Based on a cooperative world, the idea that underlies the birth of the cooperative principles include solidarity, democracy, independence, the attitude of the interests of someone other than self-interest (alturisme), justice, state of the economy, and increase the common welfare. Cooperative principle itself is guiding lines or guides used by the cooperative to implement the values of cooperative work in practice.
He is also the basis for cooperative work in conducting its business activities and organizations which constitute the hallmark and identity of cooperatives that distinguish it from non-cooperation companies.
Cooperative principle first became known and was pioneered by the Rochdale Cooperative in 1844. It contains a formula agreed upon by all members on ways to work for a consumer cooperative, is as follows.
- Sell pure goods, must be original, and using the correct scales
- Sell for cash
- Sell according to market prices
- A member entitled to one vote
- Not discriminate against members of political and religious
- Surveillance conducted in a democratic
- Membership is open
- Limited interest on capital
- Distribution of net income comparable to the services and purchase of each member
- Providing training to members with the principles of
ICA as a cooperative world's top organizations have also formulated the general principles of cooperatives are expected to be implemented by co-operatives worldwide. To that end, ICA has established a special commission to review the cooperative principles that have been pioneered by the pioneers of the cooperative.
Not only once finished, the formulation of the principle of cooperation made by the ICA as well as through reforms in the congresses are held on cooperatives. Finally, the ICA made improvements through the ICA Congress 1995 in Manchester, England in 1995. ICA succeeded in formulating a statement of cooperative identity (ICA Cooperative Identity Statement / ICIS), the grains are as follows.
- Membership is voluntary and open
- Control by members of the democratic, one person, one vote
- Economic participation of cooperative members
- Autonomy and freedom
- Education, training, and information
- Close cooperation among cooperatives, both at the regional, national, and international
- Concern for community
In Indonesia alone has created a Law About the Cooperative Principle. Cooperative principle in accordance with Law No.25 of 1992, as follows.
- Membership is voluntary and open
- Management carried out democracy
- Distributions of Business (SHU) is done fairly proportional to the magnitude of the business services of each member
- Provision of fringe benefits are limited to capital
- autonomy
- cooperative education
- Cooperation antarkoperasi
Cooperatives are business entities whose members consist of individuals or legal entities. Speaking of cooperation, we will definitely be reminded of populist economic principles based on a sense of kinship. Economic system based on kinship will facilitate its members, because of the populist economic system has no provisions that are too binding.
Cooperatives also work under the cooperative laws in force. Cooperatives have a special statute that has a measurable way of working. The law on cooperatives listed in Article 4 of 25 in 1992.
The Act describes the functions and role of cooperatives in the community. In the legislation explained that the cooperative was formed to help the economy of the people. Points contained in article 4 the average tone of the same, namely, to fight for the fate of the people's economy. Cooperative with all the good economic system, trying to build a strong state economy, the economy starts from people who have already been strong.
The next article, Article 5, No.25 of 1992 set up cooperatives in Indonesia. The article was more set on the principles of cooperative work. The principle of cooperative work listed in this article are also popular.
In the article explained that the management rights granted fully cooperative to the people, and of course carried out by democratic means. Membership of a cooperative is voluntary and open, in other words, allows its members to resign from the stewardship of the cooperative at any time, without any penalty. The results of the cooperative effort was distributed equitably based on the capital and the services of their respective managers.
Based on sector-owned businesses, there are several types of cooperatives, such as savings and loan cooperatives, consumer cooperatives, producer cooperatives, marketing cooperatives, to cooperatives engaged in the service sector.
Cooperatives that serve the borrowing and lending activities of its members, is managed by Credit Unions. For cooperatives that sell consumer goods for its members, called the Consumer Cooperative.
The Producers Cooperative moves in the procurement of raw materials are designated as capital of their members. There are also types of Cooperatives and Marketing Services. Marketing cooperatives engaged in marketing of members' work, while the Cooperative Services, engaged in the services sector.
Capital that can drive the economy of cooperatives obtained from deposits of its members. These deposits are subject, obligatory, and specific.
Principal savings, usually paid at the time of registering as a member of the cooperative. Unlike the obligatory savings. Deposits of this type are paid on a specific deadline and usually repetitive. There are also special types of deposits are voluntary.
In addition to its capital reserve, the cooperative also has other capital that can be used, among them the reserve fund and grants. For this type of deposit, capital allowance from the rest of the operating results or the results of grants and donations from other parties outside the membership of the cooperative itself.
