Cooperative HRD Practices: Case Study of Malaysia Presented by: MR. KAMALUDIN OTHMAN Director 1
SCOPE OF PRESENTATION A Brief Overview Of The Cooperative Movement In Malaysia The Important Of HRD As Perceived By Malaysian Government As Well As Its Importance For Cooperatives Current Practices Pertaining To Cooperative Education And Training In Malaysia HRD Approach In Cooperatives In Malaysia As Describes According To The Organisations Which Are Involve 2
Cooperatives in Malaysia Introduced in Malaysia to overcome exploitation of the rural people by middlemen and indebtedness among government servants. Initial coops were engaged in thrift and loan activities. Since 1970 s coops diversified into various business activities. Currently coops are regulated by Co-operative Societies Act 1993, Cooperative Societies Regulations 1995, the Registrar General s Circulars and cooperative by-laws The Cooperative Development Department is responsible for non agro-based and non fisherybased cooperatives. 3
Status of Cooperatives (as at 31 December 2006) Function No. of Cooperativ es Membership (individuals) Share capital/ subscription (RM) Total Assets (RM) Banking 2 781,058 2,087,795,956 27,807,591,244 Credit/finance 474 1,501,859 3,785,846,915 6,035,589,467 Plantation 212 206,531 181,182,364 955,748,788 Housing 92 89,968 110,363,123 463,719,088 Industrial 60 10,562 2,040,648 44,298,621 Consumer 3,048 2,628,093 227,738,414 944,860,877 Construction 112 100,456 22,430,389 260,650,965 Transport 440 158,329 61,316,363 182,558,481 Services 478 384,586 880,976,389 1,688,296,551 TOTAL 4,918 5,861,445 7,356,690,562 38,383,314,082 4
Definition of HRD A process of developing human expertise through training and development and organisational development for the purpose of improving performance (Swanson,2001). A system and process concerned with an organised series of learning activities, within specified time limits, designed to produce behavioural changes in the HR in such a way that it acquires desired level of competence for a present or future role. (Bhatia, Verma & Gary, 1994). 5
HRD in 9th Malaysia Plan (2006-2010) The development of HR is a key thrust in the 9th Malaysia Plan Encompasses the acquisition of knowledge and skills, entrepreneurial capabilities as well as the internalisation of positive and progressive attitudes, values and ethics through education, training and lifelong learning 6
HRD in Cooperatives Includes recruitment & placement, training, personal development, career planning & performance measurement (Taimni,2001) HR are those directly involved in the administration and management of the cooperatives: board members internal auditors employees members 7
Focus of HRD in Malaysian Cooperative Movement No study yet on HRD practices of cooperatives in Malaysia Focus on education & training Though there are many ways or methods to develop human resources, education and training constitute the main methods (Hooi, 2007) 8
Education & Training Includes: Cooperative education The philosophy, values, principles & practices of cooperatives Roles and responsibilities as provided for in the cooperative legislation Training A planned process to enhance knowledge, skills or attitudes to achieve effective performance 9
Education & Training- Malaysian Experience Role of Government: Cooperative Legislation Implementers: Ministry of Entrepreneur and Cooperative Development (MECD) (CCM) Cooperative Development Department (CDD) Ministry of Agriculture (MOA) Farmers Organisation Authority (FOA) Role of Cooperative Movement: ANGKASA Individual cooperatives 10
Cooperative Legislation Contribution by cooperatives to 2 trust funds : Cooperative Education Trust Fund(CETF) 2 % of their audited net profits yearly To finance the administration of the CCM and any other expenditure related to the advancement of cooperative education and training. Cooperative Development Trust Fund(CDTF) 1 % of their audited net profits yearly To finance any programme or activity undertaken by the apex body for the promotion of cooperative principles as well as to meet the necessary expenditure undertaken for the benefit and development of the cooperative movement - ANGKASA 11
Cooperative College of Malaysia (CCM) The only institution established for cooperative education & training Strategic Plan or Blueprint (2007-2011), Mission : to be the centre of excellence for the enhancement of human capital in the cooperative movement through innovative, effective and customer focused training, education and knowledge based services imbued with cooperative values and principles Vision : to be a world-class institution for cooperative education 12
CCM: Functions To conduct courses in the field of cooperative management and related areas of study. To undertake research and provide consultancy services to cooperatives. To produce publications related to cooperatives. 13
CCM : Target Participants Board members, members, internal audit committee, employees Government officers supervising/managing cooperatives School leavers Individuals 14
