060 218 Icm2011 Pg0804 0837 Multipurpose Cooperatives

INTERNATIONAL CONFERENCE ON MANAGEMENT (ICM 2011) PROCEEDING

804

THE PERFORMANCE OF MULTI-PURPOSE COOPERATIVES IN THE FIRST DISTRICT OF THE

PROVINCE OF ORIENTAL MINDORO, PHILIPPINES

Jesse T. Zamora, Ed.D. and Christian Anthony C. Agutaya, Ph.D.

College President and Research and Evaluation In-charge Mindoro State College of Agriculture

and Technology (MINSCAT) Alcate, Victoria

Oriental Mindoro, Philippines

Contact Numbers: +639205353899, +63432884229 [email protected]

Abstract

Cooperativism today is a growing movement that appears to have been widely appreciated in Third World Countries. Cooperatives have been perceived to effect meaningful changes particularly to the masses. Specifically, through cooperativism, an individual can increase his income and purchasing power; he can stimulate capital formation through systematic and continuous savings for productive and development purposes and he can develop human resources as tools in community development. Cooperatives are products of group cooperation. People with common interests and needs for work together satisfy these needs. However, the abilities of people to promote their common interests and satisfy their needs greatly depend on the available human, financial and material resources they possess. The highlight of this study included the different views on the role of members, possible areas of their involvement and the performance of multi-purpose cooperatives in the First District of the Province of Oriental Mindoro, Philippines. Field Research: Operation and Management Performance


805

Introduction Integral to human nature is for man to associate with others for his own welfare and well-being. This need for mutuality and fellowship is the foundation of cooperative efforts. Cooperation is being seriously considered as the best possible alternative mode of organizing business to assure economic and social stability. The best way for people to participate in the local development and local governance is through the cooperatives. Cooperatives are advantageous to the people because they advocate democratic and voluntary membership with common needs and interests, bonded by the shared spirit of mutual understanding, cooperation and respect. These are where development permits can be better met and carried out. Sustainable development prospers in an environment of peace, cooperation, unity, understanding, respect, equity and social justice. Cooperatives when imbued with these very elements can be a fast-tracking mechanism in ensuring sustainable development. Governed by the universal principles of cooperativism, the cooperatives play a vital role in educating their members and through which the economic, political, cultural and social, scientific and technological as well as moral aspects of development can be enhanced. People are the center piece of all developmental efforts and interests of cooperatives, therefore, people in the communities, when harnessed through their continuing cooperative education and training programs, can indeed be effective partners of sustainable development activities. The Philippine government, in the past, took an active and aggressive role in the promotion and organization of cooperatives. By means of “crash programs,” the government extended technical and financial assistance to cooperatives. The result was a dismal and expensive failure. Learning from such mistakes, the government has assumed a more rational role in cooperative development. Oriental Mindoro is highly dependent upon agriculture. More than half of the populations were engaged in agriculture, hunting and forestry.


806

Exports comprise primarily agricultural products. The province remains to be the food basket in Region IV. The development of commercial and industrial sectors is some parts of the province have led to the formation of multi-purpose cooperatives which have also made their mark in the local economy. First District is located in the upper half portion of the Province of Oriental Mindoro. It lies just south of Metro Manila and Batangas and is composed of seven (7) towns and one (1) city such as Puerto Galera, San Teodoro, Baco, Calapan City, Naujan, Victoria, Socorro, and Pola. First District of Oriental Mindoro, despite the technological development that happens in the country remains basically an agricultural district. The principal crops are rice, corn, fruits, vegetables, coconut and lumber. The major industries are farming, fishing, tourism and cottage industries. Currently, First District is the hub of investments due to its proximity to Metro Manila, its rich natural resources and availability of skilled/trained labor force, and favorable peace and order climate. Food security and agro-industrialization have turned the First District into one of the country’s tap agricultural and economic zones. Hence, 15 multi-purpose cooperatives contribute to the development of the district. The premised of the foregoing ideas inspired the researcher to conduct a study on the performance of multi-purpose cooperatives in the First District of the Province of Oriental Mindoro, Philippines. Theoretical Framework

This study was anchored on the most important theories about organization.

Katz and Kahn (2004) revealed that system theory is basically concerned with problems of relationships, of structures, and of interdependence, rather than with the constant attributes of object. Webster defines a system as a regularly interacting or interdependent group of items forming a unified whole, which is in, or tends to be in, equilibrium.


807

Negandi, as cited in the book of Katz and Kahn, said that a system's attributes, which are the interdependence and interlinking of various subsystems within a given system, and the tendency toward attaining a balance, or equilibrium forces one to think in terms of multiple causation in contrast to the common habit of thinking in single-cause terms.

In addition, an organization must be an open system that includes interaction between subsystem and its external environment. Open systems can be defined as a system of interdependent activities, that is, systems are neither a formal structure nor as an organic entity. As described by Scott in the book of Katz and Kahn, the parts of systems join and leave or engage in ongoing exchanges with the organization depending on the bargains they can strike. Some of these activities are tightly connected; others are loosely coupled. That is, all of the parts must be continuously motivated to produce and reproduce in a system. Scott also emphasized that systems are interdependent activities linking shifting coalitions of participants; the systems are embedded in - dependent on continuing exchanges with and constituted by - the environments in which they operate.

