Leadership Development

in Cooperatives

PARAMJIT SHARMA
 Major Issues

1. Leadership - definition
2. Attributes of Leadership
3. Cooperative Leadership
4. Professionalisation
5. Role of Board & Executives
6. Role Conflicts & Remedies

PARAMJIT SHARMA
Leadership-definition 1

•Setting Values & Objectives

•Leading People with them
•Ability to acquire & Organize Resources
•Getting Feedback
•Giving Support & Trust
•Determination To achieve Objectives
•Taking Responsibilities for critical Decisions
•Standing Up for Others
•Resolving Conflicts
•and…….
PARAMJIT SHARMA
 2

ATTRIBUTES OF LEADERSHIP

PARAMJIT SHARMA
 -
ATTRIBUTES OF LEADERSHIP 2

TRUST Communication

Transformational MOTIVATION
styles
VISION

TEAMWORK EMPOWERMENT

PARAMJIT SHARMA
TRUST
- 2

If you trust people to do their best ,

they wont Disappoint you

PARAMJIT SHARMA
 - 2
COMMUNICATION

If you communicate openly & honestly

You will promote healthy relationship
& excel at problem solving

PARAMJIT SHARMA
 -
MOTIVATION 2

If you help others find more meaning

In work than making money,
They will do more than put in time

PARAMJIT SHARMA
 EMPOWERMENT
- 2

If you share power with others,

they will use it to renew themselves
and the organisation

PARAMJIT SHARMA
TEAMWORK
- 2

If you work as a team to get the job done

You will do better than anyone
can do alone

PARAMJIT SHARMA
 LEADERSHIP
- STYLES 2

If your leadership style shows that

purpose and people are equally important,
you can transform your organisation and
thrive in a changing environment

PARAMJIT SHARMA
Leadership-Field Marshal Manekshaw 2

Professional knowledge & competence

Ability to take Decisions

Absolute Justice & Impartiality

Moral & Physical Courage

Human Touch

PARAMJIT SHARMA
 COOPERATIVE LEADERSHIP
3

•Coop Produced Leaders like, Vaikunthbhai,

Dr.Gadgil, Tribhuvanbhai
•Professionals have knowledge-leaders
have wisdom
•Success lies in combination of Both
•Successful coops have Professional
Leadership
•Political Base
•Democratic vs Imposed Leaders
•Weak Grassroots' Leaders
Need Leaders for future

PARAMJIT SHARMA
Professionalism
4
Professional in Board

Professional CEO

Understanding Operation
and Markets

Growth Perspective

PARAMJIT SHARMA
Need for professionalisation
in Cooperatives 4

•VISSION
-
At •MISSION
Organizational •GOALS
Level
•OBJECTIVES
•CULTURE

PARAMJIT SHARMA
AT MANAGEMENT LEVEL
4

•Corporate Governance
•Strengthening Human Resource
•Top Level-motivated & Committed
•Board-Trustworthy & dedicated
•Harmony at all levels
•Technological Applications

PARAMJIT SHARMA
4 At Operational Level
4Diversification

2Managing Cost

•Manpower Downsizing
•Enhancing Productivity
•Financial discipline
1 FINANCIAL 3Management of Risk

Understanding Investment
Financial Recovery
Statements
PARAMJIT SHARMA
 5

ROLE OF BOARD & EXECUTIVES

PARAMJIT SHARMA
Boards of Directors: Duties and Functions
5

1. Select, evaluate, replace senior

management.
2. Oversee: Strategies, management
of cooperative resources.
3. Review, approve major plans and
actions.
4. Other functions prescribed by law.

Bhagwati Prasad
BOARD CONTROLS in 5
 Laying down Code of Conduct

Overseeing Disclosures

Evaluating Performance of mgt

Ensuring Appropriate fin. Systems

Checking Conflicts

PARAMJIT SHARMA
Board Directs 5
Formulate &review policies/strategies
Major plans of action
Risk policy
Annual budgets & Business plans
Setting performance objectives
Monitoring performance
Overseeing major Capital Exp.
Acquisitions & Disinvestments
Compliance with applicable laws

PARAMJIT SHARMA
CORE COMPETENCIES OF BOARD 5
•Recognizing BOD’S tasks
•Integrity
•Sense of Accountability
•Track record of Achievements
•Leadership Qualities
•Ability to think Strategically
•Show Commitment to Cooperative
•Devote time for attending meetings,
• Preparation &Participation

PARAMJIT SHARMA
Executive Management-functions
5

•Assisting BOD in decisions

•Implementing policies
•Maximizing Share holders Interest
•Providing timely, accurate, Substantive
&material inf. to Board, Committees & S Holders
•Compliance of Regulation. & laws
•Protect Share Holders rights & interests
•Setting & implementing
Effective IC system

PARAMJIT SHARMA
Contd…
 5
Executive
Management- functions

•Implementing & complying

With code of ethics by Board

•Cooperating & facilitating

Efficient working of Board

•Disclosure of transactions

*personal interest
*conflict of interest

PARAMJIT SHARMA
 6

Role Conflict Between

Board & Executives

PARAMJIT SHARMA
Role Conflicts-Board & Executives
6

•Governance Models
•Nomination To Board
•Bureaucratic/Deputationist
CEO
•Vested Interests
•Role Ambiguity
•Interference
•Appointments
PARAMJIT SHARMA
Governance Model - 1
6

ELECT
MGT
Elected
Management

EXECT
MGT Exect. Mgt

PARAMJIT SHARMA
Governance Models - 2 6

Elected Executive

Elected Executive

PARAMJIT SHARMA
Role Conflicts – 6
suggestive remedies
•Consensus-zone of agreement
•Objectivity in decisions
•Role clarity
•Performance Evaluation
•Transparency
•Continuous Flow of Information
•Training to All
•Model code of conduct
•Institutional Interest
•Financial Discipline
PARAMJIT SHARMA
Ethics & Values

PARAMJIT SHARMA
16 Basic Values

1. Controlled Greed
2. Pursuit of pleasure
3. Efficiency & Work Ethics
4. Truthfulness
5. Transparency & Honesty
6. Compassion & Charity
7. Piety
8. Sacrifice
9. Stoic dignity
10.Pride, Anger, Envy & Violence
11.Camaraderie & Fraternity
12.Trust & Cooperation
13.Tolerance Pluralism
14.Gratitude& Respectfulness
15.Harmony with Society, Self &SHARMA
PARAMJIT Nature
16.Evolutionary Destiny & Cooperation
COOPERATIVE DILEMMA

GOVT. SUPPORT COOPERATIVES

MARKET FORCES

QUALITY

LOANS TIME
CREDIBILITY
COM,TETION
MANAGERIAL
CAPITAL INNOVATION
FINANCIAL
CHANGES
UNPROF’LISM
GRANTS PROF’LISM
POLITICS
POLICIES LESISLATION
FINANCE
SUBSIDIES CONF’TIONS
VIABILITY
I’FERENCE

PARAMJIT SHARMA
 Thanks

PARAMJIT SHARMA