Cooperatives are enterprises established by many as a container joint venture. For that reason, the cooperative must be open and berazaskan family values. Thus, openness is a must in the cooperative. To create an openness that, it is necessary to report the names of cooperatives, namely the report of the results of operations are calculated periodically, either monthly or yearly.
The report itself includes financial cooperatives and condition of the goods, in the form of balance sheet, and out of cash, the calculation results of operations, each member reports, financial statements and notes. That's the elements that must be set out in the report of cooperative periodical.
Operating Results
The calculation result is a cooperative effort of the most important thing in the report of the cooperative. Calculation results of this business need to advance the amount of income to members, counting the amount of profit (income) and losses, whether from members of the cooperative on or derived from non-members. Calculation results of this effort to inform about the revenues and expenses during the period or business periodically.
In this calculation will be obtained so-called windfall profits. Of net income is obtained from the results of operations and cost-benefit members of the dirty business with non-members. The term calculation results of operations are not only measured from the rest of the results of operations or earnings, but more determined than the benefits to each member.
Statements of Cash Flows
In addition to the calculation results of cooperative efforts in the report is also no such thing as cash flow statements, ie information about the condition of cash is calculated based on the beginning balance, income sources, expenditures, and so forth, and then dihitunglah ending balance of cash in the given period.
When reporting the cooperative itself is determined according to the agreement of members, can be once a month or biweekly, but that is conducive bi-monthly or quarterly.
Other things in the Report of Cooperative
In addition to matters concerning finance the above, in the report of this cooperative, each member should bring the benefits and disadvantages of the cooperative during that period, whether during the period they feel disadvantaged or even otherwise, how well the service cooperatives, is there an increase or even setbacks.
Each member should also bring economic benefits of purchasing goods or services together in a cooperative procurement, the benefits gained from the savings and loans, and development of their respective businesses.
The report is very useful as a member of the performance benchmarks of cooperatives at the time, and also to monitor the progress of each member, whether their business smoothly or otherwise. Those are some things that must be set out in the report of the cooperative.
Differences cooperative management with general management lies in the elements of cooperative management, namely the meeting of members, administrators, and supervisors. The parts of the cooperatives have their respective duties. For example, the Meeting of Members on duty to set a basic budget, make public policy, appoint and dismiss managers and supervisors. Charge of leading the cooperative management of cooperatives and cooperative efforts, while the supervisor in charge of overseeing the cooperative.
If the cooperative has a lot of business units and spacious, the board is allowed or possible to appoint managers and employees. Managers or employees who do not have to be appointed or recruited members of the cooperative. Better, managers and employees is taken from outside the cooperative in order to control more easily. Managers and employees work as assigned by the board so that they are responsible to the board.
Here are some of the patterns of cooperative management that will help cooperatives in achieving its goals.
Plan
Planning is a basic process management. In planning, managers decided things should be done should be done. Every organization requires planning, both small and large organizations. Only the necessary adjustments in its implementation given the shape, purpose, and extent of the organization concerned.
Good planning is the planning is flexible because the plans will be different in situations and conditions that vary over time will come. If needed, in planning the implementation of a plan are held back so the sooner the ideals or goals of the organization to achieve.
Organizing
Organizing is a process to design a formal structure, classify, and manage and share tasks or jobs among members of the organization. This was done so that organizational goals can be achieved efficiently. Implementation of the organization will reflect the organizational structure that includes several important aspects, such as division of labor, departementasi, organization charts, chain of command and unity of command, levels of management hierarchy and communication channels.
Organizational structure
As manager of the cooperative, the board faced various forms of problems to be solved. The most difficult problems arising from within itself, namely in the form of limitations. Lack of knowledge most often occurs because of an administrator appointed by and from members. Therefore, it is not necessarily an administrator is a professional in the field of enterprise.
With limited skills and education levels, administrators need to recruit employees who are assigned to assist administrators in managing and taking care cooperatives to cooperative work can be completed properly. Given the various parties who helped administrators manage the cooperative effort, the more complex the structure of the cooperative organization. Selection of cooperative organization structure must be adapted to the shape of business, business volume, as well as broad market of products produced. In principle, all forms of organizations have strengths and weaknesses.
Direction
Direction is the most important management functions for each person who works in an organization have different interests. In order for the different interests do not clash, leaders must be able to steer the company to achieve corporate objectives.
supervision
Supervision is a systematic attempt to make all the company's activities in accordance with the plan. Process monitoring can be done through several stages, ie setting standards, comparing the activities carried out with a predetermined standard, measure the deviations that occur, and then take action if necessary evaluations. Each company's control, with the aim that the implementation of activities in accordance with a predetermined plan.
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