Full Project – Analysis of the causes and effect of poor performance of cooperative societies in Imo state

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CHAPTER ONE

• INTRODUCTION

A cooperative society is an association of persons who voluntarily joined together through a business organization by pooling their resources together for their social and economic well being. This resources pulled together are used to embark on business.

According to Felix Amoha Onoh (1996), he defined cooperative society as a union made up of a group of people in enterprise. These people must have common goals. He also stressed out that there is no cooperative that can function without a group of people. Farmers are the procedures of agricultural products, those that come together as a society.

These societies that cater for her members are disturbed by some problems which jeopardize their survival of cooperative society in Obowo local government are as follows:

• High level of illiteracy
• Poor financing
• Over dependency on imported goods
• Excessive government control
• Lack of incentives and human factor
• Poor management by the leader

1.1  BACKGROUND OF THE STUDY

The existence of cooperative societies is not like the existence of other societies or parties. This is because they perform different function according to the memorandum and article of association. These two aspects stipulates the extent to which an organization or business entity can operate.

The origin of cooperative societies in Imo state can be viewed under the origin of cooperative federation. This organization was registered as an organization in 1980 under the cooperative society’s law and rules of eastern Nigeria, 1963 also this organization was incorporated as a limited liability company on Feb. 26^th 1993.

The Imo cooperative federation is the mother union of all cooperative in the state, whether primary secondary or tertiary. As a result of the transfer of continued to be deliberately encouraged as on internal part of government development programmes partly as a means of raising the standard of living of the masses through a democratically organized and managed enterprise.

Cooperative societies in Obowo local government area of imo state was incorporated and established with the aim of increasing the standard of living of people in the community.

• STATEMENTS OF THE PROBLEMS

Due to the down turn in the economic situation in the country, the low contribution has not being better than be useful to the societies at large. The individuals cooperative members need to be self employed.  It is also the aim of the researcher to use this research work in enlightening individual association on the effects and need for the formulation of the cooperative societies, this becomes necessary becomes cooperative societies helps in stabilizing prices of products.

• OBJECTIVES OF THE STUDY

1. To identify how cooperative members measure the performance of their cooperative
2. To identify the major causes of poor performance of cooperative societies.

• To determine the effects of poor performance on the membership of cooperative societies.

1. To identify how best to tackle the problem of poor performance in cooperative societies.

• RESEARCH QUESTIONS

In order to analyzed the causes and effect of poor performance of cooperative societies within Obowo L.G.A. Imo state.

1. What strategies have the management used
2. How do cooperative members measure the performance of their cooperative society?

• What are the major causes of poor performance of cooperative societies.

1. What are the effects of poor performance on the membership of cooperative societies
2. How can be problem of poor performance of cooperative societies be tackled.

• STATEMENT OF HYPOTHESIS

Here are the necessary hypotheses

Ho: Poor performances of cooperative societies have no significant effect on the members.

Hi: Poor performances of cooperative societies have significance effects on the members

• SIGNIFICANCE OF THE STUDY

In this study, the researcher has set out to examine the analysis of the causes and effects of poor performance of cooperative societies in Imo state. It is expected that the work will be of interest to the general public, to managers, shareholders, owners of enterprises and the government. The study is expected to enkindle their interest more and they will take note of various recommendations mentioned here and help steer the management team towards forming a sound cooperative society. The study will also help to serve as literature to individuals or corporate bodies, who want to carry further research on this topic.

• SCOPE OF THE STUDY

It is obviously difficult for the researcher to undertake the study of the universe of the cooperative societies and their poor performance. Due to the uniformity in the cooperative societies, the scope of this study is restricted to the cooperative societies in Imo state, a case study of selected cooperatives in Obowo L.G.A. Imo state.

• LIMITATION OF THE STUDY

The following limitations are inherent in the study.

1. The use of questionnaire, in terms of objectivity. Truthfulness, and the sincerity from subjects are acknowledged, therefore the tendency for a degree of error to occur in the final evaluation of data.
2. Other limitations include financial constraints, time factor and getting the necessary research materials.

• DEFINITION OF TERMS

1. Cooperative societies: Is an association of persons who have voluntarily joined together to achieve a common economic end.
2. Consumer: In the exchange process, the person who uses a product/services

• Poor performance: This occurs when difficulties arises in cooperative societies which affect their production, marketing and service cooperation in a particular area.

1. Agriculture: Agriculture is the process of cultivating plants and rearing of animals for the satisfaction of human wants/consumption.

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Full Project – Analysis of the causes and effect of poor performance of cooperative societies in Imo state