The salient characteristic of an open system is a self-maintenance based on a process of resources from the environment and interaction with the environment. Katz and Kahn summarized the essential characteristics of open systems as follows: “The open-system approach begins by identifying and mapping the repeated cycles of inputs, transformation, output and renewed inputs which comprise the organizational patterns. Organizations as a special class of open systems have properties of their own, but they share other properties in common with all open systems. These include the importation of energy from the environment, the through-put or transformation of the imported energy into some product form... the exporting of that product into the environment, and the re-energizing of the system from sources in the environment. Open systems also share the characteristics of negative entropy, feedback, homeostasis, differentiation, and equifinality. The law of negative entropy states that systems survive and maintain their characteristic internal order only as long as they import from the environment more energy than they expend in the process of transformation and exportation." A system is a functional whole composed of set of subsystems and components, when coupled together, generate a level of organization that is fundamentally different from the level of each individual subsystem. General systems’ theorists believe that, in spite of the obvious differences among the many kinds of living and nonliving systems, they share very general characteristics and that it is important to


808

discover what these are. The study of systems is by definition concerned with change.

More so, subsystems or parts of a system are systems at the level below the one of which they are parts. Each of a living system's subsystem, like the system as a whole, keeps a number of variables in steady state (Levine and Fitzgerald, 1992). A system's function and structure may be studied, analyzed and described through basic subsystems.

Hoy and Miskel (2006) outlined the following subsystems with genotype functions:

1. Production and Technical Subsystem. This subsystem is concerned with converting inputs into outputs and may also be classified as a productive or economic part, which creates wealth, manufactures goods, and provides services, that is an organization that provides services.

2. Supportive Subsystem. Two major functions of concern here are: (a) procuring input and disposing output; and (b) promoting and maintaining good relationships between the organization and its environment.

3. Maintenance Subsystem. Activities of this subsystem deal with personnel in the organization in all facets (e.g. role, arrangements, recruiting, selecting, motivating, disciplining, and socializing). The focus is on maintaining stability of the organization.

4. Adaptive subsystem. The functions of this subsystem are designed to insure that the organization can meet the changing needs of the environment (e.g. research, planning, development and so on).

5. Managerial subsystem. The function of this subsystem is to coordinate the functions of the other subsystems, settle conflicts among them and hierarchical levels, and relate the total organization to its environment. This subsystem cuts across all subsystems of the organization in its goal to encourage all the subsystems to obtain a concerted effort to achieve the highest level of functioning of the total system. Systems theory is very related to the present research because cooperatives are vitally considered as system which depend on the three


809

dimensions like input, process and output. The researcher perceives that resources (described as inputs) are very important in transforming them into outputs. In this study, the cooperative’s personnel complement financial resources and programs could help them satisfy their members through the economic related projects they undertake. However, the manner by which these programs are undertaken is dependent on what process will be employed. Management practice advanced by these cooperatives are attributed to be the effective use of techniques in program implementation.

Corollary to the systems theory is the path-goal theory. The life

and future of cooperative greatly depend on dynamic leadership. It has to sustain its increasing roles and responsibilities. It has to anticipate needs and problems and move forward. Otherwise, it remains stagnant, its relevance and economic viability may likely disappear. And this dynamic leadership is best defined in the Path-Goal Approach to Leadership Effectiveness by Robert House (Santos, 1999).

According to this theory, the behavior of the leader is acceptable and

satisfies subordinates to the extent that they see it as a source for their satisfaction. Another proposition of the theory is that behavior of the leader increases the effort of subordinates, that is, it is motivating, in so far as this behavior makes satisfaction of the needs of subordinates dependent on effective performance and the behavior enhances the subordinates’ environment through coaching, directing, supporting and rewarding.

Therefore, the leader’s function consists of increasing the number

and kinds of personal payoffs to subordinates for work-goal attainment, and making paths for these payoffs easier to travel by clarifying the paths, reducing the roadblocks and pitfalls, and increasing opportunities for personal satisfaction. The theory is more a research tool for understanding leadership style than a proven guide for managerial action.

The key to the theory is that the leader influences the paths between

behavior goals. The leader can do this by defining positions and task roles, by removing obstacles to performance, by enlisting the assistance of group members in setting goals, by promoting group cohesiveness and team effort, by increasing opportunities for personal satisfaction in work performance, by reducing stresses and external controls, by making expectation clear and by doing other things that meet people expectation.


810

The path goal theory guides the practicing cooperative managers. At the same time, one must realize that models further testing before the approach can be used as a definite guide for managerial action.

In addition, the theory of Social Change by Durkheim (Todaro, 1997) states that economic development only occurs in the community if the need is perceived by the people who depend on the social, economic and political agenda of a nation. Cooperatives, which have been acknowledged to fill the void created by corrupt and inept government officials and the bureaucratic system, are very popular and hailed to have improved the quality of life of their beneficiaries. This is because cooperatives are helpful in delivering basic services like health nutrition, education and credit facility. This goal of cooperatives, anchored on their visions and ultimate aims, liberate the beneficiaries from the clutches of economic deprivation, cultural backwardness and political slavery. Durkheim expanded this theory by saying that the beneficiaries of economic changes are bonded by common outlooks, values, ideas and life principles wherein development evolves from simple to highly beneficial ones. The organizations, states and entities delivering economic benefits, in particular, accompany social advancements and political awakening as chain reaction wrought by the program. Durkheim found that people benefited by social developments should be closely bonded.

