Question

Cooperative organisation work on the principle of democracy, comment? (grade 11 business study)​

Answer 1

Answer:

A business organisation can take many forms. One such form is that of a cooperative society. Such societies have unique features of joint ownership and democratic leadership. Let us take a brief look at their features and some types of societies l..s

Answer 2

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The cooperative organisation is a democratic set-up in following cases-

I.Voluntary Membership:

Everyone is at liberty to enter or leave the co-operative society as and when he likes. Nobody is compelled to join a co-operative society. The members are also free to use or not to use the services of the society. Though there is no limit on the membership of the societies, sometimes certain limits are imposed to keep the society as a workable group. Consumer co-operatives, insurance societies etc. may limit membership to a number which is properly managed. Voluntary member is the main ingredient of co-operation. Everybody willing to join a society is allowed to do so. Voluntary membership has been responsible for the success of co-operatives movement.

II. Political and Religious Neutrality:- The membership of a co-operative society is opened to all irrespective of religion, caste, creed, colour or political affiliation. The co-operative movement can attract a large membership only by staying out of politics where people have divided opinions. Co-operatives represent universal brotherhood and it should not lose its path in political contradictions. There is no place for caste or discrimination in co-operative . The primary aim of co-operatives is to serve its members. So, co-operative societies are neutral as far as political and religious affiliations are concerned.

III. Democratic Management:- The management of a co-operative society is always on democratic lines. All the members of a society elect a body of persons to conduct and control the day-to-day working of the society. The members frequently meet and give guidelines to its executive. The management is elected through one man one-vote system. The day-to-day work is conducted by expert persons but the ultimate control lies with the members. In a co-operative, democracy is more than a system, it is a condition of its business success. Co-operative business stands or falls with democracy.

IV. One Man, One Vote:- In co-operative societies every member is given one vote irrespective of his contribution towards their basis of number of shares held by a person. So persons having large number of shares control the organisation. In a co-operative, nobody can control the society on the strength of his wealth. All members have equal voice in the management of the society.

V. Service Motive:- The primary objective of co-operative societies is to provide service to their members. The aim is not to earn profits as is the case in all other forms of organisations. The service of members is the fundamental object of co-operative societies. The societies earn a small amount of profit to cover up administrative expenses. The profit is generally earned when goods are sold to non-members.