reward system to high
Cooperation as well as sharing valuable information performing employees were not upheld most of the times
among employees is highly manifested among among the clustered cooperatives. This means that these
cooperatives which show good relationship among indicators were not totally practiced in some
individuals within the organization. Based on table, the cooperatives under studied. Mamuye [21] stressed of
respondents viewed with great extent that their proposing attractive benefits, giving exciting tasks and
cooperatives were structured with consideration to letting them to join in different areas of the company
processes that add customer values and according to the encourage employee retention. Moreover, aligning
main customer segments. This result substantiates to the employee’s values with the company values can also
efforts of cooperatives of putting value on things that can enhance in keeping great talents in the organization [50].
delight their customers and not to fail them. There are
cooperatives that do not totally empower their employees Leadership
in making decisions although they are aware on the latest As revealed in Table 1, the factor average of 3.07
updates in the organization. This also validates to the based on the group averages of 3.00 from large
previous result that decision making heavily relies to top cooperatives, 3.04 from medium cooperatives and 3.18
level management but should interplay with other key from small cooperatives, the cooperatives manifested
stakeholders [48]. leadership indicators to a great extent.
A strong leadership inspires unity and teamwork
Talent among the members and officers. Without reliable
Table 1 also presents the data on the extent of how leaders, cooperatives will suffer leadership crisis that
talent as management dimension was manifested among will eventually lead to failures and closures. The
primary cooperatives which generated an overall average cooperatives have leaders who give room for self-
of 2.94 in this factor which means that management and management, who have a strong relationship with
staff perceived a great extent of manifestation of talent as employees at all levels, who can seize opportunities
one of the management practices among the cooperatives before they become troublesome nightmares, who have
under studied. good rapport with stakeholders and other agencies, who
Winning companies put premium in having best are devoted to the organization, who have the ability to
employees who will help in attaining its vision, mission build relationship with the people in the company and
and goals. Without this pool of talents, the organization who show themselves as colleagues rather than
will struggle. Firms must craft strategies to keep the managers. These indicators generally manifested to a
talents they need. However, some cooperatives did not great extent among the cooperatives. Without good
have upheld at all times a culture that attracts, keeps and leaders, survival of these cooperatives will be highly in
develops new talents which corroborates that there were questioned as leadership is one of the essential factors of
still areas of the human resource management system of cooperative’s sustainability [51] emphasizing on their
the cooperatives seem to be lacking [49]. Some roles, commitment and dedication [29]. Moreover, the
cooperatives experienced employee turnover especially management are placed with the responsibility of the
that compensation outside the organization were more maximizing the value of the cooperatives [52]. Small
competitive and attractive. This poses great threat to cooperatives showed a very great extent manifestation on
cooperatives in maintaining and keeping the talent they having leaders with good rapport with the stakeholders
needed in achieving the organizational goals and and other agencies and who presents themselves as
objectives. fellow employees rather than masters. This result can be
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P-ISSN 2350-7756 | E-ISSN 2350-8442 | www.apjmr.com
Asia Pacific Journal of Multidisciplinary Research, Vol. 8, No. 1, February, 2020
Sarsale & Kilongkilong., Management Practices of Multipurpose Cooperatives Operating…
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attributed to the small size of these cooperatives which medium cooperatives and 3.14 for small cooperatives
creates more opportunity to have a good rapport with which means that the strategic linkages and partnerships
other stakeholders as well as with its employees. was practiced in a great extent manner among the
cooperatives.
Innovation Generally, findings from this dimension indicate that
As illustrated in Table 1, the results of the this was not yet fully maximized among the cooperatives.
manifestation of innovation as one of the management With the present trends especially among financial
practices among the chosen cooperatives which institutions where mergers were strategically pursued,
generated a factor mean of 3.00 computed from the this dimension must be taken advantage among
weighted averages of 2.93, 2.97 and 3.09 from large, cooperatives so as to advance the potential returns that
medium and small cooperatives respectively, the can be generated through partnerships and linkages.
respondents perceived innovation as manifested to a They should widen their social links, reinforce business
great extent among the cooperatives under study. dealings, and build a rigorous business atmosphere [55].
In this era of global integration, innovation is not Expansion platforms such as branching, collaboration,
anymore an option but a must in order to keep abreast partnership, and community involvement are considered
with the changing business climate. Cooperatives must to be key strategies for longevity [26]. However,
uphold proactive action to respond the changing needs of Centenaro and Laimer [56] found no relationship
the members as well as its playing field, more so, that between cooperative’s involvements in a network to their
innovation has a significant positive relationship with performance.
social performance [53]. The results from the indicators
of this dimension clearly portrayed that the cooperatives T-test on the Extent of Manifestation of Management
have already embraced the innovation process but not as Practices
well-established as to other firms. This can be attributed As presented in Table 2, there was no significant
to budgetary requirements of innovation especially in difference in the assessments made by management and
engaging technology advancements as well as on staff in terms of strategy, execution and culture. This
cooperative’s culture that focuses more on serving its implies that both respondents have the same perception
members than on innovating and risk-taking [54]. on the extent of employing these dimensions as
On the other hand, small cooperatives show a very management practice. However, in terms of structure,
great extent in implementing planned innovations and in there showed a significant difference on the assessments
encouraging at all levels to make innovation. This can be made by two groups of respondents as indicated by its p-
attributed to having a small organization where most of value of 0.023. This is because management rated the
the time an advantage especially in introducing changes indicators of structure higher than staff which connotes
as well as in monitoring those changes among the that the awareness level of both management and staff
employees. differed in terms of structure as they viewed the existing
practices differently.