This theory is binding to the present research study. It explicitly explains that cooperatives are very instrumental in delivering benefits that serviced beneficiaries, thus bringing development to the members in particular and to the community in general. In this study, multi-purpose cooperatives are credited for creating many development and changes that occurred in the lives of their members. These are undoubtedly as results of unity of ideas, values and perceptions. People's dealings of benefits require them to be bonded in the name of the cooperatives articles of cooperation and principles governing their existence. Economic change is supported by social changes that is made to exist by these cooperatives through their programs and projects.

In connection with the previous theory mentioned, economic development theory is also worth mentioning for the purpose of justification.


811

Myrdal (Villegas and Abola, 2000), meanwhile opines that economic progress is a very essential component of development although non-economic factors such as values, attitudes, institutions and policies are just as important. In addition, he views the condition of the South Asias' Regions as a social system which is made up of a number of conditions with the following categories:

a. Output and incomes. What a country produces and how much its people earn for their efforts play a central role in the study of development.

b. Levels of productivity. Closely related with the same

category, it directly affects the directions and intensity of economic activity. Myrdal mentions that in an underdeveloped country, the industrial sector is small, the techniques used in agricultural and traditional industries are crude and capital investment is not significant.

c. Levels of Living. The amount and quality of goods and

services regularly consumed by the average person. Low levels of living is one of the components of underdevelopment.

d. Institutions. Social institutions that need to be changed are

outmoded and land-tenure system, social and economic monopolies, educational and religious structures and systems of administration and planning. Myrdal has the concept of the modern man attitudes, integrity, honesty, diligence, efficiency, punctuality, fragility, self-reliance, resourcefulness, cooperativeness and willingness to take the long view.

e. Rationality. Economic policies and strategies should be

relevant and rooted as deeply as possible in the knowledge of relevant facts. There should be a search for a coordinated system of policy and measures that can bring about economic growth and development.


812

It was further explained that for an economic structural change to be very meaningful, it has to create changes in attitudes and institutions and policies are even or often deemed very necessary. Myrdal also holds that Third World Countries like the Philippines are soft states which are characterized by lack of social discipline such as deficiencies in legislation's, in low observance, the widespread disobedience by public officials to rules and directives and their collusion with the powerful elite. Thus, the theory of economic development by Myrdal is closely linked to the present research study because it mentions the five significant indicators with which cooperatives have seriously taken them along economic perspectives. Cooperatives work committedly by improving the outputs and income, level of productivity, levels of living, institutions and rationality of the people by providing significant programs purported to develop plights of the cooperatives' beneficiaries. Of these theories presented, the Social Change by Durkheim and Myrdal’s economic theory greatly support the present study. These theories take development as effects of economic progress any social institution undertakes.


813

Conceptual Framework Based on the theoretical discussions, the conceptual framework is drawn.

Factors Affecting the Performance of Multi-Purpose Cooperatives in the First District of Oriental Mindoro Profile of Multi-Purpose Cooperatives

a. number of years of operation b. number of members c. capitalization

Success of Multi-Purpose Cooperatives in the First District of Oriental Mindoro

Level of Commitment a. board of directors b. operations group c. members

Services Rendered a. providential services b. consumer services c. credit services d. marketing services

Financial Aspect a. liquidity b. profitability c. stability

Cooperative Development Program a. expansion/diversification b. members' financing support c. affiliation with cooperatives for tie-

up agreements

Economic Success a. self-sufficiency b. increase in income c. increase in opportunities d. livelihood program

Social Success a. community bonding/ cooperativism b. organizational leadership


814

Figure 1 in the preceding page presents the conceptual framework of this study. Two (2) variables are included in the paradigm.

The first variable are the factors affecting the performance of multi-

purpose cooperatives in the First District of Oriental Mindoro in terms of profile of multi-purpose cooperatives-number of years of operations, number of members and capitalization; level of commitment- board of directors, operations group and members; services rendered- providential services, consumer services, credit services, and marketing services; financial aspect, liquidity, profitability and stability; and the cooperative development-expansion/diversification, members' financing support and affiliation with cooperatives for tie-up agreements.

The second variable is the success of multi-purpose cooperatives in the First District of Oriental Mindoro in terms of economic success- self-sufficiency, increase in income, increase in opportunities and livelihood program; and social success in terms of community bonding/cooperativism and organizational leadership.

Statement of the Problem This study sought to determine the performance of the multi-purpose cooperatives in the First District of Oriental Mindoro, Philippines. Specifically, this study answered the following questions. 1. How do the respondents perceive the factors affecting the performance of multi-purpose cooperatives in the First District of Oriental Mindoro in terms of: a. profile of multi-purpose cooperatives

1. number of years of operation; 2. number of members; and 3. capitalization

b. level of commitment of;

1. board of directors; 2. operations group; and 3. members


815

c. services rendered; 1. providential services; 2. consumer services; 3. credit services; and 4. marketing services

d. financial aspect like;

1. liquidity; 2. profitability; 3. stability; and

e. cooperative development program

1. expansion/diversification; 2. members' financing support; 3. affiliation with cooperatives for tie-up agreements?

