Human Resource Management Practices In Cooperative Sector

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2 Human Resource Management Practices In Cooperative Sector Dr. Shaikh Aftab Anwar IDEA PUBLISHING i

3 Publishing-in-support-of, IDEA PUBLISHING Block- 9b, Transit Flats, Hudco Place Extension Near Andrews Ganj, New Delhi Zip code: Website: Copyright, Author All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form by any means, electronic, mechanical, magnetic, optical, chemical, manual, photocopying, recording or otherwise, without the prior written consent of its writer. ISBN: Price: D The opinions/ contents expressed in this book are solely of the author and do not represent the opinions/ standings/ thoughts of idea publishing. Printed in India ii

4 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. iii

5 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 iv

6 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. v

7 Contents X Sr. No. Chapters Name Page No. 1 Doctrine Of Human Resource Management. In Cooperative Tables: Unit-wise sample distribution of employees Stratification of Employees 2 Profiles Of The Selected Institutions Tables: Composition of Board of Directors of M.S.C. Bank Progress made by M.S.C. Bank during to Information about the loan demand, loan sanctioned and disbursed by the Maharashtra State Cooperative Housing Finance Corporation during to The beneficiaries of Finance - M.S.C.H.F.C. M.S.C.H.F.C. - The vi

8 statement showing progress during the period to Progress made by Maharashtra State Cooperative Marketing Federation Limited, Bombay during to 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 Personnel Management Practices & Profile. Table: Employee strength category-wise in M.S.C. Bank during to Number of persons appointed at M.S.C. Bank during to Employee Strength The Maharashtra State vii

9 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 to through different training centres / Institutions M.S.C. Bank Staff trained during the years to through different training centres / Institutions - M.S.C. Bank Staff trained through Staff Training Centre Nagpur & M.S.C. Bank Staff trained during the years to through Staff Training Centre, Nagpur M.S.C. Bank Staff trained during & through Staff Training Centre, Nagpur viii

10 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 ix

11 Finance Corporation Limited, Bombay The Organisation Structure of Administration Department of the Maharashtra State Cooperative Marketing Federation Limited, Bombay 4 Wage & Salary Administration 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 Mean Scores & standard deviations of variables x

12 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 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 xi

13 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 Annexures List of Apex / State Cooperative Institutions in Maharashtra State Questionnaires 9 Bibliography xii

14 DOCTRINE OF HUMAN RESOURCE MANAGEMENT IN COOPERATIVES 1 CHAPTER 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 1

15 Human Resource Management Practices In Cooperative Sector 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] 2

16 Dr. Shaikh Aftab Anwar 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 3

17 Human Resource Management Practices In Cooperative Sector 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 4

18 Dr. Shaikh Aftab Anwar 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] 5

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