CCM :Skill-based Training Cooperative Administration Cooperative Law & Leadership Business,General Management & Entrepreneurship Accounting & Finance Information Communication Technology(ICT) 15
CCM : Training Programmes National Short term courses (2 days 2 weeks) Includes mandatory courses for board members & internal auditors In-campus Off-campus/zone In cooperatives (inhouse) 16
CCM : Training Programmes National Seminars, Executive Talks, Workshops 17
CCM : Training Programmes National Diploma In Co-operative Management -2 ½ years 18
CCM : Training Programmes International -Malaysian Technical Cooperation Programme (MTCP) Certificate in Cooperative Management Certificate in Cooperative Auditing Certificate in Cooperative Human Resource Management Certificate in Cooperative Desktop Publishing Certificate in Cooperative Poverty Reduction Programme 19
CCM : MTCP Participating countries Asia Pacific, Middle East, Africa, Eastern Europe, Caribbean Island and Central Asia 647 participants from 80 countries (1984-2006) 20
CCM : No. Of Training Programmes (2001 2006) No. of training programmes 400 350 300 250 200 150 100 50 0 380 376 363 342 315 227 2001 2002 2003 2004 2005 2006 Year 21
CCM : No. Of Participants (2001 2006) 25000 23160 No. of participants 20000 15000 10000 5000 0 8313 19671 16341 14430 18508 2001 2002 2003 2004 2005 2006 Year 22
CCM : Research & Consultancy Current research 5 projects Advisory/Consultancy Services to develop managerial & administrative skills of HR in cooperatives 23
CCM : Publications Biannual magazine in Malay Malaysian Journal of Cooperative Management (English)- annually Research Monographs Management Handbooks Compact discs 24
CCM : International Collaboration Exchange of information, materials, publications, expertise on subjects of common interest Attachments Networking in business activities among co-operatives Joint Research, consultancy projects 25
Cooperative Development Department(CDD) To assist in developing the cooperative movement in accordance with the Cooperative Act 1993 Cooperative education and training: Extension Division Cooperative Training Centre of Excellence (PULAKOP) 26
CDD: Extension Division Promote cooperative education through courses, seminars and workshops for cooperators Disseminate information through publications such as newsletters and magazines Organize the National Cooperative Day annually 27
CDD: PULAKOP Training for : Staff and officers of CDD Members, board members and staff of cooperatives Seminars, courses: Cooperative law Cooperative accounting and auditing, General administration ICT 28
Farmers Organisation Authority (FOA) Supervises 432 registered agro-based cooperatives (2005) Provide training and advisory services to members, board members and employees of cooperatives. 29
FOA : Training The training for board and ordinary members covers : roles and responsibilities in cooperatives, farm and cooperative management, leadership skills accounting and finance technical aspects on farming. The training for employees covers: farm and cooperative management marketing accounting and credit management technical aspects on farming 30
ANGKASA : Background An apex organisation of cooperative movement in Malaysia Has 3,335 members cooperatives, representing over 4.5 million members Undertakes various activities including education and training 31
ANGKASA : Education & Training Mandatory courses for board members & internal auditors Programmes for school cooperatives and youth: Cooperative Management & Administration School Cooperative Tourism Course Training of Youth Cooperators in ICT 32
ANGKASA : Education & Training Programmes for women: Women Leadership Skills Development of Women Entrepreneurs 33
ANGKASA : Education & Training Advisory services to develop HR in cooperatives Pre audit consultation and guidance service SEKKOP member database, accounting system and point-of-sale system(software) for school cooperatives 269 school cooperatives have benefited PEKA Cooperative Rehabilitation Service Advice and guidance on cooperative administration & management, by-laws, accounting & finance 60 cooperatives have benefited 34
Individual Cooperatives HRD practice is not widespread Some have training in the form of courses, seminars and workshops to develop their HR Some have given job related training to employees Very few have HRD plan and conduct their own member education programmes 35
Conclusion HRD is important as human resource contributes significantly to the overall performance of cooperatives Malaysian government has been supportive of the HRD in the cooperative development Education and training assume are vital ingredients in the HRD in Malaysia CCM, CDD and ANGKASA are key providers of training and education In Malaysia, currently other areas of HRD such as recruitment and placement, personal development, career planning and performance measurement is left to the discretion of the individual cooperatives 36
Thank You Co-operative College of Malaysia 103,Jalan Templer 46700 Petaling Jaya Selangor MALAYSIA Tel : 603 79649000 Fax : 603 79570434 Email : mkm@mkm.edu.my Website: www.mkm.edu.my 37