2. How do the respondents perceive the success of multi-purpose cooperatives in the First District of Oriental Mindoro in terms of:

a. economic success;

1. self-sufficiency; 2. increase in income; 3. increase in opportunities; 4. livelihood program; and

b. social success

1. community bonding/cooperativism; 2. organizational leadership?


816

Literature Review The book entitled "Environment and Development: A Pacific Island Perspective," published by Asian Development Bank (1992) summarizes the significant constraints and issues perceived to be of alarming derailment in achieving sustainable development in South Pacific Regions as follows: a) lack of communications and coordination among government agencies and between government and private sector; b) scarcity of well-trained personnel; c) weakness of education programs; d) serious lack of awareness about the contribution of resource issues, especially their cumulative and long-term effects; e) commercial intrusions into subsistence sector; f) aspects of land tenure; g) weakness in environmental planning, monitoring, planning and legislation; h) lack of recurrent funding; i) short-term aid and projects; and j) low community price. It is a glaring fact that cooperatives never focus so much on a single dimension of operations. The cooperatives studied have their plan to indulge in environmental protection program to better extend their areas of services to the people. Cooperatives' linkage with private and public agencies is vital in realizing its pursuit for environmental development through consciously integrating the development of environmental values among cooperative members. The document of United Nations Conference on Environment and Development (UNCED), Agenda 21 (1992) reviews the priorities of developing countries and suggests essential ways to attain sustainability. Developing countries must facilitate their own priority actions and needs for support and that plans must be established through public participation and community involvement so that every sector will be committed to carry them out. Economic growth, social development, and poverty eradication are the first and overriding priorities in developing countries and are themselves essential to meeting national and global sustainability objectives. The literature presented by UNCED manifests relationship to the present research. Cooperative movement is the people's ideal and viable means to participate in the implementation of development efforts by the government, which is true on the members of the cooperatives.


817

Methodology Research Design To carry out the purpose of this study, the researchers used descriptive method in order to describe the situation systematically. Sanchez (1998) says that a descriptive research method, in some extent, helped the researcher identified and described the performance of the multi-purpose cooperatives in the First District of Oriental Mindoro, Philippines. Respondents of the Study

This study was conducted in fifteen (15) multi-purpose cooperatives in the First District of Oriental Mindoro.


818

Table 1 Respondents of the Study

Respondents of the Study (Members) Population Sample Taken Percentage

San Teodoro 1. JOSTMPC Baco 2. ARC Cooperative of Water Calapan City 3. CALSEDECO 4. CALFAMCO 5. ORMECO MPC 6. Calapan Vendors Multi-Purpose Cooperative Naujan 7. Naujan MPC Victoria 8. Mabini Farm Family MPC 9. Victoria Balikatan MPC 10. Livestocks Producers and Raisers MPC 11. Bagong Buhay II MPC Soccorro 12. Socorro Plan Credit and Development Cooperative Pola 13. Putting Cacao MPC 14. Sist Paluwagan ng mga Guro MPC 15. Matulatula ARC Cooperative

49

48

844 533 202

1,306

528

156 52

139 283

38

59 100 135

4 4

69 44 17

107

43

13 4

12 23 3 5 8 11

8.16%

8.33%

8.18% 8.26% 8.42%

8.19%

8.14%

8.33% 7.69%

8.63% 8.12%

7.89%

8.47% 8.00% 8.15%

TOTAL 4,472 367 8.21%

Table 1 shows the representation of respondents, the population and

the corresponding percentage derived from the data available in their documents. It is shown that the fifteen (15) multi-purpose cooperatives have 4,472 regular members. The researcher used area sampling in choosing the 15 multi-purpose cooperatives.


819

In determining the 367 sample respondents, the researchers used the Slovin’s Formula. The resultant sample was proportionately distributed according to their total population. Finally in the selection of the respondents, the researchers used simple random sampling. Formula: N n = ---------------- 1 + Ne2 Where: n = sample size N = population size e = desired margin or error; 5%

(percent allowance for non-precision because of the use of the sample instead of the population)

N n = ---------------- 1 + Ne2 Where:

N = 4,472 4,472 n = ---------------- 1 + 4,472 (.05)2 4,472 = ---------------- 1 + 4,472 (.0025)2 4,472 = ---------------- 1 + 11.18 3,196 = ---------------- 12.18 n = 367


820

Sources of Data

To attain the purpose of the study, the researchers utilized documentary and empirical data which were gathered from the members of 15 multi-purpose cooperatives. Other vital records were taken from their offices.

Documents enumerated below are deemed vital to enhance the

valuation and analysis. 1. Republic Act No. 6938 - An Act to Ordain a Cooperative Code of

the Philippines 2. 1987 Constitution 3. Accomplishment Reports of Cooperative Development Authority

(CDA) 2002- 2006 Data-Gathering Procedures The researchers distributed and retrieved the questionnaire personally from the respondents. After the retrieval of the questionnaire, the researchers tabulated and processed the data manually and by machine. Quantitative and qualitative data processing were done to arrive at precise analysis and interpretation of results. Tables were devised in order to organize, summarize and analyze the data gathered to show how variables related with each other. Instrumentation The researchers used standard questionnaire which is consists of two parts to gather all pertinent data needed.