Strategic Linkages and Partnerships Also, a significant difference was noted on the
Table 1 also portrays the result of the manifestation assessments made by both respondents on the indicators
of strategic linkages and partnerships as one of the under talent showing a p-value of 0.001 which means
dimensions of management practices among the selected highly significant. The management perceived talent as
cooperatives. The factor mean of 3.01 is derived from the practiced to a very great extent while the staff viewed as
computed means of 2.95 for large cooperatives, 2.94 for practiced to a great extent.
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Asia Pacific Journal of Multidisciplinary Research, Vol. 8, No. 1, February, 2020
Sarsale & Kilongkilong., Management Practices of Multipurpose Cooperatives Operating…
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Table 3. Relationship between and among Management Dimensions
Management Strategic Linkages
Strategy Execution Culture Structure Talent Leadership Innovation
Dimensions & Partnerships
Strategy .800** .648** .560** .554** .611** .603** .561**
Execution .800** .604** .554** .545** .595** .621** .563**
Culture .648** .604** .551** .655** .635** .588** .513**
Structure .560** .554** .551** .596** .647** .571** .585**
Talent .554** .545** .655** .596** .592** .757** .610**
Leadership .611** .595** .635** .647** .592** .631** .619**
Innovation .603** .621** .588** .571** .757** .631** .736**
Strategic Linkages &
.561** .563** .513** .585** .610** .619** .736**
Partnerships
** Correlation is significant at the 0.01 level (2-tailed).
This showed disparity on the existing practices of the execution can be associated to a well-crafted strategy.
cooperatives in terms of talent. This raised a question on Meanwhile, talent and innovation revealed a high
the level of satisfaction of staff in terms of talent relationship which clearly suggests that innovation
management of cooperatives. On the other hand, the requires great talent to be realized. Cooperative’s level of
management viewed leadership as practiced to a very innovation is highly dependent on the talent they had in
great extent compare to the staff’s view which only their organization. Conversely, highly-skilled employees
practiced to a great extent. In this situation, their are critical to the innovation function of the organization
assessments were highly significantly different as shown [57].
in its p-value of 0.001. This implied that the management
viewed the indicator as practiced higher than staff. In CONCLUSION AND RECOMMENDATION
other words, this finding signaled that the expectation The results of the study supported the concept
level of staff does not coincide with how management advanced by Nohria, Joyce and Roberson [9] that
viewed it. winning companies excel essential management
In terms of innovation, management responses were practices in order to sustain superior performance. This
highly significantly different from staff as revealed in its means that organizations that exhibit excellence in
p-value of 0.008. The management viewed it as practiced strategy, execution, culture, structure, talent, leadership,
to a very great extent while staff viewed it as practiced to innovation and strategic linkages and partnerships
a great extent. In other words, the management rated the perform better and have higher chances of success in its
indicators higher than staff. Lastly, both types of operations than those that do not.
respondents showed significant difference on their The study revealed that strategy, culture, and
assessments on the extent of employing strategic structure were manifested to a very great extent among
linkages and partnerships were practiced in the small cooperatives. When it comes to strategy, the
cooperatives as reflected in the generated p-value of findings can be attributed to limited scope of business
0.000 which means highly significant. Naturally, the operations among small cooperatives in which top level
management rated the indicators higher than staff as they management can religiously focus on these operations.
were more into this aspect. Similarly speaking, small cooperatives tend to have a
culture that upholds support among employees and
Relationship between and among Management clienteles. This was due to small organizational size in
Dimensions which mutual concerns and benefits were most likely
The relationship between and among management addressed immediately. Small organizations inclined to
dimensions are shown in Table 3. It can be gleaned on have a simple structure that can be easily understood
the table that strategy and execution showed a very high among its people. Furthermore, small operations require
relationship among all dimensions being analyzed. It simple structures with simple tasks. This will eventually
means that these two dimensions are interconnected to lead to immediate response to clients’ needs resulting to
each other significantly which sometimes called as the high satisfaction rate. In other words, small cooperatives
visionaries and the operators [12]. In other words, poor tend to be more efficient and effective in meeting
strategy can result to poor execution while a good member’s satisfaction. In summary, small cooperatives
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Asia Pacific Journal of Multidisciplinary Research, Vol. 8, No. 1, February, 2020
Sarsale & Kilongkilong., Management Practices of Multipurpose Cooperatives Operating…
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Asia Pacific Journal of Multidisciplinary Research, Vol. 8, No. 1, February, 2020