Part I consisted of the factors affecting the performance of multi-purpose cooperatives in the First District of Oriental Mindoro in terms of profile of multi-purpose cooperatives-number of years of operations, number of members and capitalization; level of commitment- board of directors, operations group and members; services rendered- providential services, consumer services, credit services, and marketing services; financial aspect, liquidity, profitability and stability; and the cooperative


821

development-expansion/diversification, members' financing support and affiliation with cooperatives for tie-up agreements.

Part II contained the success of multi-purpose cooperatives in the First District of Oriental Mindoro in terms of economic success- self-sufficiency, increase in income, increase in opportunities and livelihood program; and social success in terms of community bonding/cooperativism and organizational leadership. The instrument was based on the questionnaire of the researchers used in his masteral study. This was presented and ordered based on the arrangement of the specific questions in the statement of the problem. Tabulation and Scoring of Data All responses provided by the respondents were tabulated. Scoring of data, on the other hand, was based on the 5-point numerical scales which were used by the researcher. Each point had its corresponding verbal descriptions and statistical limits presented in table 1.


822

Table 2 Numerical Value, Statistical Limits

and Value Descriptions

Numerical Value

Stat. Limits

Verbal Description Part II Part III Part IV

5 4 3 2 1

4.50-5.00

4.50-4.49

2.50-3.49

1.50-2.49

1.00-1.49

V.H. Extent

H. Extent

M. Extent

L. Extent

V. L. Extent

V.H. Extent

H. Extent

M. Extent

L. Extent

V. L. Extent

V.H. Extent

H. Extent

M. Extent

L. Extent

V.L. Extent

Statistical Tools Used In numerically treating, interpreting and analyzing all the gathered data, the researchers used the mean, frequency, percentage and ranking, all forms of descriptive statistics, were utilized in answering question numbers 1, 2, 3, and 4.


823

Results and Discussions

Table 3 Profile of the Multi-Purpose

Cooperatives in the First District of Oriental Mindoro

Multi-Purpose Cooperatives Number of Years of

Operation

Number of Members

Capitalization (in Million)

San Teodoro 1. JOSTMPC Baco 2. ARC Cooperative of Water Calapan City 3. CALSEDECO 4. CALFAMCO 5. ORMECO MPC 6. Calapan Vendors Multi-Purpose Cooperative Naujan 7. Naujan MPC Victoria 8. Mabini Farm Family MPC 9. Victoria Balikatan MPC 10. Livestocks Producers and Raisers MPC 11. Bagong Buhay II MPC Soccorro 12. Socorro Plan Credit and Development Cooperative Pola 13. Putting Cacao MPC 14. Sist Paluwagan ng mga Guro MPC 15. Matulatula ARC Cooperative

10 9

16 16 15

12

16

15 15

15 10 7

13

10 9

49

48

844 533 202

1,306

528

156 52

139 283

38

59

100 135

0.25

0.05

15.40 1.61 9.71

6.31

1.80

0.77 0.20

0.22 1.90

0.13

0.06

0.29 0.15


824

Table 3 presents the profile of the multi-purpose cooperatives in the First District of Oriental Mindoro in terms of number of years of operation, number of members and capitalization. As registered multi-purpose cooperatives, CALSEDECO, CALFAMCO and Naujan MPC have been operating for 16 years while Socorro Plan Credit and Development Cooperative has been in the service for 7 years. As regards membership, Calapan Vendors Multi-Purpose Cooperatives has a total of 1,306 while Socorro Plan Credit and Development Cooperative has the least number of members which is 38. Concerning capital, CALDECO has about Php.15.4 million while Putting Cacao MPC has the least total capital of Php. 0.06 million. Findings imply that these multi-purpose cooperatives are properly managed. This is made evidently by financial records and reports which are up-to-date and are available to members. Moreover, opinions of each member are recognized and respected. Rules are made clear for all the members. Leaders of the cooperatives attributed the success of their cooperative through hardwork, perseverance and cooperation of the members. The concern of the multi-purpose cooperatives in the First District of Oriental Mindoro for total human development likewise contributes to their success after long years of operation. The researcher finds that the extrinsic qualities of the multi-purpose cooperatives namely, the number of years of operations, number of members and capitalization is partly contributory to success. Intrinsic qualities, however, could be serve as bases in coming up with an in-depth analysis by the researcher considering determining factors of operation, economic and social success which are fairly and unprejudicedly evaluated.


825

Table 4

Summary Results of the Computed Mean Scores of Respondents’ Perception on the Determining Factors

of Performance of the Multi-Purpose Cooperatives in the First District of Oriental Mindoro

Items Overall Mean Description

1. level of commitment of: a. board of directors b. operations group c. members 2. services rendered a. providential services b. consumer services c. credit services d. marketing services 3. financial aspect like a. liquidity b. profitability c. stability 4. cooperative development program a. expansion/ diversification b. members’ financing support c. affiliation with cooperatives for tie-up agreements

3.65 3.17 3.78

3.77 4.12 4.02 3.85

3.91 3.66 3.70

3.82

3.68

2.94

High Extent Moderate Extent

High Extent

High Extent High Extent High Extent High Extent

High Extent High Extent High Extent

High Extent

High Extent

Moderate Extent

Grand Mean 3.70 High Extent


826

Table 4 presents the summary results of the computed mean scores of respondents’ perceptions on the determining factors of performance of the multi-purpose cooperatives in the First District of Oriental Mindoro. Results showed that the determining factors of performance of the multi-purpose cooperatives in the First District of Oriental Mindoro received a computed grand mean of 3.70 described as high extent in consideration of the above indicators.

Looking in the items, members of Operation Group need the much needed and necessary training to make sure they could perform their jobs fully well. The multi-purpose cooperatives have human resources and manpower that are deeply committed to uplift individual and group interest through cooperative movement. Commitment has much to do with the cooperatives' pursuit of development in decision-making, policy and program execution and support. Furthermore, these cooperatives would most even amplify business operations, manifest thrifty use of financial resources and desire for financial sufficiency because they strictly want to live up the principle of cooperativism with profit and service orientation. On the other hand, these cooperatives are truly offering their various types of services in their most efficient and effective manner. The cooperatives have been able to make themselves the people's tough partner in attaining development goals, especially those that are very economic in nature. The cooperatives' effectiveness in delivering services is a result of their manpowers' untiring effort to innovate planning, policy-formulation and management. Finally, individual member's support to all activities of the cooperative accounts for this very desirable outcome. Finally, member development through supporting their business and expansion of current business operations are the due concerns of these cooperatives. To a moderate extent, affiliation is not much taken into


827

account. This is because they focused on making the organization's members truly attached to one another which could be substantiated by the economic gains the members mutually benefit from effective performance of their cooperative's operation functions. These cooperatives may be driven by their desires to get affiliated, however, its tough foundation in the local level is their priority.

In light of the foregoing findings, Gangoso's (1993) study entitled "Performance Evaluation of a Cooperative Credit Union: The Case Study of the University of San Agustin Faculty Association Kilusang Bayan for Credit Inc." provides parallel findings to the current research study. Gangoso concentrated on the evaluation of the credit union's management in terms of exercise of functions of Board of Directors, officers, committee members and organizational leadership. Her study which also delved on extensive member's participation in the formulation, implementation and evaluation of the credit union's programs and activities strengthens the result of this present study.

A part of Gangoso's study conducted in 1993 binds closely to the present research in which she found out that cooperative and credit union should be effectively managed in terms of liquidity, stability and profitability and growth in membership aspect, assets, savings deposit and loan repayment

. The present research and that of Gangoso's are of similarity and

quite related to each other. On the other hand, the study of Ang (1994) entitled "The Evaluation of the Projects by Mindoro Kabuhayan Foundation, Inc. (MKFI) in Calapan, Oriental Mindoro" also strengthens the findings of the present research study. As to micro lending, benefits derived by the beneficiaries was described to a very high extent evidenced by the tabulated overall mean score of 4.54. In subordination to this, Ang's evaluation conducted in 1991 revealed that Tambuyog was credited for the very satisfying performance of this NGO leading to the positive outlook of fisherfolk on the services it offered such as education, social awareness, program and the likes.


828

Satisfaction of MKFI's beneficiaries on the micro-lending program it offered and the various programs delivered by Tambuyog to fisherfolk beneficiaries to which the same are satisfied sustain the current findings. Finally, the two current studies one by Peet (1998) and the other by Pomerada (1990) strengthen the findings of the present research work. Peet found out that involvement of government, non-government agencies and the people in policy development could greatly contribute to the achievement of sustainable development agenda. It was suggested by the study that government around the world should make changes in institutional and economic structures. Experts should make themselves as resource persons who contribute to but not control the process. Pomerada (1990), in his study entitled "Institutional Challenges in the Development of Sustainable Agriculture" found that sustainable agricultural development requires a fundamental change in attitudes of people and institutions to better value the future and thus make commitment with future generations. Achieving sustainability requires efforts that are multi-disciplinary, multi-participatory, multi-sectoral and multi-national. Both studies have findings that closely link to expansion/diversification and affiliation.


829

Table 5

Summary Results of the Computed Mean Scores of Respondents’ Perception on the Economic Success of Multi-Purpose Cooperatives in the First District

of Oriental Mindoro

Items Overall Mean Description 1. self-sufficiency 2. increase in income 3. increase in opportunities

4. livelihood program

3.55

3.74

3.93

3.85

High Extent

High Extent

High Extent

High Extent


Table 5 presents the summary results of the computed mean scores of respondents’ perceptions on the economic success of multi-purpose cooperatives in the First District of Oriental Mindoro.

Gleaning to the results, the multi-purpose cooperatives are

successful to a high extent as indicated by the grand mean score of 3.77. This could be justified by the current status of these cooperatives

where they are formidably on top of their economic activities. These cooperatives have been so far very stable in many years leading their members to concentrate now on the economic side of development because all members have generally gained substantial improvement in their living. Parallel and supportive to the present findings is the independent study conducted by Redublo (1991). Redublo (1991) credited Tambuyog for the socio-economic development experienced by its fisher folk beneficiaries in Calapan City. Tambuyog made this possible because of proper organization and unity between the project proponent and beneficiaries.


830

These findings strengthen the current research study.

Table 6

Summary Results of the Computed Mean Scores of Respondents’ Perception on the Social Success

of Multi-Purpose Cooperatives in the First District of Oriental Mindoro

Items Overall Mean Description

1. community bonding/ cooperativism 2. organizational leadership

3.74

3.85

High Extent

High Extent


Table 6 presents the summary results of the computed mean scores of respondents’ perceptions on the social success of multi-purpose cooperatives in the First District of Oriental Mindoro. The table’s overall mean score of 3.80 indicated that the respondents have desirable community bonding/ cooperativism and organizational leadership. These lead to social success.

This points out that these cooperatives simultaneously concentrates

on social development of members considering that it is just new in the world of cooperative. This could be fully explained by their ultimate desire to achieve organizational stability. Critically, the group needs nonetheless but the support from its BOD and OG members including the members themselves.

Ang's (1995) study revealed that beneficiaries of MKFI in Naujan had gained a significant amount of social development. MKFI services have been so instrumental in improving the quality of life of the benefited sectors.


831

The foregoing findings by Ang sustain and support the findings of the current research on social development as contributions of the multi-purpose cooperatives to their respective members. The relevant findings bind the aforementioned research studies because they have focus and concerns on the area of social development. Summary of Findings 1. Factors Affecting the Performance of the Multi-Purpose Cooperatives in the First District of Oriental Mindoro

a. Majority of the multi-purpose cooperatives in the First District of

Oriental Mindoro are operating for 14 years, with 702 members and Php 6 million capitalization.

b. Members of the Board of Directors (BOD) are committed in performing their task to a high extent just like their members and operations group.

c. The multi-purpose cooperatives have been offering providential, consumer, credit and marketing services to a high extent to their members.

d. The multi-purpose cooperatives are performing quite well in their financial aspects of operations in terms of liquidity, profitability and stability to a high extent.

e. The multi-purpose cooperatives prioritize expansion/

diversification and members’ financing support to a high extent. With regard to affiliation, they expand through it to a moderate extent.

2. Success of Multi-Purpose Cooperatives a. Based on the ordered mean score, the multi-purpose cooperatives

contributed to its members' self-sufficiency, increase in income and opportunities and livelihood program to a high extent.

b. Values of cooperativism, bonding and traits for effective

organizational leadership have been contributed by multi-purpose cooperatives to their members to a high extent.


832

Conclusions 1. The multi-purpose cooperatives had long been advancing cooperative movement from which membership and capitalization rise. Officials and members of the multi-purpose cooperatives were unqualifiedly committed to perform their functions well relative to financial operations, expansion/diversification program and members’ financing support but not so much in affiliation. They also made providential, consumer, credit and marketing of all members to which they are satisfied. 2. Members' economic well-being was fully enhanced by the multi-purpose cooperatives because a great number of members attested to their contribution achieving access to increase income, increase in opportunities and livelihood program for self-sufficiency. The multi-purpose cooperatives were also merited positively developing in their members the value of cooperativism, mutuality and concern over others which also helped hone leadership potentials.

Recommendations 1. Special seminars about cooperative management should be provided for the board of directors, operations group and members of multi-purpose cooperatives by the Cooperative Development Authority (CDA). This also includes discussions about adequate character and moral responsibility of management and basic principles and practices of cooperatives. It is intended to provide them with the necessary facts and information about assessment of felt need of the community, continuous expansion, suitable cooperative and financial structure, competent management and dynamic leadership. 2. The suggestions to improve the operation of multi-purpose cooperatives should be taken into consideration so that this can be properly used in accordance with the needs of the members. The cooperative planners therefore, should prioritize the activities according to the identified needs. 3. Bold efforts to expand and strengthen multi-purpose cooperatives’ tough affiliation with confederation of local, regional and national based cooperatives should be seriously worked out through identifying potential supporters and constantly link the group with target support groups.


833

4. An independent, periodic evaluation on the efficiency of services delivered to the members should be undertaken to guide board of directors and operation groups on the prioritization of programs and activities. 5. A much maintained linkage and coordination of the multi-purpose cooperatives with private and government intermediaries like Land Bank of the Philippines (LBP), NGO's and PO's should be done through constantly making these groups as partners in undertaking development. 6. The multi-purpose cooperatives should prepare a comprehensive program and social preparation activities geared towards development of the beneficiaries’ social, economic, cultural and political domains. 7. Further research on growth in membership, assets, savings deposits and loan repayments and members’ participation in formulation, implementation and evaluation of multi-purpose cooperatives’ activities should be conducted for more comprehensive results of the study.


834

BIBLIOGRAPHY

BOOKS _________ Environment and Development: A Asia Pacific Island

Perspective. Asian Development Bank, 1992. Fajardo, Feleciano and Fabian P. Abella. Cooperatives. Manila,

Philippines: Rex Publication Co., 1996. Maurice, S., Charles, Philipps, Owen, R., Ferguson C.E. Economic

Analysis: Theory and Application. Homewood, Illinois. U.S.A.: Richard D. Irwin, Inc., 1992.

Mejorada, Nenita D. Introduction to Management Accounting. First

Edition. Quezon City: Goodwill Trading Co., 1993. Moore, Carl L. and Robert K. Jaedicke, Managerial Accounting.

Cincinnati, Ohio, U.S.A.: Southwestern Publishing Co., 1990. __________ The New Lexicon Webster Encyclopedia Dictionary of the

English Language. U.S.A.: Lexicon Publication. Inc., 1990. Passion, D.S. Introductory Accounting. Quezon City, Philippines: Phoenix

Publishing Home, Inc., 1990. Ronquillo, Adelaida. In Current Issues (Cooperative Movement). Quezon

City, Philippines: Katha Publication, Inc., 1990. Sanchez, Custodiosa A. Methods and Technique of Research. Manila:

National Bookstore, 1998. Todaro, Michael P. Economic Development. 6th Edition. London and New

York: Wesley Longman Limited, 1997. Von Bertalanffy, Ludwig. Organizational Development Behavior Science

for Organizational Improvement. Wendel L. French and Cecile H. Bril (eds) Prentice Hall, Inc., 1995.


835

DOCUMENTS

The 1987 Philippine Constitution and Government - Section 15, Article XII.

Aquino, Agapito. "Primer on the Cooperative Code of the Philippines (R.A.

No. 6938)." Quezon City, Philippines: Central Handbook Publication Co., 1991.

Durkheim, M. "Council for People's Development Agenda." Quezon City,

Philippines, 1990. Myrdal_______ ibid, 1990. _________ "A Primer on Philippine Agenda 21 Philippine Council for

Sustainable Development." Pasig, Metro Manila, March, 1992. _________ "United Nations Conference on Environment and Development

(UNCED) Agenda 21." Rio de Janeiro, June, 1992.

OTHERS Aquino, Agapito. "Cooperativism: A Great Idea Whose Time Has Come."

Life Today. San Juan, Metro Manila: Corporacion de Padres Dominicos. Vol. 48 No. 7 (July, 1992), pp. 16-17.

De Pano, Evelyn. "Cooperative - The Answer to Unemployment and

Underemployment." Life Today. San Juan, Metro Manila: Corporacion de Padres Dominicos. Vol. 48 No. 7 (July, 1992), pp. 18-23.

Gamola, Nora. "Cooperativism: Reinforcing Filipino Values and

Lifestyles." The Filipino Entrepreneur. Sta. Mesa, Metro Manila: Asian Institute of Journalism. Vol. No. 6 (March, 1990), pp. 9-10.

Edejer, Jess. "Cooperatives Excellence in the Age of Mediocrity." Business

Ventures. Vol. No.2 (April, 1993), pp. 43-45.


836

Paderanga, Cayetano. "Rural Development and Cooperatives." Life Today. San Juan, Metro Manila: Corporacion de Padres Dominicos. Vol. 48 No. 7 (July, 1992), pp. 24-25.

Rosario-Braid, Florangel. "Cooperative for Peace." The Filipino

Entrepreneur. Sta. Mesa, Metro Manila: Asian Institute of Journalism. Vol. No. 6 (March, 1990), p. 4.

Rotor, Abercio V. "A Glimpse at Some Cooperative Models." Life Today.

San Juan, Metro Manila: Corporacion de Padres Dominicos. Vol. 48 No. 7 (July, 1992).

__________ "Towards a New Social Economy." Life Today. San Juan,

Metro Manila: Corporacion de Padres Dominicos. Vol. 48 No. 7 (July, 1992), p. 15.

__________ Philippine Daily Inquirer July 21, 1991.

RESEARCH WORKS

Ang, Nilo A. “An Evaluation of Projects Implemented by Mindoro Kabuhayan Foundation, Inc. (MKFI) in Naujan, Oriental Mindoro.” Masteral Thesis, Divine Word College of Calapan. 1994.

Ang, Nilo. “The Effects of NGO in Terms of Organizational Materials in

Selected Barangays in Or. Mindoro.” Masteral Thesis, Divine Word College of Calapan. 1994.

Dolor, Estrellita A. “Social Reform Agenda 1997 Poverty Alleviation

Fund.” DECS Calapan City: DWCC Research Journal, 1998. Franks, Tom. “Three Dimension of the Management of Sustainable

Development.” AIM: New Series Discussion Paper, No. 66 February, 1996.

Gangoso, Marivic A. “Performance Evaluation of A Cooperative Credit

Union: The Case Study of the University of San Agustin Faculty Association Kilusang Bayan for Credit, Inc..” Views, 11:1 January, 1995 pp. 89-101.


837

Kikuchi, Masao. “Sustainable Agriculture in Asian Developing Countries: An Economist's Perspective.” Chiba University, Japan, 1994.

Paas, Ofelia and Narca Marjorie. “A Case Study of Selected Multi-Purpose

Cooperatives in Bohol: Their Implications to the Development and Expansion of the Cooperative Movement in the Province.” Tagbilaran City - DWCTU Graduate School Faculty Journal January, 1993 pp. 86-95.

Peet, N.J. “With People's Wisdom Community Based Perspectives on

Sustainable Development.” Christchurch, New Zealand: University of Caterbury, 1990.

Pomerada, Carlos F. “Institutional Challenges in the Achievement of

Sustainable Agriculture.” Costa Rica:Inter American Institute for Cooperation on Agriculture